GEN energija says that an independent review of its costings for the proposed JEK2 new nuclear project in Slovenia has produced a similar estimated construction figure, but stressed that risk analysis needs to be given a clear focus in future decision-making.
Slovenia's JEK2 project is for a new one or two-unit nuclear power plant, with up to 2400 MW capacity, next to its existing nuclear power plant, Krško, a 696 MWe pressurised water reactor which generates about one-third of the country's electricity and which is co-owned by neighbouring Croatia.
Prime Minister Robert Golob has committed to holding a referendum on the project before it goes ahead, and has suggested the vote could be held later in 2024, with a number of key studies and documents to be published beforehand to "enable citizens to make an informed decision". The current timetable for the project is for a final investment decision to be taken in 2028, with construction beginning in 2032.
The JEK2 project team, following discussions with potential nuclear power plant providers EDF, KHNP and Westinghouse, in May estimated the cost for various reactor sizes, ranging from EUR9.314 billion (USD10.1 billion) for a 1000 MW unit, up to EUR15.371 billion for a 1650 MW unit.
The series of reports published before the referendum now includes a review of input data used to estimate the finances. Carried out by Ernst & Young, GEN energija said: "This showed that the inputs used by GEN in its economic study were within an acceptable cost range compared to recent academic research and industry standards ... at the same time, the sensitivity of the investment's performance to changes in uncertain input parameters can be discerned from the analysis, which requires extreme attention in risk analysis in the further steps of project decision-making."
Kruno Abramovič, executive director for finance of GEN energija, said the estimated cost, in January 2024 prices and excluding financing cost, would be in a range from EUR9.5 billion for a 1000 MW unit to EUR15.4 billion for a 1650 MW unit. Average operating costs were estimated at EUR41.9-45.6 per MWh. It says with an assumed selling price of electricity of EUR75 per MWh "it was determined that the investment is economically justified and that it makes sense to continue with the development of the JEK2 project".
A separate study was published by Jože Damijan from the Faculty of Economics of the University of Ljubljana, which GEN energija said showed that a new unit would "play a key role in ensuring the stability of the power system ... also help mitigate potential short-term price spikes ... achieve climate goals in the energy sector [and] reduce Slovenia's dependence on electricity imports and would even enable it to become a net exporter of electricity".