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Energy Policy Review

Greece 2023

The IEA examines the

full spectrum

of energy issues

including oil, gas and

coal supply and

demand, renewable

energy technologies,

electricity markets,

energy efficiency,

access to energy,

demand side

management and

much more. Through

its work, the IEA

advocates policies

that will enhance the

reliability, affordability

and sustainability of

energy in its

31 member countries,

11 association

countries and beyond.

Please note that this

publication is subject to

specific restrictions that limit

its use and distribution. The

terms and conditions are

available online at

www.iea.org/t&c/

This publication and any

map included herein are

without prejudice to the

status of or sovereignty over

any territory, to the

delimitation of international

frontiers and boundaries and

to the name of any territory,

city or area.

Source: IEA. All rights

reserved.

International Energy Agency

Website: www.iea.org

IEA member

countries:

Australia

Austria

Belgium

Canada

Czech Republic

Denmark

Estonia

Finland

France

Germany

Greece

Hungary

Ireland

Italy

Japan

Korea

Lithuania

Luxembourg

Mexico

Netherlands

New Zealand

Norway

Poland

Portugal

Slovak Republic

Spain

Sweden

Switzerland

Republic of Türkiye

United Kingdom

United States

The European

Commission also

participates in the

work of the IEA

IEA association

countries:

INTERNATIONAL ENERGY

AGENCY

Argentina

Brazil

China

Egypt

India

Indonesia

Morocco

Singapore

South Africa

Thailand

Ukraine

FOREWORD

Foreword

The mission of the International Energy Agency (IEA) is to shape a secure and sustainable

energy future for all. We work with countries around the world to strengthen energy

security and reach net zero emissions. Our in-depth reviews are an essential IEA tool for

providing insight and advice to governments on how to best achieve their energy and

climate goals.

Greece is to be commended for its response to the global energy crisis triggered by

Russia’s invasion of Ukraine. It has sought to reduce its reliance on Russian energy by

increasing imports from other countries, raising domestic renewable energy production,

and reducing energy demand through greater efficiency. Its actions to protect vulnerable

consumers from high energy prices are particularly noteworthy. I am glad to have had the

opportunity to meet with Prime Minister Kyriakos Mitsotakis, Minister of Environment and

Energy Kostas Skrekas, and other members of the Government over the past year to

assess developments in the crisis and share the IEA’s analysis and advice.

Our latest review commends Greece for its National Climate Law, which sets ambitious

decade-by-decade targets for bringing down greenhouse gas emissions to net zero by

2050. Greece has made notable progress towards meeting these goals, including

significantly reducing the share of lignite in its power mix, and setting a binding target to

end the use of lignite for electricity generation by 2028. At the same time, Greece has

taken clear steps to ensure a just transition in its lignite-mining regions. Despite these

successes, challenges remain – fossil fuels still account for most of Greece’s energy

supply and stronger efforts are needed on energy efficiency.

I hope that the recommendations set out in this report will help Greece accelerate its

energy transition while ensuring affordable and secure energy supplies.

Dr. Fatih Birol

Executive Director

International Energy Agency

IEA. CC BY 4.0.

