August 12, 2025
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Greek coal region of Megalopolis opens new chapter after lignite

Last year, for the first time in decades, no smoke rose out of coal plants in the Peloponnese peninsula. The last two units had 500 MW together. Megalopolis is one of the two coal regions in Greece, along with Western Macedonia in the country’s north.

According to Public Power Corporation (PPC or DEI) the units Megalopolis-3 and Megalopolis-4 have now been permanently retired. Under the government-controlled utility’s plan to phase out coal completely next year, all such power plants stopped operating by now, with the exception of Ptolemaida 5, of 660 MW, which entered into operation last year. To maintain the security of supply, two units are kept in reserve, also in Western Macedonia in northern Greece.

PPC has produced a study for the reconstruction of the Megalopolis thermal power station, intending to accommodate other activities. Similar works are already underway in the local lignite mine.

New energy investments underway

The group’s investment plan involves various renewable energy and storage projects in Megalopolis to support the area’s energy transition. It is building two photovoltaic farms of 125 MW each, as part of a 490 MW cluster in the area.

The plan includes a 181 MW pumped storage hydropower station in the former lignite mine.

Based on the government’s Just Transition Development Program, Megalopolis will also host a battery factory, by Enercells, as well as two data centers, by Eunice and Kiefer, of 5 MW each. The investments have been approved by the Ministry of Economy and Finance, to seek funding from the European Union’s Just Transition Fund (JTF).

PPC expressed the belief that data centers are important for coal regions. Earlier this year, the group’s CEO George Stassis said they are ideal for such investments as the land and grid connections are already available. PPC is planning a 300 MW data center in Western Macedonia, but it hasn’t announced anything similar for Megalopolis yet.

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August 4, 2025
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Serbia adopts Just Energy Transition Plan until 2030

Serbia now has a Just Energy Transition Plan until 2030. The document contains suggested measures for the mitigation of the impact of reducing fossil fuel use, primarily coal, so that workers, firms and communities aren’t left behind.

Following last month’s completion of the public consultation process regarding the proposed Just Transition Action Plan, the Government of Serbia passed, at its last session, the Just Energy Transition Plan of the Republic of Serbia until 2030. The document leans on the Integrated National Energy and Climate Plan (INECP or NECP)

It lays out sustainable energy policy measures that would need or could be undertaken. The point is in reducing fossil fuel dependence and improving security and efficiency of electricity supply by switching to renewable energy sources, and in an energy efficiency boost.

A just transition aims to promote environmentally sustainable economies in a way that is fair and inclusive for all

“A just transition aims to promote environmentally sustainable economies in a way that is fair and inclusive for all – workers, businesses and communities – by creating opportunities for decent work and leaving no one behind. This initiative should not be seen as a fixed set of rules, but as a dynamic process based on dialogue with a focus on addressing the concerns and needs of local populations and affected stakeholders,” the plan reads.

The approach is based on mitigating the negative effects of the energy transition process. It implies significant investments in retraining and reskilling, to assist workers in adjusting to new industries, as well as education, the plan adds.

It highlights the importance of incentivizing the development of new industries, and supporting small and medium-sized enterprises, which can enable alternative sources of income and employment.

Electricity system collapse in December 2021 marked as turning point?

Until December 2021, domestic electricity production met domestic needs, although even before that, the power system had been making maximum efforts for many years to provide sufficient amounts of electricity or, rather, provide sufficient amounts of coal for the operation of thermal power plants, the document notes.

There is no elaboration on the time reference, but that’s when a major outage struck coal-fired thermal power plants of state-owned power utility Elektroprivreda Srbije (EPS). Of note, it was one in a string of serious incidents in the electricity system.

Coal plants are old and they mostly don’t comply with environmental standards

“The fact is that existing electricity generation plants are old and most of them are not in line with new operating conditions and standards when it comes to environmental protection. Therefore, it is quite clear that in the case of the Serbian energy sector, the energy transition should lead to a radical change in the structure of sources and methods of electricity production,” according to the plan.

