“Energy diplomacy” has started to gain importance in interstate relations developing on the axis of energy cooperation.[1] Among multifaceted and long-term diplomatic initiatives, energy diplomacy is of great strategic importance.
2020-2021 even though the Eastern Mediterranean crisis between Turkey and Greece has cooled down, it has still not been resolved.[2] Subsequently, the armament budgets of Greece, which was in economic problems at the time, were not in a position to change the balance. In response, Athens sought both political and economic support. In this sense, the East Med Project brought the possibility of changing the balance in the region to the agenda.[3] Although it was removed from the agenda due to technical reasons, the project has created a new ally for the United States of America (USA) to expand its market in Europe, where it started exporting LNG in 2017, and to strengthen its cooperation.
High-level talks were held between the US and Greece on December 18, 2020, marking the beginning of a strategic dialogue in the field of energy diplomacy and thus clarifying the roadmap. During the talks, the US side expressed its full support for the FSRU (Floating LNG Terminals), IGB (Greece-Bulgaria Pipeline) and TAP (Trans Adriatic Pipeline) projects and emphasized the importance of making Greece a key actor for European energy.[4] Southern European countries’ pre-war dependence on Russian gas has always been their soft underbelly. Breaking this dependence has led to a shift in gas and oil routes and geopolitical energy positions.
Starting with the TAP pipeline project and with the completion of Greece’s Argo FSRU, Dioriga FSRU, Alexandroupolis LNG Terminal, Thrace LNG Terminal projects, Greece’s gas capability will reach 23.2 billion cubic meters. The fact that US LNG shipments are the strongest alternative to reduce the post-war dependence on Russian gas has made the US a critical actor in this regard, increasing its share in European exports by 46% from 2017 to 2023.[5] With the IGB project, the flow of gas from Greece to Bulgaria and the US-Greece energy union has emerged as an alternative for North Macedonia, Romania, Moldova and other stakeholder countries.[6]
The 5th Strategic Dialogue between the United States and Greece emphasizes the ongoing cooperation on energy security for both countries and highlights the need to increase regional connectivity in order to diversify energy types and routes. Within the scope of the US-Greece Strategic Dialogue, Greece has a common goal in the field of renewable energy, in which Greece has emerged as a “European leader” and has the capability to export energy in the future.
Cooperation in the development of renewable energy infrastructure has become an important priority to strengthen Greece’s future as a renewable energy exporter. For this, there is the “Green Aegean Initiative.” The United States is also contributing to Europe’s energy security and the promotion of clean energy by supporting the advancement of electricity interconnection projects in the Eastern Mediterranean. The United States welcomes Greece’s participation in the Three Seas Initiative as an important step in the development of the North-South Corridor and encourages regional energy cooperation.[7]
For Greece, the goals of becoming an energy hub with renewable energy production, energy exports and LNG investments in line with reasonable and EU demands are reflected in strategic dialogues. The fact that Greece has benefited from the REPowerEU fund[8] created by the EU and that US reports have highlighted Greece as a “country suitable for investment” as of 2020 has led to large investments in Greece in the field of renewable energy. The share of investments in power generation in the energy mix has reached a record high of 57%.[9]
These developments also allow Greece to export green energy to Northern European countries. The start of the construction of ultra-high voltage lines under the funds is considered a step forward in this area. The construction of the Southeast-North Electricity Highway is a project that Greece proposed to its European partners last year. According to a study, the project could generate between 6.2 billion euro and 17.5 billion euro for the Greek economy. It could also lower electricity prices for consumers and improve Europe’s energy security. The study notes that the development of a connection to Central Europe could be the first electricity highway in the European Union and that electricity connections between the Middle East and the Southeast could be part of the Priority Electricity Corridor.
In this context, the project aims to integrate markets, reduce electricity prices, expand renewable energy sources and ensure the overall security of supply of the EU.[10] In addition, with the completion of its investments in energy storage[11] Greece is expected to become a major player for Europe in green energy exports. With the steps taken by the Mitsotakis Government, the Greek economy has shown positive signs with new jobs in the energy sector, increased foreign investments and EU funds allocated for the energy sector.[12] The acceleration of US-Greece cooperation in the 2020-2024 period, geopolitical shifts and increased security cooperation in favor of Greece are due to the strengthening of Greece’s position as an energy hub for Western bloc countries. The shipment of F-35s and the military activity in Alexandroupoli region are a result of Greece becoming the center of energy security for the countries of this bloc.
[1] “ENERJİ DİPLOMASİSİ”, Dışişleri Bakanlığı, https://t.ly/1z31S, (Date of Access: 09.02.2024).
[2] “2020–2021 Doğu Akdeniz krizi”, Wikipedia, https://t.ly/2_APu, (Date of Access: 09.02.2024).
[3] “Eastern Mediterranean Pipeline Project”, NS Energy, https://www.nsenergybusiness.com/projects/eastern-mediterranean-pipeline-project/#, (Date of Access: 09.02.2024).
[4] “US, Greece agree to enhance cooperation on energy”, AA, https://www.aa.com.tr/en/economy/us-greece-agree-to-enhance-cooperation-on-energy/2080294, (Date of Access: 18.12.2020).
[5] “The United States remained the largest liquefied natural gas supplier to Europe in 2023”, EİA, https://www.eia.gov/todayinenergy/detail.php?id=61483#:~:text=Last%20year%20marks%20the%20third,Bcf%2Fd)%20in%202023, (Date of Access: 29.02.2024).
[6] “EU-Western Balkans summit, 13 December 2023”, European Council, https://www.consilium.europa.eu/en/meetings/international-summit/2023/12/13/, (Date of Access: 13.12.2023).
[7] “Joint Statement on the U.S.-Greece Strategic Dialogue”, U.S.Department of State, https://www.state.gov/joint-statement-on-the-u-s-greece-strategic-dialogue-2/, (Date of Access: 09.02.2024).
[8] “REPowerEU at a glance”, European Comission, https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal/repowereu-affordable-secure-and-sustainable-energy-europe_en, (Date of Access: 18.05.2022).
[9] “Greece hit record high green energy output last year”, Reuters, https://www.reuters.com/sustainability/climate-energy/greece-hit-record-high-green-energy-output-last-year-2024-01-30/, (Date of Access: 30.01.2024).
[10] “Germany starts construction on €10bn North-South electricity connection”, EURACTIV, https://www.euractiv.com/section/electricity/news/germany-starts-construction-on-e10-bn-north-south-electricity-connection/, (Date of Access: 13.09.2023).
[11] “Greece auctions 300 MW storage projects”, REGLOBAL, https://reglobal.org/greece-announces-winners-of-1-5-gw-energy-storage-auction/, (Date of Access: 19.02.2024).
[12] “Greece is back but the recovery is not over”, OMFIF, https://www.omfif.org/2023/08/greece-is-back-but-the-recovery-is-not-over/, (Date of Access: 21.09.2023).