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EnergyPolicyReviewGreece2023TheIEAexaminesthefullspectrumofenergyissuesincludingoil,gasandcoalsupplyanddemand,renewableenergytechnologies,electricitymarkets,energyefficiency,accesstoenergy,demandsidemanagementandmuchmore.Throughitswork,theIEAadvocatespoliciesthatwillenhancethereliability,affordabilityandsustainabilityofenergyinits31membercountries,11associationcountriesandbeyond.Pleasenotethatthispublicationissubjecttospecificrestrictionsthatlimititsuseanddistribution.Thetermsandconditionsareavailableonlineatwww.iea.org/t&c/Thispublicationandanymapincludedhereinarewithoutprejudicetothestatusoforsovereigntyoveranyterritory,tothedelimitationofinternationalfrontiersandboundariesandtothenameofanyterritory,cityorarea.Source:IEA.Allrightsreserved.InternationalEnergyAgencyWebsite:www.iea.orgIEAmembercountries:AustraliaAustriaBelgiumCanadaCzechRepublicDenmarkEstoniaFinlandFranceGermanyGreeceHungaryIrelandItalyJapanKoreaLithuaniaLuxembourgMexicoNetherlandsNewZealandNorwayPolandPortugalSlovakRepublicSpainSwedenSwitzerlandRepublicofTürkiyeUnitedKingdomUnitedStatesTheEuropeanCommissionalsoparticipatesintheworkoftheIEAIEAassociationcountries:INTERNATIONALENERGYAGENCYArgentinaBrazilChinaEgyptIndiaIndonesiaMoroccoSingaporeSouthAfricaThailandUkraine3FOREWORDForewordThemissionoftheInternationalEnergyAgency(IEA)istoshapeasecureandsustainableenergyfutureforall.Weworkwithcountriesaroundtheworldtostrengthenenergysecurityandreachnetzeroemissions.Ourin-depthreviewsareanessentialIEAtoolforprovidinginsightandadvicetogovernmentsonhowtobestachievetheirenergyandclimategoals.GreeceistobecommendedforitsresponsetotheglobalenergycrisistriggeredbyRussia’sinvasionofUkraine.IthassoughttoreduceitsrelianceonRussianenergybyincreasingimportsfromothercountries,raisingdomesticrenewableenergyproduction,andreducingenergydemandthroughgreaterefficiency.Itsactionstoprotectvulnerableconsumersfromhighenergypricesareparticularlynoteworthy.IamgladtohavehadtheopportunitytomeetwithPrimeMinisterKyriakosMitsotakis,MinisterofEnvironmentandEnergyKostasSkrekas,andothermembersoftheGovernmentoverthepastyeartoassessdevelopmentsinthecrisisandsharetheIEA’sanalysisandadvice.OurlatestreviewcommendsGreeceforitsNationalClimateLaw,whichsetsambitiousdecade-by-decadetargetsforbringingdowngreenhousegasemissionstonetzeroby2050.Greecehasmadenotableprogresstowardsmeetingthesegoals,includingsignificantlyreducingtheshareofligniteinitspowermix,andsettingabindingtargettoendtheuseofligniteforelectricitygenerationby2028.Atthesametime,Greecehastakenclearstepstoensureajusttransitioninitslignite-miningregions.Despitethesesuccesses,challengesremain–fossilfuelsstillaccountformostofGreece’senergysupplyandstrongereffortsareneededonenergyefficiency.IhopethattherecommendationssetoutinthisreportwillhelpGreeceaccelerateitsenergytransitionwhileensuringaffordableandsecureenergysupplies.Dr.FatihBirolExecutiveDirectorInternationalEnergyAgencyIEA.CCBY4.0.5TABLEOFCONTENTSENERGYINSIGHTSExecutivesummary......................................................................................................11Covid-19response..........................................................................................................13Addressingenergypovertyandhighenergyprices........................................................14ReducingdependenceonRussianfossilfuels...............................................................14Keyrecommendations....................................................................................................151.Generalenergypolicy..............................................................................................17Countryoverview............................................................................................................17Energysupplyanddemand............................................................................................18Keyenergysectorstakeholders......................................................................................20Energyandclimatepoliciesandtargets.........................................................................22Covid-19response..........................................................................................................24Addressingenergypovertyandhighenergyprices........................................................25ReducingdependenceonRussianfossilfuels...............................................................27Energytaxation...............................................................................................................28Fossilfuelsubsidies........................................................................................................30Assessment....................................................................................................................31Recommendations..........................................................................................................33ENERGYSYSTEMTRANSFORMATION2.Energyandclimatechange.....................................................................................35Overview.........................................................................................................................35Energy-relatedgreenhousegasemissions.....................................................................36Emissionsdriversandcarbonintensity...........................................................................38Climatetargets................................................................................................................38Climatepolicyandmitigationmeasures..........................................................................39EUEmissionsTradingSystem.......................................................................................42Methaneemissions.........................................................................................................43Carboncapture,utilisationandstorage..........................................................................43Climatechangeimpactsandadaptation.........................................................................44Assessment....................................................................................................................45Recommendations..........................................................................................................483.Energyefficiency......................................................................................................49Overview.........................................................................................................................49IEA.CCBY4.0.TABLEOFCONTENTS6Energydemandandefficiencyimprovements................................................................50Energyefficiencytargets.................................................................................................51Efficiencypolicyandmeasures.......................................................................................52Assessment....................................................................................................................63Recommendations..........................................................................................................664.Renewableenergy....................................................................................................69Overview.........................................................................................................................69Renewableenergytargets..............................................................................................70Renewableenergypolicyandmeasures........................................................................71Assessment....................................................................................................................82Recommendations..........................................................................................................855.Energyresearchanddevelopment.........................................................................89Overview.........................................................................................................................89Energyinnovationprioritiesandguidingdocuments.......................................................90Keyactorsintheenergytechnologyinnovationecosystem............................................91Resourcepush................................................................................................................91Knowledgemanagement................................................................................................94Marketpull......................................................................................................................95Monitoring,evaluationandtrackingofresults.................................................................95Assessment....................................................................................................................96Recommendations..........................................................................................................99ENERGYSECURITY6.Electricity.................................................................................................................101Overview.......................................................................................................................101Electricitydemand,generationandtrade......................................................................101Infrastructure.................................................................................................................103Marketstructure............................................................................................................109Electricitypolicy............................................................................................................115Electricitysecurity.........................................................................................................119Assessment..................................................................................................................121Recommendations........................................................................................................1247.Naturalgas..............................................................................................................127Overview.......................................................................................................................127Gasdemand,supplyandtrade.....................................................................................128Infrastructure.................................................................................................................130IEA.CCBY4.0.TABLEOFCONTENTS7TABLEOFCONTENTSMarketstructure............................................................................................................133Gaspolicy.....................................................................................................................136Gassecurity..................................................................................................................140Assessment..................................................................................................................142Recommendations........................................................................................................1438.Oil.............................................................................................................................145Overview.......................................................................................................................145Crudeoilsupply............................................................................................................146Oilproductssupply,demandandtrade........................................................................147Infrastructure.................................................................................................................149Marketstructure............................................................................................................151Oilpolicy.......................................................................................................................153Oilemergencyresponsepolicy.....................................................................................156Assessment..................................................................................................................158Recommendations........................................................................................................160ANNEXESANNEXA:Reviewteamandsupportingstakeholders............................................161ANNEXB:Keystatisticaldataandnotes.................................................................164ANNEXC:Glossaryandlistofabbreviations..........................................................168LISTOFFIGURES,TABLESANDBOXESFiguresFigure1.1Energyproduction,supplyanddemandinGreece,2021............................18Figure1.2TotalenergysupplyanddemandbysourceinGreece,2005-2021............19Figure1.3Greece’senergydemandbysectorandfuel,andelectricitygenerationbyfuel,2005-2021...................................................................................................20Figure2.1GreenhousegasemissionsbysectorinGreece,2005-2020andtargets...36Figure2.2Energy-relatedgreenhousegasemissionsbysectorandfuelinGreece,2005-2021............................................................................................................37Figure2.3Energy-relatedgreenhousegasemissionsandmaindriversinGreece,2005-2021............................................................................................................38Figure3.1EstimatedenergysavingsfromefficiencyinGreece,2000-2019................50Figure3.2TotalfinalconsumptionbysectorinGreece,2005-2021.............................50Figure3.3Greece’s2020and2030energyefficiencytargetsandstatus,2005-2021.51Figure3.4TotalfinalconsumptioninthebuildingsectorbysourceinGreece,2005-2021....................................................................................................................54Figure3.5Energyconsumptionbysourceandenergyintensityofresidentialspaceheating,2005-2020......................................................................................55IEA.CCBY4.0.TABLEOFCONTENTS8Figure3.6Totalfinalconsumptionintransportbyfuel,2005-2021,andbymodein2019........................................................................................................................................58Figure3.7TransportenergyintensityinselectedIEAcountries,2005-2020..................59Figure3.8RegisteredelectricvehiclesandpublicchargingpointsinGreece,2012-2022........................................................................................................................................60Figure3.9TotalfinalconsumptioninindustrybysourceinGreece,2005-2021.............62Figure4.1RenewableenergyintotalfinalenergyconsumptioninGreece,2005-2021.70Figure4.2RenewableenergyinkeymetricsinGreece,2021........................................70Figure4.3Greece’srenewableenergytargetsandstatus,2005-2021..........................71Figure4.4RenewableenergyinelectricitygenerationinGreece,2005-2021................72Figure4.5RenewableenergyinheatingandcoolinginGreece,2005-2021..................80Figure4.6RenewableenergyintransportinGreece,2005-2020...................................81Figure5.1R&DpublicspendingbysectorinGreece,2012-2020..................................92Figure5.2Newpatentsinenergy-relatedtechnologiesinGreece,2005-2019..............95Figure6.1ElectricitydemandbysectorinGreece,2005-2021....................................102Figure6.2ElectricitygenerationbysourceinGreece,2005-2021...............................103Figure6.3Greece’selectricityimportsandexports,2005-2021...................................103Figure6.4MajorexistingandplannedelectricityinfrastructureinGreece,2022..........104Figure6.5RegionaldepartmentsoftheGreekelectricitydistributionsystemoperator108Figure6.6OperationoftheGreekwholesaleelectricitymarket....................................110Figure6.7AnnualaveragehouseholdandindustryelectricitypricesinGreece,2Q2022......................................................................................................................................114Figure7.1ShareofnaturalgasinGreece’senergysystem,2005-2021......................128Figure7.2NaturalgasdemandbysectorinGreece,2005-2021.................................129Figure7.3Greece’snaturalgasnettradebycountry,2005-2021................................129Figure7.4Greece’snaturalgasimportsbysource,2005-2022...................................130Figure7.5NaturalgasinfrastructureinGreece............................................................131Figure7.6NaturalgaswholesalemarketsharebyvolumeinGreece,2020................133Figure7.7GasretailmarketsharebycompanyofgascustomersinGreece,2020.....134Figure7.8NaturalgaspricesinGreeceforindustryandhouseholds,2Q2022...........136Figure8.1SharesofoilinGreece’senergysector,2005-2021....................................146Figure8.2Greece’scrudeoilnetimportsbycountry,2005-2022.................................146Figure8.3OilproductsdemandbysectorinGreece,2005-2021.................................147Figure8.4OilproductsdemandbyproductinGreece,2005-2021..............................147Figure8.5OilproductsproductionbyproductinGreece,2005-2021...........................148Figure8.6Greece’soilproductsnetexportsbycountry,2005-2021............................148Figure8.7OilinfrastructureinGreece,2021................................................................150Figure8.8PricecomparisonfortransportationfuelsintheIEA,3Q2022....................153Figure8.9EmergencyoilstocksbytypeinGreece,January2011toSeptember2022156TablesTable1.1Greece’s2020and2030energysectortargetsandstatus..........................23Table1.2Excisedutybyfuelexcludingvalue-addedtaxinGreece,2022..................29Table2.1KeymitigationmeasuresandestimatedemissionsreductionsinGreece...40Table4.1RenewableenergyintransportbytypeinGreece,2020-2030....................81Table6.1InstalledcapacityinGreece,2016-2022andestimatedcapacity,2025-2030.................................................................................................105Table6.2Greece’sinterconnectioncapacity,2022andgrowththrough2025..........106Table6.3Greece’selectricitytransmissionsystem,2021.........................................107IEA.CCBY4.0.TABLEOFCONTENTS9TABLEOFCONTENTSTable6.4Greece’selectricitydistributionsystem,2020............................................107Table6.5SwitchingrateintheinterconnectedsysteminGreece,2020...................112Table6.6DistributionnetworkinterruptionstatisticsinGreece,2016-2020..............121Table6.7TransmissionnetworkinterruptionstatisticsinGreece,2017-2020...........121Table7.1CustomerswitchingratebycategoryinGreece,2020..............................135Table8.1OilrefinerycapacityinGreece,2020.........................................................149Table8.2Excisedutybyfuelexcludingvalue-addedtaxinGreece,2022................152BoxesBox3.1TheItalianandFrenchenergy-savingcertificatesystems...........................53IEA.CCBY4.0.11ENERGYINSIGHTSExecutivesummaryGreece’senergyandclimatepoliciesarecentredonachievingnetzeroemissionsby2050whileensuringenergysecurity,improvingeconomiccompetitivenessandprotectingvulnerableconsumers.TheNationalEnergyandClimatePlan(NECP),adoptedin2019,isthemaindocumentsettingenergyandclimatepolicythrough2030andincludestargetsandsupportingmeasurestoputthecountryonapathtonetzeroemissions.TheNationalClimateLaw,adoptedinMay2022,setstargetstoreducetotalgreenhousegas(GHG)emissionsby55%by2030,by80%by2040andtoreachnetzeroemissionsby2050.Itdefineskeyemissionsreductionmeasures,includingthephase-outoflignite-firedgenerationby2028.Greecehasseenareductionintheshareoffossilfuelsinitsenergysupply,mainlybecauseofdecreasinguseofligniteforelectricitygeneration.However,fossilfuelsarestillthedominantenergysourceinGreece,andstrongeffortsareneededtoreducefossilfueldemandinlinewithGHGemissionstargets.From2010to2021,theshareoffossilfuelsinenergysupplyfellfrom90%to82%oftotalenergysupply(comparedtoanIEAaverageof78%in2020).From2005to2021,theshareoflignite-firedgenerationfellfrom60%to10%,drivingdownthecarbonintensityofelectricitygeneration.Thedeclineinlignite-firedgenerationwasoffsetmainlybyincreasedgas-firedgeneration,alongwithgrowthingenerationfromwindandsolarphotovoltaics(PV).Greeceachievedmostofits2020energyandclimatetargets.However,asignificantshareofthereductioninenergydemandandGHGemissionswascausedbyGreece’sprolongedeconomiccontractionfollowingthe2008crisisandtheCovid-19pandemic.Greecehasreducedthecarbonintensityofitseconomy,butanincreaseindemandfollowingtheliftingofpandemicrestrictionsin2021isalreadyleadingtoincreasedGHGemissions.Lookingforward,Greece’senergypolicyfocusesonboostingtheuseofrenewableenergy,especiallyforelectricitygeneration,intandemwithincreasingtheshareofenergydemandcoveredbyelectricity,especiallyfortransportandheatingandcooling.Greecerecentlymadeseveralsignificantchangestoitssupportschemeforrenewableelectricitygenerationtoincreasetherateofdeploymentandensurelowelectricityprices.Greeceisalsotakingstepstoreducethetimeneededforlicensingandpermittingprojectsforrenewableenergy,electricityinfrastructureandenergystorage.InAugust2022,GreeceapproveditsfirstOffshoreWindLaw,whichaimsfor2gigawatts(GW)ofoffshorewindcapacityby2030.Renewableenergyintransportcomesmainlyfromabiofuelblendingmandate.Greeceisagloballeaderintheuseofsolarthermaltocoverbuildinghotwaterdemand.Greeceisplanningmajorinvestmentsinelectricityinfrastructure.ThisincludesexpandinginterconnectioncapacitytoincreaseintegrationwiththeEuropeanelectricitymarketandsupportthegoalofbecominganetelectricityexporter.ThegovernmenthasannouncedplanstodoublethecapacityofinterconnectionswithBulgaria,ItalyandNorthMacedonia;IEA.CCBY4.0.EXECUTIVESUMMARY12triplethecapacityofinterconnectionswithAlbania;andestablishaninterconnectionwithEgypt.Therearealsomajorinvestmentsplannedtoboostdomestictransmissionanddistributioncapacitytosupportmuchhigherlevelsofgenerationfromwind,solarPVandhydro.Thegovernmentalsoaimstoconnectthemostpopulatedislandstothemainlandelectricitygridby2030.Toensuretheefficientandeffectivefunctioningofitselectricitymarket,Greecefinalisedmajorreformsin2020tointroducethreewholesaleelectricityspotmarkets(day-ahead,intradayandbalancing)andaderivativesmarket.GreecehasalsocompletedseveralreformstosupportfullintegrationintheEuropeancommonelectricitymarket,includingjoiningtheintradayEuropeanmarketcouplinginDecember2022andopeningitsmarkettodemandresponseinSeptember2022.Greece’sgasmarkethasalsoundergonemajorchangesinrecentyears,withtheopeningofanaturalgasspotmarketinMarch2022asakeyachievement.Thegovernmentaimstoincreaseenergyefficiencyinallsectors,withtheNECPdefiningawiderangeofenergyefficiencymeasures.Anenergyefficiencyobligationschemeprovidedhigherenergysavingsthanexpectedbetween2017and2020,butGreecefellshortofachievingitsoverallenergy-savingtargetforthisperiod.BuildingontheexperienceofotherIEAmembercountries,Greececouldimprovetheschemeandincreaseenergysavingsthrough2030.AstheGreekbuildingstockisolderthantheEUandIEAaverage,itpresentsanotableopportunitytoachieveenergysavings.Existingmeasuresforbuildingsincludestricterbuildingcodesandavarietyofincentivesforthermalrenovations,upgradingheatingandcoolingsystems,andreplacingapplianceswithmoreefficientones.ThestockofvehiclesonGreekroadsisalsoamongtheoldestintheEuropeanUnion(EU).Inthetransportsector,subsidiesandfiscalmeasuresaimtoincreasetheadoptionofelectricvehicles(EVs),whilelocalauthoritiesareobligedtoprepareplanstopromoteamodalshiftawayfromprivatevehiclestopublictransit,cyclingandwalking.Industrysectormeasuresconsistmainlyofenergydemandaudits.Additionaleffortsareneededtorealisethefullpotentialofenergyefficiencyinallsectors,supportingenergysecurityandclimatetargets.Thegovernmentseesenergyresearchanddevelopment(R&D)asimportanttoachieving2030climatetargetsandthelong-termnetzeroemissionsgoal.TheNECPprovidesanoverviewofresearchareasthegovernmentdeemsmostcriticaltoachievingenergyandclimategoals.Theseincludenewtechnologiesforrenewableelectricitygeneration;electricitytransmission,distributionandstorage;heatingandcooling;energyefficiencyinbuildingsandindustry;low-costsmartelectromobility;advancedbiofuels;andGHGreductionsthroughlow-emissiontechnologiesinindustry.Greecehasalonghistoryofscientificexcellence,concentratedinasmallnumberofpublicinstitutions;however,significanteffortisneededtoboostthelevelofenergyR&DinGreeceandensureitisalignedwiththenetzeroemissionsgoal.Thereisapolicyfocusonreducingoildemand,whichcomesmostlyfromthetransportsector.ReducingoildemandfromroadtransportisachievedmainlythroughabiofuelblendingmandateandalsothroughincreasingsupportforEVs.Oilisalsoakeyfuelinthebuildingsector,coveringaroundaquarterofbuildingenergydemandin2020.Therearepolicyeffortstoreduceoil-firedbuildingheating.From2025,theinstallationofoilboilerswillnolongerbeallowed,andfrom2030,oilforheatingwillhavetocontainatleast30%byvolumeofrenewableliquidfuels.Greececontinuestorelyonoilforanotableshareofitselectricitygeneration–7%in2021–comparedtotheIEAaverageof2%in2020.IEA.CCBY4.0.EXECUTIVESUMMARY13ENERGYINSIGHTSOil-firedelectricitygenerationisusedmainlyonGreekislands,withthegovernmentaimingtophaseoutmostoil-firedgenerationby2030byinterconnectingislandstothemainlandelectricitygridandthedeploymentofrenewablesonislands.Keypolicydocuments(mostofwhichwereapprovedbefore2021)givenaturalgasamajorroleinreducinglignite-firedgenerationandoildemandfrombuildingheatingandindustry.FollowingtheRussiaFederation’s(hereafter“Russia”)invasionofUkraineandthesustainedincreaseingasprices,thegovernmentisre-evaluatingtheroleofgasintheGreekenergysystem.However,thefutureofnaturalgasintheGreekenergysystemremainsunclear,withmajorstepsbeingtakentoreducegasdemandinlinewithclimateandsecuritygoalswhileatthesametimelargeinvestmentsareplannedtoexpandgasinfrastructure,whichcouldleadtohighergasdemand.Thegovernmentaimstouseenergytaxationtodriveenergytransition.Greece’seffectivetaxratesonCO2emissionsfromenergyusearehighcomparedwithotherOECDcountries.However,taxratesvaryacrossfuelsanduses,aswellastaxconcessions,andprovideinconsistentcarbonpricesignalsthatarenotwellalignedwithGreece’sclimategoals.Therearenumerousexemptionsandreductionstoenergytaxation,manyofwhichlowerthecostoffossilfuels.Inaddition,electricitybillsincludeawiderangeoffeesandcharges,manyofwhichhavenorelationtoconsumers’electricityuse.Thisreducestheincentivetosaveenergyandmakeselectrificationalessattractiveoption.AsanEUmemberstate,Greecehascommittedtoeliminatefossilfuelsubsidies.However,theOECDestimatesthatin2020,GreeceprovidedoverEUR1.9billioninfossilfuelsubsidies.From2015to2020,fossilfuelsubsidiesdecreasedby14%becauseofreductionsindirecttransferssupportingoil-firedelectricitygenerationonnon-interconnectedislandsandlowerspendingonheatingallowances.Althoughdecreasing,fossilfuelsubsidieswerestillequivalenttomorethanone-quarterofenergytaxrevenue,amongthehighestshareintheOECD.Covid-19responseInresponsetotheCovid-19pandemic,theEuropeanUnionestablishedtheRecoveryandResilienceFacility,whichprovidesEUR724billionthrough2026tosupportrecoveryandresilienceplansdevelopedbyeachEUmemberstate.GreecewasamongthefirstEUmemberstatestosubmitaplan,inApril2021.Theplan(Greece2.0)isoneofthelargestfundingrequeststotheRecoveryandResilienceFacility(EUR30.5billion,equivalentto16.7%ofGreece’s2019grossdomesticproduct[GDP]).Theplanfundsenergyefficiencysubsidiesforresidentialbuildings(EUR1.1billion),businesses(EUR0.45billion)andthepublicsector(EUR0.2billion).Intheelectricitysector,thereisfundingtodeploy1.4GWofelectricitystorage(EUR0.45billion),interconnecttheislands(EUR0.2billion)andupgradeelectricitydistributionnetworks(EUR0.1billion).TheplanalsoincludesEUR0.2billiontoinstal8656publiclyaccessibleEVchargingpoints,deploy220electricbusesandreplaceoldertaxiswithEVs.TheplanfurtherincludesEUR0.3billionforenergyresearch,developmentanddemonstration(RD&D)relatingtoEVsandthedevelopmentofGreece’sfirstCO2storagefacility.Theplanalsosupportstheimplementationofavarietyofenergysectorreforms,includingimprovementstothemainfinancingmechanismforrenewablesandco-generationandtolicensingandspatialplanningforrenewables.IEA.CCBY4.0.EXECUTIVESUMMARY14AddressingenergypovertyandhighenergypricesGreece’sNECPnotesthatenergypovertyhasbeenincreasingandthatreducingitisanimportantpolicypriority;theobjectiveistoreduceitbyatleast50%by2025andbringitbelowtheEUaverageby2030.Thegovernmentestimatesthatin2021,17.5%ofthetotalpopulationand36.7%ofeconomicallyvulnerableconsumerswereunabletoadequatelyheattheirhomes;thesefiguresarehigherthanthe8%averagefortheEuropeanUnion.InSeptember2021,GreecereleasedanActionPlantoCombatEnergyPoverty,whichgivesaquantitativedefinitionofenergypovertyanddefinesabroadstrategybackedbyspecificmeasurestoreduceenergypoverty.Thesocialtariff(establishedin2010)isthemainpolicytooltoaddressenergypoverty.Itprovidesdiscountedelectricityratestoseveralcategoriesofeconomicallyorsociallyvulnerableresidentialconsumers.Thegovernmentestimatesthatin2019,500000-550000householdsbenefitedfromthesocialtariff.Startinginlate2021,globalenergypricesbegantoincreaserapidly,especiallyinEurope.Pricespikesandhighvolatilitypersistedinto2022,drivenmainlybytheimpactsofRussia’sinvasionofUkraine.Greecehastakennumerousstepstolimittheimpactofhighenergyprices,especiallyforvulnerableconsumers.TheGreekeffortsincludeexpandingexistingmeasurestargetingenergypovertyandintroducingbroadermeasurestoreduceenergypricesformostconsumers.FromSeptember2021toNovember2022,GreecededicatedEUR9billiontoenergysubsidiesandothermeasurestohelpconsumerspayutilitybills.MostofthissupportisdeliveredthroughtheEnergyTransitionFund,establishedin2021tofundavarietyofsubsidiesforelectricity,naturalgas,heatingoilandtransportationfuelstocombatenergypovertyandreducetheimpactofhighenergyprices.ReducingdependenceonRussianfossilfuelsGreecehasnotabledependenceonfossilfuelimportsfromRussia.In2021,Russiaaccountedfor96%ofhardcoalimports,41%ofnaturalgasimports,21%ofcrudeoilimportsandasmallshareofoilproductsimports.Hardcoalimportsareusedmainlyintheindustrysector,primarilyforsteelproduction.Gas-firedgenerationplaysakeyroleintheGreekelectricitysystem,andgasisalsoimportantforbuildingheatingandindustry.GreeceistakingstrongstepstodecreasenationalandEUdependenceonRussianenergyimports.Anewfloatingstorageunitattheliquefiednaturalgas(LNG)terminalstartedoperationsinAugust2022;thankstothenewunit,LNGcargoeshavedoubledyear-on-year,whileimportsfromRussiahavedroppedfrom40%tolessthan20%ofGreece’sgassupply.OneofGreece’smajorgasimportershassignedadealthatcouldsubstitutealmost100%ofGreece’sremaininggasimportsfromRussia.ConstructionofanewfloatingLNGterminalstartedinMay2022;itshouldbeoperationalbytheendof2023andwouldalmostdoubleGreece’sLNGimportcapacity.ThereareadditionalLNGterminalprojectsunderconsideration.Greeceincreasedlignitestockpilingtoserveasasecurityreserveincaseofdisruptionsinthegassupply.SincetheRussianinvasionofUkraine,GreecehasalsonotablyincreasedeffortstodeployrenewablesandincreaseenergysavingsaskeytoolstoreducerelianceonRussianenergy.IEA.CCBY4.0.EXECUTIVESUMMARY15ENERGYINSIGHTSKeyrecommendationsThegovernmentofGreeceshould:Reassesstheneedforinvestmentsinfossilfuelinfrastructure,takingintoaccounttheriskofstrandedassetsandtheneedtodirectlimitedcapitaltoinvestmentssupportingtheenergytransition.Ensuretransparentandstablelegalandregulatoryframeworks,whichenablerenewablesandelectricityinfrastructureprojectstobeimplementedwithinareasonabletimeframe.Streamlinetheproceduresforspatialplanningandlicencestofacilitatethetimelydeploymentofprojects.Adjusttaxes,marketregulationsandfinancialsupportmeasuressothatenergypricesdrivebehaviourandinvestmenttowardsajustenergytransition,increasesystemflexibilityandreducetheriskofstrandedassets.Focusbuildingrenovationprogrammesondeeprenovationsthatcombinethermalinsulationwithheatpumpstodelivermaximumbenefitsforenergysavingsandreducingbills.Vulnerablehouseholdsshouldreceivepriorityandadequateresources.Promotethereplacementofoldvehicles,especiallyfreighttrucks,byprovidingincentives,includingascrappingprogrammetotrade-inoldervehiclesformoreefficientones.IEA.CCBY4.0.17ENERGYINSIGHTS1.GeneralenergypolicyKeydata(2021)TES:851PJin2021,-24%since2011TESbysource:oil46.6%,coal8.4%,naturalgas26.8%,solarandwind8.2%,bioenergyandwaste6.0%,hydro2.5%,electricityimports1.6%Energyintensitypercapita(TES/capita):79.8GJ/capita(IEAaverage:167GJ/capita);-21%since2011EnergyintensityperGDP(TES/GDP):2.86MJperUSD(IEAaverageat3.78MJperUSD);-19%since2011TFC:637PJ;-20%since2011TFCbysector:buildings38.7%,transport36.4%,industry24.9%CountryoverviewGreece’senergyandclimatepoliciesarecentredontransitioningtoanetzeroemissionseconomyby2050whileensuringenergysecurity,improvingeconomiccompetitivenessandprotectingvulnerableconsumers.TheNECP,adoptedin2019,isthemaindocumentsettingenergyandclimatepolicythrough2030andincludestargetsandsupportingmeasurestoputthecountryonapathtonetzeroemissions.TheNationalClimateLaw,adoptedinMay2022,setstargetstoreducetotalGHGemissionsby55%by2030,by80%by2040andtoreachnetzeroemissionsby2050.Itdefineskeyemissionsreductionmeasures,includingthephase-outoflignite-firedgenerationby2028.Therecoveryandresilienceplan,Greece2.0,definesthemainstepstoaddresstheimpactsoftheCovid-19pandemicandincludesmajorfundingforenergysectorprojectsandreformsfocusingonenergytransition.Greece’splansforenergytransitionfocusonincreasinggenerationfromrenewables,especiallywindandsolarPV,coupledwithelectrificationofenergydemand,especiallyforbuildingheatingandcooling,andtransport.Greecealsointendstoimproveenergyefficiencyinallsectors.TheNECPandotherpolicydocumentsaimtogreatlyreducerelianceonligniteandoilbutgiveamajorroletonaturalgas,especiallyinelectricitygeneration,buildingheatingandindustry.FollowingtheRussianinvasionofUkraineandsustainedhighgasprices,thegovernmentisre-evaluatingtheroleofnaturalgasintheenergysystem,butexactplansforgasremainunclear,withsomestrongstepstakentoreducegasdemand(increasedsupportforrenewablesandenergyefficiency)whileotherssupportincreaseddemand(plannedinvestmentstoexpandthegasnetwork).IEA.CCBY4.0.1.GENERALENERGYPOLICY18EnergysupplyanddemandGreeceisreliantonimportedfossilfuelstocovermostofitsenergydemand(Figure1.1).Historically,anotableshareofelectricitydemandwascoveredbylignite-firedpowerplantslocatednexttoligniteminesinthenorthofGreece.However,domesticligniteproductionhassteadilydeclinedasGreecephasesoutlignite-firedgeneration.From2011to2021,domesticligniteproductiondroppedfrom314petajoules(PJ)to60PJ.Overthesameperiod,domesticenergyproductionfromrenewablesgrewfrom86PJto136PJ,mainlybecauseofincreasingelectricitygenerationfromwindandsolarPV.Greeceproducesonlyamarginalamountofoil(2.4PJin2021)andnaturalgas(0.2PJ)buthasindicatedinterestinincreasingdomesticoilandgasproduction.From2011to2019,Greece’stotalenergysupply(TES)decreasedby18%,from1122PJto924PJ,drivenmainlybytheprolongedcontractionoftheeconomy.Figure1.1Energyproduction,supplyanddemandinGreece,2021IEA.CCBY4.0.Otherrenewablesincludewind,solar,hydroandgeothermal.Source:IEA(2022).In2020,TESdroppedby11%to824PJ,mainlyduetothegreatlyreducedtransportenergydemandresultingfromtheCovid-19pandemic.Itroseagainto851PJin2021(Figure1.2).Greecehasseenareductioninthesharesoffossilfuelsinitsenergysupply,butfossilfuelsarestillthedominantenergysource.From2011to2021,thecombinedsharesoffossilfuelsinTESfellfrom91%to82%ofTES(comparedtoanIEAaverageof78%in2020).OilcoversthelargestshareofTES,andfrom2011to2021,theshareofoilinTESfluctuatedaroundtheaverageof47%.Overthesameperiod,atransitionfromlignite-firedgenerationtogas-firedgenerationreducedtheshareofcoalinTESfrom29%to8.4%,whiletheshareofgasinTESincreasedfrom15%to27%.From2011to2021,theshareofsolarandwindinTESsteadilyincreased,from2.2%to8.2%,andtheshareofbioenergyandwastegrewfrom4.8%to6%.Theshareofelectricityimportsfluctuatedbetween0.6%and3.9%.Electrificationofenergydemandisincreasing.From2011to2021,theshareofenergydemand(TFC)coveredbyelectricityincreasedfrom23%to28%(comparedtoanIEAaverageof23%in2020).0100200300400500600700800900ProductionTotalenergysupplyTFC(byfuel)TFC(bysector)PJOtherrenewablesDistrictheatElectricityBioenergyandwasteNaturalgasOilCoalTransformationsandlossesIndustryTransportBuildingsImportsIEA.CCBY4.0.1.GENERALENERGYPOLICY19ENERGYINSIGHTSFigure1.2TotalenergysupplyanddemandbysourceinGreece,2005-2021TotalenergysupplyIEA.CCBY4.0.TotalfinalconsumptionIEA.CCBY4.0.Source:IEA(2022).BuildingsaccountforthehighestshareofGreece’sTFC(Figure1.3).Anotableshareofbuildingsdemandiscoveredbyelectricity,50%in2021,comparedtotheIEAaverageof44%.Greecealsohasahighuseofoilforbuildingheating.Oilcovered21.1%ofbuildingsenergydemandin2021,muchhigherthantheIEAaverageof9.7%.Thankstomulti-decadepolicysupportforsolarthermalcollectors,Greeceisaleaderintheshareofbuildingenergydemandcoveredbysolarthermal(5.1%in2021,comparedtotheIEAaverageofjust0.6%).020040060080010001200140020052006200720082009201020112012201320142015201620172018201920202021PJElectricityimportsHydroBioenergyandwasteSolarandwindCoalNaturalgasOil0100200300400500600700800900100020052006200720082009201020112012201320142015201620172018201920202021PJHeatCoalSolarBioenergyandwasteNaturalgasElectricityOilIEA.CCBY4.0.1.GENERALENERGYPOLICY20Figure1.3Greece’senergydemandbysectorandfuel,andelectricitygenerationbyfuel,2005-2021IEA.CCBY4.0.Source:IEA(2022).AsinmanyIEAmembercountries,Greece’stransportsectorremainsalmostcompletelyreliantonoil,whichcovered95.4%oftransportTFCin2021,whileasmallsharewascoveredbybiofuelsblendedwithdieselandgasoline(3.9%).Averylowsharewascoveredbyelectricity(0.3%,mainlyinrail),comparedtotheIEAaverageof0.9%.GreeceonlyhasalimiteddeploymentofEVs,whichaccountedforjust0.2%ofpassengervehiclesin2020(versustheEUaverageof1.6%).IndustryaccountsforarelativelylowshareofTFC,reflectingtheGreekeconomy’sfocusontheservicesector.In2021,industryaccountedfor24.9%ofTFC,comparedtotheIEAaverageof36%.Themainindustrysubsectorsarechemicalandpetrochemical(19%ofindustryTFCin2021),non-ferrousmetals(19%),non-metallicminerals(19%),foodandtobacco(14%),agriculture/forestry(9%),andconstruction(7%).Becauseofthelowerroleofheavyindustry,theGreekindustrysectorhasarelativelyhighershareofelectricityinTFC(33%in2021)thantheIEAaverage(23%).From2005to2021,theGreekelectricitygenerationmixunderwentamajortransformation,withtheshareoflignite-firedgenerationfallingfrom60%to10%.Thedeclineinlignite-firedgenerationhasbeenoffsetmainlybyincreasedgas-firedgeneration,whichgrewfrom14%to41%ofgeneration,alongwithgrowthinwind(2%to20%)andsolarPV(0.02%to10%).Hydrogenerationandelectricityimportsplaynotablebuthighlyvariableroles,withhydrorangingfromaminimumof4.1%ofgenerationin2007toamaximumof13%in2010andimportsrangingfromaminimumof2.9%in2012toamaximumof20%in2019.Greececontinuestorelyonoilforanotableshareofitsgeneration,7.4%in2021,comparedtotheIEAaverageof2%in2020.Oil-firedgenerationismainlyusedonGreekislands.KeyenergysectorstakeholdersTheMinistryofEnvironmentandEnergy(MoEE)isresponsiblefordesigningandimplementingenergyandclimatepolicy.TheMoEEalsohasresponsibilityfortrackingprogressonclimatetargetsandreportingGHGemissionstotheUnitedNationsFrameworkConventiononClimateChange(UNFCCC).TheMinistryofFinanceis050100150200250300IndustryBuildingsTransportNetelectricityimportsSolarHydroBioenergyandwasteCoalNaturalgasElectricityOilPJEnergydemand,20210102030405060702005201020152021TWhElectricitygenerationandimportsIEA.CCBY4.0.1.GENERALENERGYPOLICY21ENERGYINSIGHTSresponsiblefortaxationandfiscalpolicy,includingenergytaxation.TheMinistryofDevelopmentandInvestmentsisresponsibleforinvestmentpoliciesintheenergysectorandforfinancingenergyinnovationandresearchthroughnationalandEUresources.WithintheMoEE,theGeneralSecretariatforEnergyandMineralResourcesisresponsibleforimplementingenergypolicyinsectorsincludingelectricity,oil,gas,renewablesandenergyefficiencyandfordisseminatingenergystatistics.TheDirectorateofEnergyPoliciesandEnergyEfficiencyandtheEnergyInspectorateUnitsoftheGeneralDirectorateofInspectorsandAuditorsarecentrallyinvolvedinenergyefficiencypolicydevelopmentandimplementation.TheCentreforRenewableEnergySourcesandSavingisresponsibleforpromotingrenewableenergy,rationaluseofenergyandenergyconservation.TheCentreforRenewableEnergySourcesandSavingisapublicentity,supervisedbytheMoEE,butwithfinancialandadministrativeindependence.Itimplementsinnovativeprojectsandpromotesmarketpenetrationofnewenergytechnologiesforrenewablesandefficiency.TheRegulatoryAuthorityforEnergy(RAE)isafinanciallyandadministrativelyindependentauthoritythatoverseesGreekenergymarkets.IthasaconsentingopinionontheNationalGasandElectricityGridOperationCode,thePowerExchangesCode,andtheGasandPowerDistributionNetworkOperationCode.TheRAEisalsoresponsibleforlicensingenergymarketparticipantsandoverallenergymarketsupervision.ItplaysadecisiveroleinmarketreformsandneedstoensurethatthebehaviourofthevarioussystemoperatorsandmarketparticipantscomplieswithEUregulations.TheHellenicCompetitionCommissionworkstoensuremarketcompetitioninGreece,includingintheenergysector.Itcanmakeinquiriesrelatingtomarketpowerormarketabuseandactsasanadvisorybodytothegovernment.ItisoverseenbytheMinistryofFinancebutisfinanciallyandoperationallyindependent.TheHellenicRepublicAssetDevelopmentFundisastate-controlledentitythatmanagestheprivatisationofstate-controlledassets.UnderthetermsoftheEUbailoutsreceivedfrom2010to2019,Greeceisrequiredtoprivatiseawiderangeofstate-controlledcompaniesandassets,manyofwhichplaykeyrolesintheenergysector.TheHellenicRepublicAssetDevelopmentFundisresponsibleformeetingrevenuetargetsfromthesaleandleasingofstate-controlledassets.Therevenuesfromtheseactivitiesareusedmainlytopayoffdebtresultingfromthebailouts,withsomerevenuessupportingnewinvestmentsinGreece.ThePublicPowerCorporationS.A.(PPC)isthehistoricincumbentelectricitycompany.PPCownsthelargestshareofinstalledgenerationcapacity,includingmostlignite-firedgenerationandassociatedmines,andalllarge-scalehydrogeneration.ThePPCisthelargestelectricitysupplieratthewholesaleandretaillevel.InNovember2021,theGreekstatereduceditsownershipshareinPPCfrom51%to34%(PPC,2022).TheIndependentPowerTransmissionOperatorS.A.(IPTO)istheGreekelectricitytransmissionsystemoperator(TSO),responsiblefortheoperation,maintenanceanddevelopmentoftheelectricitytransmissionsystemandcross-borderinterconnections.IPTOisownedfor76%bytheGreekstateand24%bytheChinesecompanyStateGrid(ADMIEHolding,2022).TheHellenicElectricityDistributionNetworkOperatorS.Α.(HEDNO)istheGreekelectricitydistributionsystemoperator(DSO).Itoperates,maintainsanddevelopstheIEA.CCBY4.0.1.GENERALENERGYPOLICY22electricitydistributionsystemsinmainlandGreeceandintheinterconnectedislands,andmanagestheelectricitymarketsanddistributiongridsofnon-interconnectedislands.HEDNOisowned51%byPPCand49%bytheAustralianprivatecompanyMacquarieAssetManagement(HEDNOS.A.,2022).TheHellenicGasTransmissionSystemOperatorS.A.(DESFA)ownsandoperatesthehigh-pressuregastransmissionnetworkandGreece’sonlyLNGterminal.DESFAisowned34%bytheGreekstateand66%bySENFLUGA,apartnershipownedbytheSpanishandBelgiangasTSOs.DEPAInfrastructureS.A.ownsthreegasDSOsthatservemostgasconsumersinGreece(EDAAttikis,EDAThessandDEDA).DEPAInfrastructure,formerlypartoftheincumbentstate-ownedgascompany,is100%ownedbytheprivateItaliancompanyItalgas(Italgas,2021).AnewDSO,theprivatecompanyHENGAS,wasissuedalicencebytheRAEin2020todevelopnewdistributiongasnetworksinnineareasofGreece(HENGAS,2022).TheOperatorofRenewableEnergySourcesandGuaranteesofOrigin(DAPEEPS.A.)managesthesubsidyschemesforrenewableenergyandhigh-efficiencyco-generationandtheauctioningofEUEmissionsTradingSystem(ETS)allowances.Italsoactsastheaggregatoroflastresortforrenewableenergyproducers.TheHellenicPetroleumS.A.(HELPE)isthecountry’sleadingoilimporter,refiner(65%marketshare),andretailer(over30%marketshare).HELPEisownedbythePaneuropeanOilandIndustrialHoldingsS.A.(47%),theGreekstate(35.5%),andinstitutional(8.5%)andprivate(9%)investors.TheHellenicHydrocarbonsResourcesManagementS.A.(HHRM)isa100%state-ownedcompanyresponsibleformanagingexplorationandproductionconcessionsfordomesticoilandgasandforoverseeingoffshoresafetyofoilandgasoperations.TheHHRM’smandatewasexpandedin2022tocoverlicensingandmonitoringofcarboncaptureandstorageprojects(HEREMA,2022).EnergyandclimatepoliciesandtargetsGreece’senergyandclimatepoliciesarecentredontransitioningtoanetzeroemissionsenergysystemby2050whileensuringenergysecurity,improvingeconomiccompetitivenessandprotectingvulnerableconsumers.TheNECPisthekeydocumentdefiningenergyandclimatepoliciesthrough2030.Itsetsnationalclimateandenergytargetsanddefinesthemeasurestosupporttheachievementofthesetargets.EnergyandclimatepoliciesforthetransportsectorarealsogivenintheNationalTransportPlanofGreece,adoptedinJune2019,whichdefinesthetransportsector’sdevelopmentstrategyfrom2017to2037(seeChapter3).Greece’senergypolicyfocusesonincreasingtheuseofrenewableenergy,especiallyforelectricitygeneration(seeChapter4),whileincreasingtheshareofenergydemandcoveredbyelectricity,especiallyfortransportandheatingandcooling(seeChapters3and6).Reducingthecarbonintensityofelectricitygenerationisalsosupportedbyalegalrequirementtophaseoutlignite-firedgenerationby2028.Thegovernmentalsoaimstoincreaseenergyefficiencyinallsectors(seeChapter3)andtopromoteinnovativeenergytechnologiesthatsupportGreece’senergytransitionandeconomicgrowth(seeChapter5).Greeceaimstoreduceoildemand,especiallyfromtransport,buildingsandIEA.CCBY4.0.1.GENERALENERGYPOLICY23ENERGYINSIGHTSelectricitygenerationontheislands,whilemaintainingthesecurityofoilsupply(seeChapter8).Keypolicydocuments(mostofwhichwereapprovedbefore2021)givenaturalgasamajorroleinreducinglignite-firedgenerationandoildemandfrombuildingheatingandindustry.FollowingtheRussianinvasionofUkraineandthesustainedincreaseingasprices,thegovernmentisre-evaluatingtheroleofgasintheGreekenergysystem(seeChapter7).Thegovernmentestimatesthatachievingthe2030NECPtargetswillrequireinvestmentstotallingEUR43.8billionfrom2021to2030.TheEuropeanCommission’sreviewoftheNECPnotesthatwhileoverallinvestmentfiguresaregivenperpolicyarea,thesplitbetweenpublicandprivatefundingisnotspecified,andtheNECPlacksananalysisofthegapbetweeninvestmentneedsandavailablesourcesoffinancing.UndernationallawsandEUdirectives,Greecehasnumerousenergyandclimatetargets(Table1.1).GHGemissionsfromGreece’senergy-intensiveindustryandlarge-scaleelectricitygenerationareregulatedundertheETS.Greece’sNECP,adoptedin2019,defines2030targetsfornon-ETSGHGemissions,renewableenergy,energyefficiencyandcross-borderelectricityinterconnections.TheNationalClimateLaw,adoptedinMay2022,setstargetstophaseoutlignite-firedelectricitygenerationby2028andtoreducetotalGHGemissionsby55%by2030,by80%by2040andtoachievenetzeroemissionsby2050.Greeceachievedmostofits2020energyandclimatetargets.However,asignificantshareofthereductioninGHGemissionsandenergydemandwascausedbyGreece’sprolongedeconomiccontractionfollowingthe2008crisisandbytheCovid-19pandemic.Greecehasreducedthecarbonintensityofitsenergysupplyandeconomy,butanincreaseindemandfollowingtheliftingofpandemicrestrictionsisalreadyleadingtoanincreaseinGHGemissions.Table1.1Greece’s2020and2030energysectortargetsandstatusTargetMetricStatus(2021)2020targets2030targetsTotalGHGemissionsCO2-eqemissionsversus2005-38%(2020)Notarget-55%Non-ETSGHGemissionsCO2-eqemissionsversus2005-28%(2020)-4%-16%Energyefficiency(PJ)Primaryenergyconsumption8511034858Finalenergyconsumption637770690RenewableenergyshareGrossfinalenergyconsumption22%19.7%35%Electricity36%29.2%61%Heatingandcooling32%30.6%42.5%Transport5.3%6.6%19%Cross-borderelectricityinterconnection9.3%(2019)10%15%TheEuropeanCommission’sofficialreviewofGreece’sNECPnotedthatifGreeceimplementsallitsNECPmeasures,itwillachieveanemissionsreductionof33%versus2005,wellbeyondits2030targetandthecontributionneededtomeettheEU-widetarget.Thereviewindicatedthatthe2030targetforrenewablesingrossfinalenergyconsumptionexceedstheneededcontributiontotheEU-widetarget.However,theEuropeanIEA.CCBY4.0.1.GENERALENERGYPOLICY24Commissionalsonotedthatthe2030targetforprimaryenergyconsumptionwasofmodestambition,andthe2030targetforfinalenergyconsumptionoflowambition(EC,2020).InDecember2020,the2030EU-wideGHGemissionsreductiontargetwasincreasedfrom40%to55%.TosupporttheincreasedtargetandtheREPowerEUeffortstoendrelianceonRussianenergy,theEuropeanUnionisupdatingnumerouspoliciesthroughtheFit-for-55package,whichwilllikelyincludehighertargetsforrenewablesandenergyefficiency.GreecehasstartedupdatingitsNECPtoreflecttheincreasedEUclimateandenergysecurityambition.AllEUmemberstatesarerequiredtodevelopaNationalLong-termStrategythatdetailspathwaysandmeasuressupportingEU-widecarbonneutralityby2050.Greece’slong-termstrategy,adoptedin2019,presentsfourpathwaystocarbonneutrality,withmodellingresultsshowingGHGemissionsreductionsof85-95%by2050comparedwith1990.TheNationalClimateLaw,adoptedinMay2022,strengthensGreece’slong-termclimateambitionwithatargetfornetzeroemissionsby2050(seeChapter2).Toensuretheefficientandeffectivefunctioningofitselectricitymarket,Greecefinalisedmajorreformsin2020tointroducethreewholesaleelectricityspotmarkets(day-ahead,intradayandbalancing)andaderivativesmarket.GreecehasalsocompletedseveralreformstosupportfullintegrationintheEuropeancommonelectricitymarket,includingjoiningtheintradayEuropeanmarketcouplinginDecember2022andopeningitsmarkettodemandresponseinSeptember2022.Greece’sgasmarkethasalsoundergonemajorchangesinrecentyears,withtheopeningofanaturalgasspotmarketinMarch2022asakeyachievement.Covid-19responseInresponsetotheCovid-19pandemic,theEuropeanUnionestablishedtheRecoveryandResilienceFacility,whichprovidesEUR724billionthrough2026tosupportrecoveryandresilienceplansdevelopedbyeachEUmemberstate.TheplansdetailprojectsandreformstoaddresstheimpactsofCovid-19,includingimpactsontheenergysector.GreecewasamongthefirstEUmemberstatestosubmitaplaninApril2021.TheEuropeanCommissionapprovedtheplaninJuly2021,authorisingEUR30.5billioninfunding(EUR17.8billioningrantsandEUR12.7billioninloans).Theplan(Greece2.0)isoneofthelargestfundingrequeststotheRecoveryandResilienceFacilityandisequivalentto16.7%ofGreece’s2019GDP.Theplandedicates37.5%offundingtoclimateobjectivesand23.3%todigitaltransitionandincludesnumerousprojectstargetingtheenergysector(EuropeanParliament,2022).Theplanfundsenergyefficiencysubsidiesforresidentialbuildings(EUR1.1billion),businesses(EUR0.45billion)andthepublicsector(EUR0.2billion).Intheelectricitysector,thereisfundingtodeploy1.4GWofelectricitystorage(EUR0.45billion),interconnecttheislands(EUR0.2billion)andupgradeelectricitydistributionnetworks(EUR0.1billion).TheplanalsoincludesEUR0.2billiontoinstal8656publiclyaccessibleEVchargingpoints,deploy220electricbusesandreplaceoldertaxiswithEVs.TheplanfurtherincludesEUR0.3billionforenergyRD&DrelatingtoEVsandthedevelopmentofGreece’sfirstCO2storagefacility.TheplanalsosupportstheimplementationofavarietyIEA.CCBY4.0.1.GENERALENERGYPOLICY25ENERGYINSIGHTSofenergysectorreforms,includingimprovementstothemainfinancingmechanismforrenewablesandco-generationandtolicensingandspatialplanningforrenewables(Greece,Greece2.0,2022a).Thepandemiccausednotablesupplychaindisruptionsandreducedtheavailabilityofworkers,delayingmanyrenewableenergyprojectsandcreatingrisksthatlicenses,gridconnectionoffersandeligibilityforsubsidieswouldexpirebeforeprojectscouldmeetneededmilestones.InMarch2020,thegovernmentgrantedfour-tosix-monthextensionstocomplywithavarietyofprojectrequirementstohelpprojectdeveloperscopewithpandemicdisruptions.InOctober2020,GreeceannouncedEUR450millioninsupporttocompaniesinsectorsparticularlyaffectedbypandemicconfinementmeasures,includingenergy,transport,tourismandconstruction.Thesupportisprovidedassubsidisedloansforcompanieswithupto3000employees.AddressingenergypovertyandhighenergypricesGreece’sNECPnotesthatenergypovertyhasbeenincreasingandthatreducingitisanimportantpolicypriority;theobjectiveistoreduceitbyatleast50%by2025andbringitbelowtheEUaverageby2030.Thegovernmentestimatesthatin2021,17.5%ofthetotalpopulationand36.7%ofeconomicallyvulnerableconsumerswereunabletoadequatelyheattheirhomes;thesefiguresarehigherthanthe8%averagefortheEuropeanUnion.Thesocialtariff(establishedin2010)providesdiscountedelectricityratestoseveralcategoriesofeconomicallyorsociallyvulnerableresidentialconsumers.Thediscountedratesaresetbythegovernmentandvarydependingonthecategoryofconsumerandtheirlevelofelectricitydemand.In2022,therateswere0-70eurospermegawatthour(EUR/MWh)forfourmonthsofdemandupto800kilowatthours(kWh),40-80EUR/MWhforfourmonthsofdemandfrom0.8MWhto1.5-1.7MWh,and95EUR/MWhforfourmonthsofdemandover1.5-2MWh(withtheupperlimitsdependingonthetypeofconsumer).Thesearenotablereductionscomparedtotheaverageretailpriceofaround240EUR/MWhin2021(Protergia,2022).Thesocialtariffisfinancedmainlythroughthepublicserviceobligationfeechargedtoallelectricityconsumersthatdonotqualifyforthesocialtariff.Allelectricitysuppliersareobligedtoofferthesocialtarifftoqualifyingconsumers.Thegovernmentestimatesthatin2019,500000-550000householdsbenefitedfromthesocialtariff.InSeptember2021,GreecereleasedanActionPlantoCombatEnergyPoverty,whichgivesaquantitativedefinitionofenergypovertyanddefinesabroadstrategybackedbyspecificmeasurestoreduceenergypoverty.Theplansincludemeasurestoraiseconsumers’awarenessofexistingprogrammesandindicatethatimprovingbuildingenergyefficiencyiskeytoreducingenergypoverty(Greece,MinistryofEnvironmentandEnergy,2021).Startinginlate2021,globalenergypricesbegantoincreaserapidly,especiallyinEurope.Pricespikesandhighvolatilitypersistedinto2022,drivenmainlybytheimpactsoftheRussianinvasionofUkraine.InMarch2022,theGreekwholesaleelectricityspotpricereachedarecordhighof427EUR/MWh;inQ12022,thespotpriceaveraged236EUR/MWh,comparedtojust54EUR/MWhinQ12021(Tsarikas,2022).IEA.CCBY4.0.1.GENERALENERGYPOLICY26Greecehastakennumerousstepstolimittheimpactofhighenergyprices,especiallyforvulnerableconsumers.TheGreekeffortsincludeexpandingexistingmeasurestargetingenergypovertyandintroducingbroadermeasurestoreduceenergypricesformostconsumers.FromSeptember2021toNovember2022,GreecededicatedEUR9billiontoenergysubsidiesandothermeasurestohelpconsumerspayutilitybills.MostofthissupportisdeliveredthroughtheEnergyTransitionFund,establishedin2021tofundavarietyofsubsidiesforelectricity,naturalgas,heatingoilandtransportationfuelstocombatenergypovertyandreducetheimpactofhighenergyprices.TheEnergyTransitionFundisfinancedviaseveralsources.Since2021,mostETSallowancerevenues(around75%)havebeendirectedtotheEnergyTransitionFund.Thefundalsoreceivesrevenuefromaone-timefeeonelectricitygeneratorprofitsandrevenuesoverthewholesaleelectricitypricecaps.Theheatingoilallowance(establishedin2019)providesgrantstovulnerableconsumerstoreducethecostofoil-basedheating.In2021,therequirementswererelaxedtoincreasethenumberofconsumers,withfundingprovidedbytheEnergyTransitionFund.TheallowanceisagrantofEUR100-750peryearforhouseholdswithanannualincomebetweenEUR14000andEUR29000andapropertyvaluebetweenEUR180000andEUR250000.In2021,around1millionhouseholdsreceivedaheatingoilallowance(upfrom700000in2020)atacostofEUR168million(upfromEUR84millionin2020)(AthensNews,2021).InApril2022,thegovernmentlaunchedanonlineplatformprovidingdirectpaymentstoconsumerstooffsetthehighcostofroadtransportationfuels.Thetransportfuelsubsidyis0.15-0.2EUR/litreforupto60litresoffuelpermonthandisavailabletoconsumerswithanannualincomebelowEUR30000.InSeptember2021,thegovernmentestablishedaone-timefeeonprofitsearnedbygeneratorsinGreece’swholesaleelectricitymarketfrom1October2021to30June2022.TherevenuecollectedviathefeewasdirectedtotheEnergyTransitionFund.Thetotalrevenuefromtheone-timewindfallprofitfeeisaroundEUR500million.InJuly2022,thegovernmentintroducedwholesaleelectricitymarketpricecaps.ThepricecapsforgenerationfromnaturalgasandlignitearebasedonfuelcostsandETSallowancepricesandareadjustedonamonthlybasis.InDecember2022,thepricecapwas240EUR/MWhforgas-firedgenerationand200EUR/MWhforlignite-firedgeneration.Thepricecapsforlargehydropower(110EUR/MWh)andotherrenewables(85EUR/MWh)arefixed.AnyrevenuereceivedabovethesecapsisusedtoreduceconsumerenergybillsthroughtheEnergyTransitionFund.InOctober2022,thegovernmentupdatedthepaymentschemeforreducingconsumerelectricitybillstoathree-bracketsystemwithhighersubsidiesforlowerdemandanddiscountstorewardenergysavings.Thenewsubsidyis436EUR/MWhforconsumerswithdemandfrom0to500kWh/month.Forconsumerswithademandof501-1000kWh/month,thesubsidyis386EUR/MWhbutcanbeincreasedto436EUR/MWhifdemandisreducedbyatleast15%comparedtothepreviousyear.Forconsumerswithdemandabove1001kWh/month(lessthan2%ofhouseholds),thesubsidyis336EUR/MWhbutcanbeincreasedto386EUR/MWhifdemandisreducedbyatleast15%comparedtothepreviousyear.Forbusinesseswithdemandabove2000kWh,thesubsidyis398EUR/MWh.Forconsumersreceivingthesocialtariff,theIEA.CCBY4.0.1.GENERALENERGYPOLICY27ENERGYINSIGHTSsubsidyis485EUR/MWhregardlessofthelevelofdemand.Farmersreceiveasubsidyof436EUR/MWh.ThegovernmentestimatesthesesubsidieswillcostaroundEUR1.1billion.StartinginOctober2022,gas-firedgenerationischargedafeeof10EUR/MWhongasdemandtofundreductionsinelectricitybillsandinvestmentstoreducerelianceonRussiangasimports;atthesametime,thegovernmentannouncedthatsubsidiesfornaturalgasdemandwillbecontinuedat90EUR/MWhforhouseholdsand90EUR/MWhforbusinesses(BusinessDaily,2022).ReducingdependenceonRussianfossilfuelsGreecehasnotabledependenceonfossilfuelimportsfromRussia.In2021,Russiaaccountedfor96%ofhardcoalimports,41%ofnaturalgasimportsand21%ofcrudeoilimportsandasmallshareofoilproductsimports.Hardcoalimportsareusedmainlyinindustry,primarilyforsteelproduction.Gas-firedgenerationplaysakeyroleintheGreekelectricitysystem,andgasisalsoimportantforbuildingheatingandindustry.InJanuary2022,justpriortotheRussianinvasionofUkraine,DEPACommercial(oneofGreece’smainwholesalegassuppliers)signedacontractwithRussia'sGazpromfor2billioncubicmetres(bcm)ofgasperyeargasuntil2026(Reuters,2022).In2021,Greece’stotalgasdemandwas6.4bcm.GreeceistakingstrongstepstodecreasenationalandEUdependenceonRussiangas(seeChapters7and8).GreecealsosupportstheEUbansonimportsofRussiancoalandoil.InMarch2022,theEUimposedsanctionsbanningallimportsofRussiancoal,whichcameintofulleffectinAugust2022.InJune2022,theEUimposedsanctionsbanningseaborneimportsofRussiancrudeoilstartingon5December2022andRussianpetroleumproductimportsstartingon5February2023.Greecereceivesallofitscrudeoilimportsandmostofitsoilproductsimportsviaship.ShortlyfollowingtheRussianinvasionofUkraine,GreeceannouncedplanstoboostimportcapacityatitsLNGimportterminal.AnewfloatingstorageunitattheLNGterminalstartedoperationsinAugust2022,andDESFAindicatesthatLNGcargoeshavedoubledyear-on-yearandthatimportsfromRussiahavedroppedfrom40%tolessthan20%ofGreece’sgassupply.BulgariahasalsobeenimportingLNGthroughtheterminalafterbeingcutofffromRussiansuppliesinApril2022.TheGreekgovernmentindicatedthatthankstoincreasedLNGcapacityanddeliveries,gasexportstoBulgariaincreasedfrom0.7bcmin2021to2bcmthroughSeptember2022(Koutantou,2022).InSeptember2022,DEPACommercialreachedanagreementwithTotalEnergiesofFrancetosecurenaturalgassuppliesforGreeceintheeventthatimportsfromRussiaaredisrupted.ThedealallowsdeliveriesoftwoLNGcargoesthroughMarch2023,whichthegovernmentestimatescouldsubstitutealmost100%ofGreece’sremaininggasimportsfromRussia(Ekathimerini,2022).ConstructionofanewfloatingLNGterminalstartedinMay2022;itshouldbeoperationalbytheendof2023andwouldalmostdoubleGreece’sLNGimportcapacity.AdditionalLNGterminalprojectsareunderconsideration.IEA.CCBY4.0.1.GENERALENERGYPOLICY28GreecehasannouncedthatitwilltakestepstoaccelerateoilandgasexplorationtoreducerelianceonRussianimports.TheHHRMwantstoconcludeafirstroundofseismicsurveysin2023toidentifygasfieldsinoneonshoreandfiveoffshoreareasinwesternGreeceandofftheislandofCrete.Energean,currentlytheonlyoilproducerinGreece,aimstocarryouttestdrillingatanonshoreblockinthewestofthecountry,thefirsttestdrillinginGreecein22years.TheGreekPrimeMinistersaidthecountryaspirestobecomeasignificantgasproducerandahubforstorageandtransferstotherestofEurope(KoutantouandMaltezou,2022).PriortotheRussianinvasionofUkraine,thePPCwasplanningtoreplacelignite-firedgenerationwithgas-firedgenerationby2023.InJune2022,thePPCannouncedthatthephase-outoflignite-firedgenerationwasbeingextendedto2028andincreasedextractionoflignitein2022from10milliontonnes(Mt)to15Mt,withtheadditionallignitetoserveasasecurityreserveincaseofdisruptionsinthegassupply.ThePPChasalsoaccelerateditsinvestmentinrenewablegeneration.InMay2022,theEuropeanCommissionintroducedtheREPowerEUplan,whichproposesnumerousmeasurestoendEUrelianceonRussianenergywhilesupportingtheenergytransition.REPowerEUwillprovideEUR225billioningrantfundingtosupporttheseefforts.InOctober2022,theGreekMinistryofFinanceannouncedthatitexpectedtoreceiveEUR8.7billionfromtheREPowerEUfunds,whichwillbedirectedtoexistingprojectsandreformsdefinedinGreece’srecoveryandresilienceplan(Energypress,2022).UndertheREPowerEUplan,theEuropeanUnionadoptedanaturalgasstorageobligationrequiringthatEUgasstoragefacilitiesbeatleast80%fullby1November2022and90%fullby1Novemberinsubsequentyears.Memberstateswithoutlarge-scalestoragefacilitiesmuststoregasequaltoatleast15%oftheirannualgasdemandby1November2022.Greecehasnolarge-scalegasstorageandintendstousegasstoredinItalyandatanewfloatingstorageunitatitsLNGterminaltomeettheEUgasstoragerequirement.TheIEAisworkingwiththeEuropeanCommissiontosupportEUmemberstateswithimplementingmeasuresthatwillresultinsustainedreductionsintheirdependenceonRussianfossilfuels.Greeceisoneof17EUmemberstatesthathaverequestedassistance,specificallythroughatechnicalsupportproject.ThisprojectaimstoincreaseLNGsupplyanddiversifypipelineimportsofgas,increasetheproductionofbiomethane,acceleratetheroll-outofrenewablehydrogenandothersuitableformsoffossil-freehydrogen,acceleratetheroll-outofrooftopsolarandheatpumps,implementadditionaldemand-sideandenergyefficiencymeasures,andachievefasterpermittingofrenewableenergyprojects.EnergytaxationThegovernmentaimsforenergytaxationtodrivetheenergytransition.Greece’seffectivetaxratesonCO2emissionsfromenergyusearehighcomparedtootherOECDcountries.However,taxratesvaryacrossfuelsanduses,aswellastaxconcessions,andprovideinconsistentcarbonpricesignalsthatarenotwellalignedwithGreece’sclimategoals(OECDandIEA,2021).Excisedutiesareleviedonmostenergyproducts(Table1.2).Thereisa24%value-addedtax(VAT)foroilproducts.AreducedVATof6%isappliedtoelectricityandnaturalgas.Greecedoesnothaveanationalcarbontax.Energy-intensiveIEA.CCBY4.0.1.GENERALENERGYPOLICY29ENERGYINSIGHTSindustrialfacilitiesandlargeelectricityplantsarerequiredtopurchaseETSallowancesbasedontheirGHGemissions,withthesecostspassedontofinalconsumers.Table1.2Excisedutybyfuelexcludingvalue-addedtaxinGreece,2022Sector/enduseValueUnitEUR/GJHeavyfueloilHeating38EUR/tonne0.93LightfueloilHeating0.28EUR/litre7.29DieselAutomotive/heating0.41EUR/litre11.20Winterheating0.28EUR/litre7.65GasolineAutomotive0.7EUR/litre21.11LPGAutomotive430EUR/tonne9.35Heating60EUR/tonne1.30NaturalgasElectricitygeneration10EUR/MWhHouseholds1.1EUR/MWh0.31Industry0.4EUR/MWh0.11CoalHeating0.3EUR/GJ0.30ElectricityHouseholds2.2EUR/MWh0.61Industry(<10GWh)5EUR/MWh1.39Industry(>10GWh)2EUR/MWh0.56Estimatebasedon:heavyfueloil(40.68GJ/tonne),lightfueloil(0.038GJ/L),diesel(0.037GJ/L),gasoline(0.033GJ/L),LPG(46.15GJ/tonne).Dieselusedforheatingbetween15Octoberand30Aprilissubjecttoareducedexciseduty.Notes:LPG=liquifiedpetroleumgas;GWh=gigawatthour;MWh=megawatthour;GJ=gigajoule.Naturalgasfortransportation;coalusedforelectricitygeneration,mineralogicalandmetallurgicalprocessesandchemicalreduction;oilproductsusedfordomesticmarineshipping,ferriesandfishingandfordomesticaviation;andbiomassusedforelectricityorheatingareallexemptfromexciseduties.Electricityconsumershavetopayafeethatfinancesthepublicserviceobligationsofelectricitysuppliers.Theseincludetheobligationstosupplyresidentsofthenon-interconnectedislandselectricityatthesamepricesasinthemainland,despitehighergenerationcosts;toprovideelectricitytoeconomicallyandsociallyvulnerableconsumersatadiscountedsocialtariff;andtoprovidediscountedelectricitytolegalentities,churchinstitutionsandnon-profitorganisationsprovidingsocialwelfareservices.Electricitybillsareusedtocollectanationalradioandtelevisionfee(3.00EUR/month)andmunicipalandrealestatetaxes.Thenumerousfeesandchargesappliedtoelectricitycreateacomplexbillthatmakesitdifficulttodeterminehowelectricityconsumptionaffectsthetotalamountchargedandreducestheincentivetosaveenergy.ElectricityconsumersalsopayaSpecialDutyofGreenhouseGasEmissionsReduction(ETMEAR)tofundsubsidiesforrenewableelectricityandhigh-efficiencyco-generationprojects.TheRAEhastheauthoritytosettheETMEARrate;however,aministerialdecreetemporarilymovedthisauthoritytotheMoEEfor2019and2020.In2019,theMoEEreducedthedutyfrom23EUR/MWhto17EUR/MWhthrough2028.Alsoin2019,theETMEARratewassetbelow17EUR/MWhforagriculture,lignitemines,railroads,businessesandenergy-intensiveindustry,withthelowestrate,forenergy-intensiveindustry,setat2.55EUR/MWh.IEA.CCBY4.0.1.GENERALENERGYPOLICY30Lignite-firedgenerationownedbyPPCissubjecttoaspeciallignitefeeof2EUR/MWhbasedonnetelectricitygeneration.PPCisalsochargedaspecialtaxequalto0.5%ofitsannualturnover(OECD,2022).Revenuesfromthesetaxesareusedtosupportthecommunitiesimpactedbythephase-outoflignite-firedgenerationandassociatedmining.Asupplysecuritylevyischargedtoimportersofcrudeoilandoilproductsdestinedfordomesticconsumptionorrefineries.Theseleviesarecalculatedas1.2%oftherefinerypricefortherelevantcrudeorproductandfinanceafundusedtomaintainGreece’sstrategicoilreservesrequiredunderagreementswiththeIEAandtheEuropeanUnion(seeChapter8).Asupplysecuritylevyisalsochargedtonaturalgasconsumers,withtheratescalculatedbytheRΑΕ.TheseleviesareusedtofinanceasecurityofsupplyaccountmaintainedbyDESFA.Thisaccountcoverscostsrelatedtosecurityofsupply,mainlypaymentstolargegasconsumers(gas-firedpowerplantsandindustry)forvoluntarydemandreductionsundertakenwhentherearegassupplyconcerns(seeChapter7).Companiessupplyingnaturalgas,electricityandliquidfuelsareobligedtocollectaspecialdutyfromallconsumersequalto5%oftheamountbilledforeachfuel(upto0.5EUR/MWhforelectricity).ThespecialdutyisnotsubjecttoVAT.ItispaidtotheGreekCustomsAuthorityandisincorporatedintothestatebudget.FossilfuelsubsidiesAsanEUmemberstate,Greecehascommittedtoeliminatefossilfuelsubsidies.However,theOECDestimatesthatin2020,GreeceprovidedoverEUR1.9billioninfossilfuelsubsidies,with56%directedtohouseholdsand44%tocompanies.Mostfossilfuelsubsidiesareprovidedastaxexpenditures(foregonerevenue),includingEUR0.54billioninpost-retirementbenefitsforPPCpensionersandemployeesandEUR0.19billioninreducedexcisetaxesondieselusedforheating.ThelargestdirecttransferssupportingfossilfueluseincludeEUR0.4billioninsubsidiestooil-firedelectricitygenerationonnon-interconnectedislands,EUR0.31billionincapacitypaymentstocoal-andgas-firedgeneration,andEUR0.17billionforheatingallowancesforhouseholds(OECD,2022).From2015to2020,fossilfuelsubsidiesdecreasedby14%becauseofreductionsindirecttransferssupportingoil-firedelectricitygenerationonnon-interconnectedislandsandlowerspendingonheatingallowances.Althoughdecreasing,fossilfuelsubsidieswerestillequivalenttomorethanone-quarterofenergytaxrevenue,amongthehighestshareintheOECD.UnderEUregulations,allNECPsmustincludeadetailedlistofenergysubsidies.TheEuropeanCommission’sreviewoftheGreekNECPnotedthatthislistismissingandthatwhiletheintentiontoreduceorphaseoutfossilfuelsubsidiesisexpressedintheNECP,itdoesnotincludeanyspecificmeasurestoachievethisgoal.Inresponsetoincreasingenergypricesin2021and2022,Greecehasintroducednewmeasuresorsignificantlyexpandedexistingonesthatsupporttheconsumptionofheatingoil,naturalgas,dieselandgasoline.IEA.CCBY4.0.1.GENERALENERGYPOLICY31ENERGYINSIGHTSAssessmentThegovernment’senergyandclimatepoliciesarecentredonachievinga55%GHGemissionsreductionby2030andnetzeroemissionsby2050whileensuringenergysecurity,improvingeconomiccompetitivenessandprotectingvulnerableconsumers.Theenergyandclimatepoliciesareembeddedinambitiousplansandlaws.TheNECPincludes2030targetsandsupportingmeasurestoputthecountryonapathtonetzeroemissionsin2050.Thegovernmentestimatesthatachievingthe2030NECPtargetswillrequireinvestmentstotallingEUR43.8billionfrom2021to2030;fundingforprogrammessupportingthesetargetslargelycomesfromtheEuropeanUnion.AkeyobjectiveoftheNECPisthephase-outoflignite-firedgenerationby2028.Greeceisworkingtoensureajusttransitionintheregionsimpactedbyreducedligniteproduction,promotingeconomicdiversificationandhelpinglocalworkforcesacquirenewskills.In2022,GreecewasawardedEUR755millionfromEUJustTransitionFundstosupportmeasures,includingjobreplacement,recultivationofthelignitemines,ensuringalternativeheating,installationofphotovoltaicparks,andthedevelopmentofnaturalgasandtransportationnetworks.TheNECPlistsotherambitiouspriorities,includingthelaunchofthenewelectricitymarketmodel,promotingnewtechnologies,acceleratingelectricalinterconnectionoftheislands,strengtheningenergyinterconnectionswithneighbouringcountries,developingstrategicenergystorageprojects,digitisingenergynetworksandpromotingelectromobility.TheNECPaimstoincreasegenerationfromrenewables(especiallywindandsolarPV)coupledwiththeelectrificationofenergydemand(especiallyforbuildingheatingandcooling,andtransport),improvingenergyefficiencyinallsectorsandgreatlyreducingrelianceonligniteandoil.TheNECPalsogivesamajorroletonaturalgas,especiallyinelectricitygeneration,buildingsandindustry,asasteppingstonetowardsgreaterintegrationofhydrogenintothecountry’senergybalance.FollowingtheRussianinvasionofUkraine,astrongfocushasbeenplacedonreducingrelianceonRussianenergyimports,includingnaturalgas,oilandhardcoal.Planstoclosemostlignite-firedgenerationby2023weredelayedto2028,thedeadlineforthelegallymandatedphase-out.Thereareplanstoexpandexplorationfordomesticoilandgas,buildmoreLNGterminals,identifyalternativenaturalgassuppliersandexpandrenewablepowergeneration.Highnaturalgasprices,coupledwiththecountry’seffortstodiversifyawayfromRussianenergyimports,haveraisedquestionsaboutthecentralrolegasisgiveninGreece’senergytransitionplans.Theongoingrelianceonnaturalgascanalsobeseenasincompatiblewiththecountry’sclimatepolicy;investmentsinexpandingthenationalgasnetworkwouldbebetterdirectedtoenergyefficiency,renewablesandenergystorage.Thegovernmentneedstorethinkandrationalisetheroleofgasinitsenergysectorplanningandpoliciestoavoidstrandedassets.Inthecontextofbroaderdecarbonisationandenergydiversification,thegovernmentandtheenergyindustryhaveadvocatedtheirambitiontoincreaseGreece’sroleinSouthEastEurope.Keyelementsaretheexpansionofrenewablegenerationtosupportelectricityexports,theexpansionofgasimport,productionandexportinfrastructuretoactasaregionalgas-tradinghub.ThegovernmentindicatesthataSouthtoNorthgascorridorcouldcounterthehistoricalrelianceonanEasttoWestcorridorfromRussiatoEurope.ThegovernmentalsowantstoplayakeyroleinEurope’sfuturehydrogencorridors.IEA.CCBY4.0.1.GENERALENERGYPOLICY32GreecehasrecentlyundertakenmajorreformstoensuretheefficientandeffectivefunctioningofitselectricityandgasmarketsandtosupportfullintegrationintotheEuropeancommonelectricitymarket.Althoughpromising,theresultsaretooprematuretoassessthefulloutcomesofthemarketreforms.Sofar,competitionremainslimitedinGreece’senergymarkets,withlargeincumbentsindominantpositions.BoththegovernmentandtheRAEneedtocontinuetheirreformeffortstoensureahighlevelofmarketliquidity,transparencyandcompetition.TheRAEplaysadecisiveroleinmarketreformsandneedstoensurethatthebehaviourofthevarioussystemoperatorsandmarketparticipantsiscompliantwiththeEUacquis.TheRAEissignificantlyunderstaffedandhasdifficultiesofferingthecompetitivesalariesneededtoattractandretainseniorexperts.Figuresfor2021showthattheRAEhasabudgetedcapacityof211permanentstaff,whileonly105staffmembers(49permanentand56non-permanent)wereemployed;alargeshareoftheRAEworkforceisrelativelyyoungwithlimitedexperience.TherequiredexpertiseandcapacitytocarryouttheirtasksmaynotbeavailablewithintheRAE,whichmayjeopardisethefurtherstrengtheningofthemarketreforms.TherearealsosomeconcernsregardingthefullindependenceoftheRAE.AlthoughtheRAEmaintainsitsownfinancialbudget,therearesignificantlegalrestrictions,whichdonotallowittomakefulluseofitsbudgetinaneffectiveandindependentmanner.TherearealsoinstancesinwhichthegovernmenthaspassedlegislationordecreesthatdealdirectlywithareaswhicharesupposedtobeunderthesoleauthorityoftheRAE.Forexample,thegovernmenttemporarilymovedtheauthorityoversettingtheETMEARfromtheRAEtotheMoEEin2019and2020.Greece’sNECPnotesthatenergypovertyishigh,hasbeenincreasingandaddressingitisanimportantpolicypriority.TheNECPsetanobjectivetoreduceenergypovertybyatleast50%by2025andtobringitbelowtheEUaverageby2030.GreecehasadoptedanEnergyPovertyActionPlanwitharoadmapandalistofmeasures.Currently,themainmechanismtoaddressenergypovertyisasocialtariffthatprovidesdiscountedelectricityratesforvulnerablehouseholds.Thereisalsoanallowanceforvulnerablehouseholdstoreducethecostofoil-basedheating.In2021,therequirementsfortheoil-heatingallowancewererelaxedtoincreasethenumberofconsumerscoveredbythescheme.Suchmeasures,however,arenotsustainableinthelongrun.Whiledirectgrantsareunderstandableinanemergencysituationlikethecurrentgascrisis,fundingshouldalsosupportmeasuresthatdeliverlong-termreductionsinenergybills,forexample,energyefficiencyimprovements,especiallyforvulnerablehouseholds.ThiswouldhelptoensurethattheEnergyTransitionFundlivesuptoitsname.Energytaxationcanserveasawell-suitedinstrumenttoinfluenceandsteerconsumers’behaviouranddecisionsinapreferreddirection.Althoughvarioustaxationschemesareinplace,thesedonotprovidetheconsistentpricesignalthatincentivisestheenergytransition.Examplesarethelowertaxationofdiesel(comparedtogasoline);existingexemptionsfromexcisedutiesfordomesticmarineshipping,ferries,fishinganddomesticaviation;andhighlytaxedelectricityunderminingeffortstodriveelectrificationandnotablefossilfuelsubsidies(whichtotalledEUR1.9billionin2020andincludedirectpaymenttolowerthecostoffossilfuels).InSeptember2022,thegovernmentintroduceda10EUR/MWhtaxforgasusedingas-firedelectricitygeneration.RevenuefromthetaxwillgototheEnergyTransitionFundIEA.CCBY4.0.1.GENERALENERGYPOLICY33ENERGYINSIGHTStoreduceconsumerenergybillsandwillalsosupportinvestmentsthathelptoenddependenceonRussiangas.Thegovernmentshouldconsidereliminatingthetaxongasusedforelectricitygeneration.Thetaxseemsintendedtofundareductioninelectricitybills,butitwillmostlikelyincreasethecostofelectricity,defeatingtheintendedgoal.RecommendationsThegovernmentofGreeceshould:Strengtheneffortstoreformtheelectricityandgasmarketstoensurethatconsumersbenefitfromtheadvantagesofefficientwholesaleandretailmarkets.Establishamechanismtoco-ordinateelectricityandgasinfrastructuredevelopmentplanstoidentifyandaddressconcernsonenergysecurity,systemstability,emissionsreductionsandstrandedassets.StrengthentheexpertiseandcapacityoftheRegulatoryAuthorityforEnergy,asitwillplayakeyroleinthefurtheropeningoftheelectricityandgasmarkets,aswellasmonitoringmarketbehaviour,designingandimplementingnewsupportschemes,andprotectingenduserinterestswhileensuringsecurityofsupply.Ensuretransparentandstablelegalandregulatoryframeworks,whichenablerenewablesandelectricityinfrastructureprojectstobeimplementedwithinareasonabletimeframe.Streamlinetheproceduresforspatialplanningandlicencestofacilitatethedeploymentofprojectsinatimelyfashion.Ensurethatmeasurestoaddressenergypovertyandhighenergypricesfocusondeliveringlong-termreductionsinenergybills,forexample,throughenergyefficiencymeasures,andgiveprioritytovulnerablehouseholds.Adjusttaxes,marketregulationsandfinancialsupportmeasuressothatenergypricesdrivebehaviourandinvestmenttowardsajustenergytransition,increasesystemflexibility,andreducetheriskofstrandedassets.ReferencesAthensNews(2021),Heatingbenefit:Newissuancecriteriaandamountswithexamples(webpage),https://en.rua.gr/2021/10/08/heating-benefit-new-issuance-criteria-and-amounts-with-examplesBusinessDaily(2022),Electricitytariffs:Naturalgassubsidyat90eurospermegawatthour(webpage),https://www.businessdaily.gr/english-edition/71031_electricity-tariffs-natural-gas-subsidy-90-euros-megawatt-hourEC(2020),CommissionStaffWorkingDocument–AssessmentoftheFinalNationalEnergyandClimatePlanofGreece,https://energy.ec.europa.eu/system/files/2021-01/staff_working_document_assessment_necp_greece_en_0.pdfEkathimerini(2022),GreeceendingRussiangasdependence,https://www.ekathimerini.com/economy/1194482/greece-ending-russian-gas-dependence/Energypress(2022),Greecetoget3.85%ofRRFfundsafterincorporationofREPowerEUplan,FinMinsays(webpage),https://energypress.eu/greece-to-get-3-85-of-rrf-funds-after-incorporation-of-repowereu-plan-finmin-saysIEA.CCBY4.0.1.GENERALENERGYPOLICY34EuropeanParliament(2022),Greece’sNationalRecoveryandResiliencePlan:Lateststateofplay,https://www.europarl.europa.eu/thinktank/en/document/EPRS_BRI(2022)729366Greece,MinistryofEnvironmentandEnergy(2021),PublishedActionPlanforCombatingEnergyPoverty,https://ypen.gov.gr/energeia/dimosievmeno-schedio-drasis-gia-tin-katapolemisi-tis-energeiakis-endeias-sdee[inGreek]Greece,Greece2.0(2022a),RecoveryandResilienceFacilityAgency(webpage),https://greece20.gov.gr/en/recovery-and-resilience-facility-agencyHEDNOS.A.(HellenicElectricityDistributionNetworkOperatorS.A.)(2022),Profile(webpage),https://deddie.gr/el/deddie/i-etaireia/profilHENGAS(HellenicNaturalGasDistribution)(2022),Profile,https://www.hengas.gr/en/the-company/profileIEA(InternationalEnergyAgency)(2022),WorldEnergyBalances(database),https://www.iea.org/data-and-statistics/data-product/world-energy-balances(accessedon15June2022)Italgas(2021),Italgas:ContractsignedinAthensfortheacquisitionof100%oftheGreekcompanyDepaInfrastructureS.A.(webpage),https://www.italgas.it/en/press-releases-price-sensitive/italgas-contract-signed-in-athens-for-the-acquisition-of-100-of-the-greek-company-depa-infrastructure-s-aKoutantou,A.(2022),Greece’ssoleLNGterminalrampsupimportstoreplaceRussiangas,Reuters,23September,https://www.reuters.com/business/energy/greeces-sole-lng-terminal-ramps-up-imports-replace-russian-gas-2022-09-23Koutantou,A.andandR.Maltezou(2022),GreecespeedsupgasexplorationtohelpreduceRussiareliance,Reuters,12April,https://www.reuters.com/business/energy/greece-speed-up-gas-exploration-help-replace-russian-gas-pm-says-2022-04-12OECD(OrganisationforEconomicCo-operationandDevelopment)(2022),OECDInventoryofSupportMeasuresforFossilFuels:CountryNotes,https://www.oecd-ilibrary.org/sites/5a3efe65-en/1/3/21/index.html?itemId=/content/publication/5a3efe65-en&_csp_=2ffa7a733148fec42dccf926d7619e1c&itemIGO=oecd&itemContentType=bookOECDandIEA(2021),UpdateonRecentProgressinReformofInefficientFossil-fuelSubsidiesthatEncourageWastefulConsumption,https://www.oecd.org/fossil-fuels/publicationsandfurtherreading/OECD-IEA-G20-Fossil-Fuel-Subsidies-Reform-Update-2021.pdfProtergia(2022),SocialResidentialTariff–SolidarityServicesTariff–VulnerableCustomers,https://www.protergia.gr/media/x4qouqdj/vulnerable-customers-eng_022015.pdfReuters(2022),Greece’sDEPA,Gazpromagreelong-termgasdeal(4January),https://www.reuters.com/business/energy/greeces-depa-gazprom-agree-long-term-gas-deal-2022-01-04Tsarikas,A.(2022),Greecetotaxpowergenerators’windfallprofits,ArgusMedia,https://www.argusmedia.com/en/news/2330224-greece-to-tax-power-generators-windfall-profitsIEA.CCBY4.0.35ENERGYSYSTEMTRANSFORMATION2.EnergyandclimatechangeKeydataGHGemissionswithLULUCF(2020):70.9MtCO2-eq;-47%since2005,-30%since1990GHGemissionswithoutLULUCF(2020):74.8MtCO2-eq;-45%since2005,-28%since1990Energy-relatedGHGemissions(2021):GHGemissionsfromfuelcombustion:50.4MtCO2-eq;-48%since2005GHGemissionsbysector:electricityandheatgeneration38%,transport32%,buildings11%,industry19%GHGintensityperGDP:0.167kgCO2-eq/USD(IEAaveragein2020:0.188kgCO2/USD)GHGintensitypercapita:4.655tCO2-eq/capita(IEAaveragein2020:7.97tCO2/capita)OverviewGreece’sclimatepolicyiscentredontransitioningtoanetzeroemissionsenergysystemby2050whileensuringenergysecurity,improvingeconomiccompetitivenessandprotectingvulnerableconsumers.Greece’sNationalClimateLaw,adoptedinMay2022,setstargetstoreducetotalGHGemissions(excludinglanduse,land-usechangeandforestry[LULUCF])by55%by2030andby80%by2040(versus2005),andtoachievenetzeroemissionsby2050.GreecealsosupportstheachievementoftargetstoreduceEU-wideGHGemissionsby55%(versus1990)andachievenetzeroemissionsby2050.TheNECPisthemaindocumentdefiningthemitigationmeasurestoachieveGreece’s2030emissionsreductiontargetandputthecountryonapathtoanetzeroenergysystem.Greece’sNationalLong-termStrategydetailsemissionsreductionpathwaysthataimtosupporttheEU-wide2050netzeroemissionstarget.From2005to2020,Greece’stotalGHGemissionsexcludingLULUCFfellby45%,from136.4milliontonnesofcarbondioxideequivalent(MtCO2-eq)to74.8MtCO2-eq.ThisdecreasewasdrivenbylowereconomicactivityresultingfromtheprolongedeconomiccrisisandtheCovid-19pandemic,butalsobyasharpreductionofthecarbonintensityofelectricitygenerationandbuildingheating.MostGHGemissionsareenergyrelated(75%in2020),followedbyindustrialprocessemissions(14%),agriculture(10%)andwaste(7%).From2005to2020,LULUCFconsistentlyactedasanemissionssink,butthelevelofabsorbedemissionshasvariednotably,fromaminimumof0.1MtCO2-eqtoamaximumof4.0MtCO2-eq.GreeceisfacingincreasedrisksofdroughtsandwildfiresthatcouldnotablyreducetheLULUCFemissionssinkorevenresultinLULUCFbecominganetemissionssource.IEA.CCBY4.0.2.ENERGYANDCLIMATECHANGE36Figure2.1GreenhousegasemissionsbysectorinGreece,2005-2020andtargetsIEA.CCBY4.0.Source:IEAbasedondatafromUNFCCC(2022).Energy-relatedgreenhousegasemissionsGreece’senergy-relatedGHGemissionspeakedin2007at99MtCO2-eqandhavesincedecreasedsignificantlytoreach49MtCO2-eqin2020(Figure2.2).ThisdecreasewasdrivenbylowereconomicactivityresultingfromtheprolongedeconomiccrisisandtheCovid-19pandemicbutalsobystructuralchanges,includingasharpreductioninlignite-firedelectricitygenerationandoil-firedbuildingheating.Theliftingofmostpandemic-relatedrestrictionsandthereopeningofGreecetotourismcausedaslightreboundinenergy-relatedemissions,whichreached50.4MtCO2-eqin2021.In2021,electricityandheatgenerationaccountedfor38%ofenergy-relatedemissions,followedbytransport(32%),industry(19%)andbuildings(11%).ThesesharesreflecttherelativelylimitedroleofindustryinGreece’seconomy;thecontinuedrelianceonoil-fueltransport;andthedeclining,butstillrelativelyhigh,carbonintensityofelectricitygeneration.From2005to2021,emissionsfromelectricityandheatgenerationdroppedfrom47MtCO2-eqto19MtCO2-eqastheshareoflignite-firedgenerationdroppedfrom40%to14%.Thereductioninlignite-firedgenerationresultedinhighergenerationfromnaturalgas,whichgrewfrom5.4%to24%ofgenerationandincreasedrenewablegeneration,whichgrewfrom11%to41%ofgeneration.Transportemissionspeakedin2009at25.4MtCO2-eqbutdecreasedsharplyto16.9MtCO2-eqin2012,mainlybecauseofGreece’seconomiccrisis.TransportGHGemissionsstartedincreasingin2013andreached18MtCO2in2019.TheCovid-19pandemiccausedtransportGHGemissionstodropto15.2MtCO2-eqin2020,buttheyroseagainto16MtCO2-eqin2021.From2010to2020,theindustrysector’sGHGemissionsexperiencedanoveralldecrease,from11.6MtCO2-eqto9.4MtCO2-eq.Mostofthisreductionoccurredbetween2010and2013,inlinewiththereductionineconomicactivity.Buildingsectoremissionsaremainlydrivenbyseasonalheatingdemand,asspaceheatingaccountsformostbuildingenergydemand(56%in2020).UnusuallycoldtemperaturescausedbuildingGHGemissionstopeakin2011at10.2MtCO2-eq.Buildingemissionshavealsobeenfallingbecauseofachangeinthefuelmix,mainlythroughareductionintheuseofoilforspaceheating,whichdroppedfrom125PJin2005to48PJin2020.-200204060801001201402005201020152020202520302035204020452050MtCO₂-eqTargetWasteAgricultureIndustrialprocessesEnergyLULUCF-55%Netzero-45%-80%IEA.CCBY4.0.2.ENERGYANDCLIMATECHANGE37ENERGYSYSTEMTRANSFORMATIONFigure2.2Energy-relatedgreenhousegasemissionsbysectorandfuelinGreece,2005-2021GreenhousegasemissionsbysectorIEA.CCBY4.0.GreenhousegasemissionsbyfuelIEA.CCBY4.0.Source:IEA(2022a).Greece’senergy-relatedGHGemissionscamemostlyfromoil(61%in2021),followedbynaturalgas(24%)andcoal(15%).Mostcoal-relatedemissions(89%in2021)comefromlignite-firedgeneration.From2005to2013,emissionsfromoildroppedsubstantiallyfrom52MtCO2-eqto33MtCO2-eq,mainlybecauseofareductioninroadtransportrelatedtoGreece’sprolongedcrisis.From2013to2019,oil-relatedGHGemissionswererelativelystable.Thepandemicresultedinanotabledropintransportenergydemand,whichreducedoil-relatedemissionsdowntoahistoriclowof30MtCO2-eq.From2005to2021,coal-relatedGHGemissionsdroppedsignificantly,from38.7MtCO2-eqto7.1MtCO2-eq;mostofthisreductioncamefromthetransitionawayfromlignite-firedgeneration.Overthesameperiod,emissionsfromnaturalgasgrewfrom5.2MtCO2-eqtoarecordhighof12MtCO2-eq.Theincreaseingas-relatedGHGemissionswasdrivenmainlybythehigheruseofgas-firedgeneration(themaintechnologyreplacinglignite-firedgeneration)and,toalesserextent,becauseofaswitchfromoiltonaturalgasinbuildingsandindustry.02040608010012020052006200720082009201020112012201320142015201620172018201920202021MtCO₂-eqBuildingsIndustryTransportElectricityandheatgeneration051015202530354045505520052006200720082009201020112012201320142015201620172018201920202021MtCO₂-eqOilNaturalgasCoalIEA.CCBY4.0.2.ENERGYANDCLIMATECHANGE38EmissionsdriversandcarbonintensityThemaindriversforGHGemissionsreductionsweredecliningGDPandareductioninthecarbonintensityofelectricityandheatgeneration.(Figure2.3).Greece’sprolongedeconomiccrisisreducedGDPby27%from2008to2013,withGDPgrowthonlyreturningin2017.ThepandemichadamajorimpactonGDP,whichfellby14.8%in2020,thenagainby9.9%in2021.However,emissionsreboundedfrom2020despitethecontinuingdeclineinthecarbonintensityofelectricityandheatgeneration.From2005to2021,Greece’scarbonintensityofelectricitygenerationdroppedsubstantially,from791.6grammeCO2/kWhto342.4gCO2/kWh.Thiswasthefifth-largestreductioninthecarbonintensityofgenerationamongIEAmembercountriesoverthisperiod.Figure2.3Energy-relatedgreenhousegasemissionsandmaindriversinGreece,2005-2021IEA.CCBY4.0.Source:IEA(2022a).ClimatetargetsGreece’sNationalClimateLaw,adoptedinMay2022,setstargetstoreducetotalGHGemissionsby55%by2030andby80%by2040(versus2005)andtoachievenetzeroemissionsby2050.Greece’sGHGemissionsarealsosubjecttotargetsandregulationsunderEUlawsanddirectives.GHGemissionsfromGreece’slargeelectricityplants,energy-intensiveindustrialfacilitiesandcommercialaviationinsideEuropeareregulatedundertheEUEmissionsTradingSystem.TheETSsetsannualcapsonemissionsandrequiresregulatedfacilitiestoacquiretradableallowancesfortheiremissions.Greece’snon-ETSemissions(transport,buildings,agriculture,wasteandnon-energyintensiveindustry)aresubjecttoa2020targetundertheEUEffortSharingDecision(ESD)anda2030targetundertheEUEffortSharingRegulation(ESR).Incombination,theETS,ESDandESRaimfora20%reductioninEU-wideGHGemissionsby2020anda40%reductionby2030(bothversus1990levels).In2020,43%ofGreece’sGHGemissionswerecoveredbytheETSandcameprimarilyfromelectricitygeneration(63%ofETSemissions)andindustry(36%).Greecehadthethird-largestdecreaseinETSemissions,whichfellby56%from2005to2020,thanksmainlytoreducedlignite-firedgeneration(TheGreenTank,2021).In2020,57%of0.40.50.60.70.80.91.01.120052006200720082009201020112012201320142015201620172018201920202021Index1=2005GDPPopulationGHGGHG/GDPGHG/kWhelecandheatIEA.CCBY4.0.2.ENERGYANDCLIMATECHANGE39ENERGYSYSTEMTRANSFORMATIONGreece’sGHGemissionswerefromnon-ETSsources.In2019,thelargestsharesofnon-ETSemissionscamefromtransport(39%)andindustry(19%).Greecewasrequiredtoreducenon-ETSemissionsby4%by2020versus2005levels.Greeceachieveda28%reductioninnon-ETSemissionsin2020,greatlyexceedingtheESDtarget.However,thisresultedlargelyfromthesignificantreductioninenergydemandcausedbythenegativeimpactsofGreece’sprolongedeconomiccontractionandthepandemic.Withoutadditionalactions,improvedeconomicperformancewilllikelyleadtonotableincreasesinemissions.Greece’sNECPsetsatargettoreducenon-ETSGHGemissionsby16%by2030versus2005levels.ThistargetisinlinewiththeexpectedcontributiontoEU-wideemissionsreductionsexpectedundertheESR.Greecehasalreadyexceededthistarget,meaningemissionsareallowedtoincreasenotablythrough2030.However,theEuropeanCommissionhasnotedthatifGreeceimplementsalltheemissionsreductionmeasuresinitsNECP,itwouldachieveanemissionsreductionof-33%versus2005,wellbeyondthe2030target.TheEuropeanCommissionalsoindicatedthattheNECPdoesnotincludeinformationonhowGreecewillachieveitscommitmentthatLULUCFemissionswillnotexceedLULUCFremovals.TheEuropeanClimateLaw,whichenteredintoforceinJuly2021,increasedtheEU-wideGHGemissionsreductiontargetsto55%by2030andnetzeroemissionsby2050.UndertheFit-for-55package,theEuropeanUnionisupdatingawiderangeofenergy-andclimate-relatedregulationstoaddresstheincreasedambitionofthe55%target.Thisincludessettingstrongertargetsforrenewableenergy,energyefficiencyandnotableupdatestotheETS.GreecewilllikelyhavetoincreaseitsambitiononemissionsreductionstosupporttheEU-wide55%target.ClimatepolicyandmitigationmeasuresGreece’sclimatepolicyiscentredontransitioningtoanetzeroemissionsenergysystemby2050whileensuringenergysecurity,improvingeconomiccompetitivenessandprotectingvulnerableconsumers.Greece’sClimateLawsetsabindingtargetfornetzeroGHGemissionsby2050,withintermediatetargetsfor2030and2040.Thelawrequiresthatfive-yearcarbonbudgetsforkeysectorsoftheeconomybeinplaceby2026.Italsorequiresthedevelopmentofprogressindicatorsforrelevanttargets,progressassessmentsandtargetadjustmentprocedures.ThelawplacesanincreasedemphasisonclimateadaptationtolimittheimpactsofclimatechangeontheGreekeconomy,includingtheenergysector.TheNECPisthemaindocumentdefiningthemitigationmeasurestoachievethe2030emissionsreductiontargetandputGreeceonapathtoanetzeroenergysystem.TheNationalTransportPlanofGreece,whichdefinesthetransportsectordevelopmentstrategyfrom2017to2037,alsodetailsmitigationmeasurestoreducetransportsectoremissions.Manyofthemeasureswiththegreatestemissionsreductionspotentiallyrelatemainlytoincreasingthedeploymentofrenewableenergy(seeChapter4)andimprovingenergyefficiency(seeChapter3),withkeymeasuresaimingforemissionsreductionstotallingaround12MtCO2-eqby2025andaround17MtCO2-eqby2030(seeTable2.1).IEA.CCBY4.0.2.ENERGYANDCLIMATECHANGE40Table2.1KeymitigationmeasuresandestimatedemissionsreductionsinGreeceMitigationactionMeasuresReduction(MtCO2-eq)20252030Increasedrenewablesinelectricitygeneration•Supportinnovativerenewableenergyprojects•Guaranteeoforiginforrenewableelectricity•Developlicensingandplanningframeworkforoffshorewindfarms•Developlegislativeandregulatoryframeworkforenergystorage•Providefinancialsupportforenergycommunities•Reformoftheelectricitymarketregulatoryframeworktopromotetheparticipationofdecentralisedenergyschemes•Developdemand-sidemanagementprogrammes•Developalicensingframeworkandtechnicalspecificationsforrenewabledistrictheating,biogasinjectionintothegasnetworkandgeothermal8.311.8Increasedbiofuelsintransport•Enhancedblendingobligationswithpossibleextensionbeyondroadtransport•Developmentofbiofuelssupportschemesandspecialfinancingtoolsforadvancedbiofuelsproduction•Pilotprojectsforgaseousfuelsinthetransportsector•Taxincentivesforalternativefuelsintransport0.100.43Energyefficiencyinindustry•Financialandtaxsupportforenergy-savingtechnologyinvestments•Financialsupporttoenergyefficiencyprogrammes•Creationofindustrialbusinesszones•Districtheatingatindustrialbusinesszones0.761.28Energyefficiencyinbuildings•EstablishaNationalEnergyEfficiencyFund•Taxincentivesforrenewableheatingandcooling•Energysavingcontractinginthepublicsector•Financingprogrammesandtaxincentivesforrenovationofpublicandprivatebuildings•Improveregulatoryframeworkandstrengthenroleofenergymanagers•Energymanagementsystemsinpublicbuildings•Regulationpromotingnearly-zeroenergybuildings•Financialprogrammespromotingenergyefficiencyagreementsintheprivatesector•Expandgasnetworktoreduceoil-firedheating2.272.99Electrificationandenergyefficiencyinroadtransport•10%shareofelectricvehicles(EVs)inpassengercarsby2030•DeployedneededEVcharging•FinancialsupportofEVadoption•Sustainableurbanmobilityplans•Relocatecommercialtransportoperations•Incentivesforenergy-efficientvehicles•Limitingimportofolderusedcars•Maximumageforallvehicletypes•Vehicletaxationpromotingnewandcleanvehicles0.050.19LULUCF•Increaseofmanagedforestlandforbioenergy0.130.3IEA.CCBY4.0.2.ENERGYANDCLIMATECHANGE41ENERGYSYSTEMTRANSFORMATIONIn2019,GreeceestablishedanInter-MinisterialCommitteeforEnergyandClimate,whichisresponsiblefordevelopingagovernanceframeworktoensureefficientco-ordinationacrossthegovernmentonimplementingtheNECPmeasures,monitoringprogressonthe2030targets,andredesigningexistingmeasuresanddesigningnewones,asneeded,toensuretheachievementofclimategoals.Phasingoutlignite-firedgenerationiscentraltoachievingGreece’s2030climatetargets.TheNationalClimateLawrequiresthephase-outofalllignite-firedgenerationby2028.Planstophaseoutlignitehavesignificantlyacceleratedinrecentyears,withindicationsthatmostlignite-firedgenerationcouldendby2023.However,thisacceleratedtimelinereliedheavilyonatransitiontogas-firedgeneration.FollowingRussia’sinvasionofUkraine,Greeceindicatedthatwhileitiscommittedtothe2028lignitephase-out,higheruseoflignitemaybeneededintheshorttermtoaddressenergysecurityconcernsrelatingtoRussiangasimports,whichcoveredaround41%ofgassupplyin2021(seeChapter6).TheClimateLawalsobanstheinstallationofoil-firedheatingfrom2025andrequiresthatfrom2030heatingcontainatleast30%byvolumeofrenewableliquidfuels.Thegovernmentisalsoaimingtoendtheuseofoil-firedelectricitygenerationonislandsthroughelectricityinterconnectiontothemaingridand/ordeploymentofrenewablegenerationontheislands.TheNECPandotherplanningdocumentsgivenaturalgasamajorroleinreducingemissions,notjustfromlignite-firedgenerationbutalsothroughanexpansionofthegasnetworktoreduceoildemandfrombuildingheatingandindustry.AsaresultofthesharpandsustainedincreaseingaspricesandthedesiretoreducerelianceonRussianenergy,thegovernmentisre-evaluatingtheroleofnaturalgasintheenergysystemandhastakenstepstodiversifygassupplyandreducegasdemandthroughtheaccelerateddeploymentofrenewablesandenergyefficiencymeasures.However,significantinvestmentstoexpandthenaturalgasnetworkarestillplanned,andthegovernmenthasindicatedthatitwantsGreecetobecomearegionalgas-tradinghub(seeChapter7).GreeceisalsolookingatoptionstoreduceGHGemissionsfrommarineshipping,whichplaysamajorroleinitseconomyandisasignificantsourceofemissions(3.4%ofenergy-relatedemissionsin2020).In2018,theportofKillinidemonstratedaprojecttoallowdockedshipstobeconnectedtotheelectricitygridtoallowtheirenginestobeturnedoffwhiledocked.InFebruary2022,thegovernmentheldmeetingstodiscussthelegalandregulatorychangesneededtoallowshorepoweringofdockedships.Greece’sNationalLong-termStrategy(adoptedin2019)detailsemissionsreductionpathwaysthataimtosupporttheEU-widegoalofnetzeroemissionsby2050.Itpresentsfourpathwayssupportingemissionsreductionsof95%by2050comparedwith1990(fora1.5°Ctarget)or85%(fora20°Ctarget).Thesepathwaysdependonastrongincreaseinrenewableenergydeploymentandenergyefficiencymeasuresacrossallsectorsandtheuseofhydrogeninhard-to-decarbonisesectors.ThestrategyestimatesthatachievingnetzeroemissionswillrequireannualinvestmentsofEUR38.1billiontoEUR39.1billionfrom2031to2050(RicardoEnergy&Environment,2020).IEA.CCBY4.0.2.ENERGYANDCLIMATECHANGE42EUEmissionsTradingSystemGHGemissionsfromGreece’slargeelectricityplants,energy-intensiveindustrialfacilitiesandcommercialaviationinsideEuropeareregulatedundertheETS,theonlycarbon-pricingsystemusedinGreece.In2020,theETScoveredaround43%ofGreece’stotalGHGemissions.EntitiesregulatedbytheETSmusthaveallowancesfortheiremissions,withmostallowancespurchasedthroughauctions.RevenuesfromtheauctionsaredeliveredtocountriesparticipatingintheETSbasedonthetotalvalueofallowancespurchasedbyregulatedentitiesoperatinginsidetheirborders.EUrulesrequirethatfundingequaltoatleast50%ofETSallowancerevenuesdeliveredtoeachmemberstatebespenttomodernisetheenergysystemandreduceGHGemissions.Greecehasalawrequiring100%ofETSrevenuestobespentondomesticclimatechangeandenergyprojects.ETSallowancepriceswererelativelystablefromthestartoftheETSin2013until2017,at4-8EUR/tCO2.AsaresultofETSreformsandmarketfactors,ETSpricesbegantoincreasein2018,witharapidincreasestartinginlate2020whenthepriceexceeded30EUR/tCO2forthefirsttime.TheETSpricehasremainedhighsince,reachinganall-timehighover105EUR/tCO2inMarch2023.TherapidincreaseinETSpricesresultedinstronggrowthofETSrevenuesgoingtoGreece.From2013to2021,Greece’sannualETSrevenueincreasedfromEUR148milliontoEUR458million,withapeakannualrevenueofEUR523millionin2018.In2019,ETSrevenuesaccountedforaround7%oftotalrevenuesfromGreece’senvironmentaltaxation(EC,2021).Asof2021,GreecehadreceivedatotalofEUR2.82billioninETSrevenues.ETSrevenueshadbeenakeysourceoffundingforrenewableenergyprogrammes,butsince2021,therehasbeenamajorshiftandthemajorityofETSrevenuesnowsupportprogrammesthataimtolimittheimpactofhighenergyprices.Independentanalysisindicatesthatfrom2013to2020,mostofGreece’sETSrevenues(upto78%)wenttotheSpecialAccountforRenewableEnergySources,themainsourceforfundingsubsidiesforrenewableenergyandco-generation(seeChapter4).ThenexthighestshareofETSrevenues(upto17%)wenttocompensationofindustrialcompaniesatriskofcarbonleakage(leavingGreece).ThistypeofcompensationisallowedunderETSrules;however,itisunclearifGreecerequiresthecompaniesreceivingthecompensationtotakeanymeasuretoreducetheirclimateimpact.SmallersharesofannualETSrevenues(3-13%)havegonetoprogrammessupportingtheadoptionofEVsandtheimplementationofenergyefficiencyinbuildingsandbysmallandmedium-sizedenterprises(SMEs).AsmallshareofannualETSrevenues(1-6%)isthesolefundingsourcefortheNationalFairTransitionFund,whichfinancesprojectsforsustainable,low-carboneconomicactivitiesinregionsofGreeceimpactedbythephase-outoflignitemining(Haaseetal.,2022).In2021,GreecemademajorchangestohowETSrevenuesareallocated,shiftingmostETSrevenuesfromtheSpecialAccountforRenewableEnergySourcestotheEnergyTransitionFund,whichprovidesdirectpaymentstoGreekconsumersandcompaniestoreducetheimpactofhighenergyprices(seeChapter1).IndependentanalysisindicatesthatmostETSrevenuesarenowgoingtotheEnergyTransitionFund(74%in2021and75%in2022).ThisallocationdoesnotmeettheEUrequirementthat50%ofETSrevenuesbespenttomodernisetheenergysystemandreduceGHGemissions.33IEA.CCBY4.0.2.ENERGYANDCLIMATECHANGE43ENERGYSYSTEMTRANSFORMATIONTheEuropeanUnionissignificantlyupdatingandexpandingtheETStoalignitwiththeincreasedEU-wide55%emissionsreductiontarget.TheproposedchangeswouldhavenotableimpactsinGreece.Inparticular,itisplannedtoexpandtheETStocoveremissionsformarineshipping,amajorsectoroftheGreekeconomy.MethaneemissionsCO2isthemainGHGinGreece(98.4%ofemissionsin2021),followedbynitrousoxide(0.9%)andmethane(0.7%).In2021,methaneemissionsfromtheenergysectorwere717kilotonnecarbondioxideequivalent(ktCO2-eq),themajorityofwhichcamefromlignitemining(64%).Methaneemissionsfromfuelcombustionintransportandresidentialbuildingswere232ktCO2-eqand94ktCO2-eq,respectively.Methaneemissionsfromtheoilandgassector(domesticoilandgasproductionandfugitiveemissionsfromnaturalgastransmissionanddistribution)were130ktCO2-eq.From2005to2020,Greece’smethaneemissionsfromtheenergysectordecreasedby64%,mainlybecauseofreducedlignitemining.Theplannedphase-outoflignite-firedgeneration(andassociatedmining)by2028shoulddriveasignificantreductioninenergysectormethaneemissions.However,theNECPnotesplanstoexpandthegasnetwork,andfollowingtheRussianinvasionofUkraine,Greecehasannouncedplanstoincreasedomesticoilandgasproduction.Withoutanypolicyaction,theseplanswouldlikelyincreasemethaneemissionsfromtheoilandgassectors.Greecehasnotadoptednationaltargetsforreducingemissions;however,ithassupportedvariousinternationaleffortstoreducemethaneemissions.AtCOP26inNovember2021,GreecesignedtheGlobalMethanePledge.Countriesjoiningthepledgeagreedtotakevoluntaryactionstoreduceglobalmethaneemissionsbyatleast30%by2030(versus2020)andtomovetowardsusingbestavailablemethodologiestoquantifytheirmethaneemissions(GlobalMethanePledge,2022).MethaneemissionsinGreecewillsoonberegulatedundernewEUrules.TheEUMethaneStrategy(adoptedin2020)aimstoreducemethaneemissionsby35-37%by2030(versus2005levels)tosupporttheEUtargettoreducetotalGHGgasesby55%by2030.CurrentEUpoliciesareprojectedtoreducemethaneemissionsbyonly29%by2030.InDecember2021,theEuropeanCommissionpublishedthehydrogenandgasmarketdecarbonisationpackage,includingproposedregulationstoreduceenergysectormethaneemissions(FSR,2021).Carboncapture,utilisationandstorageGreecedoesnothaveanationalcarboncapture,utilisationandstorage(CCUS)strategy.TheNECPincludesseveralreferencestoCCUSbutdoesnotdefineanyspecificprojects,targetsorsupportmechanisms.GreecehastransposedtheEUDirectiveontheGeologicalStorageofCarbonDioxidetoestablisharegulatoryandlegalframeworkforCO2storageandhasdefinedareaswhereCO2storageisallowed.ThegovernmentindicatesthatthemostpromisingsitesforCO2storagearematureoilfieldsintheSouthernKavalaregion.In2021,Energean,theonlycompanyactiveinoilproductioninGreece,proposedthecountry’sfirstCCSproject.TheprojectaimstodeveloptheoffshorePrinosfieldintoaCO2IEA.CCBY4.0.2.ENERGYANDCLIMATECHANGE44storagesitewithacapacityofaround50MtCO2andtobuildahydrogenproductionfacilitybasedonnaturalgaswithemissionsstoredinthePrinosfield.ThecostoftheprojecthasbeenestimatedatEUR500million.TheGreekrecoveryandresilienceplanincludesfundingfortheproject.Energeanindicatesthattheprojectwillstartoperatingin2025;inearly2022,itannouncedprogressondesignworkandtheselectionofacontractortoassessthestoragepotentialofthePrinosbasin(OE,2022).ThegovernmenthasindicatedthattheprojectcannotsupportadvancedoilrecoveryunderEUfundingrules.ClimatechangeimpactsandadaptationSeveralstudieshavebeenconductedtoassessclimatechangeimpactsinGreece,includingtheIEAClimateResiliencePolicyIndicatorreportpublishedinJune2022(IEA,2022b).ThereisageneralconsensusthatGreecewillfaceincreasingtemperaturesthroughoutthe21stcentury.Thehighertemperatureswilllikelydrivechangesinseasonalenergydemand,withastrongincreaseinelectricitydemandinsummerlinkedtohigherdemandforairconditioningandreduceddemandforavarietyoffuelslinkedtolowerheatingdemandinthewinter.Thelikelyincreaseinhightemperaturesposesriskstoelectricitysecurity,asitwilldrivehigherdemandwhilesimultaneouslyreducingthecapacityoftheelectricitysystemtogenerateandsupplyelectricity(reducedthermalgenerationoutputandlowertransmissionanddistributioncapacity).Variousclimatechangeimpactsstudiesalsoshowthatprecipitationisprojectedtodecreasefurther,addingriskstotheelectricitysystemduetoloweravailabilityofhydropowerandthermalgeneration.Lowerprecipitation,combinedwithhighertemperatures,willconsiderablyincreasetheriskofwildfires,whichposeriskstoenergyassets.In2021,thegovernmentconductedanupdatedclimateimpactassessmentthatestimatesvariationsin22climateparametersandindicesfortheperiods2031-2060and2071-2100,includingvariationsinthenumberofdaysperyearwithhighdemandforheating(temperaturelessthan10°C)andcooling(temperaturegreaterthan30°C).TheprojectionsarepubliclyavailableasGISmapsontheMoEEwebsiteandconfirmthetrendsofhighertemperaturesandlowerprecipitation(Greece,MinistryofEnvironmentandEnergy,2022).TheGreekelectricitytransmissionsystemoperatorhasalsousedclimatescenariostoestimatefuturepeakdemand.Greece’sNationalAdaptationStrategy(adoptedin2016)definesthegoals,principlesandprioritiesforclimateadaptationandlistspossibleadaptationmeasuresforallenvironmentalandsocio-economicsectorslikelytobesignificantlyaffectedbyclimatechange.Thestrategyincludestheenergysectorasoneof15priorityareasandproposesactionstoenhanceitsclimateresilience,includingthedeploymentofsmartenergynetworkstoenabledemandsideresponse,incorporatingprecautionarymeasuresintoenergyinfrastructureplanning,andconductingvulnerabilityassessmentsforenergyinfrastructure.Italsosuggestsmeasurestosafeguardtheenergysystembyprotectingthewaterresourcesusedforelectricitygenerationandenablingthedevelopmentofnewtechnologiestoincreaseoverallenergysystemresilience.TheNationalAdaptationStrategywillbeimplementedthrough13regionaladaptationactionplans,whichhavebeenfinalisedandareexpectedtobeendorsedin2023.EachIEA.CCBY4.0.2.ENERGYANDCLIMATECHANGE45ENERGYSYSTEMTRANSFORMATIONregionalplanappliestheoverallgoalsofthenationalstrategybasedonregionalcircumstances,prioritiesandneedsandincludesconcretemeasures/actionspersector.Fortheenergysector,theregionalplansforeseededicatedclimatechangevulnerabilityandimpactassessmentstoidentifyclimatevulnerabilityhotspotsandactionstoadaptenergyinfrastructuretoclimateimpacts,includingimpactsfromincreasedenergydemandforcoolinginthehousingandtourismsectors.TheNationalClimateLawincludesanumberofmeasuresforadaptingtoclimatechange,suchastheestablishmentofaNationalObservatoryforClimateChangeAdaptationandthemandatoryinsuranceofhousinginhighlyvulnerableareasfrom2025onwards.LIFE-IPAdaptInGRisanEU-fundedprojectthataimstosupporttheimplementationoftheNationalAdaptationStrategyandthe13regionaladaptationplansfrom2016to2025andthepreparationofupdatedadaptationpoliciesfrom2026onwards.TheprojecthasabudgetofEUR14.2million,mostlyfromtheEuropeanUnion(EUR8.3million)butalsofromthenationalbudget(EUR2.4million),partners(EUR3.2million)andprivatesectorco-financers(EUR0.3million)(Adaptivgreece,2022).AssessmentGreece’stotalgreenhousegasemissionsexcludingLULUCFfellby27.8%between1990and2020(30%withLULUCF),mainlybecauseofareductioninenergy-relatedemissions,whichaccountfor75%oftotalGHGemissions.From2005to2020,Greece’senergy-relatedGHGemissionsdecreasedsignificantly,from96.3MtCO2-eqto48.8MtCO2-eq.Thisreductionwasdrivenbytheprolongedcontractionoftheeconomy;theCovid-19pandemic;andatransitionawayfromlignite-firedgenerationtogenerationfromnaturalgas,windandsolarPV.Withtheeasingofpandemicrestrictions,emissionsreboundedto49.2MtCO2-eqin2021.Thegovernmentneedstoexaminecurrentandplannedemissionsreductionmeasurestoensurethatthedesiredreturntostrongeconomicgrowthdoesnotresultinincreasedemissions.Greecehasatargettoreducenon-ETSGHGemissionsby16%by2030versus2005.Greecehasalreadyexceededthistarget.Also,theEuropeanCommission,initsreviewofGreece’sNECP,hasnotedthatifGreeceimplementsalltheemissionsreductionmeasureslisted,itwillachieveanemissionsreductionof-33%versus2005,wellbeyondthe2030target.AdoptingtheEuropeanCommission’sproposalssupportingtheachievementoftheEU-wide55%emissionsreductiontargetwouldincreaseGreece’sobligationtoreducenon-ETSemissions.TheproposedexpansionoftheETStocoveremissionsfrommarineshippingwouldhavenotableimpactsonGreece,asshippingisamajorsectoroftheeconomyandaconsiderablesourceofemissions.Greece’sclimatepolicyiscentredontransitioningtonetzeroemissionsby2050whileensuringenergysecurity,improvingeconomiccompetitivenessandprotectingvulnerableconsumers.TheNECPisthemaindocumentdefiningthemitigationmeasurestoachievethe2030targetsandputGreeceonapathtoanetzeroenergysystem.TheNECPmeasureswiththelargestemissionsreductionpotentialrelatemainlytoincreasingthedeploymentofrenewableenergyandimprovingenergyefficiency.TheNECPandotherplanningdocumentsgivenaturalgasamajorroleasatransitionalfueltoreduceemissions,notjustfromlignite-firedgenerationbutalsothroughanIEA.CCBY4.0.2.ENERGYANDCLIMATECHANGE46expansionofthegasnetworktoreduceoildemandfrombuildingheatingandindustry.AsaresultofthesharpandsustainedincreaseingaspricesandthedesiretoreducerelianceonRussianenergy,thegovernmentisrevaluatingtheroleofnaturalgasintheenergysystemandhastakenstepstodiversifygassupplyandreducegasdemandbyacceleratingthedeploymentofrenewablesandenergyefficiencymeasures.Thegovernmenthastakenstepstoreducethetimeneededforlicensingrenewableprojectsandincreasethecapacitythatwillbeofferedthroughrenewableenergyauctions.However,significantinvestmentstoexpandthenaturalgasnetworkarestillplanned,andthegovernmenthasindicatedthatitwantsGreecetobecomearegionalgas-tradinghub.Thegovernmentneedstoclarifytheroleofnaturalgasintheenergysystemtoprovideclearsignalstoinvestorsandensurethatitcanmeetclimateandenergysecuritygoals.SomeinvestmentstodiversifythegassupplyawayfromRussiawilllikelybeneededintheshortterm.However,therelianceonnaturalgasasatransitionfuelcarriesrisksofstrandedassetsandcontinuedexposuretovolatilegasprices.Thereshouldbeclearpolicysupportforsustainedreductionsinnaturalgasdemand.Greeceshouldavoidinvestmentsthatincreasegasdemand,suchasanexpansionofthenaturalgasnetwork;instead,afocusshouldbeplacedonelectrification,renewableenergyandenergyefficiency.Greece’sNationalClimateLaw,adoptedinMay2022,strengthenedthecommitmenttoachieveclimateneutralityby2050,increasedthe2030totalGHGemissionsreductiontargetto55%andincludedan80%reductiontargetfor2040.Itsetscruciallegislationregardingdecarbonisationinseveralareas,includingabanonlignite-basedelectricitygenerationbytheendof2028andabanontheinstallationofoil-firedheatingfrom2025.Thelawrequiresthatfrom2030heatingwillhavetocontainatleast30%byvolumeofrenewableliquidfuels.Italsorequiresthatfive-yearcarbonbudgetsforfivekeysectorsoftheeconomybedrawnupby2024.Thesectorsobligedtohavecarbonbudgetsarenotclearlydefined.Thefirstbudgetsarefortheperiod2026-30.ThereisasignificantamountofGHGemissions(3.1MtCO2-eq)fromoil-basedelectricitygenerationontheislandsnotconnectedtothemainelectricitygrid.Greeceisimplementingambitiousprojectstoconnecttheseislandstothemaingridandtoinstallrenewablegenerationandstoragecapacitiestosupportthephase-outofoil-firedgenerationontheislands.Emissionsfromthetransportsectorhavebeenslowlyrisingsince2013,withatemporarydropin2020duetotheCovid-19pandemic.Emissionsarelikelygoingtoriseagainastransportdemandincreases.GreecehaslaunchednumerousmeasurestopromoteEVs;however,theuptakeofEVsandthedensityoftherecharginginfrastructureisstilllow.Theobligatoryblendingrateofbioethanolingasolinewasincreased,andanobligationforGHGemissionsreductionforfuelsupplierswasintroduced;however,theoldageofGreece’svehiclefleetandthetaxationofbiofuelsatthesamerateasfossilfuelshinderfurtherpenetrationofbiofuels.Also,oilproductsusedfordomesticmarineshipping,ferries,fishinganddomesticaviationareexemptfromexciseduties.MethaneemissionsaccountforonlyasmallshareofGreece’senergy-relatedGHGemissions(0.7%in2020).Theycomemainlyfromlignitemining(64%)andareexpectedtodecreaseaslignite-firedgenerationisphasedout.However,planstoexpanddomesticoilandgasproductionandgasinfrastructurecoulddrivehighermethaneemissions,andthegovernmentshouldconsiderstricterregulationstolimitmethaneemissions.IEA.CCBY4.0.2.ENERGYANDCLIMATECHANGE47ENERGYSYSTEMTRANSFORMATIONFollowingtheRussianinvasionofUkraine,GreecehastakenseveralstepstoreducerelianceonRussianenergyimports.Severalofthesestepswillleadtoincreasedemissionsintheshorttermincluding,thedelayofthelignitephase-outto2028.Otherproposedactivities,suchasincreaseddomesticoilandgasproduction,createrisksoflockinginlongertermemissions.In2021,GreecemademajorchangestohowETSrevenuesareallocated,shiftingmostETSrevenuesfromtheSpecialAccountforRenewableEnergySources,whichsupportssubsidiesforrenewableenergyprojects,totheEnergyTransitionFund,whichprovidesdirectpaymentstoconsumersandcompaniestoreducetheimpactofhighenergyprices.MostETSrevenuesarenowgoingtotheEnergyTransitionFund(74%in2021and75%in2022).ThisallocationdoesnotmeettheEUrequirementthat50%ofETSrevenuesbespenttomodernisetheenergysystemandreduceGHGemissions.Greecehasalawrequiring100%ofETSrevenuestobespentondomesticclimatechangeandenergyprojects.However,theallocationoftherevenuesisdecidedannually,andnonationallegislationrequiresaminimalsharetobespentinlinewiththeEUrequirements.ThisisespeciallyaproblemduetotherisingroleofETSrevenuesinclimatepolicyfinancingasaresultofhighallowances.Greeceishighlyexposedtothegrowingrisksofclimatechangethatcouldthreatenitsenergysystem.Theseincludeastrongincreaseintemperaturethatcoulddrivespikesinelectricitydemandforcoolingwhilealsoreducingelectricitygenerationandtransmissioncapacity.Areductioninprecipitationisalsoexpectedandwillreducetheavailabilityofhydrogenerationandthermalgeneration(lesscoolingcapacity).Inaddition,theincreasedriskofwildfirescouldcauseLULUCFtoshiftfromanemissionsinktoanemissionsource.Greece’sNationalAdaptationStrategy(adoptedin2016)definesthegoals,principlesandprioritiesforclimateadaptationandlistspossibleadaptationmeasuresforallenvironmentalandsocio-economicsectorsthatarelikelytobesignificantlyaffectedbyclimatechange.Thestrategyincludestheenergysectorasoneof15priorityareasandproposesactionstoenhanceitsclimateresilience.TheNationalAdaptationStrategywillbeimplementedthrough13regionaladaptationactionplans.TheNECPreferstomeasuresincludedintheNationalAdaptationStrategy,buttheeffectsofclimatechangeandthepossiblesynergiesbetweenadaptationandmitigationactionsarenotwellexplored.Giventhenotablerisksposedbyclimatechange,Greeceshouldtakestrongstepstoenhancetheclimateresilienceoftheenergysector.TheupdateoftheNECPshouldincludewell-definedadaptationmeasuresthatclearlysupportthenationalandregionaladaptationstrategiessothatthereiscoherenceonclimateadaptationbetweenkeypolicydocuments.TheelectricityTSOvoluntarilyconductedanassessmentofclimateimpactsonelectricitydemand,supplyandinfrastructure.Thegovernmentshouldconsiderrequiringthetransmissionanddistributionsystemoperatorstoincludeaclimateriskandvulnerabilityassessmentintheirdevelopmentplanstoidentifyaportfolioofeffectiveadaptationoptionsandbetteranticipatelikelyclimateimpactsontheirassets.IEA.CCBY4.0.2.ENERGYANDCLIMATECHANGE48RecommendationsThegovernmentofGreeceshould:AdjustthemeasuresintheupdateoftheNationalEnergyandClimatePlansotheyalignwiththeNationalClimateLawandincreaseEUclimateambitions.Reassesstheneedforinvestmentsinfossilfuelinfrastructure,takingintoaccounttheriskofstrandedassetsandtheneedtodirectlimitedcapitaltoinvestmentssupportingtheenergytransition.Ensurethatatleast50%ofrevenuesfromauctioningemissionsallowancessupporttheenergytransition.Clearlydefinethesectorsthatwillhaveacarbonbudgetfrom2026onwardstoensurethatallmajoremissionssourcesarecovered.ReferencesAdaptivgreece(2022),LIFE-IPAdaptInGR(webpage),https://www.adaptivegreece.gr/el-grEC(EuropeanCommission)(2021),CommissionStaffWorkingDocumentAccompanyingthedocumentReportfromtheCommissiontotheEuropeanParliamentandtheCouncilontheFunctioningoftheEuropeanCarbonMarketin2020PursuanttoArticles10(5)and21(2)ofDirective2003/87/EC(asamendedbyDirective2009/29/ECandDirective(EU)2018/410),https://op.europa.eu/en/publication-detail/-/publication/45b7fa71-363e-11ec-bd8e-01aa75ed71a1/language-enFSR(FlorenceSchoolofRegulation)(2021),EUCommissionpresentsproposalonmethaneemissionsreduction(webpage),https://fsr.eui.eu/eu-commission-presents-proposal-on-methane-emissions-reductionGlobalMethanePledge(2022),AbouttheGlobalMethanePledge(webpage),https://www.globalmethanepledge.orgGreece,MinistryofEnvironmentandEnergy(2022),Climatechange(webpage),http://mapsportal.ypen.gr/thema_climatechangeHaase,I.etal.