Investments of at least 30 billion euros will be required by 2030, as Greece is required to meet the needs exclusively for the development of new energy units, without including additional capital requirements concerning – among other things – the energy upgrading of houses, buildings and critical infrastructures, ” of the 9th Southeast European Energy Forum-SeeeF2025.
The challenge, as the EIB CEO said is not only technical or environmental, but primarily economic and institutional and saying it is an ambitious but absolutely necessary venture, stressed that it presupposes a wide mobilization of public and private resources, a clear regulatory,
“The question is clear and cannot be ignored: who will finance this energy transition, and on what terms?” He asked, and pointed out that as a key financier of the energy sector in Greece, the EIB does not seek guarantees of certainty, since it characteristically noted “we are not risking”.
In this context, he noted that what is needed is an environment in which investments can be evaluated, priced and supported by responsibility and realism.
The need for sustainable and realistic energy funding
The energy transition, as Mr Mylonas pointed out, is at its most critical turning point and has made impressive progress in the integration of renewable energy (RES), but these achievements are now accompanied by serious challenges that threaten the viability of its own.
Referring to the Annual Energy Conference – which has now been established as an institution – he hosted for the fifth consecutive year representatives of institutions, markets and financial sector. As he pointed out and transferred to the forum, energy is one of the most complex and strategic issues of our time, with constantly evolving aspects: from energy security and international pipelines, to the impact of the climate crisis and supply chain dependencies.
However, as Mr Mylonas hastened to emphasize, an issue remains consistently present at every conference and this is the need to accelerate RES to achieve green goals and effectively address climate change. “A issue in which banks – and especially the National Bank – have played a decisive role as key financiers of energy transition,” he said.
Victims of our success?
According to the EIB Managing Director, despite significant progress, the high degree of penetration of RES, without the necessary transformation of the operating framework for the electricity market, has caused new challenges. Volatility and uncertainty, both in prices and values, have intensified, creating severe functional and financial obstacles.
The image that is reflected today, as he noted, is that RES production is stochastic, as it depends on natural phenomena such as wind and sunshine, while its scattered distribution and limited interconnection burden the system and the abolition of guaranteed prices (Feed-in Tariffs). Euro200/MWh.
He added that the fixed price contracts (PPAS) expected as an alternative remain extremely low, Curtailments are already reaching 8 – 9% of the annual potential production and bank credit committees are increasingly facing. “Projects without a corporate guarantee are often considered non -banking viable,” he said.
“And all this at a time when the national objective is to increase RES participation to 75% of power generation by 2030,” Mr Mylonas said.
Examples to avoid and the need for systemic adjustment
Referring to the recent example of Spain, where the rapid penetration of RES without proper storage and reserve support raised serious balance issues, Mr Mylonas stressed that this “proves the need for immediate institutional interventions”.
In this context, he noted that the Greek market, despite significant efforts, continues to operate with restrictions and structural weaknesses, although as all stakeholders havetened to add to the need to transition to a more functional, transparent and predictable model.
Five priorities for a sustainable energy future
As a key funder of the energy market, the National Bank summarizes five axes of interventions that can support the funding of energy transition, according to him.
These are the network upgrade and enhancing interconnection. “The country exports only 5% of the energy produced, for a target of 15%, while the internal network remains fragmented. Infrastructure enhancement is imperative, “he said.
To increase the demand for electricity through electricity, he noted that demand remains under national targets and in this context emphasized that the acceleration of electricity and electric heating is decisive.
Speaking about the support of energy storage with fixed availability payments, he noted that storage projects require predictability of revenue. “The current mechanism covers only 0.8 GW, when estimated needs amount to at least 8 GW by 2030,” he said.
For the need to modernize short -term planning and measuring infrastructure, the EIB’s chief executive pointed out that the utilization of advanced prediction models and the widespread use of “smart meters” are essential for efficient management of demand and production.
Regarding the revenue of revenue stabilization mechanisms-CFDs, Mr Mylonas explained that, unlike the abolished feed-in tariffs, they can provide predictability without over-cost consumer or state budget. Among other things, he said that the funding of the funding of spare gas units was required, with a possible introduction of fixed availability payments.
The Forum is being organized today in Thessaloniki by the Hellenic American Chamber of Commerce and the Hellenic Energy Economics Association, in strategic cooperation with the Atlantic Council and the US Chamber of Energy Institute of the US Chamber of Commerce. This year’s forum focuses on the energy transformation of the area, focusing on interconnection, durability and innovation.