The 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, renewable energy technology implementation, and electric vehicle purchase on May 7th this year. The program has been significantly expanded this year, stipulating that support can also be received by wholesale and retail traders, and that electric vehicles can be purchased by companies from all sectors eligible for the program. The application submission in the open round will last until June 4th.
The program provides support in the form of loans with a capital discount and is available to micro, small, medium, and large merchants whose industry does not involve the primary production of agricultural products, fisheries, tobacco product manufacturing, gambling, or transportation.
ALTUM's Corporate Energy Efficiency Division Manager Līga Mellēna said: “In the 4th and 5th rounds of corporate energy efficiency, more than 150 applications were submitted, facilitated by the lifting of sector restrictions. Approximately one-third of the applications represent industries that previously could not qualify for the program, mainly wholesale and retail companies. One of the local retail chains plans to install solar panels in 17 stores in the regions with the support. We are pleased with the steady demand in the energy efficiency section – companies are taking the opportunity to insulate buildings, replace equipment with more energy-efficient ones, and also install solutions specifically for enhancing energy efficiency. Funding in the program is still available, so I encourage companies to be active, consult with ALTUM experts and take the opportunity to invest in energy-efficient solutions that allow savings.”
The total available funding for 6th round projects is 22 million euros, of which 5.38 million euros are allocated for energy efficiency enhancement, 15 million euros for renewable energy technologies, and 1.66 million euros for zero-emission vehicles.
We remind you that companies can participate in the program multiple times until the total available limit for a group of related companies, which is 1.5 million euros, is exhausted. Companies can carry out the work in stages, starting with the installation of solar panels, continuing with the enhancement of building energy efficiency, and simultaneously purchasing electric vehicles.
Cabinet of Ministers amendments approved on February 20th include a number of improvements in the range of supported activities. Among them, when carrying out energy efficiency measures, companies can also invest in green roofs, digitalization of building equipment, charging infrastructure, equipment, and energy storage devices for self-consumption. Meanwhile, the activities supported for the implementation of renewable energy (RE) technologies in companies have been expanded to include technologies producing renewable hydrogen, biofuels, biological liquid fuels, biomethane, and biomass fuels, high-efficiency cogeneration technologies, as well as energy storage or retention equipment for self-consumption.
We remind you that this year the approach to opening future rounds of the program has changed – the project submission stage for each round will last four weeks, and the next round opens a week after the previous round closes. The results of each round are announced within a month after the round closes. The available funding amount for the next rounds will depend on the funding amount reserved in the 6th round.
In project evaluation, as before, companies' submitted projects will be compared in the selection process, awarding the most points to those that ensure the greatest reduction in greenhouse gas emissions or primary energy savings, calculated per every 1000 euros of support. Projects eligible for a loan with a capital discount will be announced within a month after each round closes.
Support for enhancing energy efficiency and broader use of renewable energy technologies for companies is available as an ALTUM loan or a parallel loan with a capital discount for principal repayment. The maximum loan amount is five million euros with a loan term up to 15 years. Support is provided as a capital discount, meaning ALTUM reduces the loan principal after the completion of the project and achievement of project goals. The capital discount can be requested up to 30% of the project costs, but not more than 1.5 million euros for a group of related companies.
More information about the program is available here: Energy Efficiency Loan with Capital Discount - bit.ly/3Wrom7j and Electric Vehicle Purchase Guarantee with Capital Discount - bit.ly/3FH23Vd.
About ALTUM: The Development Finance Institution ALTUM is a capital company owned by the state of Latvia, which, with the help of state support financial instruments, provides support in the form of financial instruments (loans, guarantees, investments in venture capital funds, etc.) within specific programs, supplemented by non-financial support (consultations, mentoring), 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 company Moody's for a state capital company, which confirms ALTUM's stable financial situation. 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 Eglīte ALTUM Public Relations Manager T: 26577810 sandra.eglite@altum.lv
