Translated using ChatGPT service.
On August 15 this year, the development finance institution ALTUM will begin accepting applications for an additional round of the European Union Recovery Fund program for energy efficiency, the implementation of renewable energy technologies, and the purchase of electric vehicles. A total of €17.5 million has been allocated for projects in this additional round, and applications can be submitted until noon on September 15.
The program provides support in the form of a loan with a capital discount of up to 30% of the project costs. This means that ALTUM will reduce the principal of the loan after the project is completed and the project objectives are achieved. The program is available to entrepreneurs across Latvia. ALTUM loans, at least equal to the amount of the capital discount, carry a fixed interest rate of 1.9% per year. If companies achieve the designated CO2 savings target through energy efficiency measures or the implementation of renewable energy technologies, the loan principal can be reduced by up to 30% of the project costs.
Līga Mellēna, Head of ALTUM’s Energy Efficiency Division, states:
“In the previous ten rounds of the Recovery Fund energy efficiency program for companies, over 450 contracts were approved and signed, with a total investment of €95 million. In this new, eleventh round, companies that have already received support in previous rounds can also apply, provided that the total capital discount for a group of related companies under this program does not exceed €1.5 million. For example, if a solar power station for self-consumption was installed in a company with program support before, it can now be supplemented with additional solar panels and electricity storage batteries. Moreover, this is a great opportunity to obtain funding quickly, especially for projects that are already at an advanced stage of readiness.”
Support for improving energy efficiency and expanding the use of renewable energy technologies is available to companies as an ALTUM loan or a parallel loan with a capital discount for principal reduction. The maximum loan amount is €5 million, with a repayment period of up to 15 years. In the case of electric vehicles, the capital discount per vehicle is no more than €5,000–€10,000, and no more than €180,000 for a group of related companies.
The program is intended for micro, small, medium, and large enterprises, except for businesses in the primary production of agricultural products, fisheries, tobacco products manufacturing, gambling, or transport.
As in previous rounds, submitted projects will be evaluated comparatively, with the highest points awarded to those that achieve the largest greenhouse gas emission reductions or primary energy savings per €1,000 of support. Projects eligible for a loan with a capital discount will be announced no later than one month after the round closes. Applicants must submit loan applications to ALTUM immediately—within one month—so that ALTUM can make funding decisions before the end of this year.
Līga Mellēna adds:
“We know that entrepreneurs are already preparing—conducting energy audits, planning, and gathering price quotes—to participate in the new energy efficiency program from the European Regional Development Fund at the end of the year. This additional round of the Recovery Fund is a great opportunity to submit and implement high-readiness projects now, following the familiar application procedure. I remind that under the energy efficiency program, companies can apply for projects involving building insulation or equipment replacement, achieving at least 30% primary energy savings, as well as for renewable energy technologies—installing various technologies for self-consumption.”
More information about the program is available here: ALTUM Energy Efficiency Loan with Capital Discount.
About ALTUM:
ALTUM is a state-owned development finance institution in Latvia that provides support to specific target groups through financial instruments (loans, guarantees, investments in venture capital funds, etc.), complemented by non-financial support (consulting, mentoring) within specific programs, as well as performing other state-delegated functions. In June 2017, ALTUM received a long-term credit rating of Baa1 from the international credit rating agency Moody’s, confirming its stable financial position. On October 24, 2017, ALTUM’s bonds were listed on the regulated market—the Nasdaq Riga Baltic Bond List. ALTUM received the Nasdaq Baltic Awards 2019 in the category “Exchange Event of the Year in Latvia.”
Sagatavoja:
ALTUM sabiedrisko attiecību nodaļa