Introduction The household in Latvia is the most energy capacious sector – 40 % of the final total energy consumption has been consumed by household in 2008. According to that the energy demands in household as well as energy conservation potential are very important parts of the management and development of energy sector. The paper presents the latest development in Building sector and in Energy Efficiency in Building sector involved Legislative aspects, Framework changes, which influence building renovation process in Latvia. Methods Refurbishment projects focused on the large stock of apartment buildings built before 1990. The standardized buildings comprise 65% of the building stock. District heating is widespread in Latvia. For the whole building sector estimated saving potential of 30-50% resulting in 15 PJ. For the public buildings estimated saving potential 20-60% resulting in 2.052 PJ. Refurbishment projects Latvia suggests a rehabilitation strategy in 3 groups with first groups of more simple and inexpensive measures and the last group for major rehabilitations. Group 1: Water receiving devices adjustments and heat meters installation. Windows and doors packing/renovation, loggias glazing, change heat substations. (20-30% savings/4.5 years pay back). Group 2: Insulation external walls and balks covering, ventilation in bathrooms and kitchens. (15% savings additionally). Group 3: Windows/doors replacement, individual heat meters, and thermo controller valves, insulation of cellars coverings, side walls, and gable roofs. (Savings 50-60% with group 1-3. medium/long pay back). The paper also describes different financing schemes for the Building Refurbishment Projects, regulatory frameworks of this kind of Projects, Projects evaluation by the performance indicators (Investments volume, Energy savings, CO2 Reductions etc.) Conclusions The paper presents potential for energy saving in building sector in Latvia and the results from the realized projects of building refurbishment when building envelope element U-values have been reduced significantly by external insulation measures, and internal heating system have been rebuild. The project’s results illustrate optimal energy saving measures for different types of buildings.