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PPC: Why lignite is no longer a viable option

Φωτ. EUROKINISSI

The company noted that while lignite had been the backbone of Greece’s power generation system for decades, the cost of lignite-fired electricity has now risen to levels that render it uncompetitive

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Public Power Corporation PPC S.A. presented its position, outlining the next phase for Western Macedonia, following restoration works and the removal of decommissioned excavators at the Mavropigi lignite mine amid reactions triggered by these developments.

In a statement, PPC said that lignite phase-out “does not constitute a forced withdrawal of the company from Western Macedonia, but a profound, structural and high value-added commitment to the environmental and economic regeneration of the region.” The utility described a new production model focused on clean energy, digital infrastructure and new investments.

The company noted that while lignite had been the backbone of Greece’s power generation system for decades, the cost of lignite-fired electricity has now risen to levels that render it uncompetitive, primarily due to the cost of carbon emission allowances under the EU emissions trading system.

“This significant financial burden would inevitably be passed on to consumers, making the continued operation of lignite units an economically detrimental option for the national economy,” the statement said, adding that even the upgraded “Ptolemaida V” unit operates at minimal levels because its production costs remain uncompetitive compared with other generation sources.

Regarding the removal of old excavators, PPC said it is obliged to proceed with dismantling and removal of permanently decommissioned and obsolete equipment in order to return the land to Metavasi S.A..

The company said the equipment is more than 50 years old, heavily worn and no longer suitable for use, citing structural fatigue and corrosion that rendered the machines unsafe.

PPC stressed that the removal has no impact on its current operational capacity for lignite extraction.

It added that controlled demolition was chosen for safety reasons adding that the metal materials will be recycled.

The company also referred to its land restoration and green investment programme, under which more than 80,000 stremmas of former lignite mining areas have been fully rehabilitated. Of this, around 55,000 stremmas are being progressively transferred to the Greek state through Metavasi S.A. for alternative uses benefiting local communities.

PPC highlighted a 5.75-billion-euro investment programme aimed at transforming Western Macedonia into a green energy and technology hub.

Under the strategic plan, former lignite sites in the region are to be converted into a technology and clean energy hub for Greece and Southeast Europe.

Finally, the company described as the most significant development for the region’s future its decision to begin construction of a mega data centre in Western Macedonia within the year.

It said the project is expected to generate thousands of jobs during construction and full operation, particularly for specialised scientific and technical personnel in construction, information technology, telecommunications and energy.

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