What are the main differences compared to SlovSEFF II?

The donor as well as the programme design has changed. The incentive payments are funded from the proceeds of the sale of carbon credits from the Slovak Republic to Spain, while Spain is financing the programme's technical assistance. SlovSEFF III will therefore focus in particular on financing renewable energy and industrial energy efficiency projects, to maximise the facility's greenhouse gas (GHG) emission reduction impact.

The following changes are a reflection of this change in focus:

  • The incentive payment for renewable energy and industrial energy efficiency projects will be based on their GHG emission reduction potential
  • In order to avoid double-counting of emission reductions, projects whose greenhouse gas (GHG) emissions are directly covered by the EU Emissions Trading System (EU ETS) will need to cancel an equivalent amount of EU allowances (EUAs) against a benchmark market price as a precondition to receive an incentive payment under SlovSEFF III
  • Projects may be subject to ex-post implementation verification, for example one year after project completion. 20% of the renewable and industrial energy efficiency projects may be subject to such ex-post verification
  • Minimum energy savings to be achieved in the residential sector have increased to 30%. The incentive payment mechanism remains unchanged, although the higher amount will only be payable in case energy savings amount to at least 40%
  • All borrowers will be required to provide the Slovak Innovation and Energy Agency (SIEA) with their energy generation/consumption and GHG savings for a period of 5 years after completion of the project, starting on or before the 30th of March following completion


Is it possible to combine SlovSEFF with EU structural funds?

Blending EU structural funds or any other grant funding is not compatible with SlovSEFF III.


Are energy efficiency measures in public buildings eligible for financing under SlovSEFF?

Eligibility for financing under SlovSEFF is restricted to private sector entities, including housing associations and cooperatives. Borrowers majority-owned or controlled by the Slovak Republic are not eligible. Financing for public buildings may be available under the MFF.


Are projects involving ESCOs in public buildings eligible for financing under SlovSEFF?

Privately owned ESCOs may be eligible for financing under SlovSEFF provided that the end-user of the energy service is not engaged in any of the activities listed on the Environmental and Social Exclusion and Referral List of the EBRD (including, but not limited to, companies engaged in the production, marketing, distribution (or similar activity) of tobacco products, hard liquor, gambling or arms). ESCOs are also to comply with the EBRD Concession and Procurement Policies (see EBRD Financing of Private Parties to Concessions).


Are housing associations, which have already realised some energy efficiency measures, eligible for financing under SlovSEFF?

Yes, provided the minimum level of energy savings (30%) can be achieved through the new investment.


How is the incentive payment calculated?

Renewable energy and industrial energy efficiency projects

For renewable energy and industrial energy efficiency projects, the incentive payment depends on the project's greenhouse gas emission reduction potential, measured in metric tonnes of carbon dioxide equivalent (tCO2e). This is calculated using a fixed crediting period and carbon credit price, and applying an Approved Carbon Methodology. The incentive payment is subject to a floor and a cap of 5 and 20% of the disbursed loan amount respectively. Please see incentive payment for more details.

Residential energy efficiency projects

The incentive payment for residential energy efficiency project is calculated as a percentage of the disbursed loan amount and depends on the project's total energy savings. The minimum level of energy savings to be achieved is 30%. Between 30% and 40% of energy savings, the incentive payment is equal to 10% of the disbursed loan amount. For energy savings of 40% and higher, the incentive payment will be 15% of the disbursed loan amount. For example, if the total project cost is €150,000, the client borrows €100,000 and the achieved savings are 35%, the incentive payment is 10% of the €100,000 of the loan (€10,000).


What is the maximum project size for financing under the SlovSEFF?

The maximum project size is €10 million for renewable energy projects, €5 million for industrial energy efficiency projects and €2.5 million for residential energy efficiency projects.


Is there a special condition for the project contractor selection?

No, it is up to the borrower to select their own project contractor.