Summary of RES Support Schemes in Slovakia GBE Factory Training Session 17.7.2013, Michalska 7, Bratislava
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Summary of support schemes • Feed-in tariff - grid operators are statutorily obliged to purchase and pay for electricity from renewable sources • Subsidies - subsidies from the European Structural Fund
• Tax regulation mechanisms - exempt from excise tax
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Feed-in tariff • Consists of two parts: 1) the price of electricity for losses (market price) paid for all electricity supplied from RE facilities up to a support limit of 125 MW;
2) a surcharge - billed by the plant operator for the electricity generated, less the internal technological consumption of electricity.
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Eligible technologies o All renewable electricity generation technologies are eligible. o Plant capacity is limited: • Max 125 MW of total installed capacity. • For the additional payment: • Max 10 MW of total installed capacity; • Max 15 MW of total installed capacity for wind energy plants.
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Summary of eligible technologies Wind energy Solar energy
Eligible Eligible On 1 February 2011, an amendment of the RES Act entered into force. This amendment abolished the state aid scheme for PV plants of more than 100 kW put into operation after 1 February 2011.
Geothermal energy Biogas Hydro-power Biomass
Eligible Biogas, landfill gas, sewage gas and bio-methane are eligible Eligible except electricity generated by pumped-storage facilities Eligible
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Procedure I. • Competent authority: Regulatory authority URSO • Process flow: Agreement on electricity supply to cover losses in the distribution grid ďƒ˜ The distribution grid operator is obliged to take all electricity entitled to the price for electricity to cover grid losses
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Procedure II: • The RES plant operator must have: ▫ a licence to produce electricity issued by URSO; ▫ a pricing decision on the amount of the feed-in price; ▫ separate metering of RES-produced electricity via a certified meter.
Based on the amount of electricity measured, the plant operator submits information on electricity production to the distribution grid operator and invoices that amount.
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Amount • The amount of tariff differs according to the source of energy used • The amount of tariff is calculated by the regulatory authority URSO
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Degression I. • The feed-in tariff applicable in the year in which a given plant is put into operation applies for the entire obligation period; • The tariff levels may increase acc. to the increase in the raw materials prices; • 3 year guarantee on the feed-in tariff for new plants, not to be lower than 90% of the tariff previously applicable (not for PV and wind energy plants put into operation after 1 February 2011).
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Degression II. • The tariff level will decrease if the project is cofunded by the government ; • The tariff level will not be subject to reduction where the government grant was used for measures to achieve the required emission limits.
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Tariffs commissioned after 1 January 2012 Wind energy Solar energy Geothermal energy Biogas
€ct 7.929 per kWh Roof-top or facade-integrated plants of up to 100 kW €ct 11.911 per kWh
€ct 19.051 per kWh According to the type of biogas used €ct 9.308 - €ct 14.987 per kWh
Hydro-power
According to the generating capacity of the plant €ct 10.908 - €ct 6.172 per kWh
Biomass
According to the type of biomass used €ct 11.224 - €ct 17.1 per kWh
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Obligation period • 15 years ; • entire lifetime of the plant if total installed capacity does not exceed 1 MW.
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Subsidy I Operational Programme Competitiveness and Economic Growth • Measure 2.1 – "Increasing efficiency in energy production and consumption and providing progressive energy technologies„
Grants are awarded through calls for applications under either the de-minimis scheme or the state aid scheme.
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Minimum and maximum amounts • De-minimis scheme: • The subsidy between EUR 20,000 and EUR 200,000; • Eligibility period 24 mnts. • State aid scheme: • The subsidy between EUR 60,000 and EUR 6 m; • Eligibility period 24 mnts; • Central Slovakia and Eastern Slovakia, the total amount of both schemes shall not exceed 50% of the eligible project costs; • Western Slovakia it shall not over 40%.
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• Subsidies are paid on a regular basis and only after the applicant has submitted a financial report that provides evidence of the eligible investments.
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Addressees • Entitled party: - micro, small and medium enterprises registered within the territory of the Slovak Republic; - regions of the Slovak Republic whose GDP does not exceed 75 % of the EU average; - large enterprises with no more than 1,000 employees and annual turnover below EUR 50 m.
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Procedure I • Call for applications published by the Ministry of Economy • Application: • De-minimis scheme • State aid scheme • Selection process: • submission of an application to the SIEA • Acceptance • Registration • Approval: • The applications are checked for formal compliance; • The applications are assessed by an expert; • Applications are selected.
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Procedure II • Contract: The SIEA concludes subsidy agreements with successful applicants. • Payment: Either on a regular basis after the applicant submitted evidence of the eligible investments or in the form of a once-only grant after the project.
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Distribution of costs State
15 % of the total amount
European Union
European Regional Development Fund (ERDF) Âť 85 % of the total amount
Distribution mechanism
Ministry of Economy Subsidies awarded under the Operational Programme Competitiveness and Economic Growth National public funds of (approx. EUR 136 m), managed by the Ministry of Economy.
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Subsidy II Operational Programme Bratislava Region • Measure 2.1. "Innovation and technology transfer“
During 2012, there are no calls for applications planned for Measure 2.1. The Operational Programme ends in 2013.
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Tax regulation mechanisms (exemption from excise tax) • Competent authority: Local tax office • The use of renewable energy is encouraged by exempting it from an excise tax; • All renewable electricity generation technologies are eligible; • The amount of tax relief is equal to the amount of tax entitled persons are exempt from » the amount of tax is calculated on the basis of the amount of electricity in kWh and the corresponding tariff (€ct 0.132 per kWh since 1 January 2010).
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Addressees • Entitled party: Every legal entity or natural person entitled to use tax-exempt electricity is entitled to the tax relief . • Interested parties shall submit a separate application for the use of tax-exempt electricity.
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Procedure • Application: writing application to the customs authority for registration; • Persons that intend to use tax-exempt electricity they produce themselves shall have an independent reception device that receives taxexempt electricity only. • Assessment • Registration
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Law references • • • • • • • • • • • • • •
Chapter I no. 3 Scheme DM 7/2008 Chapter I no. 1 Scheme DM 7/2008 Chapter I no. 3 Scheme XR 63/2008 Chapter I no. 6 Scheme DM 7/2008 Chapter I no. 7 Scheme XR 63/2008 Chapter E Scheme DM – 7/2008 Chapter E Scheme XR 63/2008 Chapter L no. 1 Scheme DM 7/2008 Chapter M no. 1 Scheme XR 63/2008 Chapter L no. 4 Scheme DM 7/2008 Chapter M no. 4 Scheme XR 63/2008 Chapter L no. 7 Scheme DM 7/2008 Chapter M no. 7 Scheme XR 63/2008 Act 609/2007 of excise duty on electricity
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Vratislav Koška vrato.koska@gmail.com