Energy Diplomacy

ENERGY DIPLOMACY

Currently, the primary issue for our country, as well as for the countries of Central and Southeast Europe, is to reconcile the increased short-term energy security requirements with the need for parallel promotion of long-term decarbonization policies dictated by the EU's Climate Agenda and the Paris Agreement on Climate Change. This also involves the search for alternative sources and routes. To achieve the overall goals of the energy transition, we are developing synergies and attracting investments in clean energy sources, technologies, and infrastructure. The goal is to transform Greece into a hub for natural gas and a Gateway for clean "green" electricity.

Through interstate collaborations at regional and international level, we aim to:

• Optimize the use of energy resources,
• Transition to a cleaner and more sustainable energy mix,
• Enhance regional energy security and resilience against potential supply disruptions,
• Actively involve public and private stakeholders.

In this context, the Ministry of Foreign Affairs monitors the rapid developments in the energy sector, particularly the new directions and trends in the growing sector of Renewable Energy Sources (RES) and other clean forms of energy (e.g., hydrogen).

International and Regional Energy Networks – Collaborations

Greece's upgraded role on the energy map of Southeastern and Central Europe is marked by a series of projects related to natural gas, hydrogen, and electricity infrastructure, ensuring diversification of sources, routes, and suppliers.

Natural Gas Infrastructure

Trans Adriatic Pipeline (TAP): In the natural gas sector, the operation of the "Trans Adriatic Pipeline" (TAP) on the one hand enhances Greece's energy security and on the other hand upgrades the country's role in transporting natural gas from the Caspian to the European markets. The pipeline, operational since 2020, is the European section of the Southern Gas Corridor and supplies Greece with 1 billion cubic meters of natural gas annually from Azerbaijan, with the potential to expand the transported quantities to multiple European markets.

Greece-Bulgaria Interconnector (IGB): This is a key project and the first segment of the "Vertical Gas Corridor," inaugurated on the 1^st of October 2022. As a Project of Common European Interest (PCI), it reshapes the "energy map" of the broader region and inaugurates a completely new and secure route for diversified and secure natural gas deliveries.

A key component of the "Vertical Gas Corridor" is the Floating Storage and Regasification Unit (FSRU) in Alexandroupolis, the first in Greece and Southeastern Europe, and the LNG Terminal in Alexandroupolis, which started commercial operation on October 1^st, 2024. The FSRU is connected to the National Gas Transmission System and, through it, to the Greece-Bulgaria Interconnector (IGB). The unit will deliver natural gas to Bulgaria, Romania, Moldova, and Ukraine to the east, and Hungary and Slovakia to the west.

This officially marks the upgrade of the Vertical Gas Corridor to a New South-North Energy Corridor, with Greece at the forefront.

Electricity Interconnection with Saudi Arabia

The Memorandum of Understanding in the Energy sector signed between the two countries in Athens on July 26, 2022, also includes the construction of an electricity interconnection for exporting renewable electricity to Greece and the EU (through our country). This energy project of strategic significance will connect Europe with the Arabian Peninsula for the first time, enabling the utilization of large quantities of "green" energy produced in different geographical and climatic zones.

The project will bring significant benefits to both countries, given Saudi Arabia's position as one of the largest energy exporters and Greece's interest in diversifying energy sources, strengthening its energy infrastructure and role in the green energy sector, while contributing to the energy security and the reduction of carbon dioxide emissions in the EU.

Renewable Energy Sources

Currently, Greece ranks 2^nd globally in terms of the share of RES in the electricity generation mix. According to the latest RECAI ranking (first half of 2024), our country achieved a historic high of 57% electricity production from RES in 2023. It is also expected to achieve the national target of 80% electricity from RES by 2027.

To achieve this ambitious goal, Greece plans to leverage its vast onshore and offshore wind potential. The development of offshore wind energy, in particular, is considered a game changer, as the Aegean Sea has the highest wind potential in the Eastern Mediterranean region.

