In early February, the International Energy Agency published its in-depth review of Slovak energy policies with important findings on sustainable energy. The key objectives of Slovak energy policy include energy efficiency, reducing energy intensity, reducing dependence on energy imports, expanding the use of nuclear power, increasing the share of renewables and supporting the use of alternative fuels for transport.
Energy security is high because of the dependence on Russian natural gas and oil – 99% of Slovak crude oil supply comes through one pipeline from Russia. Natural gas accounts for 30% of the Republic’s primary energy supply, with a high share of that for residential heating.
The IEA commended the Slovak Republic for decoupling economic growth from the growth in GHG emissions, although it realises that economic restructuring during the transition in the 1990s was the main driver. The Slovak Republic remains amongst the 10 most GHG-intensive economies in the OECD, yet the country has had no problem meeting its international commitments for emissions reductions and has exceeded its Kyoto target, leaving a significant surplus of tradable emissions allowances that could be sold to fund other national initiatives.
The IEA also states that the Republic’s participation in the EU-Emissions Trading System was characterised by an over-allocation of allowances, meaning that there was an absence of challenging targets. The IEA states that this could explain why climate change has not been a high government priority.
The report points out that the country’s infrastructure is ageing, requiring considerable investment for replacement and investment. It is interesting that on February 14th European Energy Ministers stressed the importance of investing in infrastructure. One area that is advancing is nuclear energy – two new plants will be commissioned in 2012 and 2013. The IEA states that this means the electricity company “will be strategically positioned with a fleet of low-carbon capacity.”
In terms of efforts on energy efficiency, the results are mixed. The analysis shows that energy efficiency has had a low profile in some ministries reflecting low levels of programme funding. It states that access to funding for energy efficiency projects “is still hampered by a lack of transparency and excessive administrative barriers.” The report finds that there have been impressive results in energy efficiency in the past five years but it provides only an indicator of energy intensity, which is not a good proxy for energy efficiency. Energy intensity remains higher than the European average and there is still considerable potential for efficiency in buildings and transport, in particular. The high energy intensity is explained by the predominance of industry, which still represents 40% of total final consumption
The IEA also states that improving energy efficiency in the electricity and heating sectors would be important as well. Because the country has a high share of district heating there is no comfort in the IEA conclusion that “improving the efficiency and lowering the environmental impact of district heat production and consumption has been a low priority . . .”
The Slovak Republic submitted its 2011 National Energy Efficiency Action Plan to the European Commission and lowered its second period (2011-2013) target, compared to the first period of 2007-2010, “owing to budgetary concerns.” This is a rather disturbing development.
In terms of renewable energy, the emphasis has been on biomass because of its high potential and relatively low cost. Support for other “more expensive and intermittent renewable energy technologies, such as solar and wind, has been reduced in order to avoid placing a heavy financial burden on final consumers and to deal with issues related to the safety of the electricity grid.” The Government has indicated that “expensive renewable energy sources are not at the core of its climate change strategy which aims to reduce GHG emissions at least cost, using a mix of technologies, including nuclear.” The report does not say whether the country is on track to meet its renewable energy obligations under the EU directives on renewable energy.
The overall conclusion on the Slovak Republic’s energy policies is mixed. There are many questions raised about the sustainability of its energy policies and this is probably equally true for many of the new EU member states. EiD will be following developments in the Slovak Republic and elsewhere in Europe to get a better picture of progress in promoting sustainable energy.
Energy in Demand - Sustainable Energy - Rod Janssen 