Abstract. Latvia currently is self-sufficient in energy resources up to approximately 35 %. Annual fossil energy prices rise and risks of security of energy supply promote the development legislation in the matter of renewable resources. One of the Latvian Ministry of Economics' recent products is a new draft law called the "Renewable Energy Law", which has been created due to one of the European Union and Latvian national energy policy objectives: to increase the share of renewable energy up to 40 % by 2020 (Moore and Vanags, 2012). Currently, geothermal energy potential is assessed at 1 × 1013 kWh; nevertheless, it is difficult for geothermal energy to compete with other renewable energy resources in the Latvian energy market. A great job has been done in recent years at the legislative branch to choose the right methods for supporting the use of renewable energy resources. This paper aims is analysis of current situation and assessment of Latvian legislation possibilities to promote the use of geothermal energy.