Greece Energy Situation

Hellenic Republic
			Greece Location
Capital			Athens(38°00′N 23°43′E)
Official Languages(s)			Greek
Government			Parliamentary republic, Unitary state
President			Karolos Papoulias
Prime Minister			Antonis Samaras
'Total Area '( km²)			131,990
Population			10,815,197 (2011 census)
Rural Population
GDP (Nominal)			$243.330 billion (2013 est.)
GDP Per Capita			$21,617 (2013 est.)
Currency			Euro (EUR)
Time Zone			EET (UTC+02)
Calling Code			+30
Electricity Generation			TWh/year (year)
Access to Electricity
Wind energy (installed capacity)			1,520 MW (2013)
Solar Energy (installed capacity)			2,419 MW (2013)

Overview

Today the Greek energy market is undergoing fundamental reforms. New advanced energy technologies and perpetual environmental issues, requirements arising from European and international cooperation as well as various intergovernmental Agreements are factors shaping and harmonizing the institutional and legislative framework of the Greek energy market with current tendencies and perceptions.

Greece, and the European Union, have established key priorities and binding policies related to the production of electricity from renewable sources.

To establish security and diversification of its energy supply, and ensure environmental protection and sustainable development, Greece promotes the establishment of power using renewable energy sources.

Increasingly, renewable energy sources play an important role in Greece’s energy production profile. Current production is based on large-scale hydropower stations operated by PPC. Renewables account for approximately 5% of electricity production, not including the 5% contribution of hydropower stations.

The present investment framework calls for a striking increase in production from Wind, Solar, Geothermal, and Biomass/Biofuels, which are expected to contribute increasingly as a transport fuel.

In the first semester of 2011, the total installed capacity of RES stood at 2022.2 MW, 75% of which came from wind energy production, 11.5% from solar, and the remaining 13.5% from biomass and hydro-electric production units.

Energy Supply

Electricity

The installed capacity in the interconnected system (17.4 GW end of 2013) is dominated by thermal energy (58%). In 2013, Greece produced 50 TWh (22% less than the all-time high of 2008), 47% of which from lignite, 24% from gas, 11% from hydro and 14% from renewable energy.

Energy Consumption

Electricity

Total energy consumption per capita is 2.3 toe, including 4300 kWh of electricity; it is 30% lower than the EU average (3.5 toe).

Graph: Consumption trends by Energy Source (Mtoe)

Market Situation for Different Energy Technologies and Services

Solar Energy

Solar energy is playing an increasingly important part in the energy mix of Greece. The country has high levels of solar irradiation with an average global horizontal irradiation level of more than 1,500 kWh/m2.

Photovoltaic energy has seen a signifcant increase in capacity from 620 MW by the end of 2011 to 2,563 MW by October 2013. The current national capacity target for photovoltaic energy of 2,200 MW by 2020 has therefore already been achieved in 2013.

Wind Energy

Wind, or aeolic, power is driving growth in the renewables sector and represents a huge investment potential in Greece. The superb wind resources in Greece are among the most attractive in Europe, with a profile of more than 8 metres/second and/or 2,500 wind hours in many parts of the country. Capacity increased by an average of 30% annually between 1990 and 2003 and almost 30% of total capacity was installed in the period of 2003-2004.

It is estimated that today, 1400 MW of wind farms are operating, while the target is 7,500 MW to be installed by 2020, from which 300 MW are attributed to offshore wind farms.

Greece’s favourable, long-term legislative framework ensures RES investment and has gained the confidence of major investors.

Wind energy has the advantage of being a priority sector of the Greek government. Renewables can be developed in Greece at very competitive costs and the target is for renewables to have 40% share of electricity production by 2020. Because these targets are legally binding, due to EU regulations and Kyoto Protocol agreements, investors can be assured of stable, long-term market objectives in the Greek Res market.

Biomass

Drawing on diverse sources of energy is at the core of the Greece’s investment and energy policy. Renewable energy sources (RES) play a major role in the country’s evolving energy make-up. Biomass and biofuels have been identified as strong market components with high growth potential. Investors will find numerous opportunities to source abundant raw materials and will benefit from attractive feed-in tariffs.

In Greece, the agricultural sector accounts for more than 5% of GDP, more than three times the EU average of 1.8%. Companies involved in biomass and biofuels will therefore find abundant sources of raw materials. In addition, the binding commitments of the Greek government to replace 10% of current transport fuels with biofuels by 2020 translates into measurable opportunities within the next decade.

Biomass refers to energy originating from organic materials such as trees and forest plants, agricultural products, and waste streams from a variety of sources. Through heat, these products are transformed into biofuels, bioheat, or bioelectricity. Wood is the oldest form of biomass known to man.

