The Greek government has introduced its first legislative framework for hydrogen and renewable gases in parliament, aiming to guide the country’s future energy mix. While this marks a significant step, industry experts warn that the lack of financial support could hinder green hydrogen’s competitiveness, reports Balkan Green Energy News.
Refineries and heavy industries are already exploring green hydrogen projects, but the Ministry of Environment and Energy has ruled out subsidies or public funding for emerging technologies. The government’s stated aim is to keep energy transition costs low for consumers.
Professor Pantelis Kapros of NTUA noted that without subsidies, green hydrogen’s success will hinge on rising carbon prices under the EU’s Emissions Trading System (EU ETS). He estimates carbon would need to reach €140 per ton—twice today’s price—for green hydrogen to compete with grey hydrogen made from natural gas.
Despite these challenges, Greece sees a potential export advantage thanks to its growing solar capacity. However, experts warn that green hydrogen plants must operate for more than just 10 daytime hours to be economically viable. Additionally, Greece’s higher-than-average power prices, which contribute around 70% of electrolyzer operating costs, further complicate the economics.
Meanwhile, biomethane is emerging as a more practical alternative. It is less sensitive to power prices and can be injected directly into the gas grid. Deputy Minister Nikos Tsafos said biomethane has a defined role in the transition. Gas distributor Enaon EDA confirmed it is mapping out current and planned biomethane production sites for integration into its network.
