Energy Security in Slovak Republic
FSS MUNI, Brno, 28th March 2012
Michal Hudec, energia.sk
Introduction
For the beginning:
a brief introduction,
a question: What does energy security mean:
- for country like Slovakia (importing country)?
- for country like Russian Federation (exporting country)?
It is not enough to look at energy security from importer’s point of view, but at
the same time, looking at it from exporter’s point of view helps with
understanding the issue in a broader and more complex way...
Structure of lecture
The main aim of this lecture is to discuss:
evolution of energy security in Slovakia,
„framework“ for energy security in Slovakia,
basic facts and numbers,
role of Russia in energy security of Slovakia,
projects currently under development,
the main issues (challenges) linked to energy security of Slovakia.
Evolution of energy security in Slovakia
Key determinants for energy security:
governments 1993 – 2009: more words, less acts,
timing of privatization of strategic energy companies,
feeling of highly important transit country for Russian natural gas and oil,
ignoring the importance + impact of new infrastructure projects in abroad (eg.
Nord + South Stream, Nabucco, North – South Gas Interconnection etc.),
before 2009, no serious negative experience with energy supplies disruption.
Legal framework of energy security in Slovakia
Basic primary and secondary legislative acts:
Act no. 656 / 2004 (energy bill)
Act no. 309 / 2009 (renewable energy sources and combined heat and power)
Act no. 276 / 2001 (regulation of networked industries)
National Energy Security Strategy (2008)
National Action Plan for Renewable energy sources (2010)
Two basic bills to be novelized (energy bill, regulation bill) in 2012, the others
should be updated in a short term (energy security strategy, RES bill, CHP...)
High dependence on primary energy sources import
According to International Energy Agency (Report from 2012; data 2009/10):
Total primary supply (TPES): 17,3 Mtoe:
Natural Gas 30 % (99 % imported from Russia)
Nuclear Energy 22 % (100 % imported from Russia)
Oil 21 % (98 % imported from Russia)
Coal (hard + brown) 20 % (hard coal: 100 % imported; CZ, RU, PL, US)
Renewables (RES) 7 %
Inland energy production: 6,1 Mtoe (36 %)
Total final consumption (TFC): 10,8 Mtoe
Basic figures – Slovakia
Source: IEA
Basic figures – history and future forecast (TPES)
Source: IEA
Energy mix – TPES (comparison with OECD countries)
Source: IEA
Average energy prices in household sector (2010)
Source: IEA
Average energy prices in the industry sector (2010)
Source: IEA
Energy intensity in the industry and energy sector
Source: DG Energy (European Commission)
Energy intensity in general (IEA)
According to International Energy Agency (Report from 2012; data 2009/10):
energy use per capita: 3,1 toe per capita (OECD average: 4,3 toe per capita)
energy intensity: 0,18 toe per 1.000 USD PPP (OECD: 0,16 USD PPP)
Since 2000, noticable improvement has been reached::
energy use per capita decreased by 6 percent
energy intensity decreased by 39 percent (!!)
Natural Gas
Source: IEA
Infrastructure for Natural Gas
Slovakia has been the biggest single transport country within the EU:
annual capacity of „eustream“ company: more than 90 bcm
annual consumption of Slovakia: up to 5,5 bcm
annual utilization of „eustream“ capacities: more than 76 bmc (2008)
annual capacity of future SK-HU interconnection: up to 5 bmc (2014)
Infrastructure projects avoiding Slovakia:
Nord Stream I: annual capacity: 27,5 bcm (in operation)
Nord Stream II: annual capacity: 27,5 bcm (2012/13)
South Stream: annual capacity: 63 bcm (2015)
Nabucco (theoretically): annual capacity: 31 bcm (2017)
„Gas Crisis“ 2009
On 1st January 2009 natural gas deliveries were stopped:
21 days without the deliveries of natural gas from Gazprom
reverse flow from Czech republic enabled and activated
significant shortage of gas deliveries for industry
households, schools, heating companies etc. without a gas shortage
significant economic impact – total lost: 1 billion EUR per period, in terms of
GDP it represents its decreasing by 1 – 1,5 % (!!) (according to Slovak Academy
of Science, but on the other hand, some companies decided not to reveal
quantifications of their loss -> real impact unknown)
Natural Gas sector after „Gas Crisis“
In 2009, Slovakia faced the disruption of natural gas supplies for 21 days...
