Planned support for renewable energy sources in Slovakia

15.12.2021
Company: Eversheds Sutherland, advokátní kancelář, s.r.o.

The Slovak Ministry of Economy has published details of the planned auctions and their conditions for the disbursement of funds from Slovakia's Recovery plan for renewable energy at a workshop.

1. General

The accompanying presentation is available in Slovak under this link: https://www.mhsr.sk/uploads/files/Xz5yrDl8.pdf. This is only preliminary information, and the Ministry would like to take into account any constructive comments. It is important that the conditions of the auctions are indeed realistic and can also be adhered to, so that the funds can be utilised in the given timeframe.

2. Deadline for Comments

The deadline for submitting comments ends on 15 December 2021. Comments should be sent to the following address: plan.obnovy.energetika@mhsr.sk

3. The most important points

A total of EUR 226 million is to be used up from the Slovak Republic's Reconstruction plan for energy projects by June 2026,

This support will be no longer operational support for renewable sources, but only investment support,

EUR 103 million is earmarked for new energy sources (all except hydro). It is expected that a total of 120 MW will be newly connected, with individual energy sources ranging from 10 kW to 50 MW,

The first auction is to be called as early as the end of March 2022, with a total amount of EUR 51 million. The next round with 51 million EUR is planned for spring 2023. The exact schedule will be announced in January 2022.

4. Basic Parameter of the Support

max. 60% of total costs (in Bratislava region only 45%),

max. 15 million EUR per project,

only up to the amount of the difference between the costs of the renewable sources and the reference technology - natural gas.

5. Evaluation of the Auction

Evaluation Criteria:
- 70% - cost-effectiveness,
- 20% - flexibility (for wind and sun sources, for example, a battery is desired),
- 10% - use of soil (if no soil, or no high-quality soil, is used, the project is rated better).

Conversion key for different technologies – expected subsidy amount per 1 MWh (table on page 11 of the presentation),

All requirements must be met from the environmental point of view (principle: "do no significant harm"),

Maximum amount of subsidy - 27 EUR/MWh.

6. Conclusion of the Contract and Subsequent Conditions

If successful, a contract will be concluded with the Ministry. If the following points are not fulfilled in the stated time, the funds cannot be disbursed:

within 6 months after the conclusion of the contract, the following must be submitted:
- Certificate of the Ministry of Economy on compliance with the Slovak energy policy,
- Confirmation of the start of the public procurement, if required,
- Confirmation on the initiation of the EIA procedure,
- Timetable for the fulfilment of the remaining conditions.

within 12-18 months after the conclusion of the contract, the following must be submitted:
- Result of the public procurement,
- Confirmation of the reserved capacity of the distribution company (network operator),
- Confirmation of the completion of the EIA procedure.

For more information please contact:
Annamária Tóthová, Partner Eversheds Sutherland Slovakia
annamaria.tothova@eversheds-sutherland.cz
www.eversheds-sutherland.sk

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