Lignite phase-out is the gradual withdrawal from the use of lignite for energy production purposes and the transition to cleaner solutions.
The National Energy and Climate Plan (NECP) provides for a full lignite phase-out by 2028, in line with the EU’s objective for climate neutrality by 2050.
Our objective is to cease operations at our lignite-fired plants by 2026. To achieve this, we gradually stop lignite mining, while continuing to honour our environmental commitments.
Read the Government gazette and the revised Government Gazette ratifying the NECP (in Greek only).
The ambitious objective of the NECP is the Just Development Transition of the Western Macedonia and Peloponnese areas to the post-lignite era.
To this end, the Chairman and CEO of PPC SA sits on the Steering Committee tasked with developing and implementing the national Just Transition Development Plan (NJTDP). In this manner, he helps coordinate and execute the plan for the Western Macedonia Region and the Municipality of Megalopolis.
We support current efforts to promote new sustainable financial activities in the lignite areas, while at the same time work on upskilling the human resources. To accomplish our decarbonisation goals, we are moving forward with large development projects totalling more than 5 billion euro.
The projects have strong social impact, as they will create thousands of jobs during the design, implementation and construction phases, but also during the operation phase.
We are developing photovoltaic (PV) plants with a total power of 2,700 MW, in areas spanning 65 square km. At the same time, we are planning the conversion on the lignite-powered Ptolemaida Steam Power Plant V into a combined cycle power plant (CCPP) with a gas turbine that uses natural gas to generate energy with lower emissions.
We are building a new Waste-to-Energy (W2E) thermal processing plant where we will be burning waste energy raw materials and converting the generated heat into usable energy. This helps us reduce consumption of oil and natural gas.
Aiming at mass energy storage, we are building natural batteries with pumped storage hydropower (PSH) technology. Pairs of connected reservoirs are created at depleted lignite mines, in areas where there is a height difference of the water levels. Reversible hydroelectric machines pump water from the lower reservoir to the upper one. When the energy demand increases, the water from the upper reservoir is released to the lower one flowing through the hydroelectric machine and producing electricity.
Until the end of 2024 we had restored approximately 79 sq km of land, including soil improvement and preparation for the installation of PV panels.
In the restored areas, we have developed:
• 32 sq km of tree-planted areas
• 7 sq km of arable areas
• 10 sq km available for post-lignite use, as we have completed the improvement and preparation works and are waiting for the designation of new land uses.
Moreover, we are developing lake ecosystems that today span more than 2.5 sq km, in 2 regions:
• Western Macedonia – Lakes Amyntaion and Kleidion, at the corresponding lignite mines
• Peloponnese – Lakes Kyparissia and Marathousa at the Megalopolis Lignite Centre
Once the mining activities are finished, we will gradually fill the empty pits of the depleted mines with water. This way, we will create 4 new lakes: Mavropigi, Kardia, Notio Pedio and Choremi. Once the land restoration works are completed, the lake ecosystems will take up approximately 17 sq km, according to the relevant estimates.
Among others, the restored areas now include:
• Arable land – 105 sq km with 4 species of aromatic plants in an area near the Amyntaion Lake and 30 sq km with grains in an area near the Ptolemaida mines.
• Model orange grove – 60 sq km at the Ptolemaida mines, with 9 species and 44 fruit tree varieties, as well as 8 grape varieties.
• Beekeeping activities – Owing to the planting of acacias for the restoration of the mine slopes.
• Recreational facilities – 2 motor racing circuits in Ptolemaida and Megalopolis, and 1 model recreational park in Ptolemaida (Coformit Project).
Moreover, we are designing the development of one of the largest mega data centres in Europe at the Agios Dimitrios lignite steam power plant in Kozani.
Over the next years, we expect to have restored a total of more than 84 sq km in the lignite mine areas.
We have undertaken and carried out tenders for designs, with the aim of preparing the dossiers of the Special Urban Plans (SUPs) in the Lignite Phase-Out Zones.
The SUPs include:
• Main Urban and Spatial Plans
• Strategic Environmental Impact Study (SEIS)
• Preliminary Geological Suitability Survey
At the Ministry of the Environment and Energy website you can find (in Greek):
• SEIS for the Ptolemaida core decarbonisation zone
• SEIS for the Amyntaion-Kleidion-Achlada core decarbonisation zone
• SEIS for the Megalopolis core decarbonisation zone
The dossiers of the Special Urban Plans have received all the necessary pre-approvals and a positive opinion by the Central Council for Urban Planning and Disputes (KESYPOTHA). We expect their final ratification via presidential decree.
For decades, we are implementing a land restoration programme for the areas that have been degraded by our mining activities. At the same time, we systematically monitor the qualitative and quantitative results of our land restoration efforts, informing the relevant Authorities and Agencies, according to the requirements of the Environmental Terms Approval Decisions for the mine operation.
The post-lignite development areas we will transfer to the Greek State are governed by Programme Agreement 4, as ratified by Law 4956/2022 (in Greek).
According to the Agreement, we undertake to:
• Restore the lands that were used to produce electricity from lignite.
• Implement new land uses.
• Transfer their ownership to the Greek State using funds from the Resilience and Recovery Fund.
The transfer to the Greek State takes place in 3 stages:
1. Hive-off of the Core Lignite Phase-Out Zone Post-Lignite Development Sector (97 sq km) and transfer of ownership to METALIGNITIKI SA, a subsidiary of PPC SA.
2. Gradual transfer of shares to METAVASI SA, owned by the Greek State, for a price equal to the sector value.
3. Acquisition of METALIGNITIKI SA by METAVASI SA.
By the end of 2024, approximately 54.8 sq km had been transferred, namely in the areas of the Amyntaion, Kleidion, Ptolemaida and Megalopolis mines. Of those:
• 37.5 sq km are restored areas.
• 17.3 sq km are undisturbed areas.
Approximately 42 sq km remain to be transferred until the end of 2026.