Minister Miškov: The price of energy will rise
Interview: Minister of Economy
Slovak Minister of Economy Mr. Juraj Miškov gave interview for energia.sk on 10th August 2010. We talked together about his aims and visions for energy sector in Slovakia in upcoming four years:
Personal issues
Mr. Miskov has confirmed that Mr. Ján Petrovič, who held the office in the past four years during Robert Fico’s administration, will remain the general director of Energy section at the Ministry of Economy and Construction.
State influence, regulation
Minister claimed that his approach towards the energy sector will be in line of liberalism: „We want to depoliticize the process of price setting [for energy supplies for households] and to liberate the market from state influence. [..] Without the political intervention of the government we want to give just a vision for the energy sector, to define strategic framework and, together with energy sector and companies, discuss on how to increase the energy security.“ Furthermore he claimed that other issues related to energy will be solved by the market and competition between energy companies.
The price of energy will increase
Regulatory Office should prevent the monopolies from excessively raising price of energy, but as he added: „Nobody could expect that the price will be ever reduced. They will be always increasing, as it goes in economy. But it is important to keep them rising adequately in order to match the real economic growth.”
„We don’t want any deformations similar to those of the past four years. [Former PM] Robert Fico has convinced whole Slovakia that he can retain the price of gas, while everyone [..] knows that the price of gas can’t be retained.“
Renewables vs. nuclear energy
„From my point of view, the question is not whether nuclear energy or the renewables, but about their suitable combination for the future.“ Therefore, Minister Miškov is not going to prefer any particular renewable source of energy: „We should leave this question to the market, which should also choose the most suitable among renewables from the price point of view.“
New government of PM Mrs. Iveta Radičová has promised to support cross border energy interconnections of Slovakia, in directions to the south and to the north. According to Mr. Miškov, „any option of diversification is a good one for Slovakia.“ Energia.sk’s Michal Hudec objected that south-north interconnections represent more a diversification of transportation routes rather than the source (Russian monopoly Gazprom would remain the dominant supplier of natural gas into Slovakia). Minister answered: „We have to discuss the route rather than the source. If we do not have the routes, we cannot think about the new sources.“
Broad and transparent discussion
Ministry of Economy under Mr. Juraj Miškov wants to initiate „broad expert discussion“ on energy issues. Minister pointed out that even though „some of the answers cannot be presented in public, as they are business secrets [..] we want to hear the cardinal and tangible questions.“
The full text of interview of energia.sk’s Michal Hudec with Minister of Economy Juraj Miškov you would find on this link.
Week in Slovakia
Monday – 9th August 2010
New photovoltaic power plant in Lučenec started to be built. Its installed power is 3 MW. The developer SSE Solar from Žilina plans to open it this year. Investment into one MW is estimated from 2.4 to 2.9 mil. euro. The construction of the power plant in the ward Ľadovo will be carried out by Elektroenergetické montáže Inc. The city of Lučenec will be receiving more than 140,000 euro yearly for 25 years from the rental of land.
According to the Slovak Nuclear Regulatory Authority ÚJD SR, there was less energy produced than consumed in Slovakia last year. The balance of import of electric energy reached the level of 1,312 GWh (4.79 % of yearly consumption).
Tuesday – 10th August 2010
Czech company Modřanská potrubní has won the pipe supply tender for the secondary loop of the Mochovce nuclear power plant. The order also involves the components and other equipment of secondary loops in 3rd and 4th reactors in the power plant. The overall deal makes 30.76 mil. euro without VAT.
Tepláreň Košice Inc. has changed their administration on the posts of the directory and the advisory committee. Mr. Ján Podhorský, who was elected the general manager on the first hanging, became the new chairperson of the board of directories. Mr. Jozef Petraško became the chairperson of the advisory committee.
Samsung wants to invest into solar energy sector in Slovakia. The company agreed on this with Minister of Economy Mr. Juraj Miškov. Minister expressed the will for cooperation between Slovak republic and the company.
Wednesday – 11th August 2010
Košická energetická spoločnosť (Košice energy company) will carry out the general maintenance of the steam turbine and turbo generator in the engine room of Heating Company Košice. The overall account of the reconstruction will reach 2.97 mil. euro without VAT.
Thursday – 12th August 2010
In Dolný Bar village, near town Dunajská Streda, the first photovoltaic power plant with rotating PV panels was put into operation. The facility has installed capacity of 1 thousand MW of power.
