Demand and prices for pellets and heat pumps are increasing
STA, August 1, 2022 – During the energy crisis in Slovenia, the price of wood pellets and heat pumps rose sharply. As demand for pellets increased by about 35%, the price nearly doubled and supply became a problem.
Energija Narave, a producer of wood pellets in Škofjelo, told STA that the price of pellets has increased by as much as 95 percent due to the increase in the price of raw materials and more expensive production. Currently, a pallet of mixed pellets produced by the company costs EUR 530, and a pallet of spruce pellets costs EUR 544.
The company announced that, just like last year, they will sell all the pellets produced this year.
What’s more, the demand in Slovenia is currently greater than the supply. According to Energija Narava, all Slovenian companies would cover approximately one third of domestic demand if they did not export. But they all export.
“There are very few imports this year,” the company says, pointing to Serbia and BiH, which banned exports due to the lower purchasing power of the population. In the meantime, the countries north and west of Slovenia can sell pellets domestically more favorably.
“We believe that the Russian-Ukrainian war does not directly affect the Slovenian market, but it has a great impact on the European market, since Ukraine alone produces more than a third of this source of energy for the European market.”
At the end of June, Energija Narave was forced to stop accepting orders because its production capacity could not hold up.
The Energy Company Elektro Maribor Energija Plus told STA that the demand for heat pumps is also increasing due to the fear of price increases and disruptions in the supply of heating oil and gas. This, along with general price increases, pushed prices up a bit, the company said.
It is a warning, however, that the state still offers subsidies for the purchase of heat pumps.
Elektro Maribor Energija Plus has been noticing an increase in demand for heat pumps since last October, but the current situation is “crazy”. The company has decided to prioritize its regular customers when accepting orders again.
The statistical office told STA that the prices of heat pumps were indeed quite stable, while the prices of pellets reflect the prices of solid fuels, which rose in price by 49.2 percent in the last year.
Last week, the government lowered the value-added tax (VAT) on energy products for all users in order to mitigate the effects of price increases, but it has limited options for wood biomass, where it cannot regulate prices.