Energy efficiency is the rational use of energy resources, which confers economic benefits to the entrepreneur and reduces the negative impact caused to the environment by business operations.
Improving energy efficiency is an essential prerequisite for sustainable economic development. In order to ensure the rational use of energy resources, Directive 2012/27/EU of the European Parliament and of the Council on energy efficiency was adopted, and on 11 December 2018 it was amended and supplemented with new energy efficiency targets for the period from 2021 to 2030. It sets requirements for the implementation of energy efficiency measures in the Member States of the European Union.
In March 2016, the Saeima (Parliament) adopted the Energy Efficiency Law aimed at the rational use and management of energy resources in order to promote sustainable economic development and mitigate climate change. To achieve this goal, a set of measures was introduced by the law setting out measures for state and local government institutions as well as final consumers of energy to improve energy efficiency.
Taking into account the potential for improving the energy efficiency of companies, certain private sector economic operators are also obliged to contribute to the common national energy savings target. In order to promote the involvement of companies, the state has provided additional benefits to companies which care for the efficient use of energy and resources.