Overview of the Greek clean energy market
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Sustainable development, and clean energy opportunities for Israel and Greek markets
March 18-20, Athens
Overview of the Greek clean energy market
Main policy aspects concerning the ghg abatement Although per capita emissions in Greece are lower than
the EU average, emissions per unit of total primary energy supply (TPES) are the highest in Europe.
Greece's greenhouse emissions are closely related to an energy mix mainly composed of lignite and oil. Lignite in Greece produces about half of the CO2 emissions.
The main policy aspects is the decarbonization of the Greek energy system by introducing low carbon (natural gas) or non-carbon (renewable) energy sources and energy efficiency
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
kto
e
/Hydro
Wind
Biomass
Geothermal
Solar
Natural Gas
Solid fuels
Petroleum products
Primary energy supply in Greece
Source: Ministry of Development (MoD) Centre for Renewable Energy Sources (CRES)
0% 10% 20% 30% 40% 50% 60% 70%
Average EU
Luxemburg
Ireland
Portugal
Greece
Spain
Italy
Austria
Denm.
Netherl.
Belgium
Germany
United Kingdom
France
Findland
Sweden
Oil dependency in the EU
Share of oil in Primary Energy Supply
Source: Eurostat
Energy Form Total Installed Capacity
(MW)
Interconnected Mainland System
Crete Rhodes Not intercon. islands
Wind 745 537 130 15 63
Biomass 24 23.8 0,4 - -
Hydro 3125 3124 0,6 - -
Natural Gas 2523 2523 - - -
Oil 2345 750 730 234 632
Lignite 5288 5288 - - -
Total 14.051 11.568 861 249 695
Installed capacity of the Greek electricity system, 2006MW
Source: Public Power Corporation (PPC) Regulatory Authority of Energy (RAE)
Biomass0% Hydro
22%
Natural Gas18%Oil
17%
Lignite38%
Wind5%
Synthesis of the installed capacity of the Greek electricity system, 2006
0
10000
20000
30000
40000
50000
60000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
GW
h
Lignite Petroleum Natural Gas Hydro Wind Biomass
Electricity generation by fuel, Greece
Source: MoD - CRES
Technology
RES
2001 2002 2003 2004 2005 2006
Hydro (<10 MW)
60 62 69 79 89 108
Wind 270 287 371 472 491 745
PV 0,7 0,8 0,8
Biomass 22 22 22 22 25 24
Total 352 371 462 573,7 605,8 877,8
Electricity generation by RES (big hydros are not included)MW
Source: CRES- RAE
2000 2001 2002 2003 2004 2005 2006
Total RES (incl. big hydros, without
pumping)
4144 2925 3543 5866 5887 6378 7948
Total Electricity
Gross Consumptio
n
53832 56204 57504 60571 61630 63800 64285
RES share 7.7% 5.2% 6.2% 9.7% 9.6% 10% 12.4%
Share of RES in gross electricity consumption, in GreeceGWh
Source: MoD - CRES
ELECTRICITY
15,3%
PETROLEUM PR
72,0%
NATURAL GAS
0,1%
COAL
6,7%
RES
5,9%
ELECTRICITY.
21.1%
PETROLEUM PR
68,5%
N.G
2,8% COAL
2,2%
RES
5,2%
1990 2005
Final energy consumption by energy form, Greece
Source:CRES
1990
Industry
25,1%Transports
44,8%
Domestic
19,4%
Agriculture
6,5%
Tertiary
4,2%
Industry
20%
Transports
38,9%
Domestic
26,1%
Agriculture.
