SLOVAK REPUBLIC

1. Primary Energy Efficiency Law

On 1 December 2014, the Slovak Act No. 321/2014 Coll. on energy efficiency ("Law") entered into force. The Law transposes into national legislation the European Union regulations set out under Directive 2012/27/EU regarding energy efficiency, amending the Directives 2009/125/EC and 2010/30/EU, and repeals Directives 2004/8/EC and 2006/32/EC.

The Law is focused on energy efficiency in the whole energy chain and also affects various entities which are not dealing primarily with energy efficiency, such as electricity generators. Nevertheless, the newly introduced obligations are imposed mainly on the owners or operators of larger buildings, as well as industrial buildings. The Law also includes various obligations with respect to energy efficiency in the course of operation of central heating where, for instance, apartment buildings with their own heating systems were obliged to install authorised meters for their heating systems by the end of 2016.

The Law sets out numerous rules and obligations, including:

-measures for support and improvement of energy efficiency for new and refurbished electricity production facilities;

-energy audit requirements;

-power transmission systems and distribution systems evaluation of transmission efficiency requirements;

-obligations for preparation of strategic documents in the field of energy efficiency by the Ministry of Economy ("Ministry");

-obligation of the Ministry to determine energy efficiency targets, make an estimate energy efficiency potential of district heating systems and conclude energy saving agreements with entrepreneurs;

-obligation of the Ministry to ensure strategy development, planning and periodical evaluation of renovation of public buildings with floor areas of 250 m² or more;

-rules and obligations related to monitoring, and evaluation of national energy efficiency targets; and

-establishment of 3 types of energy services

-Support (i.e. "soft") Energy Service – includes mainly advisory or education activities;

-Guaranteed Energy Service – realisation of real complete energy services based on a project; and

-Energy Service for Public Sector – a special type of Guaranteed Energy Service, where either

public authorities or public financial resources are involved according to rules specified in the Act.

Comparison

In line with the EU legislation, (specifically the obligation of the Member States to duly implement directives and achieve a particular result dictated in the directives), Slovakia has implemented the provisions of the EU Directive by way of adopting the new Law and amending other relevant laws.

Energy Efficiency Action Plans

The Slovak Republic's Energy Efficiency Action Plans, pursuant to the European Commission Directive on energy end-use efficiency and energy services, are intended to introduce the necessary domestic legislative framework for energy efficiency, establish an effective monitoring and information system, define and implement low-cost organisational and technical measures, and provide for financial support mechanisms. The latter includes the planned establishment of an Energy Efficiency Fund to provide grants supporting specific energy efficiency related activities.

The First National Energy Efficiency Action Plan ("1AP") was promulgated in October 2007 for the period 2008-2010. 1AP aimed to achieve energy savings in individual sectors of consumption, amounting to nine percent (9%) of the average annual national consumption from 2001-2005. Overall attainable energy savings amount to 37,215 TJ by 2016, with an intermediate target of attaining three percent (3%) of final energy consumption savings by 2010, amounting to approximately 12,405 TJ.

1AP categorises energy-saving measures according to various sectors. Planned measures include, inter alia:

-updating and improving building regulations and requirements for new and existing non-industrial buildings;

-establishing a building documentation package, with transparent information on audits and energy certification;

-improving energy efficiency and thermal properties of public sector buildings;

-improving monitoring and verification of building energy performance;

-introducing voluntary energy certificates/audits;

-investment support for refurbishment of prefabricated buildings;

-improving public lighting, setting minimum efficiency requirements for public lighting;

-improving efficiency in manufacturing process;

-promotion of low-emission road vehicles; and

-modernising transport infrastructure.

The Second National Energy Efficiency Action Plan ("2AP") was in force in the years 2011-2013.

The Third National Energy Efficiency Action Plan ("3AP") is the third implementing measure in succession under the Energy Efficiency Policy and builds upon the previous two action plans. The preparation of energy efficiency action plans was originally derived from Directive 2006/32/EC on energy end-use efficiency and energy services whilst the new Directive 2012/27/EU on energy efficiency follows up on this requirement, extends the obligation to submit action plans and expands the scope covered by action plans.

