Pavlos Mylonas, CEO of the National Bank of Greece, addressed the bank’s efforts to facilitate the energy transition during his speech at the 10th conference of the Hellenic Association for Energy Economics (HAEE). He also discussed the challenges associated with financing energy projects.
Mylonas noted that energy projects have drawn significant funding from Greek banks in recent years, outpacing other sectors. However, securing financing for Renewable Energy Sources (RES) projects has become increasingly challenging.
He pointed out that RES, which were once considered “supplementary,” are now becoming more central to energy distribution. This transition, along with the intermittent nature of solar and wind energy, leads to fluctuations in energy supply.
Additionally, Mylonas raised concerns about the current inadequacies in energy storage infrastructure—having only 0.7 GW of installed capacity compared to a target of 6.3 GW by 2030. He also highlighted the limited cross-border energy connections, noting that Greece can import only 4.5% of its neighboring regions’ cumulative output, significantly below the European target of 15% for 2030.
Mylonas emphasized that uncertain cash flows complicate financing, underscoring the urgent need for action in the following areas:
- Investment in energy networks
- Investment in energy storage and the establishment of a “capacity availability payment” mechanism
- Adjustment of pricing mechanisms, including Contracts for Difference (CfDs) and increased use of Private Power Purchase Agreements (PPAs)
