"Electricity and gas committee" proposal for strong Turkish-Greek cooperation in energy
Within the scope of the 1st Turkish-Greek Energy Forum, Stambolis answered the questions of the AA correspondent regarding the energy cooperation between the two countries.
Stambolis, who categorised the areas of cooperation in energy as "immediate and more forward-looking", said: "Electricity is at the top of the immediate areas, because we are already exchanging electricity. We have an electricity connection line. The two countries decided to build a second connection line. As the system is electrified, more electricity will be needed. Therefore, interconnections are becoming very important."
Stambolis stated that the second connection line planned between Nea Santa and Babaeski coincides with the increase in renewable energy production as well as the anticipated increase in electricity production with the commissioning of the nuclear power plant in Türkiye:
"The development of this is a very important strategic step. It will also promote electricity trade between the two countries. Türkiye's energy exchange EPİAŞ is doing a very important job, as is our energy exchange HEnEx. So the next step would be some kind of co-operation between EPİAŞ and HEnEx."
Stating that natural gas will have an important place in the energy transformation, Stambolis said, "In this field, the two countries can work together in terms of coordination and security of policy moves."
"Türkiye's gas market is very developed and the country is the main energy hub of the region. There are many gas entry points in Türkiye, and Sakarya has started producing its own gas," Stambolis said.
Pointing out that the existing natural gas pipeline between the two countries has been in operation for more than 15 years, Stambolis said that although it is a large line, this line has not been sufficiently utilised.
"We have the possibility to buy more gas from Türkiye, provided that we develop the purchasing area on the Greek side," Stambolis said.
Drawing attention to the floating LNG terminals owned by the two countries, Stambolis said, "LNG is something that can be bought and sold a lot. I can foresee a situation where we will trade LNG like the trade of petroleum products between Greece and Türkiye."
"The next stage in developing a broader co-operation between Greece and Türkiye and perhaps other countries in the region would be to establish the EastMed energy market where you can trade oil and gas regionally. You have EPİAŞ, we have HEnEx. They can create some common products both in the derivatives market and in the physical market."
Pointing out that the two countries can exchange information on many issues, Stambolis said:
"I think the establishment of a standing committee on electricity and gas between the two countries is very important in terms of interaction. It can work to the benefit of both countries. If we were to make a proposal to the two governments, as an institute that follows this field, we would say set up a joint electricity and gas committee that would meet regularly throughout the year, exchange information and try to gain experience from each other. This is a specific proposal."
"Co-operation is the key"
Michael Thomadakis, Director of Strategy and Business Development of DESFA, the natural gas transmission system operator of Greece, stated that one of the first projects envisaged in bilateral cooperation is the opening of interconnection lines and said, "The more the electricity grids are interconnected, the better it will be."
Thomadakis stated that renewable energy sources, which are included in the system in large amounts, cause instability:
"Instability is addressed in 3 ways. The first is to cut renewable energy, which is out of the question and not always possible. The second way is to send production to consumption. This is why electricity connection lines are extremely important. Because you can exchange your surplus production instantly or you can meet your deficit production from your neighbour. This is a very important element. Electricity transmission is not like gas, it is instantaneous. Therefore, it is a necessity to provide what they call backup power."
Emphasising that the transition to renewable energy requires a lot of cooperation at the operators' level, Thomadakis said: "For this, the market needs to support this. If EPİAŞ and HEnEx find a way, which is very common in Europe, and we can do the same here between the two countries, then trade will facilitate the smooth operation of the basic physical systems between Türkiye and Greece. The key is co-operation. We need more frequent and closer co-operation between individuals involved in the sector."
Thomadakis stated that the natural gas pipeline between Türkiye and Greece is a great opportunity for both countries and should be utilised well and called on Turkish sellers to buy more capacity.
Referring to Türkiye's goal of becoming a natural gas hub, Thomadakis said that the country would be a highly successful gas hub if it had an open market.
Regarding energy co-operation, Thomadakis said, "We should talk to each other more often at the working level. This is very important because politicians follow what the market wants at the end of the day. Let people on both sides of the border talk to each other and find ways of co-operation. One finds out what the other needs. I think this is the key issue."
Türkiye-Greece energy co-operation
In addition to the mutual trade of petroleum products, Türkiye and Greece also cooperate in the fields of electricity and natural gas with the joint projects implemented in the last 20 years. Geographically located in an important position, the two countries have the opportunity to cooperate in many different fields of energy.
President Recep Tayyip Erdogan visited Athens on 7 December 2023, after 6 years, as part of the 5th meeting of the High-Level Cooperation Council between Greece and Türkiye.
During the visit, 15 important agreements, memoranda of understanding and joint declarations foreseeing cooperation in areas such as education, energy, transport, tourism and trade were signed.
Greek Prime Minister Kiryakos Mitsotakis stated on 18 April that the date of his meeting with President Erdoğan in Ankara was set for 13 May.