Greece, with its pivotal position in southeast Europe, is emerging as a strategic energy hub in the region. Historically heavily reliant on lignite for its electricity, natural gas from the Caspian and wind power are transforming Greece’s power sector.
Having joined the European Union (EU) back in 1981, and by default signed up to the concept of market liberalization, some would say that Greece has dragged its heels over some areas of its energy policy. There are some other anachronisms, which sit uncomfortably with most EU countries’ commitment to greenhouse gas reductions, particularly in the field of electricity generation, where a large proportion of its power is sourced from lignite, the very word sure to stir environmentalists into a state of apoplexy.
However, there does exist a climate of growth and opportunity in this sun-soaked peninsula with its many popular island destinations. Greece is fast becoming an energy hub for the southeast Europe, with natural gas interconnectors with Turkey, Italy and elsewhere.
Its links with Turkey clearly offer the potential to draw gas supplies from the Caspian area for distribution throughout the region. Some 75 per cent of the country’s gas comes from Russia’s Gazprom, which has a long-term supply contract stretching to 2040. Further supplies come from Algeria in the form of liquefied natural gas on a take-or-pay arrangement to 2020.
Electrical interconnectors to Italy, Macedonia, Albania and Bulgaria are also strengthening Greece’s contribution to the European electricity market. Indeed, it was secure electricity supplies from Bulgaria that enabled Greece to host the Athens Olympics in 2004, as its own supplies were fragile.
Greece now claims to have a comprehensive energy policy to establish sustainable, competitive and secure sources of energy. Invest in Greece, the government’s body responsible for attracting investment, has established a clear regulatory and market framework for the energy sector. It has transformed the electricity and energy market in Greece into one of the most exciting sectors of growth and opportunity in Europe.
While previously all electricity production, transmission and distribution was under the monopoly of Public Power Corporation (PPC), companies from around the world are now playing a significant role in developing the sector. These include France’s EDF, Enel and Edison of Italy and Spain’s Endesa, along with a host of wind power and solar power companies.
