Lorer: BGN 136 million will be allocated to companies improving their energy efficiency

Energy efficiency
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More than BGN 136 million will be allocated under the procedure for energy efficiency of enterprises, said at a briefing the Minister of Innovation and Growth Daniel Lorer. This will be done through the React-EU instrument. This measure will allow Bulgarian companies to improve their energy efficiency and reduce their electricity bills, which is very important in the current situation.

According to him, from BGN 25,000 to BGN 150,000 grants can be received by micro, small and medium enterprises in the manufacturing sector to reduce their costs for electricity, natural gas, liquid fuels or other energy sources. The funds are under a new measure, which will be implemented under the Operational Program „Innovation and Competitiveness“ at the Ministry of Innovation and Growth, the ministry announced.

They can be used to buy energy-saving fixed assets – machinery, equipment and modern systems, as well as to carry out construction and installation work. This will allow companies to reduce their energy bills and create conditions for their sustainable development.“, Lоrer said during the presentation of the procedure.

The Minister added that another BGN 41 million will be paid under the procedure for COVID aid to companies for the so-called large small companies. He pointed out that the first program to support enterprises within the framework of the Recovery and Sustainability Plan is also being worked on.

„By the end of June, the beginning of July, the first guarantee procedure under it is expected to start for“ Technological modernization of enterprises „with grant funding of nearly 260 million levs. Thus, the European funds that will be invested in the development of the economy under OPIC and the Recovery and Sustainability Plan in the next few months will be a total of about BGN 450 million.“, added Lorer.

Funding under the energy efficiency procedure announced today can be received by legal entities and sole traders registered under the Commercial Act and the Cooperatives Act. Mandatory condition is that the fiscal years 2018, 2019 and 2020 are over. The application will be entirely online – with an electronic signature in the UMIS 2020 system.

Documents will be accepted from 10:00 on May 3 to 16:30 on May 23, 2022, so companies will have 11 working days before the start date for the preparation of their project proposals,“ said Deputy Minister Karina Angelieva.

All submitted projects will be reviewed and evaluated. Funds will be paid to those approved in the order of their receipt and until the planned funding is exhausted. Energy efficiency projects must be completed within 10 months after the conclusion of the contract with the Operational Program.

Manufacturing companies are among the hardest hit by rising electricity and energy prices. At the same time, investments in the sector will have high added value for the country’s economy in the coming years. The new measure is not for liquidity support, but aims to encourage more companies to improve the environment, work and production process and optimize their costs. Therefore, a requirement for 50% own participation is set.

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