At a time when, on the EU’s northern and eastern borders, attention is focused on redefining relations with the UK, Iceland and Greenland, shaping a European Arctic policy, and on Ukraine and Moldova, Greece must finally take the lead in establishing the Mediterranean as a central pillar of Europe’s security and prosperity.
The Mediterranean has the potential to become one of the world’s most important hubs for clean energy production and clean technology development.
The new European initiative T-MED (Trans-Mediterranean Renewable Energy and Clean-Tech Cooperation Initiative) aims to turn this shared prospect into concrete projects and lasting partnerships, making the green transition a driver of shared prosperity and stability on both sides of the Mediterranean.
For example, the Middle East and North Africa have considerable solar and wind potential, with generation costs up to 30-40% lower than in the EU and technical renewable energy potential of more than 2,300 GW. Yet in some countries renewables account for just 1-3% of the energy mix, while electricity demand could rise by 50% by 2035. Harnessing this advantage requires capital, grids, storage, stable rules and a skilled workforce.
The T-MED initiative is a key instrument of the second pillar of the Pact for the Mediterranean and is linked to the European Global Gateway strategy. It has five priorities: i) mobilising investment, ii) improving the regulatory environment, iii) developing skills, iv) modernising energy systems and cross-border trade in renewable energy, and v) creating a clean-tech industrial ecosystem.
With specific targets for 2035, including mobilising €25bn in investment, and tools such as more than €5bn in guarantee capacity through EFSD+ to reduce risks and mobilise public and private capital, the initiative aims to help develop at least 15 GW of additional renewable energy capacity in partner countries.
Its goals include: a) developing a portfolio of three cross-border electricity or hydrogen projects ready for a Final Investment Decision, b) reforms in at least five partner countries, and c) structured industrial partnerships across at least three clean technology value chains. The T-MED Skills Agenda provides for training and upskilling at least 100,000 workers.
For Greece, the T-MED initiative represents an outstanding geopolitical and development opportunity. Our immediate proximity to North Africa and the Middle East means that any geopolitical, economic or social upheaval in those countries can have significant adverse effects on us (e.g. migration).
Greece can therefore take concrete initiatives to promote and facilitate the implementation of T-MED, both at European level and bilaterally with these countries.
Moreover, the long-term creation of a zone of economic prosperity, social progress and security on our southern borders would not only improve our security, but also create additional opportunities for domestic economic growth.
Greece, for example, could serve as a gateway for importing green electricity and hydrogen from the Mediterranean, either through cables and pipelines or by making use of our shipping industry. It could also develop partnerships in areas such as healthcare services and tourism.
We cannot afford to ignore the mobilisation of €25bn in investment in our wider neighbourhood. The T-MED initiative does not involve investment on EU territory, but with the Greek government properly coordinating Greek businesses and universities and research institutes, and pursuing appropriate economic diplomacy, many of the planned investments could be taken on by Greek companies and universities, employing Greek scientists and workers as well.
Since 2010, Greek companies have built up a significant track record in delivering major renewable energy projects, constructing conventional power plants, improving energy efficiency through measures such as renovations and solar thermal systems, and developing major electricity interconnectors and pipelines, including the construction of cables and pipes, as well as managing and developing such large-scale projects as a whole.
This prospect is not just for large corporate groups. Greek small and medium-sized enterprises can seek a role in the new supply chains as suppliers, subcontractors and providers of specialist services, even if they lack the scale to take on projects worth hundreds of millions of euros on their own. This will, however, require mapping out mature projects, identifying Greece’s productive capabilities and supporting consortia bidding for projects and contracts.
Geography only delivers when it is backed by a coherent national plan aimed at establishing the country as a hub for producing and exporting energy, products and services, rather than merely as a transit centre. Opportunities such as T-MED are continually emerging, provided Greece’s governments have the vision and consistency to capitalise on them.
* Member of the European Parliament, Vice-President of the Socialists and Democrats (S&D), former minister.