We are fully aware of the interplay of the capitals we tap to create value for our key stakeholders.
Low-carbon energy sources we harness to generate electricity: predominantly nuclear and hydro, solar energy under development.
Financial sources (mainly equity and debt financing) available to us for providing a comprehensive supply of energy, from electricity generation to trading and sales to development and investments in existing and new generation capacities.
Employees and intellectual capital
The knowledge, skills and dedication of our employees in performing our core activities for creating value, primarily by ensuring:
Relationships with external stakeholders in providing a comprehensive supply of energy, primarily relationships with the founder and owner, decision-makers, business partners and suppliers, local communities, professional circles, the media and other key stakeholders we create value for.
Promoting the understanding of the importance of having a comprehensive energy supply for our daily lives and lasting social well-being.
We are guided by an appreciation of the importance of having a comprehensive supply of electricity in order to meet the daily needs of modern society: its people, product and service industries, public sector and other consumers. We seek to create and strengthen positive sustainable connections between energy, its use and social well-being.
Generating electricity with which we contribute to the reliable supply of electricity for consumers and to the stability of the national power grid.
We generate electricity primarily at the nuclear power plant (NEK) and hydroelectric power plants (SEL and HESS), the cornerstones of the present and future secure supply of low-carbon electricity. We help keep the national power grid secure and stable not only by providing reliable electricity generation but also through a gas-fired thermal power plant (TEB), which has an impressive start-up track record and delivers essential ancillary services of tertiary frequency control.
Trading and sales of electricity and natural gas.
With a well-thought-out vertical integration – from electricity generation to electricity consumers – we are successfully expanding our pool of large and small consumers of electricity and natural gas both at home and abroad. In our energy trading and sales activities, we cleverly seize the market opportunities we identify around us.
Development and investments for a reliable supply of low-carbon energy also in the future.
Research, development and investments allow us to perform our closely interconnected activities in the long term and to promote stability of our operations and further development of our Group and the wider Slovenian society we serve.
We keep a close watch on and effectively manage opportunities and risks, both internal and external. By doing so, we identify and help create new business and development opportunities to promote the growth of the GEN Group in the domestic and international arena.
Energy supply has a crucial impact on our economic development, national security, quality of the environment and living, and social well-being in general.
The GEN Group provides Slovenia's economy and entire society with a reliable and highly efficient generation of low-carbon electricity. Despite the electricity generation industry's current trends moving towards decentralized power generation, industries and other major consumers will continue to need robust power generation and a matching transmission network.
»Thanks to our internal optimization processes and commercial activities, we reached or even exceeded our business targets, and this despite the tough situation in the market and poor hydrological conditions in 2017. The Group as a whole generated more than EUR 2 billion in turnover, which ranks us among the top three business groups in the country.«
General Director, GEN energija d.o.o.
Capitals of the GEN Group
more than EUR 2.4 billion in turnover
EUR 29.4 million in net profit
In 2017, the generation facilities of the GEN Group companies generated a combined total of 3,519 GWh of electricity, which is 8% more than the preceding year. Electricity generation was safe, reliable and friendly to the environment throughout the year, thanks to our past track record of ongoing investments in knowledge and equipment. By effectively coordinating the generation outputs of all the Group's power plants, we successfully tackled this year's challenging hydrological conditions. As much as 99.7% of the electricity we generate comes from low-carbon sustainable and renewable energy sources: nuclear and hydro.
With an impeccable start-up track record, TEB fulfilled its role in helping ensure power grid stability; its important role was particularly evident during the challenging conditions for the energy industry in early 2017.
»The prudence of our investments in technological upgrades is reflected by the fact that we achieve excellent operating results and meet the highest standards in the nuclear industry, which has been confirmed by international missions. The most complex project to be completed during the 2018 scheduled maintenance outage is the construction of an auxiliary control room.«
President of the Management Board, Nuklearna elektrarna Krško d.o.o.