National indicative energy efficiency targets pursuant to Directive 2012/27/EU were set as follows:

-Energy efficiency target, final energy consumption savings

Annual: 3,416 TJ/year

Three-year target (non-cumulative): 10,247 TJ

2020 target (cumulative): 79,695 TJ, i.e. twenty three percent (23%)

-Energy efficiency target, primary energy consumption savings

Annual: 5,344 TJ/year

Three-year target (non-cumulative): 16,031 TJ

2020 target (cumulative): 124,689 TJ, i.e. twenty percent (20%)

-Sectors and their savings in 2014-2016

Buildings: 3,087 TJ, i.e. thirty six percent (36%)

Industry: 2,569 TJ, i.e. thirty percent (30%)

Public sector: 1,672 TJ, i.e. nineteen percent (19%)

Appliances: 737 TJ, i.e. eight percent (8%)

Transport: 576 TJ, i.e. seven percent (7%)

The Fourth National Energy Efficiency Action Plan for 2017 ("4AP") is currently under preparation to guarantee the deadline of April 2017, as it includes also various reports from EED for specific articles (Articles 5, 8, 16). 2016 was set as the year for checking the trajectory of energy savings for the 2020 target based on Article 7 obligations. The trajectory checking and updates involving possible new measures will be included in 4AP.

Comparison

Through the APs, Slovakia pledged to achieve the one point five percent (1.5%) energy savings per year mandated by Directive 2012/27/EU. Slovakia has also introduced plans to achieve energy savings throughout various sectors, mentioning indicative tools and ways in which the plan to be implemented.

Only large enterprises are obliged to undergo an energy audit. Large enterprises are defined as entrepreneurs not falling under the definition of micro, small and medium-sized enterprises (SMEs) as set out in the Commission Regulation (EU) No. 651/2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty.1

Establishment of the Slovak Innovation and Energy Agency ("SIEA")

SIEA was given its current name by the Decision of the Minister of Economy of the Slovak Republic

No. 18/2007 as a professional State subsidy organisation which makes an important contribution in the achievement of governmental energy policy objectives, principally by promoting energy efficiency, new energy technologies and renewables.

In the field of regulatory energy efficiency, SIEA is responsible for the operation of monitoring systems for efficiency in energy use, performance of energy audits and follow-up recommendations, management and information point for funds provided for Slovakia under international agreements and support mechanisms (subsidised programmes, support programmes for development of SMEs, etc.).

Permanent Interinstitutional Commission for the Preparation of Energy Efficiency Action Plans

One of the important instruments that help fulfil the requirements of the EED (especially in terms of monitoring, evaluation and planning of energy savings) is the Permanent Interinstitutional Commission for the Preparation of Energy Efficiency Action Plans, established in 2007. It includes representatives of various ministries and other central governmental bodies, as well as organisations responsible for energy savings programmes and measures in Slovakia.

3rd Energy Efficiency Action Plan for 2014-2016 with the prospect for 2020

The 3rd Energy Efficiency Action Plan for 2014-2016 with the prospect for 2020 was approved by Governmental Decision No. 350/2014. For more details please see Section 2.

Comparison

Slovak legislation has been put in place to define the scope of energy audits to ensure that all obliged energy companies comply with the Energy Efficiency Obligation. Since Directive 2012/27/EU only stipulates that energy distributers achieve a one point five percent (1.5%) energy reduction every year, Slovakia has defined how large enterprises can achieve this goal through energy audits and strides towards efficiency. Slovakia has embraced the goal to promote efficiency throughout all stages of the energy chain.

Slovakia adopted a number of decrees further specifying the obligations set out in the Law and executing the targets and obligations set out in the Law and various non-legislative documents.

-Decree of the Ministry of Economy No. 319/2015 Coll. about examination of energy auditors;

-Decree of the Ministry of Economy No. 179/2015 Coll. about energy audits;

-Amendment to a decree of the Ministry of Transport, Construction and Regional Development No. 364/2012 Coll. about requirements for Act No. 555/2005 Coll. about energy performance of buildings and on amendment of certain acts as amended;

-Decree of the Ministry of Economy No. 327/2015 Coll. about calculation and meeting targets in energy efficiency;

-Decree of the Ministry of Economy No. 192/2016 Coll. on the energy demands of public buildings;

-Decree of the Ministry of Economy No. 308/2016 Coll. about the procedure for calculating the primary

energy factor of district heating;

-Decree of the Ministry of Economy No. 14/2016 Coll. on technical requirements for thermal isolation of heat and hot water network;

-Decree of the Ministry of Economy No. 13/2016 Coll. about data in the energy efficiency monitoring system; and

-Decree of the Ministry of Economy No. 88/2016 Coll. on calculation of energy efficiency of the energy sources and networks.

