However, despite these achievements, the country faces critical challenges that could impact the sustainability and efficiency of its energy system.
A new study by the Center for Liberal Studies (KEFIM), in collaboration with the EPICENTER think tank, highlights the urgent need for investment in energy storage and the modernization of power grids to support Greece’s growing reliance on renewables.
According to the study, Greece has steadily expanded its renewable energy capacity, surpassing the European average in 2023. Between 2014 and 2023, the country increased its share of renewables by 61 percent, making it one of the fastest-growing in Europe in terms of clean energy adoption. This transition has been accompanied by a sharp decline in coal use, particularly after 2010, as Greece works toward reducing carbon emissions.
However, natural gas remains a key transitional fuel, and while renewables now play a substantial role in electricity generation, their integration into the grid remains a challenge. The country’s outdated energy infrastructure struggles to accommodate fluctuating renewable energy production, leading to inefficiencies and energy losses.
Electricity costs in Greece have remained close to the European average over the past two decades, with prices in early 2024 standing at €0.24 per kWh before taxes and €0.29 per kWh after taxes. Despite this relative stability, the study points to broader vulnerabilities in Greece’s energy sector.
The growing share of renewables has led to temporary supply surpluses, causing an estimated 3.3 percent of produced energy to be wasted. Additionally, Greece remains highly dependent on energy imports, with nearly 80 percent of its total energy consumption coming from abroad—one of the highest dependency rates in the European Union.
To build a more resilient and competitive energy market, the study argues that Greece must phase out regulatory price controls, encourage competition, accelerate renewable energy expansion, and modernize its power grids.
KEFIM’s General Director, Nikos Rombapas, emphasizes that without strategic investments in storage and distribution networks, Greece risks undermining its progress toward a more sustainable and cost-effective energy system.