Coal plants, open pit mines could be replaced with wide range of activities from culture to gas power plants

Listed among the possibilities for repurposing coal plants and coal mine land after shutting them down are green power plants (but also gas-fueled energy facilities), launching industrial production, logistical and commercial activities, together with sports, culture, education, agriculture, tourism and waste management.

In 2023. there were 25,288 employees in thermal power plants (22.2%) and coal mines (77.8%), the document notes. The oldest coal plant, Kolubara A of 239 MW, was built in 1956, and the newest unit is Kostolac B3, of 350 MW. It came online last year.

“Social dialogue mechanisms should be established to ensure that the voices of all stakeholders are heard and their concerns are addressed. This includes consultations with trade unions, local self-governments and civil society organisations,” the Just Energy Transition Plan of the Republic of Serbia until 2030 suggests.

Expenses are envisaged at EUR 75.4 million, of which EUR 12 million would be for incentives for entrepreneurship and self-employment and EUR 60 million for improving business structure at existing industrial parks.

Carbon pricing system to make coal power plants in Serbia increasingly uncompetitive

One section covers the upcoming rollout of charges within the European Union’s Carbon Border Adjustment Mechanism (CBAM). The tax affects imports of a group of raw materials and electricity. Third countries can be exempted if they establish their own carbon pricing and emissions trading systems.

“In order to balance the economic and environmental impacts of the introduction of domestic carbon pricing in Serbia, a phased approach could be adopted, starting with a modest carbon price and gradually increasing it. Support for affected industries, such as subsidies for low-carbon technologies and worker retraining programs, along with recycling revenues to finance green projects and providing direct rebates to citizens, can mitigate negative effects,” the plan adds.

NGOs have criticized the action plan draft for only describing preparatory activities

Actually, proceeds from greenhouse gas emissions allowances in the EU are used only for the green economic transition, and it is similar with most environmental levies.

The introduction of a carbon tax mechanism will make domestic coal-fired power plants increasingly uncompetitive, especially in regional electricity markets, the government warned.

Nongovernmental organizations and associations earlier criticized the draft, arguing that it delays the energy transition until 2030, only lists preparatory activities and that, inter alia, there is no targeted date for ending the use of coal for electricity production.

In any case, a just energy transition requires defining deadlines and projects and securing funds exclusively for the said purposes. Otherwise the market will trample coal plants and mines, and it will probably happen abruptly, which would jeopardize energy security and employment. Such effects are already tangible in Southeastern Europe, especially in Bosnia and Herzegovina, as well as in Bulgaria and Slovenia.

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July 30, 2025
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Project underway for 81 MW solar park on coal mine in Montenegro

The Government of Montenegro adopted urban planning and technical conditions for a solar power plant of 81.1 MW in peak capacity in Pljevlja. The site for the facility is part of a coal mining complex.

Greece is the most successful by far in the Balkans in transforming coal land into clean energy and advanced technology hubs. The projects in the region are mostly for solar power plants. Neighboring North Macedonia is next when it comes to implementation, while Romania and Bulgaria as well as Serbia and Slovenia have made their first steps. Bosnia and Herzegovina and Kosovo* are still in the planning phase, and now Montenegro is joining them with a photovoltaic project.

The government in Podgorica adopted the urban planning and technical conditions for a solar power plant of 81.1 MW in peak capacity in Pljevlja. The facility in the country’s north called Rudnik uglja would be in the Ilino Brdo I cadastral unit, on the site of the Potrlica open cast coal mine.

According to a study submitted with the application, the connection capacity would be 62.5 MW. The coal mine’s operator and PV project developer, Rudnik uglja Pljevlja, said the location spans 62.6 hectares.

The government plans to close the Pljevlja coal plant in 2041

The firm is a subsidiary of state-owned power utility Elektroprivreda Crne Gore (EPCG), which runs the Pljevlja power plant in the same complex. It is the only coal-fired facility in Montenegro. The government plans to close the thermal power plant, currently under reconstruction, in 2041.

