reply Greece adjusts investment share to update energy targets

The Greek government has presented the latest targets of the National Energy and Climate Plan (NECP, hereinafter referred to as “the Plan”) at the European Union's Energy Summit, which provides for a 59% reduction in greenhouse gas emissions by 2030, higher than the EU's requirement of 55%. The Plan also adjusts the share of investments in each of Greece's energy sectors, making the goals of the policies more realistic and ensuring that the fruits of the green transition actually benefit citizens.　　Alexandra Stoukou, Deputy Minister of Environment and Energy of Greece, said that the new version of the Plan stipulates that Greece will achieve its emission reduction targets through the rapid development of renewable energy sources as of 2030, when renewable energy sources will account for 42.8% of the country's total energy consumption, a slight decrease compared to the target of 44% in the initial version of the Plan formulated at the beginning of 2023; and that in the field of electricity production, renewable energy sources will produce about 76.8% of the country's electricity, much higher than the 69% target set by the EU, but 3.2% lower than the established target of 80% in the initial version of the Plan. At the same time, the share of renewable energy for heating and cooling will increase from 52% in the initial version of the Plan to 62.1%, well above the EU target of 49%; in the field of buildings, it is expected that over the next six years Greece will upgrade 400,000 houses, helping 67.4% of the country's buildings to reach the “In the field of transportation, the new Plan's target for renewable energy penetration in transportation is set at 13.9%, which is a far cry from the EU's target of 29%, as Greece's focus in the next phase of electric vehicle development will be on expanding the national charging network rather than continuing to significantly increase the number of electric vehicles per million of the population. The number of electric vehicles, with Greece providing only 53.2 charging points per million population, compared to an average figure of 287 in EU countries.　　As a result of the downward revision of some of the targets in the Plan, the total cost of the energy transition is expected to be about 94 billion euros, of which about 64 billion euros will be used to stimulate electricity demand and the remaining about 30 billion euros will be used for the installation of renewable energy sources, natural gas, and other energy infrastructures, with the total cost to be reduced by at least 30% compared to the initial version of the Plan, an adjustment which will help to balance the industrial transformation of the country with the stable economic growth The need for stable economic growth.　　In terms of the energy mix, renewable energy will dominate the fuel mix for electricity generation in Greece as wind and solar technologies mature and become more widely utilized, with installed photovoltaic capacity rising from 5.43 GW in 2022 to 13.5 GW in 2030, and onshore wind from 4.7 GW in 2022 to 8.9 GW in 2030, with 1.9 GW of additional wind capacity coming from new offshore power plants. additional wind capacity from new offshore wind farm technology, and hydroelectric capacity will increase from 0.699 GW in 2022 to 1.75 GW in 2030. The share of natural gas will increase from 6.29 GW in 2022 to 7.89 GW in 2030 and decrease to 6.43 GW in 2050 when full climate neutrality is achieved. In addition, the new version of the Plan mentions that the operating hours of gas-fired power plants in Greece will be further reduced in view of the development of energy storage facilities between 2030 and 2040, while appropriate national compensation mechanisms need to be designed for gas-fired power plants, as they are essential to ensure the stability and security of supply of the electricity system throughout the energy transition until 2050. The energy storage units required for oil-fired power generation will be retained on the island for contingency purposes. Lignite power generation will be completely phased out from the entire energy mix by 2028.　　The Ministry of Energy has suggested that low electricity prices are one of the prerequisites for the development of a green economy in Greece, and that through the balanced development of all types of renewable energy sources, such as solar, wind, and hydropower, it is possible to rationally plan according to demand, and to ensure a stable supply of energy while at the same time developing energy storage systems that will adequately improve the cost of energy for consumers. As the energy mix transition requires long-term investment, local electricity prices are expected to rise in the first phase from 2025 to 2030, reaching between €139/MWh and €145/MWh, and then gradually decline thereafter. It is expected to fall to 96 euros/MWh after the accelerated electrification of hard-to-reduce sectors such as heavy industry and transport.Greece has made progress towards a green economy and energy transition in recent years. According to the Greek Independent Transmission Operator (GITO), wind, solar and hydroelectric power in Greece already cover 57% of the country's electricity production in 2023. However, there are still many difficulties for Greece in establishing a green economic system. Alexandra Stoukou has repeatedly referred to “the risk of being overly trapped in expensive technologies.” She said that Greece cannot invest prematurely in new technologies and must exercise restraint, otherwise Greece will increase costs and subsidies at the expense of the real economy, so the new version of the Plan has been revised to take into account the degree of optimization of technology, focusing on the energy transition and the cascading effect of the relevant policy areas of finance, transport, infrastructure, industry and trade, striving to achieve the same goals at a much lower cost to avoid overdraft of the fiscal budget, and to ensure that Greece's economic growth rate remains above 1.2% by 2050.