In Mliečany village, there will be biogas station. It will use only plant materials and biomass for production. Estimated installed capacity is 990 kW for electricity production as well as 1,116 kW for heat one. Altogether, the developer (KOMKM Plc.) will pay for realization 3 million euro. The biogas power station should come into operation in 2011.
Friday – 13th August 2010
Slovak Minister of Economy Mr. Juraj Miskov dismissed director general of Slovak Innovation and Energy Agency (SIEA) Mr. Martin Vavřinek. At the same time, Minister temporarily entrusted Mr. Ivan Drobny with the director power. Ivan Drobny was in charge of economic section of SIEA from 1990.
European Union and World
Monday – 9th August 2010
The European Commission looked into nuclear medicine. It was dealing with the lack of radioactive isotopes on the market with medical equipment.
English and Welsh municipalities will be able to sell electricity from renewable resources to the national mains. The government expects increased interest in alternative energy.
United Kingdom is planning to construct new nuclear power plants. First one should start the production in 2018. The government confirmed that the construction will not be financed from public money.
French concern GDF Suez will become major shareholder at the British energy company International Power.
Serbia will be a partner of construction of the Bulgarian nuclear power plant in Belene. It was agreed on by Bulgarian PM Bojko Borisov and Serbian president Boris Tadić.
International Petroleum Investment Company (IPIC) may become one of the partners of Nabucco pipeline, which is supported by the EU. IPIC holds 20 % share of Austrian company OMV. Gas transfer in Nabucco should start in 2014.
Tuesday – 10th August 2010
BP has not dropped the possibility of crude oil production in the Gulf of Mexico. However, they have denied its return to the place of oil spill caused by Deepwater Horizon explosion.
China will close down more than two thousand rural factories, with the highest energy consumption. The government is attempting to decrease the overall energy intensity
Wednesday – 11th August 2010
Ukraine will raise the price of gas for the households by 50 %. The first jump by 50 % happened in the beginning of August. The steep increase in prices was necessary for the loan for Kyiv from IMF.
According to the business representatives, Canada does not exploit own geothermal potential effectively. It is estimated at 5,000 MW.
Bulgaria and Serbia have agreed on the details of the onshore route of South Stream pipeline.
According to the estimates of IEA, the demand of oil will reach 86.6 million barrels daily this year. That would make annual increase of 1.8 %. IEA predicts further growth in 2011, the demand should reach 87.9 million barrels daily.
Japan wants to expand on the global market with nuclear power equipment. Its primary focus will be the Middle East countries.
Thursday – 12th August 2010
Energy company RWE objects the plans of German government to introduce the taxation of nuclear fuel. The burden of addition tax would lead into shortening of investments into new and green technologies, it stated. The government expects the revenue of 2.3 billions euro each year.
United Kingdom started with implementation of governmental program CRC – Carbon Reduction Commitment. Medium and big enterprises will have to register in case their yearly energy consumption would exceed 5 thousand MWh. The industry criticizes Government for lack of information.
Russia will sell its last two untouched oilfields in Trebs and Titov in auction.
Russian oil company Lukoil has renewed the petrol supplies into Iran. This has been done in cooperation with the Chinese company Zhuhai Zhenrong. Both Russia and China have agreed with the sanctions against Iran in the Security Council of the UN. However, they have refused to approve penalties that would touch oil and gas sector.
British company BP has postponed the plans of initiation of deep undersea crude oil production in waters of Libya. The company plans the start of drilling by the end of the year.
French company Total will start deep underwater crude oil production near Angola. The concern expects daily production of 160 th. barrels of oil. The underwater oil deposit capacity is estimated at 500 million barrels of oil.
Friday – 13th August 2010
European Commission will investigate whether US companies export biofuels into European Union via third countries, more specifically via Canada and Singapore. The suspicion was raised by European Biodiesel Board. It has claimed that US companies sell biofuels in Europe, while avoiding border-tax. EU adopted border-tax for US biofuel imports in 2009, in order to protect domestic producers.
Scotland plans to build new coal power plant with built carbon-dioxide capture and storage technology (CCS). Petition against construction of proposed 1,600 MW power plant was signed by almost 10 thousand signatures’ from all over the world. Peel Holdings Plc is waiting for final approval by Scottish government.
The date of launching first ever nuclear power plant in Iran was set on 21st August 2010, Russian ROSATOM reported. Construction initially began in 1975. Teheran signed a contract with Russia to complete the construction in 1998.
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