Sostanj power station

From Global Energy Monitor

Sostanj power station is an operating power station of at least 1029-megawatts (MW) in Šoštanj, Slovenia with multiple units, some of which are not currently operating. It is also known as Šoštanj power station.

Location

Table 1: Project-level location details

Plant name Location Coordinates (WGS 84)
Sostanj power station Šoštanj, Šoštanj, Slovenia 46.3723, 15.0534 (exact)[1]

The map below shows the exact location of the power station.

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Unit-level coordinates (WGS 84):

  • PT 51, PT 52, PT 53, Unit 1, Unit 2, Unit 3, Unit 4, Unit 5, Unit 6: 46.3723, 15.0534

Project Details

Table 2: Unit-level details

Unit name Status Fuel(s) Capacity (MW) Technology CHP Start year Retired year
PT 51 Operating[2] fossil gas: natural gas[2] 42[2][3] gas turbine[2][3] yes[3] 2008[4]
PT 52 Operating[2][3] fossil gas: natural gas[2] 42[2][3] gas turbine[2][3] yes[3] 2008[4]
PT 53 Announced[5] fossil gas: natural gas[6] 0 unknown yes[5] 2030 (planned)[5]
Unit 1 Retired coal: lignite 30 subcritical 1956 2010
Unit 2 Retired coal: lignite 30 subcritical 1956 2008
Unit 3 Retired coal: lignite 75 subcritical 1960 2014
Unit 4 Retired coal: lignite 275 subcritical 1972 2018
Unit 5 Operating coal: lignite 345 subcritical 1977 2033 (planned)[7]
Unit 6 Operating coal: lignite 600 ultra-supercritical 2015 2033 (planned)[7]

CHP is an abbreviation for Combined Heat and Power. It is a technology that produces electricity and thermal energy at high efficiencies. Coal units track this information in the Captive Use section when known.

Table 3: Unit-level ownership and operator details

Unit name Owner Parent
PT 51 Termoelektrarna Šoštanj doo [100%][8] Holding Slovenske elektrarne doo [100.0%]
PT 52 Termoelektrarna Šoštanj doo [100%][8] Holding Slovenske elektrarne doo [100.0%]
PT 53 Termoelektrarna Šoštanj doo [100%][8] Holding Slovenske elektrarne doo [100.0%]
Unit 1 Termoelektrarna Šoštanj doo [100%][8] Holding Slovenske elektrarne doo [100.0%]
Unit 2 Termoelektrarna Šoštanj doo [100%][8] Holding Slovenske elektrarne doo [100.0%]
Unit 3 Termoelektrarna Šoštanj doo [100%][8] Holding Slovenske elektrarne doo [100.0%]
Unit 4 Termoelektrarna Šoštanj doo [100%][8] Holding Slovenske elektrarne doo [100.0%]
Unit 5 Termoelektrarna Šoštanj doo [100%][8] Holding Slovenske elektrarne doo [100.0%]
Unit 6 Termoelektrarna Šoštanj doo [100%][8] Holding Slovenske elektrarne doo [100.0%]

Project-level coal details

  • Coal source(s): Velenje lignite coal mine

Financing

  • Source of financing: Unit 6 - US$971.25 million in debt from European Bank for Reconstruction and Development, Helaba, Societe Generale, Bankia, UniCredit, and Kommunalkredit Austria;[9] US$667,401,143 in debt from the European Investment Bank.[10]

Background

The power station is owned by Termoelektrarna Sostanj.

Sostanj is the largest thermal power plant in Slovenia and produces electricity and heat using coal from the Velenje mine.

The power station comprises the following operating and retired generating units, which are referred to as:[11]

  • Unit 1 and Unit 2, both 25 MW, closed in 2010 and 2008 respectively;
  • Unit 3, a 75 MW commissioned in 1960, closed in 2014[12];
  • Unit 4, a 275 MW commissioned in 1972[12], and closed in July 2018[13];
  • Unit 5, a 345 MW unit commissioned in 1977; it was reopened in August 2018 after almost three years of ecological rehabilitation works[14];
  • Unit 6, a 600 MW unit commissioned in 2015[12]
  • PT 51, a 42 megawatt gas-fired unit commissioned in 2008 and nominally scheduled to run until 2027; and
  • PT 52, a 42 megawatt gas-fired unit commissioned in 2008 and nominally scheduled to run until 2027.