Rudnik uglja Pljevlja presented a just transition plan in March. It aims to establish 12 businesses to transform the region and spin them off. They include construction, transportation and the installation of a small hydropower plant called Durutovići and a photovoltaic facility.

The previous government initiated the development of a plan two years ago for an industrial complex in Pljevlja. There are several separate renewable energy projects in the area as well.

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* This designation is without prejudice to positions onstatus and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo declaration of independence.
July 11, 2025
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Solar beats nuclear in June, becoming EU’s biggest electricity source for first time

Solar became the EU’s largest source of electricity for the first time in June 2025. National records for both photovoltaics and wind rolled in in May and June, pushing coal to an all-time low.

Solar was the largest source of electricity in the European Union for the first time last month, with multiple countries producing record amounts of solar power, Ember found. Wind power achieved the highest ever generation for the months of May and June, the think tank said.

Solar power generated 22.1% of EU electricity (45.4 TWh) in June, more than any other power source. It was a year-over-year increase of 22%. In second place was nuclear, with 21.8% (44.7 TWh), followed by wind, with 15.8% (32.4 TWh).

The big opportunity now comes from adding battery storage and flexibility to extend the use of renewable power into mornings and evenings, where fossil fuels still set high power prices, according to Ember’s Senior Energy analyst Chris Rosslowe.

At least thirteen EU countries set monthly solar records

At least thirteen countries recorded their highest-ever month of solar generation, amid an ongoing surge in photovoltaic installations. Among them were Bulgaria, Croatia, Greece, Slovenia and Romania, all the EU countries in the region that Balkan Green Energy News is focused on except Cyprus, for which there was no data for June.

Wind power reached an all-time high shares of 16.6% (33.7 TWh) and 15.8% (32.4 TWh) in May and June, respectively

Strong photovoltaic output helped the power system to handle higher levels of demand resulting from heatwaves that gripped the continent towards the end of the month, according to the report.

Wind farms generated 16.6% (33.7 TWh) and 15.8% (32.4 TWh) of EU electricity in May and June, respectively. It was an all-time high for both months. Notably, at the start of the year, wind conditions were relatively poor. They improved, and they were the main driver, though capacity has been continuously growing over the past year. Several large offshore wind farms were commissioned.

Coal falls to record low

As a result of high renewables generation in June, coal had the lowest-ever share of EU electricity. Total fossil generation was also low, but it grew in the entire first half of the year on an annual basis.

Coal generated just 6.1% (12.6 TWh) of EU electricity in June, down from the 8.8% registered in the same month of last year.

The two countries that account for the vast majority of EU coal power (79% in June) both saw record lows in June. Namely, Germany generated just 12.4% (4.8 TWh) of its power from coal, and Poland 42.9% (5.1 TWh). Four other countries recorded their lowest-ever month of coal generation in June: Czechia (17.9%), Bulgaria (16.7%), Denmark (3.3%) and Spain (0.6%), which is approaching its coal phaseout.

Fossil fuels generated 23.6% (48.5 TWh) of EU electricity in June, just above the record low of 22.9% in May 2024. Nevertheless, fossil generation in the first half of 2025 was 13% higher (by 45.7 TWh) than in the first half of 2024, mainly due to a jump in gas generation by 19% or 35.5 TWh. Lower hydropower (due to drought) and wind generation than last year, and increasing demand marked the period.

Electricity demand continued on an upward trajectory. In the first half of 2025, the EU consumed 1.31 PWh of electricity or 2.2% more than in the same period of last year.

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July 8, 2025
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Bulgaria’s TPP Maritsa East 2 coal plant posts EUR 52 million loss for 2024

Even with a quota for the regulated electricity market in Bulgaria, low electricity prices pushed TPP Maritsa East 2 into a loss last year. It is the only state-owned coal power plant.

