EBRD offers new funds to promote sustainable energy investments in Slovakia

The EBRD is increasing its commitments to promote sustainable energy projects in Slovakia with a new €90 million funding under the existing Slovakia Sustainable Energy Finance Facility (SLOVSEFF) to ensure continuous implementation of energy efficiency and small renewable energy projects.

The Bank’s SLOVSEFF was launched in 2007, when the EBRD provided €60 million to encourage Slovak enterprises and housing associations to make better use of energy resources. The funds were distributed via four local partner banks Slovenska Sporitelna (Erste Bank Group), VUB Banka (Intesa Sanpaolo Group), Tatra Banka (Raiffeisen International) and Dexia Banka Slovensko.

The new €90 million will be on-lent to the four participating banks as well as to new partner institutions in Slovakia. The proceeds of the EBRD funds will be used to finance efficiency and renewable energy projects implemented in the industrial and residential sectors.

Sub-borrowers undertaking sustainable energy investments will be reimbursed by up to 15 per cent of the amount of the loan upon the completion of the works. In addition they will benefit from free technical assistance in assessing energy saving potential and project implementation. Grant financing of €15 million from the Bohunice International Decommissioning Support Fund has been secured for this purpose.

“Through this project the EBRD is reinforcing its commitment to promote sustainable use of energy, helping the Slovak economy to reduce its energy intensity and mitigate the rising energy prices”, said Brigita Schmögnerová, EBRD Vice President.

To date the EBRD has financed over 280 sustainable energy projects in the residential and industrial sectors in Slovakia under the SLOVSEFF, which will lead to a total estimated energy savings of 235,000 MWh per year and an annual reduction in CO2 emissions of 55,700 tones annually.

Similar EBRD facilities are currently operating in Bosnia-Herzegovina, Bulgaria, Georgia, Hungary, Kazakhstan, FYR Macedonia, Montenegro, Moldova, Romania, Russia, Serbia and Ukraine. Overall the EBRD has committed over €900 million to Sustainable Energy Finance Facilities in these countries.