Energy Policies of IEA Countries: Slovak Republic 2005 Review

The Slovak Republic has implemented impressive energy reforms over the recent past, a unique performance in Central and Eastern Europe. The 2000 energy policy prioritised market reforms and sectoral policies, notably on energy security and environment, in order to comply with EU requirements, which were largely met at the time of the country’s EU accession in 2004. Also, Slovak Republic established new regulations, notably cost reflective pricing enforced by an independent energy regulator, thereby attracting significant foreign direct investment. Notably, this rapid transition has occurred without disruption in this key energy transit country. New challenges ahead include strengthening energy security by diversification, opening energy markets and integrating them into the European Union, strongly increasing energy efficiency to offset the high economic burden of energy prices and to help better controlling pollution and CO2 emissions in line with EU and international obligations. This review analyses the Slovak energy sector and policies, and provides recommendations for the government. It is a comprehensive assessment of what constitutes a remarkable case study of effective energy reforms in an economy in transition, which has applied for IEA membership.