Greece's Offshore Wind Energy programme draws strong investment interest

Foreign investment groups expressed their strong interest in Greece’s Offshore Wind Farms (OWF) during the event organized by the Hellenic Hydrocarbons and Energy Resources Management Company (HEREMA), in the context of this year’s 29th Conference of the Parties (COP29), hosted in Baku, Azerbaijan between 11 and 22 November.

The event took place on 14 November at the Greek Pavilion of COP29 and started with a fireside chat between Greece’s Deputy Minister of Environment and Energy, Alexandra Sdoukou, Belgium’s Minister of Energy, Tinne Van der Straeten, and CEO of WindEurope Giles Dickson, which was moderated by the Chairman of the HEREMA BoD, Rikard Scoufias.

Ms. Sdoukou referred to the Greek State’s next steps regarding the implementation of National Offshore Wind Farm (OWF) Development Programme, setting as priorities the signing of the relevant Joint Ministerial Decision that will finalize the Organized Areas Development (OWFODA); engaging with local communities; and collecting necessary data from the upcoming wind and bathymetric surveys.

Ms. Van der Straeten highlighted the importance of offshore wind for Belgium, a country with a strong industry but lacking domestic energy resources. The minister explained that despite Belgium’s small coastline, her country has already succeeded in developing offshore wind farms with a capacity of 2.2GW, ranking second globally in terms of wind capacity per capita.

The event’s second panel, moderated by the CEO of HEREMA Aristofanis Stefatos, comprised members of the investment community, who confirmed their interest in the Greek market – as per relevant statements from the representatives of Masdar and Iberdrola. “We want to expand into offshore wind, leveraging the expertise of Terna Energy in the sector,” said Abdulaziz Alobaidli, Chief Operation Officer of Masdar, praising Greece’s National Programme for the Development of OWF.

Gonzalo Saenz de Miera, Global Director of Climate Change and Alliances at Iberdrola, also referred to the country’s attractive investment prospects, highlighting the advantages that Greece offers in the OWF sector, such as the three key conditions to attract further investment interest: minimization of business risk during the development phase; State support schemes and necessary clarity to facilitate the financing of projects; and creation of a local supply chain.

On his part, Konstantinos Mavros, CEO of PPC Renewables, shared that the pilot OWF project under development in Alexandroupolis will set the tone for future investments. He also added that the relevant studies (seabed, environmental, etc.) have already been launched, estimating that implementation will start within the next 18 months.

In closing, Astrid Rusås Kristoffersen, Director Group Research & Development of DNV, estimated that 72% of the total demand for green energy by 2050 will be for wind farms – onshore and offshore, either fixed-based or floating.

*Screenshot from Hellenic Wind Energy Association (HWEA/ELETAEN)*

Greece’s National Offshore Wind Farm Development Programme

The draft of the National Offshore Wind Farm (OWF) Development Programme was announced in late 2023 by the Hellenic Hydrocarbons and Energy Resources Management Company (HEREMA) and the Ministry of Environment and Energy.

The offshore wind program, which includes a strategic environmental impact assessment (SEIA), delineates 25 areas for OWF development, covering a total of 2,712 square kilometers, with an estimated minimum capacity of 12.4 GW. The majority of the proposed offshore areas are also suitable for floating wind power technology.

“We feel proud knowing that the submission of the program and the SEIA is the first step on a path that will create important opportunities for sustainable development, both economically and socially, and also optimistic to see the strong representation of the national and international investor community at today’s event. We are already preparing for the next steps in order to create the right framework for the rapid development of this new sector,” HEREMA’s CEO Aristofanis Stefatos said.

The plan, which has already been submitted to the Spatial Planning Directorate of the Ministry of Environment and Energy, qualifies ten eligible areas for development by 2030-2032. The overall capacity of approximately 4.9 GW is mainly for floating projects. The said zones do not include the marine area between Evros and Samothraki, which is defined as an area for the development of pilot offshore wind projects. Five regions selected for the first stage:

This is the list of Offshore Wind Farms Organized Development Areas (OWF-ODA) eligible for the medium-term development phase:

Eastern Crete, where it is estimated that projects with a total capacity of 800 MW will be developed;
Southern Rhodes, with a maximum installed capacity of between 300 MW and 550 MW;
Central Aegean, with a maximum installed capacity of between 200 MW and 450 MW;
Evia-Chios axis, with a maximum installed capacity of 300 MW;
Ionian Sea, with a maximum installed capacity of 450 MW.

The areas will be developed in two phases, but with the goal of at least 2 GW of offshore wind energy capacity by 2030. In addition to releasing its draft plan, the Greek government has also proceeded with issuing the first two licenses for pilot projects in the north Aegean. The licenses apply to the offshore area extending south of the coastline of the Regional Unit of Evros and north-northeast of Samothrace and are defined as an area for the development of pilot OWF projects with a total capacity of up to 600MW.

*Image of areas for offshore wind farms development from Enterprise Greece*

“Greece has an extremely strong offshore potential, mainly thanks to its climate and its strategic position on Europe’s energy map,” said Minister of Environment and Energy Theodoros Skylakakis. “The development of offshore wind farms will contribute, first and foremost, to ensuring our energy autonomy, but also to achieving the ambitious target of 12 GW by 2040-2045, making Greece a major green energy exporting country.”

In the past few years, Greece has ramped up renewable energy sources, which now account for more than 50% of the country’s power generation and is helping Greece export electricity to its neighbors in Southeast Europe. Combined with the development of its cross-border interconnections, Greece is emerging as an energy hub in the region.

In July 2022, parliament approved the country’s first law for offshore wind development, spurring interest from foreign investors. Among them, Norwegian energy giant Equinor has said it wants to invest in Greek offshore wind facilities while other major players, like Copenhagen Offshore Partners from Denmark, have entered into agreements with local companies for the joint development of offshore wind farms in Greece.

In a recent survey by consultancy EY, Greece was named as one of the world’s most dynamic investment destinations for renewable energy – and even the world’s top destination – as the government continues to rapidly promote the country’s clean energy transition.

Benefits of EUR 1.9 billion for the economy

In addition, HEREMA commissioned the Foundation for Economic and Industrial Research (IOBE) to conduct a study on the economic benefits of the development of offshore wind in Greece. It includes the assessment of the importance of developing a domestic supply chain for their construction and operation.

According to the study, the deployment of offshore wind can boost the gross domestic product by up to EUR 1.9 billion per year on average over the period 2024-2050 while annual government revenues can rise up to EUR 440 million, said George Maniatis, Head of IOBE’s Sectoral Studies Department. Over the same period, it can make a significant contribution to employment, supporting up to 44,400 jobs per year.

The Hellenic Wind Energy Association (HWEA/ELETAEN) said the national program is a positive step for the development of the sector. However, mistakes made in onshore wind must not be repeated, it warned. ΗWEA added that a flexible licensing system must be applied together with the rapid construction of international power interconnections to make the most of this opportunity.