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75 million for sustainable energy in Slovak Republic

2007-05-09 00:00:00

New EBRD credit line to promote better use of resources

A €60 million credit line is being set up by the EBRD to finance projects in the Slovak Republic which increase energy efficiency, cut energy consumption and generate more energy from renewable sources. Under the new Sustainable Energy Financing Facility (SEFF), loans will be provided to private Slovak banks for on-lending to private companies, housing organisations and individual borrowers for relevant projects. The EBRD finance is complemented by a €15 million grant from the Bohunice International Decommissioning Support Fund.

Loans to private companies will be used for energy efficiency measures such as upgrading and modernisation of production facilities and small scale generation of electricity and heat from renewable sources. Housing organisations and residential costumers may receive loans for the installation of high efficiency gas boilers, heat pumps, double glazing and insulation as well as for urban renewable energy systems such as, for instance, solar boilers and wind turbines.

EBRD Vice President Brigita Schmögnerová said the new credit line will help the Slovak Republic make better use of energy resources at a time when energy efficiency and energy security are being recognised as a key challenge for sustainable development. The EBRD-financed facility will help the country implement its energy strategy and minimise the impact of the closure of units 1 and 2 of the Bohunice nuclear power plant.

The Bohunice International Decommissioning Support Fund was set up in 2001 to assist with the decommissioning of the two VVER-reactors at Bohunice V1 to which the Slovak Republic has committed itself under its EU accession treaty. Unit 1 was shut down at the end of 2006 and unit 2 will be closed next year, while the remaining two reactors at Bohunice V2 will remain operational. Contributors to the fund, which is administrated by the EBRD’s Nuclear Safety Department, are the European Community, , , , , the , , and the .

The EBRD has launched similar programmes in other European countries which proved to be highly successful. The Bank is also promoting energy efficiency through a variety of measures ranging from energy audits to tailor-made loans for efficiency upgrades.