«The Greek Policy on Renewable Energy Sources and Energy

«The Greek Policy on Renewable Energy Sources and Energy Efficiency»

Dr Georgios Ageridis

Business meeting in Berlin,Berlin, Germany, 17 November 2009

Dr Georgios AgeridisMechanical Engineer

Director of Energy Efficiency DivisionCentre for Renewable Energy Sources and Saving - C.R.E.S.

e-mail: [email protected]

Introduction (1/3)The Energy Policy of the E.U.

• The strategic energy objective of the E.U. is todecrease the Green House Gasses by 20% until2020, comparing to the emission levels of 1990.

• To achieve this goal, the E.U. proposes the jointachievement of three related objectives until 2020:


achievement of three related objectives until 2020:

– improvement of energy efficiency by 20%,– increasing of RES share to energy mix by 20%,

and– increasing biofuels contribution to transportation

fuel by 10%

Introduction (2/3)Main axes of Greek national energy policy

The main axes of the Greek national energy policyare summarized to the following:

– Security of energy supply (base load security)


– Diversification of energy sources

– Improvement of productivity and competitivenessthrough clean energy technology investments,securing regional development

– Environmental protection

Final energy consumption by sector


Europe 25 GreeceSource: «Panorama of Energy», Eurostat 2007

Introduction (3/3)Energy balance of Greece

Ενεργειακό τοπίο 2007

ΥΗΣ5%

Α.Π.Ε.4%

Εισαγωγές-Εξαγωγές7%


Λ ιγνίτης50%

Πετρέλαιο13%

Φυσικό αέριο21%

Λ ιγνίτης Πετρέλαιο Φυσικό αέριο ΥΗΣ Α.Π.Ε. Εισαγωγές-Εξαγωγές

Energy efficiency potentialin the EU and in Greece

sectorEnergy

consumption(Mtoe)2005

Energy consumption

(Mtoe)2020

(business as

Energy saving potential(Mtoe)2020

Energy saving

potential(Mtoe)

Energy saving potential(Mtoe)2020

It is estimated that by 2020 significant amount of energy can be saved inthe main final energy consumption sectors:

European Union Greece


2005 (business as usual)

2020 (Mtoe)2020

2020

domestic 280 338 91 27% 29%

tertiary(commercial

buildings)

157 211 83 30% 30%

transportation 332 405 105 26% 36%

industry(without ETS)

297 382 95 25% 15%

National legislation on Energy Efficiency

In the last five years the following enactments have beingissued:

– Law 3425/2005 on “use of biofuels in transportation”

– Law 3661/2008 on “energy efficiency in buildings”

– Law 3437/2009 on “cogeneration of heat and power”


– Law 3437/2009 on “cogeneration of heat and power”

– Common Ministerial Degree D6/B/14826 –17.07.2008 on “energy efficiency in the public sector”

– Law (under preparation) on “end users energyefficiency” including articles on Third Party Financingand Energy Services Companies operation

RES / Community framework - Directive 2001/77/EC"on the promotion of electricity produced from

renewable energy sources in the internal electricity market" (OJ L283/27.10.2001)

• Indicative target of 20.1% share of electricityproduced from RES to gross domestic electricityconsumption by 2010


consumption by 2010

• Compliance of Greece with this Directive by enteringinto force the Law 3468/2006 – enactment of:

• 20.1% by 2010, and• 29.0% by 2020

Εξέλιξη εγκατεστηµένης ισχύος ΑΠΕ

1322

1040

759700

800

900

1000

1100

1200

1300

1400Εγκατεστηµένη

ισχύς

[MW

]ΑΙΟΛΙΚΑ

µΥΗΣ

ΒΙΟΜΑΖΑ

ΦΒ

RES installed capacity development


592

483523

369351

278159

8271706969

0

100

200

300

400

500

600

700

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007* 2008*

Εγκατεστηµένη

ισχύς

N. 2244/1994 N. 2773/1999 N. 2941/2001 N. 3175/2003 N. 3468/2006

Present RES situation

• RES development in the last six years is 145%

compared to the one of the decade 1994 – 2003, with

accumulated installed capacity of 1300 MW by the

end of September 2009 (1112 MW of which is wind

energy ), based on operation licenses . There are


energy ), based on operation licenses . There are

additional installation licenses for 1000 MW and the

total target is for 1500 MW installed capacity by the

end of 2009, excluding big hydros, which are about

3000 MW.

Present RES situationnumber of production license MW

wind 520 7236

small hydros 293 736

photovoltaic 1259 329

biomass 20 98

geothermal 1 8

chp 33 432


• Information and awareness campaign is ready to be launched b ythe Ministry of PEKA granted by the National StrategicReference Framework.

solar thermal 0 0

total 2128 8839

• 11686 projects are being submitted to RAE for productionlicense issuing, of 73889 MW capacity in total.

Specific Land Planning Framework for RES promotion (under preparation) –

Basic targets• To fulfill National targets for Green House confrontation ( Green Bible

on Security Energy Supply)

• To promote an effective mechanism on RES installations landplanning– to achieve national and european policy targets

• To establish land planning policy by RES technology and loca tionspecific characteristics


specific characteristics

• To supply Guidelines to Local Authorities and Investors– for installing viable RES plants, integrated with respect t o the

natural and anthropogenic environment– to minimize disputes on land use issues

• To simplify and to shorten procedures on land planning and de cisionmaking, in accordance to land and environment criteria for n ew RESinstallations

• To create a stable legal framework for potential investors, taking intoaccount provision for the environment

RES / National support• Investment capital cost grant through national funds by 35-

55%– Law 3299/2004 and its amendment in article 37 of Law

3522/2006, specified by Ministerial Degrees published inthe issue Β’ 1292/25.7.2007 of the Government Gazette

• Investment capital cost grant through National and E.U. fun ds– National Strategic Reference Framework (N.S.R.F.)