5,4%
Tertiary
9,5%
2005
Final energy consumption by sector in Greece
Source:CRES
70
75
80
85
90
95
100
105
1990 1991 1992 1993 1994
1997
1995 1996 1997
1998
1998 1999 2000
1999
2001 2002 2003 2004
1990
=10
0
Final Cons. Transports Households Industry
Energy Efficiency Index ODEX for Greece (source ENERDATA)
Electricity and Heat Generation
52.8%
Agriculture, Domestic
Tertiary
13.2%
Transports
21.2%
Industry
9.2%
Refineries
3.5%
Mining of Solid Fuels
0.1%
Contribution in CO2 emissions of the different activities related to the use of fossil fuels
Source:CRES
Liberalisation of Greek energy market
The liberalisation of energy market in Greece started at 19.2.2001, with Law 2773/99 that harmonised Greek legislation with Directive 96/92/EC
Regarding the liberalisation of electricity and natural gas markets significant legislative modifications took place in order to integrate EU Directives 2003/54/EC and 2003/55 EC in national legislation
National targets regarding greenhouse gas emissions
1997: Hellenic Action Plan for the Abatement of CO2 and other Greenhouse Gas Emissions (follow up of the United Nations Framework Convention on Climate Change)
1998: in the context of EU policy on climate change agreed upon by the European Council of Ministers Greece’s target is that greenhouse gas emissions by
2008 - 2012 should not exceed an increase of 25% compared to 1990 levels
EU’s global target for 2008 - 2012 is to decrease greenhouse gas emissions by 8% compared to 1990 levels
National measures adopted include:
Increasing the use of natural gas in energy supply and demand sectors.
Improvement of efficiency of lignite fired power plants Increase of Combined Heat and Power (CHP) plants
capacity (high efficiency) Aggressive investment policy concerning direct support
for renewables Intensive energy efficiency plan for the demand sector
Target for RES
The national strategic target for Greece, regarding the share of RES in total gross electricity consumption, is specified in Law No 3468/2006 (art. 27/par. 9): up to 2010 this share should reach the level of 20,1% and up to 2020, the level of 29% (currently approx. 13%)
Relevant EU Directive 2001/77/EC
Ambitious but not unattainable target
Legislative tools for RES Electricity generation through RES was substantially started
with Law 2244/94 and was continued with Law 2773/99 that sets the rules for the liberalization of the electricity market
It previews that the Hellenic Transmission System Operator (HTSO) is obliged to give priority in purchasing electrical energy produced by RES. The previously mentioned legal framework covers also the go-generation of heat and power (CHP).
In 2006, the new Law 3468/2006 affecting RES and high-efficiency CHP was introduced. The new law is very important because it simplifies and accelerates the procedures for the issuing of RES and CHP installation licenses. It provides also guaranteed feed-in tariffs for the electricity produced by those technologies.
Main issues of legislation for RES The Hellenic Transmission System Operator (HTSO) is obliged to
grant priority access (priority in load dispatching) to RES electricity-producing installations and High Efficiency CHP plants, except from hydroelectric units where priority is given to small plants up to 15 MWe1.
The HTSO is obliged to enter into a 20-year Power Purchase Agreement (PPA) for the electricity produced by the independent RES-electricity producer.
Each RES-electricity producer is subjected to a special reciprocity charge (annual fee), of 3% of the producer's electricity sales to the grid. This charge is collected by the HTSO and is given to the Local Authority, within the area of which the RES generation unit operate, for the purpose of realising local development projects.
