Opportunities for participation in the liberalized electricity market in Slovakia
1. Functioning of the electricity market in Slovakia (comprehensive study)
The purpose of this comprehensive study is to help stakeholders understand and thoroughly describe the possible involvement of a participant in the liberalized electricity market in Slovakia. The study is designed in a way that enables the participant to fully utilize their potential in the electricity market while respecting the applicable legislation and technical rules. It also assists in determining the company’s energy strategy within the electricity market.
The comprehensive study is systematically divided into six core sections that are interconnected and complementary, forming a complete overview of the liberalized market. As a result, participants receive comprehensive and balanced information about the functioning of the electricity market in Slovakia.
Structure of the study – functioning of the electricity market in Slovakia – potential and opportunities:
Characteristics of the electricity market model and its participants focuses on the development of the electricity market, the gradual steps of liberalization, and describes the market participants, their roles, and responsibilities. It concludes with a definition of the essential services required for the secure functioning of the market and their interrelationships.
Applicable energy legislation, regulations, and directives help the participant navigate the complex legislative environment. It outlines the key mandatory legal and regulatory rules for market trading, including government decrees or decisions from the Regulatory Office for Network Industries (ÚRSO). It explains what each regulation covers, who issues it, and its primary target audience. It also lists all relevant institutions operating in the liberalized electricity market that oversee and guide it.
Imbalance settlement regimes describe two types of responsibility regimes: delegated and own responsibility. Both options explain the rights and obligations of market participants, as well as the advantages and disadvantages of each imbalance settlement regime.
The fourth part, opportunities for participants in the electricity market, outlines how an entity can become a party with its own imbalance responsibility or an electricity trader/supplier. It details the necessary steps, how to transition from a delegated to an own responsibility entity, the required agreements and with whom they must be signed, and the timeline. For traders, it describes necessary procedures, contracts, and permits. It also highlights the importance of IT systems focused on imbalance reduction and energy cost optimization.
Trading opportunities in the liberalized market build on the previous section, providing detailed explanations of trading options such as Intraday trading and trading via energy platforms or exchanges like SPX, PXE.
To accurately define an energy strategy, it is necessary to understand and use statistical and analytical data to assess risks from a trading perspective. This is covered in the sixth section titled Statistical data and electricity market development, which analyzes electricity price trends, imbalance volumes, imbalance costs, and other specific data relevant to shaping the participant’s energy strategy.
2. Follow-up and extended studies
We also offer analytical and consulting services based on the findings of the "Functioning of the Electricity Market in Slovakia – Potential and Opportunities" study. These follow-up studies and projects focus on specific aspects of the liberalized electricity market. Their goal is to describe the issues in detail for the individual subject, suggest specific recommendations and optimal solutions, and consider overall economic efficiency and benefits to the client.
Possible follow-up services in the liberalized market environment include:
3. Implementation projects
In the third phase, we move to concrete projects and deliverables that we can implement or coordinate, based on the extended studies described in phase two. We can also provide an information and trading system that can serve as a fully functional tool for energy trading. This system includes and supports all essential processes to simplify tasks and operations directly related to trading.
Key projects include:
4.Experience and references
We provide market participants with a comprehensive assessment of their current status and opportunities within the liberalized electricity market. We prepare and consolidate the necessary documents in accordance with applicable energy legislation. We also conduct studies and analyses evaluating the technical and economic impact – including feasibility studies – and recommend suitable software solutions.
Clients of SFÉRA, a.s., in the area of energy consulting and analysis include:
We have provided these clients with analyses and studies on their opportunities in the Slovak liberalized electricity market, including current legislative changes and necessary internal document revisions. We also actively address the issue of imbalance evaluation and possible regulation methods.