Energy policies of IEA countries: Slovak Republic 2011: The Slovak Republic

160 Pages·2011·3.297 MB·English

by  International Energy Agency

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to specific restrictions that limit its
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Energy Policies of IEA Countries
The Slovak Republic
2012
Review
Energy Policies of IEA Countries
The Slovak Republic
The Slovak Republic imports virtually all of its natural gas and crude oil
from a single supplier, the Russian Federation. Energy security is therefore
an overarching concern and priority in the Slovak Republic’s energy policy
agenda. The government is taking steps to diversify supplies and build on
lessons learned from the gas supply disruption in 2009.
Enhancing regional co-operation, particularly in the development of gas and
electricity interconnections, is an essential step towards meeting the dual
policy objectives of enhancing energy security and market competition.
The Slovak Republic has moved forward with coupling its electricity market
with the Czech Republic’s, and supports the construction of a North-South
pipeline connection that would link planned LNG terminals in Croatia and
Poland, including an interconnector to Hungary.
Despite a sharp decline in greenhouse gas (GHG) emissions since 1990,
the Slovak Republic remains a GHG-intensive economy by OECD standards,
with energy-related CO emissions accounting for over 70% of total GHG
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emissions. The country must continue to implement policies that ease the
transition to a low-carbon economy. Nuclear power and renewable energy
can play crucial roles in the Slovak Republic’s efforts to decarbonise its
electricity production. Significant efforts can also be made to improve energy
efficiency, especially in the transport and building sectors. District heating is a
notable area with huge potential for reducing national GHG emissions.
This review analyses the energy-policy challenges currently facing the
Slovak Republic, and provides sectoral studies and recommendations for
further policy improvements. It is intended to help guide the country
towards a more secure and sustainable energy future.
-:HSTCQE=U^]WYY:
(61 2011 07 1P1)
978-92-64-09824-4 €75
Energy Policies of IEA Countries
The Slovak Republic
2012
Review
INTERNATIONAL ENERGY AGENCY
The International Energy Agency (IEA), an autonomous agency, was established in November 1974.
Its primary mandate was – and is – two-fold: to promote energy security amongst its member
countries through collective response to physical disruptions in oil supply, and provide authoritative
research and analysis on ways to ensure reliable, affordable and clean energy for its 28 member
countries and beyond. The IEA carries out a comprehensive programme of energy co-operation among
its member countries, each of which is obliged to hold oil stocks equivalent to 90 days of its net imports.
The Agency’s aims include the following objectives:
n Secure member countries’ access to reliable and ample supplies of all forms of energy; in particular,
through maintaining effective emergency response capabilities in case of oil supply disruptions.
n Promote sustainable energy policies that spur economic growth and environmental protection
in a global context – particularly in terms of reducing greenhouse-gas emissions that contribute
to climate change.
n Improve transparency of international markets through collection and analysis of
energy data.
n Support global collaboration on energy technology to secure future energy supplies
and mitigate their environmental impact, including through improved energy
efficiency and development and deployment of low-carbon technologies.
n Find solutions to global energy challenges through engagement and
dialogue with non-member countries, industry, international
organisations and other stakeholders.
IEA member countries:
Australia
Austria
Belgium
Canada
Czech Republic
Denmark
Finland
France
Germany
Greece
Hungary
Ireland
Italy
Japan
Korea (Republic of)
Luxembourg
Netherlands
New Zealand
Norway
Poland
Portugal
Slovak Republic
© OECD/IEA, 2012 Spain
International Energy Agency Sweden
9 rue de la Fédération Switzerland
75739 Paris Cedex 15, France Turkey
www.iea.org United Kingdom
United States
Please note that this publication
is subject to specific restrictions
The European Commission
that limit its use and distribution.
The terms and conditions are available also participates in
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Table of contents 
TABLE OF CONTENTS 
1. EXECUTIVE SUMMARY AND KEY RECOMMENDATIONS .......................................................................... 9 
Executive summary ...................................................................................................................... 9 
Key recommendations ............................................................................................................... 14 
PART I POLICY ANALYSIS .......................................................................................................15 
2. GENERAL ENERGY POLICY...................................................................................................................... 17 
Country overview ....................................................................................................................... 17 
Supply and demand ................................................................................................................... 18 
Energy policy institutions ........................................................................................................... 22 
Key energy policy directions ...................................................................................................... 24 
Energy security ........................................................................................................................... 29 
Regional initiatives ..................................................................................................................... 30 
Market reforms .......................................................................................................................... 31 
Energy prices, taxes and subsidies ............................................................................................. 31 
Critique ....................................................................................................................................... 33 
Recommendations ..................................................................................................................... 36 
3. ENERGY AND CLIMATE CHANGE ........................................................................................................... 37 
CO  emissions from fuel combustion ......................................................................................... 37 
2
Targets and objectives ............................................................................................................... 39 
Emissions projections ................................................................................................................. 40 
Policies and measures ................................................................................................................ 41 
Air quality ................................................................................................................................... 44 
Critique ....................................................................................................................................... 45 
Recommendations ..................................................................................................................... 47 
4. ENERGY EFFICIENCY ............................................................................................................................... 49 
Overview .................................................................................................................................... 49 
Institutional framework ............................................................................................................. 51 
Policies and measures ................................................................................................................ 52 
Critique ....................................................................................................................................... 55 
Recommendations ..................................................................................................................... 58 