In their 2020 'Integrated National Energy and Climate Plan of the Republic of Slovenia' submitted to the European Commission, Slovenia's government confirmed the closure of Unit 5 by 2030 and its replacement with a gas unit.[15][16] At that time it appeared that Unit 6 would be much later, source referred to 2038 or 2042[17], another source mentioned 2054.[14]

In January 2022, the Government of Slovenia adopted the National Strategy for a Coal Exit, defining 2033 as the year by which the coal phase-out would be completed.[18]

In an October 2022 statement, the UN Special Rapporteur on Human Rights and the Environment stated: "the coal-fired power plant that provides approximately one-third of [Slovenia]’s electricity is not scheduled to be closed until 2033".[19] As of September 2023, however, there were reportedly discussions of retiring the remaining coal units by 2029.[20]

According to reporting from May 2024, Slovenia's Prime Minister had said that financial losses were likely to force the early closure of the remaining coal units at Sostanj. An ongoing analysis by Holding Slovenske Elektrarne (HSE), the state-owned utility, reportedly included options for closing or significantly reducing coal generation at the plant within the next three years.[21] However, in June 2024, Slovenia’s latest draft of its 2030 energy and climate plan proposed an emissions reduction target of 55% by 2033, in line with a 2033 retirement date at Sostanj power station.[22]

As of September 2024, HSE's Sostanj operations were projected to face bankruptcy in January 2025. The coal-fired power station and nearby Velenje Coal Mine would reportedly generate 150 to 200 million euros of losses in the next year.[23]

Coal supply

The power station consumes "between 3.5 and 4.2 million tonnes" of lignite a year, approximately 90% of all the coal produced in the country. Coal for the power station is sourced from the nearby Velenje mine.

Gas Units

Two gas units PT 51 and PT 52 have been in operation since 2008.

In their 2020 'Integrated National Energy and Climate Plan of the Republic of Slovenia' submitted to the European Commission, Slovenia's government confirmed the closure of coal unit 5 by 2030 and its replacement with gas units.[15][16]

Unit 6

A new 600 megawatt (MW) coal-fired power station (Unit 6) was proposed to "replace obsolete facilities" at the existing plant.[24] The project would replace the power plant’s existing units 3-4 and possibly unit 5.[25]

Unit 6 was synchronized in 2014,[26] and planned for operation in April 2015. Unit 6 was planned to replace Unit 3. The 275MW Unit 4 was planned to be decommissioned in December 2015.[12]

Cost and Funding for Unit 6

Since initial project proposal, costs have risen from EUR 700-900 million to EUR 1.2 billion. Permits were also need to be purchased by Slovenia as part of the EU Emissions Trading Scheme.[25] The project received permissions from the Slovenian authorities.[25]

In January 2011, a financing agreement for the project was closed. US$971.25 million in loans was provided by European Bank for Reconstruction and Development, Helaba, Societe Generale, Bankia, UniCredit, and Kommunalkredit Austria.[9] The project also received a US$667,401,143 loan from the European Investment Bank.[10]

Corruption allegations

In July 2012, the European Anti-Fraud Office (OLAF) decided to start an official investigation into the Sostanj plant due to charges of corruption (bribery and money laundering) and conflicts of interests in the granting of the contract to the company Alstom.[25]

In October 2014, Slovenian police charged 10 people associated with the project of defrauding electricity consumers of an estimated €284 million (US$333 million).[27]

In May 2018, leaked details of a Slovenian police investigation into Alstom’s €1.4 billion (US$1.6 billion) 600 MW expansion of the Sostanj plant found that it was €500 million (US$586 million) more expensive than equivalent plants the company built elsewhere (the expansion was originally estimated to cost €700 million, or US$820 million). A Slovenian TV station alleges that documents obtained as part of the investigation indicate Alstom allocated €3 million (US$3.5 million) for kickbacks associated with the project.[27]

In May 2020, after several years of uncertainty over the status of the investigation, Slovene prosecutors filed charges including money laundering against 12 people and two companies. Unofficial information reported by the media suggests that the two companies are Slovenia’s Sol Intercontinental and France’s Alstom Power.[28]

In October 2022, the Celje District Court ordered General Electric to pay a €23 million (US$22.7 million) fine over the alleged bribery scheme associated with the construction of the power station's Unit 6.[29]

Opposition

On January 17, 2012, representatives from the Focus Association for Sustainable Development, Environmental Legal Service, and CEE Bankwatch Network filed a complaint regarding the Sostanj Thermal Power Plant in Slovenia. Addressed to Anoush Begoyan of the European Bank for Reconstruction and Development, the complaint emphasized how the power plant threatened to perpetuate CO2 emissions and contribute to dangerous global climate change.[30]

In April 2014, the CEE Bankwatch Network released an article on how the Sostanj power plant will significantly increase EU’s global carbon emissions. They also questioned the economic viability of the project, in conjunction with Slovene ministers and other experts, along with corruption issues in the production of the power plant.[31]

Carbon emissions

In 2012, it was estimated that operating Unit 6 will result in emissions of 3.4 mega tonnes of CO2 per year, which is equivalent to almost all of Slovenia’s allowable emissions in 2050.[25]

