Smart grid market in Slovenia

Slovenia's 2024 updated national energy and climate plan (NECP) aims for climate neutrality by 2045, addressing emissions reduction and energy transition challenges. Slovenia is legally bound to reach climate neutrality between 2045 and 2050. They must also reduce total greenhouse gas (GHG) emissions by at least 55% compared to 2005 by 2033. The government aims for a 33% share of renewable energy sources in final energy consumption by 2030. 

Renewable Energy Sources’ (RES) share is expected to be highest in the electricity sector (55.4 %), followed by heating and cooling (45.2 %) and transportation (25.8 %). To reach NECP targets, Slovenia started to boost photovoltaic (PV) solar energy generation. PV solar generation doubled from 1,822 Gigawatt hours (GWh) to 3,757 GWh by 2030, and will at least double again between 2030 and 2040. While wind is projected to generate only a tenth of solar energy by 2030 (356 GWh), the increase is worth noting, as the country currently has no wind farms. The NECP also notes expansion of both small- and large-scale electricity generation from hydropower. New pumped storage hydropower plants are expected to address grid limitations and balance RES in the system.

Key opportunities for Canadian smart grid companies in Slovenia

  • Flexibility market solutions and grid balancing technologies
  • Smart meter solutions
  • Pumped hydropower solutions (for energy storage)
  • Joint pilot and Horizon Europe projects

Notable challenges for Canadian smart grid companies in Slovenia

  • Fierce competition from European Union (EU) and domestic suppliers of smart meters
  • Regulated energy market led by state owned companies
  • Complex procurement policy for DSOs

Industry highlights

4,739 megawatts (MW) of installed generation capacity

15.8 terawatt hours (TWh) of total power generation

24% of total power consumption comes from renewable sources

6.31 TWh in renewable power generation

500,000 units of installed smart meters

2,863 km of high voltage grid with 35 substations and 25 power system transformers 

Upcoming projects and events

Slovenia's business landscape

Slovenia, a country with a total population of 2 million, is one of the smallest markets in the EU. According to the 2024 EU Commission market report, the growth of Slovenia’s economy decreased in 2023 but remained above the EU average. According to the European Community (EC), Slovenia has a dynamic, export-oriented economy with industry accounting for a high share of total value added. In 2023, the Slovenia’s real GDP grew by 1.6%. This is a decrease from 2.5% in 2022 but is significantly above the 0.5% growth rate across the EU.

Industry background

Approximately one-third of Slovenia’s electricity comes from hydroelectric sources, one-third from thermal sources, and one-third from nuclear power.  The Slovenian electricity market has remained mostly in state control.  The largest power producers are Holding Slovenske Elektrarne (HSE) and GEN Energija - both are state-owned. Slovenia has a stable TSO/DSO landscape, with one major state-owned Transmission System Operator, ELES and 5 DSOs active in the market over the last 20 years. The Slovenian electricity market is highly innovative and open for international cooperation on R&D projects that support the country’s energy security and energy transition goals. The Slovenian TSO, ELES, has a leading role in the coordination of international projects under EU, Horizon Europe and CIGRE programs. ELES is considered one of the most innovative TSOs in the Central and Southeast European markets.

Energy transition and climate goals

According to the latest US State Report, the Slovenian government has identified green transformation as a priority for its national recovery and resilience plan. By allocating at least 43% of the €2.5 billion funds requested from the EU Recovery and Resilience Facility toward the transformation plan, this program will:

  • target the improvement of energy efficiency in buildings
  • increase the share of renewable energy in the country’s energy mix
  • increase public transportation options

The European Investment Bank (EIB) has also provided funding to improve Slovenia's renewable energy infrastructure. According to the 2024 EIB report, the EIB’s new financing in Slovenia totaled €284 million. This funding aims to promote innovation, reduce carbon emissions and support the energy transition in Slovenia.

Summary

Slovenia will remain an attractive market for international suppliers of:

  • flexibility market solutions and grid balancing technologies
  • network monitoring
  • digitalization
  • pumped hydro energy storage solutions

As more renewable energy systems are installed, the electricity grid will need major upgrades. To support this growth, additional investments will be required to modernize existing infrastructure. This includes building new energy storage facilities and adding systems that help balance the grid, with much of this work expected in 2026 and 2027.

To offset challenges that come with being one of the smallest markets in the EU, Slovenia has created a welcoming business climate for international investors and vendors of new technologies. Slovenia offers excellent opportunities for testing new technologies and solutions in a small-scale commercial environment. Furthermore, the Slovenian TSO (ELES) Innovation team has been at the forefront of leading Horizon Europe projects in renewable energy and smart grids for the past 10 years. 

For more information on the Smart Grid sector in the Slovenian market, please contact Gergely Morvai (gergely.morvai@international.gc.ca) at the Trade Commissioner Service of the Canadian Embassy to Hungary, Slovenia and Bosnia and Herzegovina. 

Additional Information

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