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Table of contents 
PART II SECTOR ANALYSIS .....................................................................................................59 
5. RENEWABLE ENERGY ............................................................................................................................. 61 
Supply and demand ................................................................................................................... 61 
Renewable energy potential and current use ........................................................................... 64 
Policies and measures ................................................................................................................ 66 
Grid access and stability ............................................................................................................. 71 
Critique ....................................................................................................................................... 71 
Recommendations ..................................................................................................................... 73 
6. NATURAL GAS ........................................................................................................................................ 75 
Supply and demand ................................................................................................................... 75 
Industry structure ...................................................................................................................... 76 
Market reform ........................................................................................................................... 77 
Infrastructure ............................................................................................................................. 77 
Gas security policy ..................................................................................................................... 79 
Prices and tariffs ........................................................................................................................ 80 
Critique ....................................................................................................................................... 82 
Recommendations ..................................................................................................................... 84 
7. OIL .......................................................................................................................................................... 85 
Supply, demand and imports ..................................................................................................... 85 
Infrastructure ............................................................................................................................. 87 
Emergency response policy and emergency organisation ........................................................ 90 
Emergency oil reserves .............................................................................................................. 91 
Prices and taxes ......................................................................................................................... 93 
Critique ....................................................................................................................................... 94 
Recommendations ..................................................................................................................... 94 
8. COAL ...................................................................................................................................................... 95 
Supply and demand ................................................................................................................... 95 
Lignite mining ............................................................................................................................. 96 
Coal‐fired power plants ............................................................................................................. 98 
Coal policy and subsidies ........................................................................................................... 99 
Critique .....................................................................................................................................100 
Recommendations ...................................................................................................................100 
9. ELECTRICITY .........................................................................................................................................101 
Supply and demand .................................................................................................................101 
Industry structure ....................................................................................................................104 
Policy directions and regulatory framework ............................................................................106 
Network infrastructure and operations ...................................................................................108 

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Table of contents 
Prices and tariffs ......................................................................................................................110 
Critique .....................................................................................................................................112 
Recommendations ...................................................................................................................114 
10. HEAT ..................................................................................................................................................115 
Supply and demand .................................................................................................................115 
Market structure ......................................................................................................................118 
Policy framework .....................................................................................................................118 
Regulation ................................................................................................................................120 
Prices ........................................................................................................................................121 
Critique .....................................................................................................................................121 
Recommendations ...................................................................................................................123 
11. NUCLEAR ENERGY ..............................................................................................................................125 
Background ..............................................................................................................................125 
Institutional arrangements ......................................................................................................125 
Present status of nuclear power plants ...................................................................................126 
Critique .....................................................................................................................................128 
Recommendations ...................................................................................................................129 
PART III ENERGY TECHNOLOGY ........................................................................................... 131 
12. ENERGY TECHNOLOGY AND R&D ......................................................................................................133 
Research and development policy ...........................................................................................133 
Institutions ...............................................................................................................................134 
National R&D budget ...............................................................................................................135 
Key research areas and selected projects ................................................................................137 
International collaboration ......................................................................................................138 
Critique .....................................................................................................................................139 
Recommendations ...................................................................................................................140 
PART IV ANNEXES ............................................................................................................... 141 
ANNEX A: Organisation of the review .....................................................................................................143 
ANNEX B: Energy balances and key statistical data ................................................................................147 
ANNEX C: International Energy Agency “Shared Goals” .........................................................................153 
ANNEX D: Glossary and list of abbreviations ..........................................................................................155 

