On 14 and 15 November, a thematic seminar on financing energy efficiency (EE) and renewable energy sources (RES) projects was held in Vilnius, Lithuania, organised by the Fi-compass unit, the Directorate-General for Regional and Urban Policy (DG Regio) of the European Commission and the European Investment Bank (EIB). The emphasis was on the possibilities of combining financial instruments combined with grants and presenting the successful experience of the Baltic States in this area. The seminar was attended by over 60 representatives of managing authorities, holding funds and funds implementing financial instruments in support of EE and RES.
Representatives of FLAG and the Fund for Sustainable Urban Development took part in the event, having the opportunity to gain practical insight into the implementation of financial instruments combined with grants in the form of technical support, interest subsidy or capital discount, which help promote EE and RES projects. Based on the experience with blended financial instruments in Lithuania, as well as in other Baltic countries, the seminar offered a wide range of opportunities for exchange and sharing of good practices with experts implementing financial instruments with funds from the Cohesion Policy and the Recovery and Resilience Facility, including through the REpowerEU initiative, which aims to reduce Europe's dependence on fossil fuel imports from Russia and accelerate the green transition in Europe.
Iva Petkova, Director of the Urban Development Funds Department at FSUD, took part in the panel "Using EU funds to increase investments in energy efficiency", together with representatives from the EIB, financial institutions and funds from Lithuania, Portugal and Poland. The presentation shared the experience of the FLAG Fund, established 15 years ago as an instrument of state policy for regional development with public resources, attracting private from international financial institutions and Bulgarian commercial banks. Emphasis was placed on the management of financial instruments for urban development under the JESSICA initiative, as well as on the broader partnership with UBB under the Sustainable Cities Fund, managing funds for financial instruments for Sofia and Southern Bulgaria under OPRD 2014-2020.
The Bulgarian Investment and Coordination Platform, implemented with EIB financing, was given as a successful example and an opportunity to support public projects for EE and RES. The structuring of a targeted financial instrument for the transition to clean energy of public authorities - FLAG-FICET, uses the accumulated knowledge and lessons learned from previous instruments managed by FLAG. The provision of free technical support for the preparation of projects for the transition to clean energy of public authorities is expected to have a stimulating effect for the larger-scale deployment of similar investments following the example of the Baltic States. The main obstacle to the wider use of financial instruments for EE and RES is the implementation of schemes with 100% grants, with such schemes being the exception in most European countries and aimed at socially disadvantaged and energy poor end recipients.
