Regional and Local Development in Energy Transition Areas: The Case of Lignite Phase-Out in the Peloponnese

Abstract

The establishment of sustainable energy frameworks amidst global climate change and dwindling petroleum reserves has prompted a focus on energy transition, marking a shift in how energy is utilized within systems. Greece, historically reliant on lignite for electricity generation, faces the challenge of transitioning towards a low-carbon economy. This study explores the potential of creating a multipurpose entrepreneurship and culture center, the Mediterranean Center for Entrepreneurship and Culture (MCEC), in Megalopolis, Arcadia, Greece, as a strategic intervention for economic, social, and environmental restructuring. Drawing on best practices and comprehensive analyses of external factors, the study outlines the conceptualization and evaluation of the MCEC, considering economic feasibility, development scenarios, financial sustainability, and stakeholder engagement. The discussion highlights the anticipated benefits of the MCEC, including job creation, entrepreneurship promotion, and socio-cultural advancement, underscoring its potential to mitigate the impacts of lignite phase-out and foster sustainable regional development. Overall, the establishment of the MCEC is poised to yield positive socio-economic impacts, including employment growth, entrepreneurship promotion, infrastructure development, and cultural enrichment, contributing to the resilience and prosperity of the Megalopolis region and beyond.

1. Introduction

Amidst global climate change and the rising scarcity of petroleum, there emerges an imperative for the establishment of a sustainable energy framework and the enhancement of energy demand and supply management [1]. Thus, in recent years, the concept of “Energy Transition” has begun to preoccupy researchers and policymakers. The term generally refers to “a shift in the nature or pattern of how energy is utilized within a system” [2] (p. 112). Although the concept is not modern [3], for the first time in history energy transition is not driven exclusively by the need to exploit new energy sources but includes social and environmental dimensions [4].

For an extended duration, lignite has exerted significant influence over Greece’s electricity generation, contributing to economic growth and energy self-sufficiency owing to abundant domestic reserves [5]. Following World War II and the subsequent civil unrest, Greece faced extensive destruction, necessitating a national focus on rebuilding and progress. In 1948, the government introduced a reconstruction plan, which notably included the establishment of the Public Power Corporation (PPC) with the ambitious goal of electrifying the nation. Reflecting trends seen across Europe, PPC emerged as Greece’s primary electricity provider, relying on the utilization of local lignite with comparatively lower energy content [6]. In the study area of Megalopolis, PPC initiated lignite exploitation in 1969, a notable case globally due to its use of poor-quality fossil fuel for power generation. Lignite production in the Megalopolis area escalated from 4 million tons in the initial five years to almost 14 million tons between 2001 and 2005 [7].

The distinctive features of the Greek political system, coupled with the development of European climate and energy policies, have shifted the perception of lignite from a solution for national electrification to a multifaceted challenge encompassing environmental, health, political, and economic dimensions [6]. Aligned with its national and international commitments toward climate mitigation and sustainable development, Greece is presently confronted with the pressing need to revamp its energy infrastructure, surmount technological barriers, and shift towards a low-carbon economy [5].

In the literature, there are interesting studies on Greece’s lignite phase-out. The case studies focus mainly on Western Macedonia [8,9,10], as it has long been the region with the largest lignite reserves in the country, as well as on Megalopolis [11]. According to Pavloudakis et al. [10], the integration of a just transition framework necessitates the implementation of strategies aimed at fostering sustainable regional development, capitalizing on the inherent strengths of individual regions. However, the literature lacks a comprehensive proposal and study of a specific project that would achieve this goal.

Taking into account the need for strategic developmental interventions in lignite areas, this article explores the creation of a multipurpose entrepreneurship and culture center named “Mediterranean Center for Entrepreneurship and Culture of the Peloponnese (MCEC)” in Megalopolis, Arcadia, Greece. The proposed activities and uses of the MCEC include (a) Trade fairs and Conferences, (b) Cultural and Entertainment Activities, (c) Business and Commercial Centers, (d) Tourist Activities and Infrastructure, and (e) Enhancing Competitiveness of the Primary Sector—Education.

The specific project was proposed by TIF HELEXPO S.A. following a Memorandum of Understanding and Strategic Cooperation with the Coordinating Committee of the Just Transition Development Plan for the formation and implementation of strategic development interventions in lignite regions. TIF HELEXPO S.A. is the national organizer of exhibitions, conferences, and cultural events in the country. Currently, it owns two significant exhibition and conference centers, one located in Thessaloniki, where its headquarters are based, and another in Athens, organizing more than 20 sector-specific exhibitions. Additionally, TIF HELEXPO S.A. serves as the official advisor to the state on exhibition-related matters. Following an informal consultation with local bodies in the Peloponnese (Region of Peloponnese, Municipality of Megalopolis, etc.), TIF HELEXPO decided to explore the creation of the MCEC in Megalopolis, Arcadia. The feasibility study for the establishment of the Mediterranean Center for Entrepreneurship and Culture (MCEC) was financed by the Green Fund and meticulously prepared by the consultancy firm “ReDePlan Consultants” under the oversight and guidance of TIF-HELEXPO.

The strategic objective of this multipurpose center is to support the plans being executed for the economic, social, and environmental restructuring and development of the Megalopolis area, with a focus on sustainability and resilience to potential changes and pressures. The central character of Megalopolis in the Peloponnese, but also the central position of the Peloponnese in the Mediterranean Basin, offers an important comparative advantage for the development of exhibition and conference activity. The selection of these specific activities and uses was made because research results show that exhibition and conference activities have multiple and multi-level benefits for the host destinations [12], while similar benefits also arise from organizing cultural events [13,14].

