Foreign investment groups expressed their strong interest in Greece’s Offshore Wind Farms (OWF) during the event organized by the Hellenic Hydrocarbons and Energy Resources Management Company (HEREMA), in the context of this year's 29th Conference of the Parties (COP29), hosted in Baku, Azerbaijan between 11 and 22 November.

The event took place on 14 November at the Greek Pavilion of COP29 and started with a fireside chat between Greece’s Deputy Minister of Environment and Energy, Alexandra Sdoukou, Belgium’s Minister of Energy, Tinne Van der Straeten, and CEO of WindEurope Giles Dickson, which was moderated by the Chairman of the HEREMA BoD, Rikard Scoufias.

Ms. Sdoukou referred to the Greek State’s next steps regarding the implementation of National Offshore Wind Farm (OWF) Development Programme, setting as priorities the signing of the relevant Joint Ministerial Decision that will finalize the Organized Areas Development (OWFODA); engaging with local communities; and collecting necessary data from the upcoming wind and bathymetric surveys.

Ms. Van der Straeten highlighted the importance of offshore wind for Belgium, a country with a strong industry but lacking domestic energy resources. The minister explained that despite Belgium's small coastline, her country has already succeeded in developing offshore wind farms with a capacity of 2.2GW, ranking second globally in terms of wind capacity per capita.

The event’s second panel, moderated by the CEO of HEREMA Aristofanis Stefatos, comprised members of the investment community, who confirmed their interest in the Greek market – as per relevant statements from the representatives of Masdar and Iberdrola. “We want to expand into offshore wind, leveraging the expertise of Terna Energy in the sector,” said Abdulaziz Alobaidli, Chief Operation Officer of Masdar, praising Greece’s National Programme for the Development of OWF.

Gonzalo Saenz de Miera, Global Director of Climate Change and Alliances at Iberdrola, also referred to the country’s attractive investment prospects, highlighting the advantages that Greece offers in the OWF sector, such as the three key conditions to attract further investment interest: minimization of business risk during the development phase; State support schemes and necessary clarity to facilitate the financing of projects; and creation of a local supply chain.

 On his part, Konstantinos Mavros, CEO of PPC Renewables, shared that the pilot OWF project under development in Alexandroupolis will set the tone for future investments. He also added that the relevant studies (seabed, environmental, etc.) have already been launched, estimating that implementation will start within the next 18 months. 

In closing, Astrid Rusås Kristoffersen, Director Group Research & Development of DNV, estimated that 72% of the total demand for green energy by 2050 will be for wind farms – onshore and offshore, either fixed-based or floating.

Greece's National Offshore Wind Farm Development Programme

The draft of the National Offshore Wind Farm (OWF) Development Programme was announced in late 2023 by the Hellenic Hydrocarbons and Energy Resources Management Company (HEREMA) and the Ministry of Environment and Energy.

The offshore wind program, which includes a strategic environmental impact assessment (SEIA), delineates 25 areas for OWF development, covering a total of 2,712 square kilometers, with an estimated minimum capacity of 12.4 GW. The majority of the proposed offshore areas are also suitable for floating wind power technology.

“We feel proud knowing that the submission of the program and the SEIA is the first step on a path that will create important opportunities for sustainable development, both economically and socially, and also optimistic to see the strong representation of the national and international investor community at today’s event. We are already preparing for the next steps in order to create the right framework for the rapid development of this new sector,” HEREMA’s CEO Aristofanis Stefatos said.

The plan, which has already been submitted to the Spatial Planning Directorate of the Ministry of Environment and Energy, qualifies ten eligible areas for development by 2030-2032. The overall capacity of approximately 4.9 GW is mainly for floating projects. The said zones do not include the marine area between Evros and Samothraki, which is defined as an area for the development of pilot offshore wind projects. Five regions selected for the first stage:

This is the list of Offshore Wind Farms Organized Development Areas (OWF-ODA) eligible for the medium-term development phase:

• Eastern Crete, where it is estimated that projects with a total capacity of 800 MW will be developed;
• Southern Rhodes, with a maximum installed capacity of between 300 MW and 550 MW;
• Central Aegean, with a maximum installed capacity of between 200 MW and 450 MW;
• Evia-Chios axis, with a maximum installed capacity of 300 MW;
• Ionian Sea, with a maximum installed capacity of 450 MW.

