Subsidy I (Operational Programme Entrepreneurship and Innovation for Competitiveness 2014-2020 – OP PIK)

Updated: 10.01.2019

Author: Boris Valach

The Operational Programme “Entrepreneurship and Innovation for Competitiveness” (OP PIK) allocates investment grants for small, medium and large companies in the amount of CZK 0.25 million to 100 million (approx. € 9,600 to 3.8 million). Renewable energy projects are eligible under Priority Axis 3 “Efficient Energy Management, Development of Energy Infrastructure and Renewable Energy Sources, a nd Support on Introduction of New Technologies in the Area of Energy and Secondary Raw Management”, namely Investment Priority 1 “Supporting the Production and Distribution of Energy from Renewable Sources”. For the Specific Target 3.1, a share of 1.23% of OP PIK’s total budget (approx. €  4.6 billion) has been allocated (1.2 OP PIK).

The programme supports the construction or reconstruction of electricity or heat generating plants, for which the energy produced is primarily intended for distribution rather than own consumption. The quality and usefulness of the project with regards to its environmental benefits and economic effectiveness are decisive in the project’s evaluation and selection (Specific Target 3.1, 2.A.6.1 and 2.A.6.2 OP PIK). 

Eligible technologies

Eligible technologies under the Specific Target 3.1 are biomass, biogas and hydro power. However, in the case of biomass and biogas, the priority is given to the promotion of combined heat and power (CHP) with a maximum installed capacity of 10 MW (Specific Target 3.1, 2.A.6.1 OP PIK).

Hydro-power

Eligible for support is the construction, reconstruction or modernisation of small hydro power plants up to 10 MW (Specific Target 3.1, 2.A.6.1 OP PIK).

Amount

Companies may receive investment grants between CZK 0.25 million – 100 million (approx. € 9,600 – 3.8 million). The amount of the subsidy depends on the size of the company, and on the supported energy source (Specific Target 3.1, 2.A.6.3 OP PIK). The amount of the subsidy in the case of measures relating to small hydro power plants, CHP from biomass and biomass heating stations is set as follows:

  • Small company (up to 49 employees): 80% of eligible expenses.
  • Medium-sized company (50 – 249 employees): 70% of eligible expenses.
  • Large company (250 employees and more): 60% of eligible expenses.

Addressees

Eligible party: The subjects eligible for subsidies are small, medium-sized and large enterprises. Projects must be implemented outside the territory of the City of Prague (Specific Target 3.1, 2.A.6.1 OP PIK). 

Obligated party: The party obligated is the Ministry of Industry and Trade (Specific Target 3.1, 2.A.6.2 OP PIK).

Procedure

Process flow

Application. Interested companies shall apply for a subsidy under the relevant call for applications (Subsidy Programme “Renewable Energy Sources”).
Selection procedure. The call for applications shall specify the criteria for selection and the method of assessment (Specific Target 3.1, 2.A.6.2 OP PIK).
Award. The institution in charge of the Operational Programme “Entrepreneurship and Innovation for Competitiveness”, i.e. the Ministry of Industry and Trade, decides whether a subsidy is granted. The binding conditions for the subsidy granted are communicated by notice (Specific Target 3.1, 2.A.6.2 OP PIK).

Competent authority

Ministry of Industry and Trade (MPO)

Distribution of costs

European Union

The subsidies and loans are funded by the ERDF (European Regional Development Fund).

Distribution mechanism

  • ERDF – Ministry of Industry and Trade. The subsidies and loans are funded by the ERDF (European Regional Development Fund) and distributed by the Ministry of Industry and Trade.
  • Ministry of Industry and Trade – Business and Innovation Agency. The funds for the subsidy are distributed by the Business and Innovation Agency on behalf of the Ministry of Industry and Trade
  • Business and Innovation Agency – beneficiaries. Business and Innovation Agency distributes the funds among the eligible projects with regard to the fulfilment of the requirements specified in the call for proposals.

Czech Republic

Further information

Basic information on legal sources