The proposals developed by the Ministry of Environmental Protection and Regional Development (MEPRD) project “Financial Instruments for the Promotion of Renewable Energy” (FIRESPOL) are included in the Operational Strategy of the Emission Allowance Auction Instrument in order to promote the development of renewable energy sector.
MEPRD interregional cooperation program Interreg Europe 2014-2020. Within the framework of the project “Financial Instruments for Promotion of Renewable Energy” (FIRESPOL) has developed a Latvian Action Plan for Promotion of Use of Financial Instruments for Renewable Energy (RES) (Action Plan ), which aims to contribute to more efficient use of available funding for RES development from grants to financial instruments, as well as to ensure the availability of financing for RES in the long run.
The task set in the Action Plan and the direction of further action envisages the inclusion of new financial instruments and financing mechanisms in the Operational Strategy of the Emission Allowance Auction Instrument (ECI) with the aim to use ECI financing more effectively to finance RES projects. in the form of financial instruments. Such a project financing mechanism would ensure the attraction of additional funding in the field of RES from the private sector and the sustainability of the provided support.
On June 7, 2021, the MEPRD's operational strategy was approved, which includes the proposals developed in the Action Plan for a new form of financing of RES projects that would be developed in the future, ie loan-oriented instruments, guarantees, venture capital investments or mixed financing (including both grant and thus mobilizing additional funding from the private sector for the sustainable development of RES, while contributing to climate change mitigation and adaptation.