Industrial energy efficiency


This category includes projects involving equipment, systems and processes that enable the reduction of primary energy consumption, final consumption of electricity, fuels or other forms of energy used for:

  • The production of goods and/or provision of energy services auxiliary to the production of goods
  • The provision of services directly related to the industrial sector


Examples are:

  • On-site natural gas, biogas or biomass fired co-generation of heat and electricity
  • Fuel switch projects from high (coal, lignite) to low carbon intensive fuels
  • Rehabilitation of boilers (enhanced controls, economisers, improved insulation, regenerative burners, automatic blow-down, etc.)
  • Replacement of old gas boilers with condensing boilers
  • Switch from electricity heating to fuel based direct heating
  • Process improvements including enhanced controls
  • Rehabilitation of steam distribution systems: installation of steam traps, increased condensate recovery, etc.
  • Installation of heat recovery from processes (e.g. installation of economisers for pre-heating purposes, heat recovery for space heating, heat recovery for drying)
  • Installation of absorption chillers
  • Installation of Variable Speed Drives on selected electric motors
  • Rehabilitation of compressed air / distribution systems (e.g. decentralisation and/or resizing of air compressors, replacing of old air compressors with new efficient ones)
  • Rehabilitation of power distribution systems (e.g. replacement of old or oversized transformers, installation of capacitors to reduce reactive power consumption)
  • Implementation of Energy Management Systems or Building Management Systems
  • Implementation of energy saving measures in the built environment (e.g. insulation of walls, roofs and floors; installation of rolling doors; installation of new windows; installation of new heating and ventilation systems; installation of high energy efficiency lighting)
  • Electric or CNG fuelled vehicles

The maximum Sub-loan amount is 5 million. The minimum Internal Rate of Return required is 8%, excluding the incentive payment.

The incentive payment, or the Carbon Reduction Compensation (CRC), may vary in between 5 – 20% of the disbursed loan amount. The calculation of the CRC depends on the amount of greenhouse gas emissions avoided as a result of the investment. Investment projects that directly affect an installation’s emissions covered by the EU Emissions Trading System (EU ETS) may apply for a carbon Price Guarantee Mechanism (PGM), see incentive payment calculation . This would involve the cancellation of an equivalent amount of EU allowances at a benchmark market price in respect of which the PGM is paid, so to avoid double-counting of emission reductions.


Reporting to SIEA

Industrial energy efficiency projects are required to report their energy consumption by source as well as GHG emission reductions achieved as a result of the investment on an annual basis to the Slovak Innovation and Energy Agency (SIEA) for a period of 5 years after project completion. The reporting template is available here. Borrowers will be assisted to comply with this procedure.