Why has Latvia depended on imported energy supplies?

Latvia’s dependence on imported energy is primarily due to a lack of sufficient domestic fuel resources to meet its total energy demands. While the country possesses mineral resources such as sand, dolomite, limestone, gypsum, clay, and peat, it lacks significant native fossil fuel reserves for large-scale power generation.1

Although Latvia utilizes hydropower plants located on the Western Dvina River, these are insufficient to achieve energy self-sufficiency. Consequently, the nation relies on external suppliers for petroleum products—primarily from Russia and Lithuania—and imports a significant portion of its electric energy from neighbors like Estonia and Lithuania. In response to this vulnerability, Latvia has actively sought to diversify its energy portfolio since the early 21st century to decrease its reliance on foreign imports.12