In the first quarter of 2026, Slovenia experienced a remarkable increase in electricity generation supported by Borzen’s renewable energy and combined heat and power (CHP) subsidy scheme, with production rising by 156 percent year-on-year compared to the same period in 2025. This surge resulted in a total output of 424 GWh of subsidized electricity from facilities participating in the support system.
Despite this substantial growth in generation, overall subsidy payments remained stable at 18.5 million euros. This stability suggests a transformation in the structure of supported generation rather than an increase in financial obligations for the government. A significant factor contributing to this shift was the integration of the PPE-TOL facility, a new gas-fired combined-cycle cogeneration plant located in Ljubljana, which provides both electricity and district heating.
The impact of PPE-TOL on the energy landscape has been profound, as it led to more than a fourfold increase in output from fossil-fuel CHP installations during the quarter. These plants produced 350.8 GWh, which accounted for approximately 83 percent of total subsidized electricity generation. This trend indicates that fossil-fuel CHP units have emerged as the predominant contributors to subsidized electricity production during this timeframe.
While Slovenia’s subsidy mechanism is primarily aimed at promoting renewable energy sources and efficient cogeneration, fossil-fuel CHP units received 5.5 million euros in support payments, representing about 29 percent of all subsidies distributed. In contrast, solar energy maintained its position as the largest beneficiary of financial incentives within the scheme. Solar installations generated 30.1 GWh and received 7.1 million euros in subsidies, accounting for around 39 percent of total support payments.
Other renewable technologies also participated in the subsidy program, with biomass facilities receiving 2.5 million euros and biogas plants obtaining 2.3 million euros in support. However, contributions from hydropower and wind energy were minimal during this quarter, highlighting the current dominance of solar and fossil-fuel sources within Slovenia’s energy mix.
Notably, the average subsidy level per megawatt-hour saw a sharp decline, averaging 43.7 euros per MWh in Q1 2026—a decrease of approximately 60 percent year-on-year. This drop reflects both changes in the generation mix and evolving cost structures within Slovenia’s support framework, indicating a potential recalibration of financial strategies as the country navigates its energy transition.