Comparison

Directive 2012/27/EU provides for energy audits of large industry, but does not establish parameters for distinguishing between large enterprises and SMEs. Slovakia has established detailed requirements for certification of energy auditors and guidelines for energy audits including definition and distinction between large enterprises and SMEs.

Energy auditors are required to demonstrate knowledge of Slovak legislation and relevant technical information and meet specific education and professional experience requirements.

Energy Policy of the Slovak Republic from October 2014

The Energy Policy is a strategic document defining the energy sector's primary objectives and priorities until 2035 with a view to 2050. The Energy Policy is a component of Slovakia's national economic strategy given that ensuring sustainable economic growth is conditioned by the reliable supply of affordable energy.

The Energy Policy is influenced significantly by EU targets of a twenty percent (20%) reduction of greenhouse gas emissions, a twenty percent (20%) increase in energy efficiency and a twenty percent (20%) utilisation rate of RES by 2020. Energy Policy targets and priorities are defined so as to fulfil the targets defined at the EU level.

Concept of the Energy Efficiency of the Slovak Republic

The main goal of the Energy Efficiency Concept is to identify the main trends in energy consumption, set priorities and oversee targets, analyse the existing state of, and potential and barriers for, energy efficiency and to define the framework of energy efficiency measures to overcome the identified barriers. More detailed specification of the measures implementing this concept is gradually being developed through Energy Efficiency Action Plans; the first of these (1AP) for the years 2008-2010, 2AP for the years 2011- 2013 was approved in June 2010, 3AP for the years 2014-2016 with an outlook up to 2020 was approved in June 2013 and 4AP for the year 2017 is currently under preparation to be approved by April 2017.

The following main goals are set out:

-match the energy efficiency of the original 15 EU Member States;

-reach the national indicative energy savings in the years 2008-2016 of nine percent (9%) of the final energy consumption, i.e. 37,215 TJ;

-reach the national indicative energy savings in the years 2017-2021 of zero point five percent (0.5%) of the final energy consumption; and

-in the years 2022-2030, zero point one percent (0.1%) of the final energy consumption.

Comparison

Slovakia has fulfilled its obligations arising from the EU Directive which requires, inter alia, long-term renovation strategies, specifically in the public sector.

As a Member State of the European Union, Slovakia must transpose the EU Directives into its domestic legislation and observe the Energy Policy measures established by the European Commission.

Act No. 529/2010 Coll. on Environmental Designing and Using of Products

Act on Ecodesign implements into Slovak law the Directive of the European Parliament and of the Council No. 2009/125/EC establishing a framework for the setting of ecodesign requirements for energy-related products.

Act No. 309/2009 Coll. on Support of Renewable Energy Sources and High Efficiency CHP

In its present form, the act transposes the provisions of Directive 2009/28/EC into Slovak legislation.

Act No. 39/2013 Coll. on integrated prevention and environmental pollution control and on amendments and supplements to certain laws

In its present form, the act transposes Directive 2010/75/EC into Slovak legislation.

Act No. 158/2011 Coll. on Promotion of Clean and Energy Efficient Motor Vehicles and on amending and supplementing of certain acts

The Act transposes Directive 2009/33/EC into Slovak legislation.

Comparison

Directive 2012/27/EU establishes an indicative target of at least twenty percent (20%) energy efficiency for Member States. Slovakia follows this by establishing a target of achieving a twenty percent (20%) energy efficiency target for primary energy consumption savings and a twenty three percent (23%) energy efficiency target for final energy consumption savings. Few strategies were adopted and there is little information indicating if and how the targets are actually going to be achieved.

An important tool for implementing energy savings measures based on Directive 2012/27/EU are the EU structural and investment funds for the period of 2014-2020. Directive 2012/27/EU has supported the creation of various contacts with industries for enabling to enable voluntary agreements on energy efficiency.

2. Specific Provisions of the Law

3. Obligations

4. Mandatory Audit of Large Industry

5. Strategies

6. Targets

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