The EBRD has approved a € 200 million loan to Slovenia's state-owned thermal power plant, Termoelektrarna Šoštanj, to co-finance its modernisation programme.
Located in the city of Šoštanj in the north-east of Slovenia, the Šoštanj thermal power plant provides electricity and thermal energy for industrial use and district heating, supplying a large part of the Šaleška Valley region. The facility produces 33% of Slovenia's electricity output and is considered crucial to the country's energy security.
The European Bank for Reconstruction and development (EBRD) loan will support the construction of a 600 MW capacity state-of-the-art coal-fired unit that will replace five existing low efficiency and high carbon intensity units.
An EBRD spokesperson said, "The project will utilise high energy-efficient technology and will contribute to a significant carbon emissions reduction of around -1,2 million tonnes of CO2 annually. This carbon reduction represents approximately 8% of Slovenia's total greenhouse gas emissions."
The new unit is designed to be carbon capture storage (CCS) ready and represents the EBRD's first project featuring the ability to apply CCS technology.
The modernisation will be co-financed by the European Investment Bank (EIB).