IAS views on the development of the energy sector in Slovenia up to 2030 with a view to 2050
The Slovenian Academy of Engineers has recognized that Slovenia urgently needs a clear, sustainable and development-oriented energy vision and strategy. It formed a working group to prepare IAS positions on the development of the energy sector in Slovenia.
In addition to its own members, the working group also included other experts in specific areas of the energy sector. In the framework of thematic evenings and expert discussions, the experts showed a great deal of professionalism, and the exchange of views from different perspectives led to professionally considered and long-term oriented positions, opinions and proposals, and the IAS is therefore willing to have IAS members and other involved experts in specific areas of the energy sector participate in working groups of the Government or the relevant Ministry for the preparation of strategic documents in the field of energy, such as the Energy Concept of Slovenia (ECS) or other strategic documents.
Summary
The energy sector, as an important activity in all economies, is at a turning point in its development. Both political and economic circumstances have changed, affecting the high volatility of energy prices on world markets and, on the other hand, the security of energy supply. The new global commodity divide, and the resulting political conflicts and tensions, will make supply increasingly risky. In addition, the sector is to a large extent linked to the necessary changes in the field of new technologies that will reduce the negative impact on climate change and at the same time ensure less dependence of the EU and Slovenia on imports of raw materials from other (crisis) regions. In such a political and economic situation in the world and in Europe, self-sufficiency in energy, clean water and healthy food is becoming a major challenge for Slovenia and Europe.
At the same time, it is a great opportunity and a chance to develop new technologies and gain a competitive advantage, which is why Slovenia needs to act quickly, in a coordinated, targeted and efficient manner. The economic and social situation in Slovenia prompted the Slovenian Academy of Engineers to develop a set of views on the development of the energy sector in Slovenia up to 2030, with a view to 2050. The following views emerged from an in-depth and lengthy discussion between members of the Academy and other experts in the field of energy (summarised):
1. The primary criteria for the development of the energy sector in Slovenia for the period up to 2050 should be redesigned taking into account the most important aspects as follows (see chapter 3.1):
Long-term sustainability and the well-being of all Slovenian citizens (independence from current governments);
sustainability, economy, efficiency and balance of interests;
simplicity of procedures and transparency;
professionalism - involvement of experts and coordination between government departments and civil society;
setting clear, achievable strategic objectives and alignment of authority and responsibility for the implementation of the Energy Concept;
Code of ethics, professionalism, management and supervisory responsibility in energy projects and energy companies.
2. Slovenia needs to formulate a comprehensive economic development policy that encompasses the development of all key components that affect the competitiveness of the economy and thus the well-being of society (see Section 3.2). These are:
the technological supply side of the economy,
energy supply,
other capacities and infrastructure,
the supply and financial strength of domestic equity capital.
3. In order to implement such a development policy, the following objectives should be set, monitored and implemented (see Section 3.2.1):
Development of indigenous technologies and innovation,
increasing added value,
the creation of quality jobs,
the creation of modern public-private development partnerships (Triple Helix),
development of domestic equity with attributes of strategic ownership.
4. Infrastructure investment (including energy) must be seen as part of the development model of society (see section 3.2.2):
infrastructure projects should, in line with this definition of economic development policy, be considered as reference projects of domestic technology providers in addition to investments in advanced infrastructure.
5. Strategic objectives and individual actions/investments should be planned and evaluated in a two-tier approach (see section 3.3):
according to the selected criteria for energy development in the framework of the Slovenian Development Strategy, which together form the decision-making space for guiding energy development and investment;
by the objectives of the individual aspects of energy planning: sources, efficiency and purpose of energy use.
The objectives of the individual aspects of planning are positioned and subordinated to the criteria for the development of the energy sector in the framework of the Slovenian development strategy.
6. The energy sector regulators need to be reformed taking into account the aspects (see chapter 3.4):
Fiscal policy,
the provision of sources of financing and professionalism in decision-making,
incentives with long-term effects towards the development of products, systems and technologies, demonstration projects and the active role of all stakeholders,
maintaining equal partner status (sovereignty) in international relations.