The purpose of this article is to propose and explore the establishment of MCEC in Megalopolis, Arcadia, Greece. The initiative aims to address the socio-economic and environmental challenges posed by the transition away from lignite-based energy in Greece. By focusing on strategic developmental interventions in lignite-dependent regions, this article seeks to outline a comprehensive approach to fostering sustainable regional development and enhancing the area’s economic resilience. The project is designed to align with national and international commitments to climate change mitigation and sustainable development, providing a blueprint for economic revitalization and community enhancement through diverse activities, including trade fairs, cultural events, business services, and tourism infrastructure. The article makes significant contributions to the understanding and practice of sustainable regional development in the context of the energy transition, offering a detailed and practical proposal for a multipurpose center that aims to transform the economic landscape of Megalopolis and serve as a model for other regions facing similar challenges.

2. Materials and Methods

The methodology used in our study, as illustrated in Figure 1, begins with the investigation of best practices. This involves reviewing national and international experiences related to similar developmental interventions to identify successful strategies and models that can be applied to the MCEC.

Following this, a comprehensive analysis of the external environment is conducted. This encompasses economic, social, and environmental factors, as well as regulatory and market conditions that may impact the project. Subsequently, the description and determination of the specific needs and requirements for the proposed activities and uses of the MCEC are addressed. This step involves identifying the necessary functional and operational specifications essential for the project’s success.

The next phase involves dimensioning the MCEC determining the appropriate scale and size for various components such as exhibition spaces, conference rooms, business incubators, and additional facilities. This is followed by the formulation and evaluation of development scenarios for the MCEC, where multiple scenarios for the potential development of the center are created and evaluated based on criteria such as feasibility, cost, and potential impact.

Following the technical project evaluation, a financial project evaluation is conducted. This step includes the determination, assessment, and comparison of the benefits and costs of the project, development of budgetary financial statements, estimation of investment costs, evaluation of financial sustainability, and examination of indicative project financing models.

Subsequently, an institutional project evaluation is carried out, exploring the management entity model for the MCEC towards urban governance. This aims for the involvement of all relevant stakeholders in the overall project, from both the public and private sectors.

Finally, a commercial, social, and environmental project evaluation is conducted. This step involves assessing the impact of the MCEC on the Megalopolis area, considering the commercial viability, social benefits, and environmental implications of the project. The methodological tools used are P.E.S.T.E.L. analysis, S.W.O.T. analysis, and stakeholders information session—consultation.

These steps collectively form a comprehensive methodological framework aimed at ensuring the successful planning and implementation of the MCEC, taking into consideration all relevant external and internal factors.

3. Results

3.1. Project Development Area

The project will be implemented in the Peloponnese Region (Figure 2), which constitutes the southernmost mainland tip of Europe and covers 11.7% of the country’s total area. The Region of Peloponnese is 1 of the 13 Regions of Greece and includes the Regional Units of Arcadia, Argolida, Korinthia, Lakonia, and Messinia. Its permanent population is approximately 540,000 inhabitants (

Table 1. Population and population density of the Peloponnese region and regional units (R.U.).

Geographic Area	Permanent Population 2021	Population Density 2021
Greece	10,482,487	79.4
Peloponnese Region	539,535	34.8
R.U. Korinthia	138,310	60.4
R.U. Argolida	93,216	43.3
R.U. Arcadia	77,592	17.6
R.U. Messinia	146,080	48.8
R.U. Lakonia	84,337	23.2

Source: Hellenic Statistical Authority [15].

), with the majority of the active workforce employed in the tertiary sector, fewer in the primary sector, and even fewer in the secondary sector. In comparison to the country as a whole, it presents a high percentage of employment in the primary sector, mainly due to the Regional Units of Lakonia and Messinia. It also shows a high participation rate of the secondary sector in Gross Value Added, primarily due to the operation of lignite fields and electricity production units in the Megalopolis area.

The Municipality of Megalopolis, which belongs to the Regional Unit of Arcadia, has a permanent population of 8784 inhabitants, while approximately 60% of the population resides in the city of Megalopolis. Based on historical data, the majority of the population of Megalopolis, before the operation of lignite units in the area in the late 1960s, was involved in the primary sector. With the start of the construction and mainly the operation of lignite units, the percentage of those employed in the primary sector began to decrease. During the period 1991–2014, when all four lignite units were in operation, the highest percentage of the economically active population was employed in the Public Power Corporation, and therefore, the local economy of the municipality was highly dependent on the operation of the lignite units. According to the most recent available data for the period 2011–2021, the demographic development of the Municipality of Megalopolis is considered particularly worrying. The population decline observed is due to the cessation of operation of the lignite units, which began in 2014, as well as to the low birth rate and aging of the population, a phenomenon observed on a national scale. Nowadays, 40.29% of the municipality’s population is employed in the tertiary sector, 35.82% in the secondary sector, and 6.80% in the primary sector, while the unemployment rate is 17.08%.

3.2. Technical Project Evaluation

3.2.1. Activity Details

The proposed activities and uses of the MCEC, presented in Figure 3, are as follows: (a) Trade fairs and Conferences, (b) Cultural and Entertainment Activities, (c) Business and Commercial Centers, (d) Tourist Activities and Infrastructure, and (e) Enhancing Competitiveness of the Primary Sector—Education.

In particular, the Exhibition area, totaling 12,500 sq.m., will include a covered exhibition area of 6000 sq.m., an outdoor exhibition area of 5000 sq.m., while there will also be the possibility of using a covered area, where periodical exhibitions will be hosted, with an area of 1500 sq.m. The Conference Center will include a main conference hall of 300 sq.m., a total area of smaller conference rooms of 210 sq.m. and additional spaces required to host conferences. The four-star hotel unit will have a capacity of 120 beds/60 rooms.

In the context of cultural and recreational activities, the following are planned: (a) the creation of a covered exhibition space of 1500 sq.m. for the organization of periodical exhibitions on specific topics, (b) the creation of a Museum of Technology and Energy, and (c) the use of the open-air exhibition space, with an area of 5000 sq.m.

