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National Energy and Climate Plan

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NATIONAL ENERGY AND CLIMATE PLAN

ATHENS, JANUARY 2019

Contents

1.1.1 Political, economic, environmental and social context of the plan ...................................... 6 1.1.2 Overall strategy in relation to the five dimensions of the Energy Union.............................. 6 1.1.3 Summary table laying down the key objectives, policies and measures of the plan.......... 10

1.2.1 National and Union energy system and policy framework of the national plan ................ 15 1.2.2 Existing energy and climate policies and measures in respect of the five dimensions of the Energy Union............................................................................................................. 15

1.2.3 Energy design challenges in five dimensions ...................................................................... 83 1.2.4 Key issues of cross-border interest ..................................................................................... 91 1.2.5 Administrative structure for the implementation of national energy and climate policies................................................................................................................................. 91

1.3.1 Participation of the national parliament............................................................................. 94 1.3.2 Involving local and regional authorities .............................................................................. 94 1.3.3 Consultation of stakeholders, including social partners, and involvement of civil society and the general public ............................................................................................ 94

1.3.4 Consultation with other Member States............................................................................. 96

NATIONAL OBJECTIVES AND EXPECTATIONS ...................................................................... 99
Decarbonisation dimension..................................................................................................... 102 Energy efficiency dimension.................................................................................................... 108 Energy security dimension ...................................................................................................... 110 Dimension of the internal energy market ............................................................................... 113 Research, innovation and competitiveness dimension........................................................... 117
Chapter 2
2.1 2.2 2.3 2.4 2.5

3.1. Decarbonisation dimension..................................................................................................... 121
3.1.1 Greenhouse gas emissions and removals ......................................................................... 121 3.1.2 Renewable energy............................................................................................................. 128

3.2.2 Long-term strategy to renovate the national stock of residential and non-residential buildings, both public and private..................................................................................... 147

3.2.3 Policies and measures to promote energy services in the public sector .......................... 148 3.2.4 Other planned policies, measures and programmes to achieve the indicative national energy efficiency target for 2030........................................................................ 149

3.2.5 Policies and measures to promote the role of local energy communities........................ 151 3.2.6 Measures to exploit the energy efficiency potential of gas and electricity infrastructure..................................................................................................................... 151

3.2.7 Regional cooperation in this area, where appropriate ..................................................... 152 3.2.8 Financing measures including support and use of EU funds in this area at national level ................................................................................................................................... 152

3.2.9 Summary of policy measures ............................................................................................ 153

3.3.1 Policies and measures to achieve the relevant objectives................................................ 162 3.3.2 Regional cooperation in this area...................................................................................... 166 3.3.3 Financing of measures in this area at national level, including with EU support and the use of EU funds ........................................................................................................... 166

3.3.4 Summary of policy measures ............................................................................................ 166

3.4.1 Electricity infrastructure.................