Χώρα

Νομοθεσία
19 Αυγούστου 2013

Summary: Greece is stepping up efforts to liberalise its state-controlled electricity and natural gas markets, taking also into consideration the recent obligations under the EU third Internal Energy Market Directives.

legislation 

In the electricity market, new entrants are gaining ground in the wholesale market, although PPC still supplied more than 75% of the volume in 2010. It also supplied more than 90% of the retail market in 2010. Competition in the retail market has been very limited, because of regulating end-user prices at levels that do not always cover generating costs. Since the beginning of 2011, PPC's retail tariffs have been restructured towards eliminating cross-subsidisation between different categories of clients. Retail tariffs are expected to be fully deregulated by mid-2013.

In the gas market, independent suppliers and large customers willing to be self-supplied may, since April 2010, import gas to the country. Although the state remains in control of almost the entire gas supply and the gas transmission infrastructure through DEPA and its subsidiaries, the new entrants can be expected to gradually reduce the dominance of DEPA and bring multiple benefits to the economy and the citizens.

The new energy law 4001/2011 (Official Gazette FEK 179/ A' / 22 August 2011) strengthens the power of the regulatory authority, provides for consumer protection, and allows for unbundling electricity and gas transmission. The government is also committed to reducing its ownership in PPC and DEPA to clearly below 50%.

Greece imports practically all the oil and gas it needs, while it has ample reserves of lignite and a large potential for renewable energy. The country has been in compliance with the IEA 90-day stockholding obligation since 2004.

The key elements of Greece's policy on natural gas security are the diversification of supply sources and the development of the natural gas transmission system. In addition, new gas-fired plants are required to hold at least five days of dual fuel reserves (i.e. either diesel stored at the plant site or LNG at the Revithoussa terminal). In a supply disruption, DESFA, the transmission system operator, would resort to the following three key measures:

  • interruption of gas supply to large users, on the basis of a priority list;
  • fuel switching at power stations;
  • use of gas reserves at the LNG terminal.

Peak demand of electricity is met by increasing imports and offering financial incentives for large users to reduce demand. Total capacity of cross-border connections amounts to around 15% of peak demand. Plans exist to increase cross-border capacity with Bulgaria and Italy. The foreseen increase in variable renewable power generation to 2020 will increase the need for system flexibility to ensure security of supply.

Greece is a Party of the United Nations Framework Convention on Climate Change (UNFCCC) and of the Kyoto Protocol. The related EU Burden-Sharing Agreement (2002/358/EC) limits its greenhouse gas (GHG) emissions to an average of 25% above their base Year 1 level from 2008 to 2012. GHG emissions peaked in 2007, and because of the economic recession and efficiency improvements, Greece is set to meet this target.

Source: IEA - International Energy Agency

As part of the effort-sharing of the EU GHG target of -20% from 1990 to 2020, Greece will have to reduce emissions by 4% from their 2005 level in the sectors outside the EU Emissions Trading System (ETS). The ETS sector has a single EU-wide target of -21% from 2005 to 2020. For this, it is allowed to use international flexibility mechanisms to cover an amount equaling 3% of the non-ETS sector emissions in 2005, i.e. 75% of its target. After 2012, the ETS sector in the EU as a whole will have to cut emissions by 21% from 2005 to 2020. For 2020, the total GHG emissions reduction potential from implemented and adopted policies and measures is estimated at 50.3 Mt CO2-eq and the total reduction from planned policies and measures is estimated at 11.8 Mt CO2-eq (see Tables).

Greece legislation table

The largest potential for GHG reductions lies in reducing the carbon intensity of power generation through increased use of natural gas and renewable sources. The same policy is limiting emissions also in industry, households and services. These sectors hold a large potential for improved energy efficiency. In the transport sector, emissions would be reduced mainly by promoting public transport, improving traffic management and renewing the vehicle fleet.

As a result of the effort-sharing of the EU GHG target of -20% from 1990 to 2020, Greece will have to reduce emissions from the non-ETS sectors by 4% from their 2005 levels by 2020.

The main contribution to reducing energy-related CO2 emissions to meet the 2020 target will come from measures on renewable energy, energy efficiency and fuel switching from lignite and oil to natural gas and renewable energy sources. The EU-ETS and EU air pollution legislation have led to the decarbonisation of the country's power supply. In addition, Greece aims to raise the share of renewable energy in gross total final consumption of energy to 20% by 2020, which is 2% higher than its EU obligation and almost triple the 6.9% share in 2005. It has also set a specific target for renewable sources to provide 40% of electricity generation by the same year (the share in 2010 was 15%) and to provide 20% of primary energy for heating and cooling in 2020.

