Energy Efficiency Loan with Capital Discount

Energy Efficiency Loan with Capital Discount

Funds enterprise energy-efficiency and renewable upgrades in Latvia through discounted financing.

The Energy Efficiency Loan with Capital Discount is an annual recurring program administered by ALTUM, Latvia's state development finance institution, financed from the EU Recovery and Resilience Facility under the NextGenerationEU framework. The program combines an ALTUM investment loan with a non-repayable capital discount of up to 30% of total eligible project costs, excluding VAT, capped at EUR 1.5 million per related company group. Two separate budget pools support the program: EUR 25.75 million for energy efficiency measures and EUR 45 million for renewable energy installations, together totaling EUR 70.75 million.

Eligible activities include building-envelope and HVAC reconstruction, energy-efficient production equipment, secondary-energy-resource recovery systems, solar and wind generation, heat pumps, biomass, biogas, and electric vehicles. Projects must meet one of two performance thresholds: at least 30% primary energy savings or at least 80% renewable-energy self-consumption. The program is open to micro, small, medium, and large enterprises operating in Latvia; however, several sectors are excluded, including primary agriculture, fishing, tobacco manufacturing, transport, wholesale and retail trade, car repair, and gambling.

Applications are accepted only during a fixed annual window: 15 August through 15 September each year. Outside this window applications are not accepted. The 2026 cycle follows the same annual schedule. Enterprises planning to apply must have their project documentation, energy audits, and NACE-code eligibility confirmed before the August window opens. ALTUM manages submissions directly; the capital discount is disbursed after verified project completion against the defined energy performance targets.