In the Business Center, the installation of a 20-job business incubator—part of which can be used to serve the needs of digital nomads—and office spaces for the establishment of businesses, with a total capacity of 30 employees, is planned. In the Shopping Center it is planned to install six (6) retail stores selling local products, which will operate throughout the year and regardless of the event that takes place at the MCEC. This estimation was based on data from existing businesses, the demand that will arise in the area for the establishment of new businesses due to the economic incentives that will be provided as a result of the lignite phase-out, as well as on P.D. 41/2018 (Government Gazette 80 A/2018) which refers to the surface area per person in office spaces.

Regarding the activities that will be hosted at the MCEC and will contribute to the strengthening of the primary sector of the wider region, it is stated that in the conference areas of the MCEC, there is the possibility of holding events that focus on training and informing farmers. The creation of an agricultural products auction house is also planned.

3.2.2. Alternative Locations

The required area for the MCEC is estimated to be 31,000 sq.m, of which (a) 10,000 sq.m. are for the outdoor exhibition area and the outdoor parking area, and (b) 4200 sq.m. for the parking areas, sports fields, supporting areas and the swimming pool of the hotel unit. The total roofed (built) area is estimated at 16,800 sq.m., while the coverage is estimated at 14,500 sq.m. (considering that the hotel unit consists of a ground floor and a 1st floor).

Five alternative locations within the Municipality of Megalopolis were studied (according to data from the Municipality of Megalopolis and the Peloponnese Region), as shown in Figure 4.

During the initial screening, one of the five sites (L.5—location 5) was excluded from the evaluation process due to many private properties, which is expected to create major obstacles to the development of MCEC investment. The remaining four locations were qualitatively assessed through a criteria assessment matrix created for this purpose (

Table 2. Evaluation Criteria.

Code	Evaluation Criteria
C.1	Satisfactory distance from the city center
C.2	Satisfactory distance from Motorway A7
C.3	No traffic congestion within the city
C.4	No restrictions due to distance from archaeological sites, traditional settlements, natural beauty areas, national parks, habitats, etc.
C.5	Favorable property status
C.6	Suitable Institutional Land Uses
C.7	Sufficient area for investment development
C.8	Provision of necessary services and infrastructure (Government Gazette 23908-01/02/1991)
C.9	The development of the Special Spatial Plan for Regional Growth does not conflict with other planned projects
Average Score of Alternatives Locations

). In particular, the evaluation matrix consists of nine (9) criteria of equal weight, using a numerical grading scale from 1 to 3, according to which the criterion under consideration receives the following values: (a) value 1 in case it is not met, (b) value 2 in case it is partially fulfilled and (c) value 3 in case it is fully fulfilled. The location that collects the highest average score is the selected one for the placement of the MCEC. The selected location is “location 4”, covering 33,000 sq.m. However, it should be noted that the score in criteria C.2, C.3, and C.9 is variable because it is directly related to the current situation.

3.3. Institutional Project Evaluation

In line with presenting a model for the management entity of MCEC towards urban governance—maximizing the participation of stakeholders from both the public and private sectors—four distinct management models were examined and summarized as follows:

• Establishment by law of a private legal entity entrusted with the responsibility of managing MCEC;
• Management undertaken by the national exhibition and conference organizer (TIF-HELEXPO S.A.) or one of its subsidiaries;
• Assignment of MCEC management to an existing private legal entity;
• Direct management by the Municipality of Megalopolis or the Region of Peloponnese, as applicable.

For the purposes of this study, it was assumed that the project falls under the jurisdiction of local government organizations (either at the municipal or regional level). Subsequently, the potential methods for the development/exploitation of the project for its construction—and, as applicable, maintenance and operation—were presented and analyzed in the following five approaches: Public-Private Partnership (PPP), concession agreement, public works contract, long-term lease, and the establishment of a surface right. It was noted that the chosen development method might also dictate the management model, thereby necessitating careful selection of the contractual method to achieve the desired management model for MCEC.

Finally, depending on the management method ultimately selected and given the unique nature of the broader area of the Municipality of Megalopolis as a lignite phase-out zone, the possibility of seeking partial or full funding for the investment from relevant programs (e.g., Just Transition Mechanism, National Strategic Reference Framework, Green Fund, etc.) should not be excluded.

3.4. Financial Project Evaluation

3.4.1. Business Plan

In a previous section, the possible forms of the management body and possible forms of the share capital were mentioned. Given that, at the present time, the organization for the management and construction of the MCEC has not been determined, we believe that the initiative to develop the MCEC will be undertaken by the Implementation and Operation Agency of the Center, which will be a Legal Entity of Public Law and will receive the characteristics of a legal entity with the form of an anonymous company of Law 4548/2018 (A′ 104).

As far as the operation is concerned, the organization of the exhibition events, conferences, thematic exhibitions, and the utilization of the auxiliary spaces will be assigned to specialized companies by the MCEC Management Body for a fee. The museum and the incubator will operate under the supervision of the MCEC operating body. The offices, the shops, and the agricultural products auction house will be granted at a monthly rent per sq.m. surface. The development evolution of the operation is based on specific (reasonable) assumptions, as shown in

Table 3. Development assumptions and forecasts.

	Assumptions and Forecasts
Conference Center	First year: 3 conferences; Gradual increase to 12 conferences by the 10th year, remaining stable thereafter; Average duration: 2 days per conference.
Exhibition Center	First year: 1 exhibition; Gradual increase to 8 exhibitions by the 10th year, remaining stable thereafter; Average duration: 4 days for the event and 4 days for preparation and dismantling.
Outdoor Space	First year: 1 event; Gradual increase to 5 events by the 10th year, remaining stable thereafter; Average duration: 3 days per event, with 2 days for preparation and dismantling.
Thematic Exhibitions	Average duration: 3 months (90 days); Preparation and dismantling time: 1 month (30 days).
Museum	First year: 1000 visitors; Annual increase of 10% until the 10th year, then stable.
Incubators	First year: 2 positions rented; Gradual increase to 20 positions by the 10th year.
Business Center	First year: 1 office rented; Gradual increase to 5 offices by the fifth year.
Commercial Center	First year: 2 shops rented; Gradual increase to 6 shops by the fifth year.

