Development finance institution ALTUM will start accepting applications for the next, 6th round of project selection in the European Union Recovery Fund program for energy efficiency, introduction of renewable energy technologies and purchase of electric cars on May 7 of this year.
The program has been significantly expanded this year, stipulating that support can also be received by wholesale and retail merchants, as well as that electric cars can be purchased by companies of all sectors corresponding to the program. Submission of applications in the open round will last until June 4.
The program provides support in the form of a loan with a capital discount and is available to micro, small, medium and large entrepreneurs whose activity sector is not primary production of agricultural products, fishing, tobacco production, gambling or transport.
Līga Mellēna, Head of ALTUM Enterprises’ Energy Efficiency Department: “More than 150 applications were submitted in the 4th and 5th round of energy efficiency of companies, which was facilitated by the lifting of industry restrictions. About a third of the applications represent industries that previously could not qualify for the program, mainly wholesale and retail companies. One of the local capital’s retail chains plans to install solar panels for 17 stores in the regions with support. We are happy about the stable demand in the energy efficiency section – entrepreneurs use the opportunities to insulate buildings, replace equipment with more energy efficient ones, and also install solutions directly to increase energy efficiency. Funding in the program is still available, so I invite companies to be active, consult with ALTUM experts and use the opportunity to invest in energy-efficient solutions that allow you to save.”
The total available financing for the 6th round projects is 22 million euros, of which 5.38 million euros are intended for increasing energy efficiency, 15 million euros for renewable energy technologies, and 1.66 million euros for zero-emission vehicles.
We remind you that you can participate in the program several times, until the entire limit available for one group of related companies, which is 1.5 million euros, is used up. Companies can carry out work gradually, starting with the installation of solar panels, continuing with increasing the energy efficiency of buildings, as well as purchasing an electric car at the same time.
The amendments approved by the Cabinet of Ministers on February 20 foresee a series of improvements in the range of supported activities. Including, by carrying out energy efficiency measures, companies can also invest in green roofs, digitalization of building equipment, charging infrastructure, equipment, as well as equipment for accumulating energy produced in equipment. On the other hand, the activities supported for the introduction of renewable energy resources (RE) technologies in companies have been expanded with renewable hydrogen producing technologies, biofuel, biological liquid fuel, biomethane and biomass fuel/fuel producing technologies, high efficiency cogeneration technologies, as well as with produced energy accumulation or storage facilities for self-consumption.
We would like to remind you that this year the approach to opening the subsequent rounds of the program has been changed – the project submission stage of the round will last four weeks, and the next round opens a week after the previous round has closed. The results of the rounds are announced within a month after the closing of the current round. The amount of funding available for the next rounds will depend on the amount of funding reserved in the 6th round.
In the evaluation of the projects, as before, the projects submitted by the companies will be compared with each other in the selection, with the highest number of points awarded to those that will ensure the greatest reduction of greenhouse gas emissions or primary energy savings, calculated for every 1000 euros of support. Projects that will be able to apply for a loan with a capital discount will be announced within a month of the close of each round.
Support for increasing energy efficiency and wider use of renewable energy technologies is available to companies as an ALTUM loan or a parallel loan with a capital discount for repayment of the principal amount. The maximum loan amount is five million euros with a loan term of up to 15 years. The support is granted as a capital discount, which means that ALTUM will reduce the principal amount of the loan after the completion of the project and the achievement of the project objectives. A capital discount can be requested in the amount of up to 30% of the project costs, but not more than 1.5 million euros for a group of related companies in total.
More information about the program is available here: Energy efficiency loan with capital discount and electric car purchase guarantee with capital discount.
About ALTUM:
The development financial institution ALTUM is a capital company owned by the Latvian state, which with the help of state support financial instruments provides support to certain target groups in the form of financial instruments (loans, guarantees, investments in risk capital funds, etc.), supplementing it with non-financial support (consulting, mentoring) within the framework of specific programs ), as well as implementing other functions delegated by the state. In June 2017, ALTUM received the long-term credit rating of the international credit rating company Moody’s Baa1 for a state capital company, which confirms ALTUM’s stable financial situation. On the other hand, on October 24, 2017, ALTUM bonds were included in the regulated market – the Nasdaq Riga Baltic Debt securities list. ALTUM received the Nasdaq Baltic Awards 2019 award in the nomination “Stock exchange event of the year in Latvia”.
Additional information:
Sandra Eglite
Head of public relations at ALTUM
T: 26577810
Tags: ALTUM start accepting applications implementation energy efficiency measures entrepreneurs
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