Subsidy (Support of the Ministry of Infrastructure)
Updated: 14.02.2019
Author: Saša Rajković
The Ministry of Infrastructure of the Republic of Slovenia awards subsidies, state aid (regional aid, aid for small and medium enterprises) and “de minimis” aid through a scheme of state aids. Subsidies, state aid and “de minimis” aid for investment projects are awarded through tendering (§§ 1 ff., specifically § 24 RS 89/2008, § 316 EZ-1). Financial incentives for renewable electricity production are an integral part of the energy policy in Slovenia (§ 314 EZ-1). The specific tender document sets out the technologies to be supported, the tendering process and how the subsidy is paid. Tenders are launched on a regular basis (app. 2-3 Tenders per month). Currently, all tenders that would support investments into RES-E projects are awarded via state owned energy companies.
Eligible technologies
In general, all technologies are eligible for support (no exceptions are given in the legal documents) (§ 25 in conjunction with § 5 RS 89/2008).
The subsidy/state aid requirements are set out in detail in the specific tender document. Some tenders may mandate a specific technology
| Wind energy | Eligible. |
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| Solar energy | Eligible. |
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| Geothermal energy | Eligible. |
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| Biogas | Eligible. |
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| Hydro-power | Eligible. |
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| Biomass | Eligible. |
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Amount
The subsidies, state aid and “de minimis” aid are intended to cover some of the costs related to the use of renewable energy instead of traditional energy sources. Please note the following important information:
- Subsidies are subject to a maximum of 50% of the eligible costs of an investment project, state aid and “de minimis” aid grants are subject to a maximum of 30%. Exceptional projects may be awarded 40/50% of the costs (§10 and 20 of RS 89/2008).
- The maximum grant is defined in each specific tender (§ 29 par. 2 RS 89/2008).
Certain grants are subject to a maximum (e.g. € 50,000 for state aid and € 200,000 / € 100,000 for “de minimis” aid). In these cases, a report must be submitted to the Ministry of Finance.
Addressees
The beneficiaries of state aid are companies that intend to make an initial investment in energy efficiency, renewable energy and CHP projects as defined in § 5 (§ 6 RS 89/2008).
The beneficiaries of "de minimis" aid are companies that intend to carry out eligible investment projects as defined in § 5 RS 89/2008 or are requesting advisory services in the field of renewable energy use (§ 17 RS 89/2008).
According to § 26 RS 89/2008, the following entities are eligible for grants:
- For consulting services and projects in the fields of energy efficiency, renewable energy and CHP, as defined in § 5 of RS 89/2008: local communities which have adopted the local energy concept.
- For eligible investment projects as defined in § 5 RS 89/2008: households.
- For advisory services and investment projects in the fields of energy efficiency, renewable energy and CHP, as defined in § 5 RS 89/2008: all non-commercial public funds, public agencies, institutions, foundations and associations, registered churches and other religious communities.
Procedure
Process flow | Application. The specific tender document specifies the requirements for support. Applicants must submit a signed application form that comes with the tender document a full investment and financial plan and evidence that they have invested a certain amount of their equity in the project.
Award. Applications will be examined (§ 225 RS 50/2007) by a commission from the Ministry or by the financer according to the procedure set out in ZUP (§ 1 of ZUP) or in the tender itself. The commission decides on whether to grant a subsidy/aid or not using procedures set in RS 50/2007 respectively. The decision, including the reason for the decision, is submitted to the applicant (§ 226 RS 50/2007). Negative decisions are communicated by notice (§ 227 RS 50/2007).
Subsidy contract. The applicant shall sign a subsidy contract (§ 31 RS 89/2008, § 228 RS 50/2007) with the authority responsible for the payment of the subsidy (chapter 12 § 228 RS 50/2007). |
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Competent authority | Ministry for Infrastructure and Spatial Planning. |
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Distribution of costs
| State | The Republic of Slovenia provides the funds for the subsidy scheme (§ 1 RS 89/2008). In case of tenders run by state owned energy companies the burden accrues to the company (partially) itself. |
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Slovenia
