The market for renewable energy in Slovakia is expected to register a CAGR of more than 1% in the forecast period of 2020 - 2025. Factors, such as supportive government policies and efforts to meet the rising power demand using renewable energy sources, are expected to be significant contributors to the growth of the market. With the commitment of the government to obtain maximum energy from renewable and to reduce carbon emissions, the share of renewable energy is expected to grow significantly in the coming years. On the other hand, factors, like a booming natural gas market which is competing with renewable energy and the limited energy supply from variable renewable energy sources, are few restraining factors for the Slovakian renewable energy market.
- Solar energy in Slovakia is expected to witness significant growth in the market, with a hold of 585 GWh in total electricity generation in 2018.
- The future development of the renewable energy sector in Slovakia with the growth of energy consumption and substitution of fossil fuels by renewable by utilizing actual renewable energy potential is likely to promote the renewable energy market. Moreover, the growth of renewable energy technology replacing fossil fuel is expected to provide opportunities for growth in the coming future.
Key Market Trends
Solar Energy is Expected to Have a Significant Growth in the Market
- Slovakia plans to support renewables that can replace fossil fuels in a way ensuring the safety of electricity and heat production without any great additional costs. After replacing solid fossil fuels with renewable energy sources, Slovakia is expected to be one of the cleanest countries in the entire EU.
- The European Commission’s vision is to reach the target i.e., 27% of final energy consumption from renewable sources by 2030. The 27% target for final energy consumption from renewable sources by 2030 is likely to increase the RES share of electricity consumption to about 50% in the EU.
- According to the latest statistics published by the International Renewable Energy Agency, Slovakia had around 472 MW of installed solar power generation capacity in 2019. Solar PV is expected to claim 44% of the clean energy capacity needed to generate 2.4 TWh of electricity by 2021.
- The consumption of energy produced from renewable energy sources is estimated to reach 6,954 GWh in 2020 and 8,827 GWh in 2030. In particular, solar energy provides an important contribution to meet energy needs in the electricity sector. In addition to this, the quantity of installed power capacity of solar PV is expected to reach 600 MW by 2020 and 750 MW by 2030.
- Since March 2010, Slovenské elektrárne has been operating two photovoltaic power plants: Mochovce photovoltaic power plant and Vojany photovoltaic power plant.
- With upcoming and under construction solar projects, the solar energy market is dominating at a considerable rate.
Growing Potential of Bioenergy is Expected to Drive the Market
- Slovakia is using wood biomass in heat production but in terms of the environment, the biogas plants generating heat from animal and plant production waste are beneficial. The ministry wants to accelerate the usage of second-generation biofuels produced from non-food crops, such as wood, organic waste, food crop waste, and specific biomass crops.
- Moreover, these advanced biofuels secure high reductions in the emissions of greenhouse gases.
- Biomass can be utilized in different ways. The biogas utilization with combined heat and power production and biofuels for transportation is becoming more competitive in the Slovakian market even without subsidies. All these technologies are available in Slovakia.
- As of 2019, Slovakia had a total bioenergy installed capacity of 243 MW and the total primary energy supply by biofuels and waste was 1369 ktoe.
- In a 2018 review of the Slovakia’s energy policy, the International Energy Agency (IEA) stated that Slovakia has plans to meet its national renewables target mostly with unsustainable biomass, placing pressure on the stability of the country’s ecosystems. Slovakia has great potential to use biomass from own forests.
The Slovakian renewable energy market is consolidated. Some of the major companies include Slovenské elektrárne AS, Axpo Holding AG, CONTOURGLOBAL PLC, VP Solar, and Acrosun SRO.
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