Shaping the future of energy in Southeast Europe

Greece is poised to emerge as a pivotal player in the Southeast European energy market, driven by new energy interconnections, infrastructural developments, and strategic acquisitions. This transformation is primarily fueled by two significant factors: the shift towards a more environmentally friendly energy mix and the diminishing reliance on Russian natural gas following the Ukraine invasion.

Key initiatives such as the acquisitions made by the Public Power Corporation (PPC) in Romania, and the anticipated expansions into Bulgaria and other regional markets, coupled with the proactive measures taken by the Independent Power Transmission Operator (IPTO) to fortify electrical interconnections, signify significant strides in this direction. Concurrently, major energy conglomerates are closely monitoring regional developments to capitalize on potential market penetrations.

Moreover, Prime Minister Kyriakos Mitsotakis’ recent visit to Serbia saw discussions on enhancing the interconnection capacity between Greece and Serbia, as reported by sources from the Athens-Macedonian News Agency (AMNA). This endeavor necessitates collaboration with the North Macedonian administrator MEPSO, in which IPTO has expressed interest in participating as a shareholder. However, investments, including those in North Macedonia, are reportedly on hold pending the outcome of the neighboring country’s elections.

The completion of the second interconnection with Bulgaria marks a milestone, with further interconnections on the horizon, including those with Italy (1000 megawatts by 2031), Albania (1600 MVA by 2030), North Macedonia (upgrading the existing Thessaloniki – Bitola line), and Turkey (second interconnection by 2029). These projects along the northern borders complement broader plans for major interconnections such as those linking Israel-Cyprus, Saudi Arabia, Egypt, as well as the forthcoming Green Aegean Interconnector line terminating in Germany via the Adriatic, spearheaded by IPTO.

PPC’s strategic vision for the Balkans was articulated recently in Washington DC by Giorgos Stassis, the company’s business head, during the 5th Southeast Europe & East Med Forum organized by Kathimerini English Edition, the Delphi Economic Forum, and the Hellenic American Leadership Council (HALC). [AMNA]