Slovenia’s subsidized power output surges as CHP expansion reshapes Borzen support mix

Slovenia’s electricity support framework is delivering more subsidized generation without increasing the overall bill, according to data from Borzen. In the first quarter of 2026, electricity produced under the renewable energy and combined heat and power (CHP) subsidy scheme rose sharply—up 156% year-on-year—while total payments remained broadly stable, suggesting a change in the composition of supported output rather than a wider expansion of fiscal costs.

Borzen data show that participating facilities generated 424 GWh of subsidized electricity between January and March. Despite the strong increase in output, subsidy payments totaled 18.5 million euros, indicating that higher volumes were achieved alongside relatively steady funding levels.

CHP growth lifts fossil-fuel share despite policy focus on efficiency

A major factor behind the shift was the inclusion of PPE-TOL, a new gas-fired combined-cycle cogeneration facility in Ljubljana supplying both electricity and district heating. Its integration boosted electricity generation from fossil-fuel CHP plants, which increased by more than fourfold year-on-year during the quarter.

Fossil-fuel CHP installations produced 350.8 GWh of subsidized electricity, accounting for about 83% of total subsidized generation. Although Slovenia’s mechanism is designed primarily to encourage renewable energy and efficient cogeneration, fossil-fuel CHP became the largest contributor to subsidized output during the period.

That dominance also showed up in payments: fossil-fuel CHP units received 5.5 million euros in support, or roughly 29% of total subsidies distributed.

Solar remains top by subsidy intensity; per-MWh support falls

Solar energy continued to attract the largest share of financial incentives. Solar installations generated 30.1 GWh but received 7.1 million euros in subsidies, representing about 39% of total support payments—highlighting a significantly higher subsidy intensity per megawatt-hour compared with fossil-fuel cogeneration.

Other renewable technologies also participated in the scheme. Biomass facilities received 2.5 million euros and biogas plants obtained 2.3 million euros in support, while hydropower and wind contributed only a relatively small share of both subsidized generation and allocations during the quarter.

Alongside the changing technology mix, average support levels fell markedly. In Q1 2026, subsidies averaged 43.7 euros per MWh, down around 60% year-on-year—reflecting both shifts in generation composition and evolving cost structures within Slovenia’s support framework.