Overall assessment

Latvia will receive up to 300 million EUR from the Modernisation Fund. Investments will go to decarbonisation of non-ETS sectors. The priority will be given to zero-emission vehicles, energy efficiency and renewable energy promotion measures for commercial sector, modernisation of electric grids, renewable energy promotion in multi-apartment building as well as municipal and state buildings.

Detailed assessment

General: allocation, definition, transposition

Specific allocation for energy communities

For the period of 2023-2028 three priorities for investments under the Modernisation Fund have been selected. The third priority is the promotion of renewable energy production in multi-apartment buildings, municipality and state buildings, as well as energy communities: “Promotion of the use of renewable energy resources in multi-apartment buildings, state and municipal buildings, and energy communities, including support for the creation of infrastructure related to their operation.

Definition of energy communities in line with EU legislation

The open and voluntary participation for different types of stakeholders is not fully guaranteed. The recipients of support seemingly will not include single-family houses, small businesses, therefore the composition of participants in selected energy communities will be limited.

Proportionality of share of total fund allocated to energy communities

That level of detailed information is not available yet.

Availability of tailored financing tools

There are no different, tailored financing tools available that fit different situations (e.g., loans, guarantees, blended finance). Only grants are provided as a one time payment.

Link to a wider scope of activities and objectives

Link between energy communities, building renovation and energy efficiency

Not enough focus is given to the deep energy savings that energy communities can achieve. Building renovations are not identified as a top priority. Moreover, energy efficiency is not linked with energy communities.

Recognition of energy communities under multiple objectives

Energy communities are not recognised under multiple objectives (I.e., GHG reduction, energy savings, technological innovation, tackling energy poverty). Instead, they are linked only with the objective of 'renewable energy production'.

Transparency and inclusiveness

Holistic strategy to provide financing across different levels of project development

There exists no holistic strategy to provide financing across different levels of project development (i.e., facilitating grid acess, one stop shops, awareness raising & capacity building, pilot financing, administrative, business model and legal advice).

Transparency of the design and communication of the schemes and measures

An opportunity to provide feedback has been provided, but it is too early to assess the broader transparency of the program.

Selection criteria and the prioritisation of various social components

It is not yet clear how inclusive the selection criteria will be for projects to be funded under the Modernisation Fund.

Decentralised tender process

The programs are managed in a centralised manner.

Existence of procedures to facilitate the participation of energy communities in open calls

The process has not developed that far yet.

Stability and predictability of the programme through time

The process has not developed that far yet.