A decade ago, Greece turned to green power as a solution to a crippling financial crisis. The rapid transition to renewable energy sources, including wind turbines and solar panels, allowed Greece to generate nearly two-thirds of its electricity sustainably. However, Greece is now shifting its focus back to fossil fuels, particularly natural gas, in a bid to become a major supplier to Europe.
Investments in natural gas infrastructure, funded by Greek and European Union subsidies, are reshaping the country’s energy landscape. Greece aims to play a key role in European energy security by developing pipelines and terminals to facilitate the import and distribution of natural gas from the United States.
While natural gas is seen as a cleaner alternative to coal and oil, critics argue that renewables are becoming increasingly affordable and reliable. Concerns about the environmental impact of natural gas, including its contribution to climate change, have led to a reevaluation of its role in the global energy mix.
American gas companies stand to benefit from Greece’s pivot to natural gas, with the United States increasing its exports of liquefied natural gas to Europe. The strategic positioning of Greece as an import hub for natural gas reflects broader geopolitical considerations, such as reducing dependence on Russian gas.
Despite the economic and environmental uncertainties surrounding natural gas investments in Europe, Greece continues to pursue new gas infrastructure projects. The potential for overinvestment in gas infrastructure, fueled by public subsidies, raises questions about the long-term sustainability of such initiatives.
As Greece navigates its energy transition, balancing the demands of geopolitical interests, economic viability, and environmental concerns will be crucial in shaping the country’s energy future.