27 OCTOBER 2026
Author of the article
JUNIOR ASSOCIATE
MANAGING PARTNER
Electricity producers
from renewable energy sources that entered the extended feed-in premium support
regime have, in most cases, only until 31 December 2026 to invest the
approved economically justified costs. If they fail to fulfil this obligation
or are unable to duly demonstrate the investments, they may face the risk of
returning part of the funds to the support settlement entity. RONI repeatedly
reminds producers of this obligation and has also announced inspections.
In practice, this is therefore not only a technical or accounting issue. It is a regulatory risk that may have a direct financial impact on RES producers.
The mechanism referred
to as repowering, or the prolongation of support, was introduced by an
amendment to the Support Act [1],
effective from 1 August 2021. Its essence is that the original 15-year feed-in premium
support period was extended by an additional 5 years, while the Regulatory
Office for Network Industries (RONI) simultaneously reduced the approved
electricity price from which the feed-in premium is calculated.
The feed-in premium
support therefore remained preserved, but was spread over a longer period and
provided in a lower amount.
The calculation in the
price proposal could also include expected investments in necessary repairs
or technical modifications of the facility, intended to ensure the
operability of the installation throughout the entire extended support period.
However, these
investments are not merely a formal figure or a non-binding plan. The producer
must actually carry them out and be able to demonstrate them.
In its notices, RONI
states that the investments must be made no later than within the first five
years following the year in which the electricity producer entered the extended
support regime. In most cases, this is the period from 1 January 2022 to 31
December 2026.
For most producers, 2026
therefore becomes the final period in which they can fulfil the obligation to
invest the approved economically justified costs.
In 2024, RONI published
a report entitled „ÚRSO informuje o nákladoch na opravu
OZE pre účely predĺženej podpory“ (RONI informs about RES repair costs for the purposes of extended
support). In this report, RONI for the first time dealt in greater detail with
economically justified costs for RES repairs for the purposes of extended
support.
In its latest notice of 23 January 2026, RONI published a procedure for
demonstrating actually incurred economically justified costs for the necessary
repair or modification of the technological part of the facility. According to
this guidance, the costs are demonstrated by means of an expert opinion.
The expert opinion is to
be prepared by an expert in the field of Electrical Engineering and Energy.
The opinion is to determine the amount of the actually invested costs, compare
them with the originally declared investments, assess their economic
justification and determine the date of completion of the works.
It is therefore
important for producers to have prepared in advance not only technical
documentation, but also accounting, contractual and invoicing documents
relating to the repairs or modifications carried out.
Already in its notice of 17 July 2025, RONI warned that, in the event of
suspicion that the entire volume of funds has not been invested or that the
funds have been used improperly, it may proceed with thorough inspections. Such
inspections may lead to the return of the feed-in premium or part thereof to
the support settlement entity and subsequently also to a reduction of the
electricity price.
RONI returned to this
issue again in its notice of 23 January 2026. If a producer does not invest the
full amount of the approved economically justified costs, RONI may, during an
inspection, determine the amount that the producer will be obliged to return to
the support settlement entity. RONI states that, in determining this amount, it
will proceed from the difference between the costs approved in the price
decision and the actually incurred economically justified costs. The
non-invested part is to be returned in full.
Put simply, if a
producer is unable to demonstrate that it invested the approved economically
justified costs to the required extent and in compliance with the conditions of
the prolongation of support, it faces the risk of a financial correction.
The legal framework
governing the prolongation of support has been amended several times since
2021.
Producers entered the
extended support regime under the original RONI Pricing Decree No. 18/2017
Coll., which was subsequently replaced by the new Pricing Decree No. 370/2023
Coll., and thereafter by the current Pricing Decree No. 154/2024 Coll.
This may in practice
raise questions, in particular when assessing which costs may be regarded as
economically justified, how to assess their factual connection with the
technological part of the facility, and how to proceed in different periods
covered by different legal regulations.
We note that it is
precisely the current Pricing Decree No. 154/2024 Coll. which, in
Section 45(5), introduced a procedure for demonstrating actually incurred costs
by means of an expert opinion, which was absent from the original
regulation.
We recommend that
producers, before the end of 2026, verify not only the amount of the actually
invested costs, but also the quality of the documentation, the economic
justification of individual expenditures and their preparedness for an expert
assessment.
If any doubts arise
during this review, it is advisable to address them in a timely manner, before
they become the subject of an inspection by RONI.
We can assist producers
with the legal assessment of their position, analysis of the price decision and
assessment of the conditions they must fulfil when investing the costs. We can
also identify possible legal risks, prepare supporting documents for the expert
and set up the next steps vis-à-vis RONI.
If there are doubts
regarding the scope of invested costs, the completeness of the documentation or
how to proceed when demonstrating investments, we recommend addressing the
situation before the end of 2026.
Our firm has been dealing with the topic of repowering for a long time and with close attention (see our previous articles here (in English) and here (only in Slovak)).
[1] Act No. 309/2009 Coll. on Support for Renewable Energy Sources and High-Efficiency Cogeneration and on Amendments to Certain Acts (“Support Act”).
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