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.

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:

  • Project Information Form. An applicant shall submit to the LEIF a completed Project Information Form. The LEIF decides on whether a project complies with its funding objectives and financing conditions and shall inform the applicant about its decision within 10 working days after receipt of the form (Chapter III Items 16-17 Order No. 437/2003).
  • Application. The applicant submits an application for subsidy (Chapter III Items 16-17 Order No. 437/2003).
  • Application assessment. The LEIF examines the application. This includes an inspection to establish whether an application complies with the administrative and environmental-technical requirements (Chapter III Items 23 Order No. 437/2003). The examination on compliance with administrative requirements shall be carried out within 5 working days and the examination on compliance with environmental-technical requirements shall be carried out within 60 working days (Chapter III Items 27, 29 and 34 Order No. 437/2003).
  • Decision on the award of a subsidy. The decision on the award of a subsidy consists of several steps:
    • The applications selected by the LEIF are presented to the Minister of Environment within 5 working days from the selection made by the LEIF (Chapter III Item 35 Order No. 437/2003).
    • The Minister shall decide which projects will be granted a subsidy within 20 working days (Chapter III Item 37 Order No. 437/2003).
  • Information to the successful applicants. Within 5 working days from the decision on granting a subsidy, the Ministry of Environment informs the successful applicant in writing about its decision. In addition, this decision is published on the website of the Ministry (Chapter III Item 37 Order No. 437/2003).
  • Contract on financing and supervision. The LEIF shall prepare a draft contract on financing and supervision and submit it to the applicant within 20 working days from the decision on the award of a subsidy. The applicant shall sign the contract within one month from its receipt (Chapter IV Item 41 Order No. 437/2003).
  • Payment of subsidy. After acquiring, installing and starting to operate the facilities as intended in the project plan, the applicant has to submit an application for payment of the first part of the awarded subsidy (60%) and a report on technical project implementation (for approval) to the LEIF (Chapter II Item 9.1, Chapter IV Item 46 Order No. 437/2003). An application for payment of the second part of the subsidy (40%) shall be submitted to the LEIF together with the data on environmental compliance achieved during the first year of the supported project and with a final report on project implementation (Chapter II Item 9.2, Chapter IV Item 51 Order No. 437/2003).

Competent authority

The LEIF

Distribution of costs

State

According to LEIF, the projects are partly funded from the revenues from the environmental pollution tax. 

Lithuania

Further information

  • Lietuvos aplinkos apsaugos investicijų fondas (LAAIF) – Lithuanian Environmental Investment Fund (LEIF)
  • +370 5 216 9599
  • LEIF website
  • laaif(at)laaif.lt

Basic information on legal sources