Lignite-fired power generation reestablishing itself as costliest

The cost of lignite-fired electricity generation has been estimated at 219.34 euros per MWh for April by RAE, the Regulatory Authority for Energy, a level that makes it the costliest form of power production for a second month in a row, well over the generation cost level calculated by the authority for combined-cycle, natural gas-fueled power stations, estimated at 153.04 euros per MWh for the month, a difference of 66.3 euros per MWh.

The wholesale electricity market appears set, this month, to further distance itself from the adversity of energy crisis conditions that have made gas-fueled power generation the costliest form in Greece and other parts of Europe as a result of soaring natural gas prices in international markets.

Last month, lignite-fired power production once again found itself at the top of the list as the costliest form of electricity generation, overtaking gas-fueled generation, for the first time since the beginning of the energy crisis.

The cost of lignite-fired power production exceeded that of gas-fueled production by 48.36 euros per MWh last month, above an initial estimate of 30.54 euros per MWh that grew as a result of an energy ministry revision replacing a fixed 10 euro per MWh surcharge on natural gas used for electricity generation with a 5 percent fee of the TTF level.