EXECUTIVE SUMMARY
Slovenia has secured European Commission approval for a €59 million State aid scheme aimed at adding at least 370 MWh of standalone battery energy storage capacity. Aligned with the EU's Clean Industrial Deal and CISAF framework, the funding will boost renewable energy integration and enhance overall grid stability.
News Synopsis
The European Commission, the executive institution of the European Union, has approved a €59 million (~ $67.9 million) State aid scheme for Slovenia to support the deployment of standalone battery energy storage systems (BESS). The scheme aims to strengthen renewable energy integration and improve electricity system flexibility. The measure was cleared under the Clean Industrial Deal State Aid Framework (CISAF) which was adopted by the Commission in June 2025 to accelerate investments supporting Europe's transition to a net-zero economy.
Under the approved scheme, Slovenia will provide direct investment grants for the construction of new standalone battery energy storage projects. The programme is expected to support the installation of at least 370 MWh of new storage capacity across the country. The grants will depend on the investment expenses for each project which will receive funding prior to 31 December 2030.
The program aims to facilitate the incorporation of renewable energy into Slovenia's power system through the use of batteries that would allow balancing the power production of renewables. The added storage is expected to help in increasing the effectiveness and efficiency of the electricity network in the country.
Funding for the scheme will be drawn from the Just Transition Fund and the EU Emissions Trading System (ETS) Modernisation Fund, reflecting the European Union's approach of using dedicated climate and transition financing to support clean energy infrastructure.
Following its assessment, the European Commission concluded that the Slovenian measure complies with the conditions established under the CISAF. It said the scheme is “necessary, appropriate and proportionate” to support economic activities linked to the Clean Industrial Deal. The measure also complies with EU State aid rules under Article 107(3)(c) of the Treaty on the Functioning of the European Union.
The CISAF enables EU Member States to introduce targeted aid measures supporting renewable energy deployment, energy storage, industrial decarbonisation, clean technology manufacturing and private investment in strategic clean energy projects. The framework remains available until 31 December 2030 and forms part of the European Commission's wider policy to enhance industrial competitiveness while supporting the transition towards climate neutrality.
The approval adds Slovenia to the list of EU Member States introducing public funding schemes for standalone battery energy storage systems, supporting higher renewable energy integration and improving electricity system resilience as battery storage deployment expands across Europe.