The main goal of the Latvian energy policy is to reduce dependence of energy sector on imported primary energy markets. Latvia’s medium-term energy policy planning documents and legislation consolidate the objective of increasing the share of renewable energy sources (RES) in the consumption of heat supply, electricity and transport fuel, however, Latvia needs to establish unified strategy so that it is possible to fulfill the requirements provided by corresponding Directives of the European Parliament. The challenge of today is to replace fossil fuels in the electricity and heat generation – coal and oil products – by biomass, as a renewable energy source, thus reducing environmental degradation. In Latvia, the specific share of biomass energy in 2010 reached rather a high level (31.7%). However, every year biomass remainders – diversified wood material in the forests, agricultural by-products, food industry by-products, waste, etc. – are unutilized. One of the main goals of the Latvian energy policy at the national level is to achieve the 50% RES share in the gross final energy consumption by the year of 2030 and the main part of those is biomass.