Page 30 - bneMagazine March 2023 oil discount

30 I Companies & Markets bne March 2023
Share of Electricity Generated by Renewables (% of Total)
However, in other countries, such as Poland and the Baltic States, the use of nuclear energy is virtually non-existent.
CEE countries are looking to expand their nuclear capabilities over the next decade. For instance, construction of Poland's first nuclear power plant (NPP) is set to start in the near future, and by 2035, it is expected to provide 20% of the country's electricity. In Czechia, Hungary and Romania,
the share of electricity generated from nuclear sources is expected to increase by 10-30 percentage points. The Estonian government is also evaluating the feasibility of nuclear power.
Despite the many benefits of nuclear energy, including reliability and low emissions, it also comes with its own set of challenges. The investments required to expand nuclear capabilities are significant and can take an average of ten years. There can also be public opposition to nuclear power, and securing uranium supplies, which is a market dominated by Russia, will be a significant challenge.
Share of Electricity Generated by Nuclear (% of Total, Nov. 2021 to Oct. 2022)
Source: Capital Economics
But in Czechia, Hungary and Slovakia wind accounts for less than 2%,” Capital Economics reports. “Governments in these countries have set targets for increased wind power capacity by 2030 and new infrastructure is being built. But in most cases the targets are unambitious. In Czechia, for example, wind power is only expected to generate 3% of electricity by 2030, compared to 0.5% now.”
Factors such as wind speed, the landscape, and the electricity grid will determine the amount of wind energy each country can generate.
Solar energy is also progressing slowly in CEE. While some countries, like Hungary, are utilising solar power to generate electricity, it remains a minor part of the energy mix in others. Despite a promising start, investment in solar energy is progressing slowly.
Going nuclear
Wind and solar are often seen as the most desirable solutions but the reality is that they cannot solve the energy security problems alone. Nuclear energy has gained significant attention as a way to address security problems and phase out fossil fuels.
“Poland's first nuclear power plant (NPP) is set to start in the near future, and by 2035, it is expected to provide 20% of the country's electricity”
There is a long history of nuclear energy in CEE, and it already plays a significant role in the region's energy mix. In Slovakia, nuclear energy accounts for 60% of electricity generation, while in Hungary it contributes to 40%. Other countries in the region, such as Czechia, Bulgaria, and Romania, generate around 30% of their electricity from nuclear sources.
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Sources: Eurostat, Capital Economics
National Nuclear Energy Objectives
Sources: National Governments, Various Sources, Capital Economics