The SAŠA Development Agency, which operates the SAŠA Centre for Just Transition, commissioned a study entitled “Social and Economic Consequences of a Premature Closure of the Šoštanj Thermal Power Plant and the Velenje Coal Mine”. The study presents a concrete analysis of the situation and consequences of the closure of the Velenje Coal Mine and the Šoštanj Thermal Power Plant in both social and economic terms, and serves as a basis for the preparation of measures at the level of local communities, development agencies, legislators, and the economy.

It addresses the complex challenges posed by the transition from coal mining and a premature closure of the Šoštanj Thermal Power Plant and the Velenje Coal Mine. The study focuses on the economic and social consequences of this transition, particularly on employment, loss of income, and the necessary support measures to mitigate the negative impacts.

Opredeljuje neposredne in posredne ekonomske učinke zaprtja TEŠ in PV, socialne in javnofinančne vplive zapiranja obeh družb. Dotika se energetskih vidikov SAŠA regije kot energetske lokacije in opredeljuje priporočila k procesu prestrukturiranja celotne SAŠA regije.

The analysis of the situation and the consequences of restructuring and the just transition is divided into two parts: one part relates to the assessment of the consequences of closing the TEŠ and PV systems, and the other part relates to the search for new potential in the region and the support measures needed to realise it.

It is prepared according to the three defined scenarios:

• Scenario 1 (SC_1) – Adjusted production and a soft transition to closure, which assumes that coal production and, consequently, electricity and heat production will continue until at least 2033, followed by a period of several years of closure work (a moderate decline in production from 1.8 million tons in 2025 to 1 million tons in 2033 and around 0.2 million tons after 2033 to maintain TEŠ as a “cold reserve”).
• Scenario 2 (SC_2) – Minimum production and transition to closure, which assumes initial coal extraction of 1.2 million tons in 2025, followed by a decline to 1 million tons by 2033, when extraction ceases.
• Scenario 3 (SC_3) – Rapid abandonment of production and immediate transition to closure, which envisages the permanent shutdown of TEŠ as early as 2026-2027 and, accordingly, the cessation of coal mining in 2027.

The study can be found here: Social and economic aspects of restructuring the Savinjska-Šaleška region following a premature closure of the Šoštanj Thermal Power Plant and the Velenje Coal Mine

The results of the study will be presented in November at meetings of municipal councils in the SAŠA coal mining region and at other relevant events, and will soon be presented to the wider public.

“The activities of the SAŠA Centre for Just Transition are fully funded by technical assistance from the Just Transition Fund.”