.

3.4.2. Budget and Project Implementation Schedule

Considering the technical specifications of the infrastructure planned to house MCEC activities, as well as the absence of detailed design and costing, the construction cost estimate is based on the individual surface areas of the infrastructures and the unit cost prices prevailing in the market for such constructions. Accordingly, based on the above, the preliminary budget for MCEC is presented in

Table 4. Preliminary Budget.

Infrastructure	Area (m2)	Unit Cost (€/m2)	Cost (€)
Conference Center	2575.00	2500.00	6,437,500.00
Exhibition Center
Covered Space	6000.00	1600.00	9,600,000.00
Outdoor Space	5000.00	200.00	1,000,000.00
Culture and Recreation Center
Thematic Parks	1500.00	1600.00	2,400,000.00
Museum	695.00	2500.00	1,737,500.00
Business and Commercial Center	1125.00	1200.00	1,350,000.00
Auction House	375.00	1000.00	375,000.00
Outdoor Parking Area	5000.00	80.00	400,000.00
Landscaping	10,000.00	60.00	600,000.00
Subtotal 1			23,900,000.00
Studies and Project Management			1,195,000.00
Subtotal 2			25,095,000.00
Contingencies (10%)			2,509,500.00
Total			27,604,500.00

. At this point, it should be noted that the cost data mentioned in the table below come from the local market during the period when the research was conducted, namely in April 2024. Therefore, this cost may have changed.

This preliminary budget provides an estimated cost for the MCEC project, covering all major infrastructure elements and associated expenses. Note that VAT is not included in this budget. The above table does not include the tourist infrastructure (4-star hotel with 120 beds) mentioned in the technical evaluation. According to the business plan, the hotel unit will be implemented at a later time by a private investor, with the land being leased from MCEC through a long-term lease agreement. The final budget of the project is expected to be reduced by the discount offered by the final contractor, according to common project tendering practices.

The estimated time required to start operations of MCEC is 4 years, as shown in

Table 5. Implementation Schedule of the Investment.

		Implementation
Years		1		2		3		4
Semesters		1	2	1	2	1	2	1	2
1	Studies
2	Licensing
3	Tendering
4	Construction
5	Start of operation								●

, broken down as follows:

• Study Preparation: Duration of 12 months;
• MCEC Licensing: After the completion of the studies, with a duration of 6 months;
• Tendering Procedures: After MCEC licensing, with a duration of 6 months;
• Construction of MCEC: Following the completion of the tendering process, with a duration of 24 months.

3.4.3. Sources of Funding and Financial Analysis

Regarding the sources of funding, the development of the MCEC can be financed from these sources:

(a)

Equity capital to be contributed by the shareholders of the implementing and operating entity of the MCEC;

(b)

Inclusion in a subsidy program;

(c)

Bank loans (from commercial banks);

(d)

A combination of the above.

Based on the above, two financing schemes are formed. The first financing scheme [FS-1] presented in

Table 6. Financing Scheme 1 [FS-1] of the MCEC investment with subsidy.

Source of Funds	Financing Scheme
Equity Capital	25%
Debt Capital	25%
Public Subsidy	50%
Total	100%

includes (a) equity, (b) debt capital, and (c) subsidies, provided that the project is eligible and can be financed (subsidized) by the appropriate programs, e.g., National Strategic Reference Framework. At present, since the shareholding structure of the implementing entity is not known for the formation of the financing scheme, it is assumed that the entity will belong to large enterprises, which is the most disadvantageous scenario in terms of the subsidy amount. The second financing scheme [FS-2], presented in

Table 7. Financing Scheme 2 [FS-2] of the MCEC investment without subsidy.

Source of Funds	Financing Scheme
Equity Capital	50%
Debt Capital	50%
Public Subsidy	0%
Total	100%

, includes (a) equity and (b) debt capital. The second financing scheme is advisable to be examined and the investment evaluated in the case where no subsidy is received.

Based on the results of the financial analysis, it appears that the investment is viable and profitable in all cases (variations of key economic sustainability parameters) of FS-1. In the case of FS-2, the investment shows economic instability and is marginally acceptable in scenarios where the budget is reduced (by 20% and 30%) in the base scenario. It is clear that the best return on investment is achieved in the FS-1, where 50% of the investment amount is subsidized by public funds.

To verify the feasibility of the MCEC, detailed financial projections have been conducted. The project is expected to generate an annual revenue of €3 million by the fifth year of operation, with a break-even point projected in the third year. Employment forecasts indicate the creation of 500 direct jobs and 1000 indirect jobs over a 10-year period. These figures are based on market analysis and comparable projects in similar regions.

More specifically, in the FS-1, the investment is particularly profitable and demonstrates economic stability in all variations of the key economic sustainability parameters that were examined. In cases of budget reduction due to discounts during the contracting of construction work, the investment proves to be especially profitable and resilient to extreme changes in the sustainability parameters that were considered. It is evident that the viability of the investment is directly dependent on the level of subsidy that can be achieved. A possible increase in the subsidy (greater than 50%) would reduce bank loans and business risk while ensuring the sustainability of the investment.

In the second financing scenario [FS-2], the investment demonstrates stability in cases where the investment cost is reduced by 20% and 30%. However, the investment is particularly unstable and unacceptable in cases of revenue reduction and in scenarios where there is a simultaneous reduction in revenue and an increase in the investment cost.