The financial report for 2024 showed a loss of EUR 52 million for TPP Maritsa East 2 (Maritsa-iztok 2), Kapital reported. It compares to a modest net income of EUR 29 million achieved one year earlier. Notably, the subsidiary of state-owned Bulgarian Energy Holding (BEH) had a record profit of some EUR 600 million in 2022, during the energy crisis.

Operating income plunged almost 15% to EUR 614 million last year. The only government-controlled coal power plant sold more electricity than in 2023, but at lower prices.

Moreover, liabilities surged to EUR 358 million from EUR 127 million, mainly due to greenhouse gas emission certificates. The gap between liabilities and assets reached EUR 1.18 billion, against EUR 920 million one year before, the report reads.

Regulated market keeps Maritsa East 2 afloat

Interestingly, almost 86% of the output was sold on the regulated electricity market, which covers households. For the past few years, TPP Maritsa East 2 has been operating under a quota determined by the Ministry of Energy, even though it doesn’t have the right, in principle, to work for the regulated market, the article notes.

Even with the market liberalization that was introduced on July 1, the facility keeps supplying households, the news outlet added. It was enabled through a new segment at the electricity exchange, for long-term contracts, with so-called non-standard products. They are intended for all sellers, but in practice the sellers are state-owned power plants: Kozloduy Nuclear Power Plant, TPP Maritsa East 2 and National Electricity Co.’s hydroelectric facilities.

It means the coal plant’s high production costs are passed on to household bills. It has 1.62 GW in nominal capacity, but it is utilizing much less. The enterprise sold 605 GWh in the open market and 3.23 TWh in the regulated market in 2024.

Coal plants failing to maintain competitiveness throughout EU

Slovakia and Spain officially intend to exit coal this year, followed by Greece (2026), France and Hungary (2027) and Denmark and Italy (2028). However, the dates could be pushed forward and there is a possibility that more countries will join the group in the meantime.

Several of the remaining facilities in the European Union and beyond are active just sporadically – in islands or to cover winter peaks or only until the district heating systems that they supply switch to cleaner sources.

Coal power is already uncompetitive most of the time, particularly because of emission costs. In addition, when such facilities are idle, their costs rise further because of salaries and the complex logistics, primarily mining operations. Other coal plants in Bulgaria are also affected.

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June 19, 2025
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Western Balkan coal plants cut harmful emissions in 2024 but breaches remain extreme

In 2024, Western Balkan governments’ chronic law enforcement failures allowed sulphur dioxide (SO2) pollution from the region’s antiquated coal power plants to exceed legal limits by six times, according to the Comply or Close report. The overall particulate matter (PM or dust) and nitrogen oxides (NOx) pollution from coal plants continued to exceed legal limits.

Emissions of the three pollutants were actually the lowest since at least 2018, altogether, but the legal upper limits were reduced as well. Serbian coal plants released almost a third less SO2 than in 2023 thanks to desulfurization units. The drop was greater than the total decrease in the region.

Seven years since pollution control rules came into force under the Energy Community Treaty, SO2 emissions from coal plants included in the national emission reduction plans (NERPs) of Bosnia and Herzegovina, Kosovo*, North Macedonia and Serbia were still collectively six times as high as allowed, Bankwatch said in its Comply or Close annual report.

Region-wide, SO2 emissions decreased 12.1% year over year, to 518,248 tons, but it’s only 14.5% down from 2018. The limits were more stringent in 2024 than in previous years, as is the case with PM pollution and NOx, which widened the compliance gap.

BiH becomes biggest SO2 polluter in Western Balkans

For the first time, Bosnia and Herzegovina’s NERP coal plants were the highest SO2 emitters, with 212,840 tons altogether – an increase of 17.1% from the previous year – and 11.3 times as high as allowed. The group excludes the Stanari facility, built in 2016. It has complied with the European Union’s Large Combustion Plants Directive since the start.