(2022),TheUseofAuctioningRevenuesfromtheEUETSforClimateAction–AnAnalysisBasedonEightSelectedCaseStudies,https://www.ecologic.eu/sites/default/files/publication/2022/EcologicInstitute-2022-UseAucRevClimate-FullReport.pdfIEA(InternationalEnergyAgency)(2022a),GreenhouseGasEmissionsfromEnergy(database),https://www.iea.org/data-and-statistics/data-product/greenhouse-gas-emissions-from-energy(accessedon15June2022)IEA(2022b),ClimateResiliencePolicyIndicator,https://www.iea.org/reports/climate-resilience-policy-indicatorOE(OffshoreEngineer)(2022),EnergeanhiresHalliburtonforcarbonstorageprojectoffshoreGreece,https://www.oedigital.com/news/495321-energean-hires-halliburton-for-carbon-storage-project-offshore-greeceRicardoEnergy&Environment(2020),AssessmentoftheLong-TermStrategiesofEUMemberStates,https://ec.europa.eu/clima/sites/lts/lts_gr_summary_en.pdfTheGreenTank(2021),TrendsintheEmissionsTradingSystemintheEUandinGreece,https://thegreentank.gr/en/2021/07/12/ets-eu-greece-enUNFCCC(UnitedNationsFrameworkConventiononClimateChange)(2022),GreenhouseGasInventoryData(database),https://di.unfccc.int/detailed_data_by_party(accessedon15June2022)IEA.CCBY4.0.49ENERGYSYSTEMTRANSFORMATION3.EnergyefficiencyKeydata(2021)TFC:637PJ(oil52%,naturalgas9.7%,electricity28%,bioenergyandwaste7.1%,solar2.0%,coal1.2%,heat0.2%),-20%from2011to2021TFCbysector:buildings39%,transport36%,industry25%TFCpercapita:60GJ/capitain2021(IEAaveragein2020:113GJ/capita),-17%since2011TFCperGDP:3.2MJ/USDin2020(IEAaveragein2020:2.6MJ/USD),-14%since2011OverviewEnergyefficiencyisthe“firstfuelofchoice”forenergysecurityenhancementandclimatechangemitigation.Energyefficiencyofferscost-effectiveoptionsforsustainedsavingsinenergydemandthat,withproperpolicysupport,canbeimplementedquickly.Giventhecurrentenergycrisis,Greecehastheopportunitytoplaceastrongfocusonstrengtheningenergyefficiencymeasurestoreducefossilfueldemand.Thiswillprovideimmediatebenefitsforenergysecurityandcontributetothelong-termgoalofcarbonneutrality.Inresponsetothe2022globalenergycrisiscausedbyRussia’sinvasionofUkraine,theGreekgovernmentannouncedinSeptember2022exceptionalmeasurestoreduceenergyconsumptionby10%intheshorttermandby30%until2030.Thiswillbeachievedbyintroducingnewmeasuresinthepublicsectorandthroughexistingprogrammes.Forthemediumtermupto2030,theNECPdefinesenergyefficiencytargetsandawiderangeofenergyefficiencymeasurestobeimplementedacrossallsectors.UnderEUregulation,Greecehassettargetsforannualenergysavingsforthe2017-2020and2021-2030periods;themainmeasuretoachievethesetargetsisasystemofenergy-savingcertificates.Inthebuildingsector,thegovernmentisstrengtheningbuildingcodesandhaslaunchedanumberofinvestmentschemes.Theseprogrammesaimtoimprovetheenergyperformanceofpublicandprivatebuildings,increasethenumberofnetzeroenergybuildings,andexpandtheuseofrenewablewaterheating.Inthetransportsector,thecountryissupportingtheuptakeofEVsandisinvestinginimprovingcharginginfrastructure.Measuresforindustryenergyefficiencyincludeenergyauditsandsupportforefficientequipment,mainlyforheating.TheGreekrecoveryandresilienceplanalsoincludesanumberofinvestmentsinenergyefficiency.IEA.CCBY4.0.3.ENERGYEFFICIENCY50EnergydemandandefficiencyimprovementsEnergydemandinGreecesignificantlydroppedbetween2007and2014,butmostofthisdecreasewasduetotheeffectsoftheeconomiccrisis.Morerecently,Greecehasachievedsomeenergysavings,especiallysince2017,asthankstoenergyefficiencyimprovements,energyconsumptiondidnotfollowthepartialeconomicrecovery(Figure3.1).Theseenergysavingswereachievedmainlyintheresidentialsector,thankstotheshiftfromoil-firedtomoreefficientheatingsystems,andinpassengertransport.Figure3.1EstimatedenergysavingsfromefficiencyinGreece,2000-2019IEA.CCBY4.0.Source:IEA(2022a).From2005to2021,Greece’sTFCdecreasedby27%,from873PJto636PJ,duemainlytoreducedenergyuseinindustry(253PJto159PJ)andtransport(306PJto231PJ),causedbyeconomicimpactsandsomeefficiencyimprovements,especiallysince2017(Figure3.2).The7%dropinenergydemandbetween2019and2020isdrivenbythe15%decreaseinenergydemandintransportcausedbythepandemic.Between2005and2021,energydemandinbuildingsfluctuatedbetween233PJand319PJ,drivenmainlybychangesinannualheatingdemandandsomeimprovementsinspaceheatingefficiencylinkedtoatransitionawayfromoil-firedheating.In2021,buildingsaccountedfor39%ofTFC(residential28%andservicesector11%),followedbytransport(36%)andindustry(24%).Figure3.2TotalfinalconsumptionbysectorinGreece,2005-2021IEA.CCBY4.0.Source:IEA(2022b)00.200.400.600.801.001.200150300450600750900GDPindex(2005=1)PJEnergyconsumptionSavingsduetoefficiencyBusinessasusualGDPindex(rightaxis)0100200300400500600700800900100020052006200720082009201020112012201320142015201620172018201920202021PJServicesectorbuildingsResidentialbuildingsIndustryTransportIEA.CCBY4.0.3.ENERGYEFFICIENCY51ENERGYSYSTEMTRANSFORMATIONEnergyefficiencytargetsUndertheEUEnergyEfficiencyDirective(EED),eachEUmemberstatehasnationalenergyefficiencytargetsfor2020and2030thatcontributetoachievingEU-widetargetstoreduceenergydemandby20%by2020andby32.5%by2030(comparedtoabusiness-as-usualprojection).Thenationaltargetsaredefinedasreductionsinprimaryenergyconsumption(PEC)andfinalenergyconsumption(FEC).Greece’s2020targetsaresetinitsNationalEnergyEfficiencyActionPlan.Greece’s2030targetsaresetinitsNECP(Figure3.3).Lookingaheadto2050,Greece’sLong-termStrategysetsaroadmaptorenovatealmosttheentirebuildingstockby2050,alongwithintermediatetargetsofreducingoiluseby90%by2030whileincreasingtheuseofelectricityby20%by2030.Figure3.3Greece’s2020and2030energyefficiencytargetsandstatus,2005-2021IEA.CCBY4.0.2020status2021status2020targets2030targetsPrimaryenergyconsumption806PJ851PJ1034PJ858PJFinalenergyconsumption605PJ637PJ770PJ690PJSource:IEAbasedondatafromEurostat(2022).Greeceachievedits2021energyefficiencytargets.However,the2020targetswereadoptedinJune2008,justbeforethestartoftheglobalfinancialcrisis,andreflectedapositiveperspectiveofthegrowthoftheGreekeconomy.WhileGreecesuccessfullyimplementedsomeenergyefficiencypoliciesintheperiodleadingupto2020,mostofthereductioninenergydemandoverthisperiodresultedfromthenegativeimpactsofGreece’sprolongedeconomiccontractionandtheCovid-19pandemic.In2021,Greece’sPECandFECwerebelowthelevelssetforthe2020targets,reflectingthegovernment’sgoalofachievingstrongeconomicgrowthandimprovingenergyefficiencyandkeepingenergyconsumptionflat.In2021,the2030EU-wideGHGemissionsreductiontargetwasincreasedfrom40%to55%.TheEuropeanUnionismakingawiderangeofpolicyupdatestosupporttheincreasedtargetthroughtheFit-for-55package.ThisincludesasignificantupdatetotheEED,withaproposaltoincreasethe2030targetforreducingEU-wideenergydemandfrom32.5%to36%forFECandfrom32.5%to39%forPEC,or9%lowerthanthe2020referencescenarioprojections.GiventheincreasedEUambitionsforenergysavingsandtheEuropeanCommission’sindicationthatGreece’sexisting2030targetsareoflowtomoderateambition,itislikelythatGreecewillneedtoincreaseits2030energyefficiencytargetsandenhancesupportingmeasures.Inaddition,inMay2022,theEuropean0200400600800100012001400200520102015202020252030PJPrimaryenergyconsumption(PEC)Finalenergyconsumption(FEC)PECtargetFECtargetIEA.CCBY4.0.3.ENERGYEFFICIENCY52Commissionissuedanewcommunication(REPowerEU)thatproposesfurthertighteningthe2030energyefficiencytargetformemberstates,withareductionof13%fromthe2020referencescenarioprojections(EC,2022).EfficiencypolicyandmeasuresTheNECPisthemaindocumentdefiningGreece’senergyefficiencypolicyuntil2030.TheLong-termStrategydefinesenergyefficiencypoliciestosupporttheachievementofcarbonneutralityby2050.Mostofthesemeasuresfocusonspecificsectors.Buildingsectormeasuresprovideavarietyofincentivesforthermalrenovationsandupgradingheatingandcoolingsystems.TransportsectormeasuresfocusonincreasingtheadoptionofEVs,improvingtheefficiencyofgasolineanddieselvehicles,andonamodalshiftawayfromprivatevehicles.Industrysectormeasuresconsistmainlyofenergydemandaudits.EnergysavingsrequirementsunderArticle7oftheEnergyEfficiencyDirectiveUnderArticle7oftheEED,Greecehadatargetofachievingcumulatedenergysavingsfor3333thousandtonnesofoilequivalent(ktoe)(140PJ)between2017and2020.InitsNationalEnergyEfficiencyActionPlanof2017,thegovernmentindicatedanumberofmeasuresindifferentsectorstoachievethistarget.Themeasuresexpectedtodeliverthehighestamountofsavingswere“energymanagersandactionplansforpublicbuildings”(18PJ)and“obligationschemes”(14PJ).Dataonachievedenergysavingsshowthattheenergymanagersdeliveredmuchfewersavingsthanexpected(0.2PJ),whiletheEnergyEfficiencyObligationschemesoverachievedtheirtarget,reaching61.4PJofcumulatedenergysavings.However,totalcumulatedenergysavingsfrom2017to2020were101PJ,fallingshortofachievingthetargetof140PJ.Greece’sEnergyEfficiencyObligationScheme(EEO)startedin2017andismanagedbytheCentreforRenewableEnergySourcesandSaving.Obligatedpartiesareelectricity,gas,oilproductssuppliersorretailerswhosemarketshareishigherthan1%.Thenumberofobligatedpartieswas35in2022.Obligatedpartiesareawardedcertificates(whitecertificates)forverifiedenergysavingsandmustachievecertifiedenergysavingsaccordingtoannualtargetsthroughtheirowneffortsorbypurchasingcertificatesfromotherobligatedparties.Thereisnomarketplatformforcertificatetrading,andtheEEOexcludesthirdpartiesfromreceivingandtradingcertificates.Penaltiesareforeseenifobligatedpartiesdonotfulfiltheirannualtarget.Actionstacklingfuelpovertyareeligibleforabonusfactorof40%.From2017to2020,theEEOexceededitstargetdemandreductionby80%,withannualsavingsgrowingfrom7.3PJto36PJ.AnewcycleofenergysavingsisexpectedundertheEEDforEUcountriesfrom2021to2030.Greeceisexpectedtoachievecumulativeenergysavingsof7229ktoe(305PJ)bytheendofthisperiod.Inthegovernment’splan,energyefficiencyobligationschemeswillaccountfor20%(61PJ)ofthetotalcumulativeobjective,whereasatotalof9alternativepolicymeasuresaretobeimplementedtocovertheremainingpartoftheobjective.Theseincludeenergyupgradingofpublicandprivatebuildings;improvingenergyefficiencythroughenergyservicecompanies;energymanagersinpublicbuildings;upgradingpumping,lightingandtransportinfrastructures;andpromotingalternativefuelsinroadtransport.IEA.CCBY4.0.3.ENERGYEFFICIENCY53ENERGYSYSTEMTRANSFORMATIONExamplesfromothercountries,suchasFranceandItaly,showhowanenergycertificateschemecandriveveryhighenergysavingsifwellimplementedandregularlyrevised(Box4.1).Inbothcountries,certificatescanbetradedonadedicatedplatform,accessibletothirdparties,creatingamarketofenergy-savingcertificatesandincreasingtheirdemand,withtheeffectofincreasingincentivestoachieveenergysavings.Box3.1TheItalianandFrenchenergy-savingcertificatesystemsItaly’sWhiteCertificatesorEnergyEfficiencyTitles(EETs)schemestartedin2005andiswidelyregardedasthemostcost-efficientItalianenergyefficiencypolicy.In2016-2020,theEETmechanismcontributedtoachieving6.7milliontonnesofoilequivalent(Mtoe)(280petajoules[PJ])cumulativeenergysavings,ofwhich53%wereachievedintheindustrialsector.TheEETsalsohaveamajorroleinItaly’senergyefficiencystrategyto2030.Theyareexpectedtocontributeto0.223Mtoe(9.3PJ)ofenergysavingsperyearbetween2021and2030,equivalentto12.3Mtoe(515PJ)ofcumulativesavingsto2030,orabout21%oftheoveralltargetunderArticle7oftheEnergyEfficiencyDirective.Theschemepromotesenergyefficiencyacrossend-usesectors(industry,residentialbuildings,publiclightingandtransport).Itdoessobyassigningannualmandatorysavingsquotastoelectricityandnaturalgasdistributorswithmorethan50000endcustomers.ItispossibletofulfilthemandatorysavingsquotabyeitherdirectlyimplementingenergyefficiencyprojectsorpurchasingtheEETsonthemarket.Eachcertificateisawardedforonetonneofoilequivalent(toe)ofcertifiedenergysavingsachievedthroughenergyefficiencymeasuresandprojects.EETsaresecuritiesthatcanbetradedonadedicatedmarketplatformmanagedbythepubliccompany“GestoredeiMercatiEnergetici”(GME)orthroughbilateralnegotiations.Toensuretheschemecandelivertheexpectedsavingsfor2030,thegovernmentintroducedseveralchangesin2021aimedatstrengtheningtheEETsystem,includingsetting2021-2024obligationquotas,extendingthetypesofeligibleenergyefficiencyprojectsandintroducingauctioning.France’senergy-savingcertificatessystem(whitecertificates)startedin2006andisoneofthecountry’skeypoliciestoachieveenergysavingsintheresidential,tertiary,industry,transportandagriculturesectors,includinginstallationssubjecttotheEuropeanUnion’sEmissionsTradingSystem.Thesecertificates,so-called“certificatd’économiesd’énergie”(CEE),areissuedbytheMinistryofEcologicalTransitiontoeligiblestakeholdersthathaveundertakenenergy-savingoperationsandcanbetradedwithaunitexpressedin“MWhcumac”,correspondingtothecumulativediscountedsavingof1MWh(3.6GJ,0.09toe),overthelifetimeofaproductorinvestment.TheCEEstartedin2006,anditsfourthapplicationperiodendedon31December2021.Forthefourthperiodfrom2018to2021,thetargetwas2133terawatthours(TWh)(12Mtoeor502PJequivalentofenergysavingperyear).ThegovernmentaimstofurtherimprovetheperformanceandefficiencyoftheCEEduringthefifthperiod,whichbeganon1January2022.TheFrenchCourtofAuditors,theMinistryofEcologicalTransitionandtheGeneralInspectorateofFinancereviewtheCEEalongsidetheFrenchenergyagencyADEMEwithafullevaluationeverythreetofouryears.Sources:IEA(2021;2023).IEA.CCBY4.0.3.ENERGYEFFICIENCY54BuildingenergydemandandefficiencyTotalfinalconsumptionofbuildingsdroppedinlinewiththereductionineconomicactivityfrom2010to2014,hasfluctuatedsince,andwas246PJin2021,or39%ofTFC.Residentialbuildingsenergydemandismorethantwicethatofservicesectorbuildings,andaccountsfor71%ofbuildings’TFCin2021(Figure3.4).AccordingtothemostrecentdataavailablefromtheEUBuildingStockObservatory,in2015,therewere4.8millionbuildingsinGreece,ofwhich95%wereresidential.Amongresidentialbuildings,2.1millionweresingle-familyhousesand2.5millionweremulti-dwellingbuildings.Morethanhalf(55%)ofresidentialbuildingsand39%ofservicesectorbuildingswerebuiltbefore1980,whenregulationsonthermalinsulationenteredintoforce.Intheperiod2011-2018,morethan1.5millionenergyperformancecertificateswereissued.Accordingtothese,two-thirdsofresidentialbuildingshaveanenergyclassbetweenEandH(lowestclass).Figure3.4TotalfinalconsumptioninthebuildingsectorbysourceinGreece,2005-2021ResidentialbuildingsIEA.CCBY4.0.ServicesectorbuildingsIEA.CCBY4.0.Source:IEA(2022b).050100150200250PJElectricitySolarBioenergyandwasteHeatNaturalgasCoalOil0102030405060708090100PJHeatSolarElectricityBioenergyandwasteNaturalgasOilIEA.CCBY4.0.3.ENERGYEFFICIENCY55ENERGYSYSTEMTRANSFORMATIONFrom2007to2021,electricitywasthemainsourceofenergyinbuildings(50%in2021),playinganimportantroleinresidentialbuildings(36%)andalmostmonopolisingenergydemandinservicesectorbuildings(83%).Thesecond-largestsourceofenergyforbuildingsisoil(21%in2021),accountingforalargeshare,especiallyinresidentialbuildings(27%).Bioenergyandwastesupplied12%ofenergytobuildingsin2021.NaturalgasusehasbeengenerallylowcomparedtootherIEAcountries,covering11%ofbuildingTFCin2021.Solarthermalcovers5.1%ofenergydemandinbuildings,thehighestshareamongIEAmembercountries,thankstocontinuedpolicysupportforthistechnology(seethesectiononbuildingenergyefficiencypolicy).Districtheatcoversonly0.6%ofbuildingTFCandcoal0.1%.Mostoftheenergy(56.2%)intheresidentialsectorisusedforspaceheating,whichislargelyprovidedbydiesel-andbiomass-firedboilers.Appliancesaccountedfor17%ofresidentialenergyconsumption,waterheatingfor14%,cookingfor8.2%andcoolingfor4.3%.Theenergymixofresidentialspaceheatinghasseenadecreasinguseofoil,especiallybetween2010and2013,andthiscorrespondedtoadecreasedenergyintensityofspaceheatingperdwelling(Figure3.5).However,Greece’senergyintensityofspaceheatingisstillhigherthanSpain’sandPortugal’s.Figure3.5Energyconsumptionbysourceandenergyintensityofresidentialspaceheating,2005-2020IEA.CCBY4.0.Source:IEA(2022a).BuildingenergyefficiencypolicyTheGreekgovernmentaimstoimprovetheenergyefficiencyofbuildingsbystrengtheningminimumrequirementsandinvestmentprogrammes,alsointhecontextofthepost-pandemiceconomicrecoveryandwithspecialmeasurestosaveenergyfollowingRussia’sinvasionofUkraine.Thegovernmentissettingminimumrequirementsforbuildingsandpromotingincentiveprogrammes,withthetargetofrenovating60000dwellingsperyear,correspondingtocumulativeenergysavingsof306PJfrom2021to2030.MinimumrequirementsforbuildingsInthenewClimateLawof2022,thegovernmenthassetregulationstolimittheinstallationanduseofheatingoilboilers.Theinstallationofoilboilerswillnolongerbeallowedfrom2025,andfrom2030,oilforheatingwillhavetocontainatleast30%byvolumeofrenewableliquidfuels.04080120160PJResidentialspaceheatingbysourceDistrictheatElectricityNaturalgasBioenergyandwasteOil0102030405060GJ/dwellingEnergyintensityofresidentialspaceheatinginselectedcountriesGreeceGermanyFrancePortugalSpainIEA.CCBY4.0.3.ENERGYEFFICIENCY56AnEnergyPerformanceCertificate(EPC)mustbeissuedwhenabuildingisbuilt,purchased,rentedorafteramajorrenovation.AnEPCmustalsobeissuedbeforeandafterthecompletionofrenovationsfundedbygovernmentsubsidiestoconfirmthattherequiredlevelofimprovementhasbeenachieved.EPCsareissuedbyentitiesaccreditedbytheMinistryofEnvironmentandEnergy.AnEPCcanprovideabasisforconsumerstounderstandtheirbuilding’senergyefficiencyperformancewiththeclassificationfromA+toH.However,in2021,only38%ofresidentialbuildingshadanEPC,greatlylimitinginformationforconsumers.GreeceisimplementingtheEuropeanUnion’sEnergyPerformanceofBuildingsDirective.Everybuildinginthepublicsectorbuiltsince2019,andallbuildings(publicandprivate)builtsince2021,havetobeanearlyzero-energybuildings.Since2021,advertisementsforbuildingsforsaleorrentmustincludetheenergyefficiencyindexshownintheEPC.From2024,allpublicbuildingsmusthaveanenergyperformancecertificateofclassBorhigher.Whenbuildingsarebuilt,constructorsneedtoprovidetechnical,environmentalandeconomicfeasibilitystudiesfortheinstallationofatleastoneofthefollowingsystems:renewableenergysources,combinedheatandpower,districtheatingand/orcooling,orheatpumpsmeetingtheminimumEUrequirements.Since2011,newbuildingsareobligedtocoveratleast60%oftheenergyneedsforwaterheatingwithsolarthermaloranyotherrenewableenergysource.Buildingsnotcomplyingwiththisstandardneedtoprovidetechnicaldocumentationprovingthatitisnottechnicallyfeasible.Thispolicydroveuptheshareofsolarthermalinbuildings.In2021,GreecewastheIEAmembercountrywiththehighestshare(5%)ofsolarthermalinthissector.InvestmentsprogrammesTheElectraprogramme,launchedin2020,aimstoimprovetheenergyefficiencyofpublicbuildings(Greece,MinistryofEnvironmentandEnergy,2020).Theprogrammeisfundedfrom2022to2026withEUR500millionbytheDepositandLoadFundoftheEuropeanInvestmentBank,EUR170millionfromtheEURecoveryandResilienceFacility,andEUR250millioninprivateinvestments.TheprogrammeincludespublicbuildingswithanenergyclassbetweenCandHthathavenotyetundergoneradicalrenovation.Theprogrammefinancestherenovationofthewholebuilding,aimedtoimproveenergyefficiencyandreachclassBandreduceenergydemandby30%,withthemandatoryappointmentofanenergymanager.Financedinterventionsincludereplacingwindows,modernisingheatingandcoolingsystems,andinstallingrenewablesandelectricitystorage.Theprogrammeencouragestheparticipationofenergyservicecompaniestoperformtherenovationworks.TheSavingsatHomeprogrammeaimstoimprovetheenergyefficiencyofresidentialbuildingsandisfundedbyEUprogrammes,includingtheRecoveryandResilienceFacility.Theprogrammeprovidesinterest-freeloansandgrantsfortheinstallationofrenewablesandenergyefficiencymeasures.Theyearlyroundsfrom2018to2020receivedatotalof94094applicationsandprovidedgrantsforEUR1.3billionandloansforEUR113million.The2021roundoftheprogrammehadabudgetofEUR1.14million,amaximumeligibleinterventionofEUR28000andtargetedsupportforvulnerablehouseholds.Theprogrammeranuntiltheendofthefirsthalfof2022,witharecordhighnumberofapplications(87578).ThecontributionsforenergyefficiencyimprovementsoftheElectraandSavingsatHomeprogrammesareincludedinthe“Renovate”componentofGreece’srecoveryandIEA.CCBY4.0.3.ENERGYEFFICIENCY57ENERGYSYSTEMTRANSFORMATIONresilienceplan(Greece,2022).WithatotalbudgetofEUR2.7billion,thiscomponentisthesecond-largestoftheplanandiscentredonrenovationandenergyupgradingofbuildings,includingresidential,business(secondaryandtertiarysector)andpublicbuildingsandpubliclightingpoints.TherecoveryandresilienceplanalsosupportsthepublicationofGreece’sActionPlantoCombatEnergyPoverty,whichprovidesaframeworkforenergyupgradesofresidentialbuildingsofenergy-vulnerablehouseholds(seeChapter1).Aprogrammecalled“Recycle-ChangeDevice”startedinJune2022.Throughthisprogramme,Greekhouseholdscanreceiveasubsidytoreplaceuptothreeoldelectricapplianceswithnewones,includingairconditioners,refrigeratorsorfreezers.Householdscanapplytotheprogrammethroughadigitalplatformandneedtoreturntheoldappliancestoreceivethesubsidy.Thesubsidyraterangesfrom30%to50%ofthecostoftheappliance.Itisestimatedthatthisprogrammewillreduceelectricitydemandby209GWh(0.7PJ)peryearandsupportannualsavingsofEUR40million.Additionalenergysavingstotacklethe2022energycrisisInSeptember2022,thegovernmentpresentedanexceptionalplantosaveenergyinresponsetotheglobalenergycrisisfollowingRussia’sinvasionofUkraine.Theplanincludesmeasurestosave10%ofenergyintheshorttermand30%by2030,withsavingsachievedmainlyinthepublicsector.Amongthemainmeasuresare:Publicbodiesowningbuildingsmustappointanenergymanagerwhosetaskistooptimisetheuseofenergyinpublicbuildings.Updatedregulationforthemaintenanceandoperatingtemperaturesofheatingandcoolingsystems.Theseincludeaminimumtemperatureinthesummerof27°Candamaximumtemperatureinwinterof19°C,andswitchingoffheatingandcoolinginareaswithoutworkers.Mandatoryinstallationofshadingsystemstolimitheatingfromsolarradiationinthesummerandencouragingtheuseofnaturalventilation,especiallyatnight.Optimisationofstreetanddecorativelighting,withatargetofreducingenergyconsumptionby35-50%.Thecentralgovernmenthassetatargetforlocalgovernmentstoachieve10%ofenergysavingsfromstreetlightingwithrespecttothepreviousyearasaconditionforreceivingcertainaidsforenergycosts.Anadditional5%ofpublicaidwillbeprovidedthenextyearforthoseservicesthatachieveasavingsof15%.Improvetheenergyefficiencyofpumpingstationsofwaterandsewagefacilities,forexamplewiththeinstallationofinverters.Apublicelectronicplatformwillmonitortheimplementationoftheseandtheachievementofthetargets.NationalLong-TermRenovationStrategyfor2050withintermediatetargetsin2030TheLong-TermRenovationStrategyestablishesaroadmaptoachievetherenovationofalmosttheentirebuildingstockby2050.Intheresidentialsector,thefocusisplacedonatransitionoftheenergymixbyreducingtheuseofoilby90%by2030,replacingitwithnaturalgas,renewablesandelectricity,combinedwithenergysavings.Thestrategyalsohighlightstheneedtoreducetheuseofconventionalbiomass,withtheaimofreducinglocalairpollution.By2050,oil-firedheatingwillbetotallyeliminatedintheresidentialIEA.CCBY4.0.3.ENERGYEFFICIENCY58sector,withradicalindependenceofthesectorfromfossilfuels,whichwillbereplacedbyzero-emissiongassuchasbiomethaneandhydrogen,andtheuseofrenewableelectricitywithheatpumps.ElectrificationisakeypillaroftheLong-TermRenovationStrategy,withatargetofincreasingtheuseofelectricityby20%in2030(comparedto2015).Electricityisexpectedtocover47%ofenergydemandintheresidentialsectorin2030andreach81%in2050,astheuseofheatpumpsisexpectedtoincreasesignificantly,combinedwiththerenovationofbuildings.Theshareofelectricityinresidentialbuildingswas36%in2020.Intheservicesector,electricityisexpectedtocover87%ofdemandin2030andalmost100%in2050.Theshareofelectricityinservicesectorbuildingswas84%in2020.Thestrategyalsoreliessignificantlyonahigherrateofmajorrenovationsofthebuildingsenvelope,withagoalofachievingannualenergysavingsof1.6%peryearthrough2050,resultinginacumulativedropof46%inenergydemand.TransportenergydemandandefficiencyTransportsectorTFCdecreasedfrom306PJin2005to232PJin2021,whenitaccountedfor36%ofTFC(Figure3.6).In2021,theCovid-19pandemicandtherelatedrestrictionscauseda65%dropinenergydemandintransportcomparedto2019.Dieselisthemainfuelusedinthetransportsector,covering48%oftransportenergydemandin2021,followedbygasoline(36%).Otheroilproducts(LPG,keroseneandfueloil)accountedfor12%andbiofuelsfor3.9%.Naturalgasaccountedfor0.4%oftransportsectorenergydemandin2021.TheshareofcarsfuelledwithLPG(6.5%in2020)isdoubletheEUaverage(3%).Mostenergydemandinthetransportsectorcomesfromroadtransport,accountingfor85%oftransportenergyusein2019.Domesticnavigationaccountsfor11%,whiletheIEAaverageis4%.Domesticaviationcountsfor4%andrailfor0.4%(theIEAaverageis4%).Whileroadtransportationreliesmostlyonoilproducts,electricityisusedmainlyinrailandaccountedforaround0.2%oftotaltransportdemand.Almosttwo-thirdsofenergyconsumptionofrailisprovidedbyelectricity;therestiscoveredbydiesel.Figure3.6Totalfinalconsumptionintransportbyfuel,2005-2021,andbymodein2019IEA.CCBY4.0.Source:IEA(2022b).Energyconsumptionofpassengercarsperpassenger-kilometre(pkm)hasalmosthalved,from1.7MJ/pkmin2005to0.96MJ/pkmin2019,reachinglowerlevelsthanSpain,Water11%Air4%Rail0.4%Passengercars39%Freightroad40%Buses4%Motorcycles2.1%Road85%050100150200250300350400PJGasolineDieselOtheroilNaturalgasBioenergyandwasteElectricityIEA.CCBY4.0.3.ENERGYEFFICIENCY59ENERGYSYSTEMTRANSFORMATIONGermany,FranceandPortugal(Figure3.7).Thisismostlybecauseofthehighaverageofpassengeroccupancy,thesecond-highestamongIEAmembercountries(1.82versustheIEAaverageof1.48).Theeconomiccrisisfollowing2008hadasignificantimpactontheincreaseofpkmofcars,drivingdowntheindicator,asthepurchasingpowerofthepopulationexperiencedanexceptionaldecreaseandcarsharingbecameonecost-savingmeasureforfamilies.TheaverageageofGreekpassengervehiclesis16.6years,whiletheEUaverageis10.7years.Theenergyefficiencyoffreighttransportisverylow,withahighandnotsignificantlyimprovingenergyconsumptionpertonne-kilometre(tkm).ThepoorenergyefficiencyoffreighttransportisparticularlycriticalinGreece,astheshareofroadfreightintransportenergyconsumption(40%)isamongthehighestofIEAmembercountries.TheaverageageofGreekfreighttrucksis21.4years,theoldestintheEuropeanUnion,wheretheaverageis13.9years.Figure3.7TransportenergyintensityinselectedIEAcountries,2005-2020IEA.CCBY4.0.Note:DataforGreeceareonlyavailableuntil2019.Source:IEA(2022b).DeploymentofEVs,includingbatteryelectricvehiclesandplug-inhybridelectricvehicles,hasbeenrisingrapidlyinGreeceoverthelasttwoyears(Figure3.8).From2014to2022,thenumberofEVsincreasedfromjust62to18575.Growthhasdramaticallysteepenedsince2020,increasingalmostsixfoldby2022.WhileGreece’sEVmarketisexpanding,itisstilllaggingbehindotherEUcountries.In2022,theshareofEVsinthetotalcarfleetwasjust0.3%,comparedto2.3%inEurope;theshareofEVsinnewregistrationswas7.9%,comparedtotheEuropeanaverageof21.6%.Publiclyavailablechargingpointshavealsorampedupsince2018,from50to1020in2022.0.00.20.40.60.81.01.21.41.61.82005200620072008200920102011201220132014201520162017201820192020MJ/pkmPassengertransportenergyintensityGreeceSpainGermanyPortugalFranceItaly01234562005200620072008200920102011201220132014201520162017201820192020MJ/tkmFreighttransportenergyintensityIEA.CCBY4.0.3.ENERGYEFFICIENCY60Figure3.8RegisteredelectricvehiclesandpublicchargingpointsinGreece,2012-2022IEA.CCBY4.0.Source:EAFO(2023).TransportenergyefficiencypolicyTheGreekgovernmentaimstoimprovetheefficiencyofthetransportsectorandreduceitsimpactonclimatebyincreasingelectrificationandtheuseofalternativefuelsandpromotingamodalshifttopublictransport.Asoundenergypolicyinthetransportsectorinvolvesacomprehensiveapproachfollowingthe“avoid,shift,improveandfinance”model.Inthisapproach,measuresareadoptedtoavoidtheneedfortransport,shifttomoreefficienttransportmodessuchaspublictransport,improvetheefficiencyoftransportdevicesandinfrastructure,andfinancetheoverallreforminajustway.Greeceaimstosignificantlyincreasetheelectrificationofitstransportsectorinthecomingyearsasakeytooltoachieveitsclimategoals.TheNECPsetsclearyearlytargetsfortheadoptionofpassengerEVsinthecountry’svehiclefleetuntil2030,withmilestonesof10.1%EVsinnewpassengercarregistrationsby2024and30%by2030.Thegovernmentispreparinganationale-mobilitystrategy.InJuly2020,theGreekgovernmentpassedalawforpromotingelectromobilityinGreece.Thelawintroducesgrantsforthepurchaseofelectriccars,motorcycles,bicyclesandscooters;allocatesfree-of-chargeparkingspacestoEVs(withemissionslowerthan50gCO2/km);lowerstaxesforEV-relatedindustry;andpromotesspatialandurbanplanningfavourabletoEVs,suchastheinstallationofpublicchargingstations.Thelawalsoincreasestaxesforimportedoldvehicleswithhighemissions.TheClimateLaw2022requiresthatasof2024,atleastaquarterofnewcompanycarsmustbeEVs(batteryonlyorplug-inhybrid),emittinglessthan50gCO2/km.Moreover,from1January2026,allnewtaxiscirculatingintheprefectureofAthensandThessaloniki,aswellasone-thirdofnewcarsregisteredforrentalpurposes,mustbebatteryelectric.Inaddition,thelawintroducestheobligationtosellonlyzero-emissionvehiclesstartingin2030.Theprogramme“IMoveElectric”supportsthepurchaseofEVsinGreece.Initsfirstwave,itofferedsubsidiesofuptoEUR6000forthepurchaseofelectriccarsandmotorcycles.Thefirstcycleoftheprogrammewaslargelysuccessful.ItsignificantlycontributedtoincreasingthenumberofEVs,overshootingtheinitialtarget.SinceJuly2022,asecondversionoftheprogrammehasbeeninplace(IMoveElectricII),withabudgetof02004006008001000120002000400060008000100001200014000160001800020000201420152016201720182019202020212022ChargingpointsEVfleetBEVPHEVChargingpointsIEA.CCBY4.0.3.ENERGYEFFICIENCY61ENERGYSYSTEMTRANSFORMATIONEUR50millionfor2022-2023.Itincludesanincreaseinthesubsidyforindividualsandcompaniesfortheacquisitionofelectriccarsandmotorcycles.Thesesubsidiescoverupto30%oftheprice,uptoamaximumofEUR8000.ThepurchaseofasmarthomechargercanbesubsidiseduptoEUR500.AnextrabonusofEUR1000isgivenforscrappinganoldcar.Moreover,anextrabonusofEUR1000isgiventoindividualsunder29whenbuyinganelectriccarandEUR500whenbuyinganelectrictwo-orthree-wheeler.Subsidiesarealsoprovidedforbusinesscarsandtaxis.TaxiscanreceiveuptoEUR17500plusanotherEUR5000forscrappinganoldtaxiandreplacingitwithabatteryelectricone,financedbyadedicatedbudgetofEUR40millionfromtherecoveryandresilienceplan.Thetargetistoreplace2000taxis.ThisprogrammealsoincludestaxbenefitsforprivateindividualsandbusinessesowningEVs,suchasanexemptionfromtheregistrationtax,ownershiptax,luxurycommoditytaxandareducedVATrateforEVpurchases(13%insteadof24%).Inaddition,thee-mobilitylawbansorplaceshighfeesontheimportofolderpassengervehicles.Greece’srecoveryandresilienceplanalsoincludesEUR80milliontosupporttheinstallationofabout8000publiclyaccessibleEVchargingpoints.Greecehastargetstohave12000chargingpointsin2025and25000in2030.Thegovernmentisworkingonanonlineplatformthatwillshowallpubliclyaccessiblechargingpoints(Greece,MinistryofInfrastructureandTransport,2022).TheGreekgovernmentisexpandingtheelectrificationoftherailnetworkalongmultiplelines.Theministryhassignedapublicserviceobligationcontractwiththenationalrailcompany,whichisexpectedtoinvestintheacquisitionofelectricandhydrogen-fuelledtrains.Whileintheshorttermhydrogentrainsareaimedtocovernon-electrifiedportionsoftherailnetwork,inthelongtermtheywillbethefirstchoiceforanytypeofline,providedthathydrogenisgeneratedusingrenewableenergysources.ThegovernmentisalsoplanningtoextendtherailwaynetworkandincreaserailconnectionswithGreece’smainports.Since2021,allregionalauthoritiesandcertainmunicipalitieshavebeenobligedtopreparesustainableurbanmobilityplans.Theseplansincludeguidanceforimplementingpoliciesthatpromotetheuseofpublictransport,walkingandcycling,andmobilitymanagement.ThegovernmentcanfinanciallysupportthemeasuresproposedinthesustainableurbanmobilityplansaspartofthePublicInvestmentProgramorotherfinancialinstruments.SixGreekcities,includingAthens,havejoinedtheEuropeanUnion’sinitiativetoachievecarbonneutralityby2030.Underthisinitiative,AthenshasimplementedentryrestrictionsontrucksintothecitycentreandrequiredtruckstomeetEuro5emissionstandardstoenterotherareasofthecity.TheotherGreekcitiesparticipatingintheprogrammeareconsideringbansonoldandpollutingpassengervehiclesandtrucks.IndustryenergydemandandefficiencyTheindustrysector’sTFCwas159PJin2021andaccountedfor25%ofTFC.Theindustrysector(includingnon-energyuse)1hasbeenthesectorwiththelowestshareofTFC1Non-energyusereferstofuelsusedasrawmaterialsandnotusedasfuelortransformedintoanotherfuel.Thiscomprisestypicallyrawmaterialsusedinthechemicalandpetrochemicalsector.IEA.CCBY4.0.3.ENERGYEFFICIENCY62since2007.Industrialenergyconsumptiondeclinedmarkedly(by38%)between2007and2013,partlybecauseoftheglobalfinancialcrisis.Sincethen,energyusebyindustryhasstabilisedaroundanaverageof172PJ(Figure3.9).In2021,themainenergysourceintheindustrysectorwasoil(36%),followedbyelectricity(31%),naturalgas(22%),coal(5%),andbioenergyandwaste(4%).Thelargestenergy-consumingindustrialsectorsin2021werenon-metallicminerals,chemicalandpetrochemical,andnon-ferrousmetals,eachaccountingfor19%ofindustrialconsumption.Theothermainsectorsintermsofenergydemandwerefoodandtobacco(14%),agriculture/forestry(9%),construction(7%),ironandsteel(4%),miningandquarrying(3%),machinery(3%),andpaper(2%).Energyefficiencyinthemanufacturingsectorhasimprovedsomewhat,asitsenergyintensitypervalueaddeddecreasedfrom6.0MJ/USDin2016to4.4MJ/USDin2019,whichislowerthantheIEAaverageof5.3MJ/USDinthesameyear.Figure3.9TotalfinalconsumptioninindustrybysourceinGreece,2005-2021IEA.CCBY4.0.Source:IEA(2022a).IndustryenergyefficiencypolicyAsmandatedunderArticle8oftheEED,GreecerequireslargeindustriestoeitherconductanenergyauditeveryfouryearsorimplementanenergyorenvironmentalmanagementsystemsuchasISO50001.TheintegratedmanagementsysteminGreecewasexpandedin2016accordingtotheISO50001standard.Companiesarenotobligedtoimplementthemeasuresidentifiedintheaudit,andthegovernmentdoesnotprovidesupportforconductingtheauditsorimplementingtheidentifiedmeasures.The“GreenBusinesses”programmeencouragesthedeploymentandmarketingofenvironmentallyfriendlyproducts,whilethe“SupporttoImproveEnergyEfficiencyinIndustrialProcesses”specificallytargetsthereductionofenergydemandandthecostandclimateimpactofindustrialprocesses.Thegovernmenthasintroducedin2023the“EnergyEfficiencyImprovementinSMEs”programme.Theprogrammeisco-financedbytheEuropeanRegionalDevelopmentFundandtheOperationalProgrammeCompetitiveness,EntrepreneurshipandInnovation2014-2020.TheprogrammehasabudgetofEUR700millionandaimstosupportenergyefficiencyimprovementsin25000companies,ofwhich3400arenewcompaniesand05010015020025030020052006200720082009201020112012201320142015201620172018201920202021PJSolarHeatBioenergyandwasteCoalNaturalgasElectricityOilIEA.CCBY4.0.3.ENERGYEFFICIENCY63ENERGYSYSTEMTRANSFORMATIONmorethan6500haveresearchandinnovationactionplans.Theprogrammeprovidesasubsidyof40%foreachinvestment,fromaminimumofEUR30000toamaximumofEUR1million.AssessmentEnergyefficiencyshouldbethe“firstfuelofchoice”forenergysecurityenhancementandclimatechangemitigation.Energyefficiencyofferscost-effectiveoptionsforsustainedsavingsinenergydemandandcanbeimplementedquicklywithproperpolicysupport.Giventhecurrentenergycrisis,Greeceshouldplaceastrongfocusonstrengtheningenergyefficiencymeasurestoreducefossilfueldemand.Thiswillprovideimmediatebenefitsforenergysecurityandcontributetothelong-termgoalofcarbonneutrality.InGreece,thebuildingssectorhasthelargestshareoftotalfinalconsumption(39%in2021),followedbytransport(36%)andindustry(25%).From2005to2021,Greece’sTFCdroppedby27%,to637PJ.Mostofthisreductionoccurredfrom2008to2014andwasdrivenbytheeconomiccrisis.From2014to2019,energydemandremainedrelativelystableevenasGDPrecovered,thankstoenergyefficiencyimprovements.Theseenergysavingswereachievedmainlyintheresidentialsector–thankstoashiftfromoil-firedtomoreefficientheatingsystems–andinpassengertransport.Greeceoverachievedits2020targetsforenergyconsumption.However,the2020targetswereadoptedjustbeforetheglobalfinancialcrisisin2008andreflectedapositiveperspectiveonthegrowthoftheGreekeconomy.In2020,Greece’sprimaryandfinalenergyconsumptionwasalreadybelowthelevelssetforthe2030targets.UnderArticle7oftheEUEnergyEfficiencyDirective,Greecehadatargettoachieve140PJofenergysavingsfrom2017to2020.Tosupporttheachievementofthistarget,GreecedevelopedanEnergyEfficiencyObligationscheme.ThereisnomarketplatformforcertificatetradingandtheEEOexcludesthirdpartiesfromreceivingandtradingcertificates.From2017to2020,theEEOexceededitstargetdemandreductionby80%,withannualsavingsgrowingfrom7.3PJto36PJ.However,Greecefellshortofachievingtheoverallenergysavingstarget,astheothermeasuresidentifiedtoachievethetargetwerenotassuccessful,andtheoverallsavings(101PJ)were28%lowerthanthetargetof140PJ.ThemeasurewiththelargestenergysavingsachievedthroughtheEEOwasconsumerawarenesscampaigns(47%oftotalEEOsavings).Mostofthesavingswereachievedinthetransportsector(60%),whileindustrycontributedonly8%tothetotalsavings.Greeceplanstocapthesavingsthatcancomefromawareness-raisingcampaignsat30%andwillrequirethattechnicalmeasurescoveratleast30%ofEEOsavingsrequiredfortheobligatedparties.GreecealsoplanstoopenitsEEOtothirdparties(includingenergyservicecompanies)andcreateamarketplatformforcertificatetradingtodrivetheimplementationofcost-effectivemeasures.WhenupdatingitsEEO,Greeceshouldcloselyexaminelessonsfromothercountries.Theseincludecarefuldesign,monitoringandupdatingofthemarketmechanismforcertificatetradingandensuringthatsavingverificationproceduresaretimelyandtransparenttoallowquickprocessingandavoidfraud.IEA.CCBY4.0.3.ENERGYEFFICIENCY64AnupdateoftheEEDrequiresGreecetoachievecumulativeenergysavingsof305PJfrom2021to2030.ThegovernmentplansfortheEEOtocover20%ofthesavingsrequiredtomeetthistarget.Theremainingrequiredsavingswouldbecoveredbyninealternativepolicymeasures,mostlyfocusedonthebuildingsector.TheNECPincludes12prioritypolicyareasand47measurescoveringtheenergyefficiencyforbuildings,transport,industryandenergysupplyinfrastructure.TheNECPdoesnotincludeacost-effectivenessassessmentintheselectionofpriorityareasforenergyefficiencyimprovements.BuildingsTheGreekgovernmentsupportsenergyefficiencyinbuildingsthroughstrengthenedminimumrequirementsfornewbuildingsandinvestmentprogrammessupportingrenovationsofexistingbuildings.TheClimateLawincludesabanontheinstallationofoilboilersfrom2025onwards.Asof2030,oilforheatingwillhavetocontainrenewableliquidfuelsofatleast30%byvolume.Thegovernmenthasalsopublishedaplanwithintermediatemilestonestoincreasethenumberofnearlyzero-energybuildingsandrenovatealmost100%ofthebuildingstockby2050.Investmentprogrammessupporttherenovationofbuildings,includinganinvestmentofoverEUR5billionfromtherecoveryandresilienceplan.Thegovernmenthassetatargettorenovate60000buildingsperyearuntil2030toachievecumulativeenergysavingsof7.3Mtoe(306PJ)from2021and2030andcreateandmaintainover22000newfull-timejobs.IncentivesfortheserenovationswillbeprovidedthroughEUfundingandleveragingprivatefinancing.AsGreecehasaround4.8millionbuildings,reaching100%netzerobuildingsby2050requiresanotablyhigherrenovationrateofaround150000buildingsperyear.The“SavingatHome”programme(co-financedbytheEuropeanUnionandGreece)offersinterest-freeloansandsubsidiestoreplacewindowsanddoorsandtoupgradethermalinsulationandheatingsystems.Thisprogrammeshouldbeexpandedwithadditionalfundingtomeetthehighconsumerdemandforrenovationprojects.Inaddition,thefocusshouldbeondeeprenovationsthatcombineimprovementinthermalperformancewiththedeploymentofheatpumpstoallowforpropersizingoftheheatingandcoolingsystemtodeliverthemaximumbenefitsforenergysavingsandreducingenergybills.Low-incomehouseholdsshouldbeprioritised,withanappropriateleveloffinancialandtechnicalsupporttoensurethattheycantakefulladvantageoftheprogramme.Energyperformancecertificatesmustbeissuedwhenabuildingisbuilt,purchasedorrented,andbeforeandafteramajorrenovation.However,in2021,only38%ofresidentialbuildingshadanEPC,greatlylimitinginformationforconsumers.MoreeffortisneededtoincreasetheshareofbuildingswithanEPC.TherelativelylownumberofEPCsissuedcanbeattributedtoashortageofassessors,alackofenforcementmechanisms,andlowawarenessamongownersandbuilders.TheElectraprogrammeaimstoimprovetheenergyefficiencyofpublicbuildingsandhasabudgetofEUR670million(fromtheEuropeanUnion)for2022to2026,toppedupwithEUR250millionofprivateinvestments.ItsupportsdeeprenovationsofpublicbuildingstoreachclassBandachievea30%reductioninenergydemand.ThegovernmentshouldIEA.CCBY4.0.3.ENERGYEFFICIENCY65ENERGYSYSTEMTRANSFORMATIONtakestepstoacceleratethisprogramme(e.g.byfront-loadingthefunding)soitcandeliversavingsintheneartermaspartoftheefforttouseenergyefficiencytolimittheimpactsoftheenergycrisis.TransportTheNECPincludesapriorityarea“replacementofpollutingpassengervehiclesandfreightvehicles”.Greece’spassengerandfreightfleetsaresignificantlyolderthantheEUaverage.Thegovernmentisfocusingitstransportpoliciesontheelectrificationofthefleet,withatargetofachieving30%ofEVsinnewpassengervehiclesalesby2030.AnumberofprogrammesprovidesubsidiesforthepurchaseofEVsandtheinstallationofEVchargersforprivatecitizens,companiesandtaxis.EVsalsobenefitfromtaxexceptionsorreductions.Thegovernmentalsointendstoimproveurbanplanningandsupporttheuseofactivetransportmodes,suchaswalkingandcycling.In2021,thegovernmentpublishedguidelinesfordevelopingandimplementingsustainableurbanmobilityplans.Thedesignandimplementationoftheseplansarenotmandatoryforlocalauthorities,butthegovernmentplanstofinanciallysupporttheirimplementation.Acomprehensiveapproachshouldbetakentodesignurbantransportsystems.Followingthe“avoid,shift,improveandfinance”framework,thedevelopmentofpublictransportsystemsshouldgohandinhand,forexample,withparkingregulationtoavoidpassengervehicleuseandtheprovisionofeconomicincentivestofacilitatethereplacementofoldvehicleswithnewones.Inthisregard,introducingascrappingprogrammetoreplaceoldervehicleswithneweroneswillhaveanimmediateimpactonreducingthedemandforoilproducts.Policyneedstobeinplacetoregulatethelargefreightcompaniesandfacilitatetheoptimisationoftheirenergyconsumption.Establishingareportingsystemisonewaytounderstandthoseentities’energyconsumption,whichcanbefollowedbysettingatargetfortherespectiveentitiestomeet.ThegovernmentofGreececanprepareguidelinesonthemethodstoimprovefreighttransportefficiency,suchasinter-companyco-ordinationonlogisticsandtheuseofdigitaltechnologies.IndustryTheNECPincludesapriorityareaforthe“implementationofenergyefficiencyandthecompetitivenessoftheindustrysector”.However,energyefficiencypolicyintheindustrysectorislimitedandreliesmainlyontheEUrequirementforlargeindustriestoeitherconductanenergyauditeveryfouryearsorimplementanenergyorenvironmentalmanagementsystemsuchasISO50001.Companiesarenotobligedtoimplementthemeasuresidentifiedintheaudit.Thegovernmentshouldconsiderrequiringcompaniestoimplementallmeasuresidentifiedintheauditthathaveapaybackperiodunderacertainnumberofyears.ThisisstandardpracticeinmanyIEAcountries.Anannualawardsystemcanbeintroducedtocommendthebest-performingcompaniesbasedonthetotalauditresults.Also,basedontheresultoftheenergyaudits,aclassevaluationsystem(similartoanEPC)canbeintroduced.Systemscanbeestablishedtoadvertisetherankingofauditresultsasameanstoencouragefurtherefforts.IEA.CCBY4.0.3.ENERGYEFFICIENCY66Anewincentivefortheindustrysector,similartotheElectraprogrammeforpublicbuildings,isunderpreparationtofacilitateenergyefficiencyinvestments.Underthisframework,applicantsshouldmeetpre-conditions,suchastheintroductionofanenergymanager.Moreworkisneededtodriveenergysavingsinindustry.Greeceshouldpublishguidelinesonefficienttechnologiesandpracticesfortheenergy-intensiveindustrysubsector.Thiscanbedonebyworkingtogetherwiththerespectiveindustryassociationstoincreasetheirengagement.RecommendationsThegovernmentofGreeceshould:Quicklystrengthenenergyefficiencyandconservationmeasurestoreducefossilfueldemandinallsectors.Thiswillprovideimmediatebenefitsforenergysecurityandcontributetothelong-termgoalofcarbonneutrality.AllowthirdpartiestoparticipateintheEnergyEfficiencyObligation,introduceamarketmechanismforcertificatetradingandencouragetheachievementofpermanentsavings.ThiswillincreasetheimpactoftheEnergyEfficiencyObligationanddrivecost-effectiveenergysavingsacrosstheeconomy.Focusbuildingrenovationprogrammesondeeprenovationsthatcombinethermalinsulationwithheatpumpstodelivermaximumbenefitsforenergysavingsandreducingenergybills.Priorityandadequateresourcesshouldbegiventovulnerablehouseholds.Promotethereplacementofoldvehicles,especiallyfreighttrucks,byprovidingincentives,includingascrappingprogrammetotrade-inoldervehiclesformoreefficientones.Prepareguidelinesonefficienttechnologiesandpracticesforenergy-intensiveindustrysubsectors.Thiscanbedonethroughco-operationwithindustryassociationstoincreaseindustryawarenessandengagement.IEA.CCBY4.0.3.ENERGYEFFICIENCY67ENERGYSYSTEMTRANSFORMATIONReferencesEAFO(EuropeanAlternativeFuelsObservatory)(2023),EuropeanAlternativeFuelsObservatory(database),https://alternative-fuels-observatory.ec.europa.eu/transport-mode/road/greece/vehicles-and-fleet(accessedon9March2023)EC(EuropeanCommission)(2022),EnergyEfficiencyDirective,https://energy.ec.europa.eu/topics/energy-efficiency/energy-efficiency-targets-directive-and-rules/energy-efficiency-directive_enEurostat(2022),Simplifiedenergybalances(dataset)https://ec.europa.eu/eurostat/databrowser/view/nrg_bal_s/default/table?lang=en(accessedon19July2022)Greece(2022),Greece2.0,NationalRecoveryandResiliencePlan,https://greece20.gov.gr/wp-content/uploads/2021/07/NRRP_Greece_2_0_English.pdf#page=25Greece,MinistryofEnvironmentandEnergy(2020),StartoftheElectrapublicbuildingsenergyupgradeprogramme,https://ypen.gov.gr/sti-grammi-afetirias-to-programma-eneGreece,MinistryofInfrastructureandTransport(2022),Publiclyaccessiblechargingpoints,https://electrokinisi.yme.gov.gr/public/ChargingPointsIEA(InternationalEnergyAgency)(2023),EnergyPolicyReviewofItaly,forthcomingIEA(2022a),EnergyEfficiencyIndicators(database),https://www.iea.org/data-and-statistics/data-tools/global-ev-data-explorer(accessedon20October2022)IEA(2022b),WorldEnergyBalances(database),https://www.iea.org/data-and-statistics/data-product/world-energy-balances(accessedon20October2022)IEA(2021),EnergyPolicyReviewofFrance,https://www.iea.org/reports/france-2021IEA.CCBY4.0.69ENERGYSYSTEMTRANSFORMATION4.RenewableenergyKeydata(2021)Renewablesintotalfinalenergyconsumption(TFEC):130.1PJ/20.4%ofTFEC(bioenergy7.4%,wind5.3%,solar4.7%,hydro3%,geothermal0.03%)Renewablesinelectricitygeneration(2021):22.1TWhor40.6%ofelectricitygeneration(wind10.5TWh,hydro5.9TWh,solar5.3TWh,bioenergy0.5TWh)OverviewFrom2011to2021,theshareofrenewableenergyinGreece’stotalfinalenergyconsumption(TFEC)increasedfrom11%to20%,drivenmainlybygrowingelectricitygenerationfromwindandsolarPV,steadygrowthinheatingfromsolarthermal,andasmallincreaseinliquidbiofuelsinroadtransport.Overthesameperiod,heatingfromsolidbiomassexperiencedanoveralldecline(Figure4.1).In2021,Greece’sshareofrenewablesinTFECranked14thamongIEAmembercountriesandclosetotheIEAaverage.Inthesameyear,renewablesaccountedfor22%ofGreece’sgrossfinalenergyconsumption,36%ofelectricitygeneration,36%ofheatingandcoolingdemand,and4.3%oftransport(Figure4.2).2Greece’srenewableenergypolicyaimstoacceleratetheuseofrenewableenergy,andthegovernmentseesrenewableenergyasessentialtoachieving2030climatetargetsandlong-termgoalsfornetzeroemissions.Thegovernmentaimstoboosttheuseofrenewablesacrosstheeconomy,mainlythroughastrongincreaseinrenewableelectricitygenerationlinkedtowidespreadelectrificationofenergydemand,especiallyforbuildingsandroadtransport.ThereisafocusondeployingsolarPVandonshorewindgeneration,butGreeceisalsoworkingtodeployitsfirstoffshorewindfarms.Greecerecentlymadeseveralsignificantchangestoitssupportschemeforrenewableelectricitygenerationtoincreasetherateofdeploymentandensurelowelectricityprices.Thecurrentsystemprovidessubsidiesthatareawardedthroughcompetitiveauctionsandreflectmarketprices.Greeceisalsotakingstepstoreducethetimeneededforlicensing,permittingandconnectingrenewableprojectstothegrid.SincetheRussianinvasionofUkraine,Greecehasnotablyincreasedeffortstodeployrenewablesasakeypartof2SharesarebasedonEurostatmethodologiesusedtotrackprogressonrenewableenergytargetsandaredifferentfromtheIEAmethodology.Eurostatappliesformulastonormalisefluctuationsinwindandhydrogeneration,andusesmultiplicationfactorsthatgivehighersharestoadvancedtransportationbiofuelsandrenewableelectricityintransport.IEA.CCBY4.0.4.RENEWABLEENERGY70reducingrelianceonRussianenergy.Inthelongerterm,GreeceaimstobeanetexporterofrenewableelectricitytotherestofEurope.Figure4.1RenewableenergyintotalfinalenergyconsumptioninGreece,2005-2021IEA.CCBY4.0.Source:IEA(2022).Figure4.2RenewableenergyinkeymetricsinGreece,2021IEA.CCBY4.0.Sources:EC(2022a);IEA(2022).RenewableenergytargetsUndertheEURenewableEnergyDirective,Greecehas2020and2030targetsforrenewablesingrossfinalconsumptionandelectricitygeneration,heatingandcooling,andtransport,whichareintendedtosupporttheachievementofEU-widetargetsforrenewablesingrossfinalconsumptiontoreach20%by2020and35%by2030(the2030targetislikelytobeincreasedto45%).Greece’s2020targetsandsupportingmeasuresaresetinitsNationalRenewableEnergyActionPlan.The2030targetsandsupportingmeasuresaresetinitsNECP(Figure4.3).0%5%10%15%20%25%020406080100120140PJBioenergy(heatplants)Bioenergy(electricity)Liquidbiofuels(directuse)HydroSolarWindSolidbiomass(directuse)Shareofrenewables(rightaxis)0%5%10%15%20%25%30%35%40%020406080100120140160180GrossfinalenergyconsumptionElectricityHeatingandcoolingTransportPJSolarthermalSolarPVGeothermalWindHeatpumpsHydroBioenergyandwasteRenewableshare(rightaxis)IEAIEA.CCBY4.0.4.RENEWABLEENERGY71ENERGYSYSTEMTRANSFORMATIONFigure4.3Greece’srenewableenergytargetsandstatus,2005-2021IEA.CCBY4.0.StatusTargetsandtrajectoriesRenewableenergyshare202120202030Grossfinalenergyconsumption21.9%20%35%Electricity35.9%29.2%61%Heatingandcooling31.2%30.6%43%Transport4.3%6.6%19%Source:IEAbasedondatafromEC(2022a).Greeceoverachievedits2020targetsforrenewableenergyingrossfinalenergyconsumption,electricitygeneration,andheatingandcooling.However,theachievementofthesetargetspartlyresultedfromthesignificantreductioninenergydemandcausedbyGreece’sprolongedeconomiccontractionandtheCovid-19pandemic.Thegovernmentexpectsthatenergydemandwillincreasewitheconomicrecovery.Increasedenergydemandwillrequireafasterpaceofrenewablesdeploymentthanseeninthelastyearstoensuretheshareofrenewablesincreasesinlinewith2030targets.Thisisespeciallytrueforthetransportsector,whereGreecedidnotachievethe2020renewablestarget.InOctober2020,theEuropeanCommissionpublisheditsreviewofGreece’sNECP,notingthatthe2030targetforrenewablesingrossfinalenergyconsumptionexceedstheneededcontributiontotheEU-widetarget.However,inDecember2020,the2030EU-wideGHGemissionsreductiontargetwasincreasedfrom40%to55%.TosupporttheincreasedtargetandtheREPowerEUeffortstoendrelianceonRussianenergy,theEuropeanUnionisupdatingnumerouspoliciesthroughtheFit-for-55package.ThisincludessignificantchangestotheRenewableEnergyDirective,withaproposaltoincreasetheEU-wide2030targetforrenewableenergyingrossfinalenergyconsumptionfrom32%to45%.Greecewilllikelyneedtoincreaseits2030renewableenergytargetstosupporttheachievementofthesemoreambitiousEUtargets.RenewableenergypolicyandmeasuresToachieveits2030renewableenergytargetsandplacethecountryonapathtonetzeroemissions,Greece’srenewableenergypolicyfocusesonincreasingelectricitygenerationfromrenewables,mainlywindandsolarPV,andelectrificationofenergydemand,especiallyinbuildingheatingandtransport.Inadditiontoincreasingtheuseofrenewableelectricity,Greeceaimstocontinuethedeploymentofsolarthermalheating,increasethe0%10%20%30%40%50%60%70%200520102015202020252030ShareofrenewablesElectricityTargetsHeatingandcoolingTargetsGrossfinalconsumptionTargetsTransportTargetsIEA.CCBY4.0.4.RENEWABLEENERGY72deploymentofheatpumpsandexpandtheuseoftransportbiofuels,especiallyadvancedbiofuels.Therearealsogeneralgoalstousehydrogenproducedfromrenewableenergyinhard-to-decarbonisesectorssuchasshippingandheavyindustry.RenewablesinelectricityFrom2011to2021,Greeceexperiencedanoverallincreaseinrenewableelectricitygeneration,from8.1TWhto22TWh(Figure4.4).Mostofthisgrowthcamefromarelativelysteadyincreaseinwindgeneration(3.3TWhto10.5TWh).SolarPVgrewsignificantlyfromjust0.6TWhin2011to3.7TWhin2013,butsince2014hasseenmuchslowergrowth,reaching5.1TWhin2021.Hydrogenerationishighlyvariabledependingonwateravailability,reachingahistoricpeakof7.5TWhin2010.Becauseofcontinuingtrendsoflowerprecipitation,generationfromhydrohasbeenfallingandwasjust5.9TWhin2021.Generationfrombiogasissmall,butincreasedfrom0.2TWhto0.5TWhbetween2011and2021.InOctober2022,renewablegenerationcovered100%ofGreece’selectricitydemandforaroundfivehours;thisisthefirsttimerenewableshavecovered100%ofelectricitydemand.Figure4.4RenewableenergyinelectricitygenerationinGreece,2005-2021IEA.CCBY4.0.Source:IEA(2022).Greeceispushingformuchhighergenerationfromrenewables.TheNECPhasatargettoexpandrenewablecapacity(excludinglargehydro)to19GWby2030versus9.87GWinSeptember2022.Thegovernmentestimatesthatby2030therewillbesignificantadditionsofcapacityforsolarPV(+4.2GW)andwind(+2.9GW),alongwithnotableadditionsforpumpedhydrostorage(+0.7GW),biogas(+0.2GW),andtheintroductionofsmallcapacitiesofgeothermal(0.1GW)andconcentratedsolarthermal(0.1GW).AsofJuly2021,around4.3GWofnewrenewableprojectshadbindingtermsforagridconnection,mainlywind(2.4GW)andsolarPV(1.8GW).Another15.6GWofrenewableprojectshaveappliedforgridconnections,mainlywind(14.7GW).InApril2022,Greece’slargestto-datePVplant,aEUR130millionprojectwith0.2GWofcapacity,wasconnectedtothegrid;itisexpectedtogeneratearound0.35TWhperyear(Liangou,2022).Greecehasseveralsupportmechanismstoencouragethedeploymentofrenewableelectricitygeneration.LargehydropowerplantsareexcludedfromparticipationinmostsupportschemesforrenewableenergybutreceivesignificantsupportthroughGreece’scapacitymarket(seeChapter6).Supportforwind,solarPV,small-scalehydro,bioenergy,0%10%20%30%40%50%0510152025TWhSolidbiomassBiogasHydroSolarPVWindRenewablesshare(rightaxis)IEA.CCBY4.0.4.RENEWABLEENERGY73ENERGYSYSTEMTRANSFORMATIONgeothermalandavarietyofothertechnologiesisprovidedthroughafeed-intariff(FIT),afeed-inpremium(FIP),contractsfordifferences,netmeteringandinvestmentsubsidies.In2015,GreeceintroducedaFITasthemainmeasuretodriverenewablesdeployment.TheFITprovidesasubsidy(EUR/MWh)forgenerationdeliveredtothegridandwasinitiallyopentomostrenewableenergytechnologiesandprojectsizes(MW).ThelevelanddurationofFITpaymentsdependonseveralfactors.EligibilityfortheFIThasbeenprogressivelyrestricted,anditnowprimarilysupportssmallerscaleorinnovativerenewableenergyprojects.Greeceistransitioningtoasystemwheremostrenewableenergysupportisprovidedthroughcompetitiveauctionswhichawardsubsidiesthroughatwo-waycontractfordifferencethataccountsformarketprices.TheSpecialAccountforRenewableEnergySourcesisthemainfundingsourceforrenewableenergysubsidies.TheaccountisfundedwithrevenuesfromtheSpecialDutyofGreenhouseGasEmissionsReduction,whichischargedtoallelectricityconsumers;fromETSallowanceauctionrevenues;andfromexcessrevenuesearnedbyrenewablesuppliersreceivingsupportthroughtheFIP(RAE,2022).Severalrecentpolicyandmarketchangeshavenotablyimpactedtherevenuegoingtotheaccount.AuthorityoversettingtheSpecialDutyofGreenhouseGasEmissionsReductionwastemporarilymovedfromtheRAEtotheMinistryofEnvironmentandEnergyin2019and2020.In2019,thedutywasreducedfrom23EUR/MWhto17EUR/MWhandsetatthislevelthrough2028.Priorto2021,mostETSallowancerevenues(upto78%)wenttotheSpecialAccountforRenewableEnergySources.Startingin2021,mostETSallowancerevenues(around75%)wereinsteaddirectedtotheEnergyTransitionFund,whichprovidessubsidiestoelectricityconsumerstoreducetheimpactofhighenergyprices.Sincelate2021,highelectricitypriceshaveincreasedtherevenueflowingintotheSpecialAccountforRenewableEnergySourcesfromtheexcessrevenuesearnedbyrenewablesuppliersreceivingsupportthroughtheFIP.ExcessearningsforNovemberandDecember2021contributedEUR936.5milliontotheaccount.However,in2022,EUR1.1billionwastransferredfromtheSpecialAccountforRenewableEnergySourcestotheEnergyTransitionFund.TheGreekrecoveryandresilienceplanincludescallsforreformstoensurethefinancialsustainabilityoftheSpecialAccountforRenewableEnergySources.Tosupportthiseffort,GreecepassedlegislationinJune2022tocreateasub-accounttosupportrenewableenergyprojectscommissionedafterJanuary2021andasub-accounttosupportenergystoragewithaFIP-basedsubsidy.Establishingthesub-accountfornewprojectswasaconditionfortherenewablesaccounttoreceiveEUR202millionfromtheEURecoveryandResilienceFacility.InadditiontothesubsidiesforgenerationprovidedthroughtheFIPandFIT,thegovernmentprovidessubsidiesandtaxbreakstocoverinvestmentcostsforcertainrenewableelectricityprojectsbuiltbyprivateenterprisesorsocialco-operatives.Underthe2016DevelopmentLaw,subsidiesandtaxbreaksareavailableforinvestmentsinsmallhydroplants;biomassco-generationplants;andprojectsforself-consumptionofsolar,wind,geothermalandbiogas.ThereareminimalprojectcostsrangingfromEUR50000forsocialco-operativestoEUR500000forlargeenterprises.Subsidiescancover30-65%ofrelevantinvestmentcostsdependingonthesizeoftheenterpriseinvestingandthetypeofproject(RESLegal,2019a).Inaddition,qualifyingprojectsareIEA.CCBY4.0.4.RENEWABLEENERGY74eligiblefortaxrelief(RESLegal,2019b).TheMinistryofEconomyandDevelopmentfundstheinvestmentsubsidiesandtaxrelief.Greecehasmeasuressupportingbuildingrenovationsthatsupportbothenergyefficiencyandthedeploymentofrenewablegenerationandenergystorage(seeChapter3).TheClimateLawincludesarequirementthatstartingin2023,mostnewandlargebuildingsneedtogenerateelectricityonsitefromrenewablesources.TherearealsomajorelectricitymarketreformsunderwayinGreece,whichareprimarilyintendedtobringthecountryintothecommonEuropeanelectricitymarketandimplementarangeofEUrequirements.Theserulesalsointendtosupportrenewablegenerationandenergystoragebyallowingthemtoparticipateinallsegmentsoftheelectricitymarket(seeChapter6).Tolimittheimpactofhighenergyprices,GreeceintroducedwholesalemarketpricecapsinJuly2022forelectricitygenerationfromlignite(214EUR/MWh),largehydro(112EUR/MWh)andotherrenewables(85EUR/MWh).UnderREPowerEUandnewrulesforrenewableenergypublishedinMay2022,EUmemberstatescouldberequiredtomapsuitablelandandseaareasforrenewableenergyprojects.Theseso-calleddesignatedrenewablesgo-toareasavoidenvironmentallyvaluableareas.TheEuropeanCommissionhasmadeavailablerelevantdatasetsintheEnergyandIndustryGeographyLabonlineplatformtosupportmemberstatesinidentifyinggo-toareas.SubsidyauctionsandpowerpurchaseagreementsFrom2018toJuly2020,fiveauctionsawardedFIPsupportto142MWofsolarPVprojectsand472MWofwindprojects.Overthecourseoftheseauctions,theaveragebidsforselectedprojectsdeclinedfrom64EUR/MWhto50EUR/MWhforPVandfrom70EUR/MWhto56EUR/MWhforwind.Technology-neutralauctionswereheldin2019,2020and2021(withmostawardsgoingtoPV).The2021auctionshowedacontinuingpricedecline,withanaveragebidof38EUR/MWh.Windprojectswithacapacitylessthan3MWandotherrenewableprojects(includingsolarPV)withacapacitylessthan0.5MWwerenotrequiredtoparticipateintheseauctionsbutreceivedaFITcontractifapprovedforgridconnection.AsofDecember2020,around6.3GWofprojectswerereceivingsupportthroughaFITand1.7GWofprojectsthroughaFIP.In2021,Greecemadesignificantupdatestotheauctionsystemtoacceleratethepaceofrenewablesdeploymentandincreasetheshareofsubsidiesawardedthroughcompetitiveauctions.Theupdatedsystemaimstosupportthedeploymentof4.2GWofsolarPVandwindfrom2022to2025,withabudgetofEUR2.27billion.IfaminimumtechnologydiversificationisnotachievedviajointsolarPVandwindauctions,thegovernmentwillconsidertechnology-specificauctions(Aposporis,2021).Underthenewauctionsystem,subsidiesareawardedthroughatwo-waycontractfordifference.Ifmarketpricesarebelowthebidprice,aprojectreceivesthedifferenceasasubsidy.Ifmarketpricesareabovethebidprice,aprojectpaystheexcesstotheSpecialAccountforRenewableEnergySources.Sometechnologiesandprojectsareexemptedfromtheauctionsandreceivecompensationbasedontechnology-specificreferenceprices,whichareregularlyupdatedtoreflectcosttrends.Undertheupdatedsystem,Greeceplannedtoconductfiveauctionsin2022.ThefirstauctionwasheldinMarch2022for600MW.AsecondauctionwasheldinSeptember2022for1000MW.Becauseofalackofbidsmeetingcompetitionrequirements,theIEA.CCBY4.0.4.RENEWABLEENERGY75ENERGYSYSTEMTRANSFORMATIONSeptemberauctionawardedsupporttoonly538MWofprojects(372MWofsolarPVand166MWofwind).TheaveragesolarPVbidwas47.98EUR/MWh,andtheaveragewindbidwas57.66EUR/MWh.PPC(Greece’slargestutility)wonthelargestshareofsupportwith250MW(allsolarPV)(Tsagas,2022a).Theotherauctionsplannedfor2022includedonefor600MW(jointwindandPV),onefor100MW(smallPVupto1MW)anda200MWpilotauction(windandsolarPVwithenergystorage).Thegovernmenthasannouncedthatfrom2023to2025,itwillholdauctionsawardingcontractsfordifferencesforthefollowingcategories:1)windprojectsfrom60kWto6MW;2)windprojectsover6MW;3)solarPVprojectsupto1MW;4)solarPVprojectsover1MW;5)windprojectsover10MWwithstorageofatleast20%ofthemaximumhourlygeneration;and6)solarPVprojectsover10MWwithstorageofatleast20%ofthemaximumhourlyproducedenergy.Startingin2023,therearefurtherlimitsonthetechnologiesandprojectsthatcanreceivesupportoutsidetheauctionsystem.Greeceisalsoseeinganotableincreaseinrenewableenergyprojectsbeingdevelopedwithnosubsidiesbutthroughpowerpurchaseagreementsandotherlong-termcontracts.PPChasopenedseveralbidsforpowerpurchaseagreement-basedsolarPVprojects,includingabidopenedinMay2022fora191MWsolarPVprojectandabidopenedinAugust2022fora550MWsolarPVproject.ThesearepartofPPC’splanstodeploy1.5GWofrenewablesby2023and5GWby2027(BalkanGreenEnergyNews,2022).LicensingandpermittingRenewableenergyprojectsinGreecefacesignificantbarriersinthetimelyprocessingoflicencesandpermits.Greeceistakingavarietyofstepstoreducethesebarriers.AfirstroundoflegislativechangestosimplifyandacceleratethelicensingandpermittingprocesswaspassedinMay2020.Thislawabolishedthegenerationlicence,whichrequiredalengthyapplicationprocess,replacingitwiththegenerationcertificate,whichrequiressignificantlylessdocumentationandisappliedtoviaanonlineplatformrunbytheRAE,whichmustgrantthecertificatewithin20daysiftheapplicationmeetsalltherequirements.Thecertificateisvalidfor25yearsandmayberenewed(MStRLaw,2020).Inaddition,thelawshortenedthetimeperiodfortheRAEtoissueenvironmentallicences,extendedthedurationofenvironmentlicencevalidityfrom10to15years,reducedland-userestrictionsforrenewableprojectsandcreatedshorterdeadlinesforseveralmilestonesinthelicensingprocess(GlobalLegalInsights,2023).Renewableprojectdevelopersalsofacedproblemssecuringbidsintherenewableenergyauctions,asonlyalimitednumberofbidsareaccepted,andnumerousbidswerebeingplacedbyspeculatorsforresaletoprojectdevelopers.InNovember2021,thecostrequiredtoparticipateintherenewableenergyauctionsystemwasincreasedto35000EUR/MWtopreventthehoardingofapplicationsbyspeculators.AsecondroundoflegislationpassedinJuly2022aimstoreducethedurationofthelicensingprocessto14monthsandfacilitatethegrantingoflicencesto12GWofrenewableenergyprojectsby2030(EY,2022).Thelaweliminatestherequirementtoapplyforaprovisionalgridconnectionoffer;instead,projectsapplydirectlyforafinalgridconnectionofferwhileatthesametimesubmittingarequiredgridconnectionbond.TheTSO/DSOmustapproveorrejecttheapplicationforthegirdconnectionofferwithin2months.Theprojectdeveloperthenhas2monthstoaccepttheofferorsubmitarequestforalternativeoptionstoconnecttothegrid.IEA.CCBY4.0.4.RENEWABLEENERGY76Onceaprojectdeveloperacceptsagridconnectionoffer,theymustapplyforaninstallationlicencewithincertaintimelimits:12monthsforsolarPVandonshorewind;18monthsforotherrenewables,co-generationorenergystorage;and24monthsforprojectsrequiringanunderseaconnectionoftwoormorenon-interconnectedislands.Thetimelimitcanbeextendedby12monthsiftheprojectdeveloperpaysamonthlyfeeof1000EUR/MW.TheTSO/DSOmustissueaninstallationlicencetoqualifyingprojectswithin20daysfromthedateoftheapplicationorthesubmissionofanyrequiredclarifications.Theinstallationlicenceisvalidforthreeyearsbutcanbeextendedbyanadditional12monthsforamonthlypaymentof1000EUR/MWh.Onceaprojecthasaninstallationlicence,itcansignaconnectionagreementwiththeTSO/DSO.SigningtheconnectionagreementrequirespayingtheTSO/DSOthecostofanyrequiredgridupgradesuptoamaximumofEUR250000.Underthelaw,theconnectionagreementallowstheTSO/DSOtocurtailupto5%oftheannualgenerationoftheprojectwithnocompensationtosupporttheefficientoperationofthesystemorconnectionofadditionalrenewableprojects.Forcurtailmentover5%,theTSO/DSOmustprovidecompensation.Oncearenewableprojecthasbeencompletedandconnectedtothegrid,theTSO/DSOhas20daystosendateamtotheprojectsiteforafinalinspectionand30daystoissueanoperatingpermitthatallowstheprojecttostartdeliveringelectricitytothegrid.Theoperationpermitisvalidfor20years,withthepossibilityforrenewalforanadditional20years.ThelawrequiresthecreationofaunifiedInformationSystemfortheLicensingofRenewableEnergySourcesProjects(“PSAPE”)tobeoperatedbytheOne-StopServiceoftheMoEE.ThePSAPEservesasasingleonlineplatformfortheentirelicensingandpermittingprocessandconnectstheinformationsystemsofrelevantlicensingauthorities.GridconnectionsRenewableenergyprojectsarealsofacingnotabledelaysinbeingconnectedtothegridbecauseofalackofgridcapacity.In2020,913MWofnewsolarPVprojectswereinstalled,butbytheendof2020,only459MWoftheseprojectswereconnectedtothegrid(Tsagas,2021).Thesituationwassimilarin2021,with792MWofnewPVcapacityinstalledbutonly422MWofconnectedtothegridattheendoftheyear(Tsagas,2022b).Greeceistryingtodecreasegridcongestionandacceleratetheconnectionofrenewableenergyprojects.TheTSOisplanningatleastEUR150millionininvestmentstoexpandtransmissionsystemcapacityby2027tosupportadditionalrenewablegeneration.TheDSOisplanningatleastEUR300millioninsimilarinvestments.TherecoveryandresilienceplanprovidesEUR100millioninfundingtoupgradetheelectricitynetworktoreducethewaitingtimeforgridconnectionsandimproveoverallgridperformance.TheJuly2022lawintendstodecreasegridcongestion,includingbyadjustingthecapacitymarginsincongestedareasandreleasinggridcapacityfromexistingplantsthatstopoperating.Underthelaw,theTSOmaystopacceptingnewgridconnectionapplicationsforuptosixmonthsinareaswherethegridnolongerhassufficientcapacityfornewconnections.TheTSOmustprovidepublicnoticeatleast90daysbeforeitstopsacceptingnewapplications.IEA.CCBY4.0.4.RENEWABLEENERGY77ENERGYSYSTEMTRANSFORMATIONThelawalsorequirestheDSOtostopacceptingapplicationsforgridconnectionoffersstarting1September2022forallsolarPVprojectsand1October2022forPVprojectslocatedinWesternMacedonia,exceptiftheapplicationconcernsnet-meteringorresidentialPVsystems.TheDSOisrequiredtopublishupdatesoftheavailablegridcapacityeverythreemonths.Ifanupdateshowsthatthereisalimitednumberofpendingapplicationsinaspecificarea,theDSOmuststartacceptingnewapplicationsforPVstationsandgrantgridconnectionoffersfortherelevantareaunderthelimitationssetoutbythelaw.Inaddition,theDSOwillcalculatetheavailableconnectioncapacityateachsubstation.Whereveradditionalmarginisidentified,itwillbemadeavailableforrenewableprojectsbasedonself-consumptionornetmeteringupto10kilowatts.Thelawalsoallowsrenewableenergyprojectdeveloperstoconstructprivateelectricitygrids(uptomediumvoltage)andtoconnectprojectsandconsumerstothesegridswithoutagridconnectionofferfromtheTSO/DSO.ThesegridsmustbeoperatedandmaintainedbytherenewableprojectdeveloperandmustberegisteredwiththeTSOandDSO(ZeposandYannopoulos,2022).SystemflexibilityGreeceistakingstepstoimprovegridflexibilitytosupportmoreefficientgridoperationsandintegratehighersharesofvariablePVandwind.Keymeasuresincludeaplantoprogressivelyroll-outsmartmeterstomostconsumersby2030,increasingsupportforenergystorageandincludingdemandsideresponse(DSR)inbalancingmarkets.Greecehaslimiteddeploymentofsmartmeters.However,theDSOhasaplanforallconsumerstohavedigitalsmartmetersby2030.Asof2021,13000smartmetershadbeendeployedatthemediumvoltageleveland70000atthelowvoltagelevel,mainlyforconsumerswithhighelectricitydemand.InJuly2022,theDSOannounceditwasworkingtofinaliseatenderprocesstoselectcompaniestodeployupto7.7millionsmartmeters,withplansforadditionaltendersasneededtocompletethesmartmeterroll-out.TheDSOestimatesthat100000smartmeterswillbeinstalledin2022,500000in2023,andbetween800000and1millioneachyearfrom2024to2030.Thefullsmartmeterroll-outisexpectedtocostaroundEUR1billion(seeChapter6).Historically,DSRhasplayedalimitedroleinGreece’selectricitysystem.From2016to2022,theTSOranauctionsforaninterruptibleloadservice,underwhichlargeconsumers(withatleast3MWofdemand)connectedtothehigh-andmedium-transmissionsystemcouldreceivefixedpaymentstoreducedemandinsituationswhenthemarketdidnotsupportsystembalancing.GreeceaimsforDSRtoplayamuchlargerroleinsupportingefficientgridoperationsandtheintegrationofvariablerenewablegeneration.InJuly2022,GreecelaunchedanewplatformsupportingDSRparticipationintheelectricitybalancingmarket(whichreplacedtheinterruptibleloadservicesystem).Theplatformallowstheparticipationofconsumersofalldemandlevels,withdistributedDSRpossiblethroughtheaggregationofatleast1MWofDSRcapacity(seeChapter6).TheplatformisalreadyencouragingincreasedDSRparticipation.AsofOctober2022,theRAEapprovedseverallicencesforcompaniestoprovideDSRinthebalancingmarket,includinglargeindustryconsumersPPC(1000MW),OptimusEnergy(350MW)andForena(500MW),andcompaniesthataggregateDSRfromnumeroussmallerconsumers,MYTILINEOS(500MW)andNRG(100MW).IEA.CCBY4.0.4.RENEWABLEENERGY78ElectricitystoragealreadyplaysanotableroleinGreece’selectricitysystemandmarket,andthereareplanstoincreaseelectricitystorgecapacity.AsofJune2022,Greecehadtwolarge-scalepumpedhydrostoragefacilitiesinoperation:Thissavros(0.38GW)andSfikia(0.33GW).Attheendof2021,theRAEhadissued181licencesforelectricitystorageprojects,withatotalcapacityof14.3GW,including14pumpedstorageprojectswithatotalcapacityof3GW.TheJuly2022lawsetsagoalforthedeploymentof3.5GWofenergystorage(excludinglargehydro)by2030,anotableincreasefromtheNECPtargetof1.4GWofstorageby2030.TherecoveryandresilienceplanincludesEUR0.5billiontosupportthedeploymentof1.4GWofelectricitystorage,includinganew0.68GWpumpedhydrostoragefacilityatAmfilochia.ProjectscombiningelectricitystoragewithwindorsolarPVarenoweligibleforsubsidiesthroughrenewableenergyauctions.TheJuly2022lawclarifiesandacceleratesthelicensingprocessforenergystorageprojects.Itcreatesclearlegalandregulatorydefinitionsforenergystorage,includingoptionsforstand-alonestorageandstorageincorporatedwithrenewablegeneration.Thelawexpandsthepotentialrevenuestreamsforstorageprojectsbygivingthemtherighttoparticipateintheintradayandbalancingmarkets(previously,storagewasonlyallowedtoparticipateintheday-aheadmarket).ThelawallowstheTSOtodeployandoperateenergystoragewiththeapprovaloftheMoEE(inwhichcasethestorageassetscannotparticipateinthemarketbutonlysupportgridoperations)oriftheRAEdeterminesthatthereisarelevantneedthatcannotbemetbythirdparties(seeChapter6).Greecehascreatedadedicatedaidschemeforenergystorageprojects,approvedbytheEuropeanCommissioninSeptember2022.IthasanestimatedbudgetofEUR341milliontosupporttheconstructionandoperationofaround0.9GWofelectricitystorageconnectedtothehigh-voltagegrid.ThemeasurewillbepartlyfundedbytheEuropeanUnion’sRecoveryandResilienceFacility.Theschemewillawardaidthroughacompetitiveauction,whichmusttakeplacebeforetheendof2023.Selectedprojectsshouldbecompletedbytheendof2025.Theaidwillbegrantedasaninvestmentgrantpaidduringtheconstructionphaseandtenyearsofannualsupportpaidduringprojectoperations.Theannualsupportwillbebasedonsubmittedbidsbutcanbereducediftheprojecthasexcessmarketrevenues(EC,2022b).OffshorewindandPVThegovernmentwantsoffshorewindtoplayasignificantroleinGreece’senergytransition(Greececurrentlydoesnothaveanyoffshorewindgeneration).Therecoveryandresilienceplanincludesfundingtodeveloptheoffshorewindplanningprocessandregulatoryframework.InAugust2022,theGreekparliamentapprovedthecountry’sfirstOffshoreWindLaw,whichaimsfor2GWofoffshorewindcapacityby2030.Thelawappointsthestate-ownedexplorationcompanyHHRMtoleadsiteinvestigation,allocationandconcessiondevelopmentandmakestheelectricityTSOresponsibleforprovidingtheonshoreandoffshoregridinfrastructuretosupportoffshorewinddeployment(WindEurope,2022).Underthelaw,theMoEEwilladoptaseriesofdecreestofullydefineoffshoredeploymentlocationsandtheprocessforselectingprojectsandawardingfunding.Aspartofthiswork,theMoEEwillcommissionenvironmentalimpactassessmentstodefinebroadoffshorewinddevelopmentareasandwillthenassigninstallationzoneswithintheseareas.Thesezoneswillbedefinedinconsultationwithkeystakeholders,includingthemilitary,fisheries,thetourismindustryandthepublic.IEA.CCBY4.0.4.RENEWABLEENERGY79ENERGYSYSTEMTRANSFORMATIONProjectdeveloperswillbeabletoapplyfornon-exclusiveresearchpermitsforthebroaderoffshorewinddevelopmentareastoundertakeresourceassessmentsandseabedsurveys.Thefirstroundofapplicationsforthesepermitsshouldtakeplacefrom2023to2024.Onlydeveloperswitharesearchpermitwillbeeligibletobidinoffshorewindauctions,withthefirstauctionspotentiallytakingplacein2025or2026.ThegovernmentaimsfortheauctionstoawardaslidingFIP.Selectedbidderswillacquireanexclusiverighttoconstructandoperateanoffshorewindfarmintheauctionedzone.GiventhatmostGreekwatershavedepthsgreaterthan50metres,muchoftheoffshorewinddevelopmentwillneedtousefloatingwindturbines.ThegovernmentisworkingtosecurefinancialsupportforoffshorewindprojectsandhasindicatedthatfundscouldcomefromtheREPowerEU(Energypress,2022b).TheJuly2022lawalsocallsforthedevelopmentof10floatingoffshoresolarPVpilotprojectswithacapacityof0.5-1MWperproject.Thesepilotprojectsareexemptfrommostlicensingandpermittingrequirementsandwillbeeligibleforoperationsubsidies.Small-scalerenewablesandenergycommunitiesSince2014,small-scalerenewableprojects(generallythosewithacapacityoflessthan0.5MW)havebeeneligiblefornetmetering.Avirtualnetmeteringschemewasintroducedin2016andupdatedin2017;itallowsfornetmeteringofrenewablegenerationthattakesplaceatadifferentsitethantheelectricityconsumption(RESLegal,2019c).AsofOctober2022,thereweremorethan5000netmeteringandvirtualnetmeteringinstallationsintheinterconnectedelectricitysystemwithatotalcapacityof170MW.Greeceaimstoincreasethedeploymentofrenewableenergythroughenergycommunities.In2018,Greecepassedlegislationdefininganenergycommunityasaco-operativethatpromotesasolidarity-basedeconomyandaddressesenergypovertythroughenergyself-sufficiencyandimprovingenergyefficiency.Energycommunitiesmustundertakecertainactivities,withoptionsincludingenergyprovisionservices,energymanagementandstorage,andtheuseofEVs.In2021,400energycommunitieshadbeenestablishedinGreece.Energycommunitieswereinitiallygivensomeadvantagesinsecuringsubsidiesforrenewableenergyprojects.Startingin2022,energycommunitieshavetocompeteforsupportlikeanyothermarketplayer(REScoop.eu,2021).RenewablesinheatingandcoolingFrom2010to2021,renewableheatingandcoolingincreasedfrom50PJto67.5PJandfrom19%to31.1%oftotalheatingandcoolingdemand(Figure4.5).Thisgrowthwasdrivenmainlybyincreaseduseofheatpumps(3PJto18.3PJ)andsomeincreaseinsolarthermal(10PJto12.7PJ)andbiogas(0.1PJto1.4PJ).Theuseofsolidbiomassforheatingandcoolingdeclinedfrom45PJin2011to34.7PJin2021.However,solidbiomassstillaccountsforthelargestshareofrenewablesinheatingandcooling(51.4%in2021),followedbyheatpumps(27.1%),solarthermal(18.8%),andbiogas(2.1%).GreecehasthehighestuseofsolarthermalheatingintheIEA,asitcovered5%ofdemandinbuildings,comparedtotheIEAaverageof0.6%.IEA.CCBY4.0.4.RENEWABLEENERGY80Figure4.5RenewableenergyinheatingandcoolinginGreece,2005-2021IEA.CCBY4.0.Source:EC(2022a).Greecehasseveralsupportmeasuresthatencouragethedeploymentofrenewableheatingandcoolingsystems.Since2011,newbuildingshavebeenrequiredtocover60%ofannualhotwaterdemandusingsolarthermal.Therequirementcanalsobemetbyusinganotherrenewablesource,districtheating,co-generationorheatpumpsthatmeetminimumperformancerequirements.Greeceprovidesanincometaxdeductionforinvestmentsinheatingandcoolingsystemsusingsolarthermal,biogas,biomass,geothermalandheatpumps(air,waterandground-source).Thedeductionis10%ofqualifyingprojectcostsuptoamaximumofEUR3000(RESLegal,2019d).Therearealsoinvestmentsubsidiesandtaxcreditsforrenewableheatingandcoolingprojectsbuiltbyprivateenterprisesorsocialco-operatives.Asstatedabove,underthe2016DevelopmentLaw,subsidiesandtaxbreaksareavailableforinvestmentsinsolarthermal,biogas,biomass,geothermalandheatpumps(air,waterandground-source).ThereareminimalprojectcostsrangingfromEUR50000forsocialco-operativestoEUR500000forlargeenterprises.Subsidiescancover30-65%ofrelevantinvestmentcostsdependingonthesizeoftheenterpriseinvestingandthetypeofproject.TheMinistryofEconomyandDevelopmentfundstheinvestmentsubsidiesandtaxrelief(RESLegal,2017).Greecehasmeasuressupportingbuildingrenovationsthatentailbothenergyefficiencyandthedeploymentofrenewableheatingandcoolingsystems(seeChapter3).Thegovernmentalsoaimstoincreasetheshareofrenewableheatingbyinjectingbiomethaneand/orhydrogenproducedfromrenewableenergyintothegasgrid.Therearenospecifictargetsorsupportmeasures,andthegovernmenthasindicatedaneedtodevelopvariousstandardsandregulationstoallowgridinjectionofrenewablegases.Thegovernmenthasexpressedinterestindevelopingasystemofguaranteesoforiginforbiomethaneandhydrogen.RenewablesintransportFrom2011to2021,renewablesintransportincreasedmoderately,from5.3PJto8.6PJandfromaround1%to5.3%oftotaltransportenergydemand(Figure4.6).Biodieselaccountedforthehighestshareofrenewablesintransport(64%in2021),followedbybiogasoline(33%)andrenewableelectricity(2%),mainlyforrail.0%5%10%15%20%25%30%35%01020304050607080PJLiquidbiofuelsGeothermalBiogasSolarthermalHeatpumpsSolidbiomassRenewableshare(rightaxis)IEA.CCBY4.0.4.RENEWABLEENERGY81ENERGYSYSTEMTRANSFORMATIONFigure4.6RenewableenergyintransportinGreece,2005-2020IEA.CCBY4.0.Sources:EC(2022a);IEA(2022).Greece’smainpolicysupportingrenewablesintransportisabiofuelblendingmandate,whichrequiresallproducersanddistributorsofroadtransportfuelstohaveacertainshareofbiofuelsintheirannualfuelsales.Therequiredsharesaresetannuallybygovernmentdecision.In2017,theblendingshareofbiodieselindiesel(byvolume)wasincreasedfrom5.75%to7%andremainedatthislevelthrough2022.In2019,themandatewasextendedtorequirea1%shareofbioethanolorbioethersingasoline(byenergycontent),withtheshareincreasingto3.3%in2020andnochangethrough2022.Thereisalsoanoverallrequirementthat0.2%ofblendedbiofuelsmeettheEUstandardforadvancedbiofuels.Thegovernmentisassessingapotentialincreaseintherequiredsharesunderthebiofuelmandate.From2010to2020,domesticbiodieselproductionincreasedfrom4.7PJto6.6PJ,withannualproductionoftenexceedingthelevelrequiredunderthebiofuelblendingmandate.Thereisnodomesticproductionofethanolasatransportbiofuel.GreecealsoaimstoincreasetheuseofrenewableelectricityintransportbysupportingEVs.TheNECPsetstargetsforEVstoaccountforatleast8.7%ofnewpassengercarregistrationsby2024and30%by2030(comparedto6.5%in2021).GreecehasarangeofsupportmeasurestoincreaseEVadoption,includingdirectsubsidiesandreducedtaxesandregistrationfees(seeChapter3).However,estimatesonthelevelofrenewablesintransportfromtheNECPshowthatthegovernmentexpectsbiofuelstoremainthekeyoptionformeeting2030targetsforrenewablesintransport(Table4.1).Table4.1RenewableenergyintransportbytypeinGreece,2020-2030Renewablesintransport(ktoe)20202022202520272030Biofuels9.510.011.812.015.5Renewableelectricity0.20.51.11.93.9Total9.810.413.013.919.5Note:ktoe=thousandtonnesofoilequivalent.0%1%2%3%4%5%6%0123456789102005200620072008200920102011201220132014201520162017201820192020PJRenewableelectricityBiogasolineBiodieselRenewableshare(rightaxis)IEA.CCBY4.0.4.RENEWABLEENERGY82AssessmentRenewablesToachievethe2030renewableenergytargetsandplacethecountryonapathtonetzeroemissions,Greece’srenewableenergypolicyplacesastrongfocusonincreasingelectricitygenerationfromrenewables,mainlywindandsolarPV,andelectrificationofenergydemand.Thispathwayrequiresincreasedeffortsingridplanningandoperationtoensurethattheelectricitysystemcansupportastrongincreaseinbothcentralisedanddistributedrenewablegenerationanddeliverthatgenerationtoanincreasingdiversityofdemandsources(EVs,heatpumps,high-demandindustrialloads,etc.).Italsorequiresco-ordinationacrossthegovernmenttoensurethatpoliciessupportingthedeploymentofrenewablesarewellalignedwiththosesupportingelectrificationinavarietyofenduses.Takingfulladvantageofthispathwaywillalsorequireacompletedroll-outofsmartmeters,digitalisationofgridinfrastructure,increaseddemandsideresponseandcontinuingdevelopmentofelectricitymarkets.RenewablesinelectricityIn2021,Greecemadesignificantupdatestoitsrenewablesupportsystemtoacceleratethepaceofrenewablesdeploymentandincreasetheshareofsubsidiesawardedthroughcompetitiveauctions.Theupdatedsystemaimstosupportthedeploymentof4.2GWofsolarPVandwindfrom2022to2025.Greeceplannedfiveauctionsin2022toawardsupportto2.1GWofprojects.Thegovernmentshouldusetheresultsoftheseauctionstoupdatethestructureoftheauctionsasneededtoensureasufficientnumberofhigh-qualitybids.Aslongasgridcongestionremainsabarrier,thegovernmentshouldconsiderorganisingauctionsonlyforlocationswheregridcapacityisavailableforprojectconnections.TheSpecialAccountforRenewableEnergySourcesisthemainfundingsourceforrenewableenergysubsidies.Severalrecentpolicyandmarketchangeshavenotablyimpactedtherevenuegoingtotheaccount.InJune2022,reformswereadoptedtoensurethefinancialsustainabilityoftheaccount,creatingsub-accountsfornewrenewableenergyprojectsandenergystorageprojects.Thegovernmentshouldensurethattheaccountissufficientlyfundedinatransparentandsustainablemannertomaintaininvestorconfidence.RenewableenergyprojectsinGreecefacesignificantbarrierstolicensing,permittingandconnectingtothegrid.LegislativechangestosimplifyandacceleratetheseprocesseswerepassedinMay2020andJuly2022,andaimtoreducethetimefromstarttogridconnectionfromfiveyearstotwoyears,themaximumlimitallowedunderEUregulations.Thegovernmentshouldcloselymonitortheimpactsoftherecentreformstoensuretheyleadtofasterprojectdeploymentinatransparentmanner,astherenewableindustryhasindicatedthatlargecomplexfossilprojectshavebeenawardedlicencesinmuchshortertimeframesthanrenewableprojects.Therecentreformsdonotaddressenvironmentallicensing,whichcanleadtomulti-yeardelaysinstartingprojects.Environmentalpermittingcanrequirenumerousroundsofreviewsandauthorisationfrommultipleauthorities,andbythetimetheawardingofthelicenceisclose,theprojectisoutdatedandneedstostartalloveragainwithupdatedtechnology.IEA.CCBY4.0.4.RENEWABLEENERGY83ENERGYSYSTEMTRANSFORMATIONConstraintsongridcapacityalsorepresentamajorbarriertodeployingrenewables.KeymeasurestoreducethisbarrierincludelargeinvestmentsbytheTSOandDSOtoexpandcapacityandimprovetheperformanceofthegrid,aDSOplantoprogressivelyroll-outsmartmeterstomostconsumersby2030,regulatorychangesandfinancialsupportforincreasingenergystorage,andinclusionofdemandsideresponseinthebalancingmarket.ThegovernmentshouldconsultwiththeTSOandDSOtoensurethattheupcominggridinvestmentstargetthemostpressingbottlenecksintheelectricitysystemandallowprojectswinningauctionsupporttostartconstructionquickly.Severalstakeholdershaveindicatedthatthemedium-voltagegridrepresentsthemainbarriertoanear-termincreaseinrenewablescapacity.TheplannedlargeincreaseinrenewablesgenerationandDSRatlowandmediumvoltagecallformuchstrongerco-ordinationongridplanningandoperationsbetweentheTSOandDSO.Curtailmentofrenewablegenerationisnotanissueinthecurrentsystem.However,alreadyapprovedandplannedprojectscouldleadtoamassiveincreaseinthesharesofwindandsolarPVgenerationintheneartermandcouldnecessitatecurtailment,especiallyiftherearedelaysindevelopinggridinfrastructure.Stepsshouldbetakentolimitinefficientcurtailment.TheRAEshouldupdatethenetworkcodeandtherulesforupcomingauctionstorequirenewrenewableprojectstoincluderemotemonitoringandcontrolfeatures.Acceleratingthedeploymentofenergystoragewouldalsohelptoreducecurtailment.Inaddition,amoreambitiousschedulefortheroll-outofsmartmeterswouldassistwiththeaccelerateddeploymentofdistributedrenewablesanddistributedDSR,helpingtolimitthecostofgridreinforcement.Critically,thegovernmentshouldidentifyprioritylocationsforthedeploymentofrenewablegenerationprojectsthatbalancethequalityofrenewableresources,costofgridexpansion,environmentalandculturalimpacts,competinglandusesandotherkeyissues.Thisprocessshouldinvolvestakeholdersearlyintheprocess.Impactedcommunitiesshouldbenefitfromnearbydeploymentthrough,forinstance,taxrevenues,profitsharing,investmentopportunitiesorothermeans.TheTSOandDSOshouldbeinvolvedsothatprojectsdevelopedintheseareascanbeguaranteedtimelygridconnections.Thegovernmentshouldundertakeinitialenvironmentalimpactassessmentsforprioritylocationstosupporteffectiveandtimelyenvironmentallicensing.ThegovernmentwantsoffshorewindtoplayasignificantroleinGreece’senergytransition.InAugust2022,theGreekparliamentapprovedthecountry’sfirstOffshoreWindLaw,whichaimsfor2GWofoffshorewindcapacityby2030.ThegovernmentisworkingtosecurefinancialsupportforoffshorewindprojectsfromEUfunds.Aswithonshorerenewables,thegovernmentshouldensurethatoffshorewindisdevelopedthroughaprocessthatbalancesthemanyusesofGreece’smarineareasandinvolvesallstakeholdersearlyintheprocess.Greeceisalsoimplementingmajorelectricitymarketreforms,whichincludesupportforrenewablegenerationandenergystoragebyallowingthemtoparticipateinallsegmentsoftheelectricitymarket.Thisisanimportantsteptoincreasemarketliquidity,asmostnewgenerationcapacityisexpectedtocomefromrenewables.Increasingtheparticipationofprosumersandenergycommunitiesisalsocriticaltoensuringthedeploymentofdistributedrenewablesonthescaledesiredbythegovernment.Thiswillrequirecompletingthesmartmeterroll-out,finalisingrulesondataIEA.CCBY4.0.4.RENEWABLEENERGY84accessandsecurity,andfurtherdevelopingthemarketstructure(e.g.dynamicpricing)toensurethatconsumersaredriventoinvestindistributedrenewables.Inthenearterm,thegovernmentshouldrevisetheexistingnetmeteringschemesothatconsumersareincentivisedtoinvestinrenewablesplusstoragesystemstoallowforanexpansionofrenewablegenerationwithamuchlowerimpactonthedistributiongrids.Toshieldconsumersfromhighelectricitycosts,thegovernmentimposedcapsonwholesaleelectricitypricesinJuly2022,includingacapof85EUR/MWhforrenewablegeneration(seeChapter6).Thereisastrongrationalebehindmarketinterventionstoprotectvulnerablecustomersfromhighenergyprices.However,theirimpactmustbemonitoredforpotentialharmtorenewabledevelopers’capacitytoinvestinnewprojects.CurrentandproposedmarketinterventionsinEuropecouldcreateuncertaintiesforrenewableenergyinvestmentsiftheyarenotwelldesignedorco-ordinatedacrosscountries.Moreover,theongoingenergycrisishasalsosparkeddiscussionsintheEuropeanUniononpossiblechangestoelectricitymarketdesign.Anyproposalsmustbecarefullyandtransparentlyprepared,withclearvisibilityontimingandinvolveallrelevantstakeholderstoavoidunintendeduncertaintyamonginvestors.RenewablesinheatingandcoolingGreecehasseveralsupportmeasuresthatencouragethedeploymentofrenewableheatingandcoolingsystems.Since2011,newbuildingsarerequiredtocover60%ofannualhotwaterdemandusingsolarthermal,otherrenewablesources,districtheatingorheatpumps.Thereisa10%incometaxdeduction,uptoEUR3000,forinvestmentsinheatingandcoolingsystemsusingsolarthermal,biogas,biomass,geothermalorheatpumps.Therearealsoinvestmentsubsidiesandtaxcreditsforrenewableheatingandcoolingprojectsbuiltbyprivateenterprisesorsocialco-operatives.Greeceisagloballeaderinsolarthermal,whichcovered5%ofbuildingenergydemandin2020,comparedtotheIEAaverageofjust0.6%.However,theshareofdemandcoveredbysolarthermalhasincreasedonlymarginallyinrecentyears.ThegovernmentshouldupdatepolicysupportforsolarthermalandincreaseresearchandinnovationfundingforsolarthermalcollectorscombinedwiththermalstoragetoallowthistechnologytoplayagreaterroleinmeetingheatingdemandandensureGreecemaintainsacompetitiveadvantageandexportpotentialofthisdomesticindustry.Greeceshouldensurethatenergyefficiencyprogrammesforbuildingssupportdeeprenovationsthatcombinethermalinsulationwithrenewableheatingandcoolingsystems.Thishelpstoensurethatheatingandcoolingsystemsareproperlysizedandcandelivercost-effectivereductionsinemissionsandenergybills.PreferenceshouldbegiventosystemsthatcombinesolarPVandheatpumpstominimisetheimpactonthegrid.Apriorityshouldbeplacedonbuildingswiththeworstenergyefficiencyandthoseoccupiedbyvulnerableconsumers.Greeceshouldconsiderintroducingrulesensuringthatheatpumpandairconditioningsystemsandotherelectricheatingandcoolingsystemsallowforremotecontrol.ThiswillensurethattheseassetscansupportdistributedDSRinthefuturewhensmartmetersanddigitalisationaremoredevelopedandwouldgreatlyhelptoincreasetheroleofdistributedDSRinsupportingefficientgridoperationandintegrationofrenewableenergy.IEA.CCBY4.0.4.RENEWABLEENERGY85ENERGYSYSTEMTRANSFORMATIONRenewablesintransportGreece’smainpolicysupportingrenewablesintransportisabiofuelblendingmandate.Thegovernmentsetsrequiredsharesannually,whichwere7%fordieseland3.3%forgasolinein2022.Thereisalsoanoverallrequirementthat0.2%ofblendedbiofuelsmeettheEUstandardforadvancedbiofuels.Thegovernmentisassessingpotentialincreasesintherequiredsharesunderthebiofuelmandate.GreecealsoaimstoincreasetheuseofrenewableelectricityintransportbysupportingtheadoptionofEVswithdirectsubsidies,reducedtaxesandregistrationfees,andinvestmentinEVcharginginfrastructure.TheNECPhastargetsforEVstoaccountforatleast10.1%ofnewpassengercarregistrationsby2024and30%by2030(comparedto7.9%in2022).Thereisalsoafocusonelectrifyinghigh-usevehicles,suchastaxisandpublicbuses.ThegovernmentneedstocloselymonitorthedevelopmentofGreece’sEVmarketandbereadytoadjustpoliciestoensuregrowthcontinues.Closeco-ordinationisneededbetweenthegovernment,theelectricityTSOandtheDSOtoensurethatgriddevelopmentplanssupporttheincreasedEVcharginginfrastructureneededtoensureEVuptake.PilotprojectsshouldberuntodeterminethebestsolutionsfortheGreeksystem.Greecefacesalargechallengeinmeetingthe2030targetof19%renewablesintransport.Thegovernmentneedstodeveloppathwaystothe2030targetthatclearlyidentifytheneededlevelofbiofuels,renewablefuels,EVs,charginginfrastructure,gridinvestmentsandrenewablegeneration.Thereshouldalsobeannualmilestonesforthesharesofrenewablesintransport,andsupportmechanismsshouldberegularlyevaluatedandupdatedasneededtoensuretherapidgrowthrequiredtomeetthe2030target.Inaddition,theoldageofthecarfleet(average16.6years)resultsinhighemissionsandalsolimitstheuseofbiogasoline,asmanyoldercarscannotrunonablendwithmorethan5%ethanol.Measuresneedtobetakentopermanentlyremoveoldercarsfromtheroadstoimproveefficiency,reduceemissionsandsupporthighersharesofbioethanol.Thegovernmentshouldconsideracash-for-clunkersprogrammethatscrapsoldercarsandprovidessubsidiesforpurchasingnewefficientvehicles,includingEVs.RecommendationsThegovernmentofGreeceshould:Consultwiththetransmissionanddistributionsystemoperatorstoensurethattheupcominggridinvestmentsfocusonthemostpressingbottlenecksintheelectricitysystemtoensuretimelyconnectionofprojectswithgridconnectionslicencesandtheatleast4GWofnewprojectsexpectedby2025.Workwithcommunitiesandelectricitysectorstakeholderstodeveloppriorityareasforrenewableenergydeploymenttoensurequicklicensingandgridconnectionswhilebalancingresourcequality,gridcosts,environmentalandculturalissues,andlanduses.QuicklyimplementthePSAPEone-stopshopandmonitoritsperformancetoensureitefficientlysupportsalllicensingprocesses.IEA.CCBY4.0.4.RENEWABLEENERGY86Co-ordinatemeasuresdrivingthedeploymentofrenewablegenerationandelectrificationofendusesandensurecoherencewiththeexpansionoftheelectricitysystem.ReferencesAposporis,H.(2021),GreekEUR2.27billionaidschemeforrenewablesapprovedbyEU,BalkanGreenEnergyNews,https://balkangreenenergynews.com/greek-eur-2-27-billion-aid-scheme-for-renewables-approved-by-euBalkanGreenEnergyNews(2022),PPCRenewablesinvitesbidsforbuildingGreece’sbiggestsolarpowerplant,https://balkangreenenergynews.com/ppc-renewables-invites-bids-for-building-greeces-biggest-solar-power-plantEC(EuropeanCommission)(2022a),EnergyfromRenewableSources(database),https://ec.europa.eu/eurostat/databrowser/view/nrg_ind_ren/default/table?lang=en(accessedon15June2022)EC(2022b),Stateaid:CommissionapprovesGreekschemeunderRecoveryandResilienceFacilitytosupportdevelopmentofelectricitystoragefacilities(pressrelease),https://ec.europa.eu/commission/presscorner/detail/en/ip_22_4582Energypress(2022b),Offshorewindfarms(webpage),https://energypress.eu/tag/offshore-wind-farmsEY(2022),Law4951/2022–ModernizationoftheLicensingProcessforRESProjects&LicensingofEnergyStorage,https://www.ey.com/en_gr/tax/tax-alerts/law-4951-2022-modernization-of-the-licensing-process-for-res-projects-and-licensing-of-energy-storageGlobalLegalInsights(2023),EnergyLawsandRegulations2023–Greece,https://www.globallegalinsights.com/practice-areas/energy-laws-and-regulations/greeceIEA(InternationalEnergyAgency)(2022),WorldEnergyStatisticsandBalances(database),https://www.iea.org/data-and-statistics/data-product/world-energy-balances(accessedon15June2022)Liangou,C.(2022),InWesternMacedoniathephotovoltaic-giant,TheDaily,https://www.kathimerini.gr/economy/561797773/sti-d-makedonia-to-fotovoltaiko-gigasMStRLaw(2020),Greece–TheDynamicDevelopmentofRenewableEnergySources:NewLawNo.4685/2020,TheDynamicDevelopmentofRenewableEnergySources:NewLawNo.4685/2020,https://www.mstr-law.gr/en/greece-the-dynamic-development-of-renewable-energy-sources-new-law-no-4685-2020RAE(RegulatoryAuthorityforEnergy)(2022),SpecialAccountforRESandCHP,https://www.rae.gr/special-account-for-res-and-chp/?lang=enREScoop.eu(2021),Greekenergycommunitiesatrisk:Urgentactionneeded(webpage),https://www.rescoop.eu/news-and-events/press/development-of-energy-communities-in-greece-challenges-and-recommendationsRESLegal(2019a),SubsidiesI(DevelopmentLaw)(webpage),www.res-legal.eu/en/search-by-country/greece/single/s/res-e/t/promotion/aid/subsidies-development-law/lastp/139RESLegal(2019b),Taxregulationmechanism(DevelopmentLaw)(webpage),www.res-legal.eu/en/search-by-country/greece/single/s/res-e/t/promotion/aid/tax-regulation-mechanism-development-law/lastp/139/RESLegal(2019c),Net-metering(webpage),www.res-legal.eu/en/search-by-country/greece/single/s/res-e/t/promotion/aid/net-metering-law-no34682006-amended-by-law-no42032013/lastp/139RESLegal(2019d),TaxregulationmechanismI(LawNo.2238/1994ontheIncomeTax),www.res-legal.eu/search-by-country/greece/single/s/res-hc/t/promotion/aid/tax-regulation-IEA.CCBY4.0.4.RENEWABLEENERGY87ENERGYSYSTEMTRANSFORMATIONmechanism-i-law-no-22381994/lastp/139RESLegal(2017),Subsidies(DevelopmentLaw)(webpage),www.res-legal.eu/en/search-by-country/greece/single/s/res-hc/t/promotion/aid/subsidies-development-law-2/lastp/139Tsagas,I.(2022a),Greece’srenewablestenderawards372MWofPVataverageof€47.98/MWh,PVMagazine,https://www.pv-magazine.com/2022/09/13/greeces-renewables-tender-awards-372-mw-of-pv-at-average-of-e47-98-mwhTsagas,I.(2022b),Greeceinstalled792MWofPVin2021,PVMagazine,https://www.pv-magazine.com/2022/04/08/greece-installed-792-mw-of-pv-in-2021Tsagas,I.(2021),Greecedeveloped1GWofsolarin2020andhaslinkedCretetothemainlandgrid,PVMagazine,https://www.pv-magazine.com/2021/05/24/greece-deployed-913-mw-of-pv-in-2020WindEurope(2022),FirstGreekOffshoreWindLawseeks2GWby2030https://windeurope.org/newsroom/news/first-greek-offshore-wind-law-seeks-2-gw-by-2030ZeposandYannopoulos(2022),GreecepasseslongawaitedlawonRESlicensingregime,https://www.zeya.com/newsletters/greece-passes-long-awaited-law-res-licensing-regimeIEA.CCBY4.0.89ENERGYSYSTEMTRANSFORMATION5.EnergyresearchanddevelopmentKeydata(2020)Governmentenergyresearch,developmentanddeploymentbudget:EUR1.46billionEnergyR&DspendingasshareofGDP:1.7per1000GDPunits(IEAmedian:0.34)EnergyR&Dspendingpercapita(2020):2.8EUR/capita(IEAmedian:13.5EUR/capita)Medianof27IEAmembercountriesforwhich2020dataareavailable.OverviewThegovernmentseesenergyresearchanddevelopment(R&D)asimportanttoachieving2030climatetargetsandthelong-termnetzeroemissionsgoal.NospecialpolicydocumentorstrategyfocusesonenergyR&D,butenergyR&DisimportantintheoverallR&Dpolicysetting.TheNECPcallsforthegrossdomesticexpenditureonenergyR&Dtoreach0.13%ofGDPby2030,comparedto0.06%in2017.TheNECPprovidesanoverviewofresearchareasthegovernmentthinksaremostcriticaltoachievingenergyandclimategoals.Theseincludenewtechnologiesforrenewableelectricitygeneration;electricitytransmission,distributionandstorage;heatingandcooling;energyefficiencyinbuildingsandindustry;low-costsmartelectromobility;advancedbiofuels;andGHGreductionsthroughlow-emissiontechnologiesinindustry,includingCCUS.Governmentfunding(particularlyfromtheEuropeanUnion)andR&DconductedbypublicentitiesarethedominantdriversofGreece’sR&Dsystem.From2012to2020,publicspendingforR&DgrewfromEUR0.73billiontoEUR1.46billion,withenergy-andclimate-relatedR&DincreasingfromEUR0.12billiontoEUR0.47billion.AlthoughbusinessR&Dintensitymorethandoubledfrom2010to2019,Greece’sinnovationsystemisstillnotbusiness-driven.ThegovernmentlargelysetsthedirectionofR&Defforts,anduniversitiesandpublicresearchinstitutesarethemainentitiesperformingR&D.Greece’suniversitiesandpublicresearchinstitutesproducehigh-qualityresearch,reflectedinthehighandrisingcitationoftheirwork(aboveEUandOECDaveragessince2013).Greecehasalonghistoryofscientificexcellence,concentratedinasmallnumberofpublicinstitutions,butitunderperformscomparedtoitsEUpeersintermsofstartingnewenergytechnologycompaniesandexportingnewenergytechnologyproducts.TheEuropeanUnionconductsanannualEuropeanInnovationScoreboardtoassessmemberstates’researchandinnovationperformanceandtherelativestrengthsandweaknessesoftheirresearchandinnovationsystems.The2022scoreboardindicatedthatGreecehadoneofthegreatestimprovementsinperformanceoninnovationamongEUmemberstatessinceIEA.CCBY4.0.5.ENERGYRESEARCHANDDEVELOPMENT902015butitisstillrankedinthemoderateinnovatorsgroup,indicatingaperformancebelowtheEUaverage(EC,2022a).TheEUEco-innovationIndexmeasuresEUmemberstates’performanceonenvironmentalinnovation,withthe2021indexrankingGreeceasaverageforeco-innovation(EC,2022b).EnergyinnovationprioritiesandguidingdocumentsGovernmentprioritiesforenergyR&Dthrough2030aredefinedintheNECP(adoptedin2019)andtheNationalResearchandInnovationStrategyforSmartSpecialization2014-2020(adoptedin2015).TheNECPindicatesthatresearchandinnovationrelatedtoenergyefficiencyshouldfocusonnewbuildingmaterials,likeprefabricatedactiveroofandfacadeelements;cost-effective,intelligentandflexibleheatpumps;high-temperatureheatpumps;anddigitalisationandoperationaloptimisation.TheNECPcallsforindustry-relatedR&Dtobefocusedonenergy-efficientheatingandcooling,heatandrefrigerationrecoveryandintegrationofsystems.InrelationtorenewableenergyR&D,theNECPidentifiesthefollowingfocusareas:solarthermalenergyforelectricitygeneration,heatingandcooling,bioenergy(biosolids,bioliquids,biogasesandbioenergyintermediates),offshorewindandsmallwindturbines,solarPV,anddeepgeothermalenergy.TheNECPstatesthatthemainR&Dactionsforelectricitygridsaresmartgridservices;bettergridmonitoringandcontrol;demandresponseandcontroltooptimisegridperformanceandreduceoperationalcosts;solutionstoincreaseelectricitygenerationflexibility;reducingthecostofenergystorage;andmoreintegrationofdistributedrenewablegeneration.TheNECPstatesthattransportR&DshouldfocusonreducingthecostandimprovingtheperformanceofEVsandcharginginfrastructure,andondevelopingadvancedliquidandgaseousbiofuels.ItalsonotesR&Dgoalsfortheproductionofrenewablehydrogenfromelectrolysis,increasingtheefficiencyofLNGstoragefacilities,anddevelopingimprovedelectricityorthermalenergystoragetechnologies.TheNECPindicatesthatincreasedspendingonenergyR&Disneeded,butitdoesnotdefinebindingtargetsorspecifywhichfundingmechanismorR&DentitiesshoulddriveincreasedspendingonenergyR&Dinthepriorityareas.Greeceisfinalisingasmartspecialisationstrategyfor2021to2027whichprovidesaframeworkforinnovationinvestmentsthatleverageGreece’sR&Dstrengthsandcontributetoeconomicdevelopment.Thestrategywasdevelopedthroughanentrepreneurialdiscoveryprocesswithparticipationfromacademia,industry,publicauthoritiesandcivilsocietytoidentifythemostpromisinginnovationactivitiesandcorrespondingtechnologicalneeds.Basedonthisprocess,thestrategydefineseightcriticalresearchareasandrelatedpolicytools:1)agricultureandfood;2)healthandbiosciences;3)informationandcommunicationstechnology;4)energy;5)environmentandsustainabledevelopment;6)transportandlogistics;7)materialsandconstruction;and8)tourism,cultureandcreativeindustries(EC,2020).Greecehasahybridsmartspecialisationstrategy,withacentrallyadministerednationalstrategy(overseenbytheGeneralSecretariatforResearchandTechnology)and13regionalstrategies(overseenbyregionalauthoritiesandco-ordinatedbytheMinistryofDevelopment).AsofFebruary2022,8ofthe13regionshadidentifiedsustainableenergyasamainsectorthatcandrivethedesiredtransformationofthelocaleconomy.IEA.CCBY4.0.5.ENERGYRESEARCHANDDEVELOPMENT91ENERGYSYSTEMTRANSFORMATIONKeyactorsintheenergytechnologyinnovationecosystemTheoveralldirectionoftheenergyinnovationecosystemisdrivenmainlybythenationalgovernment,whichisthesourceofmostenergyR&Dfunding(primarilyfromEUsources),andbyGreece’suniversitiesandpublicresearchinstitutes,whicharethemainentitiesperformingenergyR&DandwhichprovideguidancetothegovernmentonenergyR&Dpolicy.However,morerecently,theprivatesectorhasadoptedahigherprofilerolethroughincreasedspendingonenergyR&Dandmoreco-operationwithuniversitiesandpublicresearchinstitutes.TheNationalCouncilforResearch,TechnologyandInnovationisthesupremeadvisorybodyfornationalpolicyonresearch,technologyandinnovation.ThecouncilisappointedbyandreportstotheMinisterofEducation,ResearchandReligiousAffairs.Thecouncil’sSecretariatisprovidedbytheGeneralSecretariatforResearchandInnovation(GSRI)(Esetek,2022).TheGSRIisthemaingovernmentbodyresponsiblefordesigningandimplementingR&Dpolicy(includingforenergyR&D).ItrunsthemainpublicR&Dfundingprogramme(acompetitivetenderprocess),supervisesandfundsGreece’smainresearchandtechnologicalcentres,andisauthorisedtoestablishnewinstitutesandtechnologicalcentres.ItpromotesthetransferofadvancedtechnologiesandresearchfindingstotheprivatesectorandcontributestoincreasingGreece’sR&Dhumancapacity.TheGSRIsupportsGreekresearchentitiesinsecuringEUfundingandpromotesR&Dco-operationwithothercountriesandinternationalorganisations(GSRI,2022).TheHellenicFoundationforResearch&Innovation,establishedin2016,isanon-profitentitythatfundsR&Dprogrammesandscholarships.BeneficiariescanbeGreekuniversities,researchcentresortechnologicalinstitutes.TheHellenicFoundationforResearch&Innovation’sbudgetfor2016to2020wasEUR240million,providedbytheEuropeanInvestmentBank(EUR180million)andtheGreekPublicInvestmentsProgram(EUR60million).ThefoundationisfinanciallyindependentbutsupervisedbytheMinistryofEducation,ResearchandReligiousAffairs.TheHellenicFoundationforResearch&Innovation’sleadershipisappointedbyGreece’sacademicandresearchcommunityand,incontrasttotheGSRI,thefoundationusesabottom-upapproachtodefinefundingpriorities(HFRI,2022).Resourcepush3PublicspendingonR&DFrom2012to2020,GreecenotablyincreasedpublicspendingonoverallR&D,whichgrewfromEUR0.73billiontoEUR1.46billion,withenergy-andclimate-relatedR&D(industry,3ThisandthefollowingsectionsarestructuredaccordingtotheIEAframeworkforenergyinnovationpolicies.Technologyinnovationprocessesarecomplexanddecisionmakersmustpayattentiontoavarietyofelements.TheIEAgroupstheseelementsintofourcorefunctions:A)resourcepush;B)knowledgemanagement;C)marketpull;andD)socio-politicalsupport.Successfulenergyinnovationecosystemshaveeffectivepoliciesineachofthefourareas.Insomecases,thepoliciesmightoperateatdifferentlevels,suchaslocal,nationalormunicipal.See:https://www.iea.org/reports/tracking-clean-energy-innovationIEA.CCBY4.0.5.ENERGYRESEARCHANDDEVELOPMENT92energy,environment,civilinfrastructureandearthsciences)growingfromaroundEUR0.12billiontoEUR0.47billion(Figure5.1).ThegovernmentindicatesthatspendingonoverallR&Dincreasedfrom1.28%ofGDPin2019to1.5%in2020.MostpublicR&Dfundinggoestopublicresearchentities.In2019,GreecehadoneofthelowestsharesofgovernmentsupporttoprivatesectorR&DasapercentageofGDP(just0.05%).AsanEUmemberstate,Greeceiscommittedtosupportingthe2030targetforEU-widespendingonoverallR&Dtoreach3%ofEU-wideGDPby2030,comparedto2.2%in2018.Figure5.1R&DpublicspendingbysectorinGreece,2012-2020IEA.CCBY4.0.Note:ExcludespublicfundingcomingdirectlyfromtheEuropeanUniontoRD&DentitiesinGreece.Source:OECD(2022).Thegovernment’smainpublicR&DfundingprogrammeisasystemofcompetitivecallsforproposalsorganisedbytheGSRI.TheGSRIselectsR&Dtopicsbasedongovernmentpriorities,andfundingisawardedthroughpeerreview.Greece’srecoveryandresilienceplan(fundedbytheEuropeanUnion)includesEUR0.3billionforenergyR&DrelatingtoEVsandthedevelopmentofGreece’sfirstCO2storagefacility.MostofGreece’spublicR&Dfunding(includingenergyR&D)isfinancedbyEUprogrammes.AsubstantialshareofGreece’spublicR&DfundingisawardeddirectlybytheEuropeanUnionthroughtheFrameworkProgrammeforRresearchandInnovation,theEuropeanUnion’smainmechanismfordirectinginnovationfundingtomemberstates.Horizon2020,theEuropeanUnion’sfundingprogrammeforresearchandinnovationfrom2014to2020,providedEUR80billionforR&DthroughacompetitiveprocessopentoallEUpublicandprivateR&Dentitiesandwasdesignedtoincreasepublicandprivatepartnershipsaswellasinternationalco-operation.Horizon2020providedatotalofEUR1.7billionofR&DfundinginGreece,withEUR0.48billiongoingtoenergy-andclimate-relatedR&D,includingEUR147millionforadvancedmanufacturingandprocessing,andadvancedmaterials;EUR147millionforsecure,cleanandefficientenergy;andEUR112millionforclimateaction,environment,resourceefficiencyandrawmaterials(EU,2022a).HorizonEurope,theEUresearchandinnovationframeworkprogrammefor2021to2027,waslaunchedinFebruary2021.ItaimstoprovidearoundEUR100billioninR&Dfunding,willcontinuetosupportenergy-relatedR&DandsetsgoalstoincreaseinternationalR&Dco-operation(EC,2022c).TheGSRIorganisedanationallauncheventforHorizonEuropeinGreeceinJune2021,andHorizonEuropefundingstartedbeingdeliveredin2022.As0.00.20.40.60.81.01.21.41.6201220132014201520162017201820192020EURbillionBasicresearchHumanscienceHealthDefenseandspaceAgricultureIndustryEnergyEnvironmentCivilinfrastructureEarthscienceIEA.CCBY4.0.5.ENERGYRESEARCHANDDEVELOPMENT93ENERGYSYSTEMTRANSFORMATIONofMarch2023,HorizonEuropehaddeliveredaroundEUR645millioninfundingtoGreece,withEUR136milliongoingtothethematicpriorityofclimate,energyandmobilityandEUR80.1milliongoingtothethematicpriorityoffood,bioeconomy,naturalresources,agricultureandenvironment(EU,2022a).GreecealsosupportsR&DbyallowingcompaniestodeductrelevantR&Dexpensesfromtheirtaxliability.From2010to2019,thecostoftaxreliefforR&DincreasedfromEUR6milliontoEUR14million.InSeptember2020,GreeceupdateditstaxdeductionsystemforR&DexpenseswiththegoalofincreasingR&Dinvestments,especiallyintheprivatesector.Underthenewsystem,companiescandeduct100%ofqualifyingR&Dexpensesfromtheirtaxliabilityinthesameyeartheinvestmentsaremade.Ifthedeductionexceedsannualtaxliability,itcanbecarriedforwardtoreducetaxliabilityuptofiveyearsaftertheexpendituresweremade.Thesystemwasalsoupdatedtoreducetherequirementsandwaitingtimetoprocesstaxdeductionapplications.CompaniescannowsubmittherequireddocumentationforR&DexpensestotheGSRIwithanauditreportsignedbyacertifiedauditorand/orauditingfirmthatcertifiestherealisationofsuchexpensesandtheiramount.TheGSRIfocusessolelyonwhethertherealisedexpensesactuallyrelatetoR&Dactivities;itdoesnotproceedtoafull-scopereview.TheGSRImustcompletetheprocesswithinsixmonths,ortherespectiveR&Dexpensesareautomaticallyapproved(OECD,2021).Supporttostart-upsandentrepreneursThegovernmentaimstosupportenergystart-upsandentrepreneursthroughincreasedco-operationandknowledgetransferfrompublicR&Dentitiesandtheprivatesector.Anationalsurveypublishedin2019(basedondatafrom2014to2016)indicatedthatacomparativelyhighshare(18%)ofinnovatingfirmscollaboratedwithuniversitiesandpublicresearchinstitutes(EKT,2019).GreekcompaniesreceivesupportforR&DthroughtheBusinessInnovationGreeceProgrammerunbytheEEAGrantsandNorwayGrantsProgramme(supportedbyNorway,IcelandandLiechtenstein).TheBusinessInnovationGreeceProgrammeseekstostimulateanddeveloplong-termbusinessco-operationbetweenIceland,Liechtenstein,NorwayandGreecebasedonbusinessdevelopmentandinnovation.Theprogrammeaimstoallocate75%ofthefundingtoSMEs,withprioritytobegiventobilateralpartnerships.TheprogrammehasatotalbudgetofEUR21.5milliondirectedtothreefocusareas:1)greenindustryinnovation(40%);2)bluegrowth(40%);and3)ICT(20%).PrivatespendingonenergyR&DThereislimiteddatacollectiononprivateR&DspendinginGreece.OECDdatashowthatbusinessR&Dintensity(R&Dspendingoverrevenue)inGreeceincreasedfrom0.24%to0.59%from2010to2019(OECD,2021).TheEUCommunityInnovationSurvey,anannualsurveysenttoprivatecompaniesacrosstheEuropeanUnion,indicatesahighandincreasinglevelofprivatesectorinnovationactivitiesinGreece.Themostrecentsurveycovers2018andshowedthat60%ofGreekcompaniesfundedinnovationactivitiesthatyear.Thiswastheninth-highestshareamongEUmemberstatesandanincreasecomparedto57%in2017(EC,2021).IEA.CCBY4.0.5.ENERGYRESEARCHANDDEVELOPMENT94GreekcompaniescanparticipateintheR&DtendersrunbytheGSRI;however,mostofthisfundinggoestopublicresearchentities.KnowledgemanagementInternationalco-operationIEAtechnologycollaborationprogrammes(TCPs)aremultilateralmechanismsthatsupportglobalcollaborationtoadvanceco-operationonresearchandtheuseofspecificenergytechnologies.TheTCPsarecomposedofthousandsofexpertsacrossgovernment,academiaandindustryin55countriesthatco-operateon38technology-specificprogrammes.Expertscanbeofficiallyappointedbygovernmentsorjoinprivatelyfromindustryandresearchentities.SincetheIEA’slastEnergyPolicyReviewin2017,GreecehasendeditsparticipationinfiveTCPs(energytechnologysystemsanalysis,fluidisedbedconversion,concentratedsolarpower,hydrogen,andwindenergy).TheGSRIintendstorenewGreece’sparticipationintheHydrogenTCP.MissionInnovationisaglobalpartnershipof23countriesandtheEuropeanCommissionthataimstoacceleratecleanenergyinnovation.AsanEUmember,GreeceparticipateswithAustralia,Chile,theUnitedKingdomandtheUnitedStatesintheMissionInnovationCleanHydrogenprogramme,whichaimstomakelow-carbonhydrogencost-competitiveby2030.GreecedoesnotparticipateintheCleanEnergyMinisterial,ahigh-levelglobalforumthatpromotespoliciesandprogrammestoadvancethedeploymentofcleanenergytechnologies.TheGSRIisresponsibleforpublicsectorco-operationwithothercountriesonresearchandinnovation.Existingcollaborationscoverawiderangeofbilateralandmultilateralactions,whichvaryfromco-operationatministeriallevel,includingtheOrganizationoftheBlackSeaEconomicCooperation,tocollaborationsbyresearchers/scientists,includingthroughtheEUERANETS.TheNECPnotesagoaltoincreasetheparticipationofGreekresearchcentresininternationalpartnerships,comparedtothecurrentpracticeofparticipatingonlyinEU-financedprogrammes.TosupportincreasedinternationalR&Dco-operation,theGSRIislaunchingcallsforproposalsbasedoninternationalcollaborationonscienceandtechnologyco-operationintheenergysector.Theproposalsinvolveareasofmutualinterestintheenergysector,developedthroughconsultationswiththecompetentbodiesofthepartnercountries.IntellectualpropertyDespitetheincreasedenergyR&Dspending,Greecehasseenareductioninenergy-andclimate-relatedpatents.