After „gas crisis“ several measures had been adopted:
technical solution for permanent reverse flow in „eustream“ pipes
technical solution for reverse flow from Czech republic (already operated)
technical solution for reverse flow from Austria (Baumgarten hub)
the obligation of natural gas suppliers to have enough reserves in order to
fully supply all customers at least for 60 days:
underground storage capacities (total capacities: 2,7 bcm)
diversification contracts with the another gas producers
combination of storage and contracts
Crude Oil
Source: IEA
Other issues:
not fully exploited capacity (20 Mt per year) of „Transpetrol“ pipe ( > 50%)
the future of Bratislava-Schwechat Pipeline project (environment?)
Reserves of Crude Oil
Slovakia meets minimum stockholding obligations as EU and IEA member:
total storage capacities: more than 9 million barrels,
Total used capacities in 2010: 5,4 mb (reserve for , which are owned by stateowned
Transpetrol (4,2 mb) and MOL-owned Slovnaft (1 mb) companies:
3,3 mb of final oil products
2,1 mb of crude oil
Responsibility for emergency response had Administration of State Material
Reserves (Štátne hmotné rezervy).
Compliance with stockholding obligations
Source: IEA
Coal
Other issues:
after 2012: 3rd phase of carbon trading (ETS scheme)
price impact („TPS“ tariff) + state of the art of new technologies (gasification)
Table source: IEA
Future Coal Exploitation
Source: IEA
Renewables (2010)
Update:
PV 2010/2011 „boom“ - currently almost 500 MW of installed capacity
„no bright future“ for wind energy + current „stop status“ for RES
SEPS warning against „biogas boom“ (feed-in tariffs 145 EUR/MWh)
Key data source: IEA
Renewables – IEA prediction (TPES)
Source: IEA
Coal & Renewables – price impact („TPS“ tariff)
Source: energia.sk (cenaenergie.sk)
Electricity generation
Technology:
Nuclear
Thermal (Coal)
Hydro
Others (gas, PV...)
Data source: Slovak electro energy dispatching, SEPS (2011)
Projects currently under construction / planning:
Mochovce NPP 3, 4 (additional 1 GW) – operational in 2013 (+ 9 months)
feasibility study of new nuclear source in Jaslovske Bohunice
various small biogas (CHP) project, new natural gas CHP projects
small hydro: 2015 target: 0,45 TWh
Electricity generation
Source: Slovak electro energy dispatching, SEPS
Electricity import / export in 2011
Source: Slovak electro energy dispatching, SEPS
Electricity import / export in 2011 [GWh]
Source: Slovak electro energy dispatching, SEPS
Electricity import and export 2005 - 2011
Source: Slovak electro energy dispatching, SEPS
Heat
Existing potential for improvement:
combined heat and power generation
broader exploitation of existing district heating distribution networks
low level of implementation (enforcement) of existing bills
currently almost lowest level of RES exploitation in heat generation
Data source: IEA
Final energy use (2009)
Source: IEA
Conclusions and questions...
Conclusions:
energy security has to be viewed in perspective of:
traditional role of important gas transit country
timing of privatization of strategic energy companies
energy security has been issue only since 2009 crisis
energy sector in Slovakia works well, but it is highly dependent on energy
imports, mainly from Russia
Slovakia is not a secure country in terms of energy security
Place for observations, comments, questions, discussion...
Thank you for your attention!
Michal Hudec, energia.sk
hudec@energia.sk