Record amount of support for energy self-sufficiency and efficiency

Today, the Ministry of Finance, together with the Ministry of Energy and INVEGA, unveiled a record-breaking support of almost EUR 800 million to increase energy self-sufficiency and efficiency in the residential, business and public sectors.

Finance Minister Gintarė Skaistė: ‘We see the need to increase the volume of electricity generation from renewable sources, which is why we have put together a financial instrument worth almost EUR 1 billion, bringing together both public and private resources. The new measure will reduce energy poverty at the most vulnerable social levels, increase business competitiveness and make more efficient use of energy potential in the public sector. Investing in green energy increases our energy self-sufficiency and brings us closer to our long-term goal of generating all the energy the country needs ourselves’.

This is a record amount of support in the energy sector during the entire period of Lithuania’s independence. Access to public support has been one of the key factors behind the explosive growth of renewable energy in Lithuania.

Minister of Energy, Dainius Kreivys: ‘This is a record amount of support in the energy sector throughout Lithuania’s independence. Access to public support has been one of the key factors behind the explosive growth of renewable energy in Lithuania. In three years, it has more than tripled from 699 MW in 2020 to 2.33 GW in 2023, and the number of generating consumers – businesses and residents – who are supplied with electricity from their own power plants has already surpassed 90,000’.

According to Kreivys, the Ministry of Energy will continue to support already proven and welcome measures for residents and businesses, such as own solar and wind power plants, and replacement of inefficient fossil-fuel boilers. It will also encourage investment in energy storage devices (batteries), further development of private charging stations for electric vehicles, hydrogen production and renovation of public buildings.
The signing of an agreement between the Ministries of Energy, Finance and INVEGA on the replenishment of the Energy Efficiency Fund for the development of Renewable Energy Sources (RES) resulted in the allocation of almost EUR 800 million from the EU 2021-2027 investment programme, the Naujos kartos Lietuva (New Generation Lithuania) plan and the State Budget of the Republic of Lithuania. INVEGA is already launching a call for applications for RES loans for legal entities, and a call for financing of energy partnerships will be launched in April.

We will provide favourable financing for investments that increase the share of electricity generated from RES.

Head of INVEGA, Dainius Vilčinskas: ‘The financing solutions that we will soon be offering to the market are aimed at businesses, public institutions, companies and communities. We will provide favourable financing for investments that increase the share of electricity generated from RES. We aim to enable companies to secure a stable electricity price in the long term, which is essential for forecasting business costs. Equally important is the fact that this energy will be produced in environmentally sustainable ways and will contribute to Lithuania’s energy independence’.

EUR 549 million is available for financing RES for legal entities – EUR 22.6 million from the Next Generation Lithuania plan and EUR 22.6 million from the State Budget of the Republic of Lithuania. Investments in RES-based electricity generation facilities (installation, construction or purchase of solar and wind power plants) will be financed. Loans will be granted to producing consumers or to private and public legal entities seeking to become producing consumers. The proposed financing solution will allow borrowing for up to 15 (solar generation) and 20 (wind generation) years at an interest rate of up to 3%.

EUR 206.6 million has been earmarked for the financing of energy communities by the State Budget of the Republic of Lithuania. The solution being developed will allow the financing of energy generation capacity for municipalities, municipal institutions, businesses and households living in poverty. Part of the capacity of the installed or acquired power plant will have to be transferred to those who are energy-deprived, thus reducing their electricity bills.

Applications for RES financing for legal entities can be submitted to INVEGA via the electronic application system from 28 March at 13:00. INVEGA intends to launch a call for applications for financing energy companies in April. Follow the news at invega.lt.