The areas will be developed in two phases, but with the goal of at least 2 GW of offshore wind energy capacity by 2030. In addition to releasing its draft plan, the Greek government has also proceeded with issuing the first two licenses for pilot projects in the north Aegean. The licenses apply to the offshore area extending south of the coastline of the Regional Unit of Evros and north-northeast of Samothrace and are defined as an area for the development of pilot OWF projects with a total capacity of up to 600MW.

“Greece has an extremely strong offshore potential, mainly thanks to its climate and its strategic position on Europe’s energy map,” said Minister of Environment and Energy Theodoros Skylakakis. “The development of offshore wind farms will contribute, first and foremost, to ensuring our energy autonomy, but also to achieving the ambitious target of 12 GW by 2040-2045, making Greece a major green energy exporting country.”

In the past few years, Greece has ramped up renewable energy sources, which now account for more than 50% of the country’s power generation and is helping Greece export electricity to its neighbors in Southeast Europe. Combined with the development of its cross-border interconnections, Greece is emerging as an energy hub in the region.

In July 2022, parliament approved the country’s first law for offshore wind development, spurring interest from foreign investors. Among them, Norwegian energy giant Equinor has said it wants to invest in Greek offshore wind facilities while other major players, like Copenhagen Offshore Partners from Denmark, have entered into agreements with local companies for the joint development of offshore wind farms in Greece.

In a recent survey by consultancy EY, Greece was named as one of the world’s most dynamic investment destinations for renewable energy – and even the world’s top destination – as the government continues to rapidly promote the country’s clean energy transition.

Benefits of EUR 1.9 billion for the economy

In addition, HEREMA commissioned the Foundation for Economic and Industrial Research (IOBE) to conduct a study on the economic benefits of the development of offshore wind in Greece. It includes the assessment of the importance of developing a domestic supply chain for their construction and operation.

According to the study, the deployment of offshore wind can boost the gross domestic product by up to EUR 1.9 billion per year on average over the period 2024-2050 while annual government revenues can rise up to EUR 440 million, said George Maniatis, Head of IOBE’s Sectoral Studies Department. Over the same period, it can make a significant contribution to employment, supporting up to 44,400 jobs per year.

The Hellenic Wind Energy Association (HWEA/ELETAEN) said the national program is a positive step for the development of the sector. However, mistakes made in onshore wind must not be repeated, it warned. ΗWEA added that a flexible licensing system must be applied together with the rapid construction of international power interconnections to make the most of this opportunity.

See also from Greek News Agenda

• Greece Unveils Revised National Energy and Climate Plan: Aiming for Carbon Neutrality by 2050
• Forty Greek islands are going “green”

Read more:

• Study for the Supply Chain for Offshore Wind Farms in Greece, Final Report
• Status & Challenges for the supply chain for Offshore Wind in Greece

I.L., with information from HEREMA, Enterprise Greece.

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Greece’s Ministry of Environment and Energy has introduced the updated National Energy and Climate Plan (NECP), which outlines the country’s strategy to achieve specific energy and climate targets. The plan sets forth ambitious goals, including a 58% reduction in greenhouse gas emissions by 2030, an 80% reduction by 2040, and achieving full carbon neutrality by 2050.

During the press conference for the presentation of the plan, Environment and Energy Minister Theodoros Skylakakis noted that the updated NECP balances ambition with realism, taking into account progress since the original 2019 plan. He underlined hat Greece has exceeded previous targets for renewable energy integration and emissions reduction. Minister Skylakakis proudly stated that Greece is leading the way in these areas, saying that the country has "achieved better results than others" and has already surpassed its goals for renewable penetration and emissions cuts.

The revised strategy signals the end of energy subsidies and emphasizes efficient, cost-effective investments to facilitate the energy transition. Skylakakis pointed out that the NECP’s 2025-2050 revision will support Greece in becoming fully energy independent, stating, "For the first time since the Industrial Revolution, Greece has the opportunity to achieve energy independence."

"This plan will significantly reshape the country’s economy," he said, forecasting substantial changes in the years to come that will foster economic and industrial growth, improve the country's financial stability, and lay the groundwork for a robust Greek economy well into the future. Skylakakis also highlighted the NECP’s consumer benefits, noting that "investments with a very low marginal cost" will result in the provision of affordable, clean, and abundant energy.

