INVESTMENT

New growth transition model

new-growth-transition-model

Two years after the prime minister announced the closure of all lignite-fired plants in Greece, the Development and Investments Ministry has put the draft law for the fair development transition up for consultation.

The bill paves the way for a radical change in the growth model in both Western Macedonia, northern Greece, and in Megalopoli in the Peloponnese that for more than half a century have been associated with the production of electricity for Public Power Corporation using lignite, or brown coal, as a fuel.

This draft law allows PPC to continue its mining activity in the areas it will transfer to the state for an unspecified period. That provision aside, which leaves a loophole for the operation of the lignite-burning units beyond 2023, the bill follows the pattern of the laws introduced ahead of the 2004 Olympics in Athens. It therefore offers incentives that will turn the two areas into major attractions for investor interest on privileged terms.

The underlying aim is to give Western Macedonia and Megalopoli an even faster growth rate than the rest of the country

That is supported by the provision for the shift in the regions’ growth model monitoring from the Energy Ministry to that of Development and Investments, according to the bill.