Component 3: Municipal infrastructure and/or municipal building renewable energy

Eligible Sub-Projects with Sub-borrowers implementing renewable energy Sub-projects in municipal buildings (e.g. offices, health care, education, entertainment, sports and leisure, hospitality services) or in municipal infrastructure (e.g. public lighting, public transport, water supply and sewerage systems, district heating systems) will be those which comprise equipment, systems and processes enabling the switch from fossil fuels or electricity to renewable energy sources or the use of renewable energy sources in new investments where solid fuel use or electricity use would be a first option. In such case, there is no requirement on energy savings but on savings of non-renewable energy sources.

Eligible measures are:

  • Fuel switch from coal, gas or oil to biomass;
  • Fuel switching or greenfield renewable energy investment for the use of:
    • solar thermal energy,
    • geothermal energy (with or without heat pump),
    • biogas production for heating/cooling and/or power generation.

Co-firing of biomass with fossil fuels will not be an eligible technology.

Biomass used will comply with sustainability criteria as required by relevant EU and national regulations.

Biofuels will not be eligible under the Facility.

The following table presents grant rates in EUR per GJ for the eligible renewable heat sources that will be used for calculation of the grant:



Fuel switch from coal/gas/oil to biomass

- wood chips boiler – local heating


- straw boiler – local heating


- wood chips district heating


- straw district heating


Fuel switching or greenfield renewable energy investment from:

Solar thermal




Biogas (heat only or power grid connected CHP


Biogas CHP with off-grid power gen.


The grant amount for each Sub-project will be calculated by the PC. The grant will be capped at a maximum of 15% and a minimum 5% of the principal amount of the relevant Sub-loan.

Sub-projects benefiting from feed-in-tariffs or other pre-existing subsidy scheme for electricity generation or combined heat and power generation will be eligible for financing under the Facility but will not receive an end-borrower incentive.

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.