The RES-electricity production of an independent power producer or the surplus electricity production of a RES self-producer, is sold to the HTSO at a predetermined buy-back rate, which is fixed :
…… 1This priority is given to all independent producers (independently from installed MW) and auto-producers up to 35 MW for the surplus of electrical energy that they might have and Provide to the TSO under the precondition that this surplus does not exceed 20% of their total el. generation, and up to 50.000 MWh
Electricity generation:
Price (€/MWh)
Interconnected
Not connected islands
Wind parks 73 84,6
Off-shore wind parks 90
Small hydro plants up to 15 MWe 73 84,6
PV panels of installed capacity smaller or equal than 100 kW 450 500
Solar energy from PV panels of installed capacity bigger 100 kWpeak, 400 450
Other solar technologies with installed capacity until , 5 MWe 250 270
Other solar technologies with installed capacity bigger than 5 MWe 230 250
Geothermal, biomass, biogas
73 84,6
Other RES. 73 84,6
CHP of High Efficiency 73 84,6
The above prices concern all independent producers and auto-producers up to 35 MW for the surplus of electrical energy that sell to the TSO that does not exceed 20% of their total el. generation
Flow chart of the RES licensing procedure
Target for Energy Efficiency
Concerning Energy Efficiency the European Directive 2006/32/ΕC sets in countries-members, an indicative target of 9% of energy saving for the next 9 years and also obliges the countries-members to develop Energy Efficiency Action Plans. (in Greece under completion)
Tools (legal, technical) for energy efficiency
In buildings: energy specifications and standards development, use of passive and active solar systems, appliance labeling and fuel diversification through the use of natural gas; Adoption of several EU Directives and issuing of several ministerial decisions concerning energy labeling, the awaited certification in buildings (to be completed very soon)
In industry, fuel substitution by natural gas and increase in cogeneration capacity (action plan for CHP prepared according the guidelines of EU Directive on CHP 2004/8/EC );
In transport: a series of measures has been adopted, with Law 3423/05 for the biofuels, the renewal of the fleet of old private use cars, and the improvement of the infrastructure of roads and public transports
The new EU energy policy
At 8/9 March 2007, during the European Summit the EU Council approved a global energy action plan taking into consideration the proposal of European Commission for an Energy Policy for Europe
At the centre of the new European energy policy are by 2020 three 20s and one 10 : 20% decrease of ghg emissions compared to 1990 levels, 20% increase of energy efficiency, 20% share of RES in energy mix, and 10% share of biofuels in energy mix of transports
Financial instruments and economic incentives for energy investments
During the last decade several financial-support instruments are available for RES projects (with emphasis on renewable electricity production) that provide substantial public subsidies such as incentives for private investments for the Economic Development and the Regional Convergence under the so-called “National Development Law” (Nr. 2601/98 amended and supplemented by Law Nr. 3219/2004 and its amendments Laws No. 3470/2006 and No. 3522/2006)
Development Law provisions
For investment plans under the provisions of this Law, the following types of incentives are provided:a) Capital investment subsidy consisting by state grant of up to 40% in
certain cases according to the project location and the size of corporation, for the coverage of part of expenses of investment plan
b) Subsidy of leasing consisting of the coverage from banking funds part of the leasing instalments that is contracted for the acquisition of new mechanical and other equipment.
c) Tax exemption of up to 100% or the total value of the subsided expenses of the investment plan or even the value of the leasing for the new mechanical and other equipment which are acquired.
d) Subsidy of the employment cost created by the investment plan consisting by state coverage of the wage cost for two years of the new created posts
e) Interest rate subsidy, granted by the Credit Guarantee Fund of Small and Very Small Enterprises (TEMPME) that has created 5 programs regarding short-term and/or medium-long term loans of operating or under establishment enterprises of any legal form (e.g. SA, Ltd, Individual)
Financial instruments and economic incentives for energy investments
Incentives for EE and RES investment from the Structural EU and National Funds (3rd and 4th Community Support Frameworks – Operatinal Programme for Energy, and Operational Programme for Competitiveness).
Mainly capital investment subsidies up to 50% of the total capital cost.
Fiscal incentives for RES and energy saving in the domestic sector
According to the article 2 of the Law No. 3296/2004, in the reduction of expenses from the person’s taxable income is included “Percentage 20% of the expense either for the conversion of fuel installation using oil to natural gas or for new installation of natural gas, solar thermal and PV systems”. The sum that is subtracted cannot exceed 700 €.
Thank you for the attention!
Markos DamasiotisHead of Department of Development Project StudiesCentre for Renewable Energy Sources 19th km Marathonos Ave., GR 19009 PikermiTel: +302106603325,300 Fax: +302106603301
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