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Slovenia proposes emergency law to support coal-fired thermal power plant and energy transition

The Slovenian Ministry of Environment, Climate and Energy has initiated public consultation on an emergency law concerning the coal-fired thermal power plant (TPP) in Šoštanj. The law aims to implement urgent measures to supply thermal energy to residents, public institutions, and businesses in the Savinjska Valley until alternative energy sources are established.

Comments on the proposal are being collected until October 27, with a revised version expected by early November. Without this law, approximately 35,000 consumers in the region would face a loss of thermal energy supply. This legislation is part of a broader strategy to transform the energy sector in the Savinjska Valley.

The emergency law will permit TPP Šoštanj to shift its primary function from electricity generation to thermal energy production, maintaining operations until new heating sources are available, anticipated by 2030. This transition is crucial for preserving jobs at both the plant and the nearby Velenje coal mine, with management already developing business plans that do not foresee layoffs in the near future.

The Ministry states that this law is the first step towards accelerating the energy sector’s transformation, potentially saving the state and taxpayers over 1.5 billion euros compared to existing operations through 2033. The law will also reduce TPP Šoštanj’s operational output, resulting in savings on emission permits and further benefiting the economy.

Additionally, the emergency legislation will facilitate the rapid drafting of two other laws: one concerning the closure of the Velenje coal mine and another focused on the restructuring of the Savinjska region, aligning with the National Strategy for Coal Phase-out.

The proposed law is set to undergo expedited approval, with provisions for compensating TPP Šoštanj for its public service of thermal energy supply from 2025 to 2029, amounting to approximately 833 million euros from the state budget. These funds will be sourced mainly from increased dividends from energy companies, ensuring transparency through a dedicated budget item.

The Ministry emphasizes that the current proposal is open to amendments before finalization.

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