In January, Latvia experienced the coldest temperatures in recent years, prompting residents who rely on wood pellets for home heating to consume more fuel than normal. Amidst this harsh winter, social media and news outlets reported shortages of pellets, leading to panic buying as people feared they would be completely unavailable. This unexpected surge in demand caught both retailers and producers off guard, leaving them unable to meet the rising needs of consumers.

Wood pellets are among the most popular fuels used for heating in Latvia, integral not only for individual homes but also for centralized heating systems, with one in five of the 645 boiler houses relying on them. Although the demand for pellets has remained stable around 190,000 tons per year since 2020, production has declined recently. This combination of constant demand and reduced supply has sparked a significant market crisis, exacerbated by the winter conditions.

Didzis Palejs, the chairman of the Latvian Biomass Association, indicated that the production volumes have not been sufficient to keep pace with the increased demand. The situation highlights the vulnerabilities in Latvia's energy supply chain, particularly related to biomass sources, and raises concerns about future availability as the country continues to navigate both climate conditions and the growing reliance on renewable energy sources for heating.