As Greece shifts to renewable energy, electrification, advanced technologies, and greater energy efficiency, the average electricity cost is expected to drop from 145 euros per megawatt-hour to 95 euros per megawatt-hour by 2050.

The primary aim of the updated NECP is to tackle climate change, with a strong focus on green electricity production. Currently, renewables make up 55% of electricity generation, with plans to increase this to 75% by 2030 and 95.6% by 2035. The NECP also outlines plans to install smart consumption meters for 7.5 million energy connections by 2030. Over the next two decades, biogas and hydrogen will be incorporated into energy use, and energy-saving initiatives will be central, with more than 800,000 building renovations scheduled between 2040 and 2050.

Following Skylakakis’s presentation, Deputy Minister of Environment and Energy Alexandra Sdoukou elaborated on the revised NECP’s key elements. She described the plan as a blueprint for a new growth model focused on green transition, digital innovation, reduced energy costs, modernized infrastructure, and boosting domestic value creation. She emphasized the NECP’s potential social impact, highlighting policies that will provide citizens with affordable, clean energy, while also spurring economic growth, increasing GDP, and generating jobs.

Professor Pantelis Kapros from the National Technical University of Athens, who is part of the NECP Inter-Ministerial Committee, addressed concerns over the costs of transitioning to green energy. He stated that "economic analyses show that the costs are manageable," noting that while investment will total 450 billion euros, these expenses are necessary and will be more efficient over time. He emphasized the importance of the plan’s financial feasibility.

Dimitris Kardomateas, Head of the Office of the Secretary General for Energy and Mineral Resources, underscored the ambitious targets, including reducing greenhouse gas emissions by 58% by 2030 and 80% by 2050. He stressed the importance of focusing on electricity generation, the main source of emissions, due to its potential for cost reductions. The technology is mature, ready, and supported by investors, but challenges remain in reducing legal delays to ensure timely implementation.

The Governor of the Bank of Greece, Yannis Stournaras, present at the NECP's unveiling, stressed that "there is no room for complacency in the face of climate change." He called for a cohesive action plan to reduce reliance on fossil fuels and emphasized that meeting these goals will require an investment of 436 billion euros by 2050. This initiative is expected to contribute 6 billion euros annually to the country’s gross value added and provide a 2.5% yearly boost to GDP. Additionally, it is anticipated to create 210,000 sustainable jobs each year.

In the renewable energy sector, Greece aims to achieve a 76.8% share of renewables in electricity production by 2030, down slightly from the previous target of 80%. Solar capacity is projected to reach 13.5 GW, with onshore wind at 8.9 GW and offshore wind at 1.9 GW. These figures are close to those in the earlier plan. Energy storage targets include 6 GW, split between 4.32 GW in battery systems and 1.74 GW in pumped hydroelectric units—1.2 GW higher than in the original plan.

Natural gas will continue to serve as a transitional energy source, with installed capacity expected to rise by around 800 MW to 7.8 GW by 2030. To support investments in this area, a capacity mechanism will be developed in consultation with the European Commission. For the building sector, 409,000 energy-efficient upgrades are planned for this decade, while electric vehicles will benefit from an expanding charging network as prices continue to fall, approaching those of conventional cars.

Overall, Greece aims to cut CO2 emissions by 58.6% from 1990 levels, in line with the European Union’s goal of 55%. To meet these updated targets, an estimated €95 billion ($104 billion) in additional investment will be needed by 2030, funding initiatives like energy efficiency in buildings, expansion of solar and wind capacity, and energy storage enhancements. By 2050, total investment is expected to reach €330 billion ($363 billion), aiding Greece's goal of climate neutrality.

This updated NECP reflects Greece's dedication to combating the climate crisis and speeding up its shift to renewable energy, setting an example for other EU nations and signaling new opportunities for investors and stakeholders in the green energy sector. You can view a presentation of the plan here (pdf, in Greek).

I.L. With information from APE-MPA, Energy News, To Vima, Balkan Energy News

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The decarbonization of the small islands that have not been already included in the program to interconnect the country's islands to the mainland electrical system - operated by the Independent Power Transmission Operator (ADMIE), will move forward using hybrid systems (wind and photovoltaic stations combined with batteries) along with a series of "green initiatives." The "greening" of the 40 non-interconnected islands will contribute to the goal of the National Energy and Climate Plan (NECP) to reduce the share of liquid fuels in the electricity generation mix.

