Slovenia's GEN-I outlines US expansion strategy - EXCLUSIVE

CE Report presents an exclusive interview with Rok Istenič, Head of Corporate Communications at GEN-I, a leading European energy company based in Slovenia.

What specific segments of the U.S. energy market will GEN-I Trading North America LLC focus on in its initial phase of operations (e.g. electricity, natural gas, renewables, energy storage)?

The U.S. energy market is among the most diversified and sophisticated energy ecosystems globally, built around markets organized into ISOs - Independent System Operator /RTOs - Regional Transmission Organization. ISOs/RTOs operate on a nodal pricing system with both day-ahead and real-time trading (comparable to our Intraday trading), creating high liquidity and a robust environment for virtual transactions, spreads and congestion-related instruments. In parallel, U.S. power futures and options are actively traded on major exchanges, further expanding the complexity of participation in the U.S. energy landscape.

Our approach in the U.S. is based on strategic portfolio diversification, where in the initial phase, GEN-I Trading North America LLC will focus on virtuals, congestion products and financial energy markets, with core activity in electricity and a complementary exposure to natural gas. In terms of markets and traded instruments, GEN-I is focusing on the most liquid and for us structurally attractive U.S. electricity markets: PJM, ERCOT, and MISO - with phased expansion into additional ISOs as operational readiness and risk capacity increase.

How does GEN-I assess the main regulatory and market differences between the U.S. and European energy trading environments?

There are ten geographically defined electricity markets in the US, seven of which are deregulated or open and allow free trading.

GEN-I sees major regulatory and market differences between the U.S. and European energy trading environments, the most fundamental being that the U.S. electricity market is built on a nodal pricing system, while Europe operates largely on zonal pricing. Each U.S. node represents a point of energy injection or withdrawal and has its own price, determined by local supply-demand conditions and transmission congestion. By contrast, Europe typically has one price per bidding zone (often one per country).

The U.S. market is becoming increasingly dynamic due to the rapid integration of renewables, accelerated digitalization, and strong growth in electricity demand driven by data centers, AI-related computing loads, and broader electrification trends. From a trading perspective, these developments are making the U.S. market fundamentally different, more complex, and shaped with specific trading opportunities that naturally differ from those in Europe.

The market supports a broad range of trading strategies, including buy-sell transactions, virtual positions, spreads, and congestion-related instruments.

What strategic advantages does the company expect to gain from its presence in Houston, and how will this strengthen its global trading portfolio?

The North American market is among the most dynamic in the world. It combines established energy companies with highly developed financial markets and rapidly expanding sector of renewables, energy storage, and digital infrastructure. This combination creates a highly liquid, technologically advanced, and competitive market where speed, analytics, and the ability to manage complex risks are paramount. This is the environment where our advanced trading model and digital solutions can thrive, allowing us to scale, innovate, and create lasting value.
By operating directly from the world’s energy capital, we gain proximity to the center of market activity, with direct access to key service providers, market participants, and a broader trading community. Houston also provides access to a deep and experienced talent pool, which is critical for building a competitive and sustainable trading platform. For us, this is not just about opening an office; it is about becoming an active local player, not a distant participant. Our approach is built on disciplined execution, rapid learning, and responsible market participation, enabling us to grow from a newcomer into a trusted counterparty in the U.S. financial energy market.

How significant is the North American expansion in terms of projected trading volumes and revenue contribution over the next three to five years?

The North American expansion represents a meaningful addition to GEN-I’s global portfolio operating in a system characterized by higher demand growth, deeper liquidity, and greater price dispersion. These factors create scalable trading opportunities, which are already reflected in the initial positioning of our U.S. portfolio.

As our presence in the U.S. grows, we expect trading activity and revenue to increase organically, driven by market dynamics, disciplined scaling of our capabilities, and incremental operational efficiency.

Our goal is not rapid expansion at any cost, but sustainable, performance-driven growth that strengthens GEN-I Group’s global footprint while ensuring disciplined risk management.

How does GEN-I plan to balance its global growth strategy with its commitment to reliable and competitive energy supply in Slovenia and the wider regional market?

Our long-term strategy is to position GEN-I as a global energy group with a diversified international and global footprint. Regardless of geographical expansion, we will remain committed to providing a reliable supply and competitive commercial terms for our customers and clients in Slovenia and the wider market. International growth enhances our resilience, market intelligence, and portfolio diversification, which directly supports our domestic supply stability/reliability. By operating in larger and more advanced markets, we expand our expertise, enhance our analytical capabilities and increase the resilience of our energy portfolio, all of which support our ability to secure favorable prices and supply for households and businesses in Slovenia and the region. In this sense, our international expansion is not a separate story from our domestic responsibility; on the contrary, it is one of the factors that allows GEN-I to remain a reliable, competitive and forward-looking energy partner.

Photo: LinkedIn

This interview was prepared by Julian Müller