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Covenant of Mayors - Europe

Transforming Šaleška Valley’s District Heating for a Sustainable Future

Velenje, Slovenia

The Šaleška Valley is undergoing a critical transformation of its district heating system to shift from coal dependency to renewable energy sources, aiming for a 100% sustainable heat supply.
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heating and cooling
Mitigation
Mission City
Green Leaf

The Slovenian city of Velenje, located in the green and beautiful Šaleška Valley, is one of the 112 Mission Cities aiming to reach climate neutrality by 2030. The heating sector in this small city, which is still fully dependent on fossil fuels, is one of the main challenges to tackle in the journey to a net-zero future.

From Outdated to Efficient: Transforming the Šaleška Valley's District Heating System

District heating is a key component of global efforts to reduce carbon emissions, and as such, it has strong regulatory backing at both the European and national levels (e.g Slovenian energy, environment and climate legislation). However, the current system in the Šaleška Valley is outdated, with high thermal losses (26.4% over the past five years) and a relatively low heat density. The system needs a technological upgrade to meet modern standards and become more efficient.

The transformation of the district heating system (DHS) in the Šaleška Valley aims to create a sustainable, future-proof solution using renewable energy sources (RES). This transformation is based on a phased approach, with the goal of covering 100% of heat demand, with the possibility of replacing any individual generation source with another one.

To achieve this, the current energy infrastructure will need significant upgrades, including work on the distribution network, substations, and the connections to end-users. A key measure will also be to reduce the heat demand from end-users, which will make the system more efficient, helping to keep heat prices affordable. This will also play a role in restoring people's trust in the district heating system over the long term.

For this transformation to succeed, effective policies will be adopted at various levels of government. Engaging the local community is also crucial, as their support will be needed for investments in energy-efficient buildings and a sustainable heating system.

A detailed and strategic plan for a coordinated approach

The long-term development and transformation of the Šaleška Valley has been outlined in several strategic documents, including the "Regional Development Program of the Savinjsko-Šaleška Region" for 2021-2027. This plan aligns with national regulations and focuses on key development challenges, regional strengths, and strategic goals. It also highlights the need for energy renovations and infrastructure improvements, particularly in district heating networks. The operational part contains programs to promote development in the region in line with the financial and timeframe requirements, and defines a system for monitoring, evaluating and organizing the implementation of the regional development program.

Slovenia's national energy renovation strategy for 2050 (DSEPS 2050) emphasises the importance of municipalities developing large-scale energy renovation programs. This includes integrating renewable energy into district heating networks to ensure Slovenia stays on pace with other EU members. 

Replacing coal for a healthier, more sustainable and just future

The Šaleška Valley's current district heating system is supplied by the Šoštanj Power Plant (TEŠ), which relies on lignite from the nearby Velenje Coalmine. However, Slovenia has a national strategy to phase out coal by 2033, so the DHS will need to transition to cleaner energy sources in the coming years. Accelerated planning and decision making are needed to ensure that the new design of DHS will be based on alternative and cleaner generation sources of thermal energy. The transformation plan of DHS of the Šaleška Valley for 2022-2030 outlines a shift towards a coal-independent, affordable, and environmentally friendly district heating system. This will ensure a reliable and sustainable heat supply for the 35,000 residents of Velenje and Šoštanj municipalities, as well as the local industrial sector. This transition is a key part of moving towards a carbon-free future and ensuring a just transition for all.

Main challenges to detoxify heat and next steps:

  1. Securing financial resources for the implementation of phase II;
  2. Encouraging citizens and spreading awareness of the importance of energy renovations and the reduction of thermal energy consumption;
  3. Finding suitable sources of renewable energy, according to financial capabilities, environmental needs and space constraints.

Where they are in the heat strategy:


 



 

Velenje's Heat Detox

Key Heat Figures:

  • Emissions related to heating: 80 000 tCO2/year
  • Percentage of renewables in heating system: 0 % (current fuel mix fuel mix is 80 % coal and 20 % natural gas) 
    • Target for Renewable Energy Sources share: 100% by 2033

Covenant Figures:

  • Signatory to the Covenant of Mayors since 2010
  • Emission reduction ambitions: Overall CO2 emission reduction target: 
    GHG emissions reductions by 2030: 55%
    GHG emissions reductions by 2050: 100 %

City Awards:

  • Mission City
  • EU Green Leaf Award 2024
     

Financing your Heat Strategy

Budget: Estimated 150 million EUR for Phase I and Phase II

Sources of funding:

  • Phase I: Just Transition Fund, national share and own resources.
  • Phase II: not defined
     
Beneiciary of ELENA

The Project Development Services (PDS) financed by ELENA will provide support to develop Energy Efficiency investments in public and residential buildings, and renewable energy (RE) such as PV on buildings and new RE-based heat plants for the DHC