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diciembre 23, 2024

Greece faces 900 GWh of curtailment in 2024: challenges and solutions

In 2024, Greece recorded 900 GWh of renewable energy curtailment, a growing issue in the country's energy transition, according to Stelios Psomas, an energy and sustainability expert, in an interview with Energía Estratégica España. Solutions such as storage and grid strengthening are key to achieving the targets of the NECP (National Energy and Climate Plan).
By Emilia Lardizabal

By Emilia Lardizabal

diciembre 23, 2024
Greece curtailment Grecia

Curtailment has become a significant obstacle in Greece’s energy transition, reflecting the challenges of an electricity system facing rapid growth in renewable energy. In 2024, nearly 900 GWh of green energy were curtailed, representing about 3.5% of the country’s total renewable generation, according to Stelios Psomas, an energy and sustainability expert, in an interview with Energía Estratégica España.

«These restrictions are due to an excess of renewable energy supply, mainly in March and October, when demand is low. This seems to be the biggest issue right now. Since interconnections are limited, the System Operator has to reduce energy generation,» says Psomas.

Grid congestion and the insufficient pace of infrastructure improvements are key problems. The expert emphasizes that while operators are working to strengthen the grid, progress is not in line with real needs.

However, he notes that the government is taking steps to address these issues, including strengthening the grid, improving interconnections, and accelerating storage applications.

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Another concern for the European renewable sector in general is low, even negative, energy prices. In 2024, Greece only faced 11 hours of negative prices. However, this could change due to modifications in some market rules, according to Psomas.

Energy Storage as Key for the Sector

Energy storage emerges as a crucial solution to mitigate curtailment and balance supply and demand in the electricity system. Currently, there is great interest in this technology in Greece, with applications for 79 GW of storage capacity (255 GWh), according to the expert.

Additionally, in 2024, two rounds of auctions for 700 MW of batteries were held, which will be operational by 2026. According to the National Integrated Energy and Climate Plan (NECP), the country plans to reach 4.3 GW of battery storage and 1.75 GW through pumped storage by 2030. However, the Greek Photovoltaic Energy Association (HELAPCO) estimates that the actual potential could exceed 8 GW in batteries by that time.

It is important to note that HELAPCO states that between 7.5 GW and 8 GW of storage are needed to resolve the issue, as studies conducted in the country show that for each GW of stand-alone battery storage system (BESS), curtailment is reduced by between 0.62 and 1.18 TWh, depending on capacity.

Expectations for 2025 and NECP Targets

Despite the challenges, Psomas is optimistic about the expectations for 2025, as «the necessary measures to maintain the trend are underway for the coming months.»

2025 is projected to be a record year for renewable energy, especially in the photovoltaic sector, which has already connected more than 9 GW to the grid. Greece is on track to meet its target of 13.5 GW of solar capacity by 2026, four years ahead of the NECP’s plan. Additionally, HELAPCO anticipates that the country could exceed 20 GW of installed capacity by 2030.

Regarding wind energy, current installations total around 5.5 GW. The NECP forecasts 8.9 GW of onshore wind energy and 1.9 GW of offshore wind energy by 2030. Since there are currently no operational offshore wind farms, the sector expects them to begin operating after 2032.

The country has currently achieved over 50% renewable energy sources (RES) in electricity demand. This share is almost evenly split between wind and solar energy, each accounting for 23% to 25%. The rest comes from hydroelectric and biomass energy.

The NECP sets a goal of 76.8% renewable energy share in electricity demand by 2030, led by photovoltaic and wind energy.

However, Psomas emphasizes that to reach these targets, the market must adapt to new business models. This includes facing more restrictions, dealing with negative prices, and managing projects without subsidies, in an environment of greater risks. But he assures that «the political climate is favorable to renewables, and the fundamentals guarantee continued development».

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