The Public Power Corporation (DEI) has issued a formal statement underscoring the necessity of Greece’s energy transition, rejecting the notion of lignite as a ‘national fuel’ in today’s economic and environmental reality. The statement comes amid ongoing land restoration efforts and the decommissioning of obsolete excavators at the Mavropigi mine in Western Macedonia.
Lignite Power Generation Is No Longer Economically Viable
DEI emphasizes that lignite-based electricity generation has become financially unsustainable—primarily due to soaring EU carbon allowance prices. With the European carbon market price hovering around €80 per ton—and trending upward toward €90–€100—the cost of CO₂ allowances alone reaches approximately €92 per MWh for newer units like Ptolemaida V, and up to €160 per MWh for older plants. This exceeds recent wholesale electricity market prices, which have averaged around €90 per MWh.
This financial pressure is compounded by declining lignite utilization rates, rising operational costs—including labor and maintenance—as well as the increasing share of renewable energy sources in Greece’s power mix. As a result, the total cost of lignite-fired generation has surged to levels where it is no longer competitive.
A Comprehensive Green Transition for Western Macedonia
DEI outlines its broader vision for the region: a strategic shift toward a new, sustainable production model anchored in renewable energy, battery storage, digital infrastructure, and high-tech investment. Central to this plan are large-scale initiatives such as the Mega Data Center in Western Macedonia—designed to position the region as a modern hub for green energy, technology, and innovation.
The lignite phase-out is being accompanied by extensive land rehabilitation, new energy infrastructure, and safety-first practices—including the systematic retirement of aging mining equipment at closed mines, with human life as the absolute priority.
For decades, lignite underpinned Greece’s electricity system, supporting energy independence and industrial growth. But DEI stresses that clinging to outdated assumptions ignores both economic realities and climate imperatives. The transition, it argues, is not just inevitable—it is an opportunity to build a more resilient, innovative, and environmentally responsible future for Western Macedonia and the country as a whole.