Energy regulator chief: Slovakia to end subsidies for renewables

Jozef Holjenčík, chairman of the Regulatory Office for Network Industries (ÚRSO), said he sees no point in continuing state support for renewable energy sources. Euractiv reports. This controversial statement comes at a time when Slovakia, according to the European Commission, is failing to meet European Union targets aimed at increasing the share of green energy in the energy mix. Hundreds of renewable energy producers could be affected by the end of the support.

The ÚRSO chairman’s opposition to renewables is nothing new, however. Over the past month, Holjenčík has said several times that the era of “green” speculators is over, stressing the need to return to “common sense.”

The regulator’s announcement may therefore run directly counter to current EU energy policy, which is based on increasing the share of renewables in the overall energy mix. Ambitious targets for developing low-emission renewable energy sources are meant to be supported by subsidies to ensure they are more accessible and competitive.

Guaranteed purchase prices

The sticking point is financial support through guaranteed purchase prices for electricity from solar power plants, wind turbines, biogas plants and hydropower sources. This support is nearing its end after 15 years, and according to the latest information, ÚRSO has no intention of continuing it.

“ÚRSO believes that financial support for renewable energy sources should be limited to the period needed to integrate them into the market and make them competitive,” the office says.

According to Radoslav Igaz, ÚRSO spokesperson, ending the support this year would affect 89 producers, with a further 600 recipients affected in 2026. Support in the form of priority connection of facilities to distribution networks, access to systems, and the transmission, distribution and supply of electricity will remain unchanged.

It should be noted that the office proposed changing the support scheme for electricity purchases back in late 2020. At the time, the then head of the office suggested reducing the subsidy and spreading it over a longer period. This would have resulted in slower price growth and also prevented producers from disconnecting their generating facilities once the 15-year support period ended.

Threat to targets

Since support for the construction and operation of renewable energy sources is a key driver, especially in the early stages of building new facilities, there is a risk that once the support ends, plant owners may decide that operating them is no longer economically viable. This is particularly likely when the market experiences periods of negative electricity prices.

At the end of 2023, the European Commission published a recommendation following its analysis of Slovakia’s integrated climate plan for mitigating climate change. Among other things, the Commission criticised the country for setting insufficiently ambitious targets for the share of renewables in its energy mix.

The current ÚRSO chairman, however, believes that clean technologies’ share of electricity generation is exceptionally stable thanks to the high share of nuclear power, which stands at 75%. The question remains, however, whether nuclear energy will be supported under the taxonomy across the EU. Slovakia is not the only country that has long advocated for greater integration of nuclear power to reduce emissions.