Maria Rita Galli on HOW IS THE GEOPOLITICAL CRISIS TRANSFORMING THE ENERGY LANDSCAPE

Summary

The speaker highlights the successful integration of renewable energy and natural gas in Greece, where renewables can exceed 60% of energy production, complemented by gas during less favorable conditions. They emphasize the role of infrastructure in enabling this cooperation and the need for natural gas to decarbonize. The script discusses Greece's strategic position during the 2022 geopolitical crisis, its investment in infrastructure, and the challenges posed by volatile gas markets and cheap Russian gas imports, which hinder the development of projects like the Vertical Corridor.

Takeaways

• 🌬️ Greece has successfully integrated renewable energy with natural gas, where on some days wind and solar power contribute over 60% of the total energy production.
• 🌞 The success of renewable energy in Greece is complemented by natural gas, which steps in during periods of low wind or solar availability, accounting for 60% of the electricity production on those days.
• 🔄 Natural gas infrastructure acts as a physical storage medium for energy, enabling the cooperation and integration of renewable and gas energy sources.
• 📉 The need for natural gas to decarbonize is emphasized, highlighting the search for better ways to reduce its environmental impact while maintaining its role in the energy mix.
• 🌐 The geopolitical crisis of 2022 highlighted the critical role of infrastructure, with Greece's investment in the Revithoussa terminal and TAP connection proving beneficial during the crisis.
• 🚀 Greece significantly reduced its import of Russian gas to nearly zero by importing around 80 cargos of LNG, demonstrating the country's adaptability and strategic energy management.
• 🤝 Public-private cooperation has been key in promoting further infrastructure development, with rapid approval of significant investments in compressor stations and interconnectors.
• 🔩 Infrastructure projects under construction will enhance Greece's capacity to export and supply gas to the vertical Corridor, with an expected increase to 8.5 billion cubic meters from various sources by mid-next year.
• 📝 The signing of the memorandum for the vertical Corridor and its extension to include Mová Ukraine and Slovak represents significant progress in regional energy cooperation.
• 🔄 Despite progress, the volatility of the energy market, with Greece currently importing almost 60% of Russian gas at cheap prices, poses challenges to the development and financial viability of projects like the vertical Corridor.
• 💡 The need for both private and public sectors to overcome short-term market volatility is stressed, as infrastructure investments are long-term and should not be based on current low prices of Russian gas.

Q & A

What is the role of natural gas infrastructures in the region according to the speaker?

The speaker highlights the crucial role of natural gas infrastructures in the region, particularly in enabling the cooperation and integration between renewable energy sources and natural gas, ensuring the stability of the energy system.

How does Greece exemplify the successful integration of renewable energy with natural gas?

In Greece, there are days when wind and solar energy contribute over 60% of the total energy production. The success of this integration is attributed to the natural gas infrastructure, which provides the necessary energy storage and backup when renewable sources are not producing enough power.

What is the significance of the 2022 geopolitical crisis for Greece's energy infrastructure?

The 2022 geopolitical crisis highlighted Greece's preparedness due to previous investments in energy infrastructure, such as the expansion of the Revithoussa terminal and the TAP connection. This allowed Greece to play a significant role in energy supply not only for itself but also for neighboring countries.

How did Greece manage to reduce its import of Russian gas in 2022?

Greece managed to reduce its import of Russian gas almost to zero by importing nearly 80 cargos of LNG, which was facilitated by its strategic investments in energy infrastructure.

What is the importance of public-private cooperation in promoting further infrastructure development according to the speaker?

The speaker emphasizes the importance of public-private cooperation in rapidly approving significant investments in infrastructure, such as compressor stations and interconnectors, which are part of the national gas transmission system.

What is the Vertical Corridor project and how does it relate to Greece's energy strategy?

The Vertical Corridor is a project aimed at enabling Greece to export and supply different sources of gas to the region, with the capacity to feed 8.5 billion cubic meters of gas. It is a significant part of Greece's strategy to enhance its energy security and support the region's energy needs.

What challenges does the current volatile energy market present for the development of projects like the Vertical Corridor?

The current market volatility, characterized by cheap Russian gas flooding Southeast Europe, creates obstacles for the development and financial viability of projects like the Vertical Corridor. Market players are hesitant to make long-term commitments due to uncertainty about the role of gas and the sustainability of current price levels.

How has Greece's energy situation evolved in the last few months according to the speaker?

Despite previous progress, Greece is currently importing almost 60% of Russian gas, which is sold at very cheap prices, creating a significant obstacle for the import of LNG and the development of projects like the Vertical Corridor.

What does the speaker suggest as a necessary approach to overcome short-term market volatility?

The speaker suggests that both the private and public sectors need to work together to ensure that investments in infrastructure can overcome short-term volatility, as these are long-term investments that cannot be based on short-term price fluctuations.

What is the importance of transparency in the regulatory framework for the energy sector according to the speaker?

Transparency in the regulatory framework is crucial as it helps in understanding the source of gas and its flow, which is essential for making informed decisions and ensuring the stability and security of the energy supply.