The IEA regularly conducts reviews of the energy and climate related policies of its member countries and provides recommendations - a process that supports energy policy development and encourages the exchange of international best practices and experiences. The latest review of the Slovak Republic took place in October 2023. The review finds that the Slovak Republic has made significant progress in reaching its climate and energy goals owing to its low emissions electricity system, with nuclear, hydropower and other renewables combined meeting around 85% of the country's electricity demand. The IEA report highlights the central role nuclear power plays in the country's long-term decarbonisation strategy, as well as ensuring energy security. The government's policy is well aligned with public support to advance the country's nuclear power fleet.
The Slovak Republic 2024: Energy Policy Review also highlights the work that the country needs to undertake in end-use sectors to achieve its climate neutrality goal by 2050, specifically in industry and buildings. The Slovak Republic's industrial base is dominated by energy-intensive industries, which are heavily reliant on fossil fuels for continued production. This leaves producers and industries susceptible to volatility and price shocks. The report notes that the Slovak Republic is well placed to address these risks by fully leveraging the reliability of its low emissions power system to decarbonise domestic energy-intensive industries. To this end, the government is actively pursuing plans for the construction of additional nuclear power plants and exploring the role small modular reactors could play in the future. Furthermore, the IEA encourages the government to develop a long-term strategic roadmap to address all elements of the nuclear power value chain and the role that it can play in reaching net zero goals.
The Slovak Republic's building sector accounts for the largest share of energy consumption, with the building stock heavily reliant on natural gas for heating. A combination of energy efficiency measures and electrification, where possible, can help further reduce the Slovak Republic's reliance on fossil fuel imports and bring down emissions. Efficiency improvements are needed in publicly-owned buildings, which lag renovations in the private building stock. To monitor and track progress, the IEA encourages the Slovak Republic to develop a database to support policy design in this area and to enhance the overall energy efficiency performance in public buildings. Moreover, policymakers must look at how to stimulate the uptake of efficient, low emissions technologies among consumers and encourage a move away from fossil fuels.
The report finds that carbon taxation and fossil fuel prices are not well-aligned with long term climate and energy targets. As such, fiscal policy and taxation can be tools to support the energy transition and change existing consumer trends. The government of the Slovak Republic took swift action to protect vulnerable consumers from the exceptionally high energy prices in 2021 and 2022, broadening the definition of 'vulnerable consumers' beyond households and extending a cap on retail prices through 2024. Rather than subsidised retail tariffs, the IEA report recommends implementation of targeted support mechanisms for less well-off households to shield the most vulnerable consumers from wholesale market fluctuations.
Overall, the IEA report concludes that the Slovak Republic is making significant steps towards its goal of climate neutrality by 2050, which is reinforced by the preparation of the draft national act on climate change which would enshrine carbon neutrality by 2050 into law. The Slovak Republic must consider how it will implement its pathway to reach these ambitious goals and how to tap its available potential, notably renewable energy sources, to provide secure and affordable energy.
