EU lignite talks lead to new framework for CATs in Greece

An issue concerning support for lignite-fired power plants operating in EU member states is expected to return to the fore within the next few days as European Parliament will vote on the matter this month.

The matter is of concern to electricity production in Greece as it is linked to a permanent CAT mechanism plan to be delivered by local authorities to the European Commission in March.

Last month, the energy ministers of EU member states were locked in fierce negotiations that included many disagreements before compromising to reach an agreement containing overall terms for lignite-fired power plant support. It promises to offer support to existing facilities until 2030.

The main stumbling block of these difficult negotiations concerned the inclusion of lignite-fired power plants in CAT mechanisms. An initial plan forwarded by the European Commission proposed the inclusion of lignite-fired power plants whose CO2 emmissions were maintained at levels of no more than 550g per kWh. Member states eventually agreed to exclude new electricity production units from such limits until 2025.