The government will roll out a four-point plan for the energy crisis

ATHENS – A four-point plan to ensure adequate energy supply at affordable prices, which revolves around doubling the production of electricity from lignite coal, was decided at a meeting of the Energy Crisis Management Committee chaired by Prime Minister Kyriakos Mitsotakis, according to sources from the Athens-Macedonian News Agency (ANA).

At Thursday’s meeting, Public Power Corporation (PPC) CEO Georgios Stassis said coal-fired power generation would increase to 10 TWh as follows:

1. Priority integration of lignite-fired power plants in the daily electricity production schedule, as it is not technically desirable to constantly vary their production levels.

2. Provide enough time to amortize the investments that will be necessary for the intensive exploitation of existing coal mines and the opening of new ones, estimated at around 150 million euros.

3. Ensures that PPC and contractor costs will be covered in the currently unlikely scenario of a natural gas price collapse.

4. Abolition of a clause which obliges the PPC to sell 40 to 50% of its electricity production from lignite coal at lower prices to independent producers until 2023, as part of an agreement reached in an antitrust case concerning its lignite monopoly in 2007.

Indeed, coal-fired power generation will replace that using more expensive and possibly completely unavailable natural gas, with an estimated cost of about half that of natural gas at current prices. A major hurdle will be the increase in coal mine production in such a short time.

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