Serbia followed, with 205,925 tons, or 4.6 times as high as allowed. The total amount of SO2 emissions fell 30.1% on an annual basis, landing at the lowest level since at least 2018. The decrease in the country was higher than in the whole region. Of note, Serbia has a new coal plant, too – Kostolac B3.

The Kostolac B coal plant has a desulfurization unit, but its SO2 emissions in 2024 were 2.3 times more than allowed

The (insufficient) drop in SO2 emissions from the NERP facilities in the country is due to desulfurization units. Some of the other improvements in the region regarding air pollution came from a decrease in production.

Kostolac B finally started to decrease its emissions in 2024 with its desulfurization system, but it still emitted 2.3 times as much as allowed.

In April 2024, the EUR 215 million desulfurisation system at Termoelektrane Nikola Tesla (TENT) A3-A6 was commissioned. It was 13 years after securing funding. The units still emitted more than twice as much sulphur dioxide as allowed in 2024. Another desulfurization facility, at TENT B, was 91% complete at the end of the year.

Ugljevik accounts for over one fifth of SO2 emissions in region as desulfurization unit is idle

For the fifth time since 2018, the biggest individual SO2 polluter in the Western Balkans was Ugljevik in BiH, with 112,943 tons – more than the previous year. It includes a desulfurization unit since 2020, but it hasn’t been working as the operator considers it an “economic burden.”

In 2024, the only potentially significant development regarding pollution control in the region was the signing of a contract for the construction of a desulfurisation unit at Kakanj 6 and 7, the report notes. It is projected to cost just under EUR 63 million. But the authors of Comply and Close pointed to the slow progress in the reconstruction of the Pljevlja coal power plant in Montenegro, which is also conducted by a consortium of China-based Dongfang.

Five coal units operating illegally

Pljevlja is the only coal plant in Montenegro. The facility isn’t under NERP rules, but under a so-called opt-out mechanism. The deadlines have expired for closing the smallest and oldest plants under the opt-out limited lifetime derogation.

Pljevlja has been running illegally since late 2020, and in 2022 was joined by Tuzla 4 and Kakanj 5 in Bosnia and Herzegovina and Morava in Serbia. The Kolubara A plant, also in Serbia, failed to stop operating at the end of 2023.

The Energy Community Secretariat has opened several infringement-type cases against the three countries, but not a single government has imposed penalties on the coal plants in question. Nor do they have clear, updated and realistic plans for compliance or closure.

Montenegro, Serbia and BiH have no clear plans for the coal plants that operate after ther their opt-out deadlines expired

“In six months, the EU’s Carbon Border Adjustment Mechanism (CBAM) will finally limit exports of Western Balkan countries’ carbon-intensive electricity by imposing fees on imports to the EU. This will make their ageing, inefficient coal plants even less economic. But the Balkan governments and utilities seem oblivious, as if they have all the time in the world. Clear, workable plans are urgently needed,” said Balkan Energy Coordinator at Bankwatch Davor Pehchevski.

Six units exceeded their individual ceilings for sulfur dioxide emissions by more than ten times – Ugljevik, Gacko, Tuzla 6 and Kakanj 7 in Bosnia and Herzegovina; Kostolac A2 in Serbia; and Bitola B1 and B2 in North Macedonia.

In 2024, Pljevlja’s SO2 emissions dropped 11.1% to 39,140 tons, the lowest level since at least 2018. Dust emissions decreased to 793 tons from a record high of 1,130 tons, but this was still higher than any other year since the beginning of the period. NOx emissions – 3,682 tons, the second-lowest result, compare to 3,982 tons registered in 2023.

Gacko coal plant tops chart in particulate matter emissions

Dust pollution from NERP coal plants in the region was 1.9 times higher than allowed last year. It dropped slightly from 2023 but remained similar to 2018 levels.

The highest emitter was Gacko in Bosnia and Herzegovina. It emitted 3,339 tons – 13.7 times above the limit. After protests by local people, improvements were announced in autumn 2023, however the plant’s pollution grew last year. Overall, dust in BiH decreased for the third time in a row, landing at 4,146 tons. The emissions in the segment peaked in 2021 at 6,040 tons.

