Component 1: Energy efficiency investments for municipal infrastructure (excluding buildings)

Eligible Sub-Projects with Sub-borrowers implementing energy efficiency projects in municipal infrastructure (transportation, sewerage, drinking water supply systems, public lighting, district heating) will be those that comprise equipment, systems and processes enabling the reduction of primary energy consumption and/or final consumption of electricity and/or fuels (either of fossil or renewable origin) and/or other forms of energy (which can be ultimately related to the use of electricity, heat and/or fuels) for:

  • The production and supply of heat and/or electricity;
  • The provision of water supply and sewerage services within relevant municipality;
  • Provision of public transport services to the relevant municipality;
  • Provision of street lighting on the territory of the relevant municipality.

Examples of eligible measures are:

  • On site co-generation of heat and electricity;
  • On site tri-generation of heat, electricity and cool;
  • Replacement of existing boilers with more efficient ones (e.g. condensing boilers) or due to fuel switching;
  • Rehabilitation of boilers (e.g. economizers, improved insulation);
  • Rehabilitation of heat distribution systems;
  • Replacement of oversized electrical motors, installation of Variable Speed Drives on electric motors;
  • Rehabilitation of power distribution systems;
  • Implementation of Energy Management Systems; and
  • Rehabilitation of street lighting (only measures relevant to improvement of energy efficiency).

Sub-projects will receive a grant calculated as a percentage of the Sub-loan amount and based on the Energy saving ratio as follows:

Energy saving ratio

Grant as a % of loan amount

20% - 29%


30% - 40%




The ESR is calculated as AES / AEC,


AES – Annual Energy Savings is the annual energy consumption expected to be saved in an average year once the Sub-Project is completed.

AEC – Annual Energy Consumption is the total actual energy consumption of a municipal building or other municipal infrastructure/equipment in an average year for heating, cooling, ventilation, hot water preparation, lighting, appliances, machinery, etc.

It is expressed in %.

The proportion of the investment cost of a Sub-project to be financed by a Sub-loan will be determined by the PB and may vary from Sub-project to Sub-project and can be up to 100% of the total investment cost of a Sub-project. This amount includes VAT if Sub-borrower is not a taxable person regarding the Slovak Act No. 222/2004 Coll. on Value added tax; otherwise total investment costs can be financed without VAT.