»The construction of Brežice HPP went according to schedule and the financial plan. Ahead of us now is the construction of Mokrice HPP. With it, the GEN Group will complete the chain of hydroelectric power plants on the lower course of the Sava River.«
Director, Hidroelektrarne na Spodnji Savi, d.o.o.
»In 2018, we are going to allocate EUR 8.11 million worth of financial resources to investments and development of existing power generation facilities and identification of new opportunities for harnessing renewable energy sources for generating electricity.«
Director, Savske elektrarne Ljubljana d.o.o.
»In 2017, the new gas turbine unit was successfully synchronized with the power grid and driven by liquid fuel for the first time. A technical inspection and trial operation will follow in 2018. We have earmarked EUR 7.51 million for investments and development.«
Director, Termoelektrarna Brestanica d.o.o.
Capitals of the GEN Group
of electricity generated in total in 2017, of which:
Realization of NEK's plan for 2017
Share of nuclear energy in the total generation output of the GEN Group power plants
Low-carbon operation by the GEN Group's power generation facilities: as much as 99.7% of all our electricity comes from low-carbon nuclear and hydro energy
Trading and sales
The GEN Group is a well-organized electricity trader, with cross-border wholesale trading infrastructure that gives us access to all pricing data and information needed to ensure optimal utilization of our production resources. In 2017, we continued with the vertical integration – from electricity generation to electricity consumers – and successfully incorporated the company Elektro energija into the GEN-I Group. This allowed us to seize the opportunities for trading in electricity and natural gas in wholesale markets in the wider region. In the future, we will continue to focus on these markets and will also seek to expand sales to the neighbouring countries.
The rightness of our decisions to invest generously in development and human resources in the area of energy trading and sales has manifested in outstanding business results, allowing GEN-I to again reinforce its reputation as one of the fastest-growing energy companies in Europe.
»We have had outstanding business results in 2017 and generated over EUR 2.3 billion in revenue, which is more than 50% above target. We have successfully launched the sale of solar panels for home-generated electricity.
The forward-looking approach, innovation and flexibility promoted by GEN-I are the right tool set for tackling the challenges brought by further advances in the energy markets.«
dr. Robert Golob
DSc, President of the Management Board, GEN-I, d.o.o.
Capitals of the GEN Group
Infrastructural and intellectual capital
Trading in 51.9 TWh of electricity
Trading in 19.2% higher amounts of electricity than in 2016
Successful incorporation of the company Elektro energija into the GEN-I Group
Major buyers' and sellers' markets: Central, Southeast and Western Europe
Development and investments
The GEN Group creates synergies on a continuous basis in order to maximize the generated value. Our activities in power generation, trading and sales, and development and investments are mutually supported and coordinated. This is a shared responsibility of the managements of the GEN Group companies and their 988 employees, who possess extensive knowledge, skills and commitment to fulfilling our common vision of building a safe, reliable, sustainable and competitive energy future for Slovenia.
Our business, operational, commercial and other successes are based on the GEN Group's big-picture thinking and sustainable operations, as well as extensive investments in the development and training of employees and the raising of interest in – and improving the perception of – topics associated with energy and the energy industry among our key stakeholders.
In 2017, modifications to NEK were carried out in response to downstream Brežice HPP, which was a complex project both in building and technological terms, and the safety upgrade to NEK continued, the newly built Brežice HPP performed a test run in September, and TEB's new gas turbine unit was synchronized with the power grid for the first time in December. We will continue with our strong investment activity in 2018.
»Our strategic development projects include the JEK 2 project, which is long overdue. This project relevantly addresses all three principal focuses of the EU and Slovenia's energy policies: climate sustainability, reliability and competitiveness of the energy supply. The energy industry is ready for the JEK 2 project, what we need now is political will and social acceptability. For this project, we are counting on wider international or regional cooperation, with which Slovenia – as a stable country in energy security terms – will be able to strengthen its reputation in the EU." «
General Director, GEN energija d.o.o.
