Challenges and opportunities in the energy sector

Inštitut Naprej organised a roundtable discussion on the challenges and opportunities in the energy sector in March. The guests were Mag. Bojan Kumer, Minister of Environment, Climate and Energy, Boštjan Vrhovšek, Managing Director of Plinarna Maribor and Dr. Uroš Kerin, Assistant Director of the Asset and Project Management Area and Head of the ELES Diagnostic and Analytical Centre.

In a constructive debate, they touched upon important issues such as: how to ensure the stability of energy supply in the future, given that climate change is becoming more and more extreme; measures to promote energy efficiency and renewable energy sources in line with the commitments of the Paris Agreement and the coordination of ways to ensure consistency between national and European guidelines; the integration of the National Energy and Climate Plan; plans to promote innovation and the development of new technologies in the field of energy; and the development of hydrogen energy as a possible key element in the transition to clean energy.

Guests agreed that energy decisions need to be weighed up, as the National Energy Plan is crucial and extremely important in all areas, and sets out long-term policies in all these areas. The EU has very high targets in this respect and it will be a challenge for Slovenia to meet them within the envisaged framework. Boštjan Vrhovšek said that gas is a natural energy source and as such has the lowest carbon footprint and that Slovenia has sufficient gas reserves even when a critical situation arises. He went on to say that in the great energy crisis of 2022 and 2023, in which natural gas prices reached up to €300/MWh, without the intervention of the State, businesses and household consumers would have only barely borne the brunt of extreme price increases.

Mr Kumer pointed out that environmental protection and the energy sector are very closely interlinked and the right balance must always be found. He praised Slovenian companies for their increasing environmental orientation and said that the EU has a relatively good energy market, which functions even in crisis situations. However, in the event of an emergency, intervention through market regulation is necessary. He pointed out that there are many incentives available for energy projects. However, the environment and people’s quality of life must also be taken into account. The aim is not to build too much nature, because we need to preserve our green landscape, not least for the sake of tourism. However, it will be necessary to speed up the zoning procedures and decisions on permits. Uroš Kerin believes that, due to the lack of speed in the decisions that are important for the implementation of energy investments and the specificity of the supply chains, the delivery processes will unfortunately be prolonged, which will result in the construction of energy projects being delayed, even for several years. As an example of good practice, he pointed to Italy, where the industry planned to add 35 GW of new electricity generation capacity per year and the State approved an increase of 70 GW.

Uroš Kerin gave the example of a solution in central heating systems, where if there is an extreme increase in the price of one energy source, it would be possible to switch quickly and efficiently to another energy source, making the supply cheaper for all consumers.