Electricity generation supported under Borzen’s renewable energy and combined heat and power subsidy scheme increased significantly in the first quarter of 2026, rising by 156 percent year-on-year compared to the same period in 2025.
According to data from Borzen, facilities participating in the support system produced a total of 424 GWh of subsidized electricity between January and March. Despite this strong increase in output, overall subsidy payments remained relatively stable at 18.5 million euros, indicating a shift in the structure of supported generation rather than a rise in total financial burden.
A key driver of this change was the inclusion of PPE-TOL, a new gas-fired combined-cycle cogeneration facility in Ljubljana that supplies both electricity and district heating. Its integration into the system significantly boosted electricity generation from fossil-fuel combined heat and power (CHP) plants.
Output from fossil-fuel CHP installations increased more than fourfold year-on-year during the quarter, reaching 350.8 GWh and accounting for approximately 83 percent of total subsidized electricity production.
Although Slovenia’s support mechanism is primarily designed to encourage renewable energy and efficient cogeneration, fossil-fuel CHP units became the largest contributors to subsidized generation during the period. These plants received 5.5 million euros in support payments, representing roughly 29 percent of total subsidies distributed.
Meanwhile, solar energy remained the largest recipient of financial incentives. Solar installations generated 30.1 GWh of electricity but received 7.1 million euros in subsidies, accounting for about 39 percent of total support payments. This highlights a significantly higher subsidy intensity per megawatt-hour for solar power compared to fossil-fuel cogeneration.
Other renewable technologies also participated in the scheme, with biomass facilities receiving 2.5 million euros and biogas plants obtaining 2.3 million euros in support. Hydropower and wind energy contributed only a relatively small share of both subsidized generation and financial allocations during the quarter.
At the same time, the average subsidy level per megawatt-hour dropped sharply. In the first quarter of 2026, support averaged 43.7 euros per MWh, representing a decline of around 60 percent year-on-year, reflecting both changes in the generation mix and evolving cost structures within Slovenia’s support framework.
