Eversheds Sutherland Managing Partner Bernhard Hager talks about energy in Slovakia in 2025.
CEELM: What is in the pipeline in terms of legislation that you believe will have the most impact on the energy sector in Slovakia?
Hager: There is a whole package of amendments to the Energy Act, Network Regulation Act, and Act on Renewables in Parliament that would bring several significant changes.
We can expect, among other things, the regulation of (1) flexible connection contracts to support the development of renewable energy sources in areas with limited or no grid connection capacity, (2) fixed-price electricity supply or electricity pooling contracts for a fixed period of time, (3) suppliers’ risk management in the electricity sector, (4) setting of support in the form of a balancing contract for the production of electricity from selected renewable sources. Additionally, we expect the introduction of (1) a mechanism for credits issued for electricity from renewable sources used in transport and (2) the legal framework for RES targets in the transport and industrial sectors. Lastly, we foresee changes regarding biomass and other related changes in the area of consumer protection.
Further, there will be a new EIA Act and new construction legislation that should remove red tape and accelerate the permitting and realization of energy projects.
CEELM: Of the above, which ones are you/your clients most excited about and why?
Hager: Not only in energy but in general, clients expect that the new construction laws and pertaining legislation will accelerate the realization of projects and make everything more efficient. As for the energy sector specifically, clients expect that mainly renewable projects and projects for energy efficiency are becoming a reality and financially more sound.
CEELM: On the flip side, which ones are you/your clients dreading the most and why?
Hager: Energy prices are still high and highly volatile. The Slovak government enacted a so-called “consolidation package” to improve the tight situation of the state budget. This includes not only an increase in taxes but also cutting state expenses. In such a situation, it is questionable to which extent the state will continue with its support for energy prices, and this makes planning and pricing difficult for clients.
CEELM: What are the main/largest energy projects you expect to be finalized in Slovakia in 2025?
Hager: In 2025, the fourth block of the Mochovce nuclear power plant should be put into regular operation. Then, Slovakia will have 70% of its electricity from nuclear sources. There were also projects planned for the co-incineration of waste. However, in the most promising project – Sala, the minister stopped the EIA process and sent the project back to the start. In Surany, a battery gigafactory is planned, and the Slovak Republic has started to buy the land and prepare the framework for the investor.
CEELM: What is the biggest challenge for the energy sector in Slovakia at the moment, in your view, and what is the likelihood you’ll see it overcome in 2025?
Hager: Energy prices are difficult to foresee, and the geopolitical situation is currently unpredictable. There are also uncertainties on the demand side. Industry in general, and the automotive sector in particular, is slowing down production and, as a result, the demand for energy is decreasing.
This article was originally published in Issue 12.1 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.
