Programme for connecting to network of entrepreneurs

Open Target group: An operating or start-up entrepreneur who has been registered in the commercial register by the time of submission of the application and active in the field of mining and quarrying, manufacturing (except for the manufacturing of tobacco products) or electricity, gas, steam and air conditioning supply

The objective of awarding the grant is to mitigate the bottlenecks in connection with the network (electricity, water and sewerage, gas, district heating, district cooling or communications network) for the entrepreneur and thereby increase the added value of the entrepreneur and create new jobs. The target area of the programme is Estonia, with the exception of the City of Tallinn with the neighbouring municipalities and the City of Tartu. The programme supports connecting to the network, increasing existing network capacity, or purchasing equipment to improve electrical connections if it is needed for entrepreneurial activities.

 

 

Maximum grant 100 000 EUR

 
The maximum grant percentage from the entire cost is 60%
Majandus- ja Kommunikatsiooniministeerium

Total budget

1 000 000 eurot

Goal

Results


Terms and Conditions

Read more about the current Regulation of the programme.

At the moment of submission of the application, the target group includes entrepreneurs entered in the commercial register who apply for a grant for an investment in the field of division B (mining and quarrying), C (manufacturing, except for the manufacturing of tobacco products) or D (electricity, gas, steam and air conditioning supply) of the Estonian Classification of Economic Activities EMTAK 2008.

The applicant shall achieve an increase of at least 10% in added value within two years after the end of the project, or if it is a start-up enterprise with no previous business history (or it has earned less than 40,000 euros in the previous financial year), the sales revenue of the enterprise shall be five times the grant amount two years after the end of the project.

The applicant shall be an enterprise entered in the commercial register by the due date for submission of the application.

The grant provided as part of the programme is de minimis aid.

The maximum amount of grant per project is 100,000 euros. The minimum amount of grant per project is 5,000 euros.

The same entrepreneur may apply for a grant for connecting different networks if the total amount of grant does not exceed the maximum grant amount and the construction on different objects takes place during the eligibility period.

The applicant shall be the owner of the registered immovable where the installation for connecting to the network is located and for which the grant is applied for at the time of submission of the grant application, or the application shall have a fixed-term rental or lease contract for the use of the registered immovable for a period of at least five years of the end of the project’s eligibility period, or have the right of superficies or usufruct on the registered immovable for at least five years of the end of the project’s eligibility period.

The applicant’s tax arrears or payment in arrears inclusive of interests shall not exceed 100 euros or have been deferred. Upon deferral of tax arrears, the taxes must be paid according to the schedule.

If the applicant has previously received grant through Enterprise Estonia, which has been subject to recovery, the repayments the term of which has arrived must have been made.

The applicant or a person having control over the applicant is not subject to liquidation, compulsory dissolution or bankruptcy proceedings, no bankruptcy decisions must not have been made with regard to this person, and the applicant’s capital and reserves must comply with the requirements set out in the Commercial Code.

The maximum duration of the project is 24 months. The eligibility period for the project starts from the date of submission of the application or the date established in the application and in the decision to approve the application, which may not be later than six months of the submission of the application.

 

 

Activities that are supported

The programme supports connecting to the network or increasing the existing network capacity, if it is needed for entrepreneurial activities, and purchasing equipment for improving the quality of the electricity connection.

Eligible costs are:

  • connection fee – charge of the network operator for network connection;
  • fee for change of conditions – charge of the network operator for changing the consumption or production conditions;
  • the costs of designing and constructing the network connection, provided that no valid construction or design contract has been concluded by the time of submission of the grant application, the means of performance of which are requested under this Regulation.
  • the costs of purchasing and installing equipment to improve the quality of the electrical connection

The construction of a network connection by an entrepreneur who is a non-network operator shall only be supported if the price offer of the builder indicates that the construction price by such an entrepreneur is more favourable than the construction price offered by the network operator. If the construction is carried out by a non-network operator, the application shall request two comparable price offers in addition to the price offer of the network operator. If the builder is a network operator, there is no need to request comparable price offers. Costs shall be eligible provided that no prior construction or design contract has been concluded by the time of submission of the application in order to avoid deadweight of the grant.

Eligible costs are the costs incurred during the project’s eligibility period and 45 days after the end of the eligibility period. The eligibility period shall also include the conclusion of a network contract with the network operator.

Value added tax is not eligible.


Application

Applications are submitted on an ongoing basis. 

The application is submitted by the representative of the applicant in a digitally signed form through the e-service of Enterprise Estonia.


Kontakt:

Kristiina Niilits
738 6009
kristiina.niilits@eas.ee

Read more about the application form.


Evaluation

The following criteria are taken into account when evaluating the applications:

  • the planned increase in added value per employee (operating enterprise);
  • growth in sales revenue (start-up enterprise or enterprise whose annual sales revenue was up to 40,000 euros);
  • the incentive effect of the project on the economic performance of the enterprise;
  • the feasibility and sustainability of the development plan of the entrepreneur or unit connecting to the network;
  • the importance of a bottleneck related to the network connection in the planned development activities of an entrepreneur;
  • the capability to achieve and grow exports as extra points.

Read more about the evaluation methodology.

 

Reporting

The project promoter shall provide the Enterprise Estonia with the interim and final reports on the due dates established in the decision to approve the application. The request for submitting interim reports shall be reflected in the application. The final report of the project shall be submitted within 45 days of the end of the project period, at the latest. The reports shall be submitted via the e-service of Enterprise Estonia with the digital signature of the person entitled to represent the project promoter.

Form of the project’s interim report.

Form of the project’s final report.

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