Capitals of the GEN Group
EUR 8873 million
Total investments in 2017 (only central investments listed in brackets) EUR 88.73 million, of which:
Promoting the knowledge and raising the awareness of energy and energy generation, in 2017 primarily through:
Employees and intellectual capital
988 employees, of which more than 66% with at least higher education qualifications
professional education and training for executive and management levels and key employees across all the areas of operations
2017 was a successful year for the GEN Group, with EUR 29.4 million in net profits, which is above the target. While the result is below that from the previous year by 8%, the result for 2016 can partly be attributed to one-off effects of transitioning to consolidated financial statements pursuant to IFRS. The remarkable business performance in 2017 is best confirmed by operating profit (EBIT), which is up by 133% from 2016.
We are growing. The GEN Group generated more than EUR 2 billion in turnover, which ranks us among the top three business groups in the country.
The electricity generation facilities of the GEN Group companies generated a combined total of 3,519 GWh of electricity. We are pleased with the result since it is up by 8% from 2016 on account of not having a maintenance outage scheduled at NEK and despite unfavourable hydrological conditions.
With safe and stable operation, NEK generated 5,967 GWh of electricity, half of which, 2,984 GWh, went to GEN, or the Republic of Slovenia, under the Intergovernmental Agreement on NEK.
In 2017, our hydroelectric power plants generated 522 GWh of electricity despite relatively unfavourable hydrological conditions.
Electricity production was safe, reliable and friendly to the environment throughout the year, thanks to our ongoing investments in knowledge and equipment.
With an impeccable start-up track record, TEB fulfilled its role in helping ensure power grid stability. Its important role was particularly evident during the challenging conditions for the energy industry in early 2017.
As much as 99.7% of all the electricity generated by the companies making up the GEN Group came from low-carbon sustainable and renewable sources: nuclear and hydro.
Research and development, capital expenditures and investments are essential to the long-term operating stability and future growth. In 2017, EUR 88.7 million was allocated to this end. The newly built Brežice Hydroelectric Power Plant was put into operation in September 2017, TEB carried out an initial synchronization with the power grid in December, NEK completed constructionally and technologically complex modifications in response to Brežice HPP, which is located further downstream, and continued with its safety upgrade.
Due to Slovenia's reliance on imported energy (19% of electricity was imported in 2017) and a shortage of electricity in the wider region as well, the construction of a second nuclear power plant unit, JEK 2, is increasingly necessary. Reasons in favour of the construction of new generation capacities also include fast-tracked electrification, particularly in heating and transport.
We took over direct remote control of Krško HPP (in addition to the previously taken-over Boštanj HPP and Arto-Blanca HPP), which is now operated from the Control Centre in Vrbina. This allows us to further streamline production and optimize operating costs for the entire GEN Group.
We continued with the integration of the vertical chain from electricity generation to electricity consumers. The company Elektro energija was successfully incorporated into the GEN-I Group, allowing us to seize the opportunities for trading in electricity and natural gas in wholesale markets in the wider region. In the future, we will continue to focus on these markets and will also seek to expand sales to the neighbouring countries.
Strong investment activity, ownership consolidation of the GEN-I Group and profits paid out to the founder have had a significant impact on the Group's declining liquidity. Liquidity is successfully managed, but we are also actively looking for additional sources of financing.
In 2017, we successfully continued our intense efforts to implement our action plan for optimizing the operations of the company GEN and the GEN Group. Thanks to good coordination, internal optimization processes and commercial activity, we managed to minimize and overcome risks and exceed targets both in terms of revenue and profit.
Our employees, with their knowledge and dedication, have been and will continue to be the cornerstone of our operations: we numbered 988 in 2017, with more than 66% having at least higher education qualifications.
We raised interest in, and improved the perception of, topics associated with energy and the energy industry; we organized numerous educational and awareness-raising events and regularly upgraded our eSvet web portal on energy and the energy industry.