Greece ends lignite era: Government confirms coal phase-out by 2026 and turn to nuclear

Greece will complete the total phase-out of lignite from electricity production by the end of 2026, as confirmed by the government in Athens. The decision on decarbonization has been deemed irrevocable, despite the tense energy situation in the region caused by the conflict in the Middle East. Environment and Energy Minister Theodoros Skylakakis ruled out the possibility of reusing lignite as a strategic reserve. The last operating units of power plants fueled by this resource, including those at the Agios Dimitrios facility, will be permanently shut down within the coming months.

The process of moving away from fossil fuels will also include the most modern facilities, which were commissioned just a few years ago. The flagship Ptolemaida V unit, which began commercial operation in 2023, will undergo conversion and ultimately be fueled by natural gas. According to media reports, transforming this unit into a gas-fired one may require investments of around 300 million euros. The government rejected the concept of keeping coal infrastructure in operational readiness, opting for a permanent change in the country's energy mix.

The Greek energy sector relied for decades on domestic lignite deposits, with the state-owned enterprise Public Power Corporation (DEI) dominating the market, supplying over 85% of energy in 2009. Until recently, lignite accounted for about one-third of Greece's electricity production, but rising CO2 emission costs and EU climate policy forced an acceleration of the transition. The current strategy envisions almost completely replacing coal with renewable energy sources and natural gas by the end of this decade.

Parallel to the phasing out of coal units, Greece has officially begun efforts to join the countries utilizing nuclear energy. The authorities in Athens are considering introducing nuclear power into the national energy system, which is referred to as entering the so-called nuclear club. Minister Theodoros Skylakakis emphasized that the current direction of change is final and not subject to negotiation.

„Σβήνουν τα τελευταία φουγάρα εντός του 2026. Αδιαπραγμάτευτη η απολιγνιτοποίηση” (The last smokestacks will be extinguished within 2026. Delignitization is non-negotiable.) — Theodoros Skylakakis via Naftemporiki

2026 (rok) — deadline for the complete phase-out of lignite from the Greek energy sector

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Transformation of the Ptolemaida V Unit: Primary Fuel: Lignite (brown coal) → Natural gas; Operational Status: Coal-fired operation (since 2023) → Planned gas conversion