• Billing rules of electricity produced by RES plants, accord ingto the Law 3468/2006– ensuring investments viability

• Tax deduction up to 20% of purchase and installation cost,and up to 700 euros, for RES and ES systems in the residentialsector

Generation of electricity from:Price of energy (€/MWh)

Interconnected system

Non-interconnected islands

(a) Wind energy 80.14 91.74

(b) Wind energy from off-shore wind farms97.14

(c) Hydraulic energy exploited in small-scale hydroelectric plants with an installed capacity up to fifteen (15) MWe

80.14 91.74


(d) Solar energy utilized in photovoltaic units with an installed capacity less than, or equal to one hundred (100) kWpeak and which will be installed in a lawfully owned or possessed property or in adjacent properties of the same owner or lawful possessor

(e) Solar energy exploited in photovoltaic units with an installed capacity over one hundred (100) kWpeak

457.14

407.14

507.14

457.14

Generation of electricity from:Price of energy (€/MWh)

Interconnected system

Non-interconnected islands

(f) Solar energy exploited in units employing a technology other than that of photovoltaics with an installed capacity up to five (5) MWe

(g) Solar energy exploited in units employing a technology other than that of photovoltaics with an installed capacity of over five (5) MWe

257.14

237.14

277.14

257.14


installed capacity of over five (5) MWe

(h) Geothermal energy, biomass, gases released from sanitary landfills and biological treatment plants and biogases

80.14 91.74

(i) Miscellaneous RES 80.14 91.74

(j) High-efficiency cogeneration of heat and power 80.14 91.74

General procedure framework

In order to achieve security and diversification of its energysupply, ensure environmental protection and sustainabledevelopment, and foster social cohesion, Greece promotesthe production of electricity using renewable energysources, establishing key priorities and binding policies.


The present investment framework calls for a strikingincrease in production from Wind, Solar, Geothermal andBiomass/Biofuels, which are expected to contributeincreasingly as a transport fuel.

RAE

(RAE forwards PEAE to the authority responsible for environmental licensing)

YPAN

Electricity Production License

Issue of Wind/PV farm’s connection terms to the System or Network – Offer

Application for granting Electricity Production Lic ense

(together with Preliminary Environmental Assessment and Evaluation – P.E.A.E.)


terms to the System or Network – Offer

Intervention or Concession approval

Contract for the connection to the system or the grid

Power Purchase Agreement (P.P.A.)

Operation license

Environmental terms approval

Installation License

Regional Authority or YPAN

New targets up to 2020According to the new Renewable Energy Directive,under preparation and agreed on 9 December 2008 inBrussels:

• A legally binding target of 20% share of RES to the final energ yconsumption up to 2020 is imposed, including a share of 10% ofbiofuels in the transportation sector.

• A holistic exploitation of RES for first time is taken intoconsideration for any energy use (power production, heating and


• A holistic exploitation of RES for first time is taken intoconsideration for any energy use (power production, heating andcooling, biofuels).

• The reference values for national targets is based on GDP of t heyear 2005. For Greece this target is specified to 20%.

• A trading scheme of guarantee of origin is proposed inconjunction with potential national support systems (as a f eed-intariff one) for ensuring the RES plants viability.Greece is positive to this prospect.

Conclusions – RES Prospects (1/2)• Total review of the licensing procedure and extension of

selling agreement period through the Law 3468/2006,– More revisions under consideration

• New legal framework for big photovoltaic plants developmen tand under preparation legal framework for small photovolta icplants in the domestic sector

• The Specific Land Planning Framework for RES is in the finalstage of preparation – Proposals have been submitted by theMinistry of Development to the Ministry for the Environment,


stage of preparation – Proposals have been submitted by theMinistry of Development to the Ministry for the Environment,Physical Planning & Public Works

• Comprehensive understanding of administrative andlegislative measures launched during the last three years

• Establishment of a consistent investment environment– development and taxation policies

• National grants programme

Conclusions – RES Prospects (2/2)• The feed-in tariff scheme is still in force

• There is investment interest for hybrid plants in islands(especially in Crete)

• Small and societal acceptable specific RES fee to consumers– increase of conventional energy production cost

• increase of coal imports and increase of oil and naturalgas price


gas price• obligation of emission credits purchase

• New RES Directive for any energy use under preparation(legally binding targets to the final energy consumption up to2020, E.U. target of 20%, Greek target of 18%, feed-in tariffsystem, trading scheme of guarantee of origin)

• Concerted effort to achieve the new 18% target with the activ einvestors participation

www.ypan.gr

www.minenv.gr

www.investingreece.gov.gr

www.cres.gr

www.rae.gr

www.desmie.gr

Ministry of Development

Ministry of Environment, Planning and Public Works

Invest in Greece Agency

Centre for Renewable Energy Sources and Saving

Regulatory Authority for Energy

Hellenic Transmission System Operator S.A.

Important e-mail addresses


www.desmie.gr

www.dei.gr

www.helapco.gr

www.eletaen.gr

www.hellasres.gr

www.hachp.gr

www.ebhe.gr

Public Power Corporation S.A.

Hellenic Association of Photovoltaic Companies

Hellenic Wind Energy Association

Greek Association of RES Electricity Producers

Hellenic Association for the Cogeneration of Heat and Power

Greek Solar Industry Association

Thank you

for your attention


for your attention

Documents

«The Greek Policy on Renewable Energy Sources and Energy