100% Subsidy for Energy Savings for Manufacturing Businesses in Eastern Macedonia and Thrace: Application Submission Extension until 08/06
Stavros Nikas-ΙΩΝΙΚΗ Finance
12 January 2024
An extension has been granted for the new program aimed at manufacturing businesses operating in the Eastern Macedonia and Thrace region. The new deadline for application submission is Tuesday, 06/08/2024. The extension provides the opportunity for interested companies and energy auditors to complete all necessary processes. Companies aiming to improve their energy efficiency will benefit from this initiative. The objective of this action is to finance SMEs’ investment plans to achieve an annual final energy saving of at least 72.000 MWh with a total Public Expenditure of up to €25,000,000
Purpose
The purpose of this initiative is to support investment plans for existing small, very small, and medium-sized enterprises (SMEs) in the Eastern Macedonia and Thrace Region (EMT), allowing them to implement interventions to enhance energy efficiency, such as fundamental upgrades or replacement of energy-intensive machinery and production lines.
Specific Terms
The justification for the necessity of interventions (excluding buildings) is exclusively based on the Energy Audit Report conducted by an Energy Auditor registered in the Energy Auditors Registry.
Eligible investment plans are those that, according to the Energy Audit Report, implement energy efficiency improvement interventions outlined in the proposed scenario and achieve final energy savings of at least 20% compared to the current status of production units before intervention, as indicated by the average annual final energy consumption over the past 5 years.
Confirmation of the achievement of final energy savings by the business is performed through a Measurement and Verification Report prepared by an Energy Auditor registered in the Energy Auditors Registry, distinct from the Energy Auditor who prepared the initial Energy Audit Report.
The main eligibility criteria for a business to join the program are as follows:
BASIC REQUIREMENTS
| 1. | Final energy savings of at least 20% compared to the current status |
| 2. | No mandatory energy audit submission every 4 years |
| 3. | Operation under an eligible NACE code in the calendar year preceding the funding application submission |
| 4. | Activity conducted in separate business premises |
| 5. | Existence or commitment (via a formal declaration by an authorized representative) to create appropriate facilities and services for accessibility for persons with disabilities |
| 6. | In cases of receiving rescue aid, the relevant loan must be repaid and the Guarantee Agreement terminated; if restructuring aid has been received, it must be completed |
| 7. | The unified enterprise must not be in a distressed condition as defined by EU Regulation 651/2014 |
| 8. | Legal operation with appropriate licensing documentation |
| 9. | At least five (5) closed fiscal years |
| 10. | Activity conducted within the Eastern Macedonia and Thrace Region (EMT) |
| 11. | SME status |
| 12. | Commitment not to receive funding, inclusion, or submission for approval for financing from another program funded by national or community resources for the expenses included in this specific application |
| 13. | Submission of a single funding application per Tax ID for this action |
| 14. | The company should not be under bankruptcy, liquidation, or compulsory administration, nor should a recovery request by its creditors have been filed |
| 15. | No outstanding recovery of state aid against the business following a European Commission decision declaring the aid illegal and incompatible with the internal market |
| 16. | Operation exclusively in one of the following business forms: Societe Anonyme, Limited Liability Company, General Partnership or Limited Partnership, Private Company, Sole Proprietorship, Social Cooperative Enterprise, Cooperative, and bookkeeping in single-entry or double-entry accounts |
Eligible Expenses
Eligible expenses are divided into two categories: equipment expenses and service provision expenses.
Eligible expenses include additional investment costs required to achieve the highest level of energy efficiency. Costs not directly associated with achieving a higher level of energy efficiency are ineligible. The total costs should not involve improving building energy efficiency.
The eligibility date is defined as the date of electronic application submission, except for service provision expenses, which are eligible from the publication date of the call.
Equipment Expenses Include:
EQUIPMENT EXPENSES
| 1. | Equipment and installation of heat recovery systems from the operation of production and non-production mechanical equipment (compressors, refrigeration units, burners/boilers, furnaces, high-efficiency ovens) |
| 2. | Pipe insulation, installation of steam traps, etc., in heat distribution facilities |
| 3. | Replacement of old compressors with higher-efficiency models, use of backup compressors, automated control systems in compressed air installations. |
| 4. | Upgrading and control of lighting systems in production areas |
| 5. | Reactive power compensation for electrical consumption |
| 6. | Variable-flow fans and pumps |
| 7. | Procurement and installation of energy management systems for production/storage areas |
| 8. | Replacement of production process equipment with higher-efficiency models |
| 9. | Replacement of steam boilers with high-efficiency models in steam production facilities |
| 10. | Tank insulation, waste heat utilization in heating/cooling facilities |
| 11. | Installation of high-efficiency vacuum pumps in vacuum production facilities |
| 12. | Replacement of existing motors with higher-efficiency motors |
| 13. | Procurement and installation of energy management systems for production/storage areas |
| 14. | Procurement of material and product handling equipment (e.g., forklifts) within the business's wider activity area, provided it is included in the Energy Audit Report |
Equipment not listed above may also be accepted, provided it is associated with the above expenses, is included in the proposed energy savings scenario in the Energy Audit Report, and contributes to the final energy savings target.
Work expenses must be accompanied by the relevant permits as required by the applicable legislation, otherwise, they will be deemed ineligible.
Service provision expenses include, among others, the preparation of the Energy Audit Report, the Measurement and Verification Report, Interim Compliance Reports for equipment compatibility with the Energy Audit Report, and accounting support/monitoring of the investment plan.
Expenses are eligible provided they serve the business activity and fall within the project implementation period. The eligible cost for "Service Provision Expenses" is up to €60,000, depending on the investment plan's budget.
Budget, Implementation Duration, and Subsidy Rates
The investment plans supported by this action must have a budget between 50.000€ to 1.000.000€.
The maximum duration for completing the physical and financial aspects of the investment plan cannot exceed 30 months from the date of the Approval of the Evaluation Results. This includes 24 months for the implementation of energy efficiency improvements and the commencement of productive operations, plus an additional 6 months of full operation to prepare the Measurement and Verification Report, which accompanies the Final Inspection Request. The 6-month full operation of the investment plan is based on the review period covered in the Measurement and Verification Report.
The subsidy rate may reach up to 100% of total investment costs to achieve the energy savings target, as it will be conducted through a competitive bidding process.
Budget, Implementation Duration, and Subsidy Rates
The investment plans supported by this action must have a budget between 50.000€ to 1.000.000€.
The maximum duration for completing the physical and financial aspects of the investment plan cannot exceed 30 months from the date of the Approval of the Evaluation Results. This includes 24 months for the implementation of energy efficiency improvements and the commencement of productive operations, plus an additional 6 months of full operation to prepare the Measurement and Verification Report, which accompanies the Final Inspection Request. The 6-month full operation of the investment plan is based on the review period covered in the Measurement and Verification Report.
The subsidy rate may reach up to 100% of total investment costs to achieve the energy savings target, as it will be conducted through a competitive bidding process.
Evaluation of Investment Plans
The evaluation and integration process for investment plans is comparative (competitive) and simplified, as the sole criterion for evaluation and inclusion is the lowest investment cost per unit of final energy saved annually (€/MWh) from the energy efficiency improvements implemented. Investment plans will be evaluated competitively until the budget is exhausted.
The start date for electronic application submissions is set for 04/22/2024, with the process concluding on 08/06/2024.
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