The state supports more efficient heat and power generation. This will help to modernize heating plants and stabilize the energy system
Support for high-efficiency combined heat and power generation (HE CHP), which is provided in the form of a tender announced by the Ministry of Economy of the Slovak Republic, is an important step towards modernizing Slovak heating plants and their transition to efficient systems for central heat supply (CHS). Such modernization is necessary not only to reduce fuel consumption and emissions, but also to meet the requirements of European legislation – specifically the Energy Efficiency Directive and the Renewable Energy Directive. It is therefore a process that Slovakia must implement, and at the same time, cities, business, and households connected to CHS will benefit from it.
Combined heat and power generation is a technology that can produce electricity and heat simultaneously, making it significantly more efficient than producing them separately. Another advantage of this type of generation is that it provides so-called spinning resources – stable power plant capacities that are essential for maintaining balance in the electricity grid. Especially in summer and during transitional periods, these spinning resources help Slovakia strengthen its energy security and grid stability.
The amount of support is not determined in advance. It is determined through a competitive tender, where support is awarded to those facilities offering the lowest price. The maximum price is capped at €119.08 per megawatt-hour. The mechanism is designed to ensure that support is fair and transparent and that the state only pays what is necessary to ensure that the technologies are actually modernized. At the same time, the rule applies that if the market price of electricity is higher than the tendered support price, the state will not provide any support.
Support is also limited in scope – it can only be provided to facilities with a total installed capacity of up to 220 megawatts. The state will thus only support the most efficient projects. The entire process is carried out in accordance with the approved State Aid Scheme for the Promotion of High-Efficiency Combined Heat and Power.
The current support for HE CHP cannot be compared with the support for renewable sources in 2009. In 2009, a fixed price was used to support the goal of increasing the share of renewable sources, and variable photovoltaic power plants with an adverse impact on the system were supported. Today, we support a limited number of sources through competitive tenders, which will have a positive impact on grid security and also help to reduce heat prices in the given locations.
Modernization of heating plants, higher production efficiency, strengthening of energy security, and fulfilment of European commitments – all this is brought about by support for HE CHP, which is now one of the key tools for improving the quality and security of heat and electricity supplies in Slovakia.
The Press Department of MoE SR