Source: IEA - International Energy Agency

The basis of Greece's climate policy is the second National Climate Change Programme from 2002 and its subsequent revisions, the National Renewable Energy Action Plan (NREAP) and the National Energy Efficiency Action Plan (NEEAP). National policies and measures are closely linked to the European common and coordinated policies and measures, including the ETS, as well as the financing mechanisms and fiscal measures supporting the implementation of projects. The impact of current and future climate policies and measures is quantified in the 5th National Communication of Greece to the UNFCCC, published in January 2010. The communication contains two emissions scenarios: the "with measures" scenario includes adopted and implemented emissions reduction policies and measures. The "with additional measures" scenario assumes the implementation of current and planned policies. The latter scenario was updated in March 2011 to take into account revised policies and measures related to the compliance with the EU 20-20-20 targets to be reached by 2020.

Greece's total final consumption of energy (TFC) was 20.6 Mtoe in 2009, down 3% from 2008 but 42% higher than in 1990. Transport took the largest share of TFC, accounting for around 41% of the total. The residential sector accounted for 24% and industry for 21%. The service sector consumed 10% of TFC and agriculture 5% in 2009. In comparison, the IEA averages in 2009 were 32% for transport, 20% for residential, 31% for industry, and 16% for other.

The Ministry of Environment, Energy and Climate Change (MEECC) has the overall responsibility for energy efficiency policy in Greece. Within MEECC, the newly created Office to Assist Investors in Renewable Energy Sources Projects, the Efficient Use of Energy and Energy Saving Directorate, and the Special Service of Energy Inspection are actively involved in energy efficiency policy development and implementation. The Centre for Renewable Energy Sources and Saving (CRES), under the supervision of MEECC, promotes renewable energy and energy efficiency at the national level, facilitates national energy planning, assists in the formulation of energy policies and is involved in the development of R&D activities. It is also developing a national information system for monitoring and evaluating energy efficiency measures. The Ministry for Infrastructures, Transport and Networks and the Ministry of Economy also have strong energy efficiency mandates.

Transport measures

  • Reshaping the public transport system;
  • Transport infrastructure projects;
  • Development of urban mobility plans;
  • Promotion of economical, safe and eco-driving;
  • Incentives for the replacement of old medium and heavy-duty vehicles (over 3.5 tonnes and over 10 years old);
  • Incentives to replace old private vehicles and to promote the use of energy-efficient vehicles;
  • Eco-labelling (energy labels for cars);
  • Compulsory quotas of vehicles with greater energy efficiency in the fleets of the public services and of public bodies;
  • Linking vehicle taxation to energy efficiency and CO2 emissions.

Private sector

  • Compulsory installation of central solar thermal systems in tertiary sector buildings of over 1000 m2;
  • Promotion of voluntary agreements for energy upgrading interventions in service-sector buildings.

Public sector

  • Compulsory installation of central solar thermal systems to meet water-heating requirements;
  • Compulsory procurement procedures with respect to public buildings (green procurement - energy-efficient and renewable energy technologies);
  • Integrated energy planning by municipalities;
  • Compulsory replacement of all lighting units with low energy efficiency in the public sector.

Industry

  • Incentives relating to the obligatory implementation of energy management systems (EMS) in industry;
  • Creation of energy and environment management centres in business parks;
  • Programme of voluntary agreements in industry;
  • Energy services for energy savings.

Horizontal measures

  • Formation of a unit to collect energy data and forecasts;
  • Targeted education campaigns, provision of information and rewarding of "good practices";
  • Programmes to provide financial support for investment in energy-saving technologies and research.

Cross-sectoral measures

  • Energy performance of buildings;
  • Further promotion of the integration of natural gas and liquefied petroleum gas (LPG);
  • Energy labelling of appliances and minimum energy efficiency requirements;
  • Implementation of an energy management system (EMS) in the service and public sectors;
  • Energy upgrading of existing buildings through third-party financing (TPF) arrangements, energy performance contracting (EPC) and public- and private-sector joint ventures (PPJV);
  • Installation of electronic and intelligent metering of electricity and natural gas consumption
  • Promotion of cogeneration of heat and power (CHP) and district heating systems.

According to Greece's NEEAP, the successful implementation of these energy efficiency improvement measures across all sectors could reduce TFC by at least 18.6 TWh (1.6 Mtoe) in 2016 from the annual average of 2001-2005.

Source: IEA - International Energy Agency

The EU Emissions Trading System, started in 2005, is the primary mechanism to improve energy efficiency in the industrial sector. The Operational Programme for Competitiveness (OPC) and the Law 3299/04 on "Private Incentives for Economic Development and Regional Convergence" provide subsidies to industrial and service sector enterprises for energy efficiency and renewable energy investments.

The new investment law on "Private Investments Support for Economic Development, Entrepreneurship and Regional Convergence" provides subsidies and tax allowances for energy efficiency investments. As of May 2011, the law was still to be enacted.

Source: IEA - International Energy Agency

 

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