Slovakia’s solar industry profits surge amid biogas shutdown fears

As electricity prices continue to increase sharply, the profit margins of Slovakia’s photovoltaic power plants are also rising, while the less successful biogas power plants will likely have to shut down if the situation does not change.

These are the findings of the economic performance of companies in the electricity generation sector conducted by Finstat.

Profit margins for the solar industry currently lie at more than 20%. The industry, which has long benefitted from high government subsidies and a relatively low input price, is currently subsidised at €250 per megawatt-hour (MWh).

Biogas, as well as hydro, has surcharges between 60 to 150 (MWh). Biogas power plants suffer because of the high price of their input material, which is mostly maize silage as their profit margins are minus 11%

However, the industry’s problems are not new as the Finstat study points to 13 of the 52 power plants in Slovakia being indebted. Of these, two are being restructured, while two are facing liquidation.

From 2006 to 2010, during the first government of Robert Fico and his SMER-SD party, high subsidies for solar power plants were a source of controversy resulting in multiple corruption accusations from the opposition and NGOs.

(Michal Hudec | EURACTIV.sk)

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German top aide: No EU-reform, no enlargement

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