During the last years, Greek economy has been marked by a remarkable growth in the field of renewable energy. According to a recent report by environmental think-tank Green Tank, Greece reached a new clean energy milestone last year, with the production of clean energy (renewables and large hydro) being the highest of the decade. This achievement underlines Greece's ongoing commitment to renewable energy, carbon neutrality by 2050, and its efforts to become a green energy hub for Southeast Europe.

Under the recently revised National Energy and Climate Plan, Greece aims to reduce its greenhouse gas emissions by 58% over the next five years, by 80% by the end of the next decade, and to achieve total carbon neutrality - as well as complete energy independence - by 2050. The revised national plan for 2025-2050 calls for the share of renewable energy sources in electricity generation - currently around 57% - to rise to 75% by 2030 and 95.6% by 2035.

The development of new renewable energy projects, new technologies, new electricity interconnections and energy-saving measures will require combined investments of 436 billion euros by 2050, according to the National Energy and Climate Plan. This will contribute 6 billion euros a year to gross added value and increase GDP by 2.5% by 2050.

Thanks to dynamic investment in renewables, the country has gone from being an energy importer in 2019 to a stable exporter in 2024, which is very important for the country's energy self-sufficiency.

The renewable energy field is certainly one of the most important examples of investment in new fixed productive capital on Greek territory, while these investments have already produced tangible results in the electricity generation mix. Estimates of the value of these investments over the last five years reach around 9.5 billion euros in renewable energy plant construction projects, complementary projects and infrastructure and network projects.

More specifically, according to the data provided by the Greek Independent Power Transmission Operator (IPTO or ADMIE) S.A., a total of 25.2 TWh of electricity was generated on the interconnected grid from renewable energies - excluding large hydro - reaching a production level more than twice that of 2019 (12.2 TWh), suggesting an average annual growth rate of 15.6%. This rapid increase in renewable energy capacity, combined with the adoption of the policy of total decarbonization by 2028 - despite its adjustment due to the energy crisis and the war in Ukraine - has led to a radical shift in the electricity generation mix.

According to a study by the Greek think-tank diaNEOsis, the largest share (55.3%) of electricity demand in the interconnected system in 2024 was covered by renewable energy sources (including hydropower), which was achieved for the first time in 2023 (51.4%), with the share of coverage rising continuously and rapidly. On the contrary, in addition to - and despite - the drastic reduction in the use of lignite, it seems that in 2024 Greece also managed to annihilate net electricity imports, making the country a net exporter, a first since 2000.

Addressing the 3rd Inter-Parliamentary Forum of the OSCE (Organization for Security and Co-operation in Europe) PA South East Europe Delegations, held in Kastoria on March 27-30, the new Deputy Minister of Energy (Hellenic Ministry of Environment and Energy), Nikos Tsafos, pointed out that the installation of around 13 GW of solar and wind power alone has contributed to the increase in renewable energy sources in the electricity mix.

With regard to the share of renewable energy in the energy mix, Greece is making steady progress, having exceeded the European average by 2023. Greece has increased the share of renewable energy in the energy mix by 61% between 2014 and 2023, ranking 7th out of 36 European countries in terms of the evolution of the share of renewable energy in the energy mix for the reference period.

According to diaNEOsis, total net production exceeded demand by 307 MWh, corresponding to 0.6% of demand. This picture is not very different if we include the unconnected islands, which are mainly electrified by oil- and gas-fired power plants, the relative contribution of renewables being much smaller. In particular, according to “Green Tank” data for the whole of 2024, renewables record a slightly lower relative contribution to meeting demand across the entire power system, but retain an absolute majority, with a share of 50.8%.

The rapid rate of increase in the installed capacity of renewables and the achievement of record levels of their share in electricity generation are undoubtedly having a very positive impact on the detachment of the Greek economy from both coal combustion and the associated greenhouse gas (GHG) emissions, as well as from foreign energy imports. However, this development also brings with it a number of new technical challenges, which need to be met effectively and promptly to avoid creating obstacles to the increased penetration of renewable energy sources.

Based on the original article which appeared on GrèceHebdo (Intro photo by Micah Giszack on Unsplash)

Read also via Greek News Agenda: Greece Unveils Revised National Energy and Climate Plan: Aiming for Carbon Neutrality by 2050; Greece’s Offshore Wind Energy program draws strong investment interest; Greece’s renewable energy landscape

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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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