Greece could generate billions of euros for its economy by developing a power connection to central Europe and exporting the country’s vast potential in renewable energy to consumers in Germany and elsewhere.

According to a new study by consultancy KPMG, the creation of the South East-North Electricity Highway – a project that Greece raised with its partners in Europe last year – could generate between €6.2 billion and €17.5 billion for the Greek economy, while also lowering electricity prices for consumers and enhancing Europe’s energy security.

“The development of an interconnection to central Europe could be the first electricity highway in the EU and part of the Priority Electricity Corridor of Central Eastern and South Eastern interconnections,” the study notes. “It targets the integration of markets, the reduction of electricity prices, the expansion of RES electricity, and EU’s overall security of supply.”

Over the last several years, Greece has emerged as a regional energy hub, serving both as a transshipment point for natural gas supplies to Southeast and Western Europe and as an exporter of electricity to its neighbors. That role is due to grow as the country’s national grid operator upgrades power connections with Bulgaria, Italy, North Macedonia, Albania and Turkey, and presses ahead with plans to connect Greece’s grid with Cyprus, Israel and Egypt.

The KPMG study also notes that Greece has led the rest of Europe in greening its power generating sector by sharply reducing its use of lignite as a fuel source and, at the same time, ramping up production from renewable sources, particularly solar power.

“Greece is enacting extensive reforms within its energy sector to promote decarbonization and encourage the
development of competitive markets. In absolute terms, the power generation sector in Greece has decreased its CO2 emissions by more than 58% compared to 2010 levels,” the report notes. “This is mainly attributed to the large decrease of lignite generation and the uptake of renewable energy. Additionally it can be noted that Greece’s previously mentioned reduction of 58% is significantly higher vs the 21% of the EU27 average.”