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Each year, the modern society produces more waste. Domestic habits and economic standard place Slovenia next to the other progressive countries. Statistically speaking, every person produces around a kilogram of waste per day. Taking into account the average heating value of waste, this equals around a quarter of a liter of heating oil or almost one hundred liters per year. This energy potential is presently deposited in landfills across the country, causing shortage of the deposition space, emission of green-house gases and production of polluted leachate. Using this semi-renewable national energy source represents a great challenge of the present time. Waste-toenergy means utilization of the domestic energy source and greater import independence that can be attained by district energy systems. By 2020, Slovenia has committed itself to utilize 25% of the total consumed energy from the renewable sources. The energy of waste can contribute to fulfilling this commitment. The paper presents a modern waste-management system in the Celje region and utilization of an energy rich waste fraction after mechanical and biological treatment. The Celje combined heat and power plant is in operation for five years. By utilizing combustible waste fractions it produces power (electricity) and hot water. The latter is distributed to the citizens of Celje over a district heating system. [ABSTRACT FROM AUTHOR]