Powered by Smartsupp
+421 2 59 39 81 11

SITUATION ON ENERGY MARKETS REMAINS TENSE IN 2023, EXIMBANKA SR BRINGS ENERGY CREDIT

The global energy crisis has significantly affected households and businesses in almost all sectors. The situation in energy markets will remain tense in 2023, according to a study by the International Energy Agency (IEA), focusing on the current issue of addressing energy challenges. An effective solution for Slovak companies is the Energy Loan from EXIMBANKA SR.

Despite relatively tepid scenarios for the ongoing energy crisis, the study suggests a slowdown in energy price increases, which should help ease the pressure on developing countries’ energy budgets. Nevertheless, the situation with soaring energy prices is critical, especially for the corporate sector.

Slovak companies suffer more than other markets due to high energy intensity

As Slovakia is one of the most energy-intensive countries in terms of its industrial structure, the increased prices of energy inputs are a major challenge for Slovak companies, especially in terms of impaired cash flow and the ability to repay liabilities, for many companies this means limiting operations or suspending activities.

The approaches of the markets to solving the negative impacts of the current crisis differ, EXIMBANKA SR, as the only credit – export organization in Slovakia, brings a concrete solution to energy problems for Slovak exporters through the Energy Credit.

“Our effort was to respond adequately and promptly to the strong demand from export companies to stabilise their balance of payments because of the rising prices of energy inputs. The energy loan is a quick and easy tool as one of the solutions to bridge the negative impacts of increased energy prices on Slovak businesses.” said Marián Janočko, Director General of EXIMBANKA SR.

Energy innovation can be a pathway for businesses to reduce energy dependence

Global industrial energy demand is projected to grow at 1.4% per year in both developed and emerging markets until 2030. Energy demand can help reduce e.g. Increasing the energy efficiency of the production of industrial enterprises, for example by installing more energy-efficient equipment, phasing out inefficient technologies and implementing innovative solutions within the production cycle.

Energy trends and outlook to 2030

The World Energy Outlook (WEO) outlines three possible energy scenarios. The first scenario is based on retrospective findings of national policies (Stated Policies Scenario) reflecting developments based on past actions. According to him, annual investment in clean energy will increase by more than 50% by 2030 compared to today. The second scenario, the “Announced Pledges Scenario” (hereafter APS), assumes that all the ambitious targets that governments have so far declared in their climate and energy policies will be met. At the same time, the APS estimates that demand for critical raw materials, especially precious metals, will double by 2030. The last is the so-called. the Net Zero Emissions by 2050 Scenario), which maps out how to stabilise the 1.5˚C increase in global average temperature and meet the key Sustainable Development Goals (SDGs). Under this scenario, private capital support for energy sector investment will be key.

Regardless of which of the envisaged scenarios occurs in the short or long term, the key will be for businesses to adapt to individual changes and to ensure adequate forms of support.