The EBRD is helping to improve the security of energy supply in Slovenia with a €200 million loan to the Slovenian state-owned thermal power plant, Termoelektrarna Šoštanj, signed today, to co-finance its modernisation programme.
A fully-owned subsidiary of Holding Slovenske Elektrarne d.o.o., Šoštanj Thermal Power Plant is the biggest producer and wholesaler of electricity in Slovenia. It accounts for one third of the country’s electricity production, playing a vital role in security of supply.
The EBRD loan will be used to finance the construction of a new state-of-the-art coal-fired unit with a capacity of 600 megawatts that will replace five existing low efficiency and high carbon intensity units.
The project will utilise highly energy-efficient technology and will contribute to significant carbon emissions reduction, of around 1.2 million tonnes CO2 annually in the long run. This carbon reduction represents around eight per cent of Slovenia’s total green-house gas emissions.
”This important project will transform the Šoštanj Thermal Power Plant into a state-of-the-art facility, helping the company to improve considerably the efficiency of its operations by cutting coal consumption and carbon emissions. The investment will also enable the power plant to comply with EU environment requirements”, said Nandita Parshad, EBRD Director for Power and Energy.
Director of Termoelektrarna Šoštanj MSc Simon Tot said: “I am really pleased that today we signed this extremely important contract for Šoštanj Thermal Power Plant and for Republic of Slovenia. I believe that this is an additional step towards reaching the realization of this nationally important project”.
General Director of Holding Slovenske Elektrarne Msc Matjaž Janežič said: “We have been waiting for this moment quite a while and I believe that this is the beginning of successful cooperation”.
Structured under the Bank’s A/B loan scheme, €100 million will be retained on the EBRD’s account, with the rest of the amount is syndicated to commercial banks. The project will be co-financed by the European Investment Bank, which is providing €550 million.