Bratislava solar container subsidy policy adjustment plan

When will Slovakia's recovery and Resilience Plan be updated?

Following Council approval of Slovakia’s plan on 13 July 2021, Slovakia’s recovery and resilience plan was updated on 14 July 2023 to also introduce reforms and investments that address REPowerEU objectives. *The plan is entirely financed by RRF grants.

What is the transformative impact of the Slovak plan?

The transformative impact of the Slovak plan is the result of a strong combination of reforms and investments which address the country’s specific challenges. The reforms address in particular the bottlenecks to a lasting and sustainable growth.

Are retroactive subsidy retractions a threat to the profitability of re projects?

Moreover, retroactive subsidy retractions were identified by Helm et al. (2003) as one of the main threats to the profitability of RE projects, and as suggested by García-Álvarez et al. (2018), the effect of retroactive changes is included in our model.

Does subsidy retraction affect investment?

In the same line of work, Boomsma and Linnerud (2015) find that an expected subsidy retraction increases the rate of investment if it is applied to new projects, while it slows down investment if it has a retroactive effect; i.e., existing projects will be also impacted by policy changes.

Did investors anticipate retroactive subsidy changes?

Furthermore, it is unlikely that investors anticipated these retroactive subsidy changes since we see no evidence that investment activity slowed down prior to the policy events, as also illustrated by several ensuing lawsuits (The Economist, 2013).