Gender workshop - UNECE–Global Water Partnership ADA June 23, 2021
Renewables

People in lignite areas in Greece will be able to buy bonds for solar projects

People lignite areas Greece buy bonds solar projects

Photo: Chris Chesneau from Pixabay

Published

June 4, 2021

Country

Comments

0

Share

Published:

June 4, 2021

Country:

Comments:

0

Share

State-owned Public Power Corp. decided to offer residents of the two coal-dependent regions in Greece to invest in its energy transition projects. It will reportedly secure yields of up to 7% per year for the people in the areas where lignite-fired thermal power plants would be replaced mostly with solar panels.

Thousands of residents of the Western Macedonia region in the north part of Greece and Megalopolis in the Peloponnese peninsula will get the opportunity to become PPC’s bondholders, the company said. According to an unconfirmed report published by EnergyPress, the state-owned operator of lignite mines and thermal power plants may enable attractive yields of 6% to 7% per year, like other large developers of photovoltaics.

The company said it intends to finance 5% of the 2.5 GW in solar power projects through debt securities that would be offered exclusively to the population of the two areas. The bonds for the two regions will be issued separately, PPC said and revealed 500 MW is planned for Megalopolis. Coal use in Greece may end by 2025.

Some Balkan countries are taking steps to replace coal with other sources. In Serbia, there is still controversy over the future of the fossil fuel in its energy mix.

Residents of coal regions to suffer amid coal phaseout

The utility has tasked its subsidiary PPC Renewables with the installation of the solar power plants that are intended to replace the existing facilities. The firm is also active in the development and operation of projects in other segments of the renewable energy sector.

The European Union aspires to become carbon neutral by 2050, which means coal should be almost entirely abandoned

PPC said it aims to share the future income with residents of the municipalities who for decades lived directly or indirectly from lignite. People in coal-reliant areas across the continent are facing job loss as the European Union aspires to become carbon neutral by 2050, which implies phasing out almost all of its coal use.

Poor people can’t afford to invest, though

However, the company’s move failed to take into account the people who will suffer the most – those that wouldn’t be able to afford to buy bonds for EUR 1,000 apiece that earlier news reports indicated would be issued. It leads to the conclusion that offering residents to become partners in profits could lead to more inequality.

The company earlier said local residents would be able to enjoy returns of as much as 10% per year as partners in the solar endeavors.

Comments (0)

Be the first one to comment on this article.

Enter Your Comment

Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

Electricity prices for companies are rising - how consumers can ease burden

20 to 50 percent increase of electricity price for companies in Serbia – how businesses can ease this burden?

18 June 2021 - Serbia has been delaying the energy transition for years, but the impact of the energy transition in the EU has spilled over to the country through the electricity prices for businesses.

Energy Community launches tender for study on flexibility needs of power systems in region

Energy Community launches tender for study on flexibility needs of power systems in region

17 June 2021 - The Secretariat is seeking consultants to comprehensively assess the flexibility needs of the power systems of the contracting parties.

North Macedonia ecotax for oil slash VAT electricity 5

North Macedonia to roll out ecotax for oil, slash VAT for electricity to 5%

16 June 2021 - An ecotax of 5.7 cents will be introduced in North Macedonia for oil and the value-added tax on electricity will be cut to 5% from 18% for one year.

Luka Petrovic ERS intends to be regional seller of balance energy

Luka Petrović: ERS intends to be regional seller of balance energy

11 June 2021 - Power utility Elektroprivreda Republike Srpske plans to build hydropower plants and PV facilities, while wind farms will not be in its focus.