Laura Kloch - expert at the European Funds Competence Centre of Bank Millennium.

Progressive technological development allows us to create solutions for the implementation of investment projects in the area of broadly understood energy efficiency, including, i.a. changing the sources of energy used to more ecological ones. Every innovation requires financial outlays. European Funds help finance solutions that will enable integration of innovations into the company's operations.

One of the competitions is the Ecological Loan designed for green investment projects and financed under the Operational Programme European Funds for the Modern Economy (FENG) for 2021-2027. The objective of this measure is to support solutions for energy efficiency and reduction of greenhouse gas emissions. Through modernisation of infrastructure, including investments in new or improved products or processes, the programme contributes to the transformation increasing energy efficiency of companies.

Entrepreneurs from the micro, small and medium-sized enterprises sector (employing up to 250 employees) and entrepreneurs from the category of small mid-cap companies (employing up to 499 employees) and mid-cap companies (employing up to 3000 employees) can apply for support under the competition.

The co-financing may cover expenses intended for the implementation of an ecological investment:

• acquisition of fixed assets,
• acquisition of works and building materials,
• acquisition of intangible assets, in the form of patents, licenses, know-how and other intellectual property rights,
• instalments under the leasing agreement,
• studies, expert opinions, concepts, and technical designs made by external consultants related to the implemented project.

Support in the form of grants is an ecological premium enabling the reimbursement of the capital part of the Ecological Loan intended to cover up to 25% to 80% of the eligible costs incurred by the entrepreneur for the implementation of the investment.

There is no minimum amount of eligible expenditure, while the maximum value of eligible expenditure per project may total up to EUR 50 million.

The key element of the application in the competition is to conduct an energy audit and/or an energy efficiency audit, which will indicate the scope of investment eligible for support. On its basis, the scope of the project is determined. If the audit document shows that the thermal modernization of the building is not justified (e.g. the building is new or recently renovated and meets all standards/requirements), then the scope of the proposed works may not include thermal modernization of the building. In such a situation, the project may include other elements, e.g. replacement of machinery/equipment with more energy-efficient ones or purchase of RES installations generating energy exclusively for the needs of the applicant. Regardless of the scope of the works, it is mandatory to meet the requirement of minimum 30% of primary energy savings as a result of the investment. Please note that only the renovation or adaptation of an existing building to increase its energy efficiency is eligible for this competition. Building or extension of property will not be eligible for the programme.

An attractive solution for entrepreneurs is the use of renewable energy sources. In the case of investment projects assuming inclusion of photovoltaic installations, the recommendation for their use must result from the audit document and take into account the electricity generation capacity of the installation only for the applicant's own needs to the extent corresponding to the demand for the implementation of the processes of a given enterprise.

At the application stage, a credit decision in principle should be obtained from the banks lending in the competition, to which Bank Millennium belongs. The intermediary institution in the competition is Bank Gospodarstwa Krajowego to which applications should be addressed.

In 2023, one competition is scheduled from 13 June to 17 August. The inclusion of only one enrolment in this year's round results from the amended state aid regulations published by the European Commission on 30 June this year. These rules require intermediate bodies to apply a six-month transitional period for the implementation of the new guidelines. The next enrolment call is scheduled for 2024 from 25 April to 25 July. The total of the competition which can be used for entrepreneurs co-financing will amount to PLN 660 million similar to this year.

Ecological Loan is a very attractive measure in terms of the form of financing and the scope of eligible costs, the first offer of this type was included in the catalogue of competitions of the new financial perspective. We will still have to wait for the effects, because the results of the competition will most likely appear at the end of the year.

More information at our website:

www.bankmillennium.pl/przedsiebiorstwa/produkty/finansowanie/kredyty/kredyt-ekologicznylink otwiera się w nowym oknie