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Slovakia Power SWOT
- 16 May 2022
- Market largely liberalised with the EU's Third Package Directives implemented.
- Supply reliability bolstered by interconnection with the Czech Republic, Hungary, Poland and Ukraine.
- Stable overall macroeconomic and political backdrop.
- Strong institutions and EU membership provide a robust legal framework adding stability for investors.
- Significant state control persists in the power market.
- Transmission system not ready to support new renewable energy sources with a large reliance on inflexible nuclear power generation.
- Slovakia's economy is vulnerable to any shifts in external demand due to the high share of exports in GDP.
- Perceptions of corruption and widespread popular mistrust of the political class remain prevalent.
- Plans to develop biomass in remote and mountainous areas where natural gas is not available.
- New auctions in the renewable segment will provide opportunities for solar and geothermal developers.
- Consumer/household demand in the economy as a whole supports power demand.
- EU fiscal support for transmission system upgrades could enable increased renewable capacity growth.
- Plans to improve grid management and interconnect to regional markets will unlock potential growth in the renewables segment.
- Slovakia faces weaker growth outlook due to pandemic-related headwinds, the surge in energy prices and persisting supply chain disruptions.
- Russia-Ukraine conflict has created significant uncertainty surrounding future of Russian gas imports.
- The government is seeking to deepen its control over the functioning of the energy market in order to ensure lower end-user prices.
- Delays and cost overruns hinder the nuclear sector, with Slovenské elektrárne having consistently been overly ambitious regarding commissioning timelines.
- State focus and support is provided to the nuclear sector drawing support from other forms of generation such as non-hydropower renewables.
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