Mitsotakis: End of lignite use delayed due to Ukraine war; major photovoltaic unit inaugurated in N. Greece

Greek Prime Minister Kyriakos Mitsotakis on Wednesday announced an “about-face” of a previously much-hyped program to rapidly and completely eliminate lignite use for the country’s “energy mix”, saying that “brown coal” is now a “emergency solution” due to the war in Ukraine.

Mitsotakis made the announcement during the inauguration of Hellenic Petroleum’s (Hel.Pe) new photovoltaic mega unit near the northwest city of Kozani, the hub of lignite extraction and related power generation in the country.

The unit is billed as 204MW, and is the biggest such renewable energy source unit in the wider region and one of the largest in Europe.

“Greece’s energy policy must be flexible, bearing in mind the current situation, it’s therefore, sensible to want to boost lignite-fired power production over the next two years, increasing lignite mining by 50 percent, so as to reduce dependency on natural gas…A war caused gas prices to increase tenfold for lignite to become temporarily cheaper,” he maintained.

As a result, Mitsotakis said state-run Public Power Corp.’s (PPC) new Ptolemaida V unit will continue to burn lignite through 2028, and if necessary this same fuel will be used for the Meliti and Aghios Dimitrios V power stations.

The Greek premier said the delayed “delignification” was a temporary measure, adding that all EU countries are modifying energy strategy in the face of worst-case scenarios regarding adequacy in natural gas supply.

Conversely, he said continued use of lignite does not nullify targets in reducing carbon dioxide emissions by 55 percent by 2030, or even the lofty goal of climate neutral power generation by 2050. He also said this change of short-term planning will not delay, postpone or reduce actions aimed at a “green transition” of regions in Greece dependent on lignite, such as Kozani prefecture.

Turning to the leftist main opposition, which has demanded immediate price reductions for electricity and gas rates, among others, Mitsotakis said SYRIZA’s leadership is shedding “crocodile tears” over the phasing out of lignite. The so-called “violent” transition from lignite and the availability of “cheaper lignite” is a myth, he countered.

On his part, Hel.Pe CEO Andreas Siamisis said the total benefit entailed from the new photovoltaic park is calculated at 80-100 million euros annually. Hel.Pe, one of the biggest petro-chemical concerns in SE Europe, is listed on the Athens Stock Exchange (ASE) and is partially state owned.

Highlights of the new unit include:

– Production of 350 GW hours of “clean” energy every year, equivalent to consumption by, on average, 75,000 households

– remittances for local governments, households and businesses reaching 600,000 euros per year

– a reduction in C02 emissions by 300,000 tons per year, corresponding to 110,000 hectares of forestland

– a reduction in energy costs at national level, given that the electricity sold to the grid will be fixed at 57.72 euros per MWh for the next 20 years.