Serbia is the only country in the region with emissions of PM particles within legal limits

Nitrogen oxides pollution in the region totaled 1.4 times above the limit, after 1.3 times more than allowed in 2023. BiH, Kosovo* and Serbia all continued to breach their NOx limits, with TENT B in Serbia emitting the most – 12,418 tons.

Kosovo* had the highest exceedance – 3.1 times as high as its ceiling. The reconstruction and modernization of one of the two units in the Kosovo B coal power plant started recently.

North Macedonia is the only country complying with the rule on nitrogen oxides. Serbia is the only one below the limit for PM particles.

“EU enlargement is back on the agenda, but the harsh reality is that Western Balkan governments are showing no interest in people’s health or the environment. Instead of a robust response to these chronic breaches, the European Commission recently prioritised the Jadar lithium mine in Serbia as strategic, rewarding the regime’s failure to uphold the rule of law. This has to change, and fast,” said Bankwatch’s Southeast Europe Energy Policy Officer Pippa Gallop.

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* This designation is without prejudice to positions onstatus and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo declaration of independence.
May 26, 2025
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Slovenia keeps phasing out coal as key heating plant boosts natural gas share to 60%

TE-TOL, the main district heating provider in the Slovenian capital, Ljubljana, has taken over a newly built gas-steam unit, reducing the share of coal in heat generation to 20% and marking another step toward a complete coal phaseout in the country.

Slovenia’s official deadline for abandoning coal is 2033, although there are indications it might happen much sooner. In a step seen as the beginning of the country’s coal phaseout, the Government of Slovenia decided in December to provide EUR 403 million to save the Šoštanj coal power plant and coal mine Velenje from bankruptcy, announcing it would take over both entities from state-owned power utility Holding Slovenske Elektrarne (HSE).

Over the weekend, Srečko Trunkelj, deputy CEO of Energetika Ljubljana, a state-controlled energy company that operates TE-TOL, explained that heat production at the plant was previously based on 65% coal, 19% natural gas, and 16% wood biomass. “This structure has changed significantly, as we now use 20% coal, 60% natural gas, and 20% wood biomass,” Trunkelj said at a conference on Sunday, the Naš stik magazine reported.

The share of coal in heat production at TE-TOL has now dropped from 65% to 20%

Last week, the Greek contractor handed over the management of the new gas-steam unit to TE-TOL. “The […] plant is now under our management, with a three-year warranty period,” Energetika Ljubljana explained.

The new unit, called PPE-TOL, comprises two gas turbines, each with a nominal electrical power of 57 MW, and one steam turbine with 42 MW of nominal power. Officially, the facilities are still in a trial operation period until the company obtains a use permit. The new gas-steam unit is expected to begin regular operation in the coming heating season.

The new unit will also boost TE-TOL’s electricity output

The new unit will also enable TE-TOL to boost its electricity generation, making it the third-largest power producer in the country. It will provide around 8% of the country’s total electricity supply, Energetika CEO Samo Lozej said earlier. Its output should be enough to supply 600,000 households.

Energetika Ljubljana operates the largest district heating network in Slovenia, supplying heat to about 60,000 homes, and is also a major player in the natural gas retail market, according to Slovenian media.

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April 29, 2025
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KEK issues call for reconstruction of Kosovo A3 coal plant unit

After 55 years of operation, a unit of KEK’s coal-fired power plant near Prishtina in Kosovo* is about to get a makeover, worth EUR 137.3 million. Firms can respond to the prequalification call for the facility’s rehabilitation and modernization by March 3.

Government-controlled Kosovo Energy Corp. (KEK) launched a project for boosting the capacity and efficiency of unit A3 in the Kosovo A thermal power plant. At the same time, emissions of pollutants must be reduced by 55% to 66% and brought in line with the European Union’s rules.

The unit was built in 1970 and now it would be reconstructed for the first time. The utility wrote in the call for prequalification that the investment is estimated at EUR 137.3 million.

