On November 28, 2025, representatives of the European Commission, Directorate-General for Regional and Urban Policy, were briefed in Velenje on the implementation of projects by the Municipality of Velenje and the Municipality of Šoštanj, co-financed by the Just Transition Fund, with a special focus on the project ‘Transformation of the Šalek Valley District Heating System – Phase 1’. They also observed the project’s on-site implementation.

Slovenia has 258 million euros available from the Just Transition Fund for the SAŠA region and Zasavje, of which 19.9 million euros in European funds are allocated for the first phase of the project Transformation of the District Heating System. The Šalek Valley district heating system was established in 1959 as the first in former Yugoslavia and significantly contributed to the environmental remediation of the Šalek Valley. Today, it relies solely on one production source – coal from the Šoštanj Thermal Power Plant. The distribution system is 100% owned by the municipalities of Velenje and Šoštanj. It supplies heat to 11,369 households, 129 businesses, and 715 industrial consumers, totaling 12,213.

What Phase I Includes

As part of the ‘Transformation of the District Heating System – Phase 1’ project, 7,869 meters of primary and main network will be renovated; the majority in the Municipality of Velenje, with a smaller portion in the Municipality of Šoštanj. Nine areas of multi-apartment buildings with their associated secondary network (2,431 m of network, 9 heat substations, 65 internal heat stations) will also be renovated.

The project brings:

• a reduction in CO₂ emissions of more than 6,000 tons per year;
• savings of more than 8,000 tons of coal per year;
• reduction of heat losses by more than 21,000 MWh per year

What’s Next

The transformation of the district heating system will proceed in three phases:

THE FIRST PHASE OF TRANSFORMATION, which will last until 2028, is currently underway and includes the renovation of insulation and supports on the district heating distribution system, as well as upgrades in nine areas of multi-apartment buildings.

In PHASE TWO OF THE TRANSFORMATION, coal will be completely replaced by renewable energy sources.

The THIRD PHASE OF THE TRANSFORMATION, which is taking place simultaneously, involves the energy renovation of buildings and measures to reduce the temperature regime in the district heating system.

Changing lifestyle habits is also extremely important, as every individual can significantly influence heating costs through conscious heating.

Among the guests were also representatives from the Ministry of Cohesion and Regional Development and the Ministry of the Environment, Climate and Energy. State Secretary Srečko Ðurov announced national funds for the restructuring of the region within the framework of the Act on the Development Restructuring of the SAŠA Region, which the Government of the Republic of Slovenia approved at its December session.