Subsidy (LEIF)
Updated: 13.02.2017
Author: Jurga Tallat-Kelpšaitė
The Lithuanian Environmental Investment Fund (LEIF) supports projects aiming to reduce environmental damage in the long term. This definition includes renewable electricity (RES-E) projects with the exception of geothermal energy. Projects are supported in the form of interest subsidies and soft loans. There are two calls a year that are published in the media or on the website of the LEIF. For general information in Lithuanian on the funding of projects by the Lithuanian Environmental Fund please see www.laaif.lt.
Eligible technologies
All technologies used for renewable electricity generation, with the exception of geothermal energy, are promoted under this scheme (Chapter II Item 13.2.1. Statutes of the LEIF).
Wind energy | Eligible. |
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Solar energy | Eligible. |
Biogas | Eligible. |
Hydro-power | Eligible. |
Biomass | Eligible. |
Amount
The maximum subsidy is approx. € 200,000 and must not exceed 80% of the total project expenses (Chapter II Item 7 Order No. 437/2003).
Applicants shall demonstrate that they are able to provide funding for the rest of the project through their own resources (Chapter II Item 12 Order No. 437/2003).
The first part of the awarded subsidy (60%) is paid when the applicant has acquired, installed and started operating facilities as intended in the project plan and the head of LEIF confirmed the report on the project technical implementation. The remaining part of the awarded subsidy (40%) is paid when the applicant has submitted data on the environmental compliance achieved during the first year of the supported project. The remaining part of the subsidy is paid under the condition that during the first project year the environmental indicators set in the grant application are met by at least 95%. If 50% - 95% of environmental indicators are met, the grant shall be reduced accordingly. Finally, if during the first project year less than 50% of environmental indicators are met, environmental compliance is considered as not achieved and the second part of the subsidy will not be paid to the applicant. In this case the applicant shall also pay back the first part of the subsidy (which he has already received) to the LEIF (Chapter II Items 9-11 Order No. 437/2003).
Addressees
Entitled parties: Legal entities registered in Lithuania, or legal entities established in another country within the European Economic Area (EEA) whose subsidiary is registered in Lithuania and carries out projects in Lithuania (Chapter I Item 5 Order No. 437/2003).
Obligated party: The LEIF (Chapter I Item 1 Order No. 437/2003).
Procedure
Process flow | Applicants for grants shall demonstrate that they are able to provide funds for the rest of the project through their own resources (Chapter II Item 12 Order No. 437/2003). Procedure:
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Competent authority | The LEIF |
Distribution of costs
State | According to LEIF, the projects are partly funded from the revenues from the environmental pollution tax. |
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