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Policy & Regulation

Coal subsidies may slow Greek energy transition

Greece is trying to pressure Brussels into approving its national capacity market, which would keep coal in the country’s electricity mix for years to come Greece is trying to pressure Brussels into approving its national capacity market, which would keep coal in the country’s electricity mix for years to come.
By Andreas Walstad 4 July 2019 Europe & Russia / Policy & Regulation 0 34368
Revithoussa LNG terminal in Greece. (European Commission)

The key issue: The Greek parliament recently approved a subsidy scheme for fossil-fuel power plants, but the European Commission will need to approve it immediately if auctions are to take place later this year.

Interfax analysis: A planned Greek subsidy scheme for power plants could delay the country’s transition from lignite to gas and renewables, even if gas-fired plants will also be able to bid for contracts.

Higher prices for carbon allowances under the EU’s Emissions Trading System (ETS), combined with record-low gas...