Greece

Current Situation
Greece has many small islands and isolated mountainous areas with a high solar and wind energy potential. The economic activities in these islands are mainly oriented towards tourism. Small RES generation plants are ideal for these cases and it is likely that a strong development of renewable energy use will take place in these regions first, especially if the concept of local ecotourism is promoted in parallel.

The renewable energy share of the gross inland primary energy production in Greece was about 11% for the year 2006; the renewable part of the net production was 12% according to Eurostat (Eurostat 2008). At the same time the renewable part of the annual consumption was 11.8%. This part should rise to 20.1% in 2010, according to the ambitious tentative targets of the Greek government. The main renewable sources are hydropower, wind energy, solar thermal energy and biomass (in a smaller amount). The installed surface of solar thermal collectors per capita is remarkably high in Greece (281 square meters). Photovoltaic may play a more important role in the future mainly in remote sunny areas where regular maintenance of generators would be more cost intensive and difficult. In the next decade, a massive offshore wind power development is expected as well.

Greece, because of the long period of sunshine during the year, could gain significant benefits by reclaiming solar energy. That has not happened so far as the infrastructure does not exist. Also any moves that are made in this direction are either too hasty (desire for profits from investors in a short period of time) or not bold enough. Therefore, the main source of producing electricity from renewable sources is hydroelectric and wind energy.

The table below shows the most recent data for the electricity of Greece (in GWh) where you can find figures about renewables as well. The figure which follows depicts the contribution of each renewable to the total installed capacity (note: the contribution of photovoltaic systems is 0,1%). Finally, there is a map of the country with all the located facilities that reclaim renewable sources (wind parks, hydroelectric plants and photovoltaic parks). All of them are in charge of PPC Renewables S.A. (Public Power Corporation - Renewables S.A.).

Perspectives
During summer of 2008 the National Energy Strategy Council (NESC) of the Ministry of Development suggested a report with the name “Measures and Means for a viable and competitive Energy Policy”. By this report, NESC tries to make some forecasts about the energy demands of the country and plan a general strategy in order to fulfil the expected tasks and targets. In our report we do not want to reproduce the existing report but to underline the main subjects and especially those that have to do with RES and Wind Energy.

The process of Long-term Energy Planning assesses the Country’s energy needs, takes account of the obligations that arise from international treaties and conventions, and establishes the main axes, which in turn establish the goals that need to be implemented. The main axes around which a National Energy Strategy revolves are:
Security of energy supply with differentiation of sources while strengthening the geostrategic role of the Country in the wider area;
Saving and rational use of energy;
Environmental protection and sustainable development also in the context of international obligations;
Contribution of the Energy Sector to the Productivity and Competitiveness of the National Economy, to Healthy Competition and to Balanced Regional Development.

Under the European Energy Policy, some of the above general goals of the National Energy Strategy have already been converted to specific numeric targets that are binding upon the Country. (Reduction by 2020 of greenhouse gas emissions by 4% as compared to 2005 for those categories outside the scope of the ETS, participation of RES in the end use of energy by 18% by 2020, and improvement of the energy efficiency by 20%).

It should be underlined that the result of the above National Energy Planning procedure in the context of a free market where the responsibility for taking final decisions lies with investors cannot be as decisive as were the traditional development plans of public corporations such as the Public Power Corporation in Greece in times of monopoly. In today’s regime in the electricity and natural gas market, investors are called upon to make final decisions as to where and when any given installations shall be implemented, taking the respective risks and knowing that in order to create competition supply must exceed anticipated demand. However, in order to always ensure adequacy on the one hand and a rational relationship between supply and demand on the other, National Planning must establish a general framework in which the energy market will develop giving to public corporations and individuals the right signals and messages.

Based on the demand estimate of the energy saving scenario and considering that the minimum reserve levels required for the stability of the interconnected system must be approximately 10%, the new required power after the anticipated withdrawal of PPC units will for the 2010-2020 period reach approximately 6,300 MW of new conventional power generation. Table 8 below shows the forecast of demand evolution on the interconnected system both for the business as usual scenario and the energy saving scenario.

