Greece lowers 2030 renewable penetration goal in its final NECP

Greece’s final National Energy and Climate Plan (NECP) is expected to be submitted to the European Commission in the following days or weeks.

According to Alexandra Sdoukou, the deputy minister of environment and energy who participated in the informal energy ministers’ meeting in Budapest earlier this week, the final NECP will envisage a reduction of greenhouse gas emissions by 59%, compared to the European goal of 55%.

Renewables penetration in the primary energy mix is expected to reach 42.8% versus 42.5%, as the European Union specifies. The previous version of the plan called for 44%.

Sdoukou: The new plan is more cost-effective

The renewables share in power production is 75.9%, against the EU’s goal of 69%. It should be noted that in the previous version of the Greek NECP, the level was set at 80%.

Sdoukou added that the new plan would be more cost-effective and rational. It is based on mature technologies to reduce costs by at least 30% from the NECP’s previous version for the period up to 2030 and by at least 40% for 2030-2050 without endangering the country’s energy transition.

More interconnections needed in SEE

Speaking at the EU energy ministers’ meeting, she underlined the need for more interconnections given the issues that Southeastern European countries are facing with the surge in power prices. The deputy minister added that currently, there is no effective Single Market since distortions create different prices across countries and regions.

The Greek position is to support a truly united European energy market and this requires more investment in grid development so that cheap renewable energy can move around easily between states. However, new financing instruments will be needed to achieve the various goals in renewable energy, hydrogen, grids and carbon capture, utilization and storage (CCUS). A clean energy fund is necessary, said Sdoukou.

Lowering the renewables penetration share reflects worsening conditions in the local market, since there is an abundance of licensing applications together with higher curtailments and periods of zero or negative wholesale prices. Together with interest rates higher than in the past, new renewables projects are not as easy as they used to be. The government has said that the renewables market needs a healthy “break” to avoid overheating.