Greece’s power utility Public Power Corporation (PPC) is reportedly planning to invest €3.4bn ($4.11bn) to expand its renewables capacity and modernise the country’s distribution grid.

By 2023, the state-owned utility intends to close all of its coal-fired plants, excluding one, as part of the country’s carbon emissions reduction strategy and to comply with the European Union’s climate targets, Reuters reported.

The proposed investment plan has been announced by the company during a presentation to investors.

Of the total investment, about 42% will be used by PPC for upgrading power distribution through its 242km-long grid.

PPC aiming 1.5GW renewable capacity by 2023

Additionally, PPC plans to invest in the construction of solar and wind projects to increase clean energy generation from 0.17GW now to 1.5GW by 2023.

The company is also considering decommissioning coal-fired plants with a combined capacity of 3.4GW. Upon decommissioning, the power plants will be repurposed to include co-generation, energy storage, biomass and hydrogen.

Earlier this year, Reuters reported that Greece plans to invest approximately €5bn ($6bn) in phasing out the use of coal in power generation by 2028.

The news agency cited a government official as saying that the total investment will include state funds, financing from the European Union and European Investment Bank.

PPC, which has already closed two coal units, with a combined capacity of 550MW in Macedonia, is also planning to close the remaining 10 plants by 2023.

Last month, German renewable energy developer juwi, through its Greek subsidiary, commenced construction on a 204MW solar project in northern Greece.