Emergency law on TPP Sostanj heading for public consultation

The Slovenian Ministry of Environment, Climate and Energy has sent the emergency law on coal-fired thermal power plant Sostanj for public consultation and interdepartmental coordination to the Association and Community of Municipalities of Slovenia.

?

Comments and suggestions are being collected by the ministry until 27 October, and by early November, a revised and final version of the law will be prepared. The main goal of the proposed law is to adopt urgent temporary measures to supply thermal energy to the population, public institutions, and businesses in the Saleska Valley until alternative sources for thermal energy production are established.

?

Without the measures provided by this law, 35,000 consumers in the Saleska Valley would be left without thermal energy. The emergency law, initiated by the Ministry of Environment, Climate and Energy, is just one of several laws that will enable the beginning of the transformation of the energy sector in the Saleska Valley.

?

The emergency law will also allow TPP Sostanj to continue operating, as its primary function will change from electricity production to thermal energy production. The new regime outlined in the emergency law will be in place until a new alternative heating source is secured, expected by 2030.

?

The adoption of the emergency law will ensure the continued operation of the plant and the Velenje coalmine, thereby preserving jobs. The managements of both companies are already preparing business plans for the changed circumstances, which do not foresee layoffs in the coming years. As emphasized by the Ministry, the emergency law is the first step in accelerating the transformation of the Saleska Valley energy sector, which will save the state and taxpayers more than 1.5 billion euros compared to operations until 2033. The emergency law envisions reduced operations for TPP Sostanj, which should result in savings on the purchase of emission permits. The adjusted operating regime of TPP Sostanj will also have a positive impact on the economy, with estimated savings of over 1.4 billion euros. Taking into account the estimated savings of up to 100 million euros in the final parts of the mine due to their changed dynamics, the total savings amount to over 1.5 billion euros. These savings can be invested in low-carbon energy.

?

The emergency law will allow for the rapid preparation of two laws: the Law on the Closure of the Velenje coalmine and the Law on the Restructuring of the Saleska Region, which will align with the National Strategy for Coal Phase-out and the Restructuring of Coal Regions.

?

The law is expected to be passed through an expedited procedure. The draft law provides for the payment of compensation to TPP Sostanj for carrying out the public service of thermal energy supply from the beginning of 2025 until the end of 2029, with an estimated total amount of 833 million euros from the state budget. Of that, the estimated value of the necessary compensation for thermal energy supply operations amounts to 680 million euros, which will be almost entirely covered by increased revenue from the dividends of energy companies, and the remaining part will cover the loan repayment for the investment.

?

The current proposal also stipulates that these funds will be collected in a dedicated budget item to ensure transparency, and the collected profits could be used over multiple years, as they would be reserved only for a specific purpose. The Ministry also emphasizes that in this stage of preparation of the emergency law, this is a proposal that may be amended before the final version is completed.

Access our Energy News service on Balkan Energy Power

Portal: www.portal.balkanenergy.com

Balkan Energy AG is a leading provider of short and long term Power price forecasts, analytics, energy news and info for Hungary and SEE region. In addition to our well known services, we have recently implemented an extensive "10-year price forecast for HUPX and SEE markets (2025-2035)"