Since year 2004, when Latvia became a member of European Union, it is under country’s responsibility to implement the EU policy by undertaking the mandatory legislation and directives including the energy and environmental sectors. There are no significant fossil fuel resources available in Latvia. Only different kind of renewable energy sources (RES) and peat are locally available. However, starting from year 2000, the peat extraction and use has rapidly decreased. Considering the existing energy situation, renewable energy sources play an important role in Latvia’s primary energy balance. The main renewable energy sources used in Latvia are biomass (mainly wood fuel) and hydro energy. Wind energy, biogas, and straw are less significant. The potential of those resources is not fully used.