Current installed capacity is 43 MW. Local authorities, in an effort to manage resources in a cost effective manner, are targeting biomass systems as the focus of investment, promising this to be a growth sector with significant potential.

Due to the increased interest in green energy, financial support from the EU and the Greek government, the biomass market is expected to grow considerably. Reforms to the EU’s Common Agricultural Policy (CAP) favour the cultivation of certain crops for the production of biofuels.

Biofuel

Biofuels, identified as having an important role to play in transportation, will substantially reduce CO₂ emissions and reduce dependence on imported energy sources.

The most common biofuel is biodiesel, or methyl ester, that is primarily produced from oil seeds (sunflower, rapseed) and may be used independently or in combination with diesel in diesel engines. Bioethanol is produced from plant sugars, cellulose and starches (wheat, corn, sorghum, sugar beets) and is used alone or in combination with gasoline in specially adapted engines. It may also be converted to ETBE, a gasoline additive that is more environmentally friendly than current alternatives.

EU regulations stipulate that Member States must replace 10% of transport fuels with sustainable biofuels by 2020. Greece is bound to comply with these stipulations.

Investors will find a wide range of opportunities in both the biomass and biofuels markets. Currently, more than 10 companies operate in the Greek biofuel market, including ELIN, EL-VI, Pettas, and Agroinvest. Other companies preparing to participate in this market include Hellenic Sugar Industry, PPC, and Biodiesel.

Geothermal

Greece lies in a geographic position that is favorable to geothermal resources, both high temperature and low temperature. High temperature resources, suitable for power generation coupled with heating and cooling, are found at depths of 1-2 kilometres on the Aegean islands of Milos, Santorini, and Nisyros. Other locations that are promising at depths of 2-3 kilomteres are on the islands of Lesvos, Chios, and Samothraki as well as the basins of Central-Eastern Macedonia and Thrace.

Low temperature geothermal resources are found at the plains of Macedonia-Thrace and in the vicinity of each of the 56 hot springs found in Greece. These areas include Loutra-Samothrakis, Lesvos, Chios, Alexandroupolis, Serres, Thermopyles, Chalkidiki, and many others.

Low temperature geothermal applications include space heating and in agricultural uses (greenhouse heating, the drying of fruits and vegetables, aquaculture and seawater desalination, and in spas), providing an ideal synergy with other widespread commercial ventures in Greece.

As technological advances allow for the exploitation of lower temperature geothermal resources, found at just a few metres below the ground surface, the heating and cooling of water for domestic use, for instance, becomes highly viable and attractive. Such applications lessen reliance of non-RES resources, are highly reliable and cost effective, and emit far less carbon dioxide.

Policy Framework, Laws and Regulations

The undergoing reforms are the liberalization of the electricity and natural gas markets, increased competitiveness, the extension and enhancement of the domestic and cross-border electricity, natural gas and oil networks, the further separation of production and supply from transmission networks, consumer choice, increased share of energy from Renewable Energy Sources, reduced share of fossil-fuel generated electricity, improved energy efficiency, energy saving and the protection of the environment.

General Energy Policy, Energy Strategy

The priority and top objective is to safeguard and manage energy resources in a manner which secures the smooth, uninterrupted and reliable supply of the nation’s energy needs and access for all users to affordable, secure energy. The second objective is to secure energy stocks, through alliances and alternatives energy sources and routes in order to ensure the supply of the domestic market and protect consumers in the case of emergencies. The third objective is the viable and sustainable development of the energy sector from the stage of production to the end-use while protecting nature and safeguarding the environment.

The strategy to ensure supply needs and address energy issues in Greece is shaped by the regulatory and legal framework which focuses today on the following general axis:

• Access to a wide variety of energy sources
• Construction of oil and natural gas pipelines within international networks
• Increased use of domestic energy sources and stocks
• Reduced dependence on certain high risk energy sources
• Development of RES installations with the granting of incentives
• Use and diffusion of clean and efficient environment friendly technologies
• Liberalization of the market, increased competitiveness and putting an end to monopolies in the electricity and natural gas sectors.
• Establishment of a healthy investment climate for businesses in the energy sector
• Energy savings for industry, transport, buildings and homes
• Establishment of national targets for the increased penetration of energy generated from RES, the reduction of green house gas emissions and energy saving.

Important Laws and Regulations

Renewable Energy Sources
Renewable Energy Sources (RES) means renewable non-fossil energy sources, that is wind, solar, geothermal wave, tidal, hydro-electric power, landfill gas, sewage treatment plant gas and biogases as defined by Directive 2001/77/EC.
According to law 2773/1999 is electricity produced from plants using:

1. Wind or Solar biomass or biogases.
2. Geothermal on condition that the right to use geothermal capacity has been granted on the basis of legislation in force.
3. Sea
4. Hydro resources with small hydro-electric plants up to 10 mw.
5. Combination of the above
6. Co-generation using a combination of wind or solar or biogases

Specific Strategies (Biomass, Renewable Energies, Rural Electrification, Energy Access Strategy etc.)

