Waste to energy (WTE) sector includes collecting and pre-treatment of various types of organic and recyclable waste that is used as feedstock for conversion technologies generating valuable outputs (i.e. power, heat, biomethane, syngas etc.). Consequentially, the WTE value chain includes stakeholders from waste management and energy production markets. The development of Latvian WTE is governed by advancements and availability of technology and innovation, the national legislation and binding regulations, and cooperation between the involved stakeholders. To promote more efficient waste management techniques, increase the use of alternative energy sources and improve cooperation between different target groups within the WTE sector (i.e. policy makers, investors and researchers) the establishment of a WTE cluster in Latvia is proposed. The initial information about the state-of-the-art of the WTE sector in Latvia is vital for development of such cluster. The aim of this paper is to characterize the WTE sector in Latvia and analyse its driving forces (technology push versus demand pull) in order to determine a strategy for WTE cluster development. To reach this objective an analytical framework based on the technology push and demand pull methodological approach is applied. To reach the aim of this study, an inventory of WTE related stakeholders in Latvia is developed and the push and pull factors driving the development of WTE field are defined. Various factors and their interactions are analysed to determine which are the most influential for Latvian WTE sector development, finally we provide our conclusions and discussion.