Slovenia’s Slow Transition to Renewables

The country in Eastern Europe to which I'd move in a heartbeat is Slovenia.  I've never seen so many shades of green, and for a nation smaller than New Jersey, Slovenia offers much for the visitor:  countless hiking opportunities, enchanting lakes such as Bled, a slice of the Adriatic coastline, and once you learn how to pronounce it, Ljubljana, its capital, is a charming city full of Baroque and Art Nouveau architecture. 

For the investor, Slovenia is also compelling:  a well-educated and sophisticated workforce, an enthusiastic embrace of international trade, and reliable infrastructure--railroads are all over the country, a legacy of years under Austro-Hungarian and later, Yugoslavian rule.  And unlike the other nations that emerged from the 1990s disintegration of Yugoslavia, Slovenia did not suffer from the scars of war--its 10-day war for independence in 1991 resulted in less than 30 deaths among Slovene soldiers.

 

Slovenia is also an example of the struggles small nations must face when meeting international standards for renewable energy.  A full member of the EU, Slovenia has a little over 10 years to meet that 2020 deadline of having 20% of its energy from renewables . . . and the country relies on fossil-based fuels for about 98% of its transportation fuel needs.  Although about a quarter of its electricity comes from hydroelectricity, most of its hydro plants date from the World War II era.  So what are the options for a country of 2 million?

 

Similar to Scandinavian countries like Sweden and Finland, Slovenia is covered in trees:  over half of its land mass is forest.  Unlike Sweden, however, there's no paper industry, so no waste (black liquor, in industry terms), is available for biomass feedstock.  And certainly we don't want the Slovenes mowing down their forests, which provide a haven for locals as well as the Germans, Austrians, and Italians who crave its charming villages and open space. 

 

So incrementally, Slovenia is incorporating renewables such as solar and geothermal technology in its energy kit.  Using feed-in tariffs(where the higher cost of renewables is spread across all customers in a geographic region), Slovenia has more solar installation farms in the works.  The Slovene government, while often criticized for its slow march towards privatization, is encouraging more investment with tax subsidies and loans, up to 40% of the project cost.  For rural areas that are off the national energy grid, such projects can receive an additional 20% . . . allowing renewables to become even more cost effective.

 

The Slovenes are making the most being independent for the first time in their chaotic history, and their pragmatism paired with optimism most likely will see them meet or exceed that 2020 goal (in fact, they are at about 16-18% already, depending on which survey you read.)  In fact, should Slovenia meet these goals, this energy importer could become a solid net energy exporter.

 

But don't take my word for it.  Make a point to visit Slovenia.  Wander around Ljubljana, chat with Slovenes about their bright future, rent a boat in Lake Bled and make a wish at its island castle, and then be sure to do a Slovene farm stay.  If you have an experience like my brother and I did, you may be able to borrow the family car and traipse across this southeastern Europe gem!  (Though I think they served us spaghetti our first night, if I recall, which certainly doesn't smack of a genuine farm experience, but I digress!).

 

If any of you in Slovenia are working on renewable energy projects, we'd be thrilled to hear from you!