The Public Power Corporation (PPC) is moving forward with one of the most strategic and transformative energy transitions in its modern history. Ptolemaida 5, Greece’s newest and most advanced lignite-fired power unit, is preparing to shift to natural gas, marking a key step in the country’s decarbonization plan and the energy restructuring of Western Macedonia.
PPC has submitted a request to the Regulatory Authority for Waste, Energy and Water (RAAEY) to amend the unit’s production license, paving the way for a €300 million investment — one of the largest in Greece’s current energy portfolio.
Natural gas transition: an economic and operational “one-way street”
According to PPC Chairman and CEO Georgios Stassis, the transition of Ptolemaida 5 to natural gas is a “one-way path,” both economically and operationally.The high cost of CO₂ emission rights makes lignite unviable, while the European energy market increasingly demands flexible, efficient plants that can operate complementarily with Renewable Energy Sources (RES).
Project details and timeline
PPC has already completed a round of consultations with international technology suppliers and is in the final stage of selecting a contractor, with the agreement expected in early 2026. Construction will begin in the first half of 2026, with completion targeted by the end of 2027.
The new facility will operate as a 350 MW open-cycle gas turbine, designed to be hydrogen-ready, with an option to upgrade to a 500 MW combined-cycle plant, reaching a total capacity of up to 1,000 MW. During the construction phase, around 300 new jobs are expected to be created in the region.
To supply the unit, a natural gas pipeline of less than 10 kilometers will be built, a project managed by DESFA, which is expected to be completed by the third quarter of 2027.
Extension of lignite operations at Agios Dimitrios
At the same time, the Ministry of Environment and Energy has approved an extension of operations for certain lignite units at the Agios Dimitrios Power Station until May 15, 2026, ensuring district heating for the Municipality of Kozani during the 2025–2026 winter season.
This extension will remain in effect until the new High-Efficiency Combined Heat and Power (CHP) plant under construction at the former Kardia power station becomes operational.During this interim period, the Agios Dimitrios units will continue to participate in the Day-Ahead Energy Market, with their additional operating costs covered by the Energy Transition Fund, keeping district heating costs stable for local households.
Kozani’s new CHP unit: Clean, efficient, and hydrogen-ready
The ongoing CHP project, worth €80 million, includes 17 internal combustion engines capable of operating on natural gas and hydrogen blends, achieving an efficiency rate above 75% and significant energy savings.Once completed in 2026, the plant will fully meet Kozani’s district heating needs, marking a major step toward a cleaner, more efficient energy model for Western Macedonia and Greece as a whole.
Source: pagenews.gr