January 23 (SeeNews) - Slovenia's Sostanj coal-fired power plant TES plans to increase the price of thermal energy for end-customers in Velenje by 108% as of February 1 to compensate for increased cost of coal imports, the Velenje municipality said.
The planned increase in the price was communicated by TES to Velenje municipality in a letter on January 18, the local government said in a statement last week.
The municipality cannot agree that the inhabitants and the economy of Velenje become hostages to high prices caused by the import of coal for the operation of TES, Velenje mayor Peter Dermol said in the statement.
In an open letter to prime minister Robert Golob, Dermol also asked the government to relocate the unloading of imported coal from its current location in Velenje municipality, as it negatively affects the quality of life of local residents.
Earlier this month, Slovenian lignite mine operator Premogovnik Velenje said it is exploring opportunities for additional coal imports to guarantee the smooth operation of TES in 2023.
Last year, Premogovnik Velenje concluded two contracts, worth 42.5 million euro ($46.3 million) and 7.9 million euro respectively, for the import of Indonesian coal with Swiss company Petraco to compensate for the reduced amount of domestically produced coal caused by geomechanical problems and coal phase-out measures introduced by the Slovenian government.
In January 2022, Slovenia's government adopted a strategic plan to stop using coal for electricity production by 2033. The strategy envisages the closure of the Velenje coal mine, as well as a comprehensive social and economic restructuring of the Zasavje and Savinjska-Saleska coal mining regions.
Under the strategy, the 884 MW TES and the 123 MW Ljubljana coal-fired heat and power station which delivers 90% of the remotely generated heat in Slovenia's capital, will be closed by 2033. However, as the facilities of TES are designed to burn lignite coal with the characteristics of the coal produced at the Velenje mine, parent Holding Slovenske Elektrarne (HSE) is unable to entirely replace local output with imports.
($ = 0.91755 euro)