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In this paper, Slovenia's current energy policy is analyzed, the potential of renewable energy sources (RES) is evaluated and examined, and new options for the development of an alternative energy policy and the transition of the Slovenian energy industry into a sustainable energy industry are proposed and cross compared. On the basis of current and future electricity consumption, the evaluated RES potentials, and calculated investment prices, options for alternative investment projects and the alternative development of a more sustainable energy policy in Slovenia are identified. These possibilities and the current energy policy are analyzed and cross-compared from the economic and environmental viewpoint, with special emphasis on investment costs. At the end of the paper, the implementation costs of the proposed alternative energy policy investments are evaluated, calculated, and cross-compared, and the advantages and disadvantages of the alternative energy policy are evaluated. The proposed alternatives have significant benefits in comparison to the existing energy strategy, which focuses on a new lignite thermal power plant. Reconstruction of the existing thermal power plant in Sˇosˇtanj is a considerably cheaper alternative and a sound transitory solution for Slovenia. Investment in a multiple fuel power plant is also a cheaper and more efficient alternative, which, in addition, enables the usage of local biomass. Another considerably cheaper and more efficient alternative with lower emissions is a gas-steam power plant. The most promising alternative is found to be electricity production from local RES, resulting in a significant reduction of energy related emissions and domestic sources usage. The estimated investment costs for the last alternative are comparable to the costs for the implementation of Slovenia's current energy policy. [ABSTRACT FROM AUTHOR]