The paper analyzes how Latvia can follow the challenge of EU leading Member States and implement a green energy development stra-tegy. Latvia possesses the necessary potential to build sustainable, environmentally and climate-friendly economy. The main attention is paid to past wood fuel use and developing predictions up to 2020. An analysis of historical data shows a reduction of wood fuel share, while energy efficiency improvement is not observed. The potential of ex-panding wood fuel use indicates an opportunity to reach 43% share of the total primary energy by 2020.