The next major wave of investments in infrastructure projects is expected to be directed toward energy infrastructure, as due to geopolitical uncertainty, the European agenda has shifted from the green energy transition to energy independence and security, noted Theodoris Tzouros, Senior General Manager, Chief Corporate & Investment Banking of Piraeus, at the “Hellenic Growth Agora” of the National Development Fund held in the context of the 90th TIF.
In a discussion on the topic “Energy and Critical Infrastructure - The investments that strengthen the country’s role as a regional hub for energy and transport”, Mr. Tzouros stressed that Greece has proven that it can design, license, construct and finance major infrastructure projects. “The banking system is ready to continue supporting this course – with capital, with expertise and with long-term commitment,” he said characteristically.
The Chief Corporate & Investment Banking of Piraeus referred to the prerequisites required for infrastructure projects to be successfully implemented: a clear licensing framework that does not change every so often, an effective way of resolving disputes, companies with know-how and experience, sponsors willing to invest on a long-term basis, and a banking system capable of analyzing the long-term flows of projects and providing adequate financing throughout their lifetime.
Despite the fact that obstacles remain mainly on the side of bureaucracy and the complexity of the regulatory environment, as well as delays in the administration of justice, the country has acquired the ability to deliver major projects, Mr. Tzouros underlined, as the state, constructors and banks now work within a mature ecosystem of concessions and PPPs.
What is certain is that financing is not the problem, he added, as Greek banks have achieved significant credit expansion in recent years and have capital, willingness and expertise for large and complex infrastructure projects, while there is in fact no active role of foreign banks in the Greek project finance market.
Mr. Tzouros estimated that the next major wave of investments will be directed to energy infrastructure: First of all to storage and networks – the investment plans of the operators provide for approximately 1.5 billion euros annually, while the island interconnections program is progressing with a benefit for consumers estimated at 3.7 billion euros by 2034.
Then, to cross-border electricity transmission lines – with the Great Sea Interconnector taking the lead – which are a prerequisite for green energy exports and for Greece’s role as an energy hub of Southeastern Europe. And finally, to natural gas infrastructure, such as new FSRUs for LNG imports that support the Vertical Corridor.
Overall, energy interconnection needs are estimated at 10 to 15 billion euros, while investments in RES, storage and networks in Greece in the period 2026–2030 approach 11 billion euros, with financing needs of approximately 7.5 billion, Mr. Tzouros noted.