Corporate Energy Efficiency Loan

Latvia
Phase: Anticipation
Тип:
  • Access to finance
  • Transition to a climate-neutral economy
  • Support of SMEs
Last modified: 17 September, 2020
Име (на собств. език):

Aizdevums uzņēmumu energoefektivitātei

Име на английски:

Corporate energy efficiency loan

Coverage/Eligibility

The applying company and its owner must have no up-to-date records of debts in the bank of Latvia's credit register, other debtors' registers, and no current tax debt to the state revenue service.

Companies are not eligible if they meet the criteria for opening insolvency proceeding, or they have been declared insolvent by a court.

The loan is especially relevant for companies if energy consumption is a significant cost item and exceeds €20,000 per year, for example for:

  • Food producers, woodworking and metalworking companies.
  • Shopping and sports centres, warehouses, hotels, office buildings.
  • Large companies and large energy consumers affected by the energy efficiency act.

Main characteristics

Altum, a state-owned development finance institution, is offering a loan for company energy efficiency and implementation of renewable energy projects. The loan can be used to improve companies' energy efficiency, including:

  • Modernisation of heating systems. 
  • Modernisation of existing production facilities.
  • Modernisation of transport.
  • Modernisation of ventilation, drying, heat, cold, steam production equipment, dryers, motors, pumps.
  • LED lighting.
  • Electricity supply equipment as well as other energy consumers.
  • The installation of renewable energy systems.

A company might use the loan to refinance existing projects or to purchase used equipment.

    The loan conditions are:

    • Amount may be up to €2,850,000 and up to 85% of total project cost.
    • Duration from 5 to 14 years;
    • To be repayable through project saving.
    • Absence of collateral - security is an option.

    Funding for ALTUM comes from an €18 million loan from the European Investment Bank and from €3 million guarantees from the private finance for energy efficiency (PF4EE) instrument. Some other funding comes from green bonds issued by ALTUM itself.

    Funding

    • National funds
    • European funds
    • European Funds
    • Other

    Involved actors

    National government
    Ministry of Economics, Ministry of Finance and Ministry of Agriculture are shareholders of ALTUM.
    Други
    ALTUM - a state-owned development finance institution. European Investment Bank.

    Effectiveness

    The loan programme is in place since 1 November 2017. Up to July 2020 there are 45 approved loans for total amount around €20 million, the smallest approved project is €11,500, the largest approved amounts to €2,850,000,  while the average project size is €497,000.

    Strengths

    This loan programme is in place specifically for 'green' projects.

    Weaknesses

    No information available.

    Examples

    Wood processing company Erte Grupa has invested close to €1 million in improving energy efficiency, of which €471,000 have been received in the form of a loan from the development financial institution ALTUM. The launched energy efficiency project covers a third of the company's total technological capacity and will reduce energy costs per production unit by up to 35%.
    Useful? Interesting? Tell us what you think. Hide comments

    Eurofound welcomes feedback and updates on this regulation

    Коментар