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
- 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 . 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.