The rehabilitation and modernization project aims to extend the operational life of A3 by 20 years. The capacity would be raised to 215 MW from the current range of 120 MW to 140 MW. The facility’s original capacity was 200 MW.

In addition, the selected contractor needs to raise the number of operating hours to 7,700 per year from 5,400. Kosovo A3 so far worked 260,000 hours. Annual output is seen more than doubling to 1.5 TWh.

Reconstructed, the facility will cut coal use in production to 1.15 tons per megawatt-hour from up to 1.6 tons now, according to the assignment.

The emissions of particulate matter – PM particles – need to drop to below 20 milligrams per cubic meter. According to the project, the upper limit for both nitrogen oxides (NOx) and sulfur dioxide (SO2) is 200 milligrams per cubic meter. The United States Agency for International Development (USAID) provided technical support.

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* This designation is without prejudice to positions onstatus and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo declaration of independence.
April 24, 2025
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Bulgaria grants EUR 587 million to 82 battery storage projects

Developers of 82 standalone battery storage projects in Bulgaria, for an overall 9.71 GWh in capacity, got approval for EUR 587 million in subsidies from the Ministry of Energy. Another 30 landed below the line, but the government intends to boost the program by EUR 120 million.

More than four months after the deadline for applications, the Ministry of Energy of Bulgaria ranked 112 projects for standalone battery energy storage systems (BESS). Through the RESTORE call for grants, it approved EUR 587 million for 82 of them, exhausting the budget.

The scheme is part of the National Recovery and Resilience Plan (NRRP), under the Recovery and Resilience Facility (RRF), which the European Commission controls.

The selected investments envisage an overall 9.71 GWh of storage capacity, compared to the target of at least 3 GWh. The aim is to provide balancing to enable a significant increase in the share of wind and solar power in the energy mix, as well as to ensure the security and stability of the country’s electricity system. The facilities will be connected to the grid at both the transmission and distribution levels.

Notably, Bulgaria is struggling to meet the conditions and deadlines for NRRP funding, including for battery projects. Moreover, the ministry apparently decided not to move forward with a second call for subsidies for households for solar panels with or without batteries, and for solar collectors. It risks losing the European Union’s funding.

Project underway for 125 MW battery system in Burgas

The largest selected investment is BESS Burgas. The project is worth EUR 90 million, of which the grant would cover 26.5%. The proposed facility would have 125 MW in operating power and a four-hour duration, translating to 500 MWh.

The list lacks data on planned capacities for many of the projects. Among them is the one from ContourGlobal Maritsa East 3 (Maritsa iztok 3), the operator of a coal power plant that recently ceased operations. The company intends to invest EUR 74.5 million, the fifth-highest amount. The ministry said it would provide 40% of the total.

The owner of the recently closed Maritsa East 3 coal power plant won a 40% subsidy for its EUR 74.5 million BESS proposal

Weapons and ammunition producer Arsenal 2000 won a 44% subsidy for its EUR 48.9 million project. It intends to install a BESS of 80 MW and 350 MWh. One of the selected proposals is called Verila Solar Park 2. The share of the approved grant in the EUR 65.7 million investment is 32%.

Toki Storage stands out among the beneficiaries with 11 approved projects of the same size and valuation: 10 MW, 40 MWh and EUR 6 million each. The grants would cover 30% to 39.3%.

NEK fails to qualify with its project for battery system at Topolnitsa hydropower plant

Out of 151 applications, 118 initially passed to the ranking stage. The ministry said they were worth a combined EUR 838 million. The 30 projects in reserve are worth EUR 212 million, it added.

They include proposals from coal plant operators Toplofikatsiya Pernik and Bobov Dol. The ministry rejected four projects, of which one from state-owned National Electricity Co. (NEK), for a 20 MWh battery unit at its Topolnitsa hydropower plant.

