Development Finance Institution ALTUM will start accepting applications for the next, 8th round of project selection under the European Union Recovery Fund program on September 10th of this year. This program focuses on energy efficiency, the implementation of renewable energy technologies, and the acquisition of electric vehicles. Companies are invited to submit their applications by October 7th at 12:00 PM.

Līga Mellēna, Head of ALTUM's Corporate Energy Efficiency Department, explains:

"The support program offers businesses an attractive financing solution for sustainability projects—loans with a low interest rate and a capital rebate of up to 30% of the total project costs. This means that after the project is completed, nearly one-third of the loan's principal amount is forgiven and does not need to be repaid, significantly improving the project's return on investment."

The total available funding from the EU Recovery Fund for this program is 75 million euros, of which approximately 46 million euros have already been reserved for projects submitted by companies in previous rounds. Companies can participate in the ALTUM program multiple times until the support limit for a group of related companies, set at 1.5 million euros, is exhausted.

Unlike previous rounds, companies will now be able to purchase electric vehicles with state support, even if they have a mileage of up to 6,000 kilometers and have been in use for less than six months. Support can be applied for energy efficiency measures in company infrastructure that achieve at least a 30% reduction in primary energy consumption. Investments can be made in both the energy efficiency of production processes and buildings. Additionally, beyond insulation and the replacement of engineering communications in buildings, companies can invest in green roofs, digitization of building equipment, charging equipment, and equipment for storing produced renewable energy. The program also supports the installation of biomass heat energy production equipment, biogas, biomethane, and even renewable hydrogen production equipment, as well as storage equipment for the produced renewable energy for self-consumption.

"More and more companies are realizing that reporting on sustainability metrics will soon be a daily requirement not just for large companies but also for small and medium-sized enterprises. They are acting proactively by doing their homework to reduce energy consumption in a timely manner. Any company that becomes greener today is one step ahead of its competitors. And there are many opportunities—for example, moving away from gas heating in favor of zero-emission technologies such as heat pumps, replacing production equipment with more energy-efficient alternatives, and insulating production or other non-residential buildings. The basic principle still holds—the cheapest energy is the energy that is not consumed, making it possible to significantly reduce expenses through energy efficiency measures," explains Līga Mellēna.

On September 18th of this year, from 10:00 to 11:30 AM, in collaboration with the Latvian Chamber of Commerce and Industry, a webinar will be held to explain the program's opportunities and provide other important information to entrepreneurs. More information is available on the association's website.

In the 8th round of selection, as in previous rounds, projects submitted by companies will be compared in the selection process, with the highest scores given to those that ensure the greatest reduction in greenhouse gas emissions or primary energy savings per 1,000 euros of support. Projects eligible for a loan with a capital rebate will be announced within a month after the closing of the selection round. Information about future rounds will be available on ALTUM's website www.altum.lv.

In previous rounds, over 560 applications have been received from companies. Currently, more than 180 contracts have been signed with companies for projects with planned total investments of 65 million euros. The expected reduction in greenhouse gas emissions is around 6,900 tons of CO2 equivalent per year.

More information about the program is available here: Energy Efficiency Loan with Capital Rebate – https://www.altum.lv/pakalpojumi/biznesam/energoefektivitates-aizdevums-ar-kapitala-atlaidi/ and Electric Vehicle Purchase Guarantee with Capital Rebate – https://www.altum.lv/pakalpojumi/biznesam/elektroauto-iegades-garantija-ar-kapitala-atlaidi/.