From wind and solar power to fossil fuels, Greece is very quickly developing an energy industry. In just a few short years, Greece has become an exporter of electricity and a re-exporter of natural gas, even as two of the world’s energy giants – Chevron and ExxonMobil – search for possible hydrocarbons in Greek waters.
But for Greece to fully realize its ambitions as a regional energy hub, it will also have to step up investments in its energy infrastructure and further develop its energy policies. Because it is not enough to have sunny skies and a hydrocarbon-rich seabed. Greece must now build the powerlines and pipelines – as well as the regulatory framework – to bring its energy resources to markets in the rest of Europe and the world.
The scope is vast. Under the recently revised National Energy and Climate Plan, Greece is aiming to be carbon-neutral and energy independent by 2050, in-line with its European commitments. Between now and then, there are a series of milestones the country would like to achieve, including having RES cover more than 95% of power generation as soon as 2035, and adopting future technologies like hydrogen fuels, industrial-scale batteries and carbon storage facilities. The NECP reckons that 436 billion euros in public and private investment – almost twice Greece’s annual GDP – will be required for the energy transition by 2050.
The pay-off will also be huge. Successful implementation of the NECP will contribute €6 billion annually to gross value added, boost GDP by 2.5%, and create 210,000 new jobs each year from 2025 through the middle of the century.
To be sure, some things are already happening. Greece’s national grid operator, ADMIE, is building out high-voltage connections to our neighbors in Southeast Europe, and a new high-voltage power line is being laid between Crete and the mainland. Also, surveying work has begun for a future Greece-Cyprus power cable.
But to hit the lofty targets set out in the NECP, more will need to be done. Already the grid is unable to absorb the full amount of RES-generated energy at all times, resulting in curtailments. In the north of the country, a second LNG facility, run by Gastrade, has begun operating just as Greece’s main facility in Revithoussa has hit capacity. A policy on hydrogen is only just being formulated now, and there appears to be very little new to report about geothermal. Electricity producers also complain that power planning by Greek authorities has been less than optimal and led to imbalances in the market.
Producers, investors and policy makers will have the opportunity to discuss the current state of the Greek energy sector at the 8th InvestGR Forum, coming up in July, and what is needed to build successfully on the gains already made. So far, Greece is off to a very good start, but challenges still remain.
* Andreas Yannopoulos is founder of Public Affairs & Networks, which organizes the annual InvestGR Forum.