National Action Plan 20-20-20
The obligation to compile National Action Plan reports to the European Commission on progress in the promotion and use of energy from renewable sources with regard to the target to achieve a 20 % share of energy from renewable sources in the Community’s gross final consumption of energy in 2020 derives from Directive 2009/28 EC.
Reports include estimates on the development of the energy sector and the penetration of technologies from RES BY 2020. Estimates are required for the overall and sectoral shares of energy produced from RES (Electricity, heating and cooling, and transport) . The Reports also have to detail progress made in evaluating and improving administrative procedures to remove regulatory and non-regulatory barriers to the development of energy from renewable sources. The National Renewable Energy Action Plans, which are finalised following consultation with the European Commission form the basis of the Ministerial Decree regarding the penetration of RES in the national energy mix. Action Plans are updated every two years following evaluation on the implementation of their provisions and in order to take into account improvements in technologies, market developments and energy demand.

Institutional Set-up in the Energy Sector

Governmental Institutions Private Sector (Enterprises, NGOs)

• Ministry of Environment, Energy & Climate Change: http://www.ypeka.gr
• Regulatory Authority for Energy: http://www.rae.gr
• Centre for Renewable Energy Source: http://www.cres.gr
• Public Power Corporation: http://www.dei.gr
• Hellenic Transmission System Operation: http://www.desmie.gr
• Greek Association of RES Electricity Producers: http://www.hellascres.gr
• Public Gas Corporation S.A.: http://www.depa.gr
• Hellenic Petroleum S.A: http://www.hellenic-petroleum.gr
• Greek Solar Industry Association: http://www.ebhe.gr
• Hellenic Association for the Cogeneration of Heat & Power: http://www.hachp.gr
• Hellenic Association of Photovoltaic Companie: http://www.helapco.gr
• Hellenic Wind Energy Association: http://www.eletaen.gr

Existing Projects

Three decisive projects are laying the groundwork for a diverse, competitive, and secure energy supply: the Burgas-Alexandroupolis oil pipeline, the Interconnector Turkey-Greece-Italy (ITGI), and the South Stream natural gas pipeline. With these transformative projects Greece is emerging as an oil and gas conduit, supplying the markets of Southeast and Western Europe as well as those as far away as North America.

Burgas-Alexandroupolis Oil Pipeline

The Burgas-Alexandroupolis oil pipeline will contribute significantly toward the decongestion of the sensitive Bosporous Strait and provide a new, export channel for Black Sea oil to European and North American markets. The Greek-Russian-Bulgarian mega project will see the participation of Greek companies with 23.5% and the Greek state with 1%. The 279-kilometre pipeline, from Burgas in Bulgaria to the northern Greek port town of Alexandroupolis, is slated to have an initial annual throughput of 50 million tonnes of oil, and with an annual capacity of more than 50 million tonnes. The cost of the project is estimated at 800 million Euro.

Interconnector Turkey-Greece-Italy (ITGI)

The Interconnector Turkey-Greece-Italy (ITGI) gas pipeline will be a key conduit for Caspian and Iranian gas to reach the markets of Western Europe. Operation commenced in 2007.Currently, Greece is connected to Turkey and Italy via an undersea pipeline that will be connected to the wider European gas network by 2010. The project is made up of two parts: onshore and offshore (Poseidon Pipeline) with preliminary budgets of 900 million Euro (onshore) and 350 million Euro (offshore). The onshore section is to be part of the Greek National Grid and the offshore section is to be built by the Poseidon company, a joint venture of Edison and DEPA. The total length of the pipeline, from Komitini to the Ionian Sea, is 590 kilomteres. Completion date is to be 2012.

South Stream

The South Stream Pipeline, with an end point in Italy, is a major project to supply Russian gas to Western Europe. The pipeline is to pass through Greece and may connect to the Interconnector Turkey-Greece-Italy (ITGI).

Other Projects

Selected Projects of Centre for Renewable Energy Sources and Saving

Further Information

• .pdf Energy Outlook of Greece
• Solar thermal plants in industrial processes Design and Maintenance Guidelines Procesol II
• Market potential analysis for the introduction of Hydrogen energy technologies in stand alone power systems
• Methods of Financing Renewable Energy Investments in Greece

References

• Ministry of Environment, Energy and Climate Change: http://www.ypeka.gr/Default.aspx?tabid=225&locale=en-US&language=el-GR
• The Centre for Renewable Energy Sources and Saving (CRES)
• .pdf Ministry of Development- Energy Outlook of Greece