The information was translated using the ChatGPT service.
On February 4th this year, the first selection round for the ALTUM Development Financial Institution's new Recovery Fund program for business energy efficiency, the introduction of renewable energy technologies, and the purchase of electric cars was concluded. During the first round, a total of 138 companies submitted applications, and 118 of them were invited to apply for the program's loan with a capital discount.
The projects submitted by the companies were compared with each other, awarding the most points to projects that will achieve the greatest reduction in greenhouse gas emissions or primary energy consumption per every 1000 euros of support.
The range of planned investments is very wide, ranging from 10 thousand euros to as much as 5 million euros. For measures introducing renewable energy technologies, the average capital discount requested is 144 thousand euros with a planned investment of around 480 thousand euros. For measures to improve energy efficiency, the average capital discount requested is 257 thousand euros, with planned investments of around 850 thousand euros. The total capital discount requested in the selected projects is 18.9 million euros. The capital discount will be paid to companies after the completion of the project and the achievement of the energy efficiency goals set.
The majority, 98 applications, were approved for renewable energy projects for company self-consumption, and their potential planned reduction in greenhouse gas emissions is 5251 tons of CO2 per year. 18 applications have been approved for energy efficiency improvement projects in companies, and as a result of implementing these projects, a reduction of 9883 MWh of primary energy is planned annually. Meanwhile, 2 applications were approved for electric car purchase projects.
The next step for the approved project applicants is to prepare and submit an ALTUM loan application or a parallel loan within four months, if the project is to be financed with commercial bank co-financing. When deciding on granting a loan with a capital discount, the viability of the project and other financial and compliance criteria will be assessed. This program encourages entrepreneurs to improve energy efficiency and increase the share of renewable energy in their energy consumption balance, offering an attractive financing solution – after project implementation, a capital discount can write off up to 30% of investment costs. We assess the interest in the program and the mutual competition of projects as quite active, especially in the section on renewable energy projects. We expect that activity in the other sections will also increase in the next selection rounds," emphasizes Līga Mellēna, Head of ALTUM's Business Energy Efficiency Department.
About the program:
The support program for business energy efficiency is funded from the resources of the European Union's Recovery Fund. Support is provided to entrepreneurs in the form of a loan or a parallel loan to increase energy efficiency in buildings and production processes or to implement renewable energy (RE) projects for self-consumption. The ALTUM loan or parallel loan is available with a 30% capital discount for principal repayment, if the borrower implements the planned project, achieving the objectives set in it.
The loan amount can be up to 5 million EUR, including a capital discount of up to 30% of the investment amount, which cannot exceed 1.5 million EUR. For parallel loans, which ALTUM will provide alongside credit institution loans, the minimum loan amount will be 50 thousand EUR. The loan term is up to 15 years. Support for the purchase of electric cars is available as a leasing guarantee with a capital discount of up to 180,000 euros (up to 5,000 euros for one vehicle, not exceeding 30% of the VAT-exempt leasing obligation).
Projects will be accepted in three selection rounds (the first round took place from November 4th to January 4th with project evaluation until February 4th) and each selection lasts two months (notification of the start of selection is published on the Altum website).
About ALTUM:
The Development Finance 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 venture capital funds, etc.), complementing them with non-financial support (consultations, mentoring), as well as implementing other state-delegated functions. In June 2017, ALTUM received a Baa1 long-term credit rating from the international credit rating company Moody's, 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 "Exchange Event of the Year in Latvia".
