Greece’s green gamble- Focus

At the core of Greece’s energy strategy lies the revised NECP, a roadmap designed to shift the country away from subsidy-driven policies toward cost-effective, sustainable investments. The plan outlines ambitious targets for 2030, including a 58% reduction in greenhouse gas emissions and an increase in the share of renewable energy sources (RES) in electricity production to almost 77%. In order to achieve this goal, Greece aims to install 13.5 GW of solar capacity and 10.8 GW of wind energy.

The plan also envisages a crucial role for energy storage, with a target of 6.2 GW from battery systems and pumped hydro units. This ambitious vision is expected to unlock €95 billion in investment by 2030, contributing €6 billion per year to the country’s gross value added and generate approximately 210,000 sustainable jobs.

The independent regulatory body, RAAEY, is central for implementing this transition. Responsible for overseeing Greece’s electricity and natural gas markets, RAAEY ensures transparency, competition, and consumer protection while aligning national policy with EU directives. Its mandate includes approving key infrastructure projects, designing support schemes for renewables and ensuring grid reliability.

RAAEY has already driven several flagship initiatives. Between 2023 and 2025, it organized competitive auctions for over 900 MW of standalone battery energy storage systems (BESS), using contracts-for-difference to attract investment. These projects are strategically located, including in former coal mining regions like Western Macedonia, transforming them into clean energy hubs. The authority has also approved a massive plan of renewable projects, including over 30 GW of wind and 45 GW of solar power, alongside 14.5 GW of pumped hydro projects.

Despite the green push, natural gas remains a cornerstone of Greece’s energy strategy, with installed capacity projected to reach 7.8 GW by 2030. RAAEY recently restructured natural gas tariffs for 2025 to reflect new market realities caused by the war in Ukraine. The increased use of the Revithoussa LNG terminal has allowed for the termination of a 50% ex ante socialization of its costs into transmission tariffs, though an ex post option remains toensure security of supply.

However, the expansion of natural gas infrastructure has sparked growing controversy. In the southern region of the Peloponnese, the construction of a new distribution network has drawn criticism. Opponents argue that in a warmerregion, investing in fossil fuel infrastructure risks “locking in” dependency especially when electrification and deep energy efficiency renovations could offer superior long-term environmental and socioeconomic benefits. They also highlight that regional governments often lack sufficient input in national planning decisions. While the potential for local biogas production could make such infrastructure more viable in the future, this has not yet been thoroughly studied, though RAAEY is designing support schemes for biomethane, aiming to address this gap.

For Greece’s energy transition to succeed, experts emphasize the need for stronger multilevel governance. The EU Governance Regulation requires inclusive climate dialogues, but Greek regional authorities often feel excluded from strategic decision-making. Bridging this gap through better coordination and deeper stakeholder involvement will be key to aligning national ambitions with local realities. At this critical juncture, Greece’s future path requires a delicate balance. The regulatory innovations promoted by RAAEY signal a strong commitment to a sustainable future.

However, to fully realize its goals, the nation must address the controversial role of natural gas, prioritize electrification, and ensure that the transition is not only green, but also fair and inclusive for all its regions.