Greece Revises Renewable Energy Targets in New National Climate Plan

October 22, 2024

After several months of extensive consultations and revisions, Greece has unveiled the final version of its National Energy and Climate Plan (NECP). This plan sets forth the nation’s strategic goals for various types of renewable energy, pumped hydropower, and hydrogen technologies up to the year 2030. The adjustments made touch upon multiple energy segments, indicating a careful but significant shift in Greece’s energy strategy.

Revised Renewable Energy Targets

Refinements in Energy Mix and Production

Greece has systematically revisited its renewable energy objectives across several critical areas. In the primary energy mix, the share of renewable energy has been adjusted to 43% by 2030, down from the initially proposed 45.3%. For the domain of electricity production, the aim is now 75.7%, which is a slight reduction from the previous 76.8%. Notably, the target for renewable heating and cooling has seen a substantial decrease, dropping from 61.1% to 52.6%. However, the ambition for renewable energy use in buildings has witnessed an increment, increasing to 72.2% from 67.4%.

These adjustments reflect Greece’s pragmatic approach towards aligning its national goals with EU mandates while addressing industry feedback. The industrial sector has also not been overlooked; the new target for green energy usage in industries is set at 34%, down from 41.2%. The transportation sector likewise saw a minor decline, with the revised share now standing at 13.4%, a reduction from 13.9%. These recalculations indicate a balance between aspirations and realistic assessments of market conditions and technological advancements.

Impact on Hydro and Biomass Power

Adjustments were also notable in specific power production technologies. While the targets for wind and solar power remained consistent, the capacity goals for smaller hydropower plants faced a reduction. The target for small hydropower plants was cut from 365 MW to 350 MW. Similarly, the biomass target was lowered from 81 MW to 77 MW. Despite these reductions, Greece has kept its energy storage targets for battery systems at 4,325 MW.

In contrast, the target for pumped storage hydropower plants has been revised upwards to 1,928 MW from the previously proposed 1,745 MW. Additionally, the annual hydrogen production target received a slight boost, now pegged at 1.2 TWh. In line with this, the electrolyzer capacity has also been upgraded from 187 MW to 231 MW. These adjustments signify Greece’s strategy to focus more on emerging technologies and energy storage solutions to better handle fluctuations in renewable energy supply.

Strategic Considerations and Future Challenges

Anticipated Market Conditions and Adjustments

The report provides a comprehensive view of Greece’s strategic considerations, underscoring the balancing act required to meet both national and EU energy objectives. Thodoros Skylakakis, the Minister of Environment and Energy, has highlighted the challenging times ahead for the renewable energy market in Greece. One of the significant hurdles anticipated is the period of very low wholesale prices, which could pose a substantial risk to investment in the renewable energy sector. This market volatility necessitates government and industry efforts to streamline processes and maintain investor confidence.

Skylakakis emphasizes that achieving the revised NECP goals will require coordinated efforts from both the government and industry stakeholders. Improved regulatory frameworks and incentives might be necessary to navigate these low-price periods while safeguarding investment interest. The emphasis on process efficiencies aims to ensure that the renewable energy sector continues to attract funding, crucial for sustaining growth and meeting the NECP’s ambitious but adjusted targets.

Holistic Approach to Energy Transformation

After months of meticulous consultations and extensive revisions, Greece has rolled out the comprehensive final version of its National Energy and Climate Plan (NECP). This detailed plan articulates Greece’s strategic goals and ambitions for various renewable energy sources, including solar, wind, and biomass, as well as the development of pumped hydropower storage and pioneering hydrogen technologies, all with a target horizon extending up to the year 2030. Emphasis has been placed on transitioning to renewable energy to reduce greenhouse gas emissions and ensure energy sustainability.

These changes reflect a thoughtful yet bold shift in Greece’s approach to energy policy. The updated NECP includes ambitious targets, such as increasing the share of renewables in the energy mix and enhancing energy efficiency across multiple sectors. The plan also outlines measures to improve grid infrastructure, fostering innovation and competitiveness in the green energy market. This strategic direction aims not only to meet international climate commitments but also to drive economic growth and create new jobs within the green energy sector.

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