Boštjančič: Slovenia Can Build Jek 2 Without Disruptions

For up to a 30% share of the Jek 2 project financing, budget expenditures would increase by six to ten percent. Slovenia can handle this without worsening its position, said Finance Minister Klemen Boštjančič at a public forum organized by the Ministry of Environment, Climate, and Energy on the financial aspects of the Jek 2 project. Most agreed that there are still four years left for the final investor decision, during which time all numbers and analyses will become clearer.

Boštjančič emphasized the need to involve experts who have worked on similar projects across Europe, investment banks, and even non-governmental organizations. The ministry supports the idea of a public-private partnership, where Slovenia should have the majority of voting rights. He also confirmed that there is interest in participating in the project from neighboring countries and investors. There are several options for financing such a project.

For 30% debt financing, there are two options. The first is for the state to borrow on the market and then lend the money to the project company. European legislation prevents lending below cost, so the Czechs added a one percent premium to the interest rates. The second option is for the project company to borrow on its own, with the state guaranteeing the loan. The second option is more expensive because the company cannot get the same terms as the state. "We are leaning towards the first option," said Boštjančič.

The state is currently borrowing at a three percent interest rate for ten years, but Boštjančič warned that there will be several interest cycles by the end of construction. "Slovenia is more than capable of carrying out such a project," the minister emphasized.

Gen Energija's financial director Nada Drobne Popovič pointed out that the financial structure is still open and will only be finalized when the project is spatially placed, the supplier is selected, and the final investor decision is made. They have already prepared a financial analysis of the project and commissioned and received a review of this analysis, which considered that 25% of the equity would come from Gen Energija (100% state-owned), 40% from loans, and 35% from bonds. For electricity prices between 66 and 99 euros per megawatt-hour, they considered three to four percent interest rates. They predicted that the state would provide a guarantee for the project.

"This is an extremely risky project," said Marko Jaklič from the Faculty of Economics at UL. "States are doing everything they can to avoid guarantees for nuclear power plants," he said, adding that a new clinical center could be built in this way. He pointed to a German study that ensures we can survive solely on renewable energy sources by 2050. Therefore, he believes there is no rush. For example, the Swedes have decided to invest in small modular reactors if needed.

Director of Eles Aleksander Mervar reassured that there would be no additional contribution for Jek 2 but warned that loan interest rates would range between 4.5 and 5.5 percent, and the state would need to get approval from the European Commission. Mervar believes that such a project should not be stopped; otherwise, Slovenia will be 30-40% import-dependent without a stable source of electricity. He added that a carbon-free society does not exist. "The more RES in the grid, the more losses, and the more gas power plants you need. Let's decide in 2028 when we know more," Mervar said.

"I am surprised that the finance minister is so enthusiastic and unconcerned," said Janez Kopač, long-time president of the Energy Community. "Such a project is possible under European taxonomy, but it must have at least a confirmed plan for spent fuel storage or a contract with Finland or someone else," he warned. Additionally, NEPN envisions 55% renewable sources by 2050. Jek 2 disrupts this structure. He advocated for the merger of Gen Energija and Holding Slovenske Elektrarne.

There were several calls for opponents of nuclear energy to present an alternative scenario for the development of Slovenian energy or decarbonization if we dissect the nuclear energy scenario with RES to the tenth decimal place. Mervar said he analyzed ten versions, both in terms of costs and system stability. The most favorable is with Jek 2 and the existing Neko operating until 2063. No version with only RES comes close.

Minister of Environment, Climate, and Energy Bojan Kumer said they are aware that all data must be presented to the public, which is why they commissioned a review of Gen Energija's data and a comparison of scenarios with and without Jek 2 at Eles. Ministries, experts, and non-governmental organizations still need to discuss. For the largest investment in Slovenia's history, all risks, from personnel to financial, must be identified and appropriately limited. This must be done as soon as possible in the law.

Jonas Sonnenschein from Umanotera believes that we are looking too statically, as technologies are developing. "Nuclear energy advocates in Germany said that the share of RES could not be more than ten percent; today, they have more than 50 percent. The price of electricity – I find it hard to believe that Jek 2 can be competitive. If the market price drops by ten percent, the project fails," he said.

Boštjančič concluded that Croats also want to be energy independent, not just with RES but with nuclear energy. "Why are we asking this today? In the spring, 80 MPs voted for this referendum. I am excited that we have such debates four years before the decision. There were no such debates before the Teš 6 project," said the finance minister.

Renewable Sources Are or Are Not Enough

"Existing technologies allow for a lot, but the key ones are yet to come. Today, it is possible to set up a network solely with RES," Jaklič asserted. "That's a lie. Show me one country where this is possible. Of course, it will be possible in the future, but without the Chinese, nothing will happen," Mervar replied, adding that if the European market operates normally and stably, the price of electricity from Jek 2 will be higher than from RES, although the markets for one and the other electricity are still separate.

Jaklič called for the formation of a group to study small modular reactors. It is very risky to predict electricity prices in 2040. Nada Drobne Popovič pointed out that the Jek 2 project must continue so that the right decision can be made in 2028.

Kopač also pointed out that Slovenia also has several days each year when electricity prices drop below zero for at least a few hours. According to data, there are 200 such hours per year. "This will have an impact on the economy," Kopač believes. Mervar replied that nuclear energy is sold as base energy, and negative daily prices do not affect its economy. Too low electricity prices from solar and wind power plants will deter investors in these devices if they bring losses.

"Currently, only RES are available to us. There were some criticisms that we started a strong cycle of building solar power plants, but we still have a lot of room for upgrades. By the end of the year, we must also upgrade NEPN," Kumer revealed. State Secretary Tina Sršen said that all Slovenian electricity would be decarbonized by 2030, and decarbonized electricity will also come to the borders. "Therefore, Jek 2 will not contribute to decarbonization; it will take over stable production," she said.