SPP To Be Sole Buyer Of RE In Slovakia Auctions

• SPP in Slovakia has won a government tender to become the only offtaker for all renewable energy procured through auctions in 2020 and 2021 in the country
• S&P Global Platts says in 2020, SPP is looking at contracting 1.2 TWh of solar, combined heat and hydro power capacity through the auctions
• It will be able to purchase clean power from both renewable energy generators and through daily electricity trading
• Auction schedule for renewable energy is likely to be released by the end of 2019, said the economy ministry

Slovakian energy company Slovensky Plynarensky Priemysel (SPP) has been chosen by the government to be the one and only buyer of all renewable energy to be contracted in prospective auctions in the Eastern European country to be launched in 2020 and 2021. The company claimed this title after winning a government tender.

SPP hopes to procure 1.2 TWh of renewable energy in 2020 of which 44% will come from solar power operators, around 42% from combined heat and power producers and 14% from hydro power operators, according to S&P Global Platts.

With SPP winning the government tender, it has replaced the three regional distributors that were till now purchasing renewable energy. The three companies, as per S&P Global Platts, complained of administrative burden involved and late settlement of payments in the process.

Now, SPP will be able to purchase the electricity directly from renewable energy generators and through daily electricity trading organized by short term electricity market operator OKTE.

Details and timeline of the planned renewable energy auctions in the country will be officially announced by the end of 2019, according to the Slovak Ministry of Economy, but it said SPP will buy green energy from January 2020. This tender, explained the ministry, is part of a major reform of renewable energy sources in the country.

"The changes relating to the production of electricity from renewable sources is in line with EU legislation and the terms of state aid," said Economy Minister Peter Žiga. "Gradually introduced into the more market principle, so that production is cost-effective and at the same time has a minimal impact on the final prices of electricity."

The ministry has called interested stakeholders for a discussion meeting on the proposed auction system for the promotion of renewable energy sources and effective cogeneration in the country on November 6, 2019.