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Greece

Official Name:
Hellenic Republic

Energy profile

Greece (2013)

Type: 
Energy profile
Energy profile
Extent of network

Greece’s electricity system comprises an interconnected mainland system and non-interconnected islands. These islands hold a large potential for renewable energy, mainly wind and solar. In the coming years, they are planned to be interconnected to the mainland grid. This would enable the decommissioning of the oil-fired power plants on the islands.

Renewable energy potential

SolarThe average annual irradiation in Greece is very high (1,800 kWh/m2) and ~ 50% higher than Germany's. Greece holds the 6thplace among 35 countries around the globe regarding its solar index. Greece's solar energy production potential is far greater than its target set in its NREAP for 2020. The excess potential can be tapped to the benefit not only of Greece, but also of other EU member states in achieving their RES targets in a highly cost efficient way.Wind EnergyWind 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, 1,400 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.Biomass /BiogasIn 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.GeothermalGreece 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 kilometres 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.

Energy framework

Renewable energy policy in Greece is guided by EU requirements. The non-binding targets for 2010 for biofuels and electricity from renewable sources have been replaced by a binding target to increase the share of renewable energy in gross final energy consumption by 2020. Under Directive 2009/28/EC9, Greece must increase this share from 6.9% in 2005 to 18% in 2020. The overall target for the EU is 20% by 2020. The directive also includes a separate target for renewable sources to provide 10% of final energy in the transport sector by 2020.The government plans to reach the 2020 renewable energy targets through a combination of measures on energy efficiency and renewable energy. Policies and measures to this end are detailed in the July 2010 National Renewable Energy Action Plan (NREAP). The plan contains three scenarios with differing results for final energy consumption, renewable energy contribution and capacity.  In all scenarios, electricity provides by far the largest increase in renewable energy use.According to the NREAP, power generation from renewable sources should more than triple from 2010 to meet the 2020 target of 40% in all electricity generation. The NREAP’s compliance scenario projects the installation of almost 7.5 GW of wind power by 2020, together with 2.2 GW of PVs, 250 MW of concentrating solar power plants, 250 MW of bioenergy installations (biogas and solid biomass), 250 MW of small hydro plants and 120 MW of geothermal energy. It also projects 350 MW of new large hydro capacity and 880 MW of pumped storage plants, resulting in a 40% share for renewable energy in electricity production. To meet the target, the government has increased feed-in tariffs and reduced the duration of licensing procedures.Feed-in tariffThe main instrument for the promotion of RES-E in Greece is a feed-in tariff. The mechanism is regulated according to law 3851/2010 article 5:- The electrical energy produced by a producer or self-producer of electrical energy from RES or from CHP or through a Hybrid Station, where the electricity is absorbed by the system or by the network, is remunerated on a monthly basis, according to the following:a. The pricing is done based on the price, in €/MWh, of the electrical energy absorbed by the system or by the network, including the network of non-interconnected islands.b. For electrical energy produced by solar (photovoltaic) stations, separate prices have been specified by law No 3734/2009.Investment Incentives FundRES investments (except PV) are eligible for receiving subsidy from the Investment Incentives fund (Law 3908/2011). The amount of subsidy varies according to the size of the enterprise and to the prefecture where the investment plan will be implemented. In any case the subsidy cannot exceed 50% of the qualifying cost of the investment.RES-H&CThe Greek policy regarding RES-H adoption relies mainly on a building obligation. Law 3851/2010 states that from January 2011 new buildings should cover 60% of their hot water consumption with solar panels. From 2019 (2014 for public buildings) new buildings should cover their whole energy consumption (both electricity and heat) with RES. Such obligation does not apply for existing buildings; the law only fixes minimal requirements for energy efficiency.The Greek government also supports the RES-H&C market with investment subsidies. The investment law (3908/2011) foresees capital incentives, as those foreseen for RES-E, also for RES-H, even though the high value requirement for investment could limit its impact.For the production of heating/cooling, law L3522/2006 was passed in 2006 and is still in effect. According to this law small domestic RES systems are eligible for a 20% tax deduction capped at € 700 per system.RES-GridThe transport of electricity generated from all renewable energy sources is given priority in the interconnected system and on non-interconnected islands. As far as hydro-electric systems are concerned, priority is only given to systems whose capacity does not exceed 15 MWe.

Source
Static Source:
  • Microgrids: An Overview of Ongoing Research, Development, and Demonstration Projects

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    This report evaluated the role of public policy in encouraging conservation in a residential setting. It interprets the results of an Organisation for Economic Co-operation and Development (OECD) survey sent to over 10,000 households within the OECD area on home water use, energy use, personal transport choices, organic food consumption, and waste generation and recycling. Analysis of the responses offers insight into the market, demographic, and policy factors that actually influence people’s environmental behaviour and consumption patterns.

  • Summary of Country Reports Submitted to the Energy Efficiency Working Party

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