In connection with the work to restore the land and remove decommissioned excavators at the Mavropigi mine, DEI would like to inform you of the following:
The Necessity of the Energy Transition
For decades, lignite has been the backbone of the Greek power generation system, providing energy self-sufficiency and supporting the country’s industrial development. However, the invocation of lignite as a “national fuel” in the present day ignores the harsh economic and environmental reality. Energy production from lignite has now become extremely unprofitable, mainly due to the cost of carbon dioxide emission allowances. This cost is not an arbitrary estimate, but is derived from the price of emission allowances in Europe multiplied by the emission factor for Greek lignite.
Due to the quality characteristics of lignite, combined with the low load factor of lignite-fired power plants, specific emissions range from 1.15 to 1.6 metric tons of CO2 per MWhe. With the market price of CO2 hovering steadily around 80 euros per metric ton—and showing a clear upward trend toward 90 to 100 euros– the cost of emissions, just to cover CO2 allowances, stands at approximately 92€ per MWh (in the case of Ptolemaida V) and can reach up to 160€ per MWh (for older units) when the average price on the wholesale electricity market has been hovering in recent months at levels of 90 euros.
Given that the specific cost of lignite increases dramatically as the share of lignite in the energy mix decreases due to renewable energy sources, combined with other operating expenses (wages, maintenance), and taking into account the cost of trading CO2 allowances, the total cost of producing energy from lignite rises to such a level that it becomes uncompetitive. This significant financial burden would inevitably be passed on to consumers, making the continued operation of lignite-fired power plants an economically detrimental choice for the national economy. Even the state-of-the-art “Ptolemaida V” plant, which was designed using the best available technologies, contributes very little to energy production precisely because its operating costs make it uncompetitive compared to other means of production.
At the same time, the view that lignite-fired power plants are essential for system stability has been rendered obsolete by technological advances. Old thermal power plants, as “base-load plants,” are characterized by extreme technical inflexibility, as they require many hours to start up or shut down. In a modern energy mix dominated by the clean and inexpensive generation from renewable energy sources, the system needs flexible units that can respond instantly to fluctuations in demand and generation. Grid stability is no longer ensured by the continuous burning of lignite, but by a combination of flexible generation and modern energy storage technologies.
For this reason, PPC is implementing a massive green transition program, developing a diversified and resilient portfolio focused on flexible generation and energy storage. In the field of energy storage, the company is leading the way with the development of (BESS) that provide immediate system balancing, as well as through two flagship pumped-storage projects in Western Macedonia, specifically in Kardia and Notio Pedio, which function as “natural long-term energy storage facilities.” At the same time, investments in flexible natural gas-fired units ensure a stable and immediate supply of power during peak periods, enhancing system security with a significantly smaller environmental footprint.
The Truth About Excavator Retirement: Industrial Safety, Circular Economy, and Responsible Management:
PPC, under the framework of its programmatic agreement with METAVASI S.A. (which has been approved by law), is required to proceed with the dismantling and removal of permanently decommissioned and obsolete equipment in order to return the land to METAVASI S.A. These plots of land will be returned to the Greek State for further development.
The controlled demolition of the three old excavators at the closed mines in Ptolemaida is a purely operational and technical decision, based on the absolute priority that PPC places on the safety of human life and the proper management of its decommissioned industrial facilities. These excavators, after decades of operation under harsh mining conditions, had reached the end of their service life and exhibited extensive structural fatigue and corrosion of their metal components, rendering them structurally unstable.
It should be noted that the decommissioning of these specific machines, given their previous operational condition, does not affect in any way the current operational and functional capacity of the Public Power Corporation (PPC) with regard to lignite mining.
It is worth noting that this equipment, due to its age—over 50 years—and poor operational condition, does not attract the interest of potential buyers (suppliers of similar equipment, other energy companies, or even mining operations) who are interested either in smaller machines or in much newer ones that can be upgraded and modernized.
The dismantling of these metal structures (which are tall and weigh hundreds of metric tons), without first removing them, would require technical personnel to work at great heights on top of these deteriorated structures. Such a method would expose workers to a high risk of workplace accidents. In contrast, the method of controlled demolition using explosives is the internationally recommended and safest industrial practice for the removal of heavy mining equipment that has been permanently decommissioned. It allows for controlled and immediate dismantling, after which the dismantling and recycling of metals can be carried out safely for personnel and the surrounding area.
It is emphasized that, within the framework of the circular economy, all materials and the hundreds of metric tons of metal from decommissioned excavators are not needlessly destroyed, but are sent entirely for recycling. Through fully certified and controlled industrial processes, scrap metal is collected, sorted, and brought to market as a valuable secondary raw material. In this way, the environmental footprint is minimized and it is ensured that no resources go to waste, transforming yesterday’s decommissioned equipment into useful material for the needs of modern industry.
This responsible management of disused metal structures in no way constitutes a degradation or devaluation of the region’s historical legacy. On the contrary, DEI, recognizing its deep debt to the history of Western Macedonia and to the people who worked in the mines, plans to establish an Industrial Heritage Museum in the Ptolemaida area, as previously announced in April 2025 during the presentation of the €5.75 billion investment plan to transform Western Macedonia into a green energy and technology hub. As part of this project, iconic industrial buildings, cooling towers, historic chimneys, and facilities of great architectural and historical value will be preserved and restored.
