Modernisation fund

March 2024

On March 13, 2024, the European Investment Bank (EIB) confirmed the Scheme of state aid from the Modernization Fund resources to support investments for the production of heat and/or cold from renewable energy sources, the production of renewable hydrogen and highly efficient cogeneration SA.113093 (scheme for the heat production from RES) as a priority investment. The first payment for the mentioned scheme will be paid by the EIB to the Slovak Republic in the amount of 35 million EUR in May 2024 and the publication of the call is tentatively scheduled for the second half of 2024.

The estimated budget of the scheme for the heat production from RES for the period 2024 - 2026 is EUR 350 million. The estimated annual budget for the implementation of this scheme is EUR 117 million.

Text of the scheme

On 11 October 2022, the European Investment Bank confirmed the state aid scheme for decarbonisation of industry (SA.102388) as a priority investment. Funds from the MoF will be paid by the EIB to the Slovak Republic for this priority investment as follows:
- 350 million EUR in the first disbursement to the State aid scheme SA.102388 which is aimed at supporting decarbonisation and energy efficiency measures in industrial facilities that do not prolong the use of solid fossil fuels, which will lead to a significant reduction in greenhouse gas emissions, the gradual phasing out of fossil fuels, better energy efficiency, as well as a just transition in carbon-dependent regions.

The intention of the scheme is to contribute to the reduction of greenhouse gas emissions by supporting industrial decarbonisation projects that will lead to primary energy savings, a reduction in final energy consumption and introduce the use of advanced environmental technologies in industrial production, thus directly supporting the achievement of national, European as well as global climate goals according to the Paris Agreement. Text of the scheme.

The Environmental Fund published a call for the heating industry prepared under the State aid scheme from the Modernization Fund to support investments in the modernization of energy systems, including energy storage and energy efficiency improvement, on its website on July 27 2022. For more details see:
https://envirofond.sk/modernizacny-fond/

Modernisation fund - Confirmation of priority investments

On 12 October 2021, the European Investment Bank confirmed the State aid scheme for district heating and the State aid scheme to support the production of electricity from renewable energy sources as priority investments.
The amount of the resources from the Modernisation Fund specified in the Disbursement decision of the Commission will be paid to the Slovak Republic to each investment confirmed as a priority investment by the EIB as follows:

• 149,5 million EUR in the first disburstment to the State aid scheme for district heating (SA.63411). The scheme aims at improving of energy efficiency, modernizing of energy systems, including district heating or district heating (DH), energy storage and smart grid solutions heat, to increase the share of electricity and heat produced by high-efficiency combined heat and power (CHP) plants. The indicative amount of expenditure planned under this scheme for the period 2021-2030 is EUR 1 billion. EUR. The Granting Authority is the Ministry of the Environment of the Slovak Republic and the Implementing Authority is the Environmental Fund. The scheme text (PDF, 1 MB).
• 20 EUR million in the first disburstment to the State Aid Scheme to support the production of electricity from renewable energy sources to support investments in facilities for the generation of electricity from renewable energy sources (RES) in order to increase the share of RES in gross final energy consumption in Slovakia. The Granting Authority is the Ministry of the Environment of the Slovak Republic and the Implementing Authority is the Ministry of Economy of the Slovak Republic. The estimated average annual volume of funds from the Modernisation Fund for the implementation of this scheme is 40 mil. EUR. The indicative amount of expenditure planned under this scheme for the period 2021 - 2030 is 400 mil. EUR. The scheme text: (PDF, 1,05 MB)

Submission of indicative investment proposals for 2024-2025

The Ministry of the Environment of the Slovak Republic and the Ministry of the Economy of the Slovak Republic have prepared an indicative list of investment proposals that the Slovak Republic intends to support from the Modernisation Fund resources in accordance with Commission Implementing Regulation (EU) 2020/1001 to the Modernisation Fund in the next two calendar years. This indicative list was sent to the Modernisation Fund Team (the European Investment Bank and the European Commission) in November 2023.

The indicative list is available (PDF, 240 kB)

Investment strategy

In April 2021, the Ministry of the Environment of the Slovak Republic began preparing the document "Investment Strategy for the Modernisation Fund - Low Carbon Support Mechanism for the Period 2021 - 2030", which aims to set a transparent way of using MoF funds in the Slovak Republic, determine investment areas during the period 2021-2030 and to ensure a uniform procedure of selecting investments to be supported.

Investment plans of the Slovak Republic

Other investment areas that the Ministry of the Environment of the Slovak Republic plans to support in the coming years from MoF funds through state aid schemes or as individual projects are:

• replacing coal combustion in industrial energy and technologies, increasing energy efficiency and reducing greenhouse gas emissions in industry,
• heat production from RES,
• increasing energy efficiency in electricity production.