Two decades ago, there were very few production sources on the low-voltage network, but today heat pumps, solar power plants, energy storage and charging stations for electric vehicles are connected to it on a large scale. As a result, both the need for electricity transmission and the complexity of network management are increasing. At the same time, the frequency of climate-related natural disasters is increasing, as a result of which the distribution network is becoming physically more exposed and vulnerable.
Modernization of the distribution network is necessary due to the increasing demands on the reliability, capacity and resilience of the network. Therefore, electricity distribution companies are intensively increasing the amount of investments in the development and modernization of the network infrastructure. Since one’s own financial resources are limited, any possibility of obtaining additional funds is an important support in the implementation of investment plans. In this context, the then Ministry of the Environment, Climate and Energy (MOPE) announced several public tenders as part of the Recovery and Resilience Plan (NOO). For the electricity distribution companies (EDPs) Elektro Celje, Elektro Gorenjska, Elektro Ljubljana, Elektro Maribor and Elektro Primorska, funds were mainly available under the Green Transition and REPowerEU pillars, which made it possible to co-finance key projects to strengthen and modernize the distribution network.
Structure of the Recovery and Resilience Plan (source: GOV.SI – Summary of changes to the NOO November 2023) PHOTO: GIZ DEE
A plan for recovery and resilience
The Green Transition is the first pillar of the Recovery and Resilience Plan (RRP). Within the framework of component C1K1 Renewable energy sources and efficient use of energy, the Strengthening of the electricity distribution network measure aimed at increasing the capacity, reliability and flexibility of the network was foreseen for electricity distribution companies.
The measure consisted of:
- upgrading the distribution network by building new or reconstructing existing transformer stations equipped with smart network elements, and
- construction of a new low-voltage network.
The purpose of the measure was to create conditions for more efficient integration of renewable energy sources, electrification of consumption and further development of advanced network solutions that enable safe and reliable operation of the distribution system.
PHOTO: Nejc Fon
In three years, electricity distribution companies built 838 transformer stations and 1,300 km of low-voltage network within the JR NOO DIST EE 2023 and NOO – DIST EE 2024 tenders, which was a common milestone and goal. The total realization, the value of co-financing and the actual total value of investments by individual EDP are shown in the table below.
Total realization, value of co-financing and actual value of investments according to EDP (source: EDP data).
REPowerEU is the fifth pillar within the NOO, within the framework of which a measure was envisaged for electricity distribution companies to strengthen the medium-voltage distribution network of electricity. Within the tender, electricity distribution companies built 279 km of medium voltage network, which was a common milestone and goal. The total realization, the value of co-financing and the actual total value of investments by individual EDP are shown in the table below.
Total realization, value of co-financing and actual value of investments according to EDP (source: EDP data).
Factors that influenced the implementation of projects
The implementation of projects was part of the regular business of electric distribution companies, but due to the markedly increased volume of investments, it brought many challenges. The key was to secure financial resources on time and prepare the necessary project documentation. Placing buildings in the space is also an important challenge, as the procedures for obtaining the right to build and construction permits are often long and unpredictable. Additional problems were caused by increased demand for material and services, rising prices and delays in deliveries.
Successfully completed projects and achieved results
The distribution network is crucial for a successful energy transition. With co-financing from NOO, electricity distribution companies accelerated the modernization of the distribution network and made investments that directly enable additional connections of heat pumps, solar power plants, energy storage units and charging stations for electric vehicles. The achieved results are not only important from the point of view of the achieved milestones and the successful absorption of European funds, but mainly because of the long-term benefits for network users, the economy and the green transition. Further investments in a powerful, resilient, reliable and digitally supported distribution network will therefore continue to be among the key conditions for a secure supply of electricity and a successful energy transformation.
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