Slovenia is at the centre of a strategic struggle between France and the US, as both nations seek to secure a contract to build the Krsko 2 nuclear reactor. The estimated EUR 11bn project aims to bolster energy security across Central and Eastern Europe (CEE) and align with Slovenia’s decarbonisation goals, reshaping CEE energy security.
Slovenia is preparing to select a supplier for its new reactor, with French state utility firm Electricite de France (EDF) and US-based Westinghouse among the bidders. Initially, South Korea’s Korea Hydro & Nuclear Power was among the contenders but withdrew from the tender process, citing strategic priorities and business conditions, leaving EDF and Westinghouse as the primary bidders.
The outcome will determine Slovenia’s long-term energy mix and signal the region’s technological and geopolitical alignment as countries reduce reliance on fossil fuels and Russian gas. Nuclear power accounts for around a third of Slovenia’s electricity generation. The European Commission (EC) including nuclear power in its Net Zero Industry Act has further underscored its strategic importance.
Nuclear returns to centre stage in CEE
The Krsko 2 reactor is to be built next to Slovenia’s existing nuclear plant, a Westinghouse-designed pressurised water reactor in operation since 1983. The plant is co-owned by Slovenia’s GEN Energija and Croatia’s Hrvatska elektroprivreda, each holding a 50% stake.
“The nuclear power plant in Krsko has operated very successfully since it started operating in 1983,” said Dan Lipman, President of Westinghouse Energy Systems. “We are pleased to extend the relationship to closely study the feasibility of the Krsko 2 project.”
Westinghouse proposes its AP1000 model, recently deployed at Vogtle in the US and selected by Poland for its nuclear program, noted for passive safety systems and modular construction.
Krsko 2 aligns with Slovenia’s commitment to achieving carbon neutrality by 2050, and its climate strategy endorses nuclear energy as a long-term solution to reduce greenhouse gas emissions by 80-90% from 2005 levels.
Slovenian Prime Minister Robert Golob, a green energy mogul before entering politics, said “nuclear energy is part of the solution to the climate crisis, not part of the problem. It is therefore essential that we have clear positions and approach this technology with full responsibility.”
Competing bids reflect global stakes
EDF is promoting its European Pressurised Reactor (EPR) design, known for high power output, which is under construction in Finland, the UK and France.
“The feasibility study will focus on our EPR technology and assess site-specific conditions,” said Vakisasai Ramany, Vice-President for International Nuclear Development at EDF.
The Krsko tender has drawn high-level attention from both the US and France. French President Emmanuel Macron has reportedly discussed the project with Golob, while the US embassy in Ljubljana has publicly backed Westinghouse.
“We have great cooperation with Slovenia on security, our economic ties are strong,” said US Ambassador Jamie L. Harpootlian, adding that “the US company Westinghouse had been operating the Krsko nuclear power plant for decades”.
Strategic significance for regional energy security
The Krsko 2 decision carries regional significance, as countries across CEE reevaluate their energy strategies following Russia’s full-scale land invasion of Ukraine in February 2022. Governments from Poland to Romania are pursuing nuclear to reduce dependence on Russian energy, managing the intermittency of renewables, and securing long-term supply.
Inclusion in the Net Zero Industry Act has opened the way for eligible funding and permitting support, although nuclear remains controversial in Europe, as the EU’s’ stance on new builds shifts.
Timetable, financing considerations
Krsko 2 project envisions 1 or 2 units with a combined capacity of up to 2,400 MW, adjacent to the existing Krsko plant. Cost estimates vary based on reactor size, ranging from EUR 9.3bn for a 1,000 MW unit to EUR 15.4bn for a 1,650 MW one. An independent review by Ernst & Young confirmed the project’s economic viability within this range.
Slovenia aims to finalise investment decisions for Krsko 2 by 2028, with construction beginning early next decade. “Then a referendum will be held to seek the broadest possible national consensus for constructing this unit,” Golob said.
A referendum scheduled for November 2024 was cancelled due to legal challenges and concerns about voter preparedness. The government says holding the referendum closer to the final investment decision will ensure a broader public consensus.
Environmental approval and public consultations are still pending, and inflationary pressures may alter project costs. Both bidders are expected to offer broader industrial cooperation packages to strengthen their positions. Slovenia’s selection of Westinghouse or EDF will likely depend on financing terms, technology transfer, and integration with existing infrastructure.
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