According to consulting firm New I, involved in more than 40% of the winners in the call, they are worth EUR 1.59 billion altogether, Bulgarian language EU Funds website reported. Requested support ranges between just below EUR 40,000 per MWh and EUR 80,000 per MWh, and the weighted average came in at EUR 60,000 per MWh, it revealed.

Many of the 151 projects were duplicated, the article adds.

Importantly, the government has proposed increasing the RESTORE program by EUR 120.6 million, which would be sufficient for at least 20 projects in the reserve group.

The ministry was supposed to select the beneficiaries by January. The deadline for drawing the EU funds is June next year, so the developers must rush to install their battery systems – but first they need to sign contracts with the government.

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April 23, 2025
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Italy mulls keeping its last coal plants on standby

After retiring the two remaining mainland coal power plants, scheduled for this year, Italy’s government intends to switch the facilities to standby instead of dismantling them. Two others are on the island of Sardinia, which is waiting for another subsea interconnection to complete the coal phaseout.

Italy has 4.7 GW in coal power capacity left, following the recent retirement of A2A’s plant in Monfalcone, on the border with Slovenia. The two facilities that remained on the mainland are only marginally active and they are officially set to be closed this year. However, Minister of the Environment and Energy Security Gilberto Pichetto Fratin expressed the belief that they should be kept on standby.

“Therefore, not producing, because it is not economically suitable. But the geopolitics are still in a state where no one can guarantee us that gas will not reach EUR 70 per MWh or that there will be no malfunctions in the pipelines that supply us,” he argued. The said facilities, already dormant as they are not cost-effective, should be kept just in case, in the view of the minister. He didn’t address the pollution issue.

Provisional data showed that coal power output nosedived 71% in 2024 to 3.5 TWh. It translated to a share of 1.3% in electricity production and 1.1% in consumption.

On the one hand, the capacities would be valuable in case of gas and power supply disturbances. But it comes at the cost of maintaining a complex system idle.

Sardinia may remain dependent on coal by 2029

The two mainland coal plants are Enel’s Torrevaldaliga Nord in Civitavecchia and Brindisi Sud.

There are two more, in Sardinia, scheduled to be phased out by January 2029. By then, the island’s interconnection with the main grid should be strengthened with the proposed Tyrrhenian Link. The Sulcis coal plant is also Enel’s, and the other one is EP Produzione’s Fiume Santo power plant. Together, they have 1.1 GW in nominal capacity.

Speaking at the same event, Chief Executive Officer of Enel Flavio Cattaneo warned of the expected surge in power consumption, suggesting the coal exit be reconsidered. The “perfectly functioning” plants, which “saved” Italy during the gas crisis, will be closed by August, he stressed. The company is open to selling its coal assets, Cattaneo said and hinted at the possibility that the government buys them.

AI, data centers bolstering demand for nuclear energy, gas, coal

Eni’s CEO Claudio Descalzi said it was “pure madness” to close coal-fired power plants “in a situation of high costs or low energy availability.” He cited the rise of artificial intelligence and data centers, boosting energy demand, and the need to keep costs low. “It is only possible with nuclear, gas and coal,” Descalzi claimed.

Closing coal plants is not in the country’s interest, said Deputy Prime Minister of Italy and Minister of Infrastructure and Transport Matteo Salvini.

A group of environmental organizations called it unacceptable in 2025 to propose coal to be part of the energy mix.

Italy is no longer buying Russian gas

Minister Pichetto Fratin also said Italy has stopped buying gas from Russia at the end of last year. It turned to alternatives like liquefied natural gas (LNG) from the United States, he added.

The country needs to rapidly deploy renewables, in his view, and decouple the prices of electricity and gas. Pichetto Fratin said gas accounts for 40% of power but that it determines 70% of the final price, and criticized the pricing system based on the Netherlands’ TTF benchmark.

The government is considering support for long-term power purchase agreements (PPAs) and contracts for difference (CfD), to stabilize prices and become competitive with Germany. It is also the European Union’s policy, under the latest electricity market redesign.

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