“New opportunities have opened up for Lithuanian industry to invest in sustainable solutions and to make a significant contribution to Lithuania's transformation towards a climate neutral country. These calls will allow businesses to implement a wide range of projects, such as the purchase of equipment to increase energy efficiency in the production process and reduce carbon emissions. They can also purchase production equipment or replace old equipment with less polluting equipment that reduces energy consumption or production waste,” said Agnė Vaitkūnienė, Director of the Investment Management Department of the Innovation Agency.
The new calls are most relevant for industrial companies in the manufacturing and quarrying sectors. The maximum amount available for companies intending to develop projects to improve energy efficiency is €900,000, while the minimum is €75,000.
Call for the Capital and Mid-West Regions of Lithuania
This round of funding will target investments in two areas – the capital city and the regions of Mid-Western Lithuania. Energy efficiency projects in the Central and Western regions will be financed by the European Regional Development Fund and in the Capital region by the Cohesion Fund.
“Manufacturing is not only the engine of the economy, but also one of Lithuania's biggest energy consumers, so a decision to invest in energy efficiency today could lead to significant cost savings in the long term. In addition, by improving efficiency, manufacturing companies can make a significant contribution to Lithuania's goal of reducing its carbon footprint. Businesses need to have already considered energy efficiency solutions, which is why we are primarily targeting those who have ideas, projects and are willing to invest, but do not have all the capital they need,” said Ms Vaitkūnienė.
The representative of the Innovation Agency emphasises that investment aid is only granted for the purchase of new equipment. It is also important to note that the project implementation plan must be accompanied by an energy consumption audit carried out no earlier than two years ago. Both small and medium-sized manufacturing companies with up to 250 employees and large companies with 250 employees or more are eligible for the separate calls.
EU funds cover between 30% and 50% of the cost of an energy efficiency improvement project, but the aid intensity can be increased by 15% for investments in Alytus, Kaunas, Klaipėda, Marijampolė, Panevėžys, Šiauliai, Tauragė, Tauragė, Telšiai, and Utena counties. The main requirement is that the company's CO2 emissions must be reduced by 30% or more following the introduction of new technologies or equipment. Production must also account for at least 51% of the company's activity.
On 5 January 2023, the Innovation Agency invites those interested in accessing funding under this measure to a distance training course on "Improving Energy Efficiency in Industrial Enterprises". Registration is available online.
All call documents (conditions and forms to fill in) are available on the website of the Innovation Agency.
To strengthen the Lithuanian economy, the Ministry of the Economy and Innovation plans to implement measures totalling almost €1 billion by the end of 2023. Of this, €365 million are earmarked for business, innovation and investment.
