Bratislava, December 15, 2020 – Slovak Investment Holding (SIH) provided financing for KOOR, s.r.o. for the development of the energy services market. Priority shall be given to financial assistance for the renovation of public buildings.
One of the key objectives of the European Union (EU) is to create a highly energy efficient building stock by 2050. The priority of the Green Deal is to double the annual rate of renovation of buildings. These goals will not be achieved without the use of private capital. The most efficient system seems to be the development of the energy services market, which is currently in its beginning, but has the ambition to create a new parallel market for the purchase of receivables. The result will be a multiplication of private resources for the renovation of public buildings.
Slovakia is the first country in the EU to have prepared legislation together with a model contract. However, the development of energy services in the public sector runs into the current methods of financing, which are almost exclusively grants with a non-repayable component of 95%. Grant funding does not incentivize the efficient use of funds, but also limits the number of buildings that we can renovate from public funds.
It is almost impossible to gain a foothold in the market of non-repayable grants with repayable financing. Nevertheless, a few companies have succeeded. These companies are integrating the most efficient operation of buildings procedures together with the most innovative management technologies.
"Slovak Investment Holding considers the area of development of energy services to be one of the most key priorities, which will help Slovakia to achieve its climate goals and at the same time enables it to spend the funds efficiently. For these reasons, SIH has decided to prepare a special financial instrument for the development of this market, "says Ivan Lesay, CEO of SIH.
This financial instrument is intended for ESCO companies (Energy Service Company), which will, on the one hand, fill a gap in the market and at the same time enable the implementation of a quality renovation of public buildings.
Slovak Investment Holding
Slovak Investment Holding (SIH) is a 100% state-owned joint stock company. Its primary goal is to support strategic public and private investments in Slovakia in the areas of infrastructure, energy efficiency, waste management, social economy and small and medium-sized enterprises. SIH draws on European Structural and Investment Funds to fund its investments. Projects are financed exclusively in repayable form, i.e., using financial instruments rather than grants.