NEWS

Greece plans $5.9 billion investment to fund transition away from coal power by 2028

Greece will spend 5 billion euros ($5.9 billion) to offset the impact of ditching coal in power generation by 2028 and cutting carbon emissions in line with European Union climate targets by 2050, a government official said on Wednesday. Energy Minister Kostis Hatzidakis told reporters the total will include state money, funds from the European Union and loans from the European Investment Bank

The funds will be spent on infrastructure projects, subsidies to new businesses, and training, to help western Macedonia and Megalopoli in Southern Peloponnese switch to green energy, agriculture and tourism. Those regions are the main suppliers of the cheap and abundant lignite resources Greece has relied on for power generation for more than half a century.

Greece’s conservative government, which took over last year, has pledged to switch off 80% of state utility Public Power Corp’s coal capacity by 2023 to reduce its carbon footprint.

Hatzidakis also said that some 16 private investments in renewables and other activities are in the pipeline and are expected to help create more than 8,000 jobs in western Macedonia and Megalopoli. Greece will also consider tax incentives to new businesses in the affected areas to support local communities, he said.

Investments include a plan by PPC to build solar parks in Western Macedonia with generating capacity of 2.3 gigawatts, and a 130 million euro solar power project by Hellenic Petroleum in the same region.

PPC has already shut two coal units with a total capacity of 550 megawatts in Macedonia and will switch off the remaining 10 by 2023. Another plant it is building in Ptolemaida, northern Greece, will operate using coal until 2028, after which it will switch to a different fuel.

https://ieefa.org/greece-plans-5-9-billion-investment-to-fund-transition-away-from-coal-power-by-2028/

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