Slovakia Solar Energy Market - Growth, Trends, and Forecasts (2020 - 2025)

Slovakia solar energy market is expected to grow at a CAGR of more than 1 % during the forecast period. The primary drivers of the market include rising energy demand, efforts to reduce the reliance on fossil fuel-based power generation, and declining cost of solar PV and associated systems. Other factors like increasing demand for renewable energy, rising investments in solar farms, government policies are driving the solar energy market. However, the increasing adoption of alternate clean power sources such as hydropower and bioenergy is likely to hinder the growth of the solar energy market in the country.

• The residential segment is expected to have significant growth in the market during the forecast period.
• The development of the solar energy sector in Slovakia with the growth of energy consumption and the substitution of fossil fuels by renewable energy is likely to promote the solar energy market in Slovakia. Moreover, efforts to decrease the emission of greenhouse gases are expected to provide opportunities for the growth of the market in the near future.

Key Market Trends

Residential Segment is Expected to Witness significant Growth in the Market

• The increasing adoption of solar PV in the residential sector is primarily driven by expected savings in electricity costs, and the need for an alternative source of electricity. During the forecast period, the share of the rooftop solar PV is expected to increase, on account of decreasing solar PV costs, and supportive government policies for residential solar PV.
• Slovakia solar photovoltaics is mainly driven by the residential sector. Slovakia has around 472 MW of installed solar PV power generation capacity in 2019. Solar PV is expected to claim 44% of the clean energy capacity needed to generate 2.4 TWh of electricity by 2021.
• In particular, solar energy provides an important contribution to meet energy needs in the electricity sector. The electricity generated by solar PV has reached 585 GWh in 2018. In addition to this, the quantity of installed power capacity of solar PV is expected to reach 600 MW by 2020 and 750 MW by 2030.
• There are basically four types of photovoltaic systems installed in Slovakia for providing electricity to the residential sector: ON - GRID, HYBRID, OFF-GRID, and systems intended for water heating, the choice depends on the requirements for the purpose and financial possibilities of the customer.
• By all of the above mentioned facts, the residential segment solar is expected to witness significant growth at a considerable rate in the market.

Bioenergy Potential is Likely to Hinder the Growth of the Market

• Slovakia is using wood biomass in heat production but in terms of the environment, the biogas plants generating heat from animal and plant production waste are beneficial. The ministry wants to accelerate the usage of second-generation biofuels produced from non-food crops such as wood, organic waste, food crop waste, and specific biomass crops.
• Moreover, these advanced biofuels secure high reductions in the emissions of greenhouse gases and don’t compete directly for agricultural land designated for raising food and animal feed.
• Biomass is being utilized in different ways. The biogas utilization with combined heat and power production and biofuels for transportation is becoming more and more competitive on the Slovak market even without subsidies. All these technologies are available in Slovakia.
• As of 2019, Slovakia had total bioenergy installed capacity of 243 MW and the total primary energy supply by biofuels and waste was 1369 ktoe.
• In a 2018 review of the Slovakia’s energy policy, the International energy agency (IEA) stated that Slovakia has plans to meet its national renewables target mostly with unsustainable biomass, placing pressure on the stability of the country’s ecosystems. Slovakia has great potential to use biomass from own forests and this, in turn, is expected to hinder the market during the forecast period.

Competitive Landscape

The Slovakia solar energy market is consolidated. Some of the key players in the market include Slovenské elektrárne, A.S., Axpo Holding AG, CONTOURGLOBAL PLC, VP Solar, and Acrosun s.r.o.

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