Ljubljana - EUR 4.2 billion euro is planned for investments in the national electricity distribution system in 2021-2030 to make the system ready for challenges of energy transition, SODO, the state-owned operator of the electricity distribution system, said on Thursday.

The development plan of the electricity distribution network for the coming ten years earmarks 62% of the funds for new infrastructure and 34% for upgrades.

SODO could provide EUR 833 million in own funds and another EUR 640 million with long-term borrowing, which amounts to EUR 1.47 billion or 34% of the planned funds.

Much of the money is expected to come from the EU and the national budget, with SODO saying the investment plan largely depended on the ability to raise the funds.

The company added that major investments will be needed to make the system ready for the challenges the government has set down in the national energy and climate plan.

Director Stanislav Vojsk expects peak demand to be the most important factor in planning the development of the infrastructure.

Energy transition, foremost mass transport electrification and the use of power for heating, is expected to raise peak demand, so the documents - apart from the development plan also the systemic operating guidelines for the electricity distribution network (SONDSEE) - take the trend into account.

Both documents were drafted in collaboration with all five electricity distribution companies and have been approved by the Infrastructure Ministry.

Another major challenge will be a relatively short period of time for the investments, which according to SODO calls for fresh temporary hirings or reassignment of staff within the electricity distribution system.