Just Transition of Slovenia 2026
Across Europe, an increasing number of coal regions are moving away from their dependence on fossil fuels and transitioning to new development models. One of the most illustrative examples is Slovenia, where the transition has already moved beyond strategic planning and entered the phase of practical implementation.
At the centre of these changes is the SAŠA region (Savinjsko-Šaleška Valley), which for decades relied on coal mining and the operation of the Šoštanj thermal power plant.
In December 2025, the Government of Slovenia adopted a decision on the comprehensive restructuring of the region, providing for up to €282.2 million in investment over the period 2026–2035. This forms part of a broader national policy to phase out coal and transition to a climate-neutral economy.
What the transition involves
The approved programme covers several interconnected areas: energy, economic development, social policy, and infrastructure.
Key measures include:
- the modernisation of district heating systems in the Šalek Valley, with a gradual transition to renewable energy sources (estimated at tens of millions of euros, approximately €50 million)
- a new role for the Šoštanj thermal power plant, focusing on modern energy functions and the integration of energy storage solutions
- the development of renewable energy projects, including solar installations and heat pump systems that can utilise water from flooded mines
In particular, a project in the city of Velenje is currently under development, combining solar generation with heat pumps, with an expected annual output of approximately 45,500 MWh. The overall logic behind these measures is not to dismantle existing infrastructure, but to repurpose and integrate it into a new energy system.
How the transition is financed
The transition is financed through a combination of sources:
- European Union funding, including the Just Transition Fund
- the national budget of Slovenia
- local municipal budgets
This approach ensures alignment between national and regional priorities and supports the long-term sustainability of the transition.
Moving to implementation: developments in 2026
As of 2026, Slovenia has moved from the planning phase to the practical implementation of the transition.
One of the key instruments is the launch of competitive funding programmes for businesses, aimed at supporting investment, economic diversification, and job creation.
In particular, approximately €68.7 million has been allocated to support the economic restructuring of coal regions, with a significant share directed to the SAŠA region. These funds are provided as co-financing for business investment projects.
At the same time, concrete energy solutions are being rolled out, including the expansion of solar generation, the deployment of energy storage systems, and the reuse of former industrial sites for new projects.
As a result, the transition is gradually shifting from concepts to tangible investments and on-the-ground implementation.
Institutional framework for the transition
A critical component of the process is the development of an institutional framework to manage the transition.
Specialised structures and programmes are operating in the region to:
- support businesses and investors
- facilitate project preparation and implementation
- provide training and workforce reskilling
- coordinate the use of EU funding
According to international organisations, including the OECD, Slovenia has already entered the implementation phase, where the primary focus is on delivering measurable results through project execution.
Coal phase-out
The transition is being implemented within the framework of a national strategy that provides for a complete phase-out of coal by 2033.
A clear timeline:
- ensures predictability for investors
- enables communities to plan their economic development
- accelerates the pace of transformation
Relevance for Ukraine
Slovenia’s experience highlights several key principles of a just transition:
- long-term planning supported by clear financial commitments
- the integration of energy, economic, and social policies
- the use of existing infrastructure as a development asset
- the introduction of financial instruments to support businesses
- the establishment of institutions to coordinate the transition
The key takeaway is that a just transition is not a set of isolated projects, but a systemic regional development policy.
Slovenia has moved beyond the stage of strategy development and entered the phase of practical implementation.
Today, the transformation of the SAŠA region represents a comprehensive process that combines investment, competitive funding programmes, infrastructure projects, and institutional governance mechanisms.