Krško - Blaž Košorok, the new head of GEN Energija, a state-owned power company that manages Slovenia's half of the Krško Nuclear Power Plant, believes a second reactor in Krško would guarantee reliable and cost effective energy supply. Energy prices will never go back to what they were, he said in an interview with the STA.

Košorok is primarily concerned by the Russian attack on Ukraine, which he believes will affect the energy sector in the coming years. He believes cooperation is the answer. "If we are divided in a populist manner, nothing good will happen to us, not only in the energy sector but in the economy in general, which expects quick reactions."

GEN Energija has drawn up a strategy for transition to a low-carbon future, which however is yet to be confirmed by Slovenian Sovereign Holding.

The first pillar will be the N-plant in Krško, which Košorok said had been successfully operating for over 40 years, producing reliable and safe low-carbon energy.

The second will be a chain of hydro power stations on the lower Sava, where Košorok expects progress in the EUR 300 million project of Mokrice this year or the next.

The third pillar will be solar power plants and the Brestanica gas-powered station, which Košorok thinks will be crucial for supporting renewables. The European Commission acknowledged this at the end of 2021, he said.

He thinks nuclear energy will be inevitable. He hopes that a decision on the construction of the second reactor in Krško will be made before 2026.

Brestanica, seen as a backup to the N-plant and a reliable source in case of instabilities in the grid, will probably launch investments in two new gas units.

Three more hydro power stations could also be built in the central section of the Sava with GEN Energija as a stakeholder - Trbovlje, Renke, Suhadol. "The interest of our group is to actively participate in this project."

Environmental aspects will need to be taken into account, he warned, noting that rules on the Natura 2000 protected areas were an obstacle to utilising the Sava's potential.

"We speak a lot about renewable energy sources but when it comes to implementation, we are faced with a million complications," he said, pointing to the absence of wind farms in Slovenia.

"If we want to become a low-carbon society and also want cost effective energy supply, using all this potential will be necessary," he said.

The green transition that Slovenia has committed to will happen one way or another. "Perhaps it will be milder that we planned, perhaps the share of renewables will be lower, perhaps greenhouse gas emissions will be different ... but it will definitely happen."

As for solar power plants, Košorok said the distribution network would need to be upgraded lest it become a bottleneck.

Investments in the grid are necessary, but due to the government decision to temporarily freeze network fees, only emergency investments can be carried out. Still, much can be done through digitalisation and smart networks, he said.

Power distributors say they would need over EUR 4 billion in the coming years, but Košorok notes that all five companies had invested only EUR 110-120 million a year in recent years.

Nuclear energy from the second reactor could together with renewables help replace the loss due to the planned coal phase-out in 2033.

As for the potential referendum on the second nuclear reactor, he said it was dilemma whether such an important issue should be put to a referendum, were people usually vote for or against the government rather than on the actual contents.

According to Košorok, Slovenia is an important part of the European Network of Transmission System Operators but the question is at what price this electricity would be available.

The issue of how to replace coal is a matter of "national security, where issues are very complex", he said.

Commenting on Croatia's willingness to take part in the second reactor project under the same model of a 50:50 stake as in the Krško plant, he said the last 40 years of joint ownership of the N-plan had been "more or less good".

"There have been ups and downs but I think this is a good example of how despite a 50% co-ownership, a facility can be managed well if there are wise people on both sides."

GEN Energija is open to Croatia's initiative but is still reserved in this phase, as a financial plan is not available yet, he said.

If the lifespan of the existing reactor is to be extended by 2042, a radioactive waste repository will need to be built but due to complications, a contractor has not been picked yet.

Košorok would not comment on the selection procedure, but said he was confident that the repository would be built on time. According to the latest timeline, it should be built between 2023 and 2025.

The GEN Energija head believes electricity prices will never be as low as they used to be. He thinks the EU should review the market prices, as he thinks they do not reflect the reality. Košorok said that although he was an advocate of a free market, an intervention would be needed such as a cap on gas or some other measure to keep prices manageable.

Until recently a state secretary at the Infrastructure Ministry, Košorok dismisses criticism that his appointment was political, saying this allegation was one of election topics. "These accusations are nothing new."

He said he had been invited by the supervisory board to run for the top post at GEN Energija and felt it was "hygienic" to quit his previous job first although this was risky. "The supervisory board could have decided not to appoint me," he said, adding there was also no guarantee that he would not be replaced if he did not perform.