Renewable energy policy database and support: single

Loan (Climate Change Special Programme)

Updated: 21.12.2018

Author: Jurga Tallat-Kelpšaitė

The Climate Change Special Programme supports projects which aim to reduce greenhouse gas emissions. No less than 40% of the funds for this programme are used for the support of renewable energy projects and environmentally friendly technologies, including energy efficient cogeneration. This fund provides support in the form of loans and subsidies according to the Guidelines for the Use of the Fund of the Climate Change Special Programme, approved by Order No. D1-275/2010.

Eligible technologies

All renewable energy generation technologies are eligible for this scheme (Chapter II Item 4.1.2. Order No. D1-275/2010 in conjunction with Art. 10 Par. 3 Law on Financial Instruments for Climate Change Management).

Geothermal energy	Eligible
Wind energy	Eligible
Solar energy	Eligible
Biogas	Eligible
Hydro-power	Eligible
Biomass	Eligible

Amount

Addressees

Procedure

Process flow	Notice on application deadline. No later than within 30 working days from the approval of the annual cost estimate, the EPMA is obliged to publish on its website information on the calls for tenders granting loans to renewable energy projects. The information to be provided varies depending in the type of the project. However, such information like deadlines for the submission of an application or specification of the selection procedure shall be provided in any case (Chapter VI Item 45. Order No. D1-275/2010). Application. An application form must be completed and submitted to the EPMA along with the mandatory documents (Chapter VI Item 46. Order No. D1-275/2010). Written notice of registration. The EPMA registers the applications received. A written notice of registration of the application shall be sent to the applicant no later than within 3 working days from the registration of his application (Chapter VI Item 49. Order No. D1-275/2010). Project Evaluation. The evaluation of a project is carried out by the EPMA or independent experts and consists of an assessment of the administrative compliance of the application as well as an environmental and technical evaluation of the project (Chapter VI Items 50., 51. Order No. D1-275/2010). Special-Purpose Agreement and Loan Agreement. The EPMA is obliged to notify the credit institution of its decision to grant a loan and the terms and conditions thereof within 5 working days. If the credit institution agrees to issue the loan, it signs a special-purpose agreement with the Ministry of Environment. Within 2 months from signing of this agreement, the applicant and the credit institution have to enter into a loan agreement and forward a copy thereof to the Ministry of Environment and the EPMA (Chapter VII Items 81., 82. Order No. D1-275/2010). Financing Agreement. Within 20 working days of signing the special-purpose agreement, the EPMA is obliged to draft a financing agreement for the project and submit the same for signature to the applicant, who has to sign it within one month from the receipt of the draft agreement. If within one month the applicant fails to sign the financing agreement, it is deemed that he has refused funding (Chapter VII Item 83. Order No. D1-275/2010).
Competent authority	The Climate Change Politics Department of the Ministry of Environment is responsible for coordinating the management of the Climate Change Special Programme as well as for the preparation and approval of cost estimates and reports (Item 2.1. Order No. D1-275/2010). The EPMA is responsible for the implementation of the Climate Change Special Programme (Item 2.2. Order No. D1-275/2010).

Process flow

Notice on application deadline. No later than within 30 working days from the approval of the annual cost estimate, the EPMA is obliged to publish on its website information on the calls for tenders granting loans to renewable energy projects. The information to be provided varies depending in the type of the project. However, such information like deadlines for the submission of an application or specification of the selection procedure shall be provided in any case (Chapter VI Item 45. Order No. D1-275/2010).

Application. An application form must be completed and submitted to the EPMA along with the mandatory documents (Chapter VI Item 46. Order No. D1-275/2010).

Written notice of registration. The EPMA registers the applications received. A written notice of registration of the application shall be sent to the applicant no later than within 3 working days from the registration of his application (Chapter VI Item 49. Order No. D1-275/2010).

Project Evaluation. The evaluation of a project is carried out by the EPMA or independent experts and consists of an assessment of the administrative compliance of the application as well as an environmental and technical evaluation of the project (Chapter VI Items 50., 51. Order No. D1-275/2010).

Special-Purpose Agreement and Loan Agreement. The EPMA is obliged to notify the credit institution of its decision to grant a loan and the terms and conditions thereof within 5 working days. If the credit institution agrees to issue the loan, it signs a special-purpose agreement with the Ministry of Environment. Within 2 months from signing of this agreement, the applicant and the credit institution have to enter into a loan agreement and forward a copy thereof to the Ministry of Environment and the EPMA (Chapter VII Items 81., 82. Order No. D1-275/2010).

Financing Agreement. Within 20 working days of signing the special-purpose agreement, the EPMA is obliged to draft a financing agreement for the project and submit the same for signature to the applicant, who has to sign it within one month from the receipt of the draft agreement. If within one month the applicant fails to sign the financing agreement, it is deemed that he has refused funding (Chapter VII Item 83. Order No. D1-275/2010).

Competent authority

The Climate Change Politics Department of the Ministry of Environment is responsible for coordinating the management of the Climate Change Special Programme as well as for the preparation and approval of cost estimates and reports (Item 2.1. Order No. D1-275/2010).

The EPMA is responsible for the implementation of the Climate Change Special Programme (Item 2.2. Order No. D1-275/2010).

Distribution of costs

State	The budget of the Climate Change Special Programme is financed from the revenue from the European Union’s Emissions Trading System (EU ETS), financial penalties, donations by natural and legal persons for climate change mitigation, and other legally obtained funds (Chapter III Art. 10 Par. 2 Law on Financial Instruments for Climate Change Management).

State

The budget of the Climate Change Special Programme is financed from the revenue from the European Union’s Emissions Trading System (EU ETS), financial penalties, donations by natural and legal persons for climate change mitigation, and other legally obtained funds (Chapter III Art. 10 Par. 2 Law on Financial Instruments for Climate Change Management).

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