Drive for Renewable Energy in Greece

Drive for Renewable Energy in Greece

A major shift in Greece’s energy policy constitutes the government’s Plan submitted to the European Commission, to align with its 2030 energy targets. The aim is to reduce dependence on lignite power and to increase the use of renewable energy sources (https://www.euractiv.com/section/energy/news/greece-vows-e35-billion-investment-for-energy-transition/?utm_source=EURACTIV&utm_campaign=5eb2f03cde-RSS_EMAIL_EN_EnergyEnvironment&utm_medium=email&utm_term=0_c59e2fd7a9-5eb2f03cde-114953471).

The Minister of Environment and Energy, Mr. George Stathakis stressed the significance of this move. He said, “For the first time Greece now has a long-term plan for the energy sector: The National Energy and Climate Plan, which describes the framework for investments totaling EUR 35 billion”.

The government has produced a national energy and climate plan setting out realistic goals towards clean energy, and the plan is based on three pillars, as analysed by the Minister. (https://www.euractiv.com/section/energy/news/greece-vows-e35-billion-investment-for-energy-transition/?utm_source=EURACTIV&utm_campaign=5eb2f03cde-RSS_EMAIL_EN_EnergyEnvironment&utm_medium=email&utm_term=0_c59e2fd7a9-5eb2f03cde-114953471).

The first pillar involves a radical change of Greece’s energy mix, by placing a significant emphasis on renewables, up to 32% of final consumption. This could be achieved by renewable energy substituting fossil fuels with over 55% of final electricity consumption and by progressively reducing lignite.

Energy savings are the second pillar and will total one-third of current consumption by 2030. This could be accomplished by renovating and replacing 10% of residential buildings by 2030 with new near-zero energy consumption.

The third pillar is to reduce energy poverty, by providing equal access to basic goods and services for the entire Greek population.

Following a long period of reforms, a new landscape of investing opportunities is opening up in Greece. Analysts appear to agree that the most attractive industries are expected to be tourism and energy with renewables being one of the main drivers (https://www.euractiv.com/section/energy/news/greece-vows-e35-billion-investment-for-energy-transition/?utm_source=EURACTIV&utm_campaign=5eb2f03cde-RSS_EMAIL_EN_EnergyEnvironment&utm_medium=email&utm_term=0_c59e2fd7a9-5eb2f03cde-114953471).

Studies have indicated that renewables must cover 20% of total energy consumption and 40% of total electricity production by 2022. It means that Greece should reach a total of 10.000 MW of Renewable Energy Sources installed by 2022.

The Greek Energy Market Operator guarantees power purchase agreements for 20 years. Also, investors can benefit by a regime of attractive tariffs and an accelerated licensed process.

In recent years, a number of companies have invested in the renewable energy sector in Greece.

These include major companies such as Terna Energy (http://www.terna-energy.com) holding 9%, Copelouzos Group (http://www.copelouzos.gr/en) holding 5%, R Energy 1 SA (www.r-energy.gr), subsidiary of Rokas Group, holding 4.9%, and El.Tech. Anemos (https://www.eltechanemos.gr/?lang=en), holding 4.5% in the renewable energy sector, in 2018.