Energy Transition: IEA Highlights Slovakia’s Progress and Challenges in Climate Goals

The International Energy Agency (IEA) has commended the Slovak Republic for its significant strides toward climate and energy goals, driven by its low-emissions electricity system, while emphasizing the need for further progress in renewable energy adoption and energy efficiency.

In its latest 2024 Energy Policy Review, conducted in October 2023, the IEA highlighted that nuclear power, hydropower, and other renewables meet approximately 85% of Slovakia’s electricity demand. This robust low-emissions system plays a key role in the country’s energy security and decarbonization efforts, particularly for hard-to-abate sectors.

Nuclear Power at the Core of Decarbonization Strategy

The report underscores the critical role of nuclear power in Slovakia’s long-term decarbonization strategy. Public support and government policies align in advancing the country’s nuclear power fleet, with plans for additional nuclear plants and small modular reactors (SMRs). The IEA recommends Slovakia develop a comprehensive roadmap to address the nuclear power value chain and integrate it effectively into its 2050 net-zero goals.

Challenges in Industry and Buildings

Despite progress, the IEA flagged significant challenges in Slovakia’s industrial and building sectors.

• Industrial Reliance on Fossil Fuels: Slovakia’s energy-intensive industries remain heavily dependent on fossil fuels, exposing them to market volatility. The IEA suggests leveraging the reliability of low-emissions power systems to decarbonize these sectors.
• Building Sector Emissions: Accounting for the largest share of energy consumption, the building sector relies predominantly on natural gas for heating. The IEA recommends energy efficiency measures, electrification, and improved renovation efforts, especially for public buildings, which lag behind private-sector upgrades.

To address these issues, the IEA suggests creating a robust database to monitor energy efficiency progress and inform policy development.

Fiscal Policies and Consumer Protection

The report calls for better alignment between carbon taxation, fossil fuel pricing, and climate targets. While the Slovak government acted swiftly to protect vulnerable consumers during the energy price spikes of 2021 and 2022 by capping retail tariffs through 2024, the IEA recommends targeted support mechanisms to shield low-income households from wholesale market fluctuations without subsidizing tariffs broadly.

Pathway to Climate Neutrality

Slovakia is preparing a draft national act on climate change to enshrine its 2050 carbon neutrality goals into law. The IEA encourages the country to enhance renewable energy adoption and build a secure, affordable energy future as part of its transition roadmap.

IEA Recommendation Highlights:

• Advance nuclear power expansion and explore SMR potential.
• Improve energy efficiency in public and private buildings.
• Develop fiscal policies supporting emissions reductions and the energy transition.
• Implement targeted mechanisms to protect vulnerable consumers.

The report concludes that while Slovakia has made notable progress, achieving its climate neutrality target by 2050 will require decisive action to tap into its renewable energy potential and address persistent sectoral challenges.