In the field of renewable energy sources, the pressure to further expand them will only increase over time, both because of the Government of the Slovak Republic and the European Union.
By 2020, Slovakia has also failed to meet its original target of achieving a 14% share of renewable resources in total domestic energy consumption.
In addition, in 2021, the European Commission approved the ambitious ‘Fit for 55’ legislative package. Which plans to significantly reduce greenhouse gas emissions by at least 55% by 2030.
At the same time, with this initiative, the European Union plans to achieve a 40% share of electricity from renewable resources in total consumption by 2030 at the latest. Thus, the original plan of 32% was increased by a further 8%. All the Countries of the European Union are to contribute to this objective.
Due to the increasing electricity consumption, the planned shutdowns of nuclear power plants in the EU and the speculative nature of European Emission Allowances trading. There was an unprecedented increase in energy prices in 2021.
The rise in energy prices will continue to support the expansion of a number of renewable projects. In particular in relation to energy saving for industrial companies and energy-intensive operations. We will also increasingly see renewable resources projects that will not depend on a fixed feed-in tariff as before. But will also be able to operate commercially at market electricity prices.
The Ministry of Economy of the Slovak Republic wanted to modify the support system to so-called auctions. But we will probably see projects that will be able to operate commercially on the market rather than the auctions themselves.
In particular, the role of the Ministry of Economy in this area should be to remove barriers to market entry. Such as charges for connecting a renewable resource before obtaining a building permit or a system access fee (G-component) by which distribution companies disproportionately recover their losses.
The Ministry of Economy should also simplify the EIA process. And the Slovak electricity transmission system company authorization process so that interesting renewable projects can be implemented at all.
Another significant impulse in the expansion of renewable resources will undoubtedly be electromobility, which will bring significant challenges to the market. Particularly in the areas of generation, distribution, consumption, and further storage of electricity.
Distribution companies will have the most important role in this area. As they will have to maintain stability in the distribution network. Despite the increasing share of non-predictable renewable resources in the overall energy mix.
We therefore expect significant investment, particularly in the distribution network. Which should be sufficiently prepared for these changes.