RAE favors coal-fired plants
In a turnabout from past policy, Greece’s Regulatory Authority for Energy (RAE) is reportedly ready to give the green light for the use of coal in planned new, privately operated power stations. According to sources, the RAE has recommended to the Development Ministry the granting of an operating license to construction company Terna for a coal-fired, 420-megawatt plant at Mantoudi, Evia, as well as for construction of another 600 MW coal-fired plant by Endesa Hellas at Aspra Spitia, Viotia. According to the same sources, the RAE is also expected to make a recommendation in favor of Edison’s investment in a 600 MW coal-fired plant near the port-industrial complex of Astakos, western Greece. The independent energy regulator is also studying an application by the Public Power Corporation (PPC) for another plant in Aliveri, Evia, also coal-fired with a capacity of 700-800 MW. The total capacity of the above four planned stations comes to 2,400 MW, about equal to that of existing lignite-fired power stations which were fined 1 million euros by the Environment and Public Works Ministry on Monday for exceeding greenhouse gas emission limits. In 2001, the RAE had forbidden the use of solid fuels in power production, favoring private investment plans based on the use of natural gas. The high prices of oil, which have also contributed to a rise in gas prices, have considerably reduced the competitiveness of natural gas in power production worldwide. However, the choice of the appropriate fuel mix for power production in Greece is not a straightforward affair. For one thing, high dependence on coal would mean higher production costs if gas prices fall, while account must also be taken of the commitments undertaken by the country for a reduction in gas emissions in the framework of the Kyoto Protocol. The RAE uses as a reference point the high pollution emitted from PPC’s existing lignite-fired power stations which use old technology. It is estimated that the use of coal-fired plants of modern technology would considerably reduce the emission of pollutants. But critics of the use of solid fuels say that the comparison should be made with natural gas and renewable energy sources. So far, the requirement that the environmentally friendliest form of fuel should be used in power production has not deterred private investors from pursuing the license-issuing process. Their concerns are mostly focused on the reactions of local communities, which are expected and may involve the filing of lawsuits with the Council of State, the country’s highest administrative court.