Relevant costs
Article 3
1. For the purposes of Article 2(3), the rules in paragraphs 2 to 5 of this Article shall apply. 2. The relevant costs of CCS demonstration projects shall be those investment costs which are borne by the project due to the application of CCS net of the net present value of the best estimate of operating benefits and costs arising due to the application of CCS during the first 10 years of operation. 3. Relevant costs of RES demonstration projects shall be those extra investment costs which are borne by the project as a result of the application of an innovative renewable energy technology net of the net present value of the best estimate of operating costs and benefits arising during the first 5 years compared to a conventional production with the same capacity in terms of effective production of energy. 4. The investment costs referred to in paragraphs 2 and 3 shall cover the cost of investment in land, plant and equipment. Investment costs may also relate to investment in technology transfer and operating licenses of know-how (hereinafter ‘intangible assets’) where the following conditions are fulfilled: (a) the intangible asset can be considered as a depreciable asset; (b) the intangible asset is purchased on market terms at the lowest price possible; (c) the intangible asset remains in the establishment of the recipient for at least 5 years. If the intangible asset is sold before the expiry of the 5-year period referred to in point (c) of the second subparagraph, the yield from the sale shall be deducted from the relevant costs. 5. The net operating costs and benefits referred to in paragraphs 2 and 3 shall be based on the best estimate of operating expenses borne by the project regarding production costs and take into account any additional benefits resulting from support schemes even if they do not constitute State aid within the meaning of Article 107(1) of the Treaty, avoided costs and existing tax incentive measures.