Slovenia’s last remaining coal-fired power plant, Šoštanj, has shifted its focus in 2025 to prioritize district heating over electricity generation. Although extensive refurbishment of its 600 MW Unit 6 is nearing completion, the unit will remain offline until late September when colder weather increases heating demand.
In line with Slovenia’s plan to phase out coal by 2033, the government allocated 403 million euros last year to rescue both the Šoštanj plant and the Velenje coal mine from insolvency. These assets were brought under state ownership through Holding Slovenske Elektrarne (HSE), supporting the plant’s strategic shift toward heat sales, where profit margins remain stronger compared to the summer electricity market.
For 2025, Šoštanj aims for combined heat and electricity sales totaling 400 million euros. Unit 6 is uneconomical to operate during peak summer months due to low electricity prices and reduced heating needs, so management expects to meet revenue targets during autumn and winter.
Following HSE’s decision to cease marketing Šoštanj’s electricity, the plant established its own trading division. This initiative proved successful early in 2025, with sales of 1,045 GWh of electricity worth 138 million euros from January to April—29 million euros above budget. Maintenance on Unit 6 began on April 22 and was initially scheduled to finish by June 20, but delays pushed completion into early July. After a short commissioning period, the unit will remain idle until late September, coinciding with the heating season.
Slovenia aims to reduce emissions by 55 percent by 2033, and an accelerated closure or minimal operation of its last coal-fired power plant would significantly contribute to this goal. Experts now expect Šoštanj to either shut down entirely in the coming years or operate only as needed to meet peak heating demand.
