EU backs high-efficient cogeneration of electrical energy and warmth in Slovakia


Slovak plans to help the manufacturing of electrical energy from high-efficient cogeneration installations linked to district heating networks in Slovakia adjust to EU support rules, the European Commission’s antitrust chief mentioned on March 4.

“This over €1 billion Slovak measure will provide an important contribution to EU energy and climate objectives, without unduly distorting competition,” Commission Executive Vice-President Margrethe Vestager, in control of competitors coverage, mentioned.

According to the Commission, the scheme goals to extend or preserve excessive effectivity of present high-efficient cogeneration installations, incentivise their swap from coal to pure gasoline or renewable sources, and stimulate investments in new high-efficient cogeneration amenities.

Slovakia will choose the beneficiaries based mostly on multi-technology tender process for brand spanking new installations with a capability of 1 megawatt (MW) or greater and an administrative process for small installations and present installations. In this case the help shall be calculated based mostly on the prices of manufacturing electrical energy from these installations (levelised price of vitality – LCOE).

All chosen installations above 250 kilowatt (kW) will obtain support within the type of a feed-in premium, i.e. the set up sells its output in the marketplace and receives a top-up fee over the market value). Installations beneath 250 kilowatts will obtain a set feed-in tariff, i.e. a assured value for the electrical energy produced, the Commission mentioned, noting that the help shall be granted for a most interval of 15 years, and the general funds of the scheme quantities to €1050 million (€70 million/12 months).

The Commission mentioned it assessed the measure below EU State support rules, particularly, its 2014 Guidelines on State Aid for environmental safety and vitality, which permit Member States to help high-efficient cogeneration below sure circumstances, with the intention to stimulate vitality financial savings.

According to the Commission, the scheme will help the manufacturing of electrical energy from high-efficiency cogeneration, according to the EU vitality and local weather targets, with out unduly distorting competitors within the Single Market. On this foundation, the Commission concluded that the measure is according to EU State support rules.