The development finance institution ALTUM will start accepting applications on April 2 this year for the next, 5th round of project selection in the European Union's Recovery Fund program for energy efficiency, the implementation of renewable energy technology, and the purchase of electric vehicles. This year, the program has been significantly expanded, specifying that support can also be received by wholesale and retail traders, and electric vehicles can be purchased by companies in all sectors eligible for the program. The application submission for the open round will last until April 30.
The program provides support in the form of a loan with a capital discount and is now available to micro, small, medium, and large merchants whose sector of operation is not the primary production of agricultural products, fisheries, tobacco product manufacturing, gambling, or transport.
ALTUM's Head of Corporate Energy Efficiency, Līga Mellēna, commented: "Evaluating the application activity in the fourth round, we see that the expansion of the supported enterprise scope and supported areas was anticipated – we have received a total of 89 applications, a significant portion of which are, for example, the installation of solar power stations or the implementation of energy efficiency measures in commercial buildings, which could not previously be applied for in the program. We appreciate that entrepreneurs are also planning activities such as the recovery of secondary energy resources from existing processes, such as flue gases or wastewater, as well as the installation of industrial heat pumps, ventilation system replacement, production equipment replacement – activities that allow an average of 30-40% primary energy savings and accordingly energy cost savings. I encourage entrepreneurs to take advantage of the available support and apply for projects in the 5th selection round."
The total available funding for the 5th round projects is 25.25 million euros, of which 8.58 million euros are intended for increasing energy efficiency, 15 million euros for renewable energy technologies, and 1.66 million euros for zero-emission vehicles.
Amendments approved by the Cabinet of Ministers on February 20 introduce several improvements in the range of supported activities. Including, in carrying out energy efficiency measures, companies will now be able to invest in green roofs, digitalization of building equipment, charging infrastructure, equipment, and in the accumulation of produced energy. Meanwhile, the supported activities for the implementation of renewable energy resource (RES) technologies in companies have been expanded to include technologies that produce renewable hydrogen, biofuels, biological liquid fuels, biomethane, and biomass fuels, high-efficiency cogeneration technologies, as well as energy accumulation or storage devices for self-consumption.
A reminder that this year the approach to opening future rounds has changed – the project submission phase for each round will last four weeks, and the next round opens just a week after the previous round's closure. Accordingly, the 6th round will open on May 7, and the available funding amount will depend on the reserved funding amount in the 5th round. The results of the rounds are announced within a month after the closure of each round. New rounds will be opened until the program's funding is exhausted.
In project evaluation, as before, the projects submitted by companies will be compared in the selection, assigning the highest number of points to those that will achieve the greatest reduction in greenhouse gas emissions or primary energy savings, calculated per every 1000 euros of support. Projects that will be able to apply for a loan with a capital discount will be announced within a month after the closure of each round.
Support for increasing 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 the principal amount's repayment. The maximum loan amount is five million euros with a loan term of up to 15 years. The support is granted as a capital discount, meaning that ALTUM will reduce the loan principal amount after the project's completion 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 in total.
Support for electric vehicles is now available to all sectors that meet the program conditions. Support can be used to purchase new M1 category vehicles (additional seating for the driver and no more than eight seats, excluding standing passenger space) and N1 category electric vehicles (freight vehicles with a full mass of up to 3.5 tons). The capital discount amount is up to 30%, not exceeding five thousand euros for one M1 category vehicle and ten thousand euros for one N1 category vehicle. A group of related companies can collectively request support in this area up to 180 thousand euros in total. When purchasing an electric vehicle, the entrepreneur receives a guarantee from ALTUM for financial leasing. After one year of usage, reaching the project goal – mileage of no less than 20,000 km, a capital discount will be applied.
More information about the program is available here: Energy efficiency loan with a capital discount - bit.ly/3Wrom7j and electric vehicle
