NextGenerationEU: Austria and Slovenia submit requests to revise recovery and resilience plans

Austria and Slovenia submitted two requests to the Commission to modify their respective recovery and resilience plans, to which they also want to add REPowerEU chapters.

Austria

Austria's proposed REPowerEU chapter contains two new reforms. A first reform aims at streamlining permitting procedures for renewable energy projects. The second reform concerns the adoption and implementation of a national Hydrogen Strategy to ramp up the production and use of renewable hydrogen. The chapter also includes a new support scheme for “rooftop” solar power installations in buildings owned by citizens and non-profit organisations, as well as the scale-up of an investment – already included in the original plan – to buy zero-emission commercial vehicles and start building recharging infrastructure to reduce road transport greenhouse gas emissions. In addition, Austria proposes to make changes to a number of investments included in the original plan.

Austria's request to modify its plan is based on the need to factor in the high inflation experienced in 2022 and the effects of supply chain disruptions and increased investment uncertainty experienced in 2021-2022. It also follows the upward revision of its maximum RRF grant allocation, from €3.5 billion to €3.75 billion. The revision is part of the June 2022 update to the RRF grants allocation key.

Slovenia

Slovenia's proposed modification of the plan includes two reforms and four investments to deliver on the REPowerEU objectives. The reforms aim at facilitating the deployment of renewable energy, shortening permitting procedures and promoting sustainable mobility. The investments aim at accelerating the decarbonisation of Slovenia's industry, strengthening its national energy distribution network, and giving a boost to sustainable mobility, in both the public and private sector. Slovenia is also proposing to remove some investments from its plan, such as the originally foreseen flood protection measures. More time is needed to ensure that they are in line with environmental standards. Therefore, Slovenia will be financing them with national funds while implementing them according to a different timeline.

Slovenia's request to modify its plan is based on the need to factor in the very high inflation experienced in 2022, as well as the impossibility to deliver certain measures within the originally envisaged timeline due to objective circumstances. The request also reflects the downward revision of Slovenia's maximum RRF grant allocation, from €1.8 billion to €1.5 billion. The revision is part of the June 2022 update to the RRF grants allocation key and reflects the country's comparatively better economic outcome in 2020 and 2021 than initially foreseen.

Slovenia has also requested to reduce the amount of loans financing its plan, from €0.7 billion to €0.55 billion, to reflect the removal of certain investments originally included in the plan. In addition, Slovenia has requested to transfer the totality of its share of the Brexit Adjustment Reserve (BAR), amounting to €5 million, to its recovery and resilience plan. These funds, added to Slovenia's REPowerEU grants allocation (€116 million) make the submitted overall modified plan worth €2.16 billion.

Next steps

The Commission will now assess whether Austria and Slovenia's respective modified plans fulfil the assessment criteria in the RRF Regulation. The two assessment processes are separate for each country.

If the Commission's assessments are positive, it will make proposals for two amended Council Implementing Decisions to reflect the changes to the Slovenian and Austrian plans, respectively. Member States will then have to endorse each of the two Commission's assessments.