Krško nuclear shortfall and replacement purchases
GEN Energija says reduced output at Slovenia’s Krško nuclear power plant is costing it at least EUR 300,000 per day. The company is turning to the wholesale electricity market to replace generation that had already been sold under forward contracts. GEN Energija had sold most of Krško’s expected 2026 electricity production in advance. With the plant generating below planned levels, replacement electricity is needed to meet contractual obligations.
Wholesale prices have averaged around EUR 180/MWh. Evening prices have risen materially higher as regional supply conditions tighten. The need to secure replacement volumes therefore exposes GEN Energija to the difference between forward contract pricing for Krško power and current wholesale acquisition costs.
Brestanica gas plant used more amid higher evening prices
The Krško shortfall is also increasing reliance on the Brestanica gas-fired power plant. Brestanica is normally used primarily as a system reserve. Higher electricity prices have nevertheless supported its operation despite elevated gas and carbon costs. Evening market prices have recently reached EUR 300–400/MWh.
As a result, Brestanica has exceeded its expected full-year generation target ahead of schedule. The plant produced 25.75 GWh by 5 August, which is around 3% more than its planned generation for the entire year. Increased gas-fired output provides additional domestic generation during periods of tight regional supply.
Cost pressure from replacement power and higher marginal generation
The financial impact stems from lower nuclear production occurring after Krško output was already sold forward. GEN Energija must purchase replacement electricity at wholesale prices while continuing to meet contract requirements tied to expected generation. In parallel, running Brestanica adds generation at a higher marginal cost than nuclear output.
The combined effect of costly replacement purchases and increased gas-fired generation is adding pressure on GEN Energija’s finances. This comes while Southeast European electricity prices remain elevated, particularly during evening peak periods.