In addition, specific machinery and equipment designated as movable industrial monuments will be preserved and displayed within the museum. As part of this initiative, iconic excavators—similar to those that were decommissioned—will be preserved and showcased, and they will remain in the area as permanent exhibits. In this way, the history of lignite and its industrial heritage will be showcased in a scientific, safe, and dignified manner, while also offering a tourist attraction for the entire region of Western Macedonia.
PPC’s Restoration and Green Investment Program
The phase-out of lignite does not constitute a sudden withdrawal of PPC from Western Macedonia, but rather a profound, structural, and high-value-added commitment to the environmental and economic regeneration of the region. The company is implementing a land restoration and reclamation program of unprecedented scale, making significant investments to environmentally upgrade and return to productive use the land where mining activity took place for decades.
To date, more than 80,000 stremmata of former lignite mines have been fully restored. Of these, approximately 55,000 stremmata are being gradually transferred to the Greek State through the company METAVASI S.A., so that they can be repurposed for other uses that benefit the local community. This land is being converted into productive agricultural areas, recreational forest zones, and organized areas designed to attract new, clean business activities.
At the same time, PPC is repositioning itself in Western Macedonia as the largest investor in clean and flexible energy. The completion of solar farms with a total capacity of 2.13 GW, combined with major investments in energy storage, is transforming the region into the largest and most modern center for green and flexible energy production in Southeast Europe.
With regard to power generation, PPC is ensuring the smooth and dynamic development of its existing infrastructure. In this context, the conversion of the “Ptolemaida V” unit into a clean natural gas combined-cycle plant has already begun. This new investment, which is scheduled to come online in early 2028 as an open-cycle plant and in 2029 as a combined-cycle plant, will provide flexible power, while retaining specialized technical staff in the region and ensuring the long-term operation of the plant.
Alongside the conversion of large units, PPC is developing a wide range of complementary cutting-edge technologies that establish Western Macedonia as a model energy hub. These include the construction of a modern High-Efficiency Combined Heat and Power (CHP) plant (CHP), which will ensure sustainable, uninterrupted, and cost-effective district heating for the region’s cities—a project expected to become operational by the end of 2026. Furthermore, by investing in new clean energy technologies, PPC, through the Hellenic Hydrogen consortium, is participating in the first industrial-scale hydrogen production facility powered by renewable sources in Amyntaio. It is worth noting that both the new CHP plant and the “Ptolemaida V” have been designed to the most modern specifications so that they are ready to operate partially on green hydrogen (hydrogen-ready), accelerating the energy transition. At the same time, to fortify the power grid against the challenges of the green transition, the old generators at the Kardias Power Plant will be converted into synchronous capacitors that contribute significantly to balancing the extra-high-voltage system, making the best use of existing infrastructure.
Overall, through the PPC Group’s strategic investment plan, totaling €5.75 billion, the former lignite mining areas in Western Macedonia will be transformed into a technological and green energy hub for the country and Southeast Europe.
The Digital Future of Western Macedonia: The Mega Data Center as a New Pillar of Growth
The most significant development for the future of Western Macedonia is the decision by the Public Power Corporation (PPC) to begin construction of a Mega Data Center in the region within the year. In the first phase, a 300 MW Mega Data Center will be built at the Agios Dimitrios Power Plant, a major investment on a European scale that can be completed within two years of the start of construction. The initial 300 MW project will have the potential to expand to 1,000 MW (Giga Data Center) following commitments from hyperscalers.
The benefits of operating such infrastructure for the local community and the economy of Western Macedonia are multifaceted. During the construction phase and once the project is fully operational, thousands of new jobs are expected to be created. Most importantly, these jobs involve specialized scientific and technical personnel in the fields of construction, information technology, telecommunications, and energy.
Western Macedonia was chosen for this investment because it offers unique comparative advantages. The availability of ready-to-use industrial sites with secured permits, proximity to power generation facilities, and the availability of utility networks make the region an ideal destination for this type of infrastructure.
In response to any reservations or criticism regarding water consumption for the cooling needs of data centers, official technical data demonstrate that this new operation serves as a model of rational management and protection of water resources. Specifically, the initially authorized annual water consumption for the Agios Dimitrios Thermal Power Plant amounted to 30 million cubic meters, while the corresponding authorization for all thermal power plants in the basin totaled 70 million cubic meters. In contrast, the estimated annual water consumption for the operation of the new Mega Data Center is calculated to not exceed 400,000 cubic meters per year. This amount represents just 0.6% of the water required by the old lignite-fired power plants. This impressive savings is achieved because the Data Center’s cooling system will operate as a closed, recirculating loop, with the use of additional water intended solely as a backup in extreme conditions of high ambient temperatures.
Furthermore, the Data Center’s energy supply will be covered by PPC’s new energy portfolio in the region, with an emphasis on the use of clean energy sources. The project’s architecture has been designed in such a way that this demand is met without causing any strain or congestion on the national power transmission system electricity transmission system.
The Mega Data Center can serve as a catalyst for the region’s overall economic transformation, attracting global technology giants, startups, and research centers, creating a dynamic innovation ecosystem.
Western Macedonia is no longer a single-industry region dependent on lignite and is rapidly transforming into a modern, international hub for clean and flexible energy, digital technology, and Artificial Intelligence, creating a sustainable future for generations to come.
