EurObserv'ER logo

Biofuels in Slovakia

General

Mandatory targets set by the Proposal for a Directive of the European Parliament and the Council on the promotion of the use of energy from renewable sources from January 2008 indicates 14% share of RES on the final consumption of energy in 2020 as well as at least 10% share of biofuels of final consumption of energy in transport in 2020.  Indicative Target set by the European Biofuels Directive from 2003 indicates biofuels consumption of 5.75% of petrol and diesel use for transport in 2010.

In 2008 the introduction of biofuels to the motor fuels market was enacted by:

Ř      Act No. 98/2004 Coll. on excise duty on mineral oil , as amended by subsequent regulations (with effect from 01.05.2004). From the current version of this law it follows that under Paragraph 19(6) the keeper of a tax warehouse, which is an enterprise for the production of mineral oil as stated in Paragraph 6(1)(a) and (d) , is entitled, on the basis of a license to produce such a mixture in the presence of a person assigned by the customs office, to produce the following mixtures of mineral oil:

a) mineral oil of the CN codes 2710 11 41, 2710 11 45 or 2710 11 49 in which the content of biogenic material (ETBE) as stated in Paragraph 4(7)(c) is up to 15%, if the biogenic material was produced by this licensed warehouse keeper,

b) mineral oil of the CN code 2710 19 41, 2710 19 45 or 2710 19 49 and a biogenic material stated in Paragraph 4(7)(a) (FAME)

- under Paragraph 6(5), for the mineral oil mentioned

a) in Paragraph 19(6)(a) a tax rate shall be applied in accordance with Paragraph 1(a), reduced by 47 percent of the share of the biogenic material (ETBE) stated in Paragraph 4(7)(c) in the mixture, up to a maximum of 7.05 %,

b) in Paragraph 19(6)(b) a tax rate shall be applied in accordance with Subsection 1(d), reduced by the percentage share in the mixture of the biogenic material stated in Paragraph 4(7)(a) , up to a maximum of 5 % (FAME).

- under Paragraph 6(1), the tax rate is established as follows:

a) petrol falling within the CN codes 2710 11 41, 2710 11 45 or 2710 11 49, SKK 15 500 /1 000 litres,

b) gas oil falling within the CN codes 2710 19 41, 2710 19 45 and 2710 19 49, with the exception under Paragraph 7(1),SKK 14 500/1 000 litres

- under Paragraph 4(7), biogenic material consists of

a) the vegetable oils mentioned in chapter 15 of the customs rate tariff, including those that are chemically modified, as well as esters made from these, if the content of hydrocarbons therein does not exceed 5 % of the total volume,

b) ETBE produced from ethanol falling within the CN code 2207 20 00, which is not

of synthetic origin.

Ř      Slovak Government Regulation No 246/2006 Coll. on the minimum quantity of fuel materials produced from renewable sources in petrol and diesel fuels on the Slovak market (with effect from 1 May 2006). Producers and vendors are obliged to offer the minimum quantities of biofuels (or other renewable fuels) in petrol and diesel fuels for transportation purposes, expressed

- up to 31 December 2006 as a reference value of 2%, calculated on the basis of the energy content of the total quantity of petrol and diesel fuels placed on the market, - from 1 January 2007 to 31 December 2008 as a reference value of 2%, calculated on the basis of the energy content of the total quantity of petrol and diesel fuels placed on the market,

- from 1 January 2009 to 31 January 2009 as a reference value of 3.4%, calculated on the basis of the energy content of the total quantity of petrol and diesel fuels placed on the market.

- from 1 January 2010 to 31 December 2010 as a reference value of 5.75%, calculated on the basis of the energy content of the total quantity of petrol and diesel fuels placed on the market.

Within the framework of the notification procedure, the European Commission issued a decision (the written notice of 19 July 2007) approving the "State aid N 360/2006 – Slovakia. Advantageous tax treatment for the utilisation of fuels from renewables, pursuant to Directive 2003/96/EC (Biofuels)".

Of the key measures from the approved scheme it follows that:

- exemption from excise duty applies to petrol blends with ETBE and diesel blends with esters and the reduction in excise tax for these fuel blends is set at a level of 7.05% or 5% by volume;

- the excise duty reduction for biofuels is granted only to companies that operate as tax warehouses;

- the measure is due to apply for six years (from the date on which the Act on excise duty from mineral oil comes into effect) under the conditions established thereby and the excise duty reduction shall be provided from state funds; this measure is intended to promote companies that produce and supply biofuels on the Slovak market.

The implementation of the biofuel programme commenced in 2008 and was achieved by means of the following chain of economic operators: grower/cultivator - processor - producer of bio-ingredients and motor fuels - distributor - consumer/customer. The implementation involved:

- the blending of esters in some of the diesel fuels of quality standard STN EN 590, and/or diesel fuel with added esters of quality standard EN 590 that were imported onto the domestic market;

- the blending of ETBE (ethyl-tert-butyl-ether) with petrol of quality standard STN EN 228 and the subsequent introduction of this product onto the domestic market.

The implementation of the biofuel programme is quantified as the achievement of the reference value for biofuels, which is set at 2%. The reference value actually achieved for 2008 is expressed as 2.65% of the energy content of the total quantity of petrol and diesel.

 

Future programme changes expected

On 23 April 2009, the European Parliament passed the Directive on the promotion of the use of energy from renewable energy sources and on amendments and subsequent repeal of Directives 2001/77/EC and 2003/30/EC. The newly-passed directive establishes a joint framework for the introduction of energy from renewable sources. Binding national targets are thereby set for the total share of energy from renewable sources in gross final energy use and targets for the proportion of energy from renewable sources in transport (10%). The criteria for the long-term sustainability of biofuels and bioliquids are determined in this directive. With regard to the aforementioned Directive, the Slovak Republic shall pass an action plan for energy from renewable energy sources in the first half of 2010, in which national targets for the proportion of energy from renewable energy sources to be used in transport shall be set.

Sources

Sixth  report to the European Commission under Article 4(1) of Directive 2003/30/EC of the European Parliament and of the Council of 8

http://sunbird.jrc.it/biof/pdf/data_gathering_res_istanbul/doubrava.pdf

 http://www.iea.org/textbase/pm/?mode=cc&action=result

http://www.spectator.sk/articles/view/31190/14/the_use_of_renewable_energy_a_new_trend.html

 http://www.stp.lt/eksergija/pdf/10_BPM_English.pdf

Last update: December 2010


This information can be referenced without permission provided that the source is mentioned completely and correctly: 'Interactive EurObserv'ER Database, http://www.eurobserv-er.org (December 2010)'

Suggestions for improvements to the policy description can be sent to EurObserv'ER by e-mail: project@eurobserv-er.org

The EurObserv'ER barometer is a project supported by the European Commission within the DG ENER 'Intelligent Energy Europe' programme and by Ademe, the French Environment and Energy management Agency. The EurObserv'ER Barometer is the result of the investigation and research work of its authors. The European Commission is not responsible for any use that may be made of the information contained therein.