Critical parameters for the sustainability of the investment include the investment amount, the financing scheme, particularly the coverage of part of the investment with subsidies, and the fluctuations in the revenue of the Center (MCEC). Regarding revenue, a significant factor for the sustainability of the investment is the amount of revenue from the activities of the Exhibition Center, as these constitute approximately 90% of the total revenue of MCEC. Therefore, the number of exhibitions and, consequently, the occupancy rate of the Exhibition Space are crucial factors.

3.5. Commercial, Social, and Environmental Project Evaluation

3.5.1. P.E.S.T.E.L. Analysis

The P.E.S.T.E.L. analysis provides a comprehensive overview of the external factors that can influence the development and success of the MCEC project, highlighting the importance of strategic planning and risk management. The acronym P.E.S.T.E.L. stands for Political, Economic, Social, Technological, Environmental, and Legal. It refers to the different “environments” in which the MCEC project is expected to operate. These various “environments” are considered equally important, as each plays a crucial role in the effective functioning of the project. P.E.S.T.E.L. analysis helps assess the impact of each factor on the organization and its operations. Additionally, it supports the forecasting of future strategies and the creation of scenarios when used alongside other tools [16].

Table A1. P.E.S.T.E.L. analysis.

Political	Economic
European Green Deal, a new developmental strategy of the EU that directly affects the area of Megalopolis due to the coal phase-out and, indirectly, the organization of international conferences and exhibitions due to the policy-shaping of transportation prices; Fair Transition Fund, which, through the Fair Transition Programme, provides the necessary means to address the social, labor, economic, and environmental impacts; Political stability at the level of first and second-degree municipalities.	Gross Domestic Product (GDP) GDP of the Regional Unit of Arcadia: (a) €1.505 billion, representing 18.6% of the Peloponnese Region’s GDP; (b) during the period 2000 to 2019, it exhibited significant fluctuations/changes and showed a positive average annual change of approximately +1.6%. Per capita Gross Domestic Product (GDP) Per capita GDP of the Regional Unit of Arcadia: €19,040 (higher than the per capita GDP at the Regional and National levels); The Regional Unit of Arcadia consistently presents the highest per capita GDP among all Regional Units; The average annual growth rate of the per capita GDP of the Regional Unit of Arcadia during the period 2000 to 2019 was +2.2%. Gross Value Added (GVA) The participation of the Regional Unit of Arcadia in the total gross value added of the Peloponnese Region is 18.6%, and in the country, it is 0.84%; The GVA of the Regional Unit of Arcadia: (a) During the period 2000–2008, it showed a percentage increase of +43.7%; (b) During the period 2008–2014, it experienced a decrease of −12.5%; (c) During the period 2014–2019, it recorded an increase of +5.4%.
Social	Technological
Population: − The population of the Municipality of Megalopolis amounts to 8784 residents, of which 60.84% are concentrated in the city of Megalopolis. Its population density is 12 inhabitants per square kilometer (sparsely populated municipality), and its population trend is deemed particularly concerning; − The population of the Peloponnese Region is older compared to the country’s population. Additionally, 50.1% are males and 49.9% are females. Employment: − The economically active population of the Municipality of Megalopolis represents 34.95%. The majority of the economically active population is employed in the secondary and tertiary sectors, while the percentage of those employed in the primary sector is significantly lower; − At the regional level, the percentage of those employed in the primary sector, compared to the country’s total, is high. Unemployment: − The unemployed population of the Municipality of Megalopolis represented 9.9% and 17.08% of the total economically active population in 2001 and 2011, respectively; − In the Regional Unit of Arcadia, to which the Municipality of Megalopolis belongs, high unemployment rates are observed; − In the Peloponnese Region, in 2014, amid the economic crisis, unemployment rose to 23.4% from 9.6% in 2010, gradually decreasing to 11.3% in 2020 and returning to 2009 levels in 2021. Regarding long-term unemployment, it is reported that during the period 2010–2021, it remained at high levels, reaching 8.1% in 2021 in the Peloponnese Region. Education − The educational attainment level in the Municipality of Megalopolis, the Regional Unit of Arcadia, and the Peloponnese Region is lower than the national average; − The percentage of the population in the region with educational attainment: (a) Up to graduates of lower secondary education and vocational schools is 63%; (b) graduates of upper secondary education and above is 37%, of which graduates of upper secondary education constitute 22%.	It is characterized as constantly changing due to the rapid pace at which new technologies are evolving; A high percentage of the population accepts new technologies and is familiar with the use of modern technological tools; Hosting events in a hybrid manner, where participants have the option to either attend physically or access the digital world in interactive events such as exhibitions (2D and 3D booths) and social networking meetings; Technological advancements and the improvement/upgrading of infrastructure are affecting the job market, and it is estimated that in the coming years, the percentage of the economically active population on a global scale working remotely and away from their workplace (digital nomads) will increase; The high percentages of the population now having access to the internet and using social networks, combined with the use of modern tools, create favorable conditions for advertising and promoting events, contributing to attracting a large number of participants.
Environmental	Legal
Sustainable Development Goals (SDGs) of the United Nations − New perception regarding the role of companies: The ability of companies to create value and to shape effective long-term strategies is reflected through indicators that record performances in environmental, social, and corporate governance issues (ESG indicators). Climate Change − Expected to affect the climatic conditions prevailing in our country, it constitutes one of the most significant environmental issues, which affects the organization of events because climatic conditions are a key criterion for selecting a destination. Waste Management	Possible management models: Establishment by law of a legal entity under private law tasked with the management of the MCEC; Assignment of management to TIF-HELEXPO S.A. or its subsidiary; Assignment of the management of MCEC to an existing legal entity under private law; The direct management by the Municipality of Megalopolis or the Region of Peloponnese on a case-by-case basis. Available methods for the development and utilization of real estate: Public-Private Partnership (PPP) Law 3389/2005; Concession Agreement Law 4413/2016; Public Works Contract Law 4412/2016; Long-term Lease. The design of the MCEC is influenced by a set of legislative acts: Ministerial Decision No. 23908-01/02/1991 (Government Gazette 208 B); Decision of the Minister of Development Τ/4486-03/12/99 (Government Gazette 2202 B); Decision of the Minister of Development Τ/2738-27/04/01 (Government Gazette 530 B); Ministerial Decision Τ7681/03 (Government Gazette 1040 B) Ministerial Decision 11280-19/09/2006 (Government Gazette 1444 B); Law No. 4512/2018, Part B′, Sections B′, articles 112–117 (Government Gazette 5/A′ 17.1.2018); Ministerial Decision 216/2015 (Government Gazette 10/B/9-1-2015); Ministerial Decision 1306/294 A1/2018 (Government Gazette 770B); Ref. ΥΠΕΝ/ΔΜΕAAΠ/124964/1561/2022 (Government Gazette 6213B); Legislation concerning accessibility: (a) Article 26 of Law No. 4067/2012 (Government Gazette 79A), as amended and in force, concerns accessibility without obstacles for people with disabilities and obstructed individuals, referring to the document titled “Designing for All, Design Guidelines” prepared by the Ministry of Environment, Physical Planning, and Public Works, Office of Studies for Persons with Disabilities, and (b) Ministerial Decision ref. ΥΠΕΝ/ΔΕΣΕΔΠ/65826/699 (Government Gazette 2998B).

