Greece, Italy and Cyprus shift away
from renewable energy strategies, return to oil and gas.
International News Desk
According to Global times News Agancy Europe,Greece, Italy, and Cyprus are gradually stepping back from renewable energy strategies and refocusing on oil and gas production, according to industry sources.Matios Rigas, CEO of the Greek energy company Energean Group, told the Financial Times, cited by Report, that several Mediterranean countries have shown willingness to adjust their approach following Russia’s full-scale invasion of Ukraine in 2022, which upended European energy markets.Five to seven years ago, the conversation in Greece was all about green investments and closing lignite-fired power plants. Now, drilling projects-such as our joint venture with ExxonMobil in western Greece-are back on the agenda,” Rigas said, adding that Greece could potentially achieve energy independence.He also noted that Italy is actively considering new geological exploration projects, though these plans were off the table just a few years ago. A court recently overturned Italy’s ban on new exploration activities. Rigas criticized European capitals for having "pursued the wrong course” in their renewable energy initiatives in recent years.While European countries continue to invest heavily in renewables, the transition slowed last year, particularly in regions where alternative fuels like hydrogen remain expensive. As a result, oil companies are now counting on fossil fuels for the long term and seeking to secure larger reserves.Rigas added that Europe’s long-term gas projects will face competition from LNG supplies from the US and Qatar, and potentially from Russia once the war in Ukraine ends. He emphasized that gas suppliers should negotiate long-term contracts with consumers, including industrial groups and power plants, to manage market uncertainty.In a related development, ExxonMobil signed an agreement in Athens to take a 60% stake in a consortium with Energean and Helleniq Energy to conduct exploratory drilling on "Block-2” in the Ionian Sea, off Greece’s western coast.