On 15 August this year, the national development finance institution ALTUM will start accepting applications for an additional call under the European Union Recovery Fund programme for energy efficiency, the introduction of renewable energy technologies, and the purchase of electric vehicles. A total of €17.5 million has been allocated for projects in this additional call, with applications open until noon on 15 September.

The programme provides support in the form of a loan with a capital discount of up to 30% of project costs, meaning that ALTUM will reduce the loan principal after project completion and achievement of project goals. The programme is available to entrepreneurs across Latvia. The ALTUM loan, at least equal to the capital discount amount, has a fixed annual interest rate of 1.9%. When companies achieve the targeted CO₂ savings – through energy efficiency measures or renewable energy technology implementation – the loan principal is written off by up to 30% of project costs.

Līga Mellēna, Head of ALTUM’s Business Energy Efficiency Department:
“In the previous ten rounds of the Recovery Fund business energy efficiency programme, more than 450 contracts were approved and signed, with a total investment volume of €95 million. In the new round, which is already the eleventh in this programme, companies that have previously received support may also apply, provided that the total capital discount for one group of related companies under this programme does not exceed €1.5 million. For example, if a company previously installed a solar power plant for self-consumption with programme support, it can now add extra solar panels and electricity storage batteries. Moreover, this is a great opportunity to receive financing quickly, especially for projects that are already at a high readiness stage.”

Support for energy efficiency improvements and wider use of renewable energy technologies is available to companies either as an ALTUM loan or as a parallel loan with a capital discount for principal write-off. The maximum loan amount is €5 million, with a repayment term of up to 15 years. In the case of electric vehicles, the capital discount per vehicle is €5,000–10,000, and no more than €180,000 in total for a group of related companies.

The programme is intended for micro, small, medium, and large enterprises whose sector of activity is not primary agricultural production, fisheries, tobacco manufacturing, gambling, or transport.

In project evaluation, as before, submitted projects will be compared against each other, with the highest scores awarded to those that deliver the largest greenhouse gas emission reductions or primary energy savings per €1,000 of support. Projects eligible for a loan with a capital discount will be announced no later than one month after the call closes. Applicants will then be required to submit their loan applications to ALTUM immediately – no later than one month – so that ALTUM can make a support decision by the end of this year.

Līga Mellēna adds:
“We know that companies are already preparing – conducting energy audits, design work, and price surveys – to participate in the new energy efficiency programme expected at the end of the year from the European Regional Development Fund. This additional Recovery Fund round is a great opportunity to apply for and implement high-readiness projects now, under a process already well known to entrepreneurs. I remind you that in the energy efficiency field, projects can include building insulation and equipment replacement that achieve at least 30% primary energy savings, while in the renewable energy field, companies can apply for the installation of various technologies for self-consumption.”

More information about the programme is available here: ALTUM Energy Efficiency Loan with Capital Discount

About ALTUM:
The national development finance institution ALTUM is a state-owned company of Latvia that provides support to specific target groups through state aid financial instruments (loans, guarantees, investments in venture capital funds, etc.) within specific programmes, complementing these with non-financial support (consultations, mentoring), and carrying out other state-delegated functions. In June 2017, ALTUM received a long-term credit rating of Baa1 from the international credit rating agency Moody’s, confirming the company’s stable financial position. On 24 October 2017, ALTUM bonds were listed on the regulated market – the Nasdaq Riga Baltic Bond List. In 2019, ALTUM received the Nasdaq Baltic Awards prize in the category “Stock Exchange Event of the Year in Latvia.”