Essentially, lignite production will replace a large part of production with natural gas, which in addition to being expensive, may also be unavailable in the event that Russia proceeds with a supply cut.
A four-point plan to ensure energy sufficiency at reasonable – lower than current – prices emerged from yesterday’s meeting at Megaros Maximos, led by Prime Minister Kyriakos Mitsotakis, with the Energy Crisis Management Committee of the Ministry of Environment and Energy. At the center is the increase in PPC’s lignite production to double the current level, i.e. to 10 terawatt hours.
According to information from APE – MPE, the plan for the doubling of lignite production presented by the president and CEO of PPC Giorgos Stassis includes:
1. The priority inclusion of lignite units in the daily planning to cover the load, given their technical characteristics that do not allow the continuous fluctuation of their production.
2. Ensuring a sufficient time horizon to repay the investments that will be required for the intensive exploitation of the existing lignite mines and the opening of new ones. These are investments which, according to estimates, approach, if not exceed, 150 million Euros.
3. The guarantee to cover the costs of PPC and contractors in the (unlikely with today’s data) case that the scene in the international energy market turns upside down and natural gas prices collapse.
4. The abolition of the clause which provides that PPC will have 40-50% of the lignite production until 2023 as compensation for the case of PPC’s monopoly access to lignite (Anti-Trust Case), from the period of 2007.
Essentially, lignite production will replace a large part of production with natural gas, which in addition to being expensive, may also be unavailable in the event that Russia proceeds with a supply cut.
Given that since the beginning of July a ceiling has been imposed on the compensation of power producers, each lignite megawatt hour is compensated with 208 euros, while the corresponding amount of energy from natural gas units with today’s international fuel prices is estimated to exceed 400 euros.
Thus, for the 5 additional terawatt hours that lignite is required to cover, the cost is limited to 1 billion euros, while for natural gas it would be twice as much. Not including the benefit to the current account and local economies in the lignite areas.
Competent sources pointed out to APE-MPE that mobilization with “warlike characteristics” will be needed to achieve the development and exploitation of the lignite mines in such a short period of time. He added that it is crucial that the works begin immediately, in the summer and before the weather conditions make the excavations difficult and, in any case, without bureaucratic delays for approvals inside and outside Greece.
According to government sources, all production, import, export and storage data were presented at the meeting and it was found that Greece is in a more favorable position compared to other EU countries.
RES-EMP
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