IEA says Greece must double down on reducing fossil fuel dependence

The International Energy Agency's latest report praises Greece for several successful measures implemented to mitigate climate change and enhance energy security, however, also calls for stronger actions to bring down fossil fuel dependence and reach its target of net zero emissions by 2050.

According to the IEA, Greece has set new emissions reduction targets, reformed electricity markets to support full integration into the European common market, expanded cross-border interconnections, and passed legislation to enable the development of offshore wind generation.

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By 2030, Greece plans to have 2GW of offshore wind power, which is equivalent to 10% of its current electricity capacity.

Another policy win includes the National Climate Law adopted in May 2022, which not only sets a clear direction for Greece's energy transition, but specifically requires a complete phase-out of lignite-fired generation by 2028.

Overall, since the last IEA country review in 2017, Greece has managed to lower its share of fossil fuels in its energy supply from 91% in 2011 to 82% in 2021. However, this remains above the IEA average of 78%.

“Greece has taken important steps in cutting its use of coal and harnessing its wind and solar resources,” said IEA Executive Director Fatih Birol. “It must now build on this success by going further and faster, including by speeding up the permitting process for new renewable energy projects.

"At the same time, it needs to ensure that planned new investments in gas infrastructure reflect what is needed to maintain security of supply and that the risks of creating stranded assets are fully evaluated.”

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Greece has also sharply cut its dependence on Russian fossil fuel imports since its invasion of Ukraine, according to the IEA, allowing the country to boost its LNG import capacity and diversify gas supplies.

Greece is now able to meet almost all its gas demand from LNG sources, enhancing its energy security and flexibility.

In terms of energy efficiency, the IEA report recognises that Greece has made great strides by committing to the phase-out of oil boilers by 2025 and replacing them with heat pumps and other clean alternatives. It is also introducing biofuel blending mandates to support the decarbonisation of road transport.

More can be done however to upgrade heating and cooling systems, drive EV adoption, and make buildings more energy efficient.