This surge in gas usage is primarily driven by financial objectives rather than immediate supply concerns. Greece’s efforts to enhance its energy export capacity saw the nation transition from a net importer of 8.8 terawatt-hours (TWh) in 2020 to a net exporter of 0.7 TWh by 2024. Analysts Jonathan Bruegel and Ana Maria Jaller-Makarewicz suggest that Greece’s increased gas-fired power generation is a strategic move to capitalize on the electricity market, albeit at the expense of its decarbonization targets.
Dr. Eleni Papadopoulos, an energy policy expert at the National and Kapodistrian University of Athens, comments, “Greece’s current trajectory poses a dilemma. While the economic benefits of becoming a regional energy hub are apparent, this strategy conflicts with our long-term climate goals.”
Greece’s reliance on gas-fired power plants could result in higher electricity bills for consumers if a capacity remuneration mechanism (CRM) is introduced. Such mechanisms, which guarantee the availability of gas-fired power to ensure electricity supply, could further entrench Greece’s dependency on fossil fuels. The Green Tank, an independent think tank, underscores that CRMs might distort market fundamentals by prolonging the life of costly power plants.
The increase in gas consumption from April 2024 to March 2025—up by 19% compared to a reference period—underscores the nation’s pivot towards natural gas amidst volatile markets. In 2024, Greece paid some of the highest prices for imported LNG in the EU, averaging €53 per megawatt-hour for US LNG, far exceeding the EU average of €34.
Despite the current trend, Greece possesses outstanding solar and wind resources. Renewable energy has reached grid power parity, offering a sustainable path forward. The International Energy Agency emphasizes that a shift towards renewables would align with both EU climate targets and global carbon reduction commitments.
While Greece’s immediate goal of becoming a regional energy hub is economically enticing, experts warn that long-term sustainability lies in capitalizing on renewable resources rather than increasing gas infrastructure. Balancing these competing priorities remains a critical challenge for Greece as it navigates its energy future.
