Greece has extended the operation of the lignite-fired thermal power plant Meliti by three months to ensure the stability of its energy system during the winter season.
The 330 MW Meliti plant, located in Florina in northern Greece, was originally scheduled for decommissioning by the end of 2024 as part of the national decarbonization plan. However, due to reduced water availability in reservoirs this year and the anticipated increase in winter energy demand, the electricity transmission system operator, ADMIE, decided to extend its operation until the end of March 2025.
Deputy Minister of Environment and Energy, Alexandra Sdoukou, stated that conventional power plants in Greece generated 19,050 GWh of electricity this year, with TPP Meliti contributing 106 GWh. Older lignite-fired plants are typically uncompetitive due to production costs ranging from 130 to 150 euros/MWh, mainly driven by high CO2 charges. These plants tend to operate only when daily electricity prices exceed these cost levels, except for the newer TPP Ptolemaida V unit, which has slightly lower operating costs.
Public Power Corporation (PPC) operates all lignite-fired power plants in Greece. According to the decarbonization timeline, TPP Meliti was set to close at the end of 2024, followed by the three TPP Agios Dimitrios units in Kozani in 2025, and the TPP Ptolemaida V by 2028 at the latest. Despite this, lignite has made a comeback in recent months. Its share of the daily energy mix reached 5.5% in August and has increased again in recent weeks. On days with low renewable energy production, lignite’s contribution has even exceeded 15%.
