Ljubljana, 25 March 2025 – Four months after the National Assembly cancelled a planned referendum on the second unit of the Krško Nuclear Power Plant (JEK2), the discussion on the country’s energy future remains more relevant than ever. The British-Slovenian Chamber of Commerce reignited the debate on the future of nuclear energy in Slovenia at its latest Tea with Reason, gathering top government officials, industry leaders, and international experts to discuss the country’s energy strategy.

The key takeaways were clear: the spatial planning of JEK2 is expected to be underway by summer this year, with two potential suppliers (American Westinghouse and French EDF) already conducting technical feasibility studies. A financing model is also in development, with a target to finalise all the necessary details to make a final investment decision on JEK2 by 2028. While a second large nuclear unit remains a central option, the event also underscored the growing interest in Small Modular Reactors (SMRs). Special guest from the UK – Alexis Honner from Rolls-Royce SMR – explained how these factory-built, modular reactors could revolutionize nuclear energy, offering a flexible, scalable, and potentially faster-to-market alternative to traditional large nuclear plants.

Opening the event was Victoria Harrison, British Ambassador to Slovenia, who stressed that this event could not have been more timely considering the scale of the challenges we face: “Energy security is no longer just about supply. It’s about sovereignty, economic resilience, and a liveable planet. Russia’s invasion of Ukraine shows long-term security depends on domestic, clean, reliable energy, creating jobs and resilience. The future lies in innovation: UK is investing £385 million in an Advanced Nuclear Fund, including up to £215 million developing SMRs. Today, we have British expertise from Rolls-Royce SMR, Bechtel, UK Export Finance – exploring how SMRs might contribute to Slovenia’s energy goals. This is a generational economic opportunity, and we’re ready to work with Slovenia. Our goals are the same: clean, affordable, sovereign energy. In the words of PM Keir Starmer: The race to net zero is the race of our lifetime and one we must win together.”

Slovenia’s energy strategy hinges on three possible scenarios: proceeding without nuclear power, extending the lifespan of the existing Krško reactor while investing in renewables, or constructing a second nuclear unit. According to Klemen Dragaš, Director of Asset Management and Projects at ELES, studies indicate that a 100% renewable scenario is not viable due to infrastructure and energy security challenges. "Slovenia has identified six potential sites where the grid is strong enough to also integrate SMRs, making them an option alongside larger nuclear plants."

Danijel Levičar, State Secretary for the National Nuclear Programme, confirmed that JEK2 remains a government priority. "Our focus is on three areas: spatial planning, selecting a technology provider, and finalising a financial model. By 2028, we aim to have everything ready for a final investment decision." He also stressed that Slovenia is examining best practices from other countries, acknowledging that referendums on energy decisions can be influenced by populist politics rather than technical and economic realities. As an alternative, public debate could provide a more structured and informed approach to decision-making rather than a referendum.

The discussion also turned to SMRs, with Alexis Honner, Business Development Manager at Rolls-Royce SMR, explaining that Rolls-Royce has over 70 years of experience in nuclear technology, having built reactors for every British nuclear submarine and expecting SMRs to be operational by 2030. "We’re using proven nuclear technologies and assembling them into modular reactors that are more affordable, scalable, and deployable at a faster pace," Honner explained. He views large nuclear reactors and SMRs not as competitors but sees room for both in the market. While final costs are yet to be determined, Honner noted that Slovenia, with its existing nuclear program, is well-positioned to integrate SMRs into its energy mix. Dejan Spasovski, Founder and Owner of ESG Novo, echoed this optimism, expressing confidence that SMRs will become a productive and proven technology within the next 5–10 years.

GEN energija moves forward with JEK2, with its current focus being on spatial planning. CEO Dejan Paravan added that, for now, Slovenia should prioritize large nuclear reactors with a proven track record, involving co-investors to derisk the projects. At the same time, he acknowledged the potential future role of SMRs for Slovenia’s long-term energy prosperity, as the technology matures and costs become clearer.

Large-scale nuclear projects, whether a traditional reactor or an SMR, require state involvement and a mix of financing models rather than relying solely on market itself. Duško Krsmanović, Head of UK Export Finance for the Western Balkans and Central and Eastern Europe, explained that UK government's export credit agency has up to five billion pounds available to support potential projects in Slovenia. "We have substantial capacity to assist Slovenia in securing investment for large-scale infrastructure, including nuclear energy.” Given Slovenia’s strong credit rating and developed economy, he sees no major obstacles in securing the loan.

One of the concerns raised was whether a new nuclear power plant would disrupt electricity prices. Tomaž Štokelj, CEO of Holding Slovenske elektrarne, dismissed this idea, arguing that energy demand is rising, particularly with the growth of electric vehicles and electrification in industry. He believes that nuclear energy is not killing the market, but rather stabilising it. However, new energy sources are still necessary to meet future demand. On SMRs, Štokelj pointed out to Trbovlje and Šoštanj as promising locations due to their existing energy infrastructure and access to cooling water, making them ideal candidates for future deployment.

Private capital is ready to support JEK2 if the state creates the right conditions, says Igor Akrapovič, CEO of Akrapovič: "Slovenian businesses overpaid nearly a billion euros for electricity two years ago. If we continue relying on imports and delay investment in new power sources, this situation will only worsen. If we introduce 10–20% private capital into these projects, also we will be the guards of such investment and ensure greater transparency."

From a legal perspective, Ana Stanič, Principal at the UK law firm E&A Law, noted that the SMR could face a more complex and lengthy licensing process than JEK2, as it involves deploying nuclear technology on new sites, while JEK2 is planned next to an existing, locally accepted nuclear plant. Meanwhile, Steven Barnes, Head of CEE & Middle East at Bechtel, a company renowned for delivering large-scale infrastructure and nuclear projects, brought to attention the importance of supporting the local supply chain. At Bechtel, they are committed to collaborating closely with local contractors and prioritizing the upskilling of local workers to ensure the success of projects like JEK2.

Adding to the conversation were Ana Grabnar Crnčec, Partner, Law firm Rojs, Peljhan, Prelesnik & Partners; Jorg Jurij Hodalič, Director, E-NET OKOLJE; and Franc Sinur, General Manager, IBE. The event’s main round table was moderated by Žiga Fišer, Country Trade Director at the British Embassy Ljbljana.

A special thank you goes to our partners for making this Tea with Reason possible: Main Partner – ESG Novo, Panel Partners – Department for Business and Trade, UK Export Finance, and Holding Slovenske elektrarne, and Supporter – GEN energija. The event was organised in cooperation with the Chamber of Commerce and Industry of Slovenia.

Photo highlights are available here. Watch the tv piece on POP TV here (Slovenian language only).