in Appendix A presents in detail the results of the P.E.S.T.E.L. analysis.

3.5.2. S.W.O.T. Analysis

The S.W.O.T. (Strengths, Weaknesses, Opportunities, Threats) analysis examines the Strengths and Weaknesses of the internal environment of the MCEC project, as well as the Opportunities and Threats arising from the external environment. The goal of a S.W.O.T. analysis is to leverage an organization’s understanding of its internal and external environments to inform and shape its strategic planning [17]. In our case, the S.W.O.T. analysis is used in conjunction with the P.E.S.T.E.L. analysis.

The basic usage and activity of the MCEC are proposed to focus on organizing international trade fairs and conferences. Therefore, it is considered advisable to conduct the S.W.O.T. analysis in two phases. In the first phase, the international competition in the exhibition and conference organization sector will be examined, emphasizing the strengths, weaknesses, opportunities, and threats at the national level (

Table A2. S.W.O.T. analysis “International competition—organization of exhibitions and conferences”.

Strengths	Weaknesses
Greece is a popular tourist destination. Its history and culture, along with the uniqueness of historical monuments and cities. The climatic conditions. The strong tourism tradition and hospitality. The availability of human resources with knowledge of foreign languages. The abundance of natural and cultural tourist attractions. Improvement of transportation infrastructure.	A small percentage in the global conference market. Lack of a clear and defined institutional framework. Absence of conference or exhibition facilities on a smaller scale in smaller urban centers. Lack of specialized personnel. Large geographical distance from other European countries.
Opportunities	Threats
Development of the existing urban and interurban transportation network to improve accessibility. Enhancement of the attractiveness of cities and tourist areas. Integration of new technologies into conference tourism infrastructure. Collaboration among industry companies to host large conferences. Increase of the MICE tourism product and action plans for its development.	Uncertainties and problems in politics and the market in general. Increase in tax rates. Emerging new destinations. Competition from low-cost countries. Climate change.

, Appendix A). In the second phase, emphasis will be given to the MCEC and the activities it is expected to host (

Table A3. S.W.O.T. analysis “ Organizing exhibitions and conferences”.

Strengths	Weaknesses
The central location of Megalopolis in the Peloponnese, as well as the central position of the Peloponnese in the Mediterranean Basin, offers a significant comparative advantage for the development of exhibition and conference activities, utilizing it as an inland area for such activities within Mediterranean countries. Additionally, the presence of the international airport of Kalamata, as well as the maritime connection of Patras with Italy, provides easy and fast accessibility to the region on an international level. According to all the above, the development of exhibition and conference activities in the region could establish the Peloponnese as a significant regional exhibition and conference hub in Greece, after Athens and Thessaloniki. Proximity to Athens and other major urban centers, such as Kalamata, etc. Significant cultural resources. Organization of Peloponissos EXPO on an annual basis. In the neighboring cities (Tripoli, Sparta, and Kalamata), six (out of nine) schools of the University of the Peloponnese operate. It is noted that the remaining schools are located in Nafplio, Corinth, and Patras. Participation of TIF HELEXPO in the initiative for the development of MCEC.	Uncertain participation of other entities in the management and support of the operation of MCEC. Both the Kalamata Airport and the port of Kalamata require upgrading. The significant increase in international arrivals at Kalamata Airport over the last decade appears to have exhausted the capacity to serve the volume of flights and passengers. The port of Kalamata, the largest in the Peloponnese Region, has been designated as a port of national significance and belongs to the extensive network of the Trans-European Transport Network (TEN-T). Although it occupies a pivotal position geographically, it is not utilized for maritime connection and has low commercial and tourist activity (including cruises).
Opportunities	Threats
Lack of space for organizing exhibitions in the Peloponnese. The MICE sector in the Southern Peloponnese is characterized as a tourist product with the potential for development/promotion into an established/specific developed product. Development of projects in the adjacent area, such as the construction of a paleontological museum, upgrading motocross tracks, etc., expected to indirectly contribute to the MCEC.	Presence of spaces, mainly in hotels, where conferences with a larger number of attendees can be hosted. Aging population. Establishment of an exhibition center within the influence zone of MCEC. The University of Peloponnese has a conference center located in the area of Koukouli, Patras. New pandemic, political, and economic crises.

