Following our previous Legal and Tax Alert on the financing scheme for energy storage capacities (batteries) (available here), we would like to inform you that the Order of the Ministry of Energy no. 1355/2024 for approving the State Aid Scheme on supporting investments in the development of energy storage capacities (batteries) with financing from the Modernization Fund (”Order no. 1355/2024”) has been published in the Official Gazette.
For context, the financing scheme supports investments for developing new energy storage facilities (batteries) connected to existing renewable energy production facilities, with an estimated budget of EUR 150 million.
A beneficiary can access financing up to a maximum of EUR 10 million for one or more submitted projects. Still, the limit per project is EUR 100,000 per MWh installed storage.
The main findings of interest introduced by Order no. 1355/2024 compared to the version under public consultation:
▸ Funding has also been extended to hydroelectric power plants;
▸ Newly incorporated companies cannot submit bids under the financing scheme;
▸ The definition of energy storage capacity has been amended so that it is defined as a behind-the-meter energy storage capacity connected to an existing renewable energy production facility (i.e. an energy storage capacity connected within the facility for the use of a production site or a production and consumption site, which stores energy that can be produced at the production site/production and consumption site without passing through the meter within the metering group related to the delimitation point);
▸ The definition of the existing facility for the production of energy from renewable energy sources has been modified, so that it is defined as the facility for energy production to which the storage capacity will be directly connected and which at the latest until the moment of signing the financing agreement is put under final voltage, confirmed via the connection certificate and the commissioning confirmation document;
▸ The implementation period of the winning bids cannot exceed 24 months from the date of signing the financing agreement, but no later than 31.12.2029;
▸ The list of ineligible projects has been extended to include projects that represent combined renewable energy and storage facilities (behind the meter) or projects where the storage capacity is not connected to an existing renewable energy production facility.
So far, the Ministry of Energy has not published the final version of the Applicant's Guide. It has not provided information on the call for projects, but Order no. 1355/2024 states that the submission period will be announced on the Ministry of Energy website. The bids will be uploaded to the MySmis 2021 IT platform.
We will revert with news when the call for projects and the Applicant's Guide will be released.
