New framework makes 2022 a pivotal year for offshore wind in Greece

“There are important tasks such as marine planning that are rightly part of the state’s remit,” he explained, “but there are others in the framework that traditional inefficiencies in the way the Greek state works could slow down the process and are best left to the private sector.”

Mr Papastamatiou said the association also has concerns about grid connection as currently set out in the framework. “We would like to see the TSO ‘prebook’ grid connection capacity, so developers can be sure it will be ready when they need it and ensure 2 GW by 2030 really is possible,” said Mr Papastamatiou. “Greece is on the edge of Europe. We are not well-served by interconnections that would enable us to export energy, so the Greek grid needs to be ready.

“Above all, we believe the framework needs more clarity and more detail about timelines,” said Mr Papastamatiou. “That is what potential investors need to see.” He explained the support mechanism envisaged for offshore windfarms in Greek waters will be like that used for onshore wind, and “not dissimilar” from the contract for difference of the type widely and successfully used elsewhere in Europe.

The law does not specify specific areas for development, however, and these will need to be defined before awarding the first permits for surveys to interested investors.

The first projects are likely to be in Greece’s territorial waters, in areas less than 6 nautical miles from the coast, which will make coexistence with other users of the sea – such as tourism – an issue that must be carefully addressed.

The framework is ‘technologically agnostic’ about the kind of windfarms that will be developed, although in the longer term, Greece will be primarily a floating wind market. “Overall, it’s quite a good start,” Mr Papastamatiou concluded, “but in the interests of efficiency and effectiveness, we would like to see some of the roles currently assigned to the state and state agencies reduced.”

Ahead of publication of the framework, developers were jockeying for position in the Greek offshore wind market. In the recent months, Ocean Winds, the joint venture between EDP Renewables and Engie, announced it had teamed up with renewables developer Terna Energy to co-develop floating offshore wind projects in Greek waters.

RWE and Hellenic Petroleum Holdings, through their respective subsidiaries RWE Renewables and HELPE Renewables, are collaborating to explore opportunities to develop offshore windfarms in Greek waters. So too is Parkwind, which has teamed up with Intrakat, part of Intracom Holdings, a leading construction company in the country.

Floating wind company Hexicon has created a joint venture, Hexicon Power, with local company EAMAA, and in 2021, developer Copenhagen Infrastructure Partners set up a joint venture to explore offshore wind opportunities with Greek player Mytilineos.

However, as research by Aegir Insights suggests, there are many other developers keen to enter the market in the country. Among those cited in a report about the Greek market by Aegir Insights are Equinor and local companies Copelouzos, RF Energy and Cenergy, and more companies are expected to declare their hand now the framework has been published.

As the report on the Greek market makes clear, Greece has particularly good wind resources. In some areas in the Aegean and off the coast of Crete, mean wind speeds in range from 8 to 10 m/s.

Water depths off the coast of Greece will mean the market there will mainly be a floating one, but Aegir Insights said there are some pockets suitable for fixed-bottom projects. “Greece has a bottom-fixed offshore wind potential of 16 GW, but almost 500 GW of floating,” said the company, noting that most shallow floating sites are found close to shore or between islands, so intermediate or deep floating will eventually be needed.

“Good port infrastructure provides options for both construction and O&M from many bases, but upgrades will be needed to meet offshore wind requirements,” the report states.

“Most components for offshore wind in Greece are likely to be sourced from other countries, but some components may be delivered domestically. Grid connection options are good along most of the coast, and an upgrade plan for the transmission grid will help ensure stability and connection points for more renewable capacity.”

“The Greek economy is rebounding from the economic crisis, and at the same time, the country is set to phase out coal,” said Aegir Insights. “Electricity demand is set to grow over the next decade and with a target to reduce dependence on fossil fuels and to reach carbon neutrality by 2050, more renewable energy is needed to meet political targets.

“Gas is being used as a bridging fuel to reduce dependence on oil and coal and a target to shut down all brown coal plants by 2023 appears to be on track. Substantial progress has been made with renewable energy sources, which totalled ~40% of the electricity mix in 2021. Greece has a large solar pipeline and the country is expected to overachieve on a 2030 target of 10 GW. There is 4 GW of onshore wind installed in Greece.”

With more competition for land use, higher electricity demand, emerging floating technology and the scale offshore wind projects provide, Aegir Insights expects the offshore sector to take off if the framework enables it to do so.

As to which areas might be developed first, Aegir Insights said the Aegean is in focus, and there is potential for fixed and floating projects there. Also in the frame are areas further to the south around the Cyclades, Crete and Karpathos, which would be suitable for floating wind.

“The offshore wind framework is now published, but site allocation in 2023 and a first tender in 2026 might be optimistic,” Aegir Insights concluded. “Overall, however, Greece has all of the prerequisites to become a significant offshore wind market.”

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