, Appendix A). Additionally, a S.W.O.T. analysis was conducted for “other activities” (

Table A4. S.W.O.T. analysis “ Other activities”.

Strengths	Weaknesses
The Municipality of Megalopolis occupies a pivotal geographic position. Provision of high-level hotel services. Lack of 4 stars and 5 stars hotel units in the wider area. Due to infrastructure shortages in the broader region of Arcadia, the operation of hotel units does not heavily depend on the overall functioning of the MCEC. The hotel unit within the MCEC will be the first choice for MCEC visitors. Existence of local products, many of which already have a strong brand name. Opportunity for the promotion of local products throughout the year. Workspaces with modern facilities. Coexistence of businesses and development of partnerships. Absence of an agricultural products auction in the region.	Lack of specialized personnel. The reputation and recognizability of the hotel unit depend, to some extent, on the overall performance of the MCEC. The hotel may experience seasonality similar to the MCEC. Low demand for office space rental (current phase). Lack of experience in managing and operating auctions by the responsible authorities. The commercial center has low dynamics and is not expected to attract customers as a separate entity from the MCEC. Therefore, the successful operation of the stores (total of six), as well as the achievement of their goal (promotion and marketing of local products), depends on the events organized at the MCEC.
Opportunities	Threats
Existence of low-ranking hotel units in the wider area. Increased demand for tourist accommodations and hotels in the region throughout the year. Existence of stores selling local traditional products of local character. New National Strategic Reference Framework with 70% subsidy for the establishment of new businesses and the support of existing ones in Megalopolis and Western Macedonia as part of the coal phase-out. Lack of office space in the Megalopolis area. Increased demand for the establishment of businesses in industrial zones, as evidenced by relevant projects. Developed agricultural sector in the wider area.	Competition from existing similar hotel units, mainly in the regional unit of Messinia. The successful operation of local product sales outlets depends largely on the number of events organized at the MCEC and their distribution throughout the year. Higher availability of office space in neighboring areas such as Tripoli. The creation of five (5) innovation and entrepreneurship support structures is planned to enhance knowledge intensity in the Peloponnese Region. It is noted that the central structure will be located in Tripoli, while the remaining 4—peripheral structures—in Nafplio, Kalamata, Corinth, and Sparta. Low employment rate in the primary sector in the area of Megalopolis.

, Appendix A), which will be hosted at the MCEC and do not involve the organization of exhibitions and conferences, namely: (a) cultural and entertainment activities, (b) business and trade center, (c) tourism activities, and (d) activities to enhance the competitiveness of the primary sector and education.

Finally, it should be noted that solutions to these weaknesses include diversifying the local economy through the introduction of renewable energy projects, promoting tourism, and encouraging small business development. The impact of these weaknesses on the MCEC project could be mitigated by leveraging local strengths such as cultural heritage and strategic location to attract investment and create new job opportunities.

3.5.3. Stakeholders Information Session—Consultation

As part of the promotion-consultation planning, an informational event was held on 13 June 2023, at the Municipality Hall of Megalopolis with the purpose of informing local stakeholders and the community about the project “Feasibility Study for the Establishment of the Mediterranean Center for Entrepreneurship and Culture of the Peloponnese (MCEC)”.

The following entities were invited to the information session: Region of the Peloponnese, Municipality of Megalopolis, Municipality of Gortynia, Municipality of Tripoli, Municipality of Oichalia, Special Service for Just Transition Development, Metavasi S.A., Chamber of Arcadia, Development Agency of Northern Peloponnese (ANVOPE S.A.), Development Company of Parnonas S.A., Anonymous Development Company OTA “PELOPONNESE S.A.”, University of the Peloponnese, and the Holy Metropolis of Gortynia and Megalopolis. Additionally, the Municipality of Megalopolis published the invitation on social media to inform citizens about the event, in which every interested party had the opportunity to participate. Representatives from the majority of the invited entities, as well as citizens of the Municipality of Megalopolis, participated. The event proceeded according to the program, and after the presentations, a discussion developed among the participants.

The main conclusion drawn from the discussion is that the MCEC is recognized by local authorities and the local community as a major development project for the region, which will contribute both to strengthening the local economy through the creation of direct and indirect job opportunities and to emerging opportunities for enhancing the region’s brand name through the creation of an international conference and exhibition destination.

3.5.4. Estimation of the Impact of the MCEC Establishment

From the P.E.S.T.E.L. analysis, the S.W.O.T. analysis, and the informational event, certain interesting conclusions emerged regarding the project’s impact on economic, social, and environmental levels. Taking into account the results and conclusions of the above analyses and consultation, emphasis is placed on the impact of the MCEC on the region of Megalopolis, specifically in the employment sector. The MCEC consists of a range of activities/utilizations, with its primary use and activity being the organization of international trade fairs and conferences. Organizing exhibitions and conferences in the area will create multiple and multi-level impacts on the economic as well as the social level. It is emphasized that the multiplier benefits generated by the exhibition and conference activity in the hosting area are very significant.

During the construction phase and subsequent operation of the MCEC, new direct and indirect job positions are expected to be created, potentially employing a portion of the population of the Municipality of Megalopolis. The creation of employment during the implementation of the MCEC is a measurable quantity and is estimated based on the indicators and methodology used to assess the employment of projects funded by the National Strategic Reference Framework [18] and analogous ones. Based on the project budget and expenditure category, the direct equivalent annual employment positions expected to be created are estimated at 296, most of which will come from the local labor market (both skilled and unskilled personnel). In the case that the hotel unit is also developed, then the employment positions from the construction of the center amount to 424.

During the operation of the MCEC, the implementing and operational body will be staffed with suitable personnel to meet the functional and administrative needs of the Center. The recruitment of staff, whose number and specialties are determined by the organization chart of the body, will be required. According to initial estimates, nine (9) individuals of appropriate specialties are expected to be recruited. Additionally, it is estimated that approximately ten (10) indirect positions will be created for the provision of various outsourcing services (technical advisors, accountants, certified auditors, lawyers, etc.). Furthermore, the operation of the MCEC will generate employment opportunities through the organization of Exhibitions, Conferences, and Events, estimated at 2000 positions over the 20-year operational period.

