Navigating the Greek Energy Crisis through a Multidimensional Approach: A Review Article

Abstract

Following the required adjustments made by the European Union (EU) to adequately absorb the negative social and economic impacts of the COVID-19 pandemic, the EU is once again confronting a crisis. The extended fiscal instability and environmental imbalance resulting from the energy crisis, primarily caused by rising energy prices owing to geopolitical upheavals (the Russian invasion in Ukraine), have been compounded by rising inflation. The main research objective of this paper is the analysis and evaluation of the effects of the current energy crisis on the Greek economy through the perspective of energy poverty, energy dependence, and climate change. Greece has been negatively impacted by the significant rise in energy costs. In 2022, the percentage of the general population that faced difficulties in paying energy bills exceeded the European average, reaching the level of 34.1%, while almost 19% of the population could not keep their homes sufficiently warm. Additionally, in 2022, Greece was one of the countries most energy-dependent on Russia. Greece achieved most of its targets regarding climate change, with the most representative example being the reduction of GHG emissions by 42% from 2000 to 2022. However, this reduction did not come from the successful green transformation of the Greek economy, but instead was due to the reduction in overall energy consumption that came from the prolonged economic crisis, combined with the restrictions of the COVID-19 pandemic. Nevertheless, the majority of Greek buildings are still not considered to be energy efficient, while the transportation industry continues to rely heavily on oil, coal, and natural gas.