“Forgotten” energy projects, such as the Burgas-Alexandroupoli oil pipeline, are being revived, placing the country at an even more crucial point on the European energy map.
In main gateway of Southeast Europe for natural gas, Greece is developing, which – through a network of completed or ongoing investments, such as the TAP pipeline, the terminal in Revythoussa and the Alexandroupoli FSRUs – is acquiring a high capacity in gas and liquefied natural gas (LNG) . At the same time, electrical interconnections are progressing and “forgotten” energy projects are being revived, such as the Burgas-Alexandroupoli oil pipeline, which place the country at an even more crucial point on the European energy map.
In this setting, through and through new interconnections, Greece acquires – among other things – the conditions to emerge in the coming years as an exporter of clean green energy, while thanks also to the development of RES, it is expected to save in 2023 approximately 2 billion euros from money that would be available for the import of electricity.
The above results from the speech made today Monday, from Thessaloniki, by the Minister of Environment and Energy, Konstantinos Skrekas, speaking at the voria.gr conference, on the subject of the energy crisis and Northern Greece.
“Five-six years ago, we weren’t even on the energy map. We entered this map, when we managed in 2012-2014 to have the TAP pipeline (Adriatic Natural Gas Pipeline) pass through our country, instead of Bulgaria. Then our position was strengthened through the possibility of the liquefied natural gas terminal in Alexandroupolis and soon in Corinth, (project) which is close to making the investment decision. All these efforts will bring a lower price of energy and predictable” said Mr. Skrekas.
The new interconnections and the Burgas-Alexandroupoli pipeline
But what are the new key connections of the country, to which he referred?
Mr. Skrekas referred, first of all, to the promoted electrical interconnection between Greece and Egypt (for the first time, through GREGY, the electrical systems of Europe are connected to Africa, through Greece, for the transfer of 100% green energy).
Secondly, he mentioned the Greece-Austria-Southwest Germany electrical interconnection, which will allow the energy produced in Greece, combined with that coming to Europe through Africa, to be channeled throughout the Old Continent.
Thirdly, he reminded that the construction of an oil pipeline between Burgas in Bulgaria and Alexandroupolis is being discussed, a project which – as he estimated – if it goes ahead, will upgrade the role of Greece as an energy hub and a pillar of energy security for the whole of Europe, while it is of great importance in as far as financial data is concerned.
Referring specifically to RES, Mr. Skrekas recalled that, based on an EY survey, Greece is considered the second most attractive country in the world in terms of attracting investments in RES, while expressing the assessment that “this is the first time we can have a competitive advantage in the production of electricity in relation to the countries of the European North, due to solar energy”. He reiterated that the goal is for 80% of electricity consumption to come from RES by 2030.
Investments of several billions in RES and energy storage
The minister emphasized that in order to achieve the goals, investments of more than 15 billion euros are needed in RES projects, plus another 10 billion for energy storage systems and interconnections, not including the 15 billion that will be allocated for upgrading the electrical network of the country.
Referring to the electricity and natural gas subsidies, the minister described it as an important measure: “We are not satisfied, but we are helping as much as we can. We also subsidize heating oil, with the subsidy being doubled. We will continue this policy that significantly limits costs for households as long as the fiscal space allows us.”
Answering a question about how businesses were supported in the midst of the energy crisis, Mr. Skrekas emphasized: “We changed the commercial policy of electricity providers. We changed the data with the readjustment clause and we subsidize the price and implemented a tax mechanism, which adjusts to the data at a time. We reduced the problem in this way, but it has not been completely solved. We also made a significant intervention in the professional counters, so that we absorb 70% – 85% of the increase in small and medium-sized businesses and they do not close. In the larger companies, measures and programs have been adopted, in order to be able to reduce the final price of electricity there as well. We provide incentives for solar. Saving energy is the big effort.”
Mr. Skrekas also argued that the current electricity model in Europe “doesn’t work anymore” and did not rule out the possibility of adopting the Greek government’s proposal for the implementation of a ceiling on the price of natural gas at the next, extraordinary Council of EU Energy Ministers on December 13.
S. Famellos on the energy crisis, the renationalization of TIF and energy prices
In the meantime, the head of the Environment and Energy of SYRIZA-PS, Sokratis Famellos, Member of Parliament B’ of Thessaloniki.
He added that, based on Eurostat data, in 2019 Greece was ranked 16th in accuracy in terms of (energy) business costs (after all surcharges, taxes and fees), while in the first half of 2022 it is now ranked second. He also claimed that Greece today is the most expensive country in the wholesale price of energy in all of Europe, that the cost of energy for municipalities is 2.5 times higher, while in municipal water supply and sewerage companies, on average, the cost of energy for September was six times higher after subsidies.
In addition, he characteristically said, “the government is taking billions from the market, to return them later in subsidies. Over 3.8 billion was withdrawn from the market in the last 18 months, to be given in subsidies. How liberal is that? In entrepreneurship, however, he doesn’t give it after all.”
Asked to comment on a recent post by a SYRIZA-PS MP about the renationalization of PPC, Mr. Famellos argued that this would ensure low and stable prices for everyone and indeed with very low recovery costs, compared to the subsidy.
He argued that the government chose very quickly to sell all the country’s energy tools, while he expressed the assessment that Greece’s big issue for the next years in terms of energy is that it does not have enough networks to connect even the projects (RES) , which have received environmental conditions approval. “This leads us to a bubble and a short circuit in green energy as well” he underlined.
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