According to Ms G. Skaistė, the most significant new investment is jointly planned to focus on two areas: allocating EUR 1 billion for loans to business and industry and an additional almost EUR 700 million for electricity from renewable energy sources.
“The supplemented implementation of the plan “New Generation Lithuania” is important in the context of the current geopolitical reality. Therefore, we almost double the investment of the EUR 2.225 billion plan prepared in 2021 up to EUR 4 billion. New measures will not only contribute to the competitiveness of Lithuanian business promoting the integration into global green technology value chains, but will also strengthen our country’s energy independence through significant investment in green electricity production. I am convinced that supplement of the plan will significantly contribute to the necessary changes “, stressed the Minister of Finance.
According to experts, the new investment of the plan “New Generation Lithuania” over the period 2023-2027 will ensure faster growth of real gross domestic product (GDP) of 0.97 % on average, or EUR 4,92.5 million per year, while over the period 2023-2040 the new measures of the plan “New Generation Lithuania” will generate almost EUR 8.5 billion of additional GDP. It is estimated that every euro invested will bring the return of EUR 2.25 on real GDP.
The plan “New Generation Lithuania” is proposed to be supplemented taking into account the geopolitical situation, Lithuania’s new ambitions in the field of renewable energy, intensive discussions with social and economic partners, proposals from the Presidency and a new EC initiative REPower EU with a value of EUR 198.4 million.
Investment in industrial greening
The updated plan “New Generation Lithuania” creates a new long-term financing instrument of up to EUR 1 billion, which will provide more opportunities for business. A new financing mechanism for business will open up flexible opportunities that did not exist before. This is a new direction of public funding.
The mechanism will be issued as a financial instrument in the form of loans, so the funds will return. Access to finance will be open to companies of all sizes – small, medium and large. Business, which seeks to implement the EU Green Deal in industry from its own investment, ensuring circularity, decarbonisation and energy efficiency, also implements environmentally friendly, low-waste and advanced and digital technologies, ensuring the production of high value added and low CO2 footprint products and the development of their export, will be eligible for financing. In addition, the opportunities are offered to get investment loans for the development of products in the defence and security industries, development of innovation in these areas. This will help create both well-paid jobs and ensure long-term sustainable economic growth in Lithuania.
The financial instrument is constructed in such a way that the State through the National Development Agency (Investicijų ir verslo garantijos Ltd. (INVEGA) finances the projects together with the private sector, thus ensuring that the funded projects are return generating and economically justified.
Additional investment for priority areas
In the face of current challenges, we double our ambition and by 2030 we aim to produce all the electricity needed by the State from renewable energy sources. Therefore, taking advantage of the supplement of the plan “New Generation Lithuania” the implementation of the 1 gigawatt (#1gigavatolaisvei) project will be accelerated. This is a project that will not only fight against climate change component, but also brings Lithuania closer to energy independence.
russia’s war against Ukraine has seriously disrupted the global energy system. Since local electricity generation in Lithuania ensures only about a third of the country’s electricity demand, Lithuania is accelerating investment in electricity production from renewable sources. Therefore, a significant share of the “New Generation Lithuania” loans and grants (almost EUR 700 million) is directed to the energy sector, ensuring Lithuania’s energy independence.
Funding for the development of renewable energy sources is planned to be allocated to three target groups: legal entities (business), renewable energy communities, especially those facing energy poverty and municipalities and central government. About 90 % of these funds will be allocated to solar power plants, as well as an opportunity to invest in onshore wind power generation and, if necessary, to purchase an energy storage facility, will be provided.
The supplemented plan “Next Generation Lithuania” foresees other additional investment for renovation of buildings and strengthening the State’s cybersecurity.
