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Slovenia: Government proposes €324 million bailout for Sostanj coal plant and Velenje mine

The Slovenian Government has proposed a financial injection of 324 million euros to support the struggling coal-fired power plant Sostanj, operated by HSE, to ensure its continued operation. In addition, the Government plans to allocate 79 million euros to repay a critical investment loan that is essential for the plant’s functioning.

The proposed measures are designed to protect jobs at the thermal power plant and Velenje coal mine, ensuring that 35,000 residents, along with public institutions and businesses, continue to receive district heating services.

Velenje is Slovenia’s only lignite mine, supplying coal primarily to the Sostanj plant. In January 2022, the Government adopted a strategic plan to phase out coal in electricity production by 2033. This plan includes the closure of the Velenje mine and the implementation of a social and economic transformation for the Zasavje and Savinjska-Saleska coal-mining regions.

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