Slovenian energy sector has 2 billion euro credit potential, but projects are scarce

Slovenia's energy sector possesses a credit potential of around 2 billion euros, according to Andrej Lasič, a member of NLB's management board. This capital could be mobilized by the Slovenian banking system if projects are adequately prepared.

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According to our estimates, the Slovenian energy sector still has approximately two billion euros of additional credit potential, which, with appropriately prepared projects, could also be supported by the Slovenian banking system.

However, the country has seen relatively few major energy infrastructure projects in recent years. Consequently, NLB is focusing a substantial portion of its financing activities on the broader Southeast European region. Notable projects include wind farms in Serbia and Kosovo, such as Selac, Krivača, and Košava.

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We are closely monitoring the development of the Slovenian energy sector and are ready to actively support a new investment cycle in energy.

While NLB has supported projects like the Brežice hydroelectric power plant and the TE-TOL gas-steam unit in Slovenia, the scarcity of new production capacity investments is evident. The bank remains committed to projects that enhance energy security, contribute to decarbonization, and bolster the long-term competitiveness of the economy.

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The key challenge is not a lack of capital, but a lack of investment-ready projects, which is also a consequence of a lack of long-term vision and decisiveness from key actors.

The demand for financing energy projects exists but significantly lags behind the banking sector's capacity. Banks are well-prepared financially to support the energy transition on a much larger scale. The primary obstacle is not a lack of capital but a deficit of investment-ready projects. This is partly due to a lack of long-term vision and decisiveness from key stakeholders. Common barriers include protracted spatial planning and permitting procedures, procedural complexity, and regulatory unpredictability, all of which complicate long-term investment planning and execution.

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The most common obstacles are lengthy spatial planning procedures, obtaining permits, process complexity, and regulatory unpredictability, which complicates the planning and execution of long-term investments.