On Tuesday, 15 September, the Government approved amendments prepared by the Ministry of Agriculture (MoA) to the procedures for granting support from the European Agricultural Fund for Rural Development (EAFRD) for investments in material assets. The amendments introduce more favourable conditions for farmers implementing projects aimed at the use of renewable energy sources (RES) and increasing energy efficiency, including increased support for the development of biogas production.
To promote investment in biogas production technologies, the support intensity for public funding under the intervention “Support for investments in the use of renewable energy sources or increasing energy efficiency” will be increased from 60% to 65% of the eligible project costs. For young farmers, the support intensity will be five percentage points higher.
A separate maximum amount of eligible costs of EUR 700,000 will be set for renewable energy and energy efficiency projects. This means that investments previously implemented by a farmer under other interventions of “Support for investments in agricultural holdings” will no longer reduce the maximum amount of eligible costs available for these projects. This is particularly important for biogas projects, which require relatively large initial investments.
Simplified conditions will also apply to investments in solar energy production and electricity storage. The Catalogue of Machinery and Equipment will no longer be used to determine the eligible costs of solar panel systems and electricity storage equipment. Instead, the unit cost rates established by the MoA will be used. This will make it easier for farmers to prepare projects, while also simplifying their administration by the Rural Support Service (RSS).
For biogas projects, the RSS will assess costs on an individual basis, based on procurement procedure documents. The Catalogue of Machinery and Equipment will not apply, as the technical solutions, capacity, feedstock used and construction solutions of such projects may vary significantly.
The amendments expand opportunities for farmers and agricultural product processors to invest in the use of renewable energy and energy efficiency, while simplifying the conditions for receiving support and creating more favourable opportunities for the development of biogas projects.
The amendments to Cabinet Regulation No. 303 of 21 May 2024, “Procedures for Granting State and European Union Support through an Open Call for Projects for Investments in Material Assets under the European Agricultural Fund for Rural Development during the 2023–2027 Programming Period,” will enter into force on the day following their publication in the official gazette Latvijas Vēstnesis.
