Slovak energy investors pause projects amid regulatory uncertainty

Energy investors in Slovakia are expressing uncertainty regarding a new state support mechanism for high-efficiency combined heat and power (VÚ KVET) projects. While the Ministry of Economy selected 29 companies for 65 projects totaling 186.5 MW, the actual execution of these investments is at risk due to regulatory ambiguity.

The state intended to guarantee electricity purchase prices for 15 years, providing premiums if market prices fall below certain levels. However, the mechanism for adjusting these prices based on variables like gas prices or emission quotas lies with the Regulatory Office for Network Industries (ÚRSO) rather than the Ministry.

Investors report that the lack of clarity regarding how ÚRSO will function has led several firms to suspend project preparations. This includes a major player responsible for more than half of the total capacity won in the auction. The Ministry maintains a separation of competencies, while the regulator holds a different view on its role in the scheme.