As is known, the Country’s power generation needs to this date have been provided by the use of three fuels namely oil, natural gas and domestic lignite. The maintenance of oil as a source for power generation, with the exception of non-interconnected islands, is not a suitable option due to the enormous costs of power generation using oil units and the relatively high quantities of pollutants that are generated by its combustion that further increase the respective costs. On the contrary, any amount of energy that may be generated in the same period by hydroelectric units and other RES is highly desirable. Table 9 below lists the most optimistic generation forecast from RES. The prospects for implementation of this forecast are considered as being reasonably positive.

It should be noted that between 2010 and 2015 there is significant need to meet the demand in electricity due to the withdrawal of many obsolete PPC units while the penetration of RES is anticipated to develop with moderate rates. The latter estimate takes into account the nature of the Greek generation potential, the need to implement additional land and underwater interconnections and the difficulty with overcoming bureaucratic procedures and local reactions. Faster rates are anticipated for the 2015-2020 period, during which it will be more possible to attain the goals of energy saving and increased RES penetration.

Meeting increased demand through additional lignite production is not an opportune option to due to the decrease of available reserves and the constantly rising costs of extraction and CO2 emission rights. Combined cycle natural gas units are anticipated to play a decisive role in addressing the power shortage problem in the immediate future through the next five years. However, there are three factors that dictate keeping the level of the use of such fuel for power generation purposes to rational levels. First of all, despite the significant improvement of the prospects of accessibility of such sources (due to international interconnections), gas availability in larger quantities does not seem to be unlimited. Second, international estimates agree that it will be difficult to maintain competitive natural gas supply prices in the long run, and that power generation cannot rely on the use of expensive liquefied natural gas. Third, in conjunction with the second factor, the penetration of RES being sought and the privileged introduction of such sources among the power generation units selected daily by the HTSO, will necessarily displace from the system more expensive units on days and at times when there is adequacy.

On the above grounds and for the purpose of meeting short-term needs, decreasing pollutants emitted from the use of lignite, and keeping power generation competitive, it is necessary to introduce comparatively inexpensive and abundant mineral coal in the energy balance. At this point it should be stressed that power generation from coal even at currently high prices and a cost of €40 per ton of emissions, remains cheaper by 15% form any other fuel for base units.

In Greece, is obvious the disposal growth development of renewable energies which is due to a number of reasons:
First, the sensitisation of the population in general and of the local authorities in particular as far as pollution, environment protection and the impact of RES use on sustainable local development is concerned. This has progressively grown up mainly during the last 15 years and is still increasing.
Second, political will. This has been expressed at various levels. At EU level by the Commission and the European Summits. At the Greek Government level through voting laws and regulations permitting the production of energy by both the private and the social sector of the economy. It has also been expressed by voting laws about organisation and powers of the local authorities. At the local authority level through creation of local development agencies and consortiums where different institutions collaborate in order to promote RES plants projects.
Third, economic factors. Here, on one hand we have the incentives of the Regional Development Law, the existence of EU funds and the willingness of banks to co-finance the project and on the other hand techno-economic factors of the project itself. By techno-economic factors, we mean the cost of the electrical energy produced and the price it can be sold.
Fourth, geographic and socio-economic factors. Greece has many small islands and isolated mountainous areas with much sunlight and wind. The economic activities in these islands are mainly oriented towards tourism. Small RES generation plants are ideal for these cases.

Key Players
The electric power industry in Greece is dominated by the state owned electric utility, the Public Power Corporation (PPC). The PPC currently monopolises electricity transmission and distribution. Although the legal framework (L 2244/94) has been modified to encourage private power production, the PPC still generates 98% of all electricity. With huge investments in lignite mining, the company remains vertically integrated to a great degree.

