A record amount of support for energy independence and efficiency
Today, the Ministry of Finance together with the Ministry of Energy and the National Promotional Institution “Investicijų ir verslo garantijos“ (Investment and Business Guarantees) (INVEGA) presented record support in the amount of almost EUR 800 million for increasing the energy independence and efficiency for residents, business and the public sector.
"We see the necessity to increase the volume of electricity generation from renewable sources, which is why we have prepared a financial instrument worth almost one billion euros, mobilizing both public and private resources. The new instrument will reduce energy poverty at the most sensitive social levels, increase business competitiveness and more effectively use the energy potential in the public sector. Investments in green energy increase our energy independence and bring us closer to the long-term goal of producing all the country's energy ourselves," says Minister of Gintarė Skaistė.
"This is a record amount of support in the energy sector during the entire period of Lithuania's independence. The possibility to use the support provided by the state was one of the most important factors that led to the rapid growth of renewable energy in Lithuania. It has more than tripled in three years: from 699 MW in 2020 to up to 2.33 GW in 2023, and the number of producing consumers – businesses and residents who get electricity from their own power plants – has already exceeded 90 thousand," says Minister of Energy Dainius Kreivys.
According to him, the Ministry of Energy will continue to support the already proven and expected measures for residents and businesses, such as own solar and wind power plants, replacement of inefficient fossil fuel boilers. Investments in energy storage devices (batteries), further development of private electric car charging stations, hydrogen production and renovation of public buildings will also be encouraged.
By signing the agreement between the Ministry of Energy, Ministry of Finance and INVEGA on the replenishment of the Energy Efficiency Fund, almost EUR 800 million of the plan "New Generation Lithuania" funds under the EU Investment Programme 2021-2027, and funds from the State budget of the Republic of Lithuaniawere allocated for the development of renewable energy sources (RES). Already today, INVEGA is announcing a call for tenders for RES loans for legal entities, and in April, a call for tenders for funding of energy communities will be announced.
"Financing decisions, which we will soon offer to the market, are intended for both business and public institutions and companies, as well as associations. Under favourable conditions, we will finance investments that increase the RES share. We aim to give companies the opportunity to secure a stable electricity price in the long term, which is very important when forecasting business costs. Equally important is the fact that this energy will be produced in environmentally sustainable ways and will contribute to increasing Lithuania's energy independence," says Dainius Vilčinskas, Chief Executive Officer of INVEGA.
The funds of EUR 549 million under the plan "New generation Lithuania" and EUR 22.6 million from the State budget funds of the Republic of Lithuania were allocated for financing of RES legal entities. Investments in RES electricity generation facilities (installation, construction or acquisition of solar and wind power plants from the park) will be financed. Loans will be provided to producing consumers or to private and public legal entities seeking to become producing consumers. The proposed financing decision will allow borrowing for a period of up to 15 (for solar power plants) and up to 20 (for wind power plants) years, the interest rate will not exceed 3 %.
EUR 206.6 million from the State budget of the Republic of Lithuania were allocated for financing of energy communities. The decision being developed will enable financing of energy generation capacities for municipalities, municipal institutions, companies and households living in poverty. Part of the capacity of the installed or purchased power plant will have to be transferred to persons experiencing energy poverty, thus reducing the electricity bills of these persons.
Tenders for financing of RES by legal entities can be submitted to INVEGA through the e-tender system as of 28 March, 13:00. INVEGA intends to announce the call for tenders on financing of energy communities in April. Follow the news at invega.lt.
INVEGA presentation is available HERE.
Last updated: 18-04-2024
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