The renewable energy sector is in full growth, according to Nikos Mantzaris, partner and senior policy analyst at The Green Tank. In 2024, the country reached a historic record in photovoltaics, with the installation of 2.5 GW of new capacity, surpassing the previous record of 1.6 GW set in 2023.
«The new PV projects that already have connection terms far exceed the 2030 target set in Greece’s NECP (13.4 GW), which will likely be reached by mid-2026,» Mantzaris explains. Meanwhile, wind energy, with an installed capacity of 5.3 GW as of mid-2024, is progressing more gradually toward its goal of 8.9 GW for 2030.
A notable trend is the growth of self-consumption photovoltaic systems. By July 2024, these systems had reached 665 MW, representing 8% of the country’s total photovoltaic capacity at that time. According to Mantzaris, «The capacity of these systems has doubled annually since 2021, driven by the energy price crisis.»
In this context, the specialist emphasizes that the targets set in the National Climate and Energy Plan (NECP) for 2030 are expected to be met. «The new PV capacity will be achieved much earlier, and the corresponding target for wind energy will also be reached. It is also possible to meet the storage capacity goals for 2030, provided the government prioritizes storage over gas plants as the primary option for flexibility in Greece’s power system,» he points out.
In the transport and heating sectors, the NECP presents more conservative goals. «The electrification of both sectors must accelerate in the coming years to align with the leadership of renewables in the power system,» Mantzaris notes.
Structural Challenges: Curtailment and Grid Capacity
Despite the growth of the renewable market in Greece, Mantzaris highlights that the sector faces major structural challenges, mainly the lack of grid capacity and the increasing curtailment, which threaten the economic viability of renewable projects.
«The main problem is the lack of available grid space. The second is insufficient storage capacity to limit renewable curtailment, which, if it continues to increase, could negatively affect the economic viability of renewable installations,» he explains.
Curtailment has emerged as a critical issue in Greece. In 2024, approximately 900 GWh of green energy were curtailed, representing around 3.5% of the country’s total renewable generation. These restrictions are due to the oversupply of renewable energy when demand is low and limited interconnections. The grid’s capacity is insufficient to handle the sector’s growth pace. Regions with high densities of renewable projects face grid congestion, limiting interconnection and clean electricity export capacity.
The Hellenic Association of Photovoltaic Companies (HELAPCO) stresses that between 7.5 GW and 8 GW of storage are needed to address the issue. Studies in Greece show that for each GW of standalone battery energy storage systems (BESS), curtailments can be reduced by 0.62 to 1.18 TWh, depending on capacity.
Furthermore, the representative of The Green Tank points to other challenges faced by the sector: the absence of an adequate spatial plan for renewables that effectively protects Greece’s unique biodiversity, particularly bird species, and the issue of social justice. «The economic benefits of renewable energy development must be distributed across all sectors of society and not limited to large renewable energy producers,» he asserts.
Proposed Measures to Ensure Growth
In this context, Mantzaris proposes key measures to address these challenges, such as developing new grids and interconnections with unconnected islands and neighboring countries, and prioritizing the construction of new storage systems, both at utility and smaller scales, to ensure sufficient flexibility in Greece’s power system.
«It is necessary to develop a modern spatial plan for renewables in consultation with all relevant experts from the energy and biodiversity sectors, as well as representatives from Greece’s 13 regions,» he states.
«The government must ensure sufficient grid space and provide additional financial incentives to support the growth of self-generation systems for individual households, small and medium-sized enterprises, and energy communities,» he adds.
Additionally, he suggests avoiding overcapacity in gas plants by canceling production licenses for all projects in the planning phase, retiring older gas plants, eliminating fossil fuel subsidies, and halting the expansion of the gas network.
0 comentarios