Groups campaigning against the proposed expansion

Articles and Resources

References

  1. https://web.archive.org/web/20230103182122/https://datasets.wri.org/dataset/globalpowerplantdatabase. Archived from the original on 03 January 2023. {{cite web}}: Check date values in: |archive-date= (help); Missing or empty |title= (help)
  2. 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 https://web.archive.org/web/20221003055040/https://www.te-sostanj.si/en/production/gas-turbines/. Archived from the original on 03 October 2022. {{cite web}}: Check date values in: |archive-date= (help); Missing or empty |title= (help)
  3. 3.0 3.1 3.2 3.3 3.4 3.5 3.6 (PDF) https://web.archive.org/web/20210714141212/https://assets.siemens-energy.com/siemens/assets/api/uuid:ad61b223-5b64-40d2-88f9-c014653a5bdc/venture-08-en-6-13.pdf. Archived from the original (PDF) on 14 July 2021. {{cite web}}: Missing or empty |title= (help)
  4. 4.0 4.1 https://web.archive.org/web/20221022083705/https://data.open-power-system-data.org/conventional_power_plants/2018-12-20. Archived from the original on 22 October 2022. {{cite web}}: Missing or empty |title= (help)
  5. 5.0 5.1 5.2 https://web.archive.org/web/20221003012057/https://balkangreenenergynews.com/thermal-power-plant-sostanj-takes-active-role-in-slovenias-energy-transition/. Archived from the original on 03 October 2022. {{cite web}}: Check date values in: |archive-date= (help); Missing or empty |title= (help)
  6. (PDF) https://web.archive.org/web/20230101131649/https://energy.ec.europa.eu/system/files/2022-01/SI%20CA%202020%20en.pdf. Archived from the original (PDF) on 01 January 2023. {{cite web}}: Check date values in: |archive-date= (help); Missing or empty |title= (help)
  7. 7.0 7.1 https://web.archive.org/web/20240625001547/https://balkangreenenergynews.com/slovenia-confirms-coal-phaseout-date-in-updated-necp/. Archived from the original on 25 June 2024. {{cite web}}: Missing or empty |title= (help)
  8. 8.0 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 https://web.archive.org/web/20221003042112/https://www.te-sostanj.si/en/. Archived from the original on 03 October 2022. {{cite web}}: Check date values in: |archive-date= (help); Missing or empty |title= (help)
  9. 9.0 9.1 "Preview of Termoelektrarna Šoštanj Lignite Plant | Transaction | IJGlobal". ijglobal.com. Retrieved 2020-12-14.
  10. 10.0 10.1 "No excuses for the EIB to finance Sostanj". Bankwatch. Retrieved 2020-12-14.
  11. Termoelektrarna Sostanj, "TEŠ – an important pillar of Slovene energy", Termoelektrarna Sostanj website, accessed April 2016 and June 2023 via the Wayback Machine
  12. 12.0 12.1 12.2 12.3 "Giant unit will lower Slovenia electricity prices from mid-April – traders," ICIS, 17 February 2015
  13. "Block 4 ceases operating after 46 years", HSE website, July 6, 2018.
  14. 14.0 14.1 “Ex-ante economic and social impact assessment of regions' decarbonisation,” DeCarb Activity 1.1
  15. 15.0 15.1 Ministry of Infrastructure, Feb 27, 2020
  16. 16.0 16.1 "Thermal power plant Šoštanj takes active role in Slovenia's energy transition". balkangreenenergynews.com. May 2020.{{cite web}}: CS1 maint: url-status (link)
  17. Slovenia proposes to phaseout coal by 2033, Enerdata, Mar 24, 2021
  18. "Slovenia, Czech Republic to exit coal by 2033". balkangreenenergynews.com. January 2022.{{cite web}}: CS1 maint: url-status (link)
  19. "Slovenia: More ambitious environmental action key to protect human rights, says UN expert," Office of the United Nations High Commissioner for Human Rights, October 6, 2022.
  20. Sostanjsko Termoelektrarno bo Verjetno Treba Zapre, Montel Energetika, September 28, 2023
  21. "Slovenia’s coal plant TEŠ could close already within three years," Balkan Green Energy News, May 6, 2024
  22. "Slovenia confirms coal phaseout date in updated NECP," Balkan Green Energy News, June 11, 2024
  23. "Tešu z januarjem 2025 grozi stečaj. Država naj bi ga finančno reševala z interventno zakonodajo.," MMC RTV Slovenija, September 23, 2024
  24. "Coal-Fired Plants Financed by International Public Investment Institutions Since 1994", Appendix to Foreclosing the Future: Coal, Climate and International Public Finance: Investment in coal-fired power plants hinders the fight against global warming, Environmental Defense, April 2009.
  25. 25.0 25.1 25.2 25.3 25.4 "Sostanj lignite thermal power plant unit 6, Slovenia," Bankwatch, accessed Oct. 2012.
  26. "Alstom brings Unit 6 of Šoštanj power plant to full load," Alstom, 03/11/2014
  27. 27.0 27.1 "Corruption Investigation Finds Overpayment of €500m for TEŠ6 Power," STA, May 30, 2018
  28. "Slovene prosecutors file charges over coal plant corruption," CEE Bankwatch Network, May 25, 2020
  29. "Court upholds EUR 23m fine on General Electric," STA, October 3, 2022
  30. “Complaint regarding the Sostanj Thermal Power Plant project”, Bankwatch et al., January 17, 2012.
  31. “Western Balkans: ‘cheap’ lignite plants built now will cost heavily later”, Bankwatch, April 2014.

Additional data

To access additional data, including interactive maps of the power stations, downloadable datasets, and summary data, please visit the Global Coal Plant Tracker and the Global Oil and Gas Plant Tracker on the Global Energy Monitor website.