Greece is an exceptionally difficult region for electric power development, with its rugged topography and numerous islands. The mainland transmission system consists of 66, 150 and 400 kV networks. The total length of EGV lines at 66 kV and above, including isolated island transmission systems, is 10,200 km. The PPC has an on-going programme for connecting some of the closer islands directly to its mainland grid.

The Centre for Renewable Energy Sources (CRES) is the state institution that is responsible for the promotion of Renewable Energy Sources and Energy Efficiency in Greece. To date, the PPC has been almost the exclusive source of renewable electricity in Greece. It owns all the large hydro power stations and 97% of the small hydro capacity, 72% of photovoltaic capacity. Changes in support measures for renewables are likely to increase the role of non-PPC generators in renewable energy supply. The renewable energy sources listed in order of importance are wind energy, small hydro- power plants, biomass and possibly photovoltaic installations.

Greek and foreign business groups, operating on Renewable Energy (RES) is already implementing more than 55 investment projects in the field of wind energy, worth more than 550 million euros. If we add to these licenses assert these groups, to build new wind farms, all the investment under way or those that expected to become the coming years up to 2010, exceeds 800 million euros.

Among the foreigners, who have already invested in Greece, is the Spanish companies Iberdrola, Gamesa, Cesa (recently acquired by also Spanish Acciona), the French EDF, the Japanese Eurus and German Enercon.

To date has been approved a funding of 180 new projects in RES by private companies and the Greek state. It is even predicted that within the next few years the total investment in renewable sources will exceed 1 billion euros. It is currently underway to examine additional 150 new projects, with total budget of 360 million euros.

First place in Greece in installed capacity of wind farms, is hold by the company group Rokas (controlled at 49.9% from Iberdrola) with 12 wind farms, power 188,5 MW. In second place is the group Copelouzos, which has, (along with a group named Samaras) installed capacity of 70 MW wind farms and waits for permission for 100 MW more. The third position is hold by TEPNA, with power of 40 MW in wind farms.

Job demand
It is clear that Greece is well far behind other European countries in the use of renewable energy issues, although due to the specific climatic conditions in the country there could have been a great development and use of RES. For example in Greece in 2008 settled a total of only 210.9 MW from renewable sources, bringing the total force in 1198,33 MW, when Spain established the same year, 1000 MW from a single source, photovoltaic.

This fact has huge implications for employment in the field of RES. Please note that the professions that have to do with the RES, are included both in the secondary and in the tertiary sectors of the economy. In the secondary sector occupations have to do with the production of electricity from renewables while tertiary sector’s occupations have mainly to do with teaching and the dissemination of renewables.

Based on the latest official figures (2001) in electricity production (not only by RES) in Greece employed 38,547 people which represents 0.8% of the total economically active population. The proportion employed in the sector of renewable sources does not exceed 10% of this number. If the effort of spreading RES mainly in the greek countryside and the Aegean islands meets with success, it is estimated that there will be a significant increase in job supply and demand in the field of RES. Specific studies show that for Greece, for a typical wind farm of 10 MW are required:
120 manmonths for the construction phase. 30 - 40% of this employment comes from the local workforce.
At least 3-5 permanent employees in the operation phase, most of whom are locals.

The corresponding balance sheet items of employment in the construction and operation of small hydroelectric projects in our country are also very important. Specifically, in the construction phase of a typical small hydro power 5 MW about 50 people for 11 / 2 year are needed, For the maintenance/operational phase are needed 6-10 more employees. The contribution of RES projects in employment, both at local and national level is really impressive if you include the prospects of domestic manufacture / assembly of major parts of the electromechanical equipment for projects such as the pillars of wind turbines, transformers and others.

These perspectives, which are already being implemented in Greece may help the associated with the launch RES employment, particularly local, to dramatically increase: according to the valid and fully documented balance sheet data of the European Commission ( "Wind Energy: The Facts" , 1999), each 10 MW wind power installed today create 150-190 new jobs, mainly in the industrial production of electromechanical equipment required.

Greece

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