After more than four decades of operation, the Agios Dimitrios power plant officially ceased operations on 15 May, marking the end of one of southeastern Europe’s largest lignite-fired power facilities. With an installed capacity of 1,595 MW, the plant played a crucial role in Greece’s coal-based electricity generation system for many years and stood among the largest thermal power stations in the Balkans.
The closure represents a significant milestone in Greece’s broader decarbonization strategy and for the country’s Public Power Corporation (PPC). Throughout its operational history, the facility was essential for supporting industrial growth and ensuring national electricity supply, while thousands of workers employed at the plant and nearby lignite mines depended on its activity.
At the same time, the environmental impact of the plant was substantial. Since the introduction of the EU emissions trading system in 2005, the facility is estimated to have emitted nearly 200 million tons of carbon dioxide. In 2012 alone, annual emissions reached around 14.7 million tons of CO2, placing the power plant among Europe’s largest polluters during that period.
Despite environmental concerns, the shutdown also creates serious economic and social challenges for the lignite-producing region of Western Macedonia. The transition away from coal has not yet fully compensated for the loss of jobs and economic activity, while uncertainty remains regarding future financial support after the current EU Just Transition funding period expires.
The city of Kozani is also facing additional difficulties, as its district heating network relied on the Agios Dimitrios plant for more than 30 years. Local authorities are now expected to depend on oil-based heating solutions during the upcoming winter season, while longer-term alternatives linked to natural gas infrastructure are still unfinished.
The closure has additionally reignited debate about the future structure of Greece’s electricity market. Energy experts and environmental organizations are questioning whether the lost lignite production will mainly be replaced by renewable energy sources or whether fossil gas will take on a larger role in electricity generation, potentially influencing both climate objectives and electricity prices in the years ahead.
