State aid: Commission approves over €1 billion support for high-efficient cogeneration of electricity and heat in Slovakia

(Credit: Unsplash)

This article is brought to you in association with the European Commission.

The European Commission has approved, under EU State aid rules, Slovak plans to support the production of electricity from high-efficient cogeneration installations connected to district heating networks in Slovakia.

Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “This over 1 billion Slovak measure will provide an important contribution to EU energy and climate objectives, without unduly distorting competition.”

The Slovak support measure

Slovakia notified the Commission of its plan to support combined heat and power (CHP) installations connected to district heating networks in Slovakia.

The scheme aims to: (i) increase or maintain high efficiency of existing high-efficient cogeneration installations; (ii) incentivise their switch from coal to natural gas or renewable sources; and (iii) stimulate investments in new high-efficient cogeneration facilities.

Slovakia will select the beneficiaries based on:

  • a multi-technology tender procedure for new installations with a capacity of 1 megawatt (MW) or higher;
  • an administrative procedure for small installations and existing installations. In this case the aid will be calculated based on the costs of producing electricity from those installations (levelised cost of energy – LCOE).

All selected installations above 250 kilowatt (kW) will receive aid in the form of a feed-in premium (i.e. the installation sells its output on the market and receives a top-up payment over the market price).

Installations below 250 kilowatts will receive a fixed feed-in tariff (i.e. a guaranteed price for the electricity produced).

The support will be granted for a maximum period of 15 years, and the overall budget of the scheme amounts to €1050 million (€70 million/year).

Coal-fired installations are not eligible to receive the support under the scheme.

The Commission’s assessment

The Commission assessed the measure under EU State aid rules, in particular, its 2014 Guidelines on State Aid for environmental protection and energy, which allow Member States to support high-efficient cogeneration under certain conditions, in order to stimulate energy savings.

The Guidelines notably provide that, in order to ensure that aid contributes to a higher level of environmental protection, support for cogeneration of heat and electricity must meet the “high-efficient cogeneration” criteria set out in the Energy Efficiency Directive. Slovakia demonstrated that the scheme is necessary to promote investments in high efficient cogeneration, which are not viable under current market conditions. Therefore, the Commission found that the measure is necessary, as the investments would not be carried out without the public support, and that the level of the support is proportionate to achieve that objective: it is set through an open competitive process for new large installations and does not exceed the LCOE for small installations and existing installations.

The Commission concluded that the scheme will support the production of electricity from high-efficiency cogeneration, in line with the EU energy and climate objectives, without unduly distorting competition in the Single Market. On this basis, the Commission concluded that the measure is in line with EU State aid rules.

For More Information

The non-confidential version of the decision will be made available under the case numbers SA.54318 in the State Aid Register on the Commission’s competition website, once any confidentiality issues have been resolved. New publications of state aid decisions on the internet and in the Official Journal are listed in the State Aid Weekly e-News.

the sting Milestones

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Europe should make voice ‘more heard’ in today’s ‘dangerous world,’ says UN chief

The revenge of the fallen

Syrian crisis is ‘clearest example’ of foreign investment in terrorism, Deputy Prime Minister says at UN

This Syrian national has been trapped at Kuala Lumpur airport for 3 months

European Commission calls on national political parties to join efforts to ensure free and fair elections in Europe

Back to the Basics: Primary Healthcare

Learning lessons from across Europe – the hidden costs of COVID-19 on lung cancer

Eliminating gender based bias in medicine: the role of medical students

MEPs propose more transparent legislative drafting and use of allowances

Out with the old: Young People transforming Humanitarian Action

Parliament adopts deal to improve quality of tap water and reduce plastic litter

Mergers: Commission clears acquisition of Eaton Hydraulics by Danfoss, subject to conditions

5 ways to #BeatAirPollution

Security spillovers from Trump’s trade wars: China, Germany prepare for global disorder

Iceland’s slowdown underlines the need to fix structural issues

Wirecard: MEPs call for new audit rules, protection for whistle-blowers and EU supervision

Why salaries could finally be on the way up

Estonia: use robust growth to improve income equality and well-being

More funds needed to counter ‘persistent and multi-faceted humanitarian problems’ in Ethiopia

EU prolongs economic sanctions on Russia by six months

New energy security framework will help meet growing needs in East Africa, sustainably – UN economic wing

Postal workers in France are helping elderly people fight loneliness

We are witnessing a revolution in genomics – and it’s only just begun

Why transparency in drug pricing is more complicated than it seems

COP21 Breaking News_04 December: Launch of CREWS, climate risk & early warning systems

Merkel: Nationalism and egoism must never have a chance again in Europe

More funding needed to combat locust swarms ‘unprecedented in modern times’

Global warming: our responsibility

Beware the fragility of the global economy

Commission provides 20 cities with funding for innovative security, digital, environmental and inclusion projects

WHO and UNICEF in campaign to protect 1.6 million in Sudan from cholera

Falling inflation urges ECB to introduce growth measures today

Why are the financial markets shivering again?

‘Great Pacific Garbage Patch’ clean-up project launches trial run: UN Environment

EU labour mobility: Inconvenient truths for everybody

European Parliament and Eurovision sign partnership for European Elections

EU attempts to make new deal with Turkey as relations deteriorate

Technophobe or technophile? We need more conversation about digital transformation

‘Emulate his example’ urges UN chief as world celebrates Nelson Mandela: a ‘global advocate for dignity and equality’

MWC 2016 LIVE: Qualcomm looks to pick up Hamilton’s winning ways

EP and EU ministers agree on Erasmus+ programme for 2021-2027

My experience living with depression and schizophrenia in Thailand

Building cybersecurity capacity through benchmarking: the Global Cybersecurity Index

3 ways to rebuild trust in how we regulate technology

First calls under Horizon Europe to be launched by the European Research Council

Philanthropy must face a reckoning on race in 2021

New UN finance panel to push Global Goals forward

Conditions deteriorating alarmingly in Yemen, warns senior UN official

Commission reinforces tools to ensure Europe’s interests in international trade

EU mobilises emergency assistance for Croatia in the aftermath of devastating earthquake

Commission concludes that an Excessive Deficit Procedure is no longer warranted for Italy at this stage

Better ID card security to curb document fraud

Can we automate our way out of the savings crisis?

5 lessons for the future of universities

Things are bad and getting worse for South Africa. Or are they?

This is why AI has a gender problem

Commission paralysed before the banking leviathan

The world must pull together to stem the urgent crisis in our ocean

Alice in Colombia

The recipe for creativity involves a lot of ideas, and a short break

More Stings?


Speak your Mind Here

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s