VIPA has established an investment platform for financing sustainable projects together with the European Energy Efficiency Fund
UAB Viešųjų Investicijų Plėtros Agentūra (VIPA) invested in the limited partnership Tvariųjų Išteklių Plėtros Skatinimas (TIPS) (English: Promoting Sustainable Resource Development) together with the European Energy Efficiency Fund (EEEF) the main purpose of which is to finance sustainable investments, contributing to the mitigation of direct consequences of climate change.
The new investor EEEF has invested EUR 10 million in the sustainable projects financing platform, and VIPA has contributed another EUR 2 million to the fund’s capital.
“Public funds alone will not be enough for Lithuania to achieve ambitious goals in the field of energy and climate change. Therefore, I am delighted to see that VIPA has raised 10 million euros in private capital, and invested 2 million euros in this financing platform itself. This is a good example of how public funds can encourage private investors to get involved in the financing of renewable energy and energy efficiency projects of both public entities and private companies,” says Vaida Česnulevičiūtė, Vice Minister of Finance.
TIPS is a continuation of the investment platform established on the initiative of VIPA back in 2018, the activities of which were temporarily suspended due to the withdrawal of the sole investor AB Energijos Skirstymo Operatorius. Having found a new platform investor, both EEEF and VIPA will invest in the capital of TIPS, and will also carry out the functions of a platform manager.
“EEEF’s 10-million-euro investment allowed to raise a loan of EUR 12.5 million from the European Investment Bank, also investing our own EUR 2 million. We also plan to be able to fund a loan portfolio of more than EUR 37 million in the field of energy efficiency and renewable energy, contributing directly to the promotion of green energy,” says Gvidas Dargužas, CEO of VIPA.
Projects increasing renewable energy and energy efficiency will be funded from the funds of TIPS. Both public and private sector companies will be able to receive funding.
“By this agreement, VIPA and EEEF emphasize the need for cooperation supporting small and medium-sized investments, sharing their knowledge in the field of energy efficiency and renewable energy financing to create a sustainable investment portfolio in Lithuania,” says Lada Strelnikova, EEEF Investment Director.
EEEF is an investment company governed by Luxembourg law and founded by the European Commission in cooperation with the European Investment Bank. The European Commission, the European Investment Bank, Cassa Depositi e Prestiti, Deutsche Bundesstiftung Umwelt and the investment manager Deutsche Bank invested in the fund’s capital.