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The future of the Czech energy sector is uncertain.

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Apme Fx | The future of the Czech energy sector is uncertain.

For many decades, we were accustomed to the Czech Republic being self-sufficient in electricity, or rather, a net exporter. But reality is changing, and in the foreseeable future, we may find ourselves unable to meet our energy needs from our own resources. We wouldn’t be the only ones in Europe or the world in this situation, but still, energy is a basic human need, as is confirmed day in and day out, even in times of war. And as if neighboring Slovakia were well aware of this, it seems to have already secured its energy future. Let’s take a closer look at the prospects for both countries.


The Czech Republic’s electricity trade balance will soon begin to shift. The country’s dependence on electricity imports is expected to peak around 2035, when imports will cover about one-fifth of its consumption. This is because it lacks sufficient alternative sources to adequately bridge the gap between the decommissioning of coal-fired power plants and the commissioning of new nuclear reactors. Only after their completion should dependence on imports begin to decline.


The Slovaks are ahead of the Czechs in terms of electricity generation sources. While Slovakia became a net importer of electricity sometime around 2006, a significant turnaround occurred in 2023, and since then, the Slovaks have been generating more electricity than they consume.


This is due to the commissioning of new nuclear units at the Mochovce power plant. At the same time, the operating life of previously built units there is being extended, and the same is happening at Jaslovské Bohunice. Slovakia is thus becoming a nuclear powerhouse, with its reactors accounting for just under two-thirds of electricity production and fossil fuels accounting for less than 15 percent. Moreover, if we include hydroelectric and other renewable sources, they account for a respectable quarter of total electricity production.


And the Czech Republic? It was once a coal “powerhouse,” after which nuclear power was supposed to replace fossil fuels. Subsequently, the Czech Republic was supposed to become a photovoltaic powerhouse, but it has not even come close to that goal. For at least the next ten years, therefore, the Czech Republic will not be a powerhouse in the energy sector at all.


And it has no choice but to hope for a steady supply of surpluses from abroad. Perhaps even from Slovakia.

Disclaimer:

The material herein is considered as marketing communication under the relevant laws and regulations, and as such is not a subject to any prohibition on dealing ahead of the dissemination of investment research. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and should not be construed as containing investment advice, or an investment recommendation, or an offer of or solicitation for any transactions in financial instruments. The published content is intended for educational/informational purposes only. It does not take into account readers’ financial situation, personal experience or investment objectives. APME FX Trading Europe Ltd makes no representation that the information provided is accurate, current or complete; and therefore, assumes no liability for any losses arising from investments based on the supplied content. The past performance is not a guarantee of future results.

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