The deadline for taking decisions on granting support under the Recovery Fund’s business energy efficiency programme is being extended, while the maximum loan amount and the capital rebate ceiling are being increased. This will provide entrepreneurs with more favourable support conditions.
Amendments drafted by the Ministry of Economics (MoE) to Cabinet of Ministers Regulation No. 594 of 20 September 2022, which governs the implementation of the business energy efficiency programme, were approved by the government on Tuesday, 25 November.
The amendments provide for extending the deadline for taking decisions on support until 1 June 2026. This will ensure that more than 80 applications currently under evaluation are granted additional time to prepare the necessary documentation. This is particularly important in cases where projects submitted for selection are at a medium level of readiness and require additional time for design, or where an assessment of signs of a company in difficulty must be carried out at the group level. The amendments also increase the maximum loan amount from EUR 5 million to EUR 6.5 million and raise the maximum applicable capital rebate from EUR 1.5 million to EUR 1.95 million.
Regardless of the activities envisaged within a project, a single, longer deadline is established for support recipients to submit reports on project results and apply for the capital rebate. In the case of purchasing zero-emission vehicles, it will be possible to apply for the capital rebate earlier—once the declared mileage has been reached.
“Our goal is to ensure that energy efficiency projects help entrepreneurs become more competitive, operate more efficiently and strengthen their positions in export markets. Longer deadlines, increased support and more flexible conditions give companies broader opportunities to prepare projects and implement them with high quality. These improvements are exactly the step needed to enable more well-considered and sustainable investments. Energy efficiency is not only about reducing costs—it is a key component of the resilience and modernisation of Latvia’s economy,” said Minister of Economics Viktors Valainis.
The total funding allocated to the support programme amounts to EUR 72.17 million, and it is implemented by the financial institution ALTUM in the form of a combined financial instrument—providing a loan or guarantee together with a capital rebate for full or partial reduction of the principal amount. To date, ALTUM has organised 11 project selection rounds, concluding support agreements for the implementation of 497 projects worth EUR 53 million. The final selection round is planned for this year.
Līga Mellēna, Head of Business Energy Efficiency at ALTUM, noted: “In the new round, companies that have already received support in previous rounds may also apply, provided that the total capital rebate for one group of related companies under this programme does not exceed EUR 1.95 million. This is an excellent opportunity to obtain financing quickly, therefore we especially encourage the submission of projects that are already at a high level of readiness.”
On 26 November this year, the Ministry of Economics invites stakeholders to participate in the webinar “Industrial Energy Efficiency and #EUFunds Support”. During the event, the Ministry of Economics and ALTUM will provide information on further opportunities for entrepreneurs to apply for energy efficiency support. Registration for the seminar is available here.