The energy sector: developments and prospects

The crisis that hit the Greek economy over 2008-2016, made clear that the economy’s growth model was characterised by structural weaknesses. During the current transition period, it is imperative to develop a new growth model that will rely largely on investment. Moreover, investment should be directed to sectors with major comparative advantages. The energy sector can greatly improve Greece’s economic prospects, as it has three major comparative advantages: significant energy sources key strategic position and fairly clear regulations. At the current juncture, the Greek energy sector is marked by considerable weaknesses, such as high energy consumption per unit of GDP, strong dependency on energy imports, limited use of renewable energy source, and high prices. Consequently, any policy measure addressing those weaknesses is expected to have multiple positive effects on economic activity. The recent policy measures aim to change the energy mix, to ensure energy supply security and to open-up the energy market. What is warranted on the Greek part is, (i) to create a tendering system that is characterised by transparency, so as to attract investors and, (ii) to raise public awareness about the aims and the benefits of the policies, so that the Greek society takes the ownership of the policies.