According to unofficial information published in the Slovak media, the Ministry of Economy is working on significant amendments to the laws concerning the support of energy from renewable resources and high efficiency cogeneration.

Under the new rules, sources with an installed capacity in excess of 100kW will be entitled to the feed-in-premium rates (whereby a premium above the market price is guaranteed) instead of the existing feed-in-tariff system. In addition, the new sources will be selected in an auction organised by the Ministry of Economy. Further limitations are planned which will mainly impact production from biomass or biogas.

The changes are considered to be a response of the government in particular to the financial shortfall of the three electricity distribution companies in Slovakia in connection with the purchase of electricity from renewable sources and cogeneration, the increase of the tariff for the system operation which is paid by the consumers and the abundance of purchased electricity.

We shall follow the legislative process and provide any necessary updates. It is likely the new rules will trigger substantial acquisition activity in the energy sector in Slovakia.