Greece’s push to build new gas-fired power plants is increasingly drawing criticism, as the rationale behind these investments appears increasingly out of step with both market realities and Europe’s energy transition goals. Despite government claims that such infrastructure is vital for energy security, closer examination reveals a different picture: one of costly projects with limited utility, sustained not by market demand but by public subsidy.
The Greek Ministry of Energy has backed investments totaling €1.6 billion, arguing that natural gas plants are essential for balancing the grid. Yet, technical and economic analyses suggest otherwise. As renewables rapidly gain ground and dominate the country’s energy mix, these thermal units are expected to play only a minor, auxiliary role. Far from being base-load generators, their usage will be confined to just a few hours each year—mostly during periods of peak demand.
Official projections from the government itself anticipate a dramatic decline in the operating hours of such plants, from 3,200 hours annually today to just 1,280 by 2030. Electricity production is forecast to fall from 17 terawatt-hours to 10. These numbers undermine any argument for new capacity. What they point to instead is a model of guaranteed investor returns propped up by state support mechanisms such as Contracts for Difference or strategic reserve schemes. These plants are not viable in the open market—they require continuous financial backing to remain afloat.
This has led to growing concern that the real motivation behind these projects is not energy security but rent-seeking. Business interests appear to be positioning themselves to benefit from projects of questionable necessity, with guaranteed profits underwritten by taxpayers. In essence, the government is enabling a form of parasitic entrepreneurship in which private actors reap the rewards while the public shoulders the financial risk. It’s an all-too-familiar model that imposes long-term costs on the economy.
Moreover, the continued emphasis on thermal generation risks locking Greece into outdated technologies at the very moment when the energy sector is undergoing a profound transformation. Advances in battery storage, improved regional interconnections, and smarter demand management solutions are making such investments increasingly obsolete.
