This document discusses renewable energy targets in Latvia and alternatives for developing its energy sector. It notes that Latvia's target is for 40% of energy to come from renewable sources by 2020, compared to the EU target of 20%. It then presents two alternative scenarios for meeting this target: 1) investments in natural gas, coal, or nuclear power stations or 2) investments in energy efficiency, biomass cogeneration, wind energy and replacing natural gas with renewables in district heating. It provides some economic calculations comparing the costs of these alternatives.