(Figure5.2).Thistrendispartlyexplainedbyanexodusofskilledworkersintheenergysectorduetothecountry’sprolongedeconomiccrisis.Greece’spatentapplicationrate(numberofpatentsperEURbillionGDP)was0.8in2019comparedto3.3intheentireEuropeanUnion(EU,2022b).In2019,8%ofpatentsinGreecewerededicatedtoenergy-relatedtechnologiescomparedto10%intheEuropeanUnion.IEA.CCBY4.0.5.ENERGYRESEARCHANDDEVELOPMENT95ENERGYSYSTEMTRANSFORMATIONFigure5.2Newpatentsinenergy-relatedtechnologiesinGreece,2005-2019IEA.CCBY4.0.Source:EU(2022b).NetworksInnovativeGreeksisanetworkofexpertsthataimstoscaleuptheGreekstart-upecosystemandimproveaccesstointernationalmarkets,increaseinnovationpotentialthroughsynergieswithinternationalresearchfacilities,attracttech-ledinvestmentsinfast-growingindustries,attractexpertiseandtalenttoGreekstart-ups,improveGreece’sappealasatopinvestmentandworkdestination,andinformabouttheachievementsofthenationalinnovationecosystem.ThenetworkincludesagrouponCleanTech/EnergyTransition.ThenetworkforGreekstart-upsaimstoreachEUR10billionincapitalisationandcreate50000jobsby2025.InnovationGreekisanassociationofGreekSMEs(includingseveralwithactivitiesintheenergysector)andacompetitiveecosystemofhigh-calibreinnovation-basedSMEs.MarketpullEnergyR&Disalsosupportedthroughsubsidiesthataimtodeployinnovativeandpilotrenewableenergyprojects.Theseprojectsareeligibleforfinancialsupport,includingoperationandinvestmentsubsidies,ontheconditionthattheyincreasedomesticaddedvalueandcontributetocoveringlocalorspecialenergyneeds(seeChapter4).Monitoring,evaluationandtrackingofresultsTheGSRIhasamandatetoevaluatetheoutcomesoftheR&Dprojectsthatitfundsandtousethisinformationtoadjustresearchpolicy.TheGSRIalsoevaluatesR&DprojectsfundedthroughHorizon2020andHorizonEurope.ThesystemofevaluationfortheR&Dconductedfrom2014to2020encompassesseveralphases.Inthefirstphase,therewasanexanteevaluationoftheproposalsbyexternalevaluators(peerreview)followingEUrulesforHorizon2020.TheprogressinR&DprojectsandtheirfirstresultswereevaluatedusingEUrulesrelatedtothesmartspecialisationstrategymonitoringmechanism.AthirdphasewillincludeanexpostevaluationofthefinalresultsoftheR&Dprojects.Greece’sperformanceinR&DisalsomonitoredandevaluatedthroughtheEuropeanInnovationScoreboard.The2022scoreboardindicatedthatGreecehadoneofthe0510152025303540200520062007200820092010201120122013201420152016201720182019NumberofpatentsWasteNuclearOtherpowerandstorageHydrogenandfuelcellsFossilfuelsEnergyefficiencyRenewablesIEA.CCBY4.0.5.ENERGYRESEARCHANDDEVELOPMENT96greatestimprovementsinperformanceoninnovationamongEUmemberstatessince2015butisstillrankedinthemoderateinnovatorsgroup,indicatingperformancebelowtheEUaverage.Thescoreboardnotedrelativestrengthsforproductinnovators,innovativeSMEscollaboratingwithothers,employmentininnovativeenterprises,salesofinnovativeproductsandbusinessprocessinnovators.Relativeweaknesseswereidentifiedforthenumberofforeigndoctoratestudents,lifelonglearning,employedICTspecialists,governmentsupportforbusinessR&D,andmedium-andhigh-techgoodsexports.Inaddition,theEUEco-innovationIndexmeasuresEUmemberstates’performanceonenvironmentalinnovation.The2021indexrankedGreeceasaverageforeco-innovation.AssessmentTheGreekgovernmentseesenergytechnologyinnovationasimportanttoachieving2030climatetargetsandthelong-termnetzeroemissionsgoal.NospecialpolicydocumentorstrategyfocusesonenergyR&D,butenergyR&DisgivenanimportantroleintheoverallR&Dpolicysetting.ThegovernmentdeclareditsintentiontodoublegrossdomesticexpenditureonenergyR&Dintheperiod2017-2030toreach0.13%ofGDP,comparedto0.06%in2017.FundingforenergyR&DinGreececomesmainlyfromEUsources.From2014to2020,Horizon2020contributedEUR0.48billionforenergyR&DinGreece,withsignificantadditionalfundsfromotherEUsources.Duringtheperiod2014-2020,thenational“Research-Create-Innovate”programmededicatedEUR6millionperyeartotheseveninnovationstreamsrelatedtoenergyandanadditionalEUR1millionperyearfromtheERANetsandbilateralco-operationprogrammes.ThehighshareofR&DfundingcomingdirectlyfromtheEuropeanUnionreducesgovernmentleverageoverthetopicsthatareultimatelycovered,whichcouldcreatechallengesinimplementingasmartspecialisationstrategy.ThereareverylimiteddataonprivatespendinginR&DinGreece.TheavailableinformationfromtheOECDandthedatafromthenationaltaxdeductionsystemindicateaprogressiveincreaseinprivatesectorinnovation.Thegovernmenthasalsorecentlytakenstepstosupporttheprivatesectorandstart-upsindrivingincreasedenergyR&DinGreece.ThecontinuousmonitoringofexpendituresinenergyR&D,categorisedbysource,sectorandrecipient,shouldbeakeyinstrumenttoensurethedevelopmentoftheinnovationprocessinthecountryandtheadequateallocationofresources.Greecehasnotsubmitteddataonenergy-relatedR&DtotheIEAsince2011.ThegovernmentshouldupgradetheexistinginventoryofpublicenergyR&Dprojectsandfundingandpublishthisinformationonatransparentandregularlyupdatedwebportal.ThisinformationshouldbeusedtomonitorspendingandassesstheachievementoftheobjectivesoftheNationalResearchandInnovationStrategy.DatacollectionshouldbeextendedtoprivateR&Dactivities(basedontheOECDguidelines),andthesedatashouldbecommunicatedtotheIEAinatimelymanner.IEA.CCBY4.0.5.ENERGYRESEARCHANDDEVELOPMENT97ENERGYSYSTEMTRANSFORMATIONPolicymeasuresforR&DprioritisationTheprioritiesforenergyR&DaresetintheNECPandtheSmartSpecialisationStrategy,whichincludesregionalstrategiescoveringsustainabledevelopment,energyandtransport.Thereisalackofcoherenceacrossthesestrategicdocuments.Althoughaninclusiveprocessisestablishedforidentifyingpriorities,theenergyinnovationecosystemremainsstronglydrivenbyuniversitiesandpublicresearchcentresthatarealsothemainentitiesperformingenergyR&D.ThebusinesssectorcontributeslittletodefiningR&DprioritiesbecauseitismainlyfocusedonmaturetechnologyratherthanonR&Dandbecauseofthelowcorrelationbetweendemandandsupplyofinnovationfrombusinessesandresearchinstitutions.Thegovernmentshouldstreamlinethestrategyformulationprocess,thuslimitinginefficienciesduetodistributedandunclearresponsibilitiesandavoidinginconsistencies.TheinclusiveprocesswouldbeimprovedbyestablishingnationalplatformsusingtheEuropeanEnergyTechnologyandInnovationPlatformsmodel,co-ordinatedbytheMinistryofDevelopment.Theparticipationofindustrialstakeholdersshouldbeensured,inproactivedialogueandco-operationwithacademiaandpublicresearchinstitutions,toestablishpriorities,evaluatetheneedsandsharingofresources,andidentifythemosteffectivepathwaysfortheexploitationandimplementationoftheR&Dresults.PolicymeasurestofosterR&DprojectsandachievementsTheGSRIisthemaingovernmentbodyresponsibleforimplementingtheR&Dpolicy(includingforenergy).AnalysisoftheR&Dfundingfor2014-2020showsadistributionofsmallamountsoffundingacrossmanyprojects.Theaveragefundingofprojectsunderthe“Research-Create-Innovate”programmeisaroundEUR180000peryearperproject.Thislimitedleveloffundingcansupportdeskresearchandsmall-tomedium-scalelaboratoryorfieldactivitiesbutnotlarge-scaleindustrialprojects.Instead,Greekresearchcentresandindustrialpartiesprefertocarryoutlargedemonstrationprojectstovalidate,underrealconditions,smartsolutionsandinnovativetechnologies.TheGSRIalsohasthemandatetoevaluatetheoutcomesofR&Dprojectsthatitfundsandtousethisinformationtoadjustresearchpolicy.TheGSRIalsoevaluatesR&Dprojectsco-fundedbytheEuropeanUnion.Althougheachprojectproposalisevaluatedexanteintermsofexcellence,impactandqualityofimplementationbyagroupofexperts,noevidenceisgivenaboutmonitoringongoingprojects,orexpostontheirrealachievements,impacts,contributionstoreachingtheR&Dstrategy,theknowledgetheygenerateorthetransfertostakeholders,totransformitintoinnovativeactionableoutputsofpotentialinterestforfurtherdevelopmentbybusinesses.ThegovernmentshouldensurethattheinventoryofpublicandprivateR&Dprojectsincludesamappingofthetopics,technologiesandsolutionsaddressedandfeedbacktotheenergyR&Dstrategy.Aprocessformonitoringtheprojectdevelopmentandanexpostassessmentshouldbeorganisedandimplementedtoensuremaximumimpactandtechnologytransfertobusinesses,aswellaspotentialmarketuptake.PolicymeasurestoacceleratemarketuptakeThequalityoftheresearchcarriedoutbyGreekuniversitiesandresearchcentresisrecognisedinternationallyforitsexcellence.IEA.CCBY4.0.5.ENERGYRESEARCHANDDEVELOPMENT98However,thislevelofexcellencedoesnotresultinequivalentbusinessdevelopment:thepercentageofenterpriseswithproductinnovationremainslowerthantheEUaverage;innovativeproductsdonotcontributesignificantlytothetotalturnoverofenterprises;thenumberofpatentsshowsadecreasingtrendandremainsverylimited(intherangeof10-20peryear)comparedtoR&Dspending(patentapplicationrate0.8patentsperEURbillionGDP);asignificantportionofskilledpersonnelmigratesinsearchofbetteropportunitiesabroad.ThetechnologytransferofficesofthepublicresearchcentresshouldensureclosercollaborationbetweenbusinessesandtheR&Dcommunity,alsofacilitatingtheconductionofappliedresearchanddemonstrationonthepremisesorinclosecollaborationwithindustriesandbusinesses.Promisingsectorsforpotentialcollaborationaretheapplicationofdigitaltechnologiesandsolutionsandadvanceddataanalytics.Transferringmethodsandtoolsfromtheresearchcommunitytothebusinesssectorcanalsocreatenewbusinessopportunities.Energyretailers,forexample,couldlargelybenefitfromthedevelopmentofadvanceddatamanagementofmeasuresfromsmartmeters.Theelectricitynetworkoperators(TSOandDSO)alsoundertakeR&Dactivities;however,theyhavesmallR&Ddepartmentswithlimitedcapacity.Greece’senergypolicycallsforamajorreworkingoftheelectricitysystemandsignificantoperationalchanges.ThegovernmentshouldsupportthenetworkoperatorsinconductingR&D,bothontheirown,inco-operationwithdomesticR&DentitiesandthroughparticipationinEUprogrammes.Thiscouldincludeforward-lookingregulatoryframeworks,adoptingamoreholisticviewofinnovationacrossthevariousstages,fromearlyR&Dprogrammestoinnovationuptake,andusingregulatorysandboxes.InternationalcollaborationSincetheIEA’slastEnergyPolicyReviewin2017,GreecehasendeditsparticipationinfiveIEATCPs(energytechnologysystemsanalysis,fluidisedbedconversion,concentratedsolarpower,hydrogenandwindenergy).TheGSRIintendstorenewGreece’sparticipationintheHydrogenTCP.ThroughtheEuropeanUnion,GreeceparticipateswithAustralia,Chile,theUnitedKingdomandtheUnitedStatesintheMissionInnovationCleanHydrogenprogramme,whichaimstomakelow-carbonhydrogencost-competitiveby2030.ThegovernmentshouldenhancetheparticipationofGreekR&DentitiesininternationalcollaborationoncleanenergyR&D,specificallywithregardtoIEATCPsandMissionInnovation2.0initiatives,buildingonGreece’sinvestmentstrategiesforcleanenergytechnology.IEA.CCBY4.0.5.ENERGYRESEARCHANDDEVELOPMENT99ENERGYSYSTEMTRANSFORMATIONRecommendationsThegovernmentofGreeceshould:Allocatebindingbudgetstoeachoftheinstrumentsselectedtofinanceenergyresearchanddevelopmentfortheperiod2021-2027,takingintoaccounttheprioritiesoftheNationalResearchandInnovationStrategy.Thebudgetsharingshouldberegularlyre-evaluateddependingontheevolutionofenergypolicyprioritiesandemergingnecessities.Revisethecriteriaforallocatingfundingtoresearchanddevelopmentprojectstoavoidsplittingbudgetsintosmallamountsacrossmanystreamsandreducetransactioncosts.Thiswillenhancetheinterestofindustrialpartnersandincreasetheshareofmediumandlargedemonstrationprojectsthatreceivesupport.Facilitatethetransferofknowledgefromuniversitiesandpublicresearchcentrestocompaniesthroughmeasurestoacceleratemarketuptake,includingtheuseofopenaccessprinciples,recoursetostandardisationandimplementationofcontinuouseducationprogrammes.ReferencesEC(EuropeanCommission)(2022a),EuropeanInnovationScoreboard(webpage),https://ec.europa.eu/info/research-and-innovation/statistics/performance-indicators/european-innovation-scoreboard_enEC(2022b),Eco-innovationActionPlan(webpage),https://ec.europa.eu/environment/ecoap/indicators/index_enEC(2022c),HorizonEurope(webpage),https://ec.europa.eu/info/horizon-europe_enEC(2020),SmartSpecialisationPlatform“Greece”,https://s3platform.jrc.ec.europa.eu/documents/portlet_file_entry/20125/MORE+ON+GREECE+%28Final%29.pdf/58649ecb-ac2a-d118-37f6-9ee3a28bea10EC(2021),CommunityInnovationSurvey:Latestresults(webpage),https://ec.europa.eu/eurostat/web/products-eurostat-news/-/ddn-20210115-2EKT(NationalDocumentationCentre)(2019),InnovationinGreekbusinesses,2014-2016,https://metrics.ekt.gr/publications/346Esetek(2022),NationalCouncilforResearch,TechnologyandInnovation(webpage),https://esetek.gov.gr/en/homeEU(EuropeanUnion)(2022a),KeyFigures–Greece(database),https://webgate.ec.europa.eu/dashboard/sense/app/a976d168-2023-41d8-acec-e77640154726/sheet/0c8af38b-b73c-4da2-ba41-73ea34ab7ac4/state/analysis/select/Country/Greece(accessedon15June2022)EU(2022b),H2020CountryProfile–R&Dlandscape–Greece(database),https://webgate.ec.europa.eu/dashboard/sense/app/a976d168-2023-41d8-acec-e77640154726/sheet/eeb35687-5e03-44b8-ace0-9cd8802cbd00/state/0(accessedon15June2022)GSRI(GeneralSecretariatforResearchandInnovation)(2022),Home(webpage),www.GSRI.gr/central.aspx?sId=119I428I1089I323I488743HFRI(HellenicFoundationforResearch&Innovation)(2022),Objectives(webpage),https://www.elidek.gr/en/objectivesIEA.CCBY4.0.5.ENERGYRESEARCHANDDEVELOPMENT100OECD(OrganisationforEconomicCo-operationandDevelopment)(2022),Governmentbudgetappropriationsoroutlays(dataset),https://doi.org/10.1787/data-00194-en(accessedon15June2022)OECD(2021),R&DTaxIncentives:Greece,2021,https://www.oecd.org/sti/rd-tax-stats-greece.pdfIEA.CCBY4.0.101ENERGYSECURITY6.ElectricityKeydata(2021)Electricitygeneration:55TWh(naturalgas41%,wind19%,hydro11%,lignite9.7%,solar9.6%,oil8.5%,bioenergyandwaste1.0%);-8%from2011to2021Electricitynetimports:3.7TWh(imports7.6TWh,exports3.9TWh)Electricitydemand:51TWh(residentialbuildings35%,servicesectorbuildings32%,industry32%);-5%from2011to2021Peakload:10.5GW(August2021)Installedcapacity:20.4GW(2022)Importcapacity:2.4GW(2022)OverviewGreece’selectricitysectorisundergoingmajorchanges.RecentandongoingreformsaimtofullyintegratethenationalelectricitymarketintothecommonEuropeanmarket.Lignite-firedgeneration,oncethedominantsourceofelectricity,hasbeenstronglyreducedandwillbephasedoutby2028atthelatest.Therehavebeenrapidincreasesingenerationfromnaturalgas,windandsolarPV,significantlyreducingthecarbonintensityofgeneration.TheelectricitysectorplaysakeyroleinGreece’senergypolicy.ThegovernmentaimstoreduceGHGemissionsacrosstheeconomybyincreasingelectricitygenerationfromrenewables(especiallysolarPVandwind)whileboostingelectrificationofenergydemand(especiallyforroadtransportandbuildingheatingandcooling).GreecealsoaimstosupporttheintegrationofrenewablesandincreasedsystemflexibilitythroughbatterystorageandDSR.Thegovernmentalsohasagoaltointerconnectallpopulatedislandstothemainlandgridby2030toendtheirrelianceonoil-firedgeneration.Thegovernmentseesgas-firedgenerationasakeytechnologytocompensateforthereductioninlignite-firedgenerationwhilemaintainingdispatchablegenerationforsystembalancing.However,theroleofgasisbeingre-evaluatedfollowingtheRussianinvasionofUkraineandcontinuedgaspricevolatility.Electricitydemand,generationandtradeGreeceexperiencedanoveralldeclineinelectricitydemandfrom2011to2021,whichfellfrom54TWhto51TWh(Figure6.1).However,overthisperiod,therewerenotableIEA.CCBY4.0.6.ELECTRICITY102variationsinelectricitydemanddrivenmainlybyfluctuationsinelectricitydemandfrombuildings,whichrangedfromamaximumof39TWhin2016toaminimumof33TWhin2020.Thevariabilityofbuildingdemandisdrivenmainlybyannualchangesinheatingandcoolingdemand.AsaresultofGreece’seconomiccrisis,industryelectricitydemanddroppedsharplyfrom21TWhin2008to16TWhin2012andfluctuatedslightlythrough2021whenitwas17TWh.Greecehasonlymarginalelectricitydemandfromthetransportsector(0.2TWhin2021),whichcomesmainlyfromrail.From2010to2021,theshareoftotalenergydemandcoveredbyelectricityincreasedfrom23%to28%(comparedtoanIEAaverageof22%in2021).In2021,electricitycovered50%oftotalenergydemandfrombuildings:36%forresidentialbuildingsand83%forservicesectorbuildings.Incomparison,theaveragesharesofelectricityinenergydemandfrombuildingsamongIEAmembercountriesin2021were44%(total),39%(residential)and52%(service).ThehighsharesinGreecereflectarelativelyhigheruseofairconditioningandthenotablecoolingdemand,especiallyinthetourismindustry.Incontrast,verylittlebuildingspaceheatinginGreeceiscoveredbyelectricity.Electricitycoveredthesecond-highestshareofindustryenergydemandin2021(33%),comparedtotheaverageof21%amongIEAmembercountries.ThisreflectstherelativelylimitedroleofheavyindustryinGreece.Figure6.1ElectricitydemandbysectorinGreece,2005-2021IEA.CCBY4.0.Source:IEA(2022a).From2011to2021,electricitygenerationdecreasedfrom59TWhto55TWhandexperiencedasignificantchangeintheresourcemix(Figure6.2).Overthisperiod,lignite-firedgenerationdroppedstronglyfrom31TWhto5.3TWh.Thereductioninlignite-firedgenerationhasbeencoveredbyincreasedgas-firedgeneration(14TWhto22TWh),higherrenewablegeneration(8.1TWhto22TWh)andincreasedelectricityimports.Mostgrowthinrenewablegenerationcamefromincreasedwindgeneration(3.3TWhto10TWh)andsolarPVgeneration(0.6TWhto5.3TWh).Hydrogenerationishighlyvariabledependingonwateravailability,reachingahistoricpeakof7.5TWhin2010.Becauseofcontinuingtrendsoflowerprecipitation,hydrogenerationhasbeenfallingandreached5.9TWhin2021.Therewasalsoasmalldecreaseinoil-firedgeneration(5.9TWhto4.7TWh),usedmainlyinnon-interconnectedislandsandreplacedbyinterconnectionstothemainlandgridandrenewablesgenerationontheislands.01020304050607020052006200720082009201020112012201320142015201620172018201920202021TWhTransportIndustryServicesectorbuildingsResidentialbuildingsIEA.CCBY4.0.6.ELECTRICITY103ENERGYSECURITYFigure6.2ElectricitygenerationbysourceinGreece,2005-2021IEA.CCBY4.0.Source:IEA(2022b).Greeceisanetimporterofelectricity(Figure6.3).Netimportshavevariednotablysince2010,rangingfromaminimumof1.8TWhin2012toamaximumof9.9TWhin2019.ThevariationsinimportsweredrivenmainlybyeconomicconditionsinGreecethataffectedelectricitydemandandmarketcompetitionbetweendomesticgenerationandimports;importshaveincreasedaslow-costlignitegenerationdeclined.GreeceismakingsubstantialinvestmentsinelectricalinterconnectionstosupportfurtherintegrationwiththeEuropeanelectricitysystemandaimstobecomeanetelectricityexporterby2030.Figure6.3Greece’selectricityimportsandexports,2005-2021IEA.CCBY4.0.Source:IEA(2022b).InfrastructureGreece’selectricityinfrastructureconsistsoflargethermalplants(naturalgasandlignite)andrenewablegeneration(large-scalehydro,windandsolarPV,andsmall-scaledistributedgeneration,mainlysolarPV),cross-borderinterconnectionstoAlbania,Bulgaria,Italy,NorthMacedoniaandtheRepublicofTürkiye(hereafter“Türkiye”),atransmissionanddistributionnetworkthatservesthemainlandandinterconnectedislands,andnumerousisolateddistributionnetworksonnon-interconnectedislands(Figure6.4)01020304050607020052006200720082009201020112012201320142015201620172018201920202021TWhBioenergyandwasteOilSolarHydroWindNaturalgasLignite-4-202468101220052006200720082009201020112012201320142015201620172018201920202021TWhAlbaniaOtherItalySerbiaRepublicofNorthMacedoniaBulgariaTotalnettradeNetimportsNetexportsIEA.CCBY4.0.6.ELECTRICITY104Figure6.4MajorexistingandplannedelectricityinfrastructureinGreece,2022InstalledgenerationcapacityFrom2016to2022,Greece’sinstalledgenerationcapacityincreasedfrom16.2GWto20.4GW,excludingcapacityonnon-interconnectedislands(Table6.1).MostofthisgrowthcamefromincreasedcapacityofsolarPV(+2.5GW),wind(+2.2GW)andanewnaturalgascombined-cyclegasturbine(CCGT)inMegalopolis(+0.81GW),aswellassmalleradditionsforhydro,biogasandco-generation.Lignite-firedcapacitydroppedby1.6GWwiththeclosureofseveralolderunits.IEA.CCBY4.0.6.ELECTRICITY105ENERGYSECURITYTable6.1InstalledcapacityinGreece,2016-2022andestimatedcapacity,2025-2030Installedcapacity(GW)201620172018201920202021202220252030Naturalgas4.44.44.94.95.25.25.26.96.9Lignite3.93.93.93.93.92.82.30.70Wind2.12.32.63.33.84.34.35.27SolarPV2.442.452.492.643.084.04.95.37.7Largehydro333.23.23.23.23.23.83.9Smallhydro0.220.230.240.240.250.250.260.260.26Biogasandbiomass0.060.060.080.090.10.110.10.10.3Co-generation0.10.10.10.110.110.240.120.120.12Total16.216.517.418.319.620.120.421.726.2Includingsmall-scalesolarPVinthedistributiongrid.Thegovernmentestimatesthatinstalledgenerationcapacitywillincreaseto26GWby2030,mainlybecauseofincreasingrenewablescapacity,primarilysolarPV(+2.8GW),wind(+2.7GW)andlargehydro(+0.7GW),alongwithanexpectedincreaseofnaturalgas(+1.7GW)andsmalleradditionsforbiogas,geothermalandsolarthermal.AsofJuly2021,around4.3GWofnewrenewableprojectshadbindingtermsforagridconnection,mainlywind(2.4GW)andsolarPV(1.8GW).TheNECPsetatargetfor19GWofrenewablecapacity(excludinglargehydro)by2030versusaround9.6GWin2022.Thereareplanstoincreasefossilfuelgenerationcapacitybyaround1.7GWby2030.AsofJune2022,twofossilfuelplantswereunderconstruction,a0.83GWCCGTunitinAgiosNikolaosandalong-delayed0.62GWligniteunitinPtolemaida.Thereareplanstoconvertthisligniteunittonaturalgas.Theoriginaldeadlinewas2025,butin2022,theswitchtogaswasextendedto2028toreducedemandforRussiangasfollowingtheRussianinvasionofUkraine.SevenotherCCGTunits(withatotalcapacityof5.17GW)havegenerationlicencesandconnectionoffers.However,thegovernmentindicatesthatmostprobablyonlytwooftheseunits,withatotalcapacityof1.72GW,willbecompletedby2030.InterconnectionsAlthoughnonewinterconnectionsweredeployedsincetheIEA’slastEnergyPolicyReviewin2017,therewasanotableincreaseinGreece’sinterconnectioncapacity,whichgrewfrom1716MW(export)and2066MW(import)to2468MW(export)and2366MW(import)in2022thankstohighercapacityonthelinetoNorthMacedonia,whichincreasedfrom350MW(export)and450MW(import)to1100MW(export)and850MW(import).In2022,GreecewasinterconnectedwithAlbania,Bulgaria,NorthMacedoniaandTürkiyeviafive400kValternatingcurrent(AC)lines(onelinetoeachcountry);withAlbaniaviaone150kVACline;andwithItalyviaonedirectcurrent(DC)underseacable(Table6.2).IEA.CCBY4.0.6.ELECTRICITY106Table6.2Greece’sinterconnectioncapacity,2022andgrowththrough2025Cross-borderinterconnectioncapacity(MW)20222025ExportImportExportImportAlbania250250400400Bulgaria40060014001700Israel0010001000Italy500500500500NorthMacedonia11008501100850Türkiye218166660580TOTAL2468236650605030GreeceisexpandingitsinterconnectioncapacitytoincreaseintegrationwiththeEuropeanelectricitymarketandsupportitsgoalofbecominganetelectricityexporter.Thegovernmenthasannouncedthatby2030itplanstodoublethecapacityofinterconnectionswithBulgaria,ItalyandNorthMacedoniaandtriplethecapacityofinterconnectionswithAlbania(Kokalova,2022).Therearetwoongoinginterconnectionprojects,whichshouldincreasetotalexportcapacityto5060MWandtotalimportcapacityto5030MWby2025.Anew400kVAClinewithBulgariaisexpectedtostartoperatingin2023.ThisprojecthasatotalcostofEUR66.3millionandaimstosupportincreasedexportofrenewablegenerationfromGreeceandimproveelectricitytradebetweentheContinentalEuropeSynchronousAreaandTürkiye(viatheexistingGreecetoTürkiyeinterconnection).In2021,GreecesignedanagreementwithothercountriesintheregiontostartconstructionoftheEuroAsiaInterconnector,amajorprojecttointerconnectthesecountriesviatwoDCsubseacables.Thefirstphaseoftheprojectwillsupport1.0GWofinterconnectioncapacitywithacostofEUR2.5billion.Asecondphaseoftheprojectplanstoincreasecapacityto2.0GW.TheTSO’s2021Ten-yearDevelopmentPlancallsforinvestmentsofEUR4billionfrom2023to2032,withanotablesharetoboostinterconnectioncapacity.ThisincludesasecondDCsubseacabletoItalytoraisecapacityfrom500MWto1000MW.TheTSOsofGreeceandNorthMacedoniaarediscussingplanstoupgradetheexisting400kVinterconnection.TheTSOsofGreeceandAlbaniaarediscussingthepossibilityofbuildinganew400kVinterconnection.AworkinggroupbetweenGreece,BulgariaandTürkiyehasproposedtwoprojectstoboostinterconnectioncapacity:a400kVGreece-Türkiyelineanda400kVBulgaria-Türkiyeline.GreeceisalsosupportingtheEuroAfricainterconnectorproject,whichaimstoconnectGreeceandEgyptviaa3.0GWsubseaDCcable,andwouldservemainlytoexportelectricityfromEgypt(Aposporis,2022).TransmissionIn2021,theGreektransmissionsystemwascomposedofaround12500kmofACandDCoverheadlines,subseacablesandundergroundcables,withvoltagesrangingfrom400kVto66kV,and344substations,71ofwhicharededicatedtoconnectingrenewablegeneration(Table6.3).Majordevelopmentsinthetransmissionsystemcompletedfrom2017to2021includeinterconnectingthemainlandtransmissionsystemtoCrete(Greece’slargestandmostpopulousisland)andseveraloftheCycladicislandsandupgradingandexpandingthenetworknearMegapolis.IEA.CCBY4.0.6.ELECTRICITY107ENERGYSECURITYTable6.3Greece’selectricitytransmissionsystem,2021Linesandcablesinoperation(km)VoltageTotalAC400kVDC400kVAC150kVAC66kVOverheadlines274310781503911039Subseacables0091359972Undergroundcables3103811414Total277410794449912425By2030,theTSOplanstoaddatleast4000kmofnewtransmissionlinesandatleast22newsubstations(excludingthoseneededtosupportnewrenewablegeneration).The2021Ten-yearTransmissionDevelopmentPlanplacesastrongfocusoncontinuingtheinterconnectionsofisolatedislandstoreducetheirrelianceonoil-firedgenerationandallowtheexportofrenewablegenerationfromtheislandstothemainland.ProjectsunderconstructionincludeasecondinterconnectiontoCrete(EUR1.04billion,completion2024),andinterconnectiontothesouthandwestCycladicislands(EUR0.41billion,completion2024)andtoSkiathosisland(estimatedEUR60million).PlannedprojectsincludetheinterconnectionofDodecanese(EUR1.5billion,completion2028)andtheNortheastAegeanislands(EUR0.89billion,completion2029)tothemainlandpowersystem.Completionoftheseprojectswouldlinkmostoftheislandstothemainland.TheTSOalsoplanstoincreasethecapacityandreliabilityofthemainlandgrid,aiminginparticulartosupportexportsofrenewableelectricitygeneration.Keyprojectsincludetheexpansionofthe400kVgridtowardsPeloponnese(EUR98million,completionin2024),new400kVlinesbetweenNeaSantaandFilippi(EUR49million,completionin2027)andnewextremehigh-voltagesubstationsinAttica.DistributionIn2020,theGreekelectricitydistributionsystemwascomposedofaround7.6millionmeteredconnections,around242000kmoflinesandaround165000substations(Table6.4).ThereisonlyoneDSO(HEDNO),butithasfiveregionaldepartmentsthatareresponsiblefornetworkoperationandmaintenanceintheirservicearea(Figure6.5).TheDSOisplanningmajorprojectstoexpandandupgradethedistributionsystem.InJune2021,itsignedanagreementwiththeEuropeanInvestmentBankforaEUR330millionloantosupporttheconstructionof6600kmofnewpowerlines,upgradingof7600kmofexistinglinesandthedeploymentofsmartmeters.TheDSOisalsoinvestingindeployingdigitalsmartmeterstoallconsumersby2030.Theseinvestmentsareintendedtoimprovesystemperformanceandincreasetheintegrationofrenewablegeneration(EIB,2021).Table6.4Greece’selectricitydistributionsystem,2020VoltageLines(km)ConnectedconsumersSubstations(number,voltage)Low1282117580744165290,lowtomediumMedium11335812668241,mediumtohighHigh993NodataTotal2425627593412165531IEA.CCBY4.0.6.ELECTRICITY108Figure6.5RegionaldepartmentsoftheGreekelectricitydistributionsystemoperatorNon-interconnectedislandsGreecehasmadesignificantprogressininterconnectingitsislandstothemainlandgrid.However,in2020,47populatedislandswerestillnotinterconnected,someofwhicharelinkedtoeachothertoformatotalof29autonomoussystems.Togetherthesesystemshadatotalofaround780000meteredconnectionpointsandatotalelectricitydemandofaround4.4TWh(comparedto7.6millionconnectionsand48.8TWhofdemandintheinterconnectedsystem).Almostallgenerationonnon-interconnectedislandsisbasedondiesel.TheDSOisresponsibleformanagingtheelectricitysystemsandmarketsoneachofthenon-interconnectedislands.PPCisthemainelectricitysupplieronnon-interconnectedislands,accountingfor82.6%oftotalconsumersand73.9%oftotaldemandin2020.PPC’ssharesofconsumersanddemandbothdeclinedbyaround5%comparedto2019.Retailpricesonnon-interconnectedislandsdonotreflectgenerationcostsbutaresetbytheDSObasedonaverageretailpricesintheinterconnectedsystem.ThedifferenceIEA.CCBY4.0.6.ELECTRICITY109ENERGYSECURITYbetweentheretailpriceandtheactualcostofelectricityiscoveredbyapublicserviceobligationfeechargedtoallconsumersintheinterconnectedsystem.In2020,feestocoverthehighercostsofdieselgenerationonnon-interconnectedislandstotalledEUR400million.Thegovernmenthasagoaltointerconnectallpopulatedislandstothemainlandgridby2030.Significantinvestmentsarecommittedtotheinterconnectionofislandsinthe2021TSOTen-yearDevelopmentPlan(EUR3billion)andinGreece’srecoveryandresilienceplan(EUR200million).Thegovernmentisalsosupportingthedeploymentofrenewablegenerationontheislands.MarketstructureGreeceisundertakingnotablechangestoitswholesaleelectricitymarketmechanismstosupportfullintegrationintotheEuropeancommonwholesaleelectricitymarket.Inaddition,underthetermsofthebailoutsreceivedfrom2010to2019,Greeceisrequiredtoprivatiseawiderangeofstate-controlledcompaniesandassetsaspartofawiderefforttoincreasemarketcompetition.ThisincludedtheprivatisationofPPC(theincumbentelectricityutility)inNovember2021.PPCstillplaysadominantroleinGreece’selectricitymarket.Itownsthelargestshareofinstalledgenerationcapacity(46%in2020and40%in2021,includingmostlignite-firedgenerationandassociatedmines,andalllarge-scalehydrogeneration).Itisalsothelargestelectricitysupplieratthewholesalelevel(46%marketsharein2020and42%in2021)andretaillevel(63%marketsharein2020).LegislationsetsatargettoreducePPC’sshareoftheretailmarketto50%orless.CapacitymarketGreece’selectricitymarketfunctionsmainlyasanenergy-onlymarketwheresuppliersarepaidforelectricity(MWh)deliveredtoconsumers.From2016to2020,acapacitymarketmechanismaimedtoaddressresourceadequacyconcernsbyprovidingpaymentsbasedonguaranteedavailabilityofcapacity(MW).Legislationpassedin2019callsforthecreationofanewcapacityremunerationmechanismthatwillawardcapacitypaymentsthroughcompetitiveauctionsrunbytheTSO.Thegovernmentisdevelopingtherulesforthecapacityremunerationmechanism,whichisexpectedtostartoperatingin2023.WholesalemarketTosupportbetterintegrationwiththeEuropeancommonwholesaleelectricitymarketandensuremorecompetitiveandefficientwholesaleelectricitytrading,Greeceisimplementingstructuralchangestoitswholesaleelectricitymarket(Figure6.6).Aday-aheadmandatorypoolsystem,inoperationsince2005,wasreplacedin2020withthreewholesalespotmarkets(day-ahead,intradayandbalancing)andaderivativesmarket.Theday-ahead,intradayandderivativesmarketsareoperatedbyHellenicEnergyExchange(HEnEX),whiletransactionclearingisperformedbytheAthensExchangeClearingHouse(ATHEXClear)forthederivativesmarketandtheHellenicEnergyExchangeClearingHouse(EnExClear)forthespotmarkets.ThebalancingmarketisoperatedbytheTSO.IEA.CCBY4.0.6.ELECTRICITY110Figure6.6OperationoftheGreekwholesaleelectricitymarketIEA.CCBY4.0.Thederivativesmarketoffersfuturecontractsforbothbaseloadandpeakloadprofiles,coveringmonthly,quarterlyandyearlyperiods.Participantsinthederivativesmarketcanbegenerators,suppliers,traders,aggregatorsandconsumers.Todate,thismarkethasnoliquidity,withnosignificantcontractsconcluded.Aimingtoaddresstheissueoflimitedliquidityinthebilateralandforwardproductsandtoenhancecompetitioninthederivativesmarket,theRAEissuedDecision928/2022toincreasethecaponquantitiesofforwardexchangedandbilateralcontractsofverticallyintegratedsuppliersfrom20%to30%,forsupplierswithamarketsharehigherthan40%insupply(thus,applyingtoPPConly).Theday-aheadmarketisthemainspotmarketfortradingelectricity.Itisanauctionmarketrunatnoononthedayprecedingthedeliverydayandcoverstheentiredeliverydayin24-hourunits.Themarketparticipantsaregenerators,consumers,suppliers,tradersandaggregators.Participationintheday-aheadmarketismandatoryforthermalgenerators.Participantsareallowedtosubmitordersbetween-500EUR/MWhand3000EUR/MWh.Theday-aheadmarketiscoupledtootherEuropeanday-aheadmarketsthroughtheSingleDay-AheadCouplingprojectviatheGreece-BulgariaandGreece-Italyinterconnections.Theintradaymarketconsistsofanauctionmechanism,withacontinuoustradingmechanismenteringoperationinNovember2022.Participationintheintradaymarketisnotmandatory.Theintradaymarketaimstoreduceexposuretoimbalancecostsbyallowingparticipantstomodifyexistingpositions(e.g.generationschedule,loaddeclarations,etc.)closetothetimeofthephysicaldelivery,consideringdeviationsoftheday-aheadmarketscheduleandlimitationsonthebalancingmarket.Theauctiontradingmechanismconsistsofthreeauctionsperdeliveryday.SinceNovember2022,GreecehasbeenparticipatingintheEuropeanIntradayContinuousMarket;participationthePan-Europeanintradayauctionswillstartin2024.Marketparticipantsareallowedtosubmitorderstotheregionalintradayauctionsbetween-9999EUR/MWhand9999EUR/MWh.InSeptember2021,theintradaymarketstartedsupportingcomplementaryregionalintradayauctionscoveringtheelectricitymarketsofGreece,ItalyandSlovenia;theremainingcapacityoftheGreece-Italyinterconnectorhasbeenimplicitlyallocatedviathethreeavailableintradayauctionseversince.IEA.CCBY4.0.6.ELECTRICITY111ENERGYSECURITYFollowingapprovalfromtheEuropeanCommissioninJuly2022,anewtemporarymechanismisappliedintheGreekwholesalemarket(day-aheadandintraday–includingauctionsandcontinuoustrading),intendingtodecoupletheelectricitygenerationexchangepricefromthegaspriceandmitigatetheeconomicimpactonconsumers.Themechanism,whichisvaliduntil1June2023,introducesarevenuecaponproducers’incomethroughtheenforcementofpricecapsoneachpowergenerationsource(naturalgas,ligniteandrenewables)andisactivatedatthemarkets’settlementprocedure(asanexpostscheme–aimingtominimisetheimpactonthespotpriceformation)toautomaticallyreturntheexcessmarketvaluegeneratedfromhighwholesalepricestothenationalEnergyTransitionFund,whichsubsidisesthefinalconsumers.Thebalancingmarketincludesabalancingcapacitymarket(toensurethatsufficientreservesareavailable)andabalancingenergymarket(toactivateenergyinrealtimetoensurethatthesystemisinbalancewhilemeetingthedemandforenergyandreservesandrespectsalltechnicalplantoperationconstraints)andtheintegratedsettlementprocess(toallocaterevenuesandcostsofthebalancingmarkettomarketparticipants).AnotableshareofGreece’swholesaleelectricitysupplyisdeliveredviacross-borderinterconnections.Electricitytraderspurchaselong-termphysicaltransmissionrightstousethecross-borderinterconnectionsviaauctionsrunbytheTSO.Somecapacityisreservedfortheday-aheadmarket,wheretransmissioncapacityisallocatedtogetherwithelectricityimports.InNovember2022,continuousintradaytradingonGreek-ItalianandGreek-BulgarianborderswentlivethroughtheEuropeanXBIDproject.Withinthisframework,marketparticipantscantradeacrossborderscontinuouslyandclosertothedeliverytimetoimprovemarketschedulesandlowerimbalancecosts.MarketcompetitionA2020reportfromEureletric(theassociationofEuropeanutilities)notesthatGreecehadoneofthemosthighlyconcentratedelectricitymarketsinEurope,alongwith,forinstance,Croatia,IrelandandSlovenia(Eurelectric,2020).TheEuropeanUnionAgencyfortheCooperationofEnergyRegulators’2020marketmonitoringreportnotedthatGreecefacessignificantobstaclesthatpreventtheefficientformationofwholesaleelectricitypricesandlimitaccessfornewandsmallmarketparticipants(ACERandCEER,2021).TheHerfindahl-HirschmanIndex(HHI)forGreece’swholesalemarkethassignificantlyimproved.TheHHIforwholesalegenerationfellfrom7820in2015to4434in2020and4888in2021.Forgenerationcapacity,itdroppedfrom6804in2015to6350in2020and6054in2021.However,boththesevaluesindicatethatGreece’swholesalemarketremainsextremelyconcentratedandlackscompetition.4In2020,PPCwasthedominantwholesaleelectricitysupplier,accountingfor46.4%oftotalelectricitygenerationand45.9%ofinstalledcapacity.Thenextlargestshareofwholesalesupply(32.7%)camefromrenewableaggregators.UpcomingmarketdevelopmentsPan-Europeanintradayauctionsareplannedtogolivein2024.FortheGreekwholesalemarket,theintradayauctionswillbeanevolutionfromregionaltoEuropean-levelauctions.4TheHHIisanindicatorformarketcompetition.Itrangesbetween0foraninfinitenumberofsmallfirms(maximumcompetition)and10000foronefirmwitha100%marketshare(nocompetition).AnHHIabove2000signifiesahighlyconcentratedmarketwithasmallnumberoffirms.IEA.CCBY4.0.6.ELECTRICITY112Theintroductionoftheintradayauctionsshouldfurtherboostliquidityintheintradayauctions,optimisetheallocationoftheinterconnectorcapacity,provideintraday-levelcongestionpricingsignals,andfurtherincreasetheEuropeansocialwelfare.By2025,itisplannedfortheGreekday-aheadmarkettooffer15-and30-minuteordersinadditiontotheexisting60-minuteorders.Thisshouldimprovemarketparticipants’tradingoptionsandmarketschedules.Itshouldalsoallowrenewableaggregatorstofine-tunemarketschedulesandreduceimbalanceswithinthebalancingmarket,whichisalreadyusinga15-minuteresolution.RetailmarketGreecedoesnotregulateelectricityprices,whicharesetbymarketforcesformostconsumers.Consumersarefreetochoosetheirsupplier,andanycompanymayenterthemarketasasupplier.Allsuppliersmustpublishtariffconditions.TheRAEoperatesatariffmonitoringandsupervisionsystemforconsumerprotection.In2020,26supplierswereactiveintheretailelectricitymarketoftheinterconnectedelectricitysystem.However,theretailmarketisstilldominatedbyPPC,whichin2020accountedfor77.8%ofconnectionsand63.2%ofdemandatlowandmediumvoltageand96%ofdemandathighvoltage.However,PPC’smarketsharehasfallennotably,from96.3%ofdemandin2015.In2020,7.8%ofretailelectricityconsumers(accountingfor8.1%ofdemand)intheinterconnectedsystematlowandmediumvoltageswitchedsuppliers(Table6.5).ThisswitchingratewasaboveaverageforliberalisedretailelectricitymarketsinEurope.TheGreeksupplycodeallowsretailsupplierstounilaterallyswitchconsumersfromafixed-ratecontracttoavariableratecontractsixmonthsaftersendinganotification.Thishasbecomecommonpractice,resultinginastrongincreaseinretailpricesassupplierspasshighwholesalecostsdirectlyontoconsumers.TheGreeksupplycodealsoallowsconsumerstoswitchtoanewsupplierwithouthavingtopaythedebtswiththeircurrentsupplier.Table6.5SwitchingrateintheinterconnectedsysteminGreece,2020ConsumercategoryTotalcustomersSwitchingrate(number)Totaldemand(MWh)Switchingrate(volume)Household(excludingsocialtariff)48711228.69%138575933.58%Householdundersocialtariff4371370.01%18668351.48%Smallindustryandcommercial11702508.83%880616710.51%Otherlowvoltage3060550.87%30325090.78%Totallowvoltage67845647.80%275631055.34%Largeindustryandcommercial97578.40%856506217.75%Othermediumvoltage17131.46%14871934.23%Totalmediumvoltage114707.37%1005225515.75%Total67960347.80%376153608.12%IEA.CCBY4.0.6.ELECTRICITY113ENERGYSECURITYGreecetookimportantstepstoincreasetransparencyintheretailmarketafterthelastIEAEnergyPolicyReviewin2017.TheRAEissuedadecisionrequiringincreasedtransparencyonvariablepricingandadecisionprescribingtemplatesforpre-contractualinformationandfortheelectricitybill.TheRAEimproveditspricecomparisontoolanddevelopedaretailmonitoringtoolandapricingdatabase.TheRAEestablishedasanctioningprocessandpositivereportingofsuppliers,whichaccordingtotheRAE,hasprovedtobemoreeffectivethansanctionsforoverduepaymentstonetworkoperators.Thesocialtariff(establishedin2010)providesdiscountedelectricityratesforseveralcategoriesofeconomicallyorsociallyvulnerableresidentialconsumers.Thediscountedratesaresetbythegovernmentandvarydependingonthecategoryofconsumerandtheirlevelofelectricitydemand.In2022,therateswere0-70EUR/MWhforfourmonthsofdemandupto800kWh,40-80EUR/MWhforfourmonthsofdemandfrom0.8MWhto1.5-1.7MWh,and95EUR/MWhforfourmonthsdemandover1.5-2MWh(withtheupperlimitsdependingonthetypeofconsumer).Thesearenotablereductionscomparedtotheaverageretailpriceofapproximately240EUR/MWhin2021.Thesocialtariffisfinancedmainlythroughapublicserviceobligationfeechargedtoallelectricityconsumersthatdonotqualifyforthesocialtariff.Allelectricitysuppliersareobligedtoofferthesocialtarifftoqualifyingconsumers.Thegovernmentestimatesthatin2019,500000-550000householdsbenefitedfromthesocialtariff.Householdsandsmallcommercialconsumersthatareunabletofindasupplierontheretailmarketareservedbyasupplieroflastresort(thelargestsupplierinaDSOarea).RetailpricesandtaxesIn2Q2022,Greece’shouseholdpriceswerethetenth-highestintheIEAat272USD/MWh,withataxrateof-20%,comparedtoanIEAaveragepriceof255USD/MWhandanaveragetaxrateof16%.Industrypriceswerethesecond-highestintheIEAat243USD/MWh,withataxrateof-16%,comparedtoanIEAaveragepriceof174USD/MWhandanaveragetaxrateof5.2%(Figure6.7).RetailelectricitysalesaresubjecttoareducedVAT(6%insteadof24%)andanexcisedutyof2.2EUR/MWhforhouseholds,5.0EUR/MWhforsmallindustry(demandlessthan10GWhperyear)and2.0EUR/MWhforlargeindustry(demandgreaterthan10GWhperyear).LargeelectricityplantsarerequiredtopurchaseETSallowancesbasedontheirGHGemissions,withthesecostspassedontofinalconsumers.Electricityconsumersarealsosubjecttoafeethatfinancesthepublicserviceobligations,includingthesocialtariff,supplyingnon-interconnectedislandsatthesamepricesasthemainlandanddiscountedelectricitytoentitiesthatprovidesocialwelfare.ElectricityconsumersalsopayaSpecialDutyofGreenhouseGasEmissionsReduction(ETMEAR)tofundtheSpecialAccountforRenewableEnergySources,whichfinancessubsidiesforrenewableelectricityandhigh-efficiencyco-generationprojects.In2019,theETMEARwasreducedfrom23EUR/MWhandsetat17EUR/MWhthrough2028.Alsoin2019,theETMEARratewasreducedforagriculture,lignitemines,railroads,businessesandenergy-intensiveindustry,withthelowestrate(energy-intensiveindustry)setat2.55EUR/MWh.Electricitybillsarealsousedtocollectanationalradioandtelevisionfee(3.00EUR/month)andmunicipalandrealestatetaxes.ThenumerousfeesandchargesappliedtoelectricitybillscreateacomplexbillthatmakesitdifficulttodeterminehowIEA.CCBY4.0.6.ELECTRICITY114electricityconsumptionaffectsthetotalamountcharged,reducingtheincentivetosaveenergywhenelectricitypricesincrease.Lignite-firedgenerationownedbyPPCissubjecttoaspeciallignitefeeof2EUR/MWhbasedonnetelectricitygeneration.PPCisalsochargedaspecialtaxequalto0.5%ofitsannualturnover.Revenuefromthesetaxesisusedtosupportthecommunitiesimpactedbythephase-outoflignite-firedgenerationandassociatedmining.Figure6.7AnnualaveragehouseholdandindustryelectricitypricesinGreece,2Q2022HouseholdsIEA.CCBY4.0.IndustryIEA.CCBY4.0.Notes:IndustryandhouseholdpricesareunavailableforAustralia,Canada,MexicoandNewZealand.TaxinformationisnotavailableforIrelandortheUnitedStates.Source:IEA(2022c).InSeptember2022,thegovernmentintroduceda10EUR/MWhtaxforgasusedingas-firedelectricitygeneration.RevenuefromthetaxwillgototheEnergyTransitionFundtoreduceconsumerenergybillsandwillalsosupportinvestmentsinbiomethaneandlow-carbonhydrogenproductionprojectsandtheexpansionofnaturalgasinfrastructurethathelpsenddependenceonRussiangas.However,thistaxwillincreasegeneration,likelyresultinginhigherconsumerbills.-1000100200300400500600USD/MWhTaxcomponent-50050100150200250300USD/MWhTaxcomponentIEA.CCBY4.0.6.ELECTRICITY115ENERGYSECURITYElectricitypolicyGreece’senergypolicyaimstosubstantiallyreduceGHGemissionsfromtheelectricitysectortosupporttheachievementofclimatetargetswhilemaintainingsecurityofelectricitysupplyandensuringaffordableelectricityprices.Keypoliciesincludealegalrequirementtophaseoutlignite-firedgenerationby2028,atargettoincreasetheshareofrenewableelectricitygenerationto61%by2030,andgoalstoboosttheshareofrenewablesintransportandbuildingsthroughincreasedelectrification.GreecealsoaimstodecarboniseelectricitysupplyandincreasegridflexibilitythroughthedeploymentofelectricitystorageandDSRmeasures.Thegovernmenthasagoaltointerconnectallpopulatedislandstothemainlandgridby2030.Thegovernmentseesgas-firedgenerationasakeytechnologytosupportthereductionoflignite-firedgenerationwhilemaintainingdispatchablegenerationforsystembalancing.However,theroleofgasisbeingre-evaluatedfollowingtheRussianinvasionofUkraineandcontinuedgaspricevolatility.Greeceisalsoreducingnotablebarrierstolicensingandgridconnectionsforrenewableenergyprojects(seeChapter4).Therehavebeentwomajorupdatestolegislation(May2020andJuly2022)thataimtoreducethedurationofthelicensingprocessfromanaverageof5years(withsomeprojectstakingmuchlonger)to24months,tofacilitatethegrantingoflicencesto12GWofrenewableenergyprojectsby2030.TheJuly2022lawalsointendstodecreasegridcongestion,andtheTSOandDSOaremakingsignificantinvestmentstoexpandgridinfrastructureandreducethewaitingtimetoconnectrenewablesgeneration.MeasurestoaddresshighelectricitypricesStartinginthethirdquarterof2021,globalenergypricesbegantoincreaserapidly,especiallyinEurope.Pricespikesandhighvolatilitypersistedinto2022,drivenmainlybytheimpactsoftheRussianinvasionofUkraine.InDecember2021,theaverageday-aheadspotmarketpriceinGreecereached235EUR/MWh,comparedtojust52EUR/MWhinJanuary2021.Averageday-aheadmarketpricesremainedabove210EUR/MWhforallof2022andpeakedat436EUR/MWhinAugust2022(ArgusMedia,2022).Greeceistakingnumerousmeasurestolimittheimpactofhighenergyprices,especiallyforvulnerableconsumers.Theseincludeexpandingexistingmeasurestargetingenergypovertyandintroducingothermeasurestoreduceenergypricesformostconsumers.Greece’sEnergyTransitionFund(establishedin2021)supportsavarietyofsubsidiesforelectricity,naturalgas,heatingoilandroadtransportationfuelstocombatenergypovertyandreducetheimpactofhighenergyprices.Thefundisfinancedviaseveralsources,includingashareofETSallowancesandsurplusrevenuesfromfeesrelatingtopublicserviceobligationsandrenewablesupportmeasures.FromSeptember2021toNovember2022,GreecededicatedEUR9billiontoenergysubsidiesandothermeasurestohelpconsumerspaytheirutilitybills(Reuters,2022).InSeptember2021,thegovernmentestablishedaone-timefeeonprofitsearnedbygeneratorsinGreece’swholesaleelectricitymarketbetween1October2021and30June2022.TherevenuescollectedviathefeeweredirectedtotheEnergyTransitionFund.Thefeemainlyaffectedgenerationfromlignite,naturalgasandlargehydro,asitdidnotapplytorenewableenergyorco-generationassetsthatreceivesubsidiesorearntheirrevenueIEA.CCBY4.0.6.ELECTRICITY116outsidethewholesalemarket(TaxHeaven,2022).Thetotalrevenuefromtheone-timewindfallprofitfeeisaroundEUR500million.InJuly2022,thegovernmentintroducedwholesaleelectricitymarketpricecapstoinsulateconsumersfromcontinuedhighprices.ThecapsforgenerationfromnaturalgasandlignitearebasedonfuelcostsandETSallowancepricesandareadjustedonamonthlybasis.InDecember2022,thepricecapwas240EUR/MWhforgas-firedgenerationand200EUR/MWhforlignite-firedgeneration.Thepricecapsforlargehydropower(112EUR/MWh)andotherrenewables(85EUR/MWh)arefixed.RevenuethatelectricityproducersreceivefrompricesabovethesecapsisdirectedtothemanageroftheEnergyTransitionFundtobedistributedtoconsumers(Fintikakis,2022).InOctober2022,thegovernmentupdatedthesubsidyforelectricitybillspaidtoallconsumerstoathree-bracketsystem,withhighersubsidiesforlowerconsumptionlevelsandadditionaldiscountstorewardenergysavings.Forconsumerswithdemandfrom0kWh/monthto500kWh/month,thesubsidyis436EUR/MWh.Forconsumerswithademandof501-1000kWh/month,thesubsidyis386EUR/MWhbutcanbeincreasedto436EUR/MWhifdemandisreducedbyatleast15%comparedtothepreviousyear.Forconsumerswithdemandabove1001kWh/month(lessthan2%ofhouseholds),thesubsidyis336EUR/MWhbutcanbeincreasedto386EUR/MWhifdemandisreducedbyatleast15%comparedtothepreviousyear.Forbusinesseswithademandofmorethan2000kWh,thesubsidyis398EUR/MWh.Forconsumersreceivingthesocialtariff,thesubsidyis485EUR/MWhregardlessofthelevelofdemand.Farmerswillreceiveasubsidyof436EUR/MWh.ThegovernmentestimatesthesesubsidieswillcostaroundEUR1.1billion.Lignitephase-outUnderthe2022ClimateLaw,lignite-firedgenerationmustbephasedoutby2028.Greecehasalreadymadenotableprogressonthisgoal.From2010to2020,theshareoflignite-firedgenerationintotalelectricitygenerationfellfrom54%to14%.Theplantophaseoutlignite-firedgenerationaimsforincreasedgas-firedgenerationcapacitytotakeontheroleofbalancingelectricitysupplyanddemand(seeChapter7)whilealsostronglyexpandinggenerationfromrenewables(seeChapter4).PriortotheRussianinvasionofUkraine,PPCwasplanningtoclosemostlignite-firedgenerationby2023andtoconvertthenewestlignite-firedplant(stillunderconstruction)tonaturalgasby2025.InJune2022,thegovernmentandPPCannouncedthatthephase-outoflignite-firedgenerationwasbeingextendedto2028.Atthesametime,PPCnoteditwouldincreaseligniteextractionin2022from10Mtto15Mt,withtheadditionalcoaltoserveasasecurityreserveincaseofdisruptionsinRussiangasimports.TheNationalFairTransitionFund(establishedin2018andfinancedbyasmallshareofETSallowancerevenues)supportseconomictransitionintheregionsofGreecewhereligniteminingandpowergenerationareakeypartoftheeconomy(theFlorinaandKozaniregionsandtheMegalopolismunicipality).In2021,GreecewasallocatedEUR755millionfromtheEUJustTransitionFundtosupportregionsaffectedbythelignitephase-out.Severaloftheregionsimpactedbythelignitephase-outareseeingincreasinginvestmentinrenewablegeneration.InApril2022,the204MWKozanisolarPVprojectstartedoperating.Itissitednexttoseverallignitemines,isthelargestutility-scalesolarfarminsouth-easternEuropeandisthefirstphaseof3GWofsolarPVplannedtobebuiltinGreece’sligniteregions(BeyondCoal,2022).IEA.CCBY4.0.6.ELECTRICITY117ENERGYSECURITYRenewablegenerationandelectrificationofenergydemandGreece’senergypolicyaimstorapidlyacceleratetheuseofrenewableenergyandseesthisasessentialtoachievingits2030climatetargetsandlong-termgoalsfornetzeroemissions(seeChapter4).Thegovernmentaimstoboosttheuseofrenewablesacrosstheeconomy,mainlythroughastrongincreaseinrenewableselectricitygeneration(mostlywindandsolarPV),linkedtothewidespreadelectrificationofenergydemand,especiallyforbuildingheatingandcoolingandroadtransport.TheNECPhasatargetfor19GWofrenewablecapacity(excludinglargehydro)by2030versusaround9.6GWin2022.Greecehasrecentlymadeseveralsignificantchangestoitssupportschemeforrenewableelectricitygenerationthataimtoincreasetherateofdeploymentandensurelowelectricityprices.Anupdatedauctionsystemprovidessubsidiesforrenewablegenerationthatareawardedthroughcompetitiveauctionsandreflectmarketprices.Plannedauctionsaimtosupportthedeploymentof4.2GWofsolarPVandwindfrom2022to2025,withabudgetofEUR2.27billion.Greeceisalsoseeinganotableincreaseinrenewableenergyprojectsbeingdevelopedwithnosubsidiesthroughpowerpurchaseagreementsandotherlong-termcontracts.InAugust2022,theGreekparliamentapprovedthecountry’sfirstOffshoreWindLaw,whichaimsfor2GWofoffshorewindcapacityby2030.Thegovernmentisstillintheprocessofdevelopingtheregulatoryframeworkforoffshorewindandsettingupanauctionsystemthatwillawardsupportforoffshorewind.Greeceprovidesfinancialsupportfortheelectrificationofenergydemand(seeChapter3).ThisincludesdirectsubsidiesandtaxbreakstoencouragetheadoptionofEVsandthedeploymentofEVcharginginfrastructure.Thereareplanstoelectrifythewholerailnetworkandconnectbigportstorailway.SomeofGreece’ssupportmeasuresforbuildingrenovationsincludethesupport(subsidies,loans,taxbreaks,etc.)fortheelectrificationofheatingandcoolingdemand(includingwithheatpumps)andthedeploymentofrenewableelectricitygenerationonbuildings.SystemflexibilityGreeceisimprovinggridflexibilitytosupporttheintegrationofrenewablegeneration,alleviatenetworkcongestion,increasesystemflexibility,andpromotebalancingmarketliquidityandtransparentelectricitypriceformation.Keymeasuresincludeprogressivelydeployingsmartmeterstomostconsumersby2030,increasingsupportforenergystorageandincludingDSRinthebalancingmarket.GreeceisalsoaimingtoincreasesystemflexibilitythroughparticipationinthecommonEuropeanplatformsfortheexchangeofbalancingenergy,suchasMARI(ManuallyActivatedReservesInitiative),PICASSO(thePlatformfortheInternationalCoordinationofAutomatedFrequencyRestorationandStableSystemOperation)fortheexchangeofbalancingenergybymanualandautomaticfrequencyrestorationreserves,respectively,andtheIGCC(fortheprocessofclearingimbalances).SmartmetersGreecehasalimiteddeploymentofsmartmeters.However,theelectricityDSOplansforallconsumerstohaveasmartmeterby2030.Asof2021,13000smartmetershadbeendeployedatthemedium-voltageleveland70000atthelow-voltagelevel,mainlyforconsumerswithhighelectricitydemand.InJuly2022,theDSOannounceditwasworkingtofinaliseatenderprocesstoselectcompaniestodeployupto7.7millionsmartmeters,withadditionaltendersasneededtocompletethesmartmeterroll-out.ThetenderscoverIEA.CCBY4.0.6.ELECTRICITY118threeproducts:1)fieldequipment(meteringunitsandpoint-to-pointcommunicationequipment);2)advancedmeteringinfrastructuresystems(software);and3)meterdatamanagementsystems.In2022,100000smartmeterswereinstalled;theDSOestimatesthatthiswillincreaseto500000in2023andbetween800000and1millioneachyearfrom2024to2030.Thefullsmartmeterroll-outisexpectedcostaroundEUR1billion.TheRAEhasapprovedtherecoveryofthecoststhroughDSOtariffs(Mononews,2022).TheDSOwillcollectandmanageallsmartmeterdataandestablishrulesformarketactorstoaccessit.Customerswillaccesstheirowndatathroughaportal.DemandsideresponseHistorically,DSRhasplayedalimitedroleinGreece’selectricitysystem.From2016to2022,theTSOranauctionsforaninterruptibleloadservice,underwhichlargeconsumers(atleast3MWofdemand)connectedtothehigh-andmedium-voltagetransmissionsystemcouldreceivefixedpaymentstoreducedemandinsituationswhenthemarketdidnotsupportsystembalancing.GreeceaimsforDSRtoplayamuchlargerroleinsupportingefficientgridoperationsandintegratingwindandsolarPVgeneration.InOctober2022,GreecelaunchedanewplatformsupportingDSRparticipationintheelectricitybalancingmarket(whichreplacedtheinterruptibleloadservicesystem).Theplatformallowsconsumerparticipationofalldemandlevels,withdistributedDSRpossiblethroughtheaggregationofatleast1MWofDSRcapacity(seeChapter4).TheplatformisalreadyencouragingincreasedDSRparticipation.AsofJanuary2023,theRAE-approvedlicencesallowedtheprovisionofatotalof2950MWofDSRinthebalancingmarket,withthelargestlicencesgoingtoPPC(1000MW),Elpedison(500MW),Sympower(500MW),MYTILINEOS(500MW),Optimus(350MW)andNRG(100MW).LicenceshavebeenissuedtoseverallargeindustryconsumersalongwithseveralcompaniesthataggregateDSRfromnumeroussmallerconsumers.ThereisanongoingprocesstoupdateregulationstosupportDSRparticipationinallareasofthewholesaleelectricitymarket(asrequiredunderEUregulations).HEnEXispreparinganamendmenttotheDay-AheadandIntraDayMarketRegulationtoallowDSRparticipationinthesemarkets.TheRAEwillreviewtheamendment,andthegovernmenthasindicatedthatanupdatedregulationallowingDSRparticipationintheday-aheadandintradaymarketswillbeissuedin2023.EnergystoragePumpedhydrostorageplaysanotableroleinGreece’selectricitysystemandmarkets,andthereareplanstoincreaseelectricitystorgecapacity.AsofJune2022,Greecehadtwolarge-scalepumpedhydrostoragefacilitiesinoperation:Thissavros(0.38GW)andSfikia(0.33GW).ThereiscurrentlyverylittlebatteryenergystorageinGreece.Attheendof2021,theRAEhadissuedatotalof181licencesforelectricitystorageprojectswithatotalcapacityof14.3GW,including14pumpedstorageprojectswithatotalcapacityof3GW.AlawpassedinJuly2022setsagoalforthedeploymentof3.5GWofenergystorage(excludinglargehydro)by2030,anotableincreasefromtheNECPtargetof1.4GWofstorageby2030.Greecehascreatedadedicatedaidschemeforenergystorageprojects,whichtheEuropeanCommissionapprovedinSeptember2022.IthasabudgetofEUR341million(partlyfundedbytheEURecoveryandResilienceFacility)tosupporttheconstructionandoperationofaround0.9GWofelectricitystorageconnectedtothehigh-voltagegrid.TheIEA.CCBY4.0.6.ELECTRICITY119ENERGYSECURITYsupportwillbeawardedthroughacompetitiveauctionwhichwilltakeplacebeforetheendof2023.Selectedprojectsshouldbecompletedbytheendof2025.Theaidwillbegrantedasaninvestmentgrantpaidduringtheconstructionphaseandtenyearsofannualsupportpaidduringprojectoperations.Theannualsupportwillbebasedonsubmittedbidsbutcanbereducediftheprojecthasexcessmarketrevenues(EC,2022).TheJuly2022lawalsomadechangestoclarifyandacceleratethelicensingprocessforenergystorageprojects.Itcreatesclearlegalandregulatorydefinitionsforenergystorage,includingoptionsforstand-alonestorageandstorageincorporatedwithrenewablegeneration.Thelawexpandsthepotentialrevenuestreamsforstorageprojectsbygivingthemtherighttoparticipateintheintradayandbalancingmarkets(previouslystoragewasonlyallowedtoparticipateintheday-aheadmarket).ThelawallowstheTSOtodeployandoperateenergystoragewiththeapprovaloftheMoEE(inwhichcasethestorageassetscannotparticipateinthemarketbutonlysupportgridoperations)oriftheRAEdeterminesthatthereisarelevantneedthatcannotbemetbythirdparties.ThelargestongoingenergystorageprojectinGreeceisthepumpedstoragehydrofacilityatAmfilochia,withacapacityof0.68GWforgenerationand0.73GWforpumping.TheprojectcostisestimatedatEUR550million,withEUR250millioncomingfromtheEURecoveryandResilienceFacility.ConstructionbeganinNovember2022anditisexpectedtostartoperationsby2025.Greeceisalsostartingtodeploylarge-scalebatterystorage.ElectricitysecurityTheRAEisresponsibleforelectricityemergencypolicy,includingmonitoringthesecurityofelectricitysupply.TheRAEhasbeenappointedastheCompetentAuthorityfortheimplementationofEURegulation2019/941,whichsetsrequirementsforallEUmemberstatesinrelationtoriskpreparednessintheelectricitysector.TheRAEisresponsiblefordevelopingnationalcrisisscenariosanddraftingariskpreparednessplan,whichwassupposedtobepublishedby5January2022;accordingtothegovernment,theriskpreparednessplanisstillunderdevelopment.ThegovernmentispreparinganemergencyplantosaveenergyintheeventofaprolongedinterruptionofRussiangassupplies(Todorović,2022).Thisplaninvolvesmeasurestocutelectricityconsumptioninpublicbuildings,withlimitsontheuseofairconditioners,lightsandelectricalappliances,andsettingthetemperatureat26-27°Cinthesummerand19-20°Cinthewinter.Forextremelimitationsingassupply,rollingpoweroutagesareenvisagedonworkdaysandlimitstoelectricitysupplyforenergy-intensiveindustriesandcompaniesinthemedium-voltagenetworkthatarenotinthesupplychainforbasicnecessities.Greecehasnumerousmeasuresinplacetoensuretheavailabilityofgenerationinanemergency.TheTSOcontrolcentrehasadefenceplanthatprovidesguidelinesandoperationprinciplesforemergencies.Inanemergency,theTSOincreasesoperatingreservecapacitythroughmeasuressuchasprocurementofbalancingcapacity.Automatedload-sheddingstrategiescanbeactivatedinco-operationwiththeDSOwheneverthesystemoperatordeemsitappropriate.Thereisastrongfocusonmaintainingasecuresupplyofnaturalgas,asgas-firedpowerplantsprovidethelargestshareofgeneration(41%in2021)andplayakeyroleinIEA.CCBY4.0.6.ELECTRICITY120electricitysystembalancing.OneofthekeygoalsofGreece’sgasemergencyresponsepolicyismaintainingsupplyforelectricitygeneration(seeChapter7).Gas-firedelectricityplantsarerequiredtosubmitanannualreporteachOctobertotheRAEdetailinghowtheyhavesecuredadequategassupplies,especiallyduringthewinterperiod(fromDecembertoFebruary).IftheRAEhasconcerns,itcanasktheplantownertotakeadditionalstepstoensureadequategassupplies.Greecedoesnothavelarge-scalegasstorage;however,asmallshareofstoragecapacityattheLNGterminalisreservedforelectricitygenerationinemergencysituations.TheamountofLNGsecurityreservesiscalculatedforeachobligatedholderofanelectricitygenerationlicenceandmustcover16hoursperdayfor5daysforeachpowerplant.Forthewinterof2021/22,theLNGsecurityreservetotalled67.2m3ofLNG(around0.04millioncubicmetres[mcm]ofnaturalgas).Toensuresecure24-houroperations,theLNGterminalhasanonsiteco-generationunitand,asabackup,canbesuppliedthroughtwoindependent20kVdistributionlines,eachofwhichisabletofullymeettheelectricitydemandoftheterminal.FollowingtheRussianinvasionofUkraine,GreeceistakingstepstoensuregassupplyincaseRussianimportsarenolongeravailable.InSeptember2022,DEPACommercialreachedanagreementwithTotalEnergiesofFrancethatallowsfordeliveriesoftwoLNGcargoeseachmonththroughMarch2023.Thegovernmentestimatesthiscouldsubstitutealmost100%ofGreece’sgasimportsfromRussia(Ekathimerini,2022).InresponsetoRussia’sinvasionofUkraineandnewEUrequirementsongasstorage,GreecehasagreedwithItalytostore100mcmofgasinastoragefacilityinItaly.Thisvolumeisequalto1.6%ofGreece’sannualdemand.GreeceandItalyarelinkedbytheTrans-AdriaticPipeline(TAP)gaspipelineandinanemergencysituation,theTAPcansupportreserveflows(virtualorreal)toGreece.Incaseofagassupplycrisis,thesecurityofelectricitysupplyissupportedbyfivegas-firedpowerplantsthatcanswitchfromnaturalgastodiesel.Theseplantsareobligatedtoensureuninterruptibleoperationusingdieselforatleastfivedaysunderpartialloadandmustkeeptheneededlevelofdieselstoredonsite.Theseplantshaveatotalgenerationcapacityof2.0GWwhenfuelledwithgasand1.8GWwhenfuelledwithdiesel(comparedtoapeakdemandofGreeceof8.6GWin2020).Greecehasalsotakenstepstoallowlignite-firedgenerationtoreplacegasduringasupplyemergency.FollowingtheRussianinvasionofUkraine,PPCdelayedthephase-outoflignite-firedgenerationandincreasedthestockpilingoflignite.Greeceisalsotakingstepstoensurethecybersecurityoftheelectricitysystem.In2020,thegovernmentadoptedacybersecuritystrategyfortheperiod2020-2025,whichdetailsmeasurestoprotectnetworkandinformationsystemsforallcriticalinfrastructure,includingtheenergysector.TheNationalCybersecurityAuthorityattheMinistryofDigitalPolicyisthecompetentauthorityfortheimplementationofthenationalcybersecuritystrategy.Forcybersecurityissuesrelatedtotheenergysector,theNationalCybersecurityAuthorityconsultswiththeMoEE,theRAE,theHellenicCentreforSecurityStudiesandtheHellenicNationalDefenceGeneralStaff.TheelectricityTSOhastakenvariousmeasurestostrengthencybersecurity.IEA.CCBY4.0.6.ELECTRICITY121ENERGYSECURITYSystemperformanceFrom2016to2020,theSystemAverageInterruptionFrequencyIndex(SAIFI)5,SystemAverageInterruptionDurationIndex(SAIDI)6andlossesforGreece’selectricitydistributionsystemfluctuatedwithnocleartrendofimprovingordecliningperformance(Table6.6).SAIFIimprovedfortheelectricitytransmissionnetwork,whileSAIDIworsened(Table6.7).TheseareamongthelowervaluesinEurope,indicatingnotableroomtoimprovesystemperformance(Eurelectic,2019).Table6.6DistributionnetworkinterruptionstatisticsinGreece,2016-202020162017201820192020NotincludingexceptionaleventsSAIFI1.471.511.622.061.6SAIDI9697119140111IncludingexceptionaleventsSAIFI2.031.952.032.571.99SAIDI132131173190146Losses(%ofannualenergyinjection)Losses9.7%9.3%9.7%9.9%9.8%Table6.7TransmissionnetworkinterruptionstatisticsinGreece,2017-2020Metric2017201820192020SAIFI0.3100.900.2200.190SAIDI18.4125.2224.1222.03AssessmentGreeceaimstoreducegreenhousegasemissionsfromtheelectricitysector.Greecemaintainsanambitiouslignitedecommissioningplan,despitetheshort-termdecisiontoincreaseligniteextractionandgenerationforsecurityofsupplyreasons.Theroleofnaturalgasintheelectricitysectorisbeingre-evaluatedfollowingtheRussianinvasionofUkraineandthesharpandsustainedincreaseingasprices.Nexttodecarbonisingelectricitysupply,Greecealsoaimstoincreasesystemflexibilityandgrowexportsofrenewableelectricitythroughmajorgridinvestments(includingforcross-borderinterconnections),reformstoreducedelaysinlicensingofrenewableprojects,changesinmarketrulestoallowfullparticipationofrenewablesandthe5SAIFIisasystemindexofaveragefrequencyofinterruptionsinpowersupply,measuredasatotalnumberofinterruptionsdividedbythenumberofallcustomers.6SAIDIisasystemindexofaveragedurationofinterruptioninthepowersupplyindicatedinminutespercustomerperyear.Itismeasuredbymultiplyingtheaveragedurationofcustomerinterruptionsbytheirtotalnumberthendividingbythetotalnumberofcustomersinthesystem.IEA.CCBY4.0.6.ELECTRICITY122deploymentofenergystorage,anddemandsideresponse.Extendingthegridtonon-interconnectedislandsisamajorprioritytoreducetheuseofoil-firedgeneration.WholesaleelectricitymarketsGreeceismakingmajorchangestoitswholesaleelectricitymarketregulationtoalignitwiththeEuropeancommonwholesaleelectricitymarketandensuremorecompetitiveandefficientwholesaleelectricitytrading.WhiletheHHIforGreece’swholesalemarkethasimproved,itstillindicateshighconcentrationandlowcompetition.Greecehassuccessfullycompletedanumberofreformsinthewholesaleelectricitymarketinthelastfiveyears(electricitymarketdesign,unbundlingofelectricityandgasTSOs).Greecehasalsostartedtosuccessfullyimplementitsrecoveryandresilienceplanwithsignificantreformsandinvestmentintheelectricitymarket.In2022,severalreformswerecompleted,likedemandsideresponseparticipationinthemarketandsimplificationofrenewablespermitting.MorereformsandinvestmentsareneededforGreecetoachieveitsambitiousplansregardingthegreentransitionwhileaddressingthesignificantgeopoliticalchallengesandincreasedenergyprices.Ensuringsecurityofsupplywhileincreasingcompetitioninthemarketsandensuringaffordablepricesforvulnerableconsumersintheshort,midandlongtermareessential.Greeceplanstocompletethewholesaleelectricitymarketdesignreforms.Theday-aheadmarketisthemainmarketsegmentwithsufficientliquiditybecauseofthemandatoryparticipationofelectricityproducers(apartfromrenewables).Reformsarestillpendingintheintradayandbalancingsegments.Intheshortterm,reformsintheintradaymarketareahighprioritytofurtherenhancecompetitionthroughtheintegrationofrenewablesandDSR(includingviaaggregators)andthefullparticipationofelectricitytraders.GreecewasintegratedintothePan-Europeanintradaycoupling(XBID)inNovember2022,allowingclosertoreal-timeparticipationofallplayers.AlongwithcouplingwithinEUborders,GreeceismakingeffortstoincreasecouplingthroughintradayauctionsoutsidetheEuropeanUnion(Albania,NorthMacedoniaandTürkiye).Thiswillallowallocatingtheremainingday-aheadcross-zonalcapacitytothemarketparticipants,whoareexpectedtomanagetheirmarketpositionsmoreefficientlyclosertoreal-timedelivery.ThebalancingmarketneedstobefurtherimprovedtofullyalignwiththeEUlegalframeworkandreducethebalancingcosts.AccordingtoanRAEdecision,renewableswillbeabletoparticipateasbalancingserviceprovidersinthemarketfromOctober2022(formanualfrequencyrestorationreserve)andJanuary2023(forautomaticfrequencyrestorationreserve).FurtherreformsinthebalancingmarketareplannedbasedonthedraftmarketreformplanGreecesubmittedtotheEuropeanCommission.Forwardmarketliquidityisstilllow.SuppliershavemadelittleuseoftheforwardmarketoperatedbytheHellenicPowerExchange.ThelimitedhedgingopportunitieshaveleftsuppliersinGreeceveryexposedtotherecentincreasesinwholesaleelectricityprices,whichhavebeenpassedontofinalconsumers.Moreeffortswillbeneededtoimprovehedgingopportunitiesformarketparticipants.Thegovernmentcouldconsiderintroducingarequirementforretailerstocoverasignificantshareoffixed-pricecontractswithlong-termcontracts.Thiscouldincreasedemandandliquidity.Greecehasincreaseditsambitiononenergystoragefrom1.4GWin2022to3.5GWby2030tohelpmeetincreasedambitionsforrenewabledeployment.AlawpassedinIEA.CCBY4.0.6.ELECTRICITY123ENERGYSECURITYJune2022madechangestoclarifyandacceleratethelicensingprocessforenergystorageprojects.Itcreatedclearlegalandregulatorydefinitionsforenergystorage,includingoptionsforstand-alonestorageandstorageincorporatedwithrenewablegeneration.Thelawexpandsthepotentialrevenuestreamsforstorageprojectsbygivingthemtherighttoparticipateintheintradayandbalancingmarkets.Thegovernmentneedstocloselymonitorthedeploymentofenergystorage(especiallybatterystorage)andtakestepsasneededtoensurethatrapiddeploymentstartssoon.Supportschemesareneededtoencouragethedeploymentofdistributedstorage.GreecehascompletedanumberofinvestmentsthatconnectislandstomainlandGreece.Cross-borderinterconnectionsarealsointhepipeline,likethesecondinterconnectionbetweenGreeceandBulgariaandtheEurasiainterconnector.Internalgridreinforcementsarecrucialforsystemsecurityandfurtherrenewablespenetration.Constructionofnewtransmissionlines,constructionofnewhigh-voltageandextrahigh-voltagesubstations,reinforcementofexistingHVandEHVsubstations,reinforcementandreroutingof150KVgridarepartsoftheTSO’snationalTen-yearDevelopmentPlan.Fornon-interconnectedislands,Greeceshouldconductacost-benefitanalysiscomparingtheinterconnectionofislandswiththedeploymentofstorageonislands.Currently,Greeceisplanningtodeploybothsolutions(connectionandstorage)formostislands,whichmaynotalwaysbethemostcost-effectivesolutionforclean,secureandaffordableelectricityforallislands.Legislationpassedin2019callsforthecreationofanewcapacityremunerationmechanismthatwillawardcapacitypaymentsthroughcompetitiveauctionsrunbytheTSO;however,themechanismhasnotbeenimplementedandmaynotbeneeded.Morestepsarerequiredbeforesuchamechanismisimplemented,includingaresourceadequacyassessmentfollowedbyastateaiddecisionbytheEuropeanCommissionandanupdatedmarketreformplan.TheannualmarketmonitoringreportsoftheEuropeanUnionAgencyfortheCooperationofEnergyRegulatorsandtheCouncilofEuropeanEnergyRegulatorsbothindicatethatGreecedidnotconvincinglydemonstratethatithadresourceadequacyissuesjustifyingtheintroductionofacapacityremunerationmechanism(ACERandCEER,2022).GreeceisencouragedtosubmitthefinalmarketreformplantotheEuropeanCommission,takingintoaccounttherecentenergydevelopmentsfollowingtheRussianinvasionofUkraine.RetailelectricitymarketsTherehavebeenpositivestepsinthedevelopmentofcompetitionintheGreekretailmarket,butPPC’smarketshareisstillsubstantial.HighenergypricesputadditionalpressureonsmallsuppliersaswellasrisksthatmayleadtotheirexitfromtheGreekmarket.GreecehasnotyetfullytransposedtheEUrulesonretailmarkets,inparticularthoseonconsumerempowermentandprotection,aggregation,dynamicprices,anddemandresponse.Electricitybillsarestillcomplexandincludeseparatechargesforelectricity,transmissionanddistributioncharges,levies,taxes,andnon-energyrelatedchargessuchastelevisionandmunicipalitycharges.Thetaxshareoftheelectricitypricedecreasedfrom19.3%in2017to11.9%in2022,remaininganimportantpartofthebillgiventhehighenergyprices.Greeceshouldconsidereliminatingnon-energycomponentsfromelectricitybills.IEA.CCBY4.0.6.ELECTRICITY124GreecehastakenseveralmeasuressinceOctober2021toaddressthehighenergypricestohelphouseholdsandsmallenterprises.Themeasuresincludesubsidiestoreduceelectricitybills,aone-timefeeonexcessprofitsofelectricitygeneratorsandcapsonwholesaleelectricityprices.Greekauthoritiesshouldcloselymonitortheimpactofthesemeasuresonthewholesaleandretailmarkets(notablyforCCGTs)andadjust,wherenecessary,prioritisingothermeasureswithnoregulatedpriceelements(e.g.directsubsidies,taxreductions).Thegovernmentshouldconsidereliminatingthetaxongasusedforelectricitygeneration.Thetaxseemsintendedtohelpreduceelectricitybills,butitwillmostlikelyincreasethecostofelectricity,frustratingtheintendedgoal.RecommendationsThegovernmentofGreeceshould:Acceleratethependingreformsintheelectricitysectortoachievethegreenenergytransitioninajustandcost-efficientwaywhilemaintainingsecurityofelectricitysupply.Establishandimplementthelegalandregulatoryframeworksforsmartgrids,energystorage,offshorewindandrenewablehydrogen.Empowerandprotectconsumersbycompletingtherelevantlegalandregulatoryframeworks.Enabletheparticipationofprosumersanddemandresponseintheelectricitymarketsbyacceleratingthenecessaryinfrastructure,especiallysmartmeters.Simplifyelectricitybillsbyremovingallnon-energyrelatedcosts.IEA.CCBY4.0.6.ELECTRICITY125ENERGYSECURITYReferencesACER(EuropeanUnionAgencyfortheCooperationofEnergyRegulators)andCEER(CouncilofEuropeanEnergyRegulators)(2021),AnnualReportontheResultsofMonitoringtheInternalElectricityandNaturalGasMarketsin2020:Snapshotofthe10thMarketMonitoringReport,https://acer.europa.eu/en/Electricity/Market%20monitoring/Documents/MMR%202020%20Summary%20-%20Final.pdfACERandCEER(2022),ACER-CEERMarketMonitoringReport(MMR),https://www.acer.europa.eu/electricity/market-monitoring-reportAposporis,H.(2022),Greece’sIPTOplansnewpowerinterconnectionsinBalkans,BalkanGreenEnergyNews,https://balkangreenenergynews.com/greeces-ipto-plans-new-power-interconnections-in-balkansArgusMedia(2022),Greecetotaxpowergenerators’windfallprofits,https://www.argusmedia.com/en/news/2330224-greece-to-tax-power-generators-windfall-profitsBeyondCoal(2022),HellenicHope:RapidSolarBuild-OutTransformsGreece’sCoal-LadenValleyofTears,https://beyond-coal.eu/2022/07/27/hellenic-hope-rapid-solar-build-out-transforms-greeces-coal-laden-valley-of-tearsEC(EuropeanCommission)(2022),Stateaid:CommissionapprovesGreekschemeunderRecoveryandResilienceFacilitytosupportdevelopmentofelectricitystoragefacilities(pressrelease),https://ec.europa.eu/commission/presscorner/detail/en/ip_22_4582EIB(EuropeanInvestmentBank)(2021),Greece:EUR330millionEIBbackingtoPPCtoupgradeelectricitydistribution,roll-outsmartmetersandincreaserenewableenergy(pressrelease),https://www.eib.org/en/press/all/2021-220-eur-330-million-eib-backing-to-ppc-to-upgrade-electricity-distribution-roll-out-smart-meters-and-increase-renewable-energy-across-greeceEkathimerini(2022),GreeceendingRussiangasdependence,https://www.ekathimerini.com/economy/1194482/greece-ending-russian-gas-dependenceEurelectric(2020),DistributionGridsinEurope:FactsandFigures2020,https://cdn.eurelectric.org/media/5089/dso-facts-and-figures-11122020-compressed-2020-030-0721-01-e-h-6BF237D8.pdfEurelectic(2019),Valueofthegrid,https://www.eurelectric.org/news/value-of-the-gridFintikakis,G.(2022),ThemechanismforwholesaleelectricityandcapspertechnologyhasbeenofficiallyapprovedbyBrussels–Pricesforwater,RES,gas,lignite,EnergyPress,https://energypress.gr/news/egkrithike-kai-episima-apo-vryxelles-o-mihanismos-gia-ti-hondriki-toy-reymatos-kai-ta-plafonIEA(InternationalEnergyAgency)(2022a),WorldEnergyBalances(database),https://www.iea.org/data-and-statistics/data-product/world-energy-balances(accessedon15June2022)IEA(2022b),OECDEnergyPricesandTaxesQuarterly(database),https://iea.org/data-and-statistics/data-product/oecd-energy-prices-and-taxes-quarterly(accessedon15June2022)IEA(2022c),EnergyPrices(database),https://www.iea.org/data-and-statistics/data-product/energy-prices(accessedon20June2022)Kokalova,G.(2022),GreecetoexpandelectricitylinkswithN.Macedonia,Bulgaria,Albania,SeeNews,https://seenews.com/news/greece-to-expand-electricity-links-with-n-macedonia-bulgaria-albania-802485Mononews(2022),HEDNO:Thebusinessof1billioneuroswithsmartmeters–Allthebackgroundwithnames,https://www.mononews.gr/business/deddie-i-business-tou-1-dis-evro-me-tous-exipnous-metrites-olo-to-paraskinio-me-onomataIEA.CCBY4.0.6.ELECTRICITY126Reuters(2022),Greecetotaxpowerfirmsonwindfallprofitsfromhighergasprices,https://www.reuters.com/business/energy/greece-tax-power-firms-windfall-profits-higher-gas-prices-2022-11-03TaxHeaven(2022),RIS/DHE/87027/2890/2022Speciallevyonelectricityproducers,https://www.taxheaven.gr/circulars/40568/ypen-dhe-87027-2890-2022Todorović,I.(2022),GreecepreparingforrollingpoweroutagesifRussiacutsoffgas,BalkanGreenEnergyNews,https://balkangreenenergynews.com/greece-preparing-for-rolling-power-outages-if-russia-cuts-off-gasIEA.CCBY4.0.127ENERGYSECURITY7.NaturalgasKeydata(2021)Domesticproduction:0.004bcmofnaturalgas,-33%comparedto2011Netimports:6.4bcm,+35%comparedto2011Shareofgas:41%ofelectricitygeneration,27%oftotalenergysupply,15%ofheatgeneration,9.7%ofTFCDomesticdemand:6.4bcm,+38%comparedto2011Demandbysector:electricityandheatgeneration68.6%,industry19.2%,residentialbuildings9.2%,servicesectorbuildings2.6%,transport0.4%OverviewNaturalgasisplayinganincreasingroleintheGreekenergysystem.From2011to2021,naturalgasdemandincreasedfrom4.7bcmto6.4bcm,drivenmainlybyatransitionfromlignite-firedgenerationtogas-firedgeneration,alongwithincreasedgasdemandfromindustryandbuildings.In2021,naturalgascovered41%ofelectricitygenerationand27%ofTES.In2021,gascovered22%ofindustryenergydemand,11%ofbuildingenergydemandand9.7%oftotalfinalconsumption(Figure7.1).Greecehasonlylimiteddomesticgasproduction,just0.004bcmin2021,andmostofthegassupplyisimported.ThegassectorhasundergonemajorchangessincetheIEA’slastEnergyPolicyReviewofGreecein2017.Theretailgasmarketwasliberalisedin2018.Awholesalegas-tradingplatformwasintroduced,andasmallbutincreasingshareofgassupplyistradedthroughtheplatform(5.6%inMarch2022).DEPA,thestate-controlledincumbentgassupplierthatownedmostgasinfrastructure,wasbrokenupintoseveralcompanies,separatingcommercialsupplyactivitiesfromownershipofinfrastructure,andtherehasbeenanotableincreaseinmarketcompetition.ThefutureofnaturalgasintheGreekenergysystemremainsunclear,withmajorstepsbeingtakentoreducegasdemandinlinewithclimateandsecuritygoalswhileatthesametime,largeinvestmentsareplannedtoexpandgasinfrastructure,whichcouldleadtohighergasdemand.TheNECPandotherplanningdocumentsgivenaturalgasamajorroleinreducingemissionsbysubstitutinglignite-firedgenerationandexpandingthegasnetworktoreduceoildemandfrombuildingheatingandindustry.Thegovernmentseesgas-firedgenerationasakeytechnologytosupportsystembalancingasligniteisphasedIEA.CCBY4.0.7.NATURALGAS128outandtheshareofvariablegenerationfromwindandsolarPVincreases.TheNECPalsocallsforincreasedgasimportandexportcapacitytopromoteGreeceasaregionalgashub.Thegovernmenthaslong-termgoalsfordecarbonisingthegassupplywithhydrogenproducedusingrenewableelectricityandwithbiomethane.FollowingtheRussianinvasionofUkraineandthesustainedincreaseingasprices,thegovernmentisevaluatingtheroleofgasintheenergysystemandtakingstepstoreducerelianceonRussianenergyimports.Theseincludestepstoreducegasdemandintheshortterm,suchasfuelswitchingatindustrialsitesandofstockpilinglignite,andmeasurestoreducelong-termgasdemand,includingincreasedsupportforrenewablesandenergyefficiency.ThegovernmentindicatesthatGreece’srelianceonRussiangashasbeenreducedfrom40%toaround20%ofsupplyin2022andthatmeasuresareinplacetoensuregassupplyifnogasisavailablefromRussia.Figure7.1ShareofnaturalgasinGreece’senergysystem,2005-2021IEA.CCBY4.0.Source:IEA(2022a).Gasdemand,supplyandtradeFrom2011to2021,naturalgasdemandincreasedfrom4.7bcmto6.4bcm(Figure7.2).Thisincreasewasdrivenbyhigherdemandforgas-firedelectricity(2.9bcmto4.4bcm)causedbythephase-outoflignite-firedgeneration.Overthisperiod,gasdemandalsoslightlyincreasedintheindustrysector(from1.17bcmto1.24bcm)andinresidentialbuildings(from0.4bcmto0.6bcm),whilegasdemandinservicesectorbuildingsremainedrelativelyconstantataround0.2bcm.Thegovernmenthadforecastanincreaseinnaturalgasdemandinallsectors,withanexpectationthattotaldemandfornaturalgascouldincreaseby35%by2030comparedto2020.However,thisforecastisunderrevisionfollowingthesharpincreaseingaspricessincethethirdquarterof2021anddecisionstoacceleratethedeploymentofrenewablesandenergyefficiencymeasures.FromJanuarytoSeptember2022,gasdemanddroppedbyalmost15%,drivenmainlybyfuelswitchingintheindustrialsector.0%5%10%15%20%25%30%35%40%45%ShareofnaturalgasElectricitygenerationTotalenergysupplyIndustryBuildingsTotalfinalconsumptionIEA.CCBY4.0.7.NATURALGAS129ENERGYSECURITYFigure7.2NaturalgasdemandbysectorinGreece,2005-2021IEA.CCBY4.0.Source:IEA(2022a).Greecehasonlymarginalgasproductionandcoversalmostallgasdemandwithimports.From2011to2021,Greece’sgasnetimportsincreasedby35%,from4.8bcmto6.4bcm(Figure7.3).ImportsfromRussiaviapipelinehavehistoricallyaccountedformostgasimports,rangingfrom54%to85%ofimportsbetween2005to2018.ThecapacityofGreece’sLNGterminalwasexpandedin2018,supportinganotableincreaseinLNGimports(Figure7.4).TheincreaseinLNGcapacitysupportedadiversificationofimportsandresultedinanotablereductionintheshareofimportsfromRussia,whichdroppedto41%(2.6bcm)in2021and17%(1bcm)in2022.Greece’sLNGimportcapacitynotablyincreasedinAugust2022withtheadditionofanewfloatingstorageunit.TheincreasedLNGdeliveriesandthestartofcommercialoperationsofanewpipelineinterconnectiontoBulgariahaveledtoanotableincreaseingasexports,mainlytoBulgaria.Greece’sgasexportstoBulgariahaveincreasedfromjust0.008bcmin2018to0.92bcmin2022.GasexportstoItalyincreasedfrom6.9bcmin2021to9.7bcmin2022.Greece’sdomesticgasproductionissmallandhasdeclinedsubstantiallyfromapeakof0.036bcmin2002tojust0.004bcmin2021(comparedtoagasdemandof5.8bcmin2020).GasisproducedfromtheoffshorePrinosandSouthKavalafieldsinnorthernGreece,withgasreservesinthesefieldsestimatedat0.073bcm.Mostdomesticgasproductioniseitherreinjectedtoboostoilproductionorusedtomeetenergydemandsatoilproductionsites.GreecehasannouncedthatitwilltakestepstoincreasedomesticgasproductiontoreducerelianceonRussianimports.Figure7.3Greece’snaturalgasnettradebycountry,2005-2021IEA.CCBY4.0.Source:IEA(2022a).01234567bcmServicesbuildingsResidentialbuildingsIndustryElectricityandheatgeneration01234567bcmNigeriaOtherNorwayEgyptTürkiyeQatarAlgeriaUnitedStatesRussianFederationNetimportsIEA.CCBY4.0.7.NATURALGAS130Figure7.4Greece’snaturalgasimportsbysource,2005-2022IEA.CCBY4.0.Datafor2021areprovisionalanddatafor2022wereprovidedbytheGreekadministration.Source:IEA(2022a).InfrastructureIn2022,therewerethreenaturalgaspipelinesystemsoperatinginGreece,eachwithseparateentry-exitsystems:theNationalNaturalGasTransmissionSystem(NNGTS),theTrans-AdriaticPipelineandtheInterconnectorGreece-Bulgaria(IGB)pipeline(Figure7.5).TheNNGTSisdesignedmainlytoreceiveimportstomeetdomesticgasdemand.TheTAPrunsthroughGreecefromtheborderwithTürkiyetoAlbaniaandthentoItaly.TheTAPisamajorsourceofgasimportstoEuropefromAzerbaijan.TheIGB,whichstartedoperatinginOctober2022,supportsgasdeliveriestoBulgaria.ThereareplanstoconnecttheIGBtotheNNGTS,butthisrequirestheconstructionofanewcompressorstationinGreecethatisexpectedtostartoperatinginlate2024.01234567200520062007200820092010201120122013201420152016201720182019202020212022bcmLNGPipelineIEA.CCBY4.0.7.NATURALGAS131ENERGYSECURITYFigure7.5NaturalgasinfrastructureinGreeceImport/exportIn2022,Greece’sNNGTShadfourentrypointssupportinggastrade.ThelargestistheRevithoussaLNGterminal,whichwasupgradedin2018andagainin2022toincreaseimportcapacitytoaround7bcm.TheKipicross-borderpipelineinterconnectionsupportsimportsfromTürkiye.TheSidirokastrocross-borderpipelineinterconnectionsupportsbidirectionalflowsbetweenGreeceandBulgaria.TheNeaMesimvriaentrypointstartedoperationin2020andconnectstheNNGTStotheTAPnearThessaloniki.In2022,theSidirokastro,NeaMesimvriaandKipientrypointshadacombinedimportcapacityofaround5.4bcmduetocongestionissuesonthenorthernpartoftheNNGTS.TheTSOisplanningtoaddtwonewcompressorstationstoremovetheserestrictions,whichcouldincreasetotalimportcapacityto13.5bcm.ThereareseveralongoingorplannedprojectsaimingtodevelopadditionalLNGterminalstoboostimportcapacityandallowforgreaterexportstoneighbouringcountries.InMay2022,constructionstartedofanewfloatingLNGterminallocatedatAlexandroupolisinnorthernGreece.TheEUR360millionprojectaimstostartoperationsinDecember2023IEA.CCBY4.0.7.NATURALGAS132andwillhave153500m3ofstoragecapacityand5.5bcmofimportcapacity(Reuters,2022a).TheEuropeanCommissionisprovidingEUR167milliontosupporttheproject.TheRAEhasapprovedalicenceforaEUR300millionprojecttoconstructafloatingLNGterminalnearCorinthwithastoragecapacityof210000m3andanimportcapacityof2.5bcm.Theprivateprojectdeveloperhasindicatedthattheprojectcouldstartoperationsin2023.TheRAEisevaluatingaproposalforanotherfloatingLNGterminalinthegulfofVolos.ThegasTSOisalsoworkingtoexpandexportcapacity,whichitestimatescouldreach8.5bcmin2024(versus2.1bcmin2022).ThegasTSOhasplansforcompressionstationsandotherinfrastructuretoboostexportcapacity.Inaddition,GreeceandNorthMacedoniaareco-operatingontheconstructionofa123-kilometreinterconnectorpipelinefromNeaMesimvriainGreecetoNegotinoinNorthMacedonia.ThepipelineismainlyintendedtoexportgastoNorthMacedoniatosupportitsdiversificationawayfromRussiaanditstransitionawayfromcoal-firedgeneration.ThepipelineprojecthasanestimatedcostofaroundEUR150million,withfundingfromtheEuropeanInvestmentBank.Thepipelineisexpectedtostartoperationsin2025,withacapacity1bcm.TransmissionTheNNGTSisoperatedbythegasTSO(DESFA)andconsistsofa512kmmainhigh-pressurepipelineand975kmofhigh-pressurelinebranches.UndernationallawandtheDESFAnetworkcode,thirdpartieshavenon-discriminatoryaccesstothetransmissionnetwork.Third-partyaccesstariffsareregulatedbytheRAEandconsistofchargesforentryandexitpoints.In2019,thetariffmethodologywasharmonisedwithEUregulationsthatrequireacapacity-weighteddistancetariffscheme.Thisschemeaimstoavoiddiscriminationamongusersandfornetworktariffstoreflectrealcosts.DistributionGreecehasarelativelylimitedgasdistributionnetwork,withonly8.3%ofbuildingshavinganaturalgasconnection.ThedistributionnetworkprimarilyservesthepopulationcentresofAthensandThessaloniki.In2022,fourgasDSOswereoperatinginGreece(EDAAttikis,EDAThess,DEDAandHENGAS).EDAAttikis,EDAThessandDEDAareownedbyDEPAInfrastructure,whichin2022was100%acquiredbytheItalianDSOItalgas.EDAAttikisoperatesthedistributionnetworkinAttica.EDAThessoperatesthedistributionnetworksinThessalonikiandThessalia.DEDAdevelopsandoperatesdistributionnetworksinStereaEllada,CentralMacedonia,EasternMacedonia,ThraceandCorinth.DEDAhassubmittedaproposalfordevelopingdistributionnetworksintheareasofEpirus,WestMacedoniaandWestGreece.Itplanstodevelopnewdistributionnetworksto34cities.HENGASwasissuedalicencebytheRAEin2020todevelopnewdistributiongasnetworksinnineareasofGreeceandwascertifiedandlicencedasanownershipunbundledDSOinmid-2021.GasstorageGreecedoesnothaveanylarge-scalenaturalgasstoragefacilities.ThelimitedstoragecapacityattheLNGterminalisusedmainlyforshort-termLNGstoragetosupportcommercialoperations.InJune2020,thegovernmentlaunchedatwo-stageinternationaltenderforthedevelopmentofanaturalgasstoragefacilityinthedepletedSouthKavalagasfield.Thegovernmentestimatesthatthefieldcouldsupport530mcmofgasstorageIEA.CCBY4.0.7.NATURALGAS133ENERGYSECURITYandoperatetwocyclesperyearatapeakwithdrawalof9mcmperday.In2021,theEuropeanCommissionincludedthisprojectunderthefifthlistofEuropeanProjectsofCommonInterest.However,thereisanongoingdebateonthebenefitofthisprojectduetohighcostsandnon-compatibilitywithgovernmentplansforhydrogentoplayakeyroleinreducingnaturalgasdemand(thefieldismostlikelynotcapableofstoringhydrogen).MarketstructureTheGreekgasmarkethaschangedsignificantlysincetheIEA’slastEnergyPolicyReviewin2017.In2016,asinglestate-ownedcompany,PublicGasCorporationS.A.(DEPA),hadadominantpositionacrossthegassector,asitsuppliedaround90%ofGreece’sgasimportsandownedthegasTSO,thegasDSOsandmostgasinfrastructure.TheDSOsalsoactedasthesoleretailgassupplierintheirservicesarea.Asaresultofongoinginitiativestoincreasegasmarketcompetition,DEPA’smarketdominancehasbeensignificantlyreduced.UnderthetermsoftheEUbailoutsreceivedfrom2010to2019,Greeceisrequiredtoprivatiseawiderangeofstate-ownedcompaniestoincreasemarketcompetition.ThisincludedprivatisingmuchofDEPA,whichwasbrokenupintoseveralcompanies.DEPAInfrastructureretainsownershipofGreece’sthreemainDSOsbutisnow100%ownedbytheprivateItaliancompanyItalgas.DEPAnolongerownsthegasTSO(DESFA),whichisnowheld34%bytheGreekstateand66%bySENFLUGA,apartnershipownedbytheItalian,SpanishandBelgiangasTSOsandtheCopelouzosGroup.DEPACommercial,whichretainedDEPA’sactivitiesasawholesalegassupplier,isownedbytheGreekstate(65%)andHELPE(35%),Greece’sleadingoilimporter.Theretailmarketwasfullyliberalisedin2018,whichendedthemonopolyonretailsupplybythreecompaniesthathadbeenunbundledfromtheregionalDSOsin2016.WholesalemarketCompetitioninGreece’swholesalegasmarkethasimprovednotably.From2016to2020,DEPA’swholesalemarketsharedroppedfrom90%to24%asmarketreformsallowednumerousadditionalsupplierstoenterthemarket(Figure7.6).Figure7.6NaturalgaswholesalemarketsharebyvolumeinGreece,2020IEA.Allrightsreserved.Source:DESFA(2022).MYTILINEOS26%DEPA24%ELPEDISON14%PPC13%MOTOROILHELLAS8%HELLENICPETROLEUM8%IRONIIVOIOTIAS5%HELLAGROLIP2%IEA.CCBY4.0.7.NATURALGAS134TradinginthewholesalesegmentofthegasmarkettakesplaceonaplatformoperatedbyHEnEx.In2022,thevolumetradedontheplatformwas3.3%ofthewholesalegassupply.Platformuserstradegaswithoutthepre-requisiteofpriorcapacitybookingatthenaturalentry/exitpoints.Tradingisdonedailyforthefollowingcontracts;intradayandday-aheadforthenextthreedays.Themaintradingmethodiscontinuoustrading.Registrationofpre-agreedtradesissupported.AuctionsandcontinuoustradingbetweentheTSOandmarketactorsarepossibleforbalancingpurposes.Thetradingplatformincorporatesvolatilitycontrolmechanismsandotherfunctionsformarketprotectionpurposes.SinceMarch2022,thetradingplatformhasallowedanonymoustrading(HEnEx,2022).RetailmarketGreece’sretailgasmarketwasfullyliberalisedin2018,whenthemonopolyonretailgassupplybyEPAThessaloniki/ThessalyandEPAAtticawasabolished(thesecompanieswerecreatedduringtheunbundlingofcommercialandnetworkactivitiesoftheDEPA-ownedDSOsin2016).TheretailgassupplycompaniesZENITHandNATURALGAS,whichresultedfromtheprivatisationofEPAThessaloniki/ThessalyandEPAAttica,respectively,havemaintaineddominantmarketpositionsbasedonthevolumeofretailsalesandthenumberofconnections(Figure7.7).TheHHIvaluesfortheretailgasmarkethaveimproved,droppingfrom6453in2015to4702in2018,withastrongdropfollowingliberalisationto2317in2019,fallingto2147in2020and2079in2021.However,itshouldbenotedthatintheirlocalareas,theincumbentintheThessaloniki-Thessaliaretainsan80%sharemarketshare,andtheincumbentinAttikaretainsa79%marketshare.7Figure7.7GasretailmarketsharebycompanyofgascustomersinGreece,2020IEA.Allrightsreserved.Source:RAE(2020)7TheHHIisanindicatorformarketcompetition.Itrangesbetween0foraninfinitenumberofsmallfirms(maximumcompetition)and10000foronefirmwitha100%marketshare(nocompetition).AnHHIabove2000signifiesahighlyconcentratedmarketwithasmallnumberoffirms.ZENITH34%NATURALGAS29%MITILINEOS7%IRON6%EVALHALCOR6%MNGTrading5%DEPA3%Other10%GasvolumeZENITH60%NATURALGAS26%MITILINEOS4%ELPEDISON3%NRG2%IRON2%WATT&VOLT1%EFAENERGY1%NumberofdeliveringpointsIEA.CCBY4.0.7.NATURALGAS135ENERGYSECURITYConsumerswitchingratesarerelativelylowinGreece(Table7.1).From2019to2020,consumerswitchingratesdecreasedslightlyduetothereducedswitchingofresidentialandcommercialcustomers,whiletherewasaslightincreasebasedonthevolumeofconsumption,relatedtotheincreasedindustrialconsumersthatswitched.Table7.1CustomerswitchingratebycategoryinGreece,2020CustomercategoryNumberofconsumersVolumeHouseholds3.48%2.99%Commercial4.74%7.67%Industrial4.32%2.02%TOTAL3.52%3.30%Source:RAE(2020)PricesandtaxationIn2Q2022,naturalgasindustrypricesinGreecewereninth-highestamongIEAcountriesat84USD/MWh,withataxrateof-28%,whiletheIEAaverageindustrypricewhichwas76USD/MWhwithanaveragetaxrateof5.5%(Figure7.8).Householdnaturalgaspricesstoodat94USD/MWh,withataxrateof-5%,lowerthantheIEAaverageof102USD/MWhanda17%taxrate.RetailgassalesaresubjecttoareducedVAT(6%insteadof24%).Naturalgasusedforheatingissubjecttoanexcisedutyof1.1EUR/MWhforhouseholdsand0.4EUR/MWhforindustry.Naturalgasusedfortransportationorelectricitygenerationisexemptfromtheexciseduty.Asupplysecuritylevyisalsochargedtonaturalgasconsumers,withtheratescalculatedbytheRΑΕ.TheseleviesareusedtofinanceasecurityofsupplyaccountmaintainedbythegasTSO.Thisseparateinterest-bearingaccountcoverscostsrelatingtosecurityofsupplymatters,mainlypaymentstolargegasconsumers(gas-firedpowerplantsandindustry)forvoluntarydemandreductionsundertakenwhentherearegassupplyconcerns.TheTSOisrequiredtosubmitannualreportsontheaccounttotheRAE.Therehavebeenincreasesinenergytaxationtoraisefundingforprogrammesthatreducetheimpactsofhighenergypricesonconsumers.InSeptember2022,a10EUR/MWhtaxwasimposedongasusedforelectricitygenerationandawindfallprofitfeewasimposedonelectricitygeneration,mainlyfromlignite,naturalgasandlargehydro.IEA.CCBY4.0.7.NATURALGAS136Figure7.8NaturalgaspricesinGreeceforindustryandhouseholds,2Q2022IndustryIEA.CCBY4.0.HouseholdsIEA.CCBY4.0.Notes:TaxinformationisnotavailableforKorea,PolandandtheUnitedStates.DataforindustrypricesareunavailableforAustralia,Japan,MexicoandNorway.DataforhouseholdpricesareunavailableforAustralia,Finland,Japan,MexicoandNorway.Source:IEA(2022b).GaspolicyThefutureofgasintheGreekenergysystemremainsunclear,withmajorstepsbeingtakentoreducegasdemandinlinewithclimateandsecuritygoals.Atthesametime,largeinvestmentsareplannedtoexpandgasinfrastructure,whichcouldleadtohighergasdemand.FollowingtheRussianinvasionofUkraineandsustainedhighgasprices,thegovernmentisre-evaluatingtheroleofgasintheenergysystemandhastakennumerousstepstoensureasecuresupplyofgasandtoreducegasdemandthroughtheincreaseddeploymentofrenewables(seeChapter4)andenergyefficiencymeasures(seeChapter3).Thereisalsoastrongfocusonreducingtheimpactofhighgaspricesonconsumers.TheNECPandotherplanningdocumentsgivenaturalgasamajorroleinreducingGHGemissionsbysubstitutinglignite-firedgenerationandexpandingthegasnetworktoreduce-40-20020406080100120140160USD/MWhTaxcomponent-50050100150200250300350USD/MWhTaxcomponentIEA.CCBY4.0.7.NATURALGAS137ENERGYSECURITYoildemandfrombuildingheatingandindustry.ThegovernmentindicatesthatcompressednaturalgasandLNGwillalsoplayaroleinreducingtransportoildemandandissupportingthedeploymentofeightLNGrefuellingstationsand55compressednaturalgasstationsby2030.Thegovernmentseesgas-firedgenerationasakeytechnologytosupportsystembalancingasligniteisphasedoutandtheshareofvariablegenerationforwindandsolarPVincreases.TheNECPcallsforincreasedgasimportandexportcapacitytopromoteGreeceasaregionalgas-tradinghub.ThegovernmentseespotentialfortruckingLNGtoisolatedgasnetworksfuelledbysmall-scaleregasificationplants.AddressingtheimpactsofhighgaspricesStartinginlate2021,globalenergypricesbegantoincreaserapidly,especiallyinEurope.Pricespikesandhighvolatilityreachedrecordlevelsin2022,drivenmainlybytheimpactsoftheRussianinvasionofUkraine.TheEuropeanbenchmarkgasprice(TTF),whichhadneverexceeded30EUR/MWh,reachedanhistoricpeakofalmost250EUR/MWhinAugust2022andwas135EUR/MWhinDecember2022.FromSeptember2021toNovember2022,GreecededicatedEUR9billiontoenergysubsidiesandothermeasurestohelpconsumerspaytheirutilitybills.MostofthissupportisdeliveredthroughtheEnergyTransitionFund,establishedin2021tofundavarietyofsubsidiesforelectricity,naturalgasandheatingoil.Thegovernmenthasalsomadesignificantinterventionsinthewholesaleelectricitymarkettolimittheimpactofhighnaturalgasprices,whicharethemaindriverofincreasedelectricityprices.FromJanuarytoOctober2022,statesubsidiesfornaturalgaspaidfromtheEnergyTransitionFundtotalledaroundEUR309million.InSeptember2021,thegovernmentestablishedaone-timefeeonprofitsearnedbyproducersinGreece’swholesaleelectricitymarket(seeChapter1).TherevenuecollectedviathefeeisdirectedtotheEnergyTransitionFundtoreduceconsumerbills.Thefeeisequalto90%ofthedifferenceingrossprofitfromeachmonthfrom1October2021to30June2022comparedtothesamemonthofthepreviousyear,withcertainadjustments.Thefeewillmainlyaffectgenerationfromlignite,naturalgasandlargehydro,asitdoesnotapplytomostgenerationfromrenewablesorco-generation.Followingtheendoftheone-timefeeonprofitsinJuly2022,thegovernmentintroducedwholesaleelectricitymarketpricecaps.ThecapsforgenerationfromnaturalgasandlignitearebasedonfuelcostsandETSallowancepricesandareadjustedonamonthlybasis.InDecember2022,thepricecapswere240EUR/MWhforgas-firedgenerationand200EUR/MWhforlignite-firedgeneration.Thepricecapsforlargehydropower(112EUR/MWh)andotherrenewables(85EUR/MWh)arefixed.AnyrevenueelectricityproducersreceivefrompricesabovethesecapsmustbegiventotheEnergyTransitionFundtoreduceconsumerbills.InSeptember2022,thegovernmentintroduceda10EUR/MWhtaxforgasusedingas-firedelectricitygeneration.RevenuefromthetaxwillgototheEnergyTransitionFundtoreduceconsumerbills,toinvestmentsinbiomethaneandlow-carbonhydrogenproductionprojects,andtotheexpansionofnaturalgasinfrastructurethathelpsenddependenceonRussiangas.FromJanuarytoOctober2022,thesubsidywasadjustedeachmonthandrangedfrom0EUR/MWhto40EUR/MWhforhouseholdsand20-40EUR/MWhfornon-householdconsumers.IEA.CCBY4.0.1387.NATURALGASGreekenergycompanieshavealsovoluntarilytakenstepstoreduceconsumerenergybills.StartinginOctober2021andthroughout2022,DEPACommercial(oneofthemainnaturalgassuppliers)gavediscountsrangingfrom11EUR/MWhto90EUR/MWhtoitshouseholdconsumers.DEPAstartedgivingdiscountsupto40EUR/MWhtoitsnon-householdconsumersstartinginApril2022.ReducingrelianceonRussiangasimportsIn2021,41%ofGreece’snaturalgasimportscamefromRussia.InJanuary2022,justpriortotheRussianinvasionofUkraine,DEPACommercialsignedacontractwithRussia’sGazpromforaround2bcmofgasperyearuntil2026(Reuters,2022b).ShortlyfollowingtheRussianinvasionofUkraine,GreeceannouncedplanstoboostimportcapacityatitsLNGimportterminal.AnewfloatingstorageunitstartedoperationsinAugust2022.DESFAindicatedthatsincetheunitstartedoperating,LNGcargoeshavedoubledyear-on-yearandthatimportsfromRussiahavedroppedfrom40%tolessthan20%ofGreece’sgassupply.InSeptember2022,DEPACommercialreachedanagreementwithTotalEnergiesofFrancetosecureLNGsuppliesintheeventthatimportsfromRussiaaredisrupted.ThedealallowsdeliveriesoftwoLNGcargoeseachmonththroughMarch2023,whichthegovernmentestimatescouldsubstitutealmost100%ofGreece’sgasimportsfromRussia.ThereareseveralongoingorplannedprojectstodevelopadditionalLNGterminalsinGreece.SeveraloftheseprojectswerealreadyunderconsiderationbeforetheRussianinvasionofUkrainebutwouldhelptofurtherdiversifyGreece’sgasimportsandenableexportstoneighbouringmarkets.Themostadvancedproject,locatedatAlexandroupolis,startedconstructioninMay2022.Itshouldbeoperationalbytheendof2023andwouldalmostdoubleGreece’sLNGimportcapacity.Thankstoincreasedco-operationbetweenGreeceandBulgariafollowingtheRussianinvasionofUkraine,theIGBpipeline,whichstartedconstructionin2020and,afterseveraldelays,wasabletobeginfullcommercialoperationsinOctober2022.ItbringsgasfromAzerbaijanandsupportsthediversificationofBulgaria’sgassupply.Bulgariahadbeenreceivingalmost100%ofitsgassupplyfromRussiauntilGazpromcutoffsupplyinApril2022.BulgariahasalsobeenimportinggasthroughGreece’sLNG.ThegovernmentindicatesthatthankstoincreasedLNGimportcapacityanddeliveries,gasexportstoBulgariaincreasedfromjust0.0016bcmin2019to0.92bcmin2022.GreecehasannouncedthatitwilltakestepstoaccelerateoilandgasexplorationtoreducerelianceonRussianimports.Thestate-ownedcompanyresponsibleformanagingexplorationandproductionconcessions(HHRM)wantstoconcludeafirstroundofseismicsurveysin2023toidentifygasfieldsinoneonshoreandfiveoffshoreareasinwesternGreeceandofftheislandofCrete.Energean,currentlytheonlyoilproducerinGreece,aimstocarryouttestdrillingatanonshoreblockinthewestofthecountry,thefirsttestdrillinginGreecein22years.TheGreekPrimeMinistersaidthecountryaspirestobecomeasignificantgasproducerandahubforstorageandtransfersfortherestofEurope(KoutantouandMaltezou,2022).IEA.CCBY4.0.7.NATURALGAS139ENERGYSECURITYInMay2022,theEuropeanCommissionintroducedtheREPowerEUplan,whichproposesnumerousmeasuresintendedtoendEUrelianceonRussianenergyimportswhilesupportingenergytransition.InOctober2022,theGreekMinistryofFinanceannouncedthatitexpectedtoreceiveEUR8.7billionoftheREPowerEUfunds,whichwillbedirectedtoexistingprojectsandreformsdefinedinGreece’srecoveryandresilienceplan,withseveraloftheseprogrammessupportingareductioningasdemandthroughincreaseddeploymentofrenewableenergyandenergyefficiencymeasures.UndertheREPowerEUplan,theEuropeanUnionadoptedanaturalgasstorageobligationrequiringthatEUgasstoragefacilitiesbeatleast80%fullby1November2022and90%fullby1Novemberinsubsequentyears.Greeceislargelyexemptedfromthisobligation,asithasnolarge-scalegasstoragefacilitiesandlimitedinterconnectioncapacitytomemberstateswithgasstorage.However,Greecehasagreedtostore100mcmofgas(1.6%ofGreece’sannualdemand).Underthisarrangement,gassupplierstotheGreekmarketwithsharesabove1%willhaveanobligationtostorepartoftheabovequantityinItalyandBulgariaproratatotheirmarketshare,andtheItaliangasTSOwillhaveanobligationtomakethisgasavailabletoGreecethroughcommercialreverseflowsintheTAPpipelineaswellastheBulgarianTSOdirectlytotheGreeksystem.GreecealsodedicatesasmallshareoftheLNGstoragecapacitytosupportemergencyoperationsofgas-firedpowerplants.InJuly2022,EUmemberstatesagreedtovoluntarilyreducetheirgasdemandby15%between1August2022and31March2023,comparedtotheiraverageconsumptioninthepastfiveyears.TheregulationforeseesthepossibilityfortheEuropeanCommissiontotriggerasecurityofsupplyalert,inwhichcasethegasdemandreductionwouldbecomemandatory.Greecehasalreadybeentakingstepstoreduceitsgasdemand.FromJanuarytoSeptember2022,gasdemanddroppedbyalmost15%comparedto2021.PriortotheRussianinvasionofUkraine,PPC(Greece’slargestelectricityutility,whichownsmostlignite-firedgeneration)wasplanninganotableincreaseinthecapacityofgas-firedgenerationtosupportarapidphase-outoflignite-firedgenerationfrom2023to2025.Tolimitincreasedgasdemandfromelectricitygeneration,thegovernmentandPPCannouncedinJune2022thatthephase-outoflignite-firedgenerationwasbeingextendedto2028(asrequiredundertheClimateLaw).PPCalsonoteditwouldincreasetheextractionoflignitein2022from10Mtto15Mt,withtheadditionalcoaltoserveasasecurityreserveincasedisruptionsinthedeliveriesofRussiangascannotbecoveredbyimportsfromothercountries.PPChasalsoaccelerateditsinvestmentinrenewableenergyprojectstofurtherreducethedemandforgasfromelectricitygeneration.HydrogenTheNECPnotesalong-termpotentialtoreducegasdemandanddecarbonisegassupplythroughbiomethaneandhydrogenproducedfromrenewablesourcesandindicatesthatGreeceaimstodevelophydrogenproductionbasedonrenewableelectricity,usehydrogenfordecarbonisingtransport(mainlyshipping)andlong-termstorageforelectricitygeneration,andincentivisehydrogen-relatedresearchandinnovation.TheNECPincludesgoalstoinjecthydrogen(orbiomethane)intothenaturalgasnetworkandintroduceaguaranteeoforiginsystemtostimulatethedeploymentofrenewablehydrogen.InDecember2020,theMoEEestablishedaspecialcommitteetoproduceanationalhydrogenstrategytodefineaclearroleforhydrogenproductionoruseinGreece.TheIEA.CCBY4.0.7.NATURALGAS140strategyisexpectedtobecompletedin2023.Adraftversionofthestrategyincludesgoalstodeploy750MWofelectrolysiscapacityandproduce3500GWhofhydrogenusingrenewableenergyby2030.Thedraftindicatesthiswouldbesupportedbythedeploymentofanadditional3GWofrenewablegeneration(80%solarPVand20%wind).Thedraftnotesthathydrogenwillmainlyreplacenaturalgas,alongwithsomeoilintheindustryandtransportsectors.ThedraftestimatesthatthedesiredlevelofhydrogenproductionwouldreduceGHGemissionsby0.75MtCO2(just1.5%oftotalGHGemissionsreductionrequiredtoreachtheNECPemissionstarget)andreducegasandoilimportsby10%each(500ktoeor21PJ).ThedraftindicatesthatthiswouldrequireinvestingEUR3-4billiontodevelopadomestichydrogensupplychain,whichwouldcreateanestimated3000-4000jobsandincreaseGDPbyuptoEUR1.1billionannually.GreecesupportstheEU-widetargetofproducing10Mtofcleanhydrogenby2030.InDecember2020,Greecesignedahydrogenmanifestowith22otherEUmemberstatestoparticipateinhydrogenImportantProjectsofCommonEuropeanInterest(IPCEI).InJuly2022,theEuropeanCommissionapprovedthecreationoftheHy2TechIPCEItosupportresearch,innovationandindustrialdeploymentsinthehydrogentechnologyvaluechain.TheIPCEIwasjointlypreparedby15EUmemberstates(includingGreece)andwillprovideuptoEUR5.4billioninpublicfundingto35companiesparticipatingin41projects,whichisexpectedtounlockanadditionalEUR8.8billioninprivateinvestments.InSeptember2022,theEuropeanCommissionapprovedthecreationoftheIPCEIHy2Usetoboostthesupplyofrenewableandlow-carbonhydrogen.TheIPCEIwasjointlypreparedby13EUmemberstates(includingGreece)andwillprovideuptoEUR5.2billioninpublicfundingto39companiesparticipatingin29projects,whichisexpectedtounlockanadditionalEUR7billioninprivateinvestments.OneprojectinGreecewasselectedforfunding.TheH2CEMprojectwillreceiveEUR60milliontosupporthydrogenproductionthroughelectrolysispoweredbyrenewableenergysourcesatthreecementplantsinGreece.TheoperatoroftheplantsestimatestheH2CEMprojectwillreduceCO2emissionsby0.16Mtperyear,equaltoareductionofatleast8%pertonneofcement.GassecurityNaturalgasisanimportantfuelformaintainingenergysecurityinGreece,especiallyintheelectricitysector.Gas-firedplantsaccountforthelargestshareofelectricitygeneration(41%in2021)andplayakeyroleinsystembalancingandthesecurityofelectricitysupply.Gasisalsoakeyfuelforindustry,covering22%ofindustryenergydemandin2020.Gasplaysarelativelylimitedroleinbuildings,coveringjust10%ofbuildingenergydemandin2020.However,incertainareasofGreece,gasisakeyfuelforhomeheating.Greecereliesmainlyonmarketforcestoensureasecuregassupply.However,Greekenergypolicydefinesadditionalmeasuresthatcanbetakentoensurethesecurityofgassupplyintheeventofasupplydisruption.TheRAEisresponsibleforimplementingEURegulation2017/1938,whichaimstoensurethatallthenecessarymeasuresaretakentosafeguardanuninterruptedsupplyofgasthroughouttheEuropeanUnion,especiallyforprotectedcustomers,intheeventofdifficultweatherconditionsordisruptionsofthegassupply.Inlinewiththisregulation,theRAEassessesriskstogassecurityanddevelopspreventiveactionplansthatdetailstepstoreducetheserisks.TheRAEalsoapprovestheemergencyplandevelopedbythegasTSO,whichdetailsthestepstobetakeninresponsetoadisruptioningassupply.TheIEA.CCBY4.0.7.NATURALGAS141ENERGYSECURITYlatestemergencyplanwassubmittedtotheEuropeanCommissioninNovember2022,thelatestriskassessmentwasconductedinMay2020andthelatestpreventativeactionplanwasapprovedinAugust2022.Underthecurrentemergencyplan,thedeclarationandmanagementofagassupplyemergencywouldbeco-ordinatedbetweentheCrisisManagementUnit,theCrisisManagementGroupandtheEmergencyMeasuresCoordinationCommittee.Theemergencyplandefinesthreelevelsofcrisis:1)earlywarning;2)alert;and3)emergency.ItalsodefinestheroleandresponsibilitiesofthegasTSOandDSOs,theRAE,relevantgovernmentauthorities,andgasmarketparticipantsateachcrisislevel.Theemergencyplandetailsavarietyofmeasurestobetakenintheeventofacrisis.Supply-sidemeasuresarerelativelylimitedasGreecehassmalldomesticgasproductionandnolarge-scalegasstorage.UnderaLevel2or3crisis,theTSOisauthorisedtotakestepstoincreaseimportcapacityatavailableentrypointstoensurethatthesystemcandeliverthemaximumtechnicalcapacityofgas.TheLNGterminalplaysakeyroleinmaintaininggassupplysecurity.LNGstoragecapacityisusedtomaintainanLNGsecurityreserveforelectricitygeneration.TheamountofLNGsecurityreservesiscalculatedforeachobligatedholderofanelectricitygenerationlicenceandmustcover16hoursperdayfor5daysforeachpowerplant.Forthewinterof2021/22,theLNGsecurityreservetotalled67.2m3ofLNG(around0.04mcmofnaturalgas).Forthewinterof2022/23,theLNGsecurityreservetotalled85.1m3ofLNG(around0.05mcmofnaturalgas).Toensuresecure24-houroperations,theLNGterminalhasanonsiteco-generationunitand,asabackup,canbesuppliedthroughtwoindependent20kVdistributionlines,eachofwhichisabletofullymeettheelectricitydemandoftheterminal.Measurestoreducegasdemandplayakeyrole.Incaseofagassupplycrisis,thesecurityofelectricitysupplyissupportedbyfivegas-firedpowerplantsthatcanswitchfromnaturalgastodiesel.Theseplantsareobligatedtoensureuninterruptibleoperationusingdieselforatleast5daysunderpartialloadandmustkeeptheneededlevelofdieselstoredonsite.Theseplantshaveatotalgenerationcapacityof2.0GWwhenfuelledwithgasand1.8GWwhenfuelledwithdiesel(comparedtoGreece’speakdemandof8.6GWin2020).Imposedinterruption/limitationofgassupplytoconsumersisthekeymeasuretoensurethereliableandsafeoperationofthegassystemduringaLevel3gascrisisandtolimitimpactsonprotectedconsumers(households,essentialsocialservices,SMEs)andelectricitygeneration.Theemergencyplandefinestheorderforimposinginterruption/limitationofgassupply,whichstartswithindustrialconsumerswithdemandabove100GWh,followedbyindustrialconsumerswithdemandequaltoorlessthan100GWhandthencommercialconsumersthatarenotprotectedconsumers.Anynaturalgassupplierthatprovidesnaturalgasdirectlyorindirectlytoprotectedconsumersisobligedtotakeallthenecessarymeasurestoensuretheuninterruptedsupplyofnaturalgastotheseconsumers.Theemergencyplanalsoallowsforinterruptiblecontractsbetweenconsumersandsuppliersthatprovideapaymenttoconsumerswhoagreetohavetheirgassupplyreducedincaseofacrisis.However,noconsumershavesignedsuchacontract.Greece’spreventiveactionplanindicatesthattheimplementationofexistingdemandreductionmeasureswouldreducegasdemandby9.6mcm/day,with8.6mcm/daycomingfromfuelswitchingatpowerplantsand1.1mcm/dayfrominterruption/limitationofgassupplytoconsumers.Evenwiththesemeasures,GreecedoesnotmeettheN-1IEA.CCBY4.0.7.NATURALGAS142requirementforsecurityofgassupplyforthe2021/22gasyear;theN-1scenariowouldallowonly84%ofgasdemandtobecovered.TheN-1scenarioestimatesalossofsupplyifthelargestsinglepieceofcriticalinfrastructurestopsworking;inGreece,thisistheLNGterminal.UnderEURegulation2017/1938ongassecurity,neighbouringEUmemberstatescanagreeonthejointobligationtocomplywiththeN-1infrastructurestandard.Inlinewiththis,Greeceparticipatesinseveralriskgroupsthatexamineoptionsforensuringsupplyinacrisis.For2020and2021,itwasshownthat,inmostcases,regionalco-operationwouldmeettheN-1requirement.AssessmentNaturalgasisplayinganincreasingroleintheGreekenergysystem,drivenmainlybyatransitionfromlignite-firedgenerationtogas-firedgeneration,alongwithincreasedgasdemandfromindustryandbuildings.Gas-firedpowerplantsarethelargestsourceofelectricitygeneration(41%in2021)andplayakeyroleinsystembalancingandmaintainingsecurityofelectricitysupply.Gasisalsoanimportantfuelforindustryand,insomeareasofGreece,animportantsourceofbuildingheating.Greecehasonlylimiteddomesticgasproduction,just0.004bcmin2021,andmostofthegassupplyisimported,withRussiabeingthelargestsupplier(41%ofgasimportsin2021).ThefutureofgasintheGreekenergysystemremainsunclear,withmajorstepsbeingtakentoreducegasdemandinlinewithclimateandsecuritygoalswhileatthesametime,largeinvestmentsareplannedtoexpandgasinfrastructure,whichcouldleadtohighergasdemand.ThegovernmenthasindicateditwouldlikeGreecetobecomearegionalgashub.FollowingtheRussianinvasionofUkraineandsustainedhighgasprices,thegovernmentisevaluatingtheroleofgasintheGreekenergysystemandhastakennumerousstepstoensureasecuresupplyofgasandtoreducegasdemandthroughincreaseddeploymentofrenewablesandenergyefficiencymeasures.Thereisalsoastrongfocusonreducingtheimpactofhighgaspricesonconsumers.TheIEAcommendsGreeceforitsstepstoreducenationalandregionalrelianceonRussiangasimports.ThankstorapidinvestmentsinexpandedLNGcapacity,GreecehasbeenabletoreduceRussiangasimportsfrom40%to20%ofitsgassupplyandputinplaceLNGcontractstofullymeetgasdemandifRussiastopssupplyinggas.Thankstoimprovedco-operationwithBulgaria,theIGBpipeline,whichwasunderconstructionforseveralyearsandfacednotabledelays,startedcommercialoperationsinOctober2022,helpingtoreduceBulgaria’sdependenceongasfromRussia.Greecehasalsotakenstepstoreducegasdemandinboththeshortterm(fuelswitchingbylargeconsumers)andthelongterm(majorincreasesinfundingandsimplificationofproceduresforpermittingofrenewableenergyandenergyefficiencyprojects).Greecedoesnothavelarge-scalegasstoragebuthassecuredtheuseofsomegasstorageinItalyandisreservingsomeLNGstoragecapacityforresponsetosupplyemergencies.Thegovernmentisalsoexaminingoptionsforincreasingthethusfarlimiteddomesticgasproduction.However,thegovernmentneedstomakeastrongerefforttodeterminewhetherfurthergasinfrastructureshouldbedeveloped,balancingimmediateconcernsoverenergysecuritywiththeneedtoreducegasdemandandassociatedGHGemissionsandconsideringtherisksstemmingfromgaspricevolatilityandstrandedassets.Notably,IEA.CCBY4.0.7.NATURALGAS143ENERGYSECURITYexpandingthegasdistributionnetworkshouldbereconsidered,asthereareclearalternativestomeetenergydemandthroughelectrification,renewableenergyandimprovedbuildingenergyefficiency.Thegovernmentshouldalsoclarifytheexpectedroleofhydrogenandbiomethaneindecarbonisinggassupply,withapriorityplacedonhard-to-abatesectorsandenduses.GiventheseasonalityofeconomicactivityandlackofindustryonmostofGreece’sislands,bringinggastotheislandsdoesnotmakeeconomicsenseandwouldundercutGreece’soverarchingclimategoals.TheIEAcommendsGreeceforthenotableprogressindevelopingitsnaturalgasmarket.ThegassectorhasundergonemajorchangessincetheIEA’slastEnergyPolicyReviewofGreecein2017,withastrongincreaseincompetitioninthewholesaleandretailmarkets.DEPA,thestate-controlledincumbentgassupplierthatownedmostgasinfrastructure,wasbrokenupintoseveralcompanies,therebyseparatingcommercialsupplyactivitiesfromownershipofinfrastructure.Greecesuccessfullyintroducedatradingplatformforthewholesalegasmarket,whichhasbeenprogressivelyexpandedtooffermoreproducts.InMarch2022,thevolumetradedontheplatformreached5.6%ofthewholesalegassupply.Theretailgasmarket,whichwasliberalisedin2018,hasseengrowingcompetition,withtheHHIdroppingfrom6453in2015to2317in2019.Althoughpromising,thefirstresultsofmarketopeningaretooprematuretoassessthelongertermimpacts,andthereisstillnotableroomtoimprovecompetitioninthegasmarket.Atthewholesalelevel,justsevencompaniesaccountedfor98%ofsupplyin2020,withthetwolargestonescovering50%ofsupply.Attheretaillevel,twosuppliersthatresultedfromtheprivatisationoftheincumbentDSOshavemaintaineddominantmarketpositionsbasedonthevolumeofretailsales(63%in2020)andthenumberofconnections(86%).Inaddition,theswitchingrateforretailconsumershasremainedrelativelylow.Theplantointroducelong-termproductsonthewholesaletradingplatformshouldbeaccelerated.Inaddition,creatingatransparentsecondarymarketforimportcapacity(forinstance,viaanopenbookingplatform)wouldleadtomoreeffectiveutilisationofimportinfrastructureandenhancecompetitionamongwholesalemarketplayers.InSeptember2022,thegovernmentintroduceda10EUR/MWhtaxforgasusedingas-firedelectricitygeneration.RevenuefromthetaxwillgototheEnergyTransitionFundtoreduceconsumerenergybillsandwillalsosupportinvestmentsthathelpenddependenceonRussiangas.Thegovernmentshouldconsidereliminatingthetaxongasusedforelectricitygeneration.Thetaxseemsintendedtoreduceelectricitybills,butitwillmostlikelyincreasethecostofelectricity,defeatingtheintendedgoal.RecommendationsThegovernmentofGreeceshould:Enhanceenergysecuritybydiversifyinggassuppliesbyoriginandpathofdelivery,andbyreducinggasdemandthroughincreaseddeploymentofrenewablesandenergyefficiency.IEA.CCBY4.0.7.NATURALGAS144Reconsidertheplannedexpansionofgasinfrastructurebasedonanalysisthatidentifiesthemostcost-efficientwaytodecarboniseenergydemandwhileavoidingstrandedassetsandsupportingenergysecurity.Enhancemarketfunctioningbycreatingatradingplatformforgasfuturessomarketparticipantscanhedgerisk.Also,createatransparentsecondarymarketforbookedimportcapacity.ReferencesDESFA(NationalNaturalGasSystemOperator)(2022),MarketSharesData(database),https://www.desfa.gr/en/regulated-services/transmission/pliroforisimetaforas-page/ng-market-data/market-shares-data(accessedon15June2022)HEnEx(EnergyExchangeGroup)(2022),Energymarkets(webpage),https://www.enexgroup.gr/web/guest/energy-marketsIEA(InternationalEnergyAgency)(2022a),WorldEnergyBalances(database),https://www.iea.org/data-and-statistics/data-product/world-energy-balances(accessedon15June2022)IEA(2022b),OECDEnergyPricesandTaxesQuarterly(database),https://iea.org/data-and-statistics/data-product/oecd-energy-prices-and-taxes-quarterly(accessedon20June2022)Koutantou,AandR.Maltezou(2022),GreecespeedsupgasexplorationtohelpreduceRussiareliance,Reuters,https://www.reuters.com/business/energy/greece-speed-up-gas-exploration-help-replace-russian-gas-pm-says-2022-04-12RAE(2020),NationalReport2020,https://www.ceer.eu/documents/104400/6959701/C20_NR_Greece_EN.pdf/3ee32f06-8e2e-f6f6-2678-34a7f912d2ddReuters(2022a),Greece,BulgariasaynewLNGterminalwillhelpcutrelianceonRussia,https://www.reuters.com/business/energy/greece-bulgaria-say-new-lng-terminal-will-help-cut-reliance-russia-2022-05-03Reuters(2022b),Greece’sDEPA,Gazpromagreelong-termgasdeal,https://www.reuters.com/business/energy/greeces-depa-gazprom-agree-long-term-gas-deal-2022-01-04IEA.CCBY4.0.145ENERGYSECURITY8.OilKeydata(2021)Netimportsofcrudeoil:565kb/d,+58%since2011Domesticoilproductsproduction:639kb/dNetexportsofoilproducts:343kb/d,+513%since2011Shareofoil:1.2%ofenergyproduction,47%ofTES,8.5%ofelectricitygeneration,52%ofTFC,95%oftransport,36%ofindustryand21%ofbuildingsOilconsumptionbysector:268kb/d(domestictransport44.2%,industryincludingnon-energyconsumption17.3%,buildings11.9%,electricityandheatgeneration8.1%,internationalbunkering18.5%)Note:“imports/exportsofcrudeoil”includescrudeoil,naturalgasliquidsandfeedstock.Totalenergysupplydoesnotincludeoilusedforinternationalbunkering.OverviewTheshareofoilinGreece’senergysupplyanddemandhasdecreasedsince2005,butoilstillaccountedfor52%ofTFCin2021and47%ofTESin2021(Figure8.1).In2021,oilcoveredalmostalltransportenergydemand(95%),andsignificantsharesofenergydemandinindustry(36%),buildings(21%)andelectricitygeneration(8.5%).ImportscoveralmostallofGreece’scrudeoilsupply(99%in2021);however,thereislimiteddomesticcrudeoilproduction(1.2%ofsupply).Greeceisanetoilproductsexporter,withoilproductsoutputmorethandoublethedomesticdemandin2021.Greece’senergypolicyisfocusedonmaintainingsecurityofoilsupplywhilereducingdemandforoilinlinewithGHGemissionsreductiontargetsandprotectingconsumersfromhighenergyprices.ThegovernmenthasimplementedmeasurestosupporttheuptakeofEVs,theuseofbiofuelsandamodalshiftawayfromprivatevehicles.Oil-firedheatingsystemscannotbeinstalledafter2025,andthereissupporttotransitiontootherheatingsystems.Oil-firedelectricitygeneration,whichisusedmainlyinnon-interconnectedislands,willbereducedthroughelectricityconnectionstothemainlandandthedeploymentofrenewables.FollowingtheRussianinvasionofUkraine,theEuropeanUnionimposedsanctionsbanningseaborneimportsofRussiancrudeoil(whichstartedon5December2022)andRussianoilproductimports(whichstartedon5February2023).ThesebansendedRussianimportstoGreece,astheseimportswereonlydeliveredbyship.Greece’sIEA.CCBY4.0.8.OIL146refinerieshavesecuredcontractstoreplacetheimportsfromRussiawithsuppliesfromothercountries.Therearealsoeffortstoincreasedomesticoilproduction.Figure8.1SharesofoilinGreece’senergysector,2005-2021IEA.CCBY4.0.Source:IEA(2022a).CrudeoilsupplyAlmostallofGreece’scrudeoilsupplyisimported(99%in2021).Greecehasonlysmalldomesticproduction,just1kb/dandlessthan1.2%ofcrudeoilsupplyin2021.Greece’snetimportsofcrudeoilwere565kb/din2021andcamefromIraq(210kb/d),Russia(130kb/d),Kazakhstan(67kb/d),Libya(43kb/d),Egypt(40kb/d),SaudiArabia(23kb/d)andAlgeria(18kb/d).GreeceimportedasignificantamountofoilfromIranuntil2018,whensanctionswereimposedonIraniancrudeoilexports.CrudeimportsfromRussiaendedon5December2022,withthestartofanEU-widebanonRussiancrudeoilimportedviashipping.Greeceexportsonlyasmallamountofcrudeoil(just1.7kb/din2021).Figure8.2Greece’scrudeoilnetimportsbycountry,2005-2022IEA.CCBY4.0.Source:IEA(2022a).0%10%20%30%40%50%60%70%80%90%100%ShareofoilTransportTotalfinalconsumptionTotalenergysupplyIndustryBuildingsElectricitygenerationProduction-1000100200300400500600700OtherIran,IslamicRepublicAlgeriaSaudiArabiaEgyptLibyaKazakhstanNorthMacedoniaRussiaIraqTotalnettradeNetimportsNetexportsNetexportskb/dIEA.CCBY4.0.8.OIL147ENERGYSECURITYOilproductssupply,demandandtradeFrom2007to2013,Greece’soilproductdemanddecreasedsignificantlyfrom450kb/dto283kb/d,withdemandfallinginallsectors(transport,industryandbuildings)duetoastrongcontractioninoveralleconomicactivity(Figure8.3).Inlinewithimprovingeconomicconditions,oilproductsdemandstartedincreasingin2014toreach309kb/din2019.AsaresultoftheCovid-19pandemic,oilproductsdemanddroppedsharplyto251kb/din2020,primarilybecauseofreduceddemandfromtransport(130kb/din2019to108kb/din2020),marinebunkers(48kb/dto31kb/d)andaviationbunkers(24kb/dto7.5kb/d).Withtheeasingofthepandemicrestrictions,totaloilproductsdemandreboundedagainto268kb/din2021.Thetransportsectoraccountsforthehighestshareofoilproductsdemand(44.2%in2021),followedbyinternationalbunkers(18.5%),industry(17.3%),buildings(11.9%),andelectricityandheatgeneration(8.1%).Withinthetransportsector,mostdemandcomesfromroadtransport(88%),followedbydomesticnavigation(9.5%)andaviation(2.7%).Figure8.3OilproductsdemandbysectorinGreece,2005-2021IEA.CCBY4.0.Source:IEA(2022a).Demandforeachoilproducthaschangedinlinewithoveralleconomictrendsandshiftingdemandineachsector(Figure8.4).From2007to2021,demandincreasedfordiesel(+10%),LPGandethane(+8%)whileitdroppedfornaphtha(-80%),gasoilproductsotherthandiesel(-63%),residualfuels(-51%),gasoline(-50%),andjetfuelandkerosene(-30%).Figure8.4OilproductsdemandbyproductinGreece,2005-2021IEA.CCBY4.0.Source:IEA(2022a).050100150200250300350400450kb/dInternationalaviationbunkersInternationalmarinebunkersBuildingsandotherElectricityandheatgenerationIndustryTransport050100150200250300350400450kb/dOtherproductsOthergasoilNaphthaResidualfuelsLPGandethaneJetandkeroseneGasolineDieselIEA.CCBY4.0.8.OIL148From2011to2021,totaldomesticoilproductsdemandexperiencedanoveralldecline,from351kb/dto268kb/d(-24%).Atthesametime,anincreaseinrefinerycapacityledtoincreaseddomesticoilproductsproduction,whichgrewfrom400kb/din2011to639kb/din2021(+60%),withapeakof682kb/din2018(Figure8.5).From2011to2021,therewasanincreaseintheproductionofdiesel(+116kb/d),naphtha(+36kb/d),gasoline(+27kb/d),LPG(+10kb/d),refinerygas(+5kb/d),andjetandkerosene(+1kb/d),andaslightdeclineintheproductionoffueloil(-1kb/d).Figure8.5OilproductsproductionbyproductinGreece,2005-2021IEA.CCBY4.0.Source:IEA(2022a).Inlinewithfallingdomesticdemandandincreasingdomesticproduction,Greecehasseenanotableriseinoilproductexports(Figure8.6).From2011to2021,netoilproductexportsincreasedfrom56kb/dto343kb/d(+513%).GreecehaslittlenetimportsfromRussia(4.5kb/din2021),buttheseendedinFebruary2023,whentheEUbanonimportsofRussianoilproductsentersintoforce.Figure8.6Greece’soilproductsnetexportsbycountry,2005-2021IEA.CCBY4.0.Source:IEA(2022a).0100200300400500600700kb/dOtherproductsRefinerygasKeroseneNaphthaFueloilLPGGasolineDiesel-350-300-250-200-150-100-50050100RussiaChina(People'sRepublicof)NorthMacedoniaItalyGibraltarSaudiArabiaTürkiyeLibyaLebanonOtherNetimportsNetexportskb/dIEA.CCBY4.0.8.OIL149ENERGYSECURITYInfrastructureGreece’soilsectorinfrastructureiscomposedoffouroilrefineries,twomajorports(onenearAthensandonenearThessaloniki)thatsupportcrudeoilimportsandoilproductimportsandexports,onecrudeoilpipeline(whichlinkstherefineryinNorthMacedoniatotheportinThessaloniki),oneoilproductspipeline(whichlinkstheAthensairporttorefiningcapacity),andstoragesitesforcrudeoilandoilproducts.Greecehasoneactivecrudeoilproductionarea,theoffshorePrinosconcession(Figure8.7).RefineriesGreecehasfouroilrefineries,withatotaldistillationcapacityof669.6kb/din2020(Table8.1).HellenicPetroleum(HELPE)ownsthreerefineries(Aspropyrgos,ElefsinaandThessaloniki)withacombinedcapacityof424.6kb/d.MotorOilownsthelargestrefinery(Korinthos),withacapacityof245kb/d.In2021,thefourrefineriesproduced634kb/dofoilproducts.In2019,theAspropyrgosrefinerymadeinvestmentssoitcanproduceoilproductsthatcomplywiththeInternationalMaritimeOrganisation(IMO)regulation,IMO2020.UnderIMO2020,whichenteredintoforceon1January2020,shipsoperatingoutsidedesignatedemissioncontrolareasmustusefuelswithsulphurcontentbelow0.5%,asignificantreductionfromtheprevious3.5%limit.TheElefsinaandThessalonikirefineriesdonotproducehigh-sulphurfueloil,sonoadjustmentswererequiredtotheiroperations.Alsoin2019,theAspropygrosrefinerybeganproducingbioether,whichishelpingtomeettheupdatedrequirementofGreece’sbiofuelblendingobligation(seeChapter4).ThemostsignificantprojectattheKorinthosrefineryisanewnaphthatreatmentcomplex,consistingofthreenewprocessunits(anaphthahydrotreater,aplatformingunitandanisomerisationunit)andanupgradeoftheexistingutilities,whichisexpectedtohaveacapacityof22kb/d.Anotherprojectatthesamerefineryisthenewrefinerymooringproject,includingtheinstallationofa1MWbatterysysteminlateOctober2021,whichisexpectedtogivetherefinerymoreflexibilityandtheabilitytoserveoiltankerswithacapacityofover300000deadweighttonnes.Table8.1OilrefinerycapacityinGreece,2020RefineryOwnerCapacity,kb/dKorinthosMotorOil245.0AspropyrgosHELPE201.4ElefsinaHELPE145.3ThessalonikiHELPE77.9Totalcapacity669.6Note:Capacityreferstothedistillationcapacityoftherefineries(atmosphericandvacuum).IEA.CCBY4.0.8.OIL150Figure8.7OilinfrastructureinGreece,2021PortsGreecehastwomajoroilports,onenearAthenswithseventerminalsandonenearThessalonikiwiththreeterminals.Theseportsareusedmainlytoreceivecrudeoilimportsfordeliverytonearbyrefineriesandtoloadoilproductsforexportsanddomesticdistribution.TransportationGreecehastwomajoroilpipelines.A220-kilometreoilproductspipelinewithacapacityof42kb/dlinkstheportofThessalonikiwiththeOktarefineryinNorthMacedonia.A53-kilometreoilproductspipelinewithacapacityof30kb/ddeliversjetfuelfromtheAspropyrgosrefinerytoAthensInternationalAirport.Inaddition,numeroussmallercrudeoilandoilproductspipelinessupportthecommercialoperationsoftherefineries,oilportsandoilstoragefacilities.OilproductsfromGreece’srefineriesarealsotransportedfordomesticdistributionandexportviaship,roadandrail.Therearenoplanstodevelopadditionallarge-scaleoilpipelinesinGreece.IEA.CCBY4.0.8.OIL151ENERGYSECURITYStorageIn2021,Greecehad10large-scaleoilstoragefacilities,withatotaloilstoragecapacityofaround60mb(20mbofcrudeoiland40mbofoilproducts).MostcrudeoilandoilproductsstoragefacilitiesarelocatedneartheportsandrefineriesintheAthensandThessalonikiareas.ThelargeststoragefacilitiesarelocatedattheElefsinarefinery(18.7mb),atAgioiTheodoroi(14.7mb,associatedwiththerefineryofKorinthosownedbyMotorOil),attheAspropyrgosrefinery(around8.7mb),atMegara(6.9mb,connectedbypipelineswiththerefineriesofAspropyrgosandElefsinaownedbyHellenicPetroleum),andattheThessalonikirefinery(6.8mb).Therearealsolargeoilproductsstoragefacilitiesatstrategiclocationsacrossthemainlandandontheislandstosupportoilproductsdistribution.ProductionIn2021,Greecehadoneactiveareafordomesticcrudeoilproduction,thePrinosconcession,locatedeastofThessaloniki.ItisoperatedbyEnergeanandconsistsofthreeoffshorefields(Prinos,PrinosNorthandEpsilon).From2016to2020,annualproductionfromthesefieldsrangedbetween0.6mband1.4mb(lessthan1%ofGreece’scrudeoilsupply).SincetheIEA’slastEnergyPolicyReviewin2017,theHHRMhasgrantedeightnewexplorationconcessions;however,onlyoneoftheseconcessionshasmadeprogresstowardsproduction.In2017,thegovernmentapprovedadevelopmentplanfromEnergeanfortheWestKavakoloconcessionlocatedoffthewesterncoastofthePeloponnese.SincetheRussianinvasionofUkraine,thegovernmenthasexpressedanincreasedinterestinboostingdomesticoilandgasproduction.In2019,Greecebannedshaleoilandgasproduction,andnewdevelopmentscannotusefrackingtechniques.MarketstructureGreece’smarketsforcrudeoilandoilproductsarefullyliberalised,withpricessetbymarketforces.ThegovernmenthastheauthoritytosetmaximumretailpricesonoilproductsatthelocalornationallevelinordertofacetheunfavourableconsequencesintheGreekeconomythatmaybecausedbytheincreasedglobalcrudeoilpricesorunjustifiably.Themaximumpricesettingwaslastusedin2011.SincetheIEA’slastEnergyPolicyReviewin2017,Greecehastakenstepsthatincreasedcompetitionatthewholesaleandretaillevels.However,theoilmarketsstillhavearelativelyhighlevelofmarketconcentrationandlimitedcompetition.CrudeoilGreece’stworefiningcompanies(HELPEandMotorOil)purchasecrudeoilontheinternationalmarketfromadiverserangeofsuppliers.RussiawasasignificantsourceofcrudeoilsupplytoGreece(22%in2021),butcrudeoilimportsfromRussiaendedinDecember2022whentheEUbanonRussiancrudeimportsviashipenteredintoforce.Greecereceivesallofitscrudeoilimportsviaship.BothHELPEandMotorOilhavesignedcontractstosecurecrudesuppliesfromothercountriestocompensateforthelossofRussianimports.IEA.CCBY4.0.8.OIL152OilproductswholesalemarketFrom2016to2020,around50companieswereactiveintheGreekwholesaleoilmarket.However,overthisperiod,alimitednumberoflargesuppliersmaintainedadominantposition,withonlysmallchangesintheirmarketshares.In2020,ninecompanieshadacombinedmarketshareof83%,whilethelargestsupplierhadamarketshareof29%.Thegovernmentistakingstepstoimprovewholesalecompetition,includinga2016lawthat,amongotherchanges,reducedtheminimumcapitalandstoragecapacityrequiredtoreceiveawholesalelicence.TheholdersofwholesalelicencesmustregularlynotifytheMinisterofDevelopmentandInvestmentsandtheRAEabouttheirprices.Theholdersofrefiningandbiofuelslicencesmustnotifythesameauthoritiesonhowtheysetprices.OilproductsretailmarketIn2019,Greecehadaround6500licencedretailservicestations;however,onlyaround5700ofthesestationswereinoperation.Thisshowsacontinuingdeclineinthenumberofretailstations,fromaround7500in2016and8500in2008.However,GreecestillhasarelativelyhighnumberofretailstationspercapitacomparedtotherestofEurope.ThisreflectsthedistributionofGreece’smanyislandsandthescatteredpopulationlivinginisolatedmountainousregions.In2020,justsixcompaniesowned76%ofretailingfuellingstations,withonecompanyowning27%.TheholdersofretaillicencesareobligedtopostthepricesofoilproductssoldatretailservicestationsonthewebsiteoftheObservatoryofLiquidFuelPrices(http://www.fuelprices.gr)everytimepriceschangeoratleastonceeveryweek.PricesandtaxationOilproductsaresubjecttoaVATof24%andanexciseduty(Table8.2).Therearenumerousreductionsandexemptionsfortheexcisedutyonoilproductsdependingonthesector/enduse.Oilproductsusedfordomesticmarineshipping,ferriesandfishingandfordomesticaviationareexemptfromexciseduties.Dieselusedforheatingbetween15Octoberand30Aprilissubjecttoareducedexciseduty.Automotivedieselischargedalowertaxratethangasoline,withtheintentionofreducingthecostofcommercialroadfreight.Biofuelsaretaxedatthesamerateastheequivalentfossiltransportfuel.Asupplysecuritylevyischargedtoimportersofcrudeoilandoilproductsdestinedfordomesticconsumptionorrefineries.Theseleviesarecalculatedas1.2%oftherefinerypricefortherelevantcrudeorproduct,andfinanceafundusedtomaintainGreece’sstrategicoilreservesrequiredunderagreementswiththeIEAandtheEuropeanUnion.Table8.2Excisedutybyfuelexcludingvalue-addedtaxinGreece,2022Sector/enduseValueUnitEUR/GJHeavyfueloilHeating38EUR/tonne0.93LightfueloilHeating0.28EUR/litre7.29DieselAutomotive/heating0.41EUR/litre11.20Winterheating0.28EUR/litre7.65GasolineAutomotive0.7EUR/litre21.11LPGAutomotive430EUR/tonne9.35Heating60EUR/tonne1.30Estimatebasedon:heavyfueloil40.68GJ/tonne,lightfueloil0.038GJ/L,diesel0.037GJ/L,gasoline0.033GJ/L.IEA.CCBY4.0.8.OIL153ENERGYSECURITYGreece’sautomotivedieselpricesinthethirdquarterof2022werethe11thhighestamongIEAmembercountries,at1.93USD/litre,withataxrateof31%;higherthantheIEAaveragepriceof1.83USD/litrebutlowerthanIEA’staxrateof33%(Figure8.8).Greece’sunleadedgasoline(RON95)pricewasthefourth-highestamongIEAmembercountries,at2.13USD/litre,withataxrateof52%.TheaveragepriceforunleadedgasolineamongIEAmembercountrieswas1.79USD/litre,withanaveragetaxrateof39%(Figure8.8).Figure8.8PricecomparisonfortransportationfuelsintheIEA,3Q2022AutomotivedieselIEA.CCBY4.0.Unloadedgasoline(95RON)IEA.CCBY4.0.Inthethirdquarterof2022,Greece’sunleadedgasolinepriceswereamongthehighestofIEAmembercountries,whiledieselpriceswereclosertotheIEAmedian.Notes:TaxcomponentdataareunavailableforFinlandfor3Q2022;automotivedieseldataareunavailableforDenmark,ItalyandMexicofor3Q2022;premiumunleadedgasoline(95RON)dataareunavailableforDenmark,Italy,JapanandMexicofor3Q2022.Source:IEA(2022b).OilpolicyGreece’senergypolicyisfocusedonmaintainingsecurityofoilsupplywhilereducingdemandforoilinlinewithGHGemissionsreductiontargetsandprotectingconsumersfromhighenergyprices.TheNECPforeseesoildemanddecliningoverthelongtermas00.511.522.53USD/LTaxcomponent00.511.522.53USD/MWhTaxcomponentIEA.CCBY4.0.8.OIL154aresultofgovernmentpoliciestopromoterenewables,energyefficiencyandamodalshiftawayfromprivatecars.From2020to2030,thegovernmentexpectsoildemandtodecreasebyalmost100%forelectricitygeneration,66%forresidentialbuildings,39%forindustry,30%forservicesectorbuildingsbutonly4%forthetransportsector(withsomedeclineinroadtransportoildemandoffsetbyincreasingoildemandfrommarineshippingandaviation).Thekeymeasurestoreduceoildemandfocusonroadtransportation,byfarthelargestsourceofoildemand(89%in2020).Themainpolicytoreduceoildemandinroadtransportisabiofuelblendingmandate,whichrequiressharesofbiofuelsintheannualfuelsalesofallproducersanddistributorsofroadtransportationfuels.Therequiredsharesaresetannuallybygovernmentdecision.In2017,theblendingshareofbiodieselindiesel(byvolume)increasedfrom5.75%to7%andremainedatthislevelthrough2022.In2019,themandatewasextendedtorequirea1%shareofbioethanolorbioethersingasoline(byenergycontent),withtheshareincreasingto3.3%in2020andnochangeuntil2022.Thereisalsoanoverallrequirementthat0.2%ofblendedbiofuelsmeettheEUstandardforadvancedbiofuels.Thegovernmentisassessingapotentialincreaseintherequiredsharesunderthebiofuelmandate.GreecealsoaimstoreduceoildemandinroadtransportbysupportingEVs.TheNECPsetstargetsforEVstoaccountforatleast8.7%ofnewpassengercarregistrationsby2024and30%by2030(comparedto6.5%in2021).GreecehasarangeofsupportmeasurestoincreaseEVadoption,includingdirectsubsidies,reducedtaxesandregistrationfees,andsupportforEVcharginginfrastructure(seeChapter3).However,theNECPshowsthatthegovernmentexpectsbiofuelstoremainthekeyoptionforreducingroadtransportoildemandthrough2030.Thegovernmentalsoaimstoreduceroadtransportoildemandbysupportingamodalshiftawayfromprivatecars.Since2021,allregionalauthoritiesandcertainmunicipalitiesareobligedtopreparesustainableurbanmobilityplans(SUMPs).SUMPspromotetheuseofpublictransport,walkingandcycling,andmobilitymanagement.ThegovernmentcanfinanciallysupportthemeasuresproposedintheSUMPsaspartofthePublicInvestmentProgramorotherfinancialinstruments.TherearealsoeffortstoreduceoildemandthroughtheexpansionandincreasedelectrificationoftheGreekrailsystemforpassengersandfreight.Greeceislookingatoptionstoreduceoildemandfrommarineshipping,whichplaysamajorroleinitseconomyandisasignificantsourceofoildemand(9%in2020).In2018,theportofKillinidemonstratedaprojecttoallowdockedshipstobeconnectedtotheelectricitygridtoallowtheirenginestobeturnedoffwhiledocked.InFebruary2022,thegovernmentheldmeetingstodiscussthelegalandregulatorychangesneededtoallowshorepoweringofdockedships.GreeceparticipatesintheEuropeanprogramme“PoseidonMedII”,whichaimstointroduceLNGintotheshippingindustryasthemainfuel,aswellasinthedevelopmentoftheinfrastructurenetworkforrefuelling.ThegasTSOhasplanstoinvestininfrastructurethatwouldsupportLNGpowershipping.Thegovernmentalsoaimstoreduceoil-firedheatinginthebuildingssector.Oilwasthesecond-largestsourceofenergyforbuildingsin2020,covering24%oftotalbuildingenergydemandand31%ofresidentialbuildingenergydemand,thefourth-highestshareamongIEAcountries.IntheClimateLawof2022,thegovernmenthassetregulationstolimittheinstallationanduseofoil-heatingboilers.From2025,theinstallationofoilboilersIEA.CCBY4.0.8.OIL155ENERGYSECURITYwillbebanned,andfrom2030,oilforheatingwillhavetocontainatleast30%renewableliquidfuels(byvolume).Severalofthesupportschemesforbuildingrenovationsprovidesubsidiesorothersupportfortransitioningawayfromoil-firedheating(seeChapter3).Therearenospecificpoliciesaimingtoreduceoildemandfromindustry.Greeceisalsoaimingtolargelyeliminateoil-firedelectricitygeneration,whichtakesplacemainlyontheGreekislands.Greecehasagoaltointerconnectallpopulatedislandstothemainlandgridby2030.TheelectricityTSODevelopmentPlancommitssignificantresourcestointerconnectingtheislands.Greece’srecoveryandresilienceplanalsoincludesEUR200milliontosupporttheinterconnectionoftheislands(seeChapter6).Therearealsoplanstoreduceoildemandfromoil-firedgenerationbydeployingrenewableenergyontheislands(seeChapter3).FollowingtheRussianinvasionofUkraine,theEuropeanUnionimposedsanctionsbanningseaborneimportsofRussiancrudeoil(whichstartedon5December2022)andRussianoilproductimports(whichstartedon5February2023).ThesebansendedRussianimportstoGreece,astheseimportswereonlydeliveredbyship.Greece’srefinerieshavesecuredcontractstoreplacetheimportsfromRussiawithsuppliesfromothercountries.Therearealsoeffortstoincreasedomesticoilproduction.AddressingtheimpactsofhighoilpricesAsofthefallof2021,globalenergypricesbegantoincreaserapidly,especiallyinEurope.Pricespikesandhighvolatilitypersistedinto2022,drivenmainlybytheimpactsoftheRussianinvasionofUkraine.Greecehastakennumerousstepstolimittheimpactofhighenergyprices,especiallyforvulnerableconsumers.Theseeffortsincludeexpandingexistingmeasurestargetingenergypovertyandintroducingbroadermeasurestoreduceenergypricesformostconsumers.FromSeptember2021toNovember2022,GreecededicatedEUR9billiontoenergysubsidiesandothermeasurestohelpconsumerspaytheirenergybills.MostofthissupportwasdeliveredthroughtheEnergyTransitionFund,whichwasestablishedin2021tofundavarietyofsubsidiesforelectricity,naturalgas,heatingoilandtransportationfuels.Theheatingoilallowance(establishedin2019)providesgrantstovulnerableconsumerstoreducethecostofoil-basedheating.In2021,therequirementfortheheatingallowancewasrelaxedtoincreasethenumberofconsumerscovered,andadditionalfundingwasprovidedfromtheEnergyTransitionFund.TheallowanceisagrantofEUR100-750peryearforhouseholdswithanannualincomebetweenEUR14000andEUR29000andpropertyvaluebetweenEUR180000andEUR250000.Thereareotherrequirementsintendedtofocusthegrantsonvulnerableconsumers,andacomplexformulaisusedtocalculatethelevelofthesubsidybasedonincome,typeofhouseholdandestimatedheatingdemand.In2021,around1millionhouseholdsreceivedaheatingallowance(upfrom700000in2020)foracostofEUR168million(upfromEUR84millionin2020)(AthensNews,2021).InApril2022,thegovernmentlaunchedanonlineplatformprovidingdirectpaymentstoconsumerstooffsetthehighcostofroadtransportationfuels.Thetransportfuelsubsidyis0.15-0.2EUR/litreforupto60litresoffuelpermonthandisavailabletoconsumerswithanannualincomebelowEUR30000.EUR130millionwerebudgetedforfuelsubsidiesinApril,MayandJune2022andEUR200millionforfuelsubsidiesinJuly,AugustandSeptember2022.IEA.CCBY4.0.8.OIL156OilemergencyresponsepolicyGreecemaintainsstocksofcrudeoilandoilproductstoensureadequatesuppliesduringemergencysituationsandtomeetIEAandEUstockholdingobligations.IEAmembercountriesareobligedtoholdemergencyoilstocks(crudeoroilproducts)equivalenttoatleast90daysofannualnetoilimportsor61daysofconsumption,whicheverishigher.GreecehasconsistentlyheldstocksabovetheIEA90-dayobligation,with141daysofstocksattheendofAugust2022(Figure8.9).InGreece,oilstocksareheldbyprivateindustryatstoragesitesacrossthecountry.Thelegalframeworkpermitskeepingupto30%ofstocksinotherEUmemberstates,transposingfullytheprovisionsoftherespectiveEuropeanDirective.In2021and2022,GreekoilcompaniessignedticketagreementswithoilcompanieslocatedinMaltaandCyprustoholdemergencystocks.Legislationallowsforthecreationofacentralstockholdingagencythatcouldpurchaseandmanagegovernment-heldoilstocks.However,nosuchagencyexists,andthegovernmenthasnotindicatedanyinterestincreatingone.UnderGreeklaw(Law4123/2013),allcompaniesthatimportoiltoGreeceandlargeendusersimportingpetroleumoilproductsforownconsumptionarerequiredtoholdoilstocksequivalentto90daysoftheirnetimportsduringthepreviouscalendaryear.Figure8.9EmergencyoilstocksbytypeinGreece,January2011toSeptember2022IEA.CCBY4.0.Source:IEA(2022b).Refineriesarerequiredtomaintainatleastone-thirdoftheirobligationintheformoffinaloilproducts.Fortheremainingtwo-thirdsoftheirobligation,refineriescankeepstocksofcrudeoil,refineryfeedstocksandadditives/oxygenates,orfinaloilproducts.Allothercompaniescoveredbythestockholdingobligationmustholdstocksofeachoilproducttheyimportedduringthepreviouscalendaryear.Inadditiontotheobligationtoholdemergencystocks,eachoiltradelicenceholder,withtheexceptionofbitumenmarketinglicences,isrequiredtomaintaincommercialstocksequivalenttoatleastfivedaysofsalesrealisedbyeachholderinthedomesticmarketduringthepreviousyear,foreachcategoryofproductsaccordinglywiththelicencecategory.TheMoEEhastheauthoritytoensurecompliancewithemergencyandcommercialoilstockholdingrequirementsandcanissuesanctionsfornon-compliance.CompaniesrequiredtomaintainemergencystocksmustsubmitamonthlyreporttotheMoEE’sDirectorateofHydrocarbonsshowingthelevelofemergencystocksheldwithintheir020406080100120140160180200Jan-11Jun-11Nov-11Apr-12Sep-12Feb-13Jul-13Dec-13May-14Oct-14Mar-15Aug-15Jan-16Jun-16Nov-16Apr-17Sep-17Feb-18Jul-18Dec-18May-19Oct-19Mar-20Aug-20Jan-21Jun-21Nov-21Apr-22Sep-22DaysofnetimportsIndustrydomestic90-daynetimportsIEA.CCBY4.0.8.OIL157ENERGYSECURITYfacilitiesandthoseownedbythembutheldinfacilitiesofothereconomicoperatorsorothercountries’stockholdingentities.Inpractice,emergencystocksarecommingledwithoperationaland/orcommercialstocks,butemergencystocksmustbeheldinstoragetanksthathavebeencertifiedbytheDirectorateofHydrocarbons.TheNationalEmergencyPlan(NEP)isthekeydocumentdefininghowGreecerespondstoanoilsupplydisruption.Itdetailstheprocessforidentifyingandofficiallydeclaringasupplydisruption.Itnotesthecompetententities,processesandmeasurestohandleasupplydisruptiondependingonhowmuchsupplyislackingandthescopeofthedisruption(international,regional,domestic,etc.).Italsospecifiessanctionsthatmaybetakenfornon-compliancebypartieswithresponsibilitiestoactduringasupplycrisis.TheNEPcomesintoforceandisterminatedbasedonthedecisionoftheMoEE.Tosupportrapidandeffectivedecisionmakingduringanoilcrisis,theNEPiscomplementedbyanOperationalHandbook,publishedinDecember2021.Thehandbookisintendedtoprovideaclearoverviewoftheentireemergencyresponseprocess.Itnotesthekeyactorsandtheirrolesanddefinesfiveescalatinglevelsoflocalsupplyemergenciesbasedontheamountofsupplylackinginthemarket.Itadvisesontheappropriatemeasurestobetakenateachlevel;theseincludethemeasuresdefinedintheNEP,alongwithnewmeasuressuchasteleworking,andhowthesemeasurescanbeeffectivelycombined.Italsooutlinestenpossibleoilsupplydisruptionscenariosanddetailsnecessaryprocessesandpossiblemeasuresforeachscenario.Greeceaimstomanageoilsupplydisruptionsthroughdemandrestraintmeasures,measuresaffectingthelevelofoilsupplyandothermeasures(e.g.financial).TheNEPandOperationalHandbookdefinethesemeasuresthatallowincreasinglevelsofmarketinterventionstominimisetheimpactsofadisruptiononGreece’seconomy,securityandsafety.Thecountrywillstartwithvoluntarymeasurestoreducedemandorincreasesupply,whichcanbeescalatedtomandatorymeasures.Voluntarydemandrestraintmeasuresinclude:useofpublictransportandmotorbikesorbicyclesinsteadofprivatevehicles,carpoolingand/orusingtaxis,savingenergyinhouseholdsandbusinesses,andreducingtrafficandecologicaldriving.Compulsorydemandrestraintmeasuresincluderestrictionsonthecirculationofmeansoftransport,restrictionsonenergyconsumption,obligatoryuseofalternativefuels,restrictionsontheoperationofindustrialfacilities,andlimitationsonoilproductsupplytoconsumers(rationcards).Ifthesemeasuresareinsufficienttoaddressthedisruption,thegovernmentcanorderreleasesofemergencyoilstocksand/orobligatoryproductionofspecificquantitiesofparticularoilproductsbytherefineriestoensureadequatesupply.TheMoEEhasoverallresponsibilityforsettingoilsecuritypolicy.TheCommitteefortheManagementofSevereSupplyDisruptionofCrudeOilandPetroleumProducts(CMSD)playsakeyroleindefiningandimplementingoilsecuritypolicyandmanagingtheresponsetoanoilsupplydisruption.TheCMSDischairedbytheSecretaryGeneraloftheMoEEandincludestheChairoftheRAE;directorsoftheMoEE;andrepresentativesfromrelevantministries,thearmedforcesandtheoilindustry.TheCMSDproposesemergencymeasuresforconsiderationbytheMoEE,advisestheMoEEonissuesrelatedtoemergencystocks,co-operateswiththeEuropeanUnionandtheIEAonissuesrelatedtooilstockreleases,andchecksonlicenceholderstoensuretheycaneffectivelysupportemergencyresponsemeasures.Intheaftermathofacrisis,theCMSDsupervisestheliftingofanyimplementedemergencymeasures.IEA.CCBY4.0.8.OIL158Ifasupplydisruptionrequirestheimplementationofmeasuresinvolvinggovernmentinterventions,theCoordinationCommitteefortheImplementationofEmergencyMeasuresisestablished.Itplaysakeyroleinthetimelyandeffectiveimplementationofemergencymeasuresbyvariousgovernmentbodies.AssessmentGreece’sdemandforoilhasbeendeclining,butoilstillplaysanessentialroleinitsenergysystem.In2021,oilcoveredalmostalltransportenergydemand(95%)andsignificantsharesofenergydemandinindustry(36%),buildings(21%)andelectricitygeneration(8.5%).Greecehasonlylimiteddomesticoilproductionandisreliantonoilimportstocoveraround99%ofitsoildemand.Greece’senergypolicyisfocusedonmaintainingsecurityofoilsupplywhilereducingdemandforoilinlinewithGHGemissionsreductiontargetsandprotectingconsumersfromhighenergyprices.Thegovernmenthasintroducedavarietyofmeasurestoreduceoildemand.KeymeasurestoreduceoildemandfromtransportincludeabiofuelblendingmandateandavarietyofsupportmechanismsforelectricvehiclesandEVcharginginfrastructure.Greecehasarelativelyhighuseofoil-firedheatingbutistakingstepstotransitiontootherheatingsources.The2022ClimateLawbanstheinstallationofoilboilersstartingin2025anddemandsthatheatingoilcontainatleast30%renewableliquidfuelsby2030.Thereissupportavailableforreplacingoilboilersaspartofgovernment-fundedrenovationprogrammes.Thereisalsoamajorefforttoendtheuseofoil-firedelectricitygenerationonGreekislandsthroughinterconnectiontothemainlandandthedeploymentofrenewables.Basedonexistingandplannedmeasures,theNECPforeseesoildemanddecliningoverthelongtermasaresultofgovernmentpoliciestopromoterenewables,energyefficiencyandamodalshiftawayfromprivatecars.From2020to2030,thegovernmentexpectsoildemandtodecreasebyalmost100%forelectricitygeneration,66%forresidentialbuildings,39%forindustry,30%forservicesectorbuildingsbutonly4%forthetransportsector(withsomedeclineinroadtransportoildemandoffsetbyincreasingoildemandfrommarineshippingandaviation).ThegovernmentneedstomakeadditionaleffortstoensureoildemandcanberapidlyreducedinlinewithincreasingEUclimateandenergysecurityambitions.Thereshouldbeanincreasedfocusonboostingsupportforelectrificationandtheuseofsustainablebiofuels.Inaddition,greatereffortsareneededtotackletheexpectedincreaseinairandmaritimetransport.Thegovernmenthasindicatedaninterestinraisingthesharesrequiredbythebiofuelblendingmandate.TheIEArecommendsregularlyincreasingtheseshares,withafocusonincreasingtheshareofadvancedsustainablebiofuelstoensuresustainedreductionsintransportoildemand.Thegovernmentshouldalsoconsiderexpandingtheblendingrequirementtoaviationandshipping.ThemainproducersofbiofuelsinGreecearerefineries,whichhaveasignificantsparebiofuelproductioncapacity,withonly15%oftheircapacityinoperationin2021.Greeceshoulduseitsfullbiofuelsproductionpotentialtohelpreduceoildemand.ThegovernmentIEA.CCBY4.0.8.OIL159ENERGYSECURITYshouldworkwithindustryandconsiderprovidingsubsidiesasneededtoensureGreececanproducetheneededvolumesofsustainableadvancedbiofuels.TheNECPincludesapriorityfor“replacementofpollutingpassengervehiclesandfreightvehicles”.Greece’spassengerandfreightfleetsaresignificantlyolderthantheEUaverage,leadingtoincreasedoildemandandhigherGHGemissions.Theoldageofthefleetalsolimitstheabilityofbiofuelstoreduceoildemand.Withanaveragevehicleageof16.6years,manyvehiclescannotrunongasolinewithmorethan5%ethanol.MoreeffortsareneededtosupportGreekconsumersinpurchasingnewervehicleswithaclearfocusonefficiencyandelectrification.Therenovationofthecarfleetshouldbepromotedthroughacash-for-clunkersprogrammethatgivesconsumerssubsidiestopurchaseneworusedhigh-efficiencyvehiclesiftheyscrapanoldvehicle.Inaddition,thegovernmentshouldsupportestablishinglow-carbonemissionszonesincitiestoexcludeverypollutingcarswhileatthesametimepromotingcarsharingandsustainablepublictransport,walkingandcycling.Therearenumerousreductionsandexemptionsfortheexcisedutyonoilproducts,dependingonthesector/enduse.AsanEUmemberstate,Greecehascommittedtoeliminatefossilfuelsubsidies.However,theOECDestimatesthatin2020,GreeceprovidedoverEUR1.9billioninfossilfuelsubsidies.Someofthelargestsubsidiesrelatetooiluse,includingEUR0.19billioninreducedexcisetaxesondieselusedforheating,EUR0.17billionforheatingallowancestohouseholdsandEUR0.4billioninsubsidiestooil-firedelectricitygenerationinnon-interconnectedislands.From2015to2020,governmentsupportforfossilfuelsdecreasedby14%(reductionsindirecttransferssupportingoil-firedelectricitygenerationinnon-interconnectedislandsandlowerspendingonheatingallowances);however,spendingonheatingallowancesincreasedsubstantiallyin2021and2022.In2020,fossilfuelsubsidieswereequivalenttomorethanone-quarterofenergytaxrevenue,amongthehighestratesintheOECD(OECD,2022).Thegovernmentshouldreviewoiltaxationpoliciestoreducefossilfuelsubsidiesandendfavourabletaxationofdieselsothatpricesignalssteerconsumerstowardslesspollutingandmoreefficientoptions.TaxationconvergencefordieselandgasolineisalreadyarealityinmanyIEAcountries,suchasBelgium,Canada,France,Switzerland,theUnitedKingdomandtheUnitedStates.Savedexpendituresfromeliminatingfossilfuelsubsidiescanbedirectedtoexistingornewprogrammestohelpconsumersadoptmoreefficientoptions.SincetheIEA’slastEnergyPolicyReviewin2017,Greecehasincreasedcompetitionatthewholesaleandretaillevels.However,theoilmarketsstillhavearelativelyhighlevelofmarketconcentrationandlimitedcompetition.In2021,therewere56companiesactiveintheGreekwholesaleoilmarket,aslightincreasecomparedto53in2016.However,justninecompaniesdominatethewholesalemarketsupply,withacombinedmarketshareof83%in2020,whilethelargestsupplierhadamarketshareof29%.Thereisalsonotablemarketconcentrationattheretaillevel,withthetwolargestcompanies,HELPEandMotorOil,togetherowningover40%ofoperationalretailservicesstations.Thegovernmentshouldcontinueworkingtoincreaseoilmarketcompetitionandreducethebarrierstotheentranceofnewcompanies.Pricetransparencyandconsumerawarenesscouldbeincreasedbyupdatingthewebsiteforfuelpricestomakeitmoreuser-friendly.IEA.CCBY4.0.8.OIL160RecommendationsThegovernmentofGreeceshould:Increasesupportforelectrificationandadvancedbiofuelfuels,andmakegreatereffortstotackletheexpectedincreaseinairandmaritimetransport.Incentivisesubstitutionoftheoldcarfleet,ensuringthatoldcarsaretakenoutofcirculationandreplacedwithmoreefficientvehiclesandelectricvehicles.Reviewoiltaxationpoliciestoreducefossilfuelsubsidiesandendthefavourabletaxationofdieselsothatpricesignalssteerconsumerstowardslesspollutingandmoreefficientoptions.Furtherpromotecompetitionintheretailoilfuelmarketsbyincreasingthenumberofnewcompaniesandraiseawarenessoftheexistenceofthepricemonitoringmechanismthroughinformativecampaigns.ReferencesAthensNews(2021),Heatingbenefit:Newissuancecriteriaandamountswithexamples(webpage),https://en.rua.gr/2021/10/08/heating-benefit-new-issuance-criteria-and-amounts-with-examplesIEA(InternationalEnergyAgency)(2022a),WorldEnergyBalances(database),https://www.iea.org/data-and-statistics/data-product/world-energy-balances(accessedon15June2022)IEA(2022b),OECDEnergyPricesandTaxesQuarterly(database)https://www.iea.org/data-and-statistics/data-product/oecd-energy-prices-and-taxes-quarterly(accessedon15June2022)OECD(OrganisationforEconomicCo-operationandDevelopment)(2022),OECDInventoryofSupportMeasuresforFossilFuels:CountryNotes,https://www.oecd-ilibrary.org/sites/5a3efe65-en/1/3/21/index.html?itemId=/content/publication/5a3efe65-en&_csp_=2ffa7a733148fec42dccf926d7619e1c&itemIGO=oecd&itemContentType=bookIEA.CCBY4.0.161ANNEXESANNEXA:ReviewteamandsupportingstakeholdersReviewcriteriaTheSharedGoals,adoptedbytheIEAMinistersattheir4June1993meetinginParis,providetheevaluationcriteriaforthein-depthreviews.TheIEASharedGoalsareavailableonline.ReviewteamandpreparationofthereportTheIEA’sin-depthreviewvisitofGreecetookplaceon12-18July2022.Thereviewteammetwithgovernmentofficials,energysuppliers,marketparticipants,interestgroups,consumerassociations,researchinstitutionsandotherstakeholders.Thereportwasdraftedbasedoninformationobtainedinthesemeetings,thereviewteam’sassessmentofGreece’senergypolicy,thegovernment’sresponsetotheIEAenergypolicyquestionnaireandsubsequentresearchbytheIEA.ThemembersoftheteamwereIEAmembercountriesLarsMaindert,Netherlands(teamleader)JózsefLezsák,HungaryNaokoDoi,JapanMicheledeNigris,ItalyMarkelaStamati,EuropeanCommissionNathanReich,UnitedStatesJoséLuisCaboSánchez,SpainInternationalEnergyAgencyAadvanBohemenKiyomiHyoePeterJourneay-KalerTheteamisgratefulfortheco-operationandassistanceofthemanypeoplewhosupportedthereview.Thankstotheirhospitality,opennessandwillingnesstoshareinformation,thevisitwashighlyinformative,productiveandenjoyable.TheteamexpressesitsgratitudetoHisExcellencyMrKonstantinosSkrekas,MinisterofEnvironmentandEnergy,aswellasthegovernmentofficials,includingMrsAlexandraSdoukou,SecretaryGeneralforEnergyandMineralResources;PetrosVarelidis,SecretaryGeneralforNaturalEnvironmentandWater;andIoannisXifaras,SecretaryGeneralforTransport,whosecommentshelpedframeallthediscussionsduringthereview.TheteamextendsaspecialthankstoSteliosAlifantis,VassilikiSita,GeorgiosChoundri,KaitaKaramichalakouandKaterinaKoumentakoufortheirtirelesseffortsinco-ordinatingthereviewvisit,promptresponsestotheteam’smanyrequestsandpatiencethroughouttheweeksleadingupto,duringandafterthereview.ThereviewwaspreparedundertheguidanceofMrAadvanBohemen,HeadoftheEnergyPolicyandSecurityDivision,IEA.MrPeterJourneay-Kalermanagedthereviewandistheauthorofthereport.IEA.CCBY4.0.162ANNEXESMsKiyomiHyoeco-ordinatedtheemergencyresponsecomponentofthereviewandcontributedtothechaptersonoil,naturalgasandelectricity.MrAlessioScanzianiwrotethechapteronenergyefficiency.MrAlessioScanziani,MrAndersCaratozzolo,MsClémenceLizé,MsSuMinParkandHanYoungChangpreparedanddraftedthesectionsrelatingtoenergydatacontainedineachchapter.Helpfulcomments,chapterreviewsandupdateswereprovidedbythefollowingIEAstaff:OrestisKarampinis,SimonBennet,InsaHandschuch,BrittaLabuhn,ChiaraD’Adamo,HeymiBahar,JacquesWarichet,EnriqueGutierrezTavarez,RenaKuwahata,GergelyMolnar,KristinePetrosyan,YuyaAkizukiandTorilBosoni.SpecialthankstotheIEASecretariatwithregardtothedata,publicationandediting.AstridDumondandIsabelleNonain-Semelinmanagedtheediting,layoutandpublication.TanyaDyhinandCharnerRamseypreparedthemaps.RobertaQuadrelli,SteveGervaisandZakiaAdamprovidedsupportonstatistics.JadMouwad,JethroMullenandGregoryViscusisupportedthepresslaunch.JenniferAllianwastheeditor.MeetingsheldwiththefollowingorganisationsCentreforRenewableEnergySources(CRES)CentreofResearchandTechnology(CERTH)DimósiaEpicheírisiAeríou(DEPA)ELPEDISONExecutiveAuthorityofthePartnershipAgreementGreekAssociationofResElectricityProducers(HELLASRES)GreenpeaceGreeceHellenicAssociationofPhotovoltaicEnergyProducers(SPEF)HellenicAssociationofSmallHydroelectricPlants(ESMYE)HellenicElectricityDistributionNetworkOperatorS.A.(HEDNO)HellenicEnergyExchange(HEnEXS.A.)HellenicHydrocarbonResourcesManagement(HHRM)HellenicPetroleumR.S.S.O.P.P.S.A.(HELPE)HellenicWindEnergyAssociation(HWEA–ELETAEN)HERONEnergyS.A.IndependentPowerTransmissionOperator(IPTO)InnovationHubInstituteforEnergyofSoutheasternEurope(IENE)MinistryofDevelopmentandInvestments–GeneralSecretariatforResearchandInnovation(GSRI)MinistryofEnvironmentandEnergyMinistryofInfrastructureandTransportMotorOilHellasNationalNaturalGasSystemOperatorS.A.(DESFA)NationalTechnicalUniversityofAthens(NTUA)NetworkofSustainableGreekIslands(DAFNINetwork)OperatorofRenewableEnergySourcesandGuaranteesofOrigin(DAPEEP)PublicPowerCorporationS.A.(PPC)IEA.CCBY4.0.ANNEXES163ANNEXESRythmistikiArchiEnergeias(RAE)TheGreenTankTransAdriaticPipelineAG(TAP)WorldWildlifeFundGreece(WWF)IEA.CCBY4.0.ANNEXES164ANNEXB:KeystatisticaldataandnotesUnit:PJSUPPLY1973199020002010201920202021TOTALPRODUCTION97.7385.1420.5397.5252.2190.7198.8Coal70.9298.0344.2306.3129.368.360.3Peat-------Oil-35.110.74.46.93.72.4Naturalgas-5.81.80.30.40.30.2Biofuelsandwaste118.837.442.338.546.744.445.2Nuclear-------Hydro8.06.413.326.914.412.021.3Wind-0.01.69.826.233.537.7Geothermal-0.10.10.70.40.20.2Solar/other-2.46.510.727.928.331.6TOTALNETIMPORTS2442.8502.5728.2743.2651.4663.3609.6CoalExports0.9-1.7--0.0-Imports19.738.533.916.88.57.86.9Netimports18.838.532.216.88.57.86.9OilExports204.4312.1171.0401.6776.3797.3885.3Imports689.4912.5979.91114.21350.11296.21353.0Int'lmarineandaviationbunker-61.2-139.0-183.6-142.0-152.8-83.0-105.0Netimports423.9461.4625.3570.6421.0415.9362.7NaturalgasExports----0.61.20.6Imports--70.7135.3186.6209.0227.3Netimports--70.7135.3186.1207.8226.8ElectricityExports0.12.26.310.14.03.514.0Imports0.34.86.230.739.835.427.3Netimports0.22.6-0.020.535.831.913.3TOTALSTOCKCHANGES-46.110.1-12.211.016.1-34.937.2TOTALSUPPLY(TES)3494.5897.71136.51158.3924.1824.4851.0Coal88.1337.7378.4329.2133.876.771.6Peat-------Oil379.4505.4623.0580.0446.7386.1396.4Naturalgas-5.871.4135.4188.0206.3228.1Biofuelsandwaste118.837.442.345.050.949.350.7Nuclear-------Hydro8.06.413.326.914.412.021.3Wind-0.01.69.826.233.537.7Geothermal-0.10.10.70.40.20.2Solar/other-2.46.510.727.928.331.6Electricitytrade40.22.6-0.020.535.831.913.3SharesinTES(%)Coal17.837.633.328.414.59.38.4Peat-------Oil76.756.354.850.148.346.846.6Naturalgas-0.66.311.720.325.026.8Biofuelsandwaste13.84.23.73.95.56.06.0Nuclear-------Hydro1.60.71.22.31.61.52.5Wind--0.10.82.84.14.4Geothermal-0.00.00.10.00.00.0Solar/other-0.30.60.93.03.43.7Electricitytrade4-0.3-1.83.93.91.60isnegligible,-isnil,..isnotavailable,xisnotapplicable.Pleasenote:roundingmaycausetotalstodifferfromthesumoftheelements.IEA.CCBY4.0.ANNEXES165ANNEXESUnit:PJDEMANDFINALCONSUMPTION1973199020002010201920202021TFC357.0606.8775.1815.8668.4624.0636.8Coal21.851.036.712.68.37.07.7Peat-------Oil270.7409.4519.7510.0365.5326.4330.0Naturalgas-4.015.847.555.561.762.0Biofuelsandwaste118.837.439.641.744.543.645.4Geothermal-0.10.10.70.40.20.2Solar/other-2.46.510.112.012.312.7Electricity45.8102.5155.3191.2180.7171.1177.3Heat--1.21.91.61.71.5SharesinTFC(%)Coal6.18.44.71.51.21.11.2Peat-------Oil75.867.567.162.554.752.351.8Naturalgas-0.72.05.88.39.99.7Biofuelsandwaste15.36.25.15.16.77.07.1Geothermal-0.00.00.10.10.0-Solar/other-0.40.81.21.82.02.0Electricity12.816.920.023.427.027.427.8Heat--0.20.20.20.30.2TOTALINDUSTRY5145.1196.1215.9191.8146.9140.0138.3Coal19.249.635.712.58.16.87.5Peat-------Oil99.490.9106.487.656.747.547.4Naturalgas-4.015.330.531.936.534.0Biofuelsandwaste1-8.09.810.35.86.55.5Geothermal----0.00.00.0Solar/other--0.00.10.10.10.1Electricity26.543.648.850.944.342.743.8Heat-------Sharesintotalindustry(%)Coal13.225.316.56.55.54.95.4Peat-------Oil68.546.349.345.738.633.934.3Naturalgas-2.17.115.921.726.024.6Biofuelsandwaste1-4.14.55.44.04.63.9Geothermal-------Solar/other------0.1Electricity18.322.222.626.530.230.531.7Heat-------TRANSPORT386.6211.0267.9313.2253.1215.3231.5OTHER6125.3199.8291.3310.8268.4268.7267.0Coal1.91.41.00.10.20.20.2Peat-------Oil85.6108.1146.3115.965.073.461.6Naturalgas--0.616.522.824.427.2Biofuelsandwaste118.829.429.826.030.928.730.9Geothermal-0.10.10.70.40.20.2Solar/other-2.46.510.111.912.212.7Electricity19.158.5105.8139.7135.7127.8132.8Heat--1.21.91.61.71.5Sharesinother(%)Coal1.50.70.4-0.10.10.1Peat-------Oil68.354.150.237.324.227.323.1Naturalgas--0.25.38.59.110.2Biofuelsandwaste115.014.710.28.411.510.711.6Geothermal-0.10.00.20.20.10.1Solar/other-1.22.23.24.44.54.7Electricity15.229.336.344.950.647.649.7Heat--0.40.60.60.60.60isnegligible,-isnil,..isnotavailable,xisnotapplicable.Pleasenote:roundingmaycausetotalstodifferfromthesumoftheelements.IEA.CCBY4.0.ANNEXES166Unit:PJDEMANDENERGYTRANSFORMATIONANDLOSSES1973199020002010201920202021ELECTRICITYGENERATION7Input(PJ)139.4372.3501.6509.7372.4319.4351.1Output(PJ)53.4125.2192.4206.6174.9173.4196.8Output(TWh)14.834.853.457.448.648.254.7Outputshares(%)Coal35.572.464.253.725.013.79.7Peat-------Oil49.522.316.610.611.59.88.5Naturalgas-0.311.117.129.839.941.1Biofuelsandwaste1--0.30.61.41.01.0Nuclear-------Hydro15.05.16.913.08.26.910.8Wind--0.84.715.019.319.2Geothermal-------Solar/other---0.39.19.29.6TOTALLOSSES137.4302.5372.8359.6254.2205.6215.8ofwhich:Electricityandheatgeneration886.1247.1308.1301.1195.3143.9152.4Othertransformation24.70.1-16.4-24.3-31.4-32.4-34.8Ownuseandtransmission/distributionlosses26.655.381.182.890.394.198.2Statisticaldifferences0.0-11.7-11.3-17.21.4-5.3-1.6INDICATORS1973199020002010201920202021GDP(billion2015USD)121.11158.29201.42239.74203.72185.34200.79Population(millions)9.0210.2710.8111.1210.7210.7110.67TES/GDP(MJper2015USD)94.085.675.644.834.534.454.24Energyproduction/TES0.200.430.370.340.270.230.23PercapitaTES(GJpercapita)54.8187.44105.17104.1586.1976.9779.76Oilsupply/GDP(MJper2015USD)93.133.193.092.422.192.091.98TFC/GDP(MJper2015USD)92.953.843.853.403.283.373.17PercapitaTFC(GJpercapita)39.5759.1171.7273.3662.3458.2659.69CO2emissionsfromfuelcombustion(MtCO2)1033.769.987.983.456.648.049.7CO2emissionsfrombunkers(MtCO2)102.88.111.58.78.15.25.8GROWTHRATES(%peryear)73-9090-0000-1010-1818-1919-2020-21TES3.62.40.2-2.6-1.6-10.83.2Coal8.21.1-1.4-6.6-30.0-42.7-6.6Peat-------Oil1.72.1-0.7-3.63.0-13.62.7Naturalgas-28.66.63.19.09.810.6Biofuelsandwaste14.11.20.61.41.4-3.12.9Nuclear-------Hydro-1.37.67.3-3.2-30.4-16.476.6Wind-71.919.711.115.328.112.6Geothermal--4.725.9-7.116.4-45.6-23.0Solar/other-10.75.011.410.51.311.8TFC3.22.50.5-2.61.5-6.62.0Electricityconsumption4.94.22.1-0.91.5-5.33.6Energyproduction8.40.9-0.6-3.4-16.5-24.44.2Netoilimports0.53.1-0.9-3.7-0.2-1.2-12.8GDP1.62.41.8-2.21.8-9.08.3TES/GDP2.0-0.1-1.5-0.4-3.4-1.9-4.7TFC/GDP1.60.0-1.2-0.4-0.32.6-5.80isnegligible,-isnil,..isnotavailable,xisnotapplicable.Pleasenote:roundingmaycausetotalstodifferfromthesumoftheelements.IEA.CCBY4.0.ANNEXES167ANNEXESFootnotestokeystatisticaldata1Biofuelsandwastecomprisesolidbiofuels,liquidbiofuels,biogases,andindustrialwaste.Dataareoftenbasedonpartialsurveysandmaynotbecomparablebetweencountries.2Inadditiontocoal,oil,naturalgasandelectricity,totalnetimportsalsoincludebiofuels.3Excludesinternationalmarinebunkersandinternationalaviationbunkers.4Totalsupplyofelectricityrepresentsnettrade.AnegativenumberintheshareofTESindicatesthatexportsaregreaterthanimports.5Industryincludesnon-energyuse.6Otherincludesresidential,commercialandpublicservices,agriculture/forestry,fishingandothernon-specified.7InputstoelectricitygenerationincludeinputstoelectricityandCHPplants.Outputrefersonlytoelectricitygeneration.8Lossesarisingintheproductionofelectricityandheatatmainactivityproducerutilitiesandautoproducers.Fornon-fossil-fuelelectricitygeneration,theoreticallossesareshownbasedonplantefficienciesofapproximately100%forhydro,windandsolarphotovoltaic.9MJperthousandUSdollarsat2015pricesandexchangerates.10“CO2emissionsfromfuelcombustion”havebeenestimatedusingtheIPCCTierISectoralApproachmethodologyfromthe2006IPCCGuidelines.Emissionsfrominternationalmarineandaviationbunkersarenotincludedinnationaltotals.Statisticalnotesfordatausedinthereport•UnlessotherwisenotedallGDPdataareinUSD2015pricesandPPPs(PurchasePowerParity).•TotalEnergySupply(TES)comprisesproduction+imports–exports–internationalmarineandaviationbunkers±stockchanges.Thisequalsthetotalsupplyofenergythatisconsumeddomestically,eitherintransformation(e.g.,electricitygenerationandrefining)orinfinaluse.•TotalFinalConsumption(TFC)isthefinalconsumptionofenergy(electricity,heatandfuels,suchasnaturalgasandoilproducts)byendusers,notincludingthetransformationsector(e.g.,powergenerationandrefining).•Totalfinalenergyconsumption(TFEC)excludesnon-energyusewhichiscountedintotalfinalconsumption(TFC).TFECprovidesamoreaccurateassessmentoftheshareofenergydemandcoveredbyrenewableenergyandisbetteralignedwiththeEU’sgrossfinalenergyconsumptionmetric,whichisusedtosetEUmemberstaterenewableenergytargets.•Thesharesofrenewablesintotalfinalenergyconsumption,electricitygeneration,heatingandcoolingandtransportdifferifcomputedwithIEAorEurostatmethodologies.Eurostatmethodologyincludesmultiplyingfactorsandnormalisationprocedures.•Bioenergyreferstosolidandliquidbiofuels,renewablewasteandbiogasandexcludesnon-renewablewaste.•Buildingsincludestheenergyuseoftheresidentialsector(residentialbuildings)andcommercialandpublicservicesectors(servicesectorbuildings).•Transportexcludesinternationalaviationandnavigation.•Industryincludesbothenergyandnon-energyuseoftheindustrysector,agriculture,forestryandfishing.•Non-energyusereferstofuelsusedasrawmaterials,andnotusedasfuelortransformedintoanotherfuel.Thiscomprisestypicallyrawmaterialsusedinthechemicalandpetrochemicalsector.•“IEAaverage”istheequivalentofaweightedaverageoftheIEAmembercountries,excludingLithuania.IEA.CCBY4.0.ANNEXES168ANNEXESANNEXC:GlossaryandlistofabbreviationsInthisreport,abbreviationsandacronymsaresubstitutedforanumberoftermsusedwithintheInternationalEnergyAgency.Whilethesetermsgenerallyhavebeenwrittenoutonfirstmention,thisglossaryprovidesaquickandcentralreferencefortheabbreviationsused.AcronymsandabbreviationsACalternatingcurrentCCGTcombined-cyclegasturbineCCUScarboncapture,utilisationandstorageCEEenergy-savingcertificate(France)certificatd’économiesd’énergieCMSDCommitteefortheManagementofSevereSupplyDisruptionofCrudeOilandPetroleumProductsDCdirectcurrentDESFAHellenicGasTransmissionSystemOperatorS.A.DSOdistributionsystemoperatorDSRdemandsideresponseEEDEnergyEfficiencyDirectiveEEOEnergyEfficiencyObligationEETenergyefficiencytitleEPCenergyperformancecertificateESDEffortSharingDecisionESREffortSharingRegulationETMEARSpecialDutyofGreenhouseGasEmissionsReductionETSEmissionsTradingSystemEUEuropeanUnionEUReuroEVelectricvehicleFECfinalenergyconsumptionFIPfeed-inpremiumFITfeed-intariffGDPgrossdomesticproductGHGgreenhousegasGSRIGeneralSecretariatforResearchandInnovationHEDNOHellenicElectricityDistributionNetworkOperatorS.Α.HELPEHellenicPetroleumHEnEXHellenicEnergyExchangeHHIHerfindahl-HirschmanIndexHHRMHellenicHydrocarbonsResourcesManagementS.A.IEA.CCBY4.0.ANNEXES169ANNEXESIGBInterconnectorGreece-BulgariaIPCEIImportantProjectofCommonEuropeanInterestIPTOIndependentPowerTransmissionOperatorS.A.LNGliquefiednaturalgasLPGliquefiedpetroleumgasLULUCFlanduse,land-usechangeandforestryMoEEMinistryofEnvironmentandEnergyNECPNationalEnergyandClimatePlanNEPNationalEmergencyPlanNNGTSNationalNaturalGasTransmissionSystemOECDOrganisationforEconomicCo-operationandDevelopmentPECprimaryenergyconsumptionPPCPublicPowerCorporationS.A.PSAPEInformationSystemfortheLicensingofRenewableEnergySourcesProjectsPVphotovoltaicsR&DresearchanddevelopmentRAERegulatoryAuthorityforEnergyRD&Dresearch,developmentanddemonstrationSAIDISystemAverageInterruptionDurationIndexSAIFISystemAverageInterruptionFrequencyIndexSMEsmallandmedium-sizedenterpriseSUMPsustainableurbanmobilityplanTAPTrans-AdriaticPipelineTCPtechnologycollaborationprogrammeTEStotalenergysupplyTFCtotalfinalconsumptionTFECtotalfinalenergyconsumptionTSOtransmissionsystemoperatorUNFCCCUnitedNationsFrameworkConventiononClimateChangeUSDUnitedStatesdollarVATvalue-addedtaxUnitsofmeasurebcmbillioncubicmetresb/dbarrelsperdayCO2-eqcarbondioxide-equivalentgCO2/kmgrammeofcarbondioxideperkilometreGJgigajouleGWgigawattIEA.CCBY4.0.ANNEXES170GWhgigawatthourkb/dthousandbarrelsperdaykgCO2-eqkilogrammecarbondioxideequivalentktCO2kilotonnecarbondioxideequivalentktoethousandtonnesofoilequivalentkVkilovoltkWhkilowatthourLlitremcmmillioncubicmetresMJmegajouleMtmilliontonnesMtCO2-eqmilliontonnesofcarbondioxideequivalentMtoemilliontonnesofoilequivalentMWmegawattMWhmegawatthourpkmpassenger-kilometretkmtonne-kilometreTWhterawatthourIEA.CCBY4.0.InternationalEnergyAgency(IEA).ThisworkreflectstheviewsoftheIEASecretariatbutdoesnotnecessarilyreflectthoseoftheIEA’sindividualMembercountriesorofanyparticularfunderorcollaborator.Theworkdoesnotconstituteprofessionaladviceonanyspecificissueorsituation.TheIEAmakesnorepresentationorwarranty,expressorimplied,inrespectofthework’scontents(includingitscompletenessoraccuracy)andshallnotberesponsibleforanyuseof,orrelianceon,thework.SubjecttotheIEA’sNoticeforCC-licencedContent,thisworkislicensedunderaCreativeCommonsAttribution4.0InternationalLicence.Thisdocumentandanymapincludedhereinarewithoutprejudicetothestatusoforsovereigntyoveranyterritory,tothedelimitationofinternationalfrontiersandboundariesandtothenameofanyterritory,cityorarea.Unlessotherwiseindicated,allmaterialpresentedinfiguresandtablesisderivedfromIEAdataandanalysis.WewishtoacknowledgethetraditionalcustodiansofthelandoftheACTRegionwherethein-depthreviewtookplace,theNgunnawalpeople,andpayrespecttotheirElders,bothpastandpresent.IEAPublicationsInternationalEnergyAgencyWebsite:www.iea.orgContactinformation:www.iea.org/contactTypesetinFrancebyIEA-April2023Coverdesign:IEAGreece2023EnergyPolicyReviewTheInternationalEnergyAgency(IEA)regularlyconductsin-depthpeerreviewsoftheenergypoliciesofitsmembercountries.Thisprocesssupportsenergypolicydevelopmentandencouragestheexchangeofinternationalbestpracticesandexperiencestohelpdrivesecureandaffordablecleanenergytransitions.Greeceaimstoreducetotalgreenhousegasemissionsby55%by2030andreachnetzeroemissionsby2050.Ithasmadenotableprogresstowardsmeetingthesetargets.Thisincludessignificantlyreducingitsrelianceonligniteandsettingabindingtargettoendlignite-firedpowergenerationby2028whileworkingtoensureajusttransitioninitsligniteminingregionsandreducingenergypoverty.Greecehasalsomadestrongprogressonrenewableenergy,whichcovered20%ofitstotalfinalenergyconsumptionin2021.FollowingRussia’sinvasionofUkraine,GreeceisreducingitsrelianceonRussianenergyimportsandensuringsecureaccesstoenergybydiversifyingitssupplyandincreasingdomesticenergyproduction.Despitethesenotablesuccesses,significantchallengesremain.FossilfuelsstillaccountformostofGreece’senergyuseandstrongereffortsareneededonenergyefficiency.Inthisreport,theIEAprovidesarangeofenergypolicyrecommendationstohelpGreecesmoothlymanageitstransitiontoasecure,efficientandflexiblecarbonneutralenergysystem.

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