The Modernisation Fund represents a new means of financing environmentally friendly projects in the next up to ten years, for which its allocation of CZK 150 billion is intended. It aims to help countries lagging behind the economic performance of advanced European countries by increasing the share of the use of clean ecological resources and reducing energy consumption and greenhouse gases. This will lead to climate and environmental support, which is the aim of the Green Deal strategy towards a CO2-neutral Europe and a shift away from coal.

The grant support from the HEAT programme is provided for small and large projects, which focus on the modernisation or change of the fuel base of sources that are primarily intended for thermal energy supply. It particularly includes transition to the following:

• Renewable energy sources in combination with highly efficient combined heat and power production;
• Use of waste for energy production (e.g. industrial waste or sewage sludge) in combination with a highly efficient combined heat and power production;
• Electric power from renewable energy sources (e.g. electric boiler); and
• Waste heat energy in combination with a highly efficient combined heat and power production.

Who is eligible for the subsidy

• Individuals or legal entities holding a thermal energy and/or electric power production licence and a thermal energy distribution licence, which are granted by the Energy Regulatory Office, or owners of thermal energy supply systems without a licence, whose infrastructure is operated by an entity which holds such licence.

What is the subsidy intended for:

• Direct implementation costs;
• Professional technical and authorship supervision, occupational health and safety (up to 3% of direct implementation costs);
• Additional work;
• Promotional measures; and
• Receivables.

Subsidy amount per project:

• The maximum amount of grant support for a single “small” project is EUR 15 million, the minimum amount of grant support for a “large” project is EUR 15 million. The allocation has been set at CZK 1.4 billion for small projects and CZK 5 billion for large projects.
• The amount of grant support depends on whether a so-called alternative investment is considered or not (scenario without public support).

Grant coverage per project:

• Maximum of 80% of eligible expenses for small businesses outside Prague, 65% in Prague
• Maximum of 70% of eligible expenses for medium-sized businesses outside Prague, 55% in Prague
• Maximum of 60% of eligible expenses for large businesses outside Prague, 45% in Prague

Acceptance of applications:

• 24 May 2021 – 14 January 2022