VIPA and eeef join forces to invest in sustainable projects in Lithuania
In order to promote the financing of energy efficiency and renewable energy projects, the Public Investment Development Agency (VIPA) of Lithuania, together with the European Energy Efficiency Fund (eeef), agreed to set up "Sustainable Resources Development" platform, which focuses on the financing of sustainable investments contributing to the direct effects of climate change mitigation.
“Only public money will not ensure that Lithuania meets its ambitious energy and climate change targets. That is why I am delighted that VIPA has raised 10 million EUR of private capital and invested 2 million EUR in this platform. This is a good example of how public funds can encourage private investors to get involved in financing renewable and energy efficiency projects, both in public and private sectors”, says Vaida Česnulevičiūtė, Vice-Minister for Finance.
The Investment platform is a continuation of the Energy Efficiency Financing Platform, jointly established by VIPA and Energy Distribution Operator (ESO) on 3 July 2018, which was temporarily suspended. eeef will replace ESO as a new investor, the capital contribution to the Investment platform will be not only from the eeef, but also from VIPA, which will also act as the investment platform manager.
"With an investment of 10 million EUR from the eeef, our own investment of 2million EUR and further capital from the lenders we expect to be able to finance a loan portfolio of more than 37 million EUR in the field of energy efficiency and renewable energy, contributing directly to the promotion of green energy", says VIPA CEO Gvidas Dargužas.
The platform will finance renewable energy and energy efficiency projects. Projects in the public and private sectors will be eligible for funding.
“With this agreement VIPA and eeef emphasize a need for a collaborative approach in supporting small to medium scale investments, we combine our know how in energy efficiency and renewables financing to build a portfolio of sustainable investments in Lithuania”, says Lada Strelnikova, eeef Investment Manager.
VIPA is a national promotional institution established by the Government of the Republic of Lithuania, which operates in the fields of development of urbanized or urbanizing areas, housing and renovation and development of public or public interest infrastructure, and promotion of energy efficiency.
The European Energy Efficiency Fund (eeef) S.A., SICAV-SIF is a “societé d’investissement à capital veriable” governed by Luxembourg law and was initiated by the European Commission in cooperation with the European Investment Bank. The capitalization is provided by European Commission, European Investment Bank, Cassa Depositi e Prestiti, Deutsche Bundesstiftung Umwelt, as well as the Investment Manager, DWS.