Renewables

Slovenia earmarks EUR 282.2 million for just transition, renewables in coal region

just transition coal region sostanj

Photo: TEŠ

Published

December 18, 2025

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Published:

December 18, 2025

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The Government of Slovenia has adopted a bill on the restructuring of the Savinja and Šalek coal region, aimed at mitigating the impact of the coal phaseout and ensuring a just transition. The plan envisages investments of up to EUR 282.2 million in the 2026–2035 period, including renewable energy projects in the district heating system and at the Šoštanj thermal power plant site.

The planned just transition measures complement those in the bill on the gradual closure of the Velenje coal mine – Premogovnik Velenje, adopted at the end of November. They are designed to stimulate economic growth, create new jobs, facilitate the transition to sustainable energy sources, preserve cultural heritage, and improve the quality of life of residents of the Savinja and Šalek (SAŠA) coal region.

The financing will be provided from the European Union’s cohesion funds, Slovenia’s state budget, and the budgets of municipalities in the coal region.

One of the key projects is the renovation of the Šalek Valley district heating system, which involves modernizing the distribution network and switching to renewable energy and new heat sources. The renovation of the district heating system, which will be funded with a total of EUR 50 million, is targeted for completion by 2030 at the latest.

Velenje plans to build a solar plant and a heat pump system to produce thermal energy

As part of this plan, the Urban Municipality of Velenje intends to build a solar power plant and a heat pump system to generate heat from lake water. The facilities are planned in the rehabilitated area of ​​the Velenje coal mine.

With a projected annual output of around 45,500 MWh, the system could cover the needs for hot sanitary water from May to September and for thermal energy in the transitional months of the heating season.

Other potential solutions being considered are a biomass plant, solar collectors, geothermal sources, and non-hazardous waste incineration, according to a report by Naš Stik.

The Šoštanj redevelopment project involves power and heat production and storage

The redevelopment of Slovenia’s only coal-fired power plant, Termoelektrarna Šoštanj (TEŠ), aims to enable the transition from fossil fuels to renewable energy sources and includes projects for the production and storage of electricity and heat. The funding allocated for this purpose is EUR 15 million.

TEŠ is located on the shore of the Družmirje (Družmir) artificial lake, where Slovenian state-owned energy utility Holding Slovenske elektrarne (HSE) plans to develop a floating solar power plant. The capacity could reach 120 MW.

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