Decarbonization and Transition to the Post-Lignite Era: Analysis for a Sustainable Transition in the Region of Western Macedonia

Abstract

For many decades, the Region of Western Macedonia has been Greece’s energy hub, contributing significantly to electricity supply and national growth with the exploitation of lignite deposits for power generation. Lignite, though, has been banned from EU energy source policies towards achieving CO2 emissions reduction, with profound implications on the economy of the region. Despite the importance of this energy transition, a combinatorial analysis for the area in the coal phase-out regime is missing. Therefore, a combined analysis is performed here, and more specifically, a strengths, weaknesses, opportunities, and threats (SWOT) analysis in all the affected sectors, in combination with the examination of the degree of satisfaction with the EU’s energy priorities. The results of the study show that the Region of Western Macedonia has profound strengths and offers many new opportunities during its transition to a new production model. On the other hand, it has high unemployment rates and low rates of competitiveness and innovation. The main threat is the Region’s desertification due to the inability to find sufficient jobs. Considering the Energy Union’s priorities, the Region of Western Macedonia satisfactorily follows the priorities of Europe in its transition to the new production model, with plenty of room for improvement. The analysis performed allows for a just transition strategic planning to minimize social, economic and energy challenges while maximizing sustainable power generation and has implications for all relevant stakeholders, contributing to the implementation of Energy Union governance and climate actions.