The information was translated using the ChatGPT service.
From May 19th of this year, businesses can submit applications to the Development Finance Institution ALTUM in the second selection round for the state support program for energy efficiency, the introduction of renewable energy resource technologies, and the purchase of electric vehicles. In this round, state support can also be obtained if the company purchases an N1 class electric vehicle – light commercial transport. Applications can be submitted from 12:00 on May 19th until 11:59 on July 19, 2023.
The projects submitted by the companies will be compared in the selection process, awarding the highest number of points to projects that will ensure the largest reduction in greenhouse gas emissions or primary energy reduction, calculated per every 1,000 support euros. Projects that will be able to apply for a loan with a capital discount will be announced within a month after the submission deadline, while the loan application must be submitted within four months from the notification of the selection result.
Reinis Bērziņš, Chairman of the Board of ALTUM: "This support program offers businesses an attractive financing solution – to write off up to 30% of the project costs, while motivating them to achieve the highest possible energy efficiency. I encourage businesses not to delay investments in improving energy efficiency and promoting energy independence. By reducing energy consumption in company buildings, devices, or production processes, by installing equipment for the production of electricity or heat from renewable resources, you will reduce costs, the company's dependence on energy market price fluctuations, and the company's CO2 footprint.”
Support for businesses will be provided in the form of a loan or parallel loan, and a capital discount of up to 30% of the project costs will be applied. The capital discount can be used to repay the principal loan amount after the project has been implemented and the specified energy efficiency criteria have been achieved. It will be evaluated by ALTUM in cooperation with experts in the field of energy efficiency.
The loan amount can be up to 5 million euros, including a capital discount of up to 30%, which cannot exceed 1.5 million euros. For parallel loans, which ALTUM will provide alongside loans from credit institutions, the minimum loan amount will be 50,000 euros. Support for purchasing electric vehicles will be available to exporting manufacturing companies as a guarantee with a capital discount of up to 5,000 euros for one M1 class vehicle (light passenger car), up to 10,000 euros for one N1 class vehicle (light commercial transport), not exceeding 30% of the car purchase price excluding VAT and the available de minimis limit.
In each selection round, applications will be ranked in descending order of the total points obtained within the available financing framework. Several applications can be submitted in one selection round, including in one support area (for example, energy efficiency) or in several support areas (for example, in energy efficiency and the field of renewable energy resource technologies), noting that applications in each support area must be submitted separately.
Līga Mellēna, Head of the ALTUM Company Energy Efficiency Division: "Having analyzed the experience of the first round projects, a series of recommendations for businesses preparing for the next round have crystallized. Firstly, we recommend immediately applying for realistically achievable project results, as it will no longer be possible to reduce them during project implementation. It's better to choose a more conservative target than one that will not be achievable. If in doubt, consult again with your energy auditor or solar power plant installer. Secondly, make sure that the company's industry and buildings meet the program's conditions. Thirdly, for any unclear issues during project preparation, both by phone and by email, consult with the experts of the ALTUM Company Energy Efficiency Division. And finally - do not delay preparing and submitting the application until the last day. Loans with a capital discount for improving energy efficiency are a new type of state support funding, so I encourage you to take into account the experience gained in the first round.”
Detailed information about the program's conditions, evaluation criteria, and the capital discount receipt process is available on the ALTUM mājas lapā.https://www.altum.lv/pakalpojumi/biznesam/energoefektivitates-aizdevums-ar-kapitala-atlaidi/projektu-atlase/.
To inform businesses and all interested parties about opportunities to obtain support for energy efficiency, the introduction of renewable energy resources, and the purchase of electric vehicles, the Ministry of Economics and ALTUM invites businesses to participate in a webinar on May 23rd of this year. Also, experts will provide information on the procedure for installing solar panels and what to consider when preparing an energy audit assessment. The event's agenda and registration for the webinar are available on the ALTUM website.
In the first round, which took place from November 2002 to January 2023, there was significant interest in the program by businesses – a total of 138 applications were received, of which 118 were invited to compete for the program loan with a capital discount. The loan application evaluation and award process continue, and the implementation of the first supported projects has already begun.
The total funding of the new European Union Recovery Fund program is 76 million euros, of which nearly 26 million euros are allocated for improving energy efficiency, 45 million for the transition to renewable energy resource technologies, and 5 million euros can be used to support the purchase of electric vehicles. The program's total achievable result is a saving of 11,498 tons of CO2 equivalent per year.