In the context of the latest revision of the EU Emissions Trading System (ETS) Directive, adopted in 2018, Greece achieved a special arrangement, securing free CO2 emission allowances for the decarbonization of the islands, which it must use until 2030. In light of this, the Ministry of Environment and Energy has launched the Island Decarbonization Fund, which will collect the funds from the auctions of these unused pollutant allowances, are estimated to range between €1.8 billion and €2 billion. In fact, with a leverage of 50%, it is estimated that around 4 billion euros will be directed to projects and actions for the decarbonization of the islands’ economy. Another fund, in the order of 450 million euros, is intended for the acceleration of interconnection of the islands that is implemented by the Independent Power Transmission Operator (IPTO-ADMIE).

Part of the funds of the Decarbonization Fund will be used to finance electrical interconnection projects of the islands in order to speed up the implementation of the ADMIE’s planning, but also in energy saving projects., such as hybrid systems that will replace oil PPC units, prioritization of electric transport, renewal of the marine fleet with low-pollution technologies, energy efficiency and circular economy projects, sustainable waste and water management, green transformation of agriculture and tourism, etc.

GR-eco Islands, another government initiative set in motion in 2021, with the aim provide the islands with renewable energy sources and advance projects for green economy, energy autonomy and sustainable mobility, will also play a key role in the decarbonization of Greek islands. The actions of the “GR-eco Islands” initiative which will include the financing of waste management projects, water and energy production through energy communities, etc. will be financed by a 100 million euro fund secured by the NSRF 2021-2027, but in the second year the Decarbonization Fund will also participate in funding, alongside the private sector.

The initiative has already been kicked off in the islands of Tilos, Agios Efstratios, Astypalaia and Halki, and will be extended to 36 more small islands: Symi, Agathonisi, Megisti, Arkioi, Marathi, Kasos, Pserimos, Gyali, Lipsi, Telendos, Nisyros, Megalonisi, Onousses, Psara, Fourni, Thymaina, Amorgos, Anafi, Donoussa, Heraklia, Antiparos, Schinoussa, Ios, Sikinos, Koufonisi, Folegandros, Thirasia, Kythnos, Kimolos, Serifos, Sifnos, Kea, Antikythira, Gavdos, Ereikoussa and Othoni. The initiative is moving forwards, and priority is given to the small islands of the Aegean, where polluting energy production units operate and which meet the criterion of double insularity – i.e. access to them is not direct through the mainland, but only through another island.

As for the actions that can be supported with the Fund’s resources, they first of all concern the change of energy model on non-interconnected islands. The electrification of road and sea transport is also a priority; as far the islands’ ​​connection to the mainland is concerned, priority is given to the development of new and the modernization of existing port infrastructures as well as to the modernization of the boat fleet that services intra-island routes.

Resources from the Decarbonization Fund will also be allocated to support of the "Saving Energy" (Exoikonomo) and "Moving Electric" (Kinoumai Ilektrika) existing programs, as they become adapted to the needs of the islands. Households, as well as tourism and hospitality units will be able to participate in the energy saving actions. As far as electric mobility is concerned, the replacement of conventional vehicles with electric ones will be subsidized, focusing on the rental cars fleet in the tourist island areas, as well as in the installation of battery chargers.

As far as the installation of hybrid systems is concerned, based on the revised NECP plan, Hybrid power generation systems will be promoted on those islands that remain non-interconnected, i.e. units that combine Renewable Energy Sources (RES) and energy storage, while RES projects will be supported on those that are interconnected. 240 MW of power are planned to go “green” by year 2026, of which 120 MW will be from the non-interconnected islands of Megistis, Antikythera, Gavdos, of Erekoussa and Othoni, and the other 120 MW of from hybrid power plants to be installed in Crete. These hybrid stations will use pumped storage systems with accumulators for storing energy from wind turbines or from photovoltaic panels.

The decarbonization of the islands is at the heart of the investment interest of Greek and foreign companies. Among the investors are the German company Accusol, which cooperates with Siemens and has secured licenses for the installation of hybrid units on 9 Greek islands, the pioneer in hybrid technologies Siemens - Gamesa, Eunice, which promotes projects similar to the one operating in Tilos and in other islands, as well as the French company Akuo which participates in the Halki project.

I.L. with information from Kathimerini and Oikonomikos Taxydromos

Interconnection the islands to the electric grid of the mainland | Photo: Independent Power Transmission Operator (IPTO-ADMIE)

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