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Table of contents 
List of figures, tables and boxes 
FIGURES 
1.   Map of the Slovak Republic ................................................................................................. 16 
2.   Total primary energy supply, 1993 to 2030 ......................................................................... 18 
3.   Breakdown of total primary energy supply in IEA member countries, 2010 ...................... 19 
4.   Domestic energy production by source, 1993 to 2010 ....................................................... 20 
5.   Total final energy consumption forecasts, 2010 to 2030 .................................................... 21 
6.   Final energy use in the Slovak Republic, 1993 to 2009 ....................................................... 21 
7.   Final energy use in IEA countries, 2009 ............................................................................... 22 
8.   Administrations involved in energy policy and implementation ......................................... 24 
9.   Average energy prices in the residential sector, 2010 ........................................................ 32 
10.  Average energy prices in the industry sector, 2010 ............................................................ 32 
11.  CO  emissions by fuel, 1993 to 2009 ................................................................................... 38 
2
12.  CO  emissions by sector, 1993 to 2009 ............................................................................... 38 
2
13.  Energy‐related CO emissions per GDP in the Slovak Republic and in other selected 
2 
  IEA member countries, 1993 to 2009 .................................................................................. 39 
14.  Projections of aggregated GHG emissions ........................................................................... 40 
15.  Total final consumption by sector and by source, 1993 to 2009 ........................................ 50 
16.  Energy intensity in the Slovak Republic and other selected IEA member countries,  
  1993 to 2010 ........................................................................................................................ 51 
17.  Renewable energy as a percentage of total primary energy supply, 1993 to 2030 ............ 61 
18.  Electricity generation from renewable energy as a percentage of total generation  
  in IEA member countries, 2010 ........................................................................................... 62 
19.  Gas supply by sector, 1993 to 2009 ..................................................................................... 76 
20.  Natural gas infrastructure .................................................................................................... 78 
21.  Gas prices in IEA member countries, 2010 .......................................................................... 81 
22.  Gas prices in the Slovak Republic, 1980 to 2010 ................................................................. 82 
23.  Oil supply by sector, 1993 to 2009 ...................................................................................... 86 
24.  Refinery output vs. demand in the Slovak Republic ............................................................ 87 
25.  Oil infrastructure in the Slovak Republic ............................................................................. 88 
26.  Regional oil pipelines ........................................................................................................... 89 
27.  Slovak compliance with stockholding obligations under the  
  International Energy Program ............................................................................................. 92 
28.  Fuel prices in IEA member countries, second quarter 2011 ................................................ 93 
29.  Coal supply by sector, 1993 to 2009 .................................................................................... 96 
30.  Brown coal reserves ............................................................................................................. 97 
31.  Estimated extraction of brown coal until 2030 ................................................................... 97 
32.  Gross electricity generation by source, 1993 to 2010 .......................................................102 
33.  Electricity generation by source in IEA member countries, 2010 .....................................102 
34.  Electricity demand by end‐use sector, 1993 to 2009 ........................................................103 
35.  Cross‐border power flows, 2010 .......................................................................................105 
36.  Slovak transmission system ...............................................................................................109 
37.  Outlook for electricity production from renewable energy sources .................................110 
38.  Industrial electricity prices in IEA member countries, 2010 ..............................................111 

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Table of contents 
39.  Residential electricity prices in IEA member countries, 2010 ...........................................111 
40.  Final energy use breakdown, 2009 ....................................................................................115 
41.  Heat consumption per capita in OECD countries, 2009 ....................................................116 
42.  Final energy use of heat by sector, 2009 ...........................................................................116 
43.  Fuel mix in final energy consumption of heat, 2009 .........................................................117 
44.  Gross heat production by plant type, 2009 .......................................................................117 
45.  Gross heat production in the district heating system by source, 2009 .............................118 
46.  Government energy R&D expenditures, 2008 to 2010 .....................................................135 
47.  Government energy R&D budgets in IEA member countries, 2009 ..................................136 
TABLES 
1.   Aggregated GHG emission projections by sector ................................................................ 41 
2.   Installed capacity for electricity generation from renewable energy sources in 2009 ....... 63 
3.   National targets for renewable energy sources to 2020 ..................................................... 67 
4.   Feed‐in tariffs ....................................................................................................................... 68 
5.   Obligatory share of renewables in transport fuels .............................................................. 71 
6.   Gas supplier switching ......................................................................................................... 77 
7.   Oil demand in the Slovak Republic ...................................................................................... 86 
8.   Operating coal‐fired power plants ....................................................................................... 98 
9.   Slovak generating capacity, production and capacity utilisation, 2009 ............................103 
10.  Nuclear power plants in the Slovak Republic ....................................................................127 
11.  Government R&D expenditures by category, 2008 and 2009 ...........................................136 
BOXES 
1.   Extract from the Government Manifesto: Energy ............................................................... 28 
2.   IEA 25 Energy Efficiency Recommendations ....................................................................... 56 
3.   Final energy consumption: statistical differences between IEA and EU data ..................... 67 
4.   What is a smart grid? .........................................................................................................113 

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