Energy

Energy

Investing in the Greek Energy Sector

Located at the crossroads between East and West, Greece is uniquely positioned to play a very significant role in the broader region’s energy matters. The ample availability of renewable energy potential (wind, hydro, biomass, geothermal, solar & solar thermal) combined with ongoing large-scale infrastructure projects involving Greece (TAP-IGB-EastMEd Gas Pipelines, oil exploration) imply that Greece will be a key player in the formulation of the EU energy mix and will provide significant investment opportunities in all  Energy industries.

The Greek Energy System

 In recent years, the Greek energy system is characterized by: 

  1. high consumption of conventional fuels based in large part on lignite which was strategically chosen for electricity production after the oil crisis of the 70s, 
  2. high imports dependency which included crude oil, oil products and natural gas
  3. the increasing penetration of natural gas into final consumption in Greece, which still represents a small share of total consumption, and falls short from the European average
  4. an increased deployment of RES electricity production and the improvement of energy efficiency, reflecting Greece’s efforts to adopt European and national policies.

The energy sector in Greece has a higher contribution to GVA and employment than most EU countries, and is poised to grow significantly in the next years, driven by a number of significant factors:

  • the required optimization of the energy mix , which consists of the reduction of fossil-fuel generated electricity and the increased contribution  from RES. This shift will be driven both by the revised EU policy of 27% renewable energy sources by 2030, and by the preference for cheaper energy sources such as natural gas
  • the state’s planned privatization of major energy assets such as Public Power Corporation (PPC), the Natural Gas distributor (DEPA), the Hellenic Gas Transmission System Operation (DESFA) and the Hellenic Petroleum
  • the liberalization of the electricity and natural gas markets and the further separation of production and supply from transmission networks
  • the potential for Greece to become a European gateway for natural gas, electricity  and oil resources through mega-projects such as the TAP-IGB-EastMEd gas pipelines, or the gas and oil drilling opportunities
  • efforts to improve energy efficiency and reduce cost driven by such technologies as smart metering, smartgrid technologies, LED lighting, energy efficient buildings etc
  • major infrastructure development initiatives such as the interconnection of the Greek islands with the main electricity grid

Why Greece

Strategic Position – Greece is currently emerging as a key player in the transportation of energy from East to West through pipeline projects, electricity grid interconnectivity and alternative means of ensuring Security of Supply through offshore reserves (e.g. LNG terminals)

Generation Potential – Due to its climate conditions (Greece enjoys more than 250 days of sunshine—or 3,000 sunny hours—a year, and has a strong wind capacity), the country possesses significant untapped generation potential –particularly in renewables – which can enhance the EU energy mix.

Government support and legislation – the ministries of Environment & Energy, and Economy & Development, have spearheaded several major investment projects over the past years, including the TAP-IGB-EastMed natural gas pipelines, the new liquid gas terminal in Revythousa, and major RES investments. This, in combination with Greece’s upgraded energy investment regulatory framework, provides exceptional opportunities for investment in all Energy sectors.

Main investment opportunities

  • Privatization of state assets 
  • New infrastructure in natural gas transmission (liquid gas terminals, gas pipelines, gas distribution systems)
  • International public Tenders for the Hydrocarbon Exploration in different areas of Greece.
  • Renewable energy projects (Wind, Solar-thermal, Biomass, Small Hydro, Geothermal etc.)
  • Energy efficiency businesses and investments
  • Main Grid interconnectivity with the islands, upgrade and development of cross-border electricity grid interconnections (Maritsa East, EuroAsia InterConnector)


A strong sector with several recent success stories:

  • US Third Point Gas has entered into the share capital of Energean Oil & Gas (a Greek based Oil & Gas producer and explorer) through an equity capital injection of $60 million.
  • Qatar Petroleum International (QPI) and the Greek company GEK Terna have signed an agreement to acquire an interest in the Heron II power plant, signaling QPI's first investment in Greece. Heron II is currently Greece's most efficient power plant.
  • Chinese Shenhua Group has entered into a co-operation agreement with Copelouzos Group to develop RES projects and upgrade lignite units in a € 3 billion investment plan.
  • China State Grid has acquired a 24% stake of The Independent Power Transmission Operator (ADMIE), for € 320 million,Canadian investment fund Fairfax Holdings has become the third-biggest shareholder of Greek industrial energy group Mytilineos , acquiring a 5 percent stake worth about 30 million euros ($41 million).
  • US York Capital Management  announced 100 mn € investments in Greece's energy group GEK Terna, acquiring a 10% share of the firm. 

EXTERNAL LINKS

Ministry of Environment, Energy & Climate Change

Regulatory Authority for Energy 

Centre for Renewable Energy Sources 

Public Power Corporation 

Hellenic Transmission System Operator 

Greek Association of RES Electricity Producers 

Public Gas Corporation S.A. 

Hellenic Petroleum S.A. 

Greek Solar Industry Association 

Hellenic Association of Photovoltaic Companies 

Hellenic Wind Energy Association 

Hellenic Biofuels and Biomass Association 

Hellenic Association of Biomass 

Hellenic Association of Geothermal Energy & Renewable Energy Sources 

Hellenic Small Hydro Association (HSHA) 

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