Concurrently with the operation of the MCEC, an increase in the visitation of the Municipality of Megalopolis is anticipated, directly strengthening the local economy and creating new needs and, by extension, new business opportunities. The operation of the business incubator within the MCEC creates a favorable and supportive environment for the development of new and innovative business ideas, thereby contributing to the enhancement of entrepreneurship in the area. The MCEC is expected to generate significant economic impacts by creating direct and indirect employment opportunities, boosting local businesses, and attracting investments. Socially, it will enhance the quality of life by providing a venue for cultural and educational events. Environmentally, the project will promote sustainable practices and reduce the carbon footprint of the region through the use of renewable energy and green building standards. Hosting activities/utilizations in the MCEC aimed at supporting the primary sector of the region, such as organizing educational seminars and establishing an auction house, contributes to the increase in employment in the primary sector and thus reinforces the region’s effort to return to its original character before the operation of the lignite units in the area. The commercial center, especially the operation of stores selling local products, contributes to the promotion of local products to a wider audience and simultaneously strengthens the primary sector of the area. Additionally, more job positions are expected to be created due to the hotel unit. Finally, it is noted that the organization of thematic parks based on themes derived from local history and uniqueness, as well as the creation of the Museum of Technology and Energy, showcasing exhibits related to the evolution of energy sources from ancient times to the present day, strengthen the tourist development of the area.

Additionally, regarding the above, it is mentioned that due to its supralocal nature, the MCEC will have positive effects on the wider area of Megalopolis. Specifically, the development of exhibition and conference activities will enhance the regional economy of the Peloponnese in sectors that have comparative advantages, such as the food industry (production of internationally renowned products such as olive oil and wine) and tourism (international tourist attractions such as Ancient Olympia, Sparta, Tripoli, Gortynia, Kalamata, Nafplio, Corinth, etc.). The aim is to recognize Megalopolis and the Peloponnese in general as a significant exhibition and conference hub in Greece.

Finally, regarding the choice of locating the MCEC in the Megalopolis area, it is emphasized that Megalopolis’s central position in the Peloponnese, as well as the central position of the Peloponnese in the Mediterranean Basin, are crucial. This position offers a significant comparative advantage for the development of exhibition and conference activities, utilizing it as an inland region for these activities in Mediterranean countries. Additionally, the presence of the international airport of Kalamata and the ferry connection of Patra with Italy provides easy and fast accessibility to the region on an international level.

4. Discussion

The creation of the Mediterranean Center for Entrepreneurship and Culture in the Peloponnese stands as a notable developmental initiative in the Megalopolis region, which is presently contending with the consequences of lignite phase-out. The conceptualization, construction, and subsequent operation of MCEC, guided by principles of sustainable and economically viable planning, are poised to yield manifold advantages across the broader region. Predominantly, these benefits are anticipated to manifest in the augmentation of employment opportunities, bolstering of local enterprises, and facilitation of socio-cultural advancement among the local population.

Overall, the establishment of the MCEC constitutes a significant development project for the region of Megalopolis, which is affected by the consequences of delignification. The impact of the MCEC on the local economy through the creation of new direct and indirect job positions and the promotion of entrepreneurship will be significant. This will contribute to addressing the emerging effects of the transition to the post-lignite era.

In summary, the establishment of MCEC indirectly and directly contributes to positive socio-economic impacts on entrepreneurial activity, the regional and national economy, and the residents of the broader area of the Municipality of Megalopolis. The positive impacts mainly stem from the following:

• Strengthening employment and local economy;
• Boosting entrepreneurship in the Municipality of Megalopolis, in the Regional Unit of Arcadia, and more broadly in the Peloponnese Region;
• Creating Positive Economies of Scale/Cluster Development, etc;
• Promoting products and services;
• Fostering new collaborations;
• Enhancing the network of business contacts;
• Significantly reducing the cost of operation and establishment for businesses (business and commercial center);
• Establishing a developed network of clients and suppliers;
• Constructing significant European-standard infrastructures, contributing to increased added value to the local economy;
• Improving the quality of life for residents in surrounding areas;
• Promoting green development: during the development of the MCEC, bioclimatic design principles and proper environmental waste management will be taken into account. Additionally, the project as a whole is estimated to contribute to the reduction of the “emissions per employee” index at a local level.
• Fostering cultural and scientific activities.

5. Conclusions

In conclusion, the establishment of the Mediterranean Center for Entrepreneurship and Culture (MCEC) in Megalopolis emerges as a pivotal step towards sustainable regional development amidst Greece’s transition away from lignite dependence. Through strategic planning and comprehensive analysis, the MCEC is poised to generate significant socio-economic benefits, including job creation, entrepreneurship promotion, and cultural enrichment. By fostering resilience and prosperity in the Megalopolis region, the MCEC represents a tangible solution to mitigate the adverse effects of lignite phase-out while embracing a low-carbon future. As Greece navigates its energy transition journey, initiatives like the MCEC exemplify the potential for innovative interventions to drive positive change and create thriving, resilient communities.

The key contributions of this work include providing a comprehensive framework for economic diversification in a post-lignite economy, demonstrating the feasibility of integrating renewable energy sources in large-scale infrastructure projects and highlighting the potential socio-economic benefits of multi-purpose centers. The MCEC serves as a model for other regions undergoing similar transitions.

In summary, the MCEC represents an innovative approach to regional development, combining cultural, economic, and environmental strategies to create a resilient and sustainable community. This project showcases how strategic planning and the integration of renewable energies can drive positive change in areas affected by industrial decline.