7. It is necessary to establish a methodology for setting criteria for the development of the energy sector and to define the criteria as a comprehensive criteria space for planning, monitoring and decision-making in guiding the development of the energy sector (preparation of the Energy Concept of Slovenia) and for decisions on concrete measures and investments, and to define a way of evaluating the achievement of the criteria (see Chapter 4):
for each criterion, targets should be set in the context of the implementation of the energy development strategy over a certain timeframe, e.g. for the period up to 2020, 2030, 2050 and with a finer granulation of the target on the basis of action plans;
appropriate analyses and methodologies need to be put in place to establish a system for setting parameter values, structuring targets into targets and monitoring the achievement of the criteria (this is repeated from time to time redundantly for each criterion to reinforce this).
8. For criteria where targets are set on the basis of natural endowments (resource potentials) or comparatively with alternative technologies, the principle of the economy of the measure is applied on the basis of the net scope or net effect: the total scope or effect is reduced by the collateral (environmental) damage caused by the implementation of the measure. In doing so, we classify the measures or the scope of the measures into three groups (see section 4.1.2):
Scope of measures that cause zero to low environmental damage Scope of measures that cause low to medium environmental damage Scope of measures that cause medium to high environmental damage,
9. We propose the following criteria, which together form the criteria space (see section 4.2):
The criterion of synergy between investment in infrastructure and investment in indigenous technological offerings (4.2.1)
The criterion of the source of financing of investments (4.2.2) The criterion of the ratio of conventional sources to renewable sources (4.2.3)
Concentrated renewables vs. diffuse renewables ratio criterion (4.2.4)
Energy efficiency versus energy consumption per unit of GDP produced criterion (4.2.5)
oTGP vs. GHG targets criterion (4.2.6) Domestic sources vs. energy imports criterion (4.2.7)
Criterion of the interest of the population of Slovenia in natural resources, state ownership versus privatisation of resources and public infrastructure (4.2.8)
10. In order to use the criteria in planning and assessing investment decisions, it is necessary to: - define the relative weight of the individual criteria and the allowed deviations from the targets as part of the energy development policy; - introduce monitoring and evaluation of the achievement of the criteria and use this in investment planning.
11. Slovenia does not have large reserves of conventional energy sources such as oil and natural gas, and there are still large reserves of coal (Velenje, Lendava - Petisovci). Domestic reserves of conventional energy sources should therefore be fully exploited for the production of electricity or heat in accordance with the criteria of economy (see Chapter 5.1).
12. Slovenia should increase its RES capacity taking into account technically exploitable potential, economic viability and sustainable development (see Chapter 5.1).
13. support further research to develop technologies in the field of chemical storage and hydrogen as an energy vector (see Chapter 5.1).
14. The energy efficiency of conversion needs to be increased, and strategic targets and responsibilities for achieving them should be defined at national level (see Chapter 5.2).
15. The share of local energy supply in the total energy supply should be increased, thereby reducing the need to build concentrated generation units (conventional and renewable) and to transmit energy through the electricity grid. Therefore, the role of the consumer needs to be increased and positioned as the smallest subsystem in the energy and natural resources supply system by including Demand Side Management - Active Demand Side Management (DSM) in the Energy Concept of Slovenia with associated (see chapter 5.3):
Introducing dynamic pricing in the balance group based on automatic energy trading by consumers,
increasing the share of dispersed renewable energy generation,
adapting consumers through the integration of new energy technologies and process optimisation in energy consumption, production and storage.
16. Ensure greater participation of domestic industry in the construction of new energy capacities, thereby creating domestic added value and accumulation for the development of the Slovenian economy and the creation of new jobs.
17. the energy sector, as one of the key sectors for the future development of Slovenia, should be developed in a coordinated way in the context of the climate and energy package, according to the purpose of energy use in transport, industry and buildings.
In the light of all the above, we believe that Slovenia urgently needs a clear and achievable national energy policy and strategy, or a new Energy Concept for Slovenia (ECS), both in view of the changed situation on global markets and the urgent need for a new economic impetus for Slovenia.