EU Projects of Common Interest (PCI):

The 6^th EU List of Projects of Common Interest (PCI) includes the following projects of Greek interest, which are also expected to be included in the upcoming 7^th List of Projects of Common/Mutual Interest:

1. Greece-Cyprus-Israel Electricity Interconnection/Great Sea Interconnector-GSI (implemented by IPTO): The electricity interconnection between Greece, Cyprus, and Israel (Great Sea Interconnector), formerly known as the EuroAsia Interconnector, is a project that will end Cyprus' energy isolation while connecting Israel to the EU energy market. The implementation timeline is set for 2027 for the Crete-Cyprus segment and 2029 for the Cyprus-Israel segment. The project is being implemented, as of late 2023, by the Independent Power Transmission Operator of Greece (IPTO).
2. Amfilochia Hydro Pumped Storage Complex (implemented by TERNA ENERGY),
3. Ptolemaida Battery Energy Storage System (implemented by EUNICE ENERGY GROUP),
4. Greece-Bulgaria Hydrogen Interconnection (implemented by DESFA): The Greece-Bulgaria Hydrogen Network Interconnection Project includes the internal hydrogen infrastructure in Greece up to the border with Bulgaria and the internal hydrogen infrastructure in Bulgaria up to the border with Greece. The goal of the project, which has a completion horizon of 2030 and a budget of approximately €1 billion, is the development of a cross-border hydrogen transport infrastructure (Dedicated H2 Pipeline) spanning 540 km in the context of the development of hydrogen technologies and systems and the future creation of a hydrogen market in the EU, both of which align with the EU's energy and climate goals as set out in the "Paris Agreement on Climate Change". The pipeline will serve as the first segment of the future Pan-European Hydrogen Network (European Hydrogen Backbone), specifically the future "South-East European Hydrogen Corridor" (SEEHyC), leveraging Greece's strategic position for producing low-cost green hydrogen and exporting clean energy to Central Europe, where high demand is expected in the future.
5. Prinos CO2 Storage (implemented by ENERGEAN PLC):EnEarth, a subsidiary of Energean, is managing the CO2 storage project in Prinos, the first of its kind in Southeast Europe. As part of the first phase, a pipeline will be developed to transport up to 1 million tons of CO2 per year (emitted by industries) in compressed form from the onshore facilities to the offshore storage location. The project's goal is to contribute to local and regional efforts to eliminate carbon emissions and is an integral part of the Mediterranean Strategic CCS Plan developed by France, Italy, and Greece, aiming to create the first industrial/commercial-scale CO2 storage hub in the Southeastern Mediterranean. After the approval of state aid worth €150 million by the European Commission (October 2024), the final investment decision (FID) is expected in 2025, and the operating license is expected to be granted in 2026. In the second phase, starting in 2028, the storage capacity will be expanded to up to 3 million tons of CO2 per year, with CO2 being transported in liquid form by ships from Greece and neighboring countries.
6. EastMed Gas Pipeline (implemented by IGI POSEIDON): The project is still at an early stage of implementation.

Additionally, the Greece - Egypt Electricity Interconnection /GREGY (ELICA Mediterranean Interconnector) is included as a Project of Mutual Interest (PMI) in the first such EU List of Projects. It involves the electricity interconnection of the Egyptian and Greek electricity grids through subsea cables and high-voltage direct current (HVDC) transmission. The project aims to transport 100% green energy from Egypt to Attica and, from there, to the European market and it is expected to be completed within five years.

The Greece-Egypt Electricity Interconnection (GREGY Interconnector) is part of the creation of "green" energy corridors that will connect the South with the North, with significant geopolitical benefits for Greece, strengthening its role as a Green Energy Hub in the Mediterranean and the EU. The project will transport green electricity under competitive terms, which will, on the one hand, be consumed in Greece by the Greek industry, while also being used for the production of green hydrogen and green methanol, and on the other hand, will be exported to the EU. The green energy of GREGY will enhance energy supply security by offering diversification of energy sources, while it is expected to contribute to addressing the climate crisis and reducing dependence on fossil fuels and natural gas, decreasing its use by 4.5 billion cubic meters and CO2 emissions by 10 million tons annually.

IMEEC Corridor

During the G20 Summit (New Delhi, September 9-10, 2023), the US, India, Saudi Arabia, UAE, France, Germany, Italy, and the EU signed a Memorandum of Understanding for the creation of an Economic Corridor connecting India with the Middle East (via UAE, Saudi Arabia, Jordan, Israel) and Europe (India-Middle East-Europe Economic Corridor / IMEEC). The project plans to include: a) transportation of goods, b) energy transfer (green hydrogen and electricity), and c) digital interconnection and data transfer between countries. Greece holds a prominent position in the related plans and, given its geographical location, significant infrastructure (ports, railways, roads), and the very important initiatives and collaborations it is developing in the energy sector, it is expected to play a catalytic role in this ambitious project.