Three major Latvian wood pellet producers have signed a memorandum pledging to prioritise local market supply following summer shortages and sharp price increases.
SIA Palleteries (trading as Top Granulas), SIA Latgranula and SIA Baltic Wood Trade have committed to ensuring adequate fuel availability for the domestic market, establishing transparent pricing, and supporting Latvia's energy security, according to the ministry of climate and energy statement on August 6.
Minister for climate and energy Jānis Vitenbergs, who initiated the memorandum, called on other producers sharing the initiative's objectives to join.
'Latvia produces enough pellets, so we must first ensure the Latvian market is supplied and ensure that pellets are available to our households. These are the first producers to demonstrate their commitment to the local market and Latvia's energy security,' he said.
Latvia ranks among the European Union's largest wood pellet producers. Approximately 40,000 households - around 5 per cent of the population - use wood pellets for heating, consuming roughly 200,000 tonnes annually.
Recent supply pressures stem from geopolitical disruption, changing supply patterns and elevated European demand. Pellet prices have risen sharply in recent years, periodically restricting household access to the fuel.
The memorandum represents an attempt to restore market stability through voluntary producer commitment rather than regulatory intervention.
Latvian pellet producers pledge domestic supply priority
