Translated using ChatGPT service.
On December 17, 2024, the Cabinet of Ministers approved a new European Union-funded support program aimed at improving energy efficiency in multi-apartment residential buildings and promoting the development of the Energy Service Company (ESCO) market in Latvia. The total funding for the program is €173 million, and by the end of 2029, it is planned to renovate approximately 266 multi-apartment buildings.
“Since 2007, we have been offering support to residents for housing renovation and energy efficiency improvements. It is no secret that most residential buildings require urgent repairs and energy-saving investments. That is why we are moving step by step towards our shared goal, continuing to provide funding for housing renovation and improving living conditions,” emphasized Minister of Economics Viktors Valainis.
Support will be provided for the renovation of multi-apartment residential buildings (with at least three apartments), whether or not they are divided into apartment ownerships and regardless of the number of apartment owners. This ensures a wide range of potential support recipients, including individuals who are the sole owners of all apartments in a building.
Support for multi-apartment building residents will be provided as a combined financial instrument, consisting of a loan or guarantee, with a capital rebate for partial repayment of the loan principal. If a project achieves at least a 30% reduction in total primary energy consumption, a 40% capital rebate will be granted. The capital rebate may increase—if a ventilated façade, which provides greater durability and cost-effectiveness compared to a plastered façade, is installed, the rebate will be 45%.
If prefabricated wooden insulation panels are used, or if the project is implemented under the so-called “district approach,” where at least three buildings apply for renovation together, the maximum possible capital rebate of 50% will be available. These methods will significantly accelerate the pace of building renovations.
To date, support activity in the Latgale planning region has been low, with only 87 multi-apartment buildings renovated since 2007, representing 6.36% of the total number of projects submitted. To provide additional support to residents of the Latgale region and encourage multi-apartment building renovations there, projects for specific energy efficiency measures achieving at least 10% primary energy savings can receive a 40% capital rebate, capped at €80,000. For such projects, up to €10 million is allocated for the Latgale region.
Within the scope of the project, support will be available for the preparation of technical documentation, construction works on the building’s enclosing structures and shared spaces, renovation, reconstruction, or installation of engineering systems, procurement and installation of micro-generation energy production equipment (e.g., solar panels, collectors), construction supervision, project management, and other activities related to project implementation.
The new program offers simplified application procedures, as the capital rebate can be reserved by submitting an energy certificate and a cost summary. Applications can be submitted with a “simplified” energy certificate based solely on measured energy efficiency data (e.g., meter readings). This document is significantly less expensive and faster to prepare than the energy certificates required so far.
Under the ESCO program, energy service companies can act as intermediaries and project managers, providing project implementation management, securing financing, and achieving project objectives, but will not perform energy efficiency improvement works themselves.
ALTUM plans to begin accepting project applications under this support program in the coming months. To explain the application process and conditions and assist with application preparation, ALTUM will hold an informational seminar about the new program in February 2025. Follow updates on ALTUM’s website.
Since 2007, 1,367 buildings have been renovated with EU co-financing, totaling €279 million. Under the Recovery Fund, 166 project applications have been submitted, amounting to €57.28 million in funding.
Detailed information about the new support program is available on the Unified Legal Act Portal.