Ljubljana, 24 April (STA) - Electricity grid operator Eles has detailed significant development plans requiring EUR 5.15 billion in total investments by 2034 to upgrade the national transmission and distribution network in light of green transition and increased needs.
"Changes across all technological fields, from the implementation of unpredictable renewable energy sources into the system to heat pumps and electric mobility, are penetrating the energy sector and drawing the outlines of the modern world. However, for society to truly become fully electrified and low-carbon, reinforcements, upgrades, adaptations, and modernisation of the electricity grid will be crucial," Eles said on Thursday.
The transmission system development plan and the distribution system development plan, both covering the period 2025-2034 and already approved by the Energy Agency, define the evolution of the electricity grid over the next decade.
Eles plans EUR 1.2 billion in investments for the transmission grid, continuing what it describes as the largest investment cycle since its establishment. Particular attention will be given to building infrastructure for connecting larger solar power plants.
The largest portion of these investments, EUR 484.3 million, is designated for distribution substations or RTPs in Slovenian. Key projects highlighted by Eles include the installation or replacement of seven large power transformers for regional supply, comprehensive refurbishment of 19 RTPs, and the construction of seven new 110/20 kilovolt (kV) RTPs.
An additional EUR 386.8 million is planned for power lines across all three high-voltage levels, expected to involve refurbishing 610 kilometres and constructing 145 kilometres of new high-voltage lines. The plan also includes renewing existing and establishing 167 kilometres of new fibre optic connections.
Meanwhile, investments totalling EUR 3.95 billion are foreseen for the distribution grid. "Changes in electricity consumption and generation pose a particularly significant challenge for the distribution grid system, as it was not historically designed for this manner and scale of electricity use."
"The increasing share of dispersed sources significantly affects the voltage profile in distribution grids, and a substantial impact is also expected from the growing numbers of heat pumps and electric vehicles," Eles explained.
The annual investment volume is projected to increase gradually, from EUR 280.7 million in 2025 to EUR 438 million in 2034.
The largest share of distribution investments, EUR 2.69 billion, is planned for the low- and medium-voltage network. Planned investments in 110-kV facilities are estimated at EUR 639.3 million, with investments in secondary equipment amounting to EUR 310 million.
Investment breakdowns by distribution company are: Elektro Ljubljana EUR 1.16 billion, Elektro Maribor EUR 1.11 billion, Elektro Celje EUR 814 million, Elektro Gorenjska EUR 459 million, and Elektro Primorska EUR 403 million.
Regarding funding sources, electricity distribution companies anticipate a large share from EU grants (58%), while borrowing is meant to cover 22.5% of the costs and depreciation would account for 16% of the funds needed.
Eles intends to cover the network charge revenue shortfall for the five electricity distribution companies between 2023-2026, allocating EUR 287.9 million for this purpose. From 2027 onwards, however, they estimate that achieving the investment goals would require increasing tariffs for the use of the distribution network by 26.5% to 58.6% compared to the 2026 baseline.
Meanwhile, determining the future level of fees for the use of the transmission network will crucially depend on the revenue generated from cross-border transmission capacity auctions. The base scenario anticipates EUR 100.5 million in annual revenue, implying that fees would not need to increase before 2034.
