Greece Plans €40 Million Prison in Former Lignite Mining Hub of Megalopolis

07 Nov 2026, 19:34 by Bill Giannopoulos · Greek City Times

Greece is moving ahead with plans to build a €40 million prison complex in Megalopolis, Arcadia, as the government seeks to transform a region once heavily dependent on lignite mining and electricity production.

The proposed facility will accommodate up to 600 inmates and occupy a site covering approximately 124 stremmas (124,000 square metres) in an area affected by the country’s transition away from coal.

Prime Minister Kyriakos Mitsotakis attended the signing of a programmatic agreement on November 5, marking the start of preparations for the project.

The agreement covers the preparation and tendering process, meaning construction has not yet been completed and the prison is not operational.

According to the government, the project will form part of a broader effort to create employment and attract investment to the former energy-producing region.

A new future for a former energy centre

For decades, Megalopolis was one of Greece’s major lignite-producing centres. Its mines and power stations supported the national electricity system and provided employment for thousands of people and their families.

The closure of the lignite industry has left the region facing the challenge of replacing its traditional economic base.

The proposed prison will include accommodation facilities, agricultural and craft units, medical services and educational infrastructure.

Funding is expected through the European Union’s Just Transition framework, which supports regions affected by the move away from fossil fuels.

The government says the facility will create new employment opportunities, although questions remain over how many permanent jobs it will generate compared with those lost through the closure of the lignite industry.

Former energy workers confront Mitsotakis

During his visit, Mitsotakis faced protests from former employees and pensioners of Greece’s Public Power Corporation (PPC), known as DEI.

The protesters expressed their anger over the closure of the lignite mines and the dismantling of industrial equipment associated with the region’s energy history.

Some argued that machinery should have been preserved as part of an industrial museum rather than destroyed.

Mitsotakis maintained that the lignite era had ended, prompting one protester to respond: “You ended it, but it didn’t end itself.”

The exchange highlighted the frustration among sections of the local community over the government’s energy transition and the loss of an industry that shaped the region for generations.

Greece continues dismantling its lignite infrastructure

The transformation of Megalopolis is part of a wider national shift away from lignite-fired electricity generation.

In June 2026, three enormous rotary excavators were demolished in a controlled explosion at Mavropigi, near Kozani in Western Macedonia.

The machines, approximately 100 metres long and 50 metres high, had been used in lignite mining. PPC said they were obsolete and no longer in operation.

Their destruction became another symbol of the dismantling of Greece’s coal industry.

Although the environmental case for reducing lignite consumption includes lower carbon emissions and reduced air pollution, the speed of the transition has raised questions about energy security and the loss of domestic electricity-generating capacity.

Greece also returned to lignite generation during the 2022 energy crisis, when soaring natural gas prices placed pressure on electricity supplies.

Greenhouses and industrial investment promised

The government insists that Megalopolis will not depend solely on the prison project for its economic future.

Other initiatives include plans for an industrial park, hydroponic greenhouses and additional private investment.

Mitsotakis has promoted the idea of transforming the region from an energy-producing centre into a hub for agricultural production and new industries.

Greenhouse investment proposals reportedly exceed €130 million.

However, the scale of the proposed investment does not necessarily translate into an equivalent number of permanent jobs, and the economic viability of these projects remains to be demonstrated.

The wider transition also raises questions about the electricity requirements of future industrial developments, particularly as Greece continues to reduce its domestic lignite generation.

A prison is not an economic transition

Greece has a genuine need for additional correctional facilities amid overcrowding in parts of its prison system. The proposed investment could also provide employment for the surrounding community.

However, the construction of a prison alone cannot replace the economic contribution of an entire energy industry.

Megalopolis spent decades producing electricity for Greece. Its workers, businesses and local economy were built around lignite mining and power generation.

The government is now promising a different future based on correctional facilities, agriculture and industrial investment.

Whether those projects can deliver stable employment and sustainable economic growth remains an open question.

For a region that once helped power the country, the challenge is not simply to find new uses for former mining land, but to build an economy capable of replacing what was lost.

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