The European Investment Bank supports the implementation of energy efficiency projects in Lithuania

The European Investment Bank (EIB) granted a loan of EUR 12.5 million to the Energy Efficiency Financing Platform established by Viešųjų Investicijų Plėtros Agentūra (VIPA) (English: Public Investment Development Agency) and Energijos Skirstymo Operatorius (ESO). This instrument allows legal entities to get loans to increase energy efficiency and develop solar power plants. The aim of the Energy Efficiency Financing Platform is to provide financial services, implement and administer financial instruments for the development of energy efficiency projects and measures in Lithuania that have an impact of reducing final energy consumption.

Lithuanian companies will have more opportunities to implement measures to increase energy efficiency, while residents will be able to become energy producers and consumers themselves. New opportunities to receive financing for such projects will help to improve energy efficiency in the private and public sectors, thus reducing energy dependence on external energy sources and contributing to the resolution of the challenges posed by climate change.

Funding for these projects will also be supported by a contract signed by VIPA and the EIB, based whereon the first Energy Efficiency Financing Platform managed by VIPA has been granted the first portion of the loan totalling EUR 12.5 out of the total planned amount of EUR 25 million.

“EIB’s experience, first of all in the implementation of the JESSICA initiative in Lithuania, shows that pursuing energy efficiency is definitely beneficial”, Alexander Stubb, Vice President of EIB, says. “It often doesn’t even come to our minds, but renovating buildings or installing more efficient lighting can have a significant impact on our energy consumption. I believe that the activity of this platform will not only improve the quality of life and reduce costs to the population, but will also provide an opportunity to raise the issue of increasing energy efficiency in discussions on climate change held nowadays.”

The project is also supported by the European Fund for Strategic Investments (EFSI), as the EIB loan will be used to support the Energy Efficiency Financing Platform, thus seeking to promote and finance energy efficiency modernization projects throughout Lithuania and to reduce CO₂ emissions and energy bills.

EU Commissioner Vytenis Andriukaitis said: “It is very important that we focus our everyday environment and business on the 21^st century when it comes to the problems caused by greenhouse gas emissions. I am very pleased that the Juncker Plan contributes to the activities of the first energy efficiency financing platform in Lithuania. I hope that the projects financed by this platform will not only help Lithuania achieve its sustainability goals, but will also be noticeable to ordinary consumers, who will have reduced energy bills. It’s a win-win situation for all the parties.”

VIPA established the limited partnership the Energy Efficiency Financing Platform together with ESO. EUR 12.5 million granted by EIB is one of the sources of financing of the platform. The platform is also expected to attract more investors.

“We expect the development of the platform to further encourage Lithuanian companies to create a sustainable future through the implementation of environmentally friendly energy production and energy efficiency projects. It will help to ensure energy independence of our county, accelerate the development of innovations and increase competitiveness”, – says Mindaugas Keizeris, Chairman of the Board and CEO of ESO.

Funds of the Energy Efficiency Financing Platform will be used to finance the installation of measures reducing energy consumption in industrial companies, projects of the public and transport sector. The platform will grant access to project financing from funds of both Lithuanian investors and international financial institutions.

“We are very happy about our partnership with EIB and ESO in expanding the possibilities of the Energy Efficiency Financing Platform and want to invite all legal entities to join in the implementation of energy efficiency project in Lithuania and to submit applications to the Energy Efficiency Financing Platform for loans designated for increasing energy efficiency and for generating consumers” - says Gvidas Dargužas, CEO of VIPA. 

Additional information

About VIPA: the Private Limited Liability Company Viešųjų Investicijų Plėtros Agentūra (English: Public Investment Development Agency) (VIPA) is a financial institution established by a resolution of the Government of the Republic of Lithuania, which has the status of a national development agency.

The goal of our operations is to fund projects of national importance which the market needs and / or those with limited or non-optimal funding. VIPA grants loans, guarantees for repayable investments or implements similar measures financed from national, European Union and other financial assistance programmes or sources of financing (e.g. European Investment Bank or other international financial institutions). Through managed funds and financial initiatives, VIPA has successfully contributed to mitigating climate change and increasing energy efficiency in public infrastructure (or public interest) facilities.

About the EIB: the European Investment Bank (EIB) is an independent, long-term lending institution set up by European Union members to provide loans and guarantees for investment projects. It focuses on small and medium-sized enterprises (SMEs), having allocated more than EUR 1.1 billion in loans and guarantees for their projects in the energy, transport and service sectors in the last 5 years.

About EFSI: This agreement has been made possible by the support of the European Fund for Strategic Investments (EFSI). The EFSI is a tool of the European Investment Plan known as the "Juncker Plan". EFSI support enhances the EIB Group’s possibilities to finance investment projects that increate EU competitiveness and create new jobs according to the Juncker Plan criteria. The Juncker Plan focuses on stimulating investments for jobs and growth, rational use of new and existing financial resources and forms, removing barriers to investment and providing technical assistance for project implementation.

About ESO: AB Energijos Skirstymo Operatorius (ESO) distributes electricity and gas, maintains distribution networks, installs smart solutions in them to ensure reliable and efficient networks, fixes malfunctions and connects new customers. By effectively managing its infrastructure, the Company aims to enable competition in the energy market. ESO also is a guarantee supplier of electricity and gas ensuring uninterruptable energy supply to domestic consumers. The Company looks after more than 125 000 km of overhead electricity and cable lines, and operates more than 9 000 km of gas distribution pipelines. 

Contact persons for inquiries:

VIPA: Žilvinas Kačiuška, tel. 8 5 203 46 61, e-mail: z.kaciuska@vipa.lt

EIB: Tim Smit, tel. +352 691 286423, e-mail: t.smit@eib.org

ESIF: Siobhan Millbright, tel. +32 0 229 57361, e-mail: siobhan.millbright@ec.europa.eu

ESO: Valentas Neviera, tel. 8 670 25997, e-mail: valentas.neviera@ignitis.lt