ANNUAL REPORT - HSE

facilities that use fossil fuels as the primary source
offer electricity. Currently, procedures are underway
and regulatory frameworks are being formulated for
the third trading period, which is projected to last
from 2013 to 2020. In this period electricity producers
in most European countries will have to purchase the
entire volume of emission coupons at auctions. This
will represent a high cost item to all of them.
2.6.3 Situation on
electricity markets in
2008 3
Slovenia
In 2008 the situation on the electricity market was
characterised by a smaller energy price difference
between SE European markets and continental markets.
The reasons include the recovery of the economy
and thus the consumption of electricity in SE Europe,
which along with the lack of production units led to
higher electricity prices. Still evident is the effect of
the discontinued supply from the Bulgarian nuclear
power plant, which represented an important production
source for the entire region, before this country
entered the EU. Due to the resulting situation, the
energy flows from SE Europe to Continental Europe
and Italy greatly decreased. The Hungarian market
last year represented an important source of energy
for Slovenia and SE Europe. The price of cross-border
transmission capacities for transmitting energy from
Croatia to Slovenia last year averaged a quarter of a
euro.
The Continental European market and partly the Italian
market, from which Slovenia received electricity
mostly during the night and at weekends, were significant
import markets for Slovenia in 2008. The prices
of cross-border transmission capacities for importing
energy from Austria and Italy fluctuated accordingly,
reaching the highest levels outside the peak period.
HPPs made a major contribution to the energy balance
sheet of Slovenia in 2008. The hydrology in 2008 greatly
exceeded the historical average, as HPPs produced
a quarter more energy than in 2007. As production is
flexible, the energy generated from hydro potential
was mostly placed to more expensive peak hours.
Where so allowed by technical capacities, the price
differences between peak and off-peak energy were
also exploited in TPPs. Predominantly during the
night, when the price of electricity and cross-border
transmission capacities was lower than the variable
TPP costs, the production units operated at a minimum
or were shut off. When profitable, they operated
at maximum capacity during peak hours. In 2008 TEŠ
produced 2.5% more electricity than in 2007, whereas
TET exceeded the 2007 level by 3.3%.
Consumption from the transmission network decreased
by 722 GWh or 5.4%. The greatest fall was
seen in consumption by direct consumers, which can
be mostly attributed to a production cut in Talum and
TDR-Metalurgija. Also, after many years' rise, consumption
from the distribution network shrank, which
was contrary to the projected energy balance.
Balance of European electricity markets in 2008 in TWh
- 16
+ 1.6
- 8.8
+ 30.1
+ 11.9
- 0.3
ANNUAL REPORT HSE | BUSINESS REPORT
- 8.8
+ 14.8
+ 54.6
+ 2.5
- 32.4
- 1.6
- 1.5
- 3.9
- 3.5
+ 1.6
+ 0.4
- 2.8
- 4.4
+ 4.6
+ 6.1
50
3
All data about electricity production in Slovenia include production
only by the Slovene part of the Krško Nuclear Power Plant.