On 9 March this year, the Development Finance Institution ALTUM begins accepting applications for a new state support programme aimed at greening business operations, increasing the use of renewable energy sources, and improving energy efficiency. The programme is intended exclusively for regional entrepreneurs – both small and medium-sized enterprises – to implement sustainable projects.
Minister of Economics Viktors Valainis:
“The aim of the programme is to promote investments in improving energy efficiency, smart energy management, and the use of renewable energy sources in industry and other economic sectors, as well as to facilitate the transition to a climate-neutral economy in the regions most affected by the transition.”
Three support directions with a regional focus
The programme will support three types of projects: improving energy efficiency in buildings and equipment, producing renewable energy for self-consumption, and developing new products and processes that significantly reduce resource consumption and greenhouse gas emissions.
The support, financed from the European Union’s Just Transition Fund, is available to small and medium-sized enterprises implementing projects in the Vidzeme, Kurzeme, Zemgale, or Latgale regions. Funding is available to companies whose projects are implemented outside Riga and Jūrmala, as well as outside the municipalities of Ādaži, Ķekava, Mārupe, Olaine, Ropaži, Salaspils, Sigulda, Tukums, Ogre, Saulkrasti, and Limbaži.
Capital rebate accelerates project payback
Financing under the programme will be available in the form of a loan or a guarantee with a capital rebate. The capital rebate may reach up to 30% of the loan amount of eligible project costs.
The capital rebate will be applied to reduce the loan principal after project completion, provided the company achieves the required targets, including at least:
20% primary energy savings in energy efficiency projects;
80% use of produced renewable energy for self-consumption in renewable energy projects; or
measurable greenhouse gas emission reductions in projects developing new products or processes.
The maximum loan amount is €10 million, while the maximum capital rebate can reach €3 million. The maximum loan term offered by ALTUM is up to 20 years.
Companies may also finance investments through commercial bank loans backed by an ALTUM guarantee of up to 80% of eligible loan costs. The guarantee fee will be 0% during the first five years.
A capital rebate is a full or partial reduction of the loan principal applied by ALTUM after the project is completed and the project’s targets and indicators have been achieved. This mechanism accelerates the return on investment and significantly improves the financial viability of projects.
Līga Mellēna, Head of Energy Efficiency for Businesses at ALTUM:
“This programme will remain open continuously as long as funding is available. As with any programme, companies need to prepare before applying. The most important step is conducting an energy audit of the buildings, equipment, or processes planned for support. The energy audit serves as a roadmap, helping companies assess potential energy and financial savings, and it is also the document ALTUM uses to evaluate project eligibility. The programme operates on a ‘first come, first served’ basis, so companies are encouraged to prepare early and submit highly ready projects.”
Webinar for interested companies
Interested companies are invited to participate in an ALTUM webinar on 11 March at 11:00, where they will be able to learn more about the support instruments and ask questions to ALTUM specialists.
More information:
https://www.altum.lv/11-marta-aicinam-uz-vebinaru-par-jauno-atbalsta-programmu-uznemumu-zalinasanai/
The programme conditions are set out in Cabinet of Ministers Regulation No. 155 “Regulations on the Support Programme for Business Greening, Renewable Energy Use and Energy Efficiency Improvement.”
Additional information:
Development Finance Institution ALTUM
Sandra Eglīte – Head of Public Relations
Email: sandra.eglite@altum.lv
Phone: +371 26577810
