Greece’s first municipal energy community to be launched in its coal capital Kozani

The city of Kozani in northern Greece, home of the country’s dwindling lignite industry, is seeking a contractor for seven photovoltaic systems of 7 MW overall. The municipality said the power plants would supply its buildings, public lighting, pumps and drilling rigs as part of the country’s first energy community led by a local authority. Under a virtual net metering scheme, the facilities are also intended for combating energy poverty.

Energy communities are present all over Greece, but private capital is dominant – instead of individuals, local institutions and small firms. The concept can be especially beneficial for local authorities in coal regions, which are undergoing rapid decarbonization and turning toward cutting-edge technologies.

Job losses and a lack of skills jeopardize communities in such areas. The Municipality of Kozani, the capital of Greece’s coal land, the region of Western Macedonia, is one of them. It was among the first in the country that launched initiatives for energy communities led by local authorities.

Deadline for applications is January 12

Kozani has opened a tender for the selection of a contractor that would build seven photovoltaic plants. The municipal solar power units would operate under a virtual net metering scheme.

It would enable supplying municipal buildings, street lighting, schools, sports facilities, pumps and drilling rigs, but also the means to fight against energy poverty. The municipality received funding via the European Union for the project, under a just development and transition program.

The city claimed that it would be the country’s first energy community of its kind. Prospective candidates can apply by January 12, and the selection is scheduled for January 16. The budget amounts to EUR 6.25 million including value-added tax, and the local authority participates with 20%.

Kozani already invested EUR 650,000 in its energy community

The project is placing the Municipality of Kozani in the lead in energy self-sufficiency and autonomy in the country, Mayor Yiannis Kokkaliaris said.

He revealed that the local authority managed to secure grid connection terms in time not to lose the EUR 650,000 that it spent so far for the purpose.

The Kozani area is already hosting some of Greece’s largest photovoltaic plants and projects. It is envisaged for one of six waste incinerators in the country. Government-controlled Public Power Corp. (PPC Group) plans to build pumped storage hydropower plants on its depleted open pit coal mines in the region.

Of note, Greece recently lost EUR 100 million from the European Union’s Recovery and Resilience Facility (RRF) for the Apollo program. It was aimed for self-consumption for vulnerable households through forming an energy community.