Greece's energy consumption
Greece's energy consumption is characterized by a diverse mix of sources, with petroleum products being the largest contributor, accounting for 52.4% of the energy supply as of 2021. Historically, lignite served as the primary fuel for electricity generation, comprising around 80% of the energy supply in the 20th century; however, Greece aims to phase out lignite by 2028. The country's energy landscape has undergone significant changes since World War II, when energy demand was low due to limited industrial development and a largely agricultural economy. The establishment of the Public Power Corporation in 1950 marked the beginning of a coordinated national energy policy.
The transportation sector emerged as the largest energy consumer in 2021, representing 36% of total consumption, while natural gas also gained prominence, providing 28.6% of energy supplies. Renewable energy sources have seen substantial growth, generating approximately 20% of the country's energy in 2022, with wind power leading the way. Greece relies heavily on imported oil, primarily from countries such as Iran, Libya, and Saudi Arabia. The country has also developed a substantial refining capacity to meet both domestic needs and export demands, resulting in Greece becoming a net exporter of gasoline. Overall, Greece's energy sector reflects its evolving economic conditions, infrastructure development, and ongoing efforts toward energy diversification and sustainability.
On this Page
Subject Terms
Greece's energy consumption
Official Name: Hellenic Republic.
Summary: Lignitem, a low-carbon form of brown coal, is Greece’s “national fuel,” while petroleum products satisfy the largest portion of its energy consumption.
After World War II, the Greek economy was based in the agricultural sector, characterized by a low level of industrial development relative to the rest of Western Europe. In addition, the majority of the Greek countryside was not connected to the grid and the transportation sector was still in its infancy, resulting in low energy demand. At this time, the only modern power plant in operation was located in the greater Athens area, running on imported oil. In 1950, the Public Power Corporation (PPC, or DEI in Greek) was established with the goal of mapping out and implementing a national energy policy. By 1955, four major thermal power plants were operating, and in 1956 hydroelectric production made its appearance. The annual electricity consumption per capita in 1950 was only 88 kilowatt-hours; by 1960, it had increased to 265 kilowatt-hours and by 1970 to 976 kilowatt-hours.
The modern Greek energy sector can be defined as intensive. During the years between 1995 and 2006, the Greek economy showed improvement, and the annual gross domestic product (GDP) was close to 4 percent. Because economic development is connected with the energy demand; final energy consumption between 1990 and 2006 increased by 50 percent. However, the Greek economy fell on hard times in the late 2000s and 2010s, with the country suffering through a deep economic recession from 2009 to 2019. As a result, the demand for energy in Greece fell by 29 percent from 2000 to 2022.
Because the transportation sector was the nation’s largest energy consumer in 2021 (36 percent of total consumption), the demand for petroleum made oil accounted for 52.4 percent of Greece’s energy supply in 2021. Natural gas provided 28.6 percent of the nation’s energy, renewable energy, such as wind and solar, came in at 9.2 percent, coal was at 8.3 percent, followed by biofuels and hydropower.
Energy Sources in Greece
At one time, lignite was the principal fuel for electricity generation in Greece. It comprised about 80 percent of the primary energy supply of the country in the twentieth century, but Greece was making an effort to phase out the fuel in the twenty-first century, setting a goal of 2028 for a complete end to lignite consumption.
Oil remains the dominant energy source, accounting for 52.4 percent of the primary energy power supply as of 2021. It was used in the transportation and household sectors, which together accounted for 63 percent of the country’s final energy consumption in 2021. Unlike lignite, oil reserves in Greek territory are insufficient. The Greek oil fields are located in northern Greece in the Gulf of Kavala. The Prinos oil field is the main structure in the Prinos-Kavala basin and covers an area of 2.5 square miles (4 square kilometers). It was discovered in 1973 and developed in 1974 and 1980. Further investigation in the area revealed two more oil fields, Epsilon and Prinos North, in 1990 and 1994 respectively.
All the oil demand of the Greek market depends on imports. In 2022, Greece imported $13.1 billion worth of crude oil, $8.38 billion of natural gas liquids (NGLs), and $6.69 billion of refined petroleum. Members of the Organisation for Economic Co-operation and Development (OECD) such as Iran, Libya, and Saudi Arabia, as well as the Russian Federation, have been major sources of crude oil imports.
In the early 2020s, there were four refineries in Greece, with a total crude distillation capacity of around 528,000 barrels per day. Roughly two-thirds of this capacity was owned by Hellenic Petroleum, including two refineries located in the Athens area and a third one near Thessaloniki. The refinery capacity is enough to cover both domestic needs and exports. Greece’s exports of oil products increased by 336 percent between 2000 and 2022. Greece was a net exporter of gasoline.
The use of natural gas in the Greek energy supply jumped by 220 percent from 2000 to 2022, when gas accounted for 28.1 percent of the nation’s energy supply. Both industrial and residential sources use the most gas, each at 34 percent. In 2022, natural gas produced 18,929 kilowatt hours of electricity, about 38 percent of the nation’s total.
In 2022, Greece generated about 20 percent of its energy from renewable sources, an increase of 157 percent from 2000. Wind power generated the most energy at 48.5 percent, followed by solar at 30 percent, and hydropower at 20.6 percent. Biofuels and waste provided 7.1 percent. Wind power accounted for 22 percent of all electricity generated in 2022, solar accounted for 14 percent, hydropower for 9.3 percent, and biofuels for .05 percent.
The Greek electricity system was developed mainly in the 1950s. Utilizing the domestic energy sources, thermal power plants were fueled mainly by lignite. Most of the electricity was generated in northern Greece. The first big hydroelectric plant was built in mid-1960s in central Greece at Kremasta, an artificial lake. In 2000, Heron Corporation was established as a subsidiary of GEK-TERNA Group, which constructed the first independent power plant in Greece. In 2010, Heron II, the Heron Corporation’s second power plant, was completed and was successfully connected to the Greek power system.
Greece’s diverse topography has led to an electric infrastructure that consists of a grid-connected system on the mainland, with certain islands linked to it via submerged lines, as well as independent island systems. The autonomous islands generate electricity based on oil-burning gas turbines, as well as steam turbines and combined-cycle technologies. The grid system is extended to a net of nearly 133,595 miles (215,000 kilometers) and also interconnects with the grids of the neighboring countries of Italy, Macedonia (FYROM), Albania, and Bulgaria.
Bibliography
EU Energy in Figures. Publications Office of the European Union, 2023, op.europa.eu/en/publication-detail/-/publication/bb9f16ee-642f-11ee-9220-01aa75ed71a1/. Accessed 1 Aug. 2024.
Fortsakis, Theodore. Energy Law in Greece. Wolters Kluwer, 2009.
"Greece." CIA World Factbook, 30 July 2024, www.cia.gov/the-world-factbook/countries/greece/. Accessed 1 Aug. 2024.
"Greece." International Energy Agency, 2024, www.iea.org/countries/greece. Accessed 1 Aug. 2024.
"Greece." US Energy Information Administration, 2023, www.eia.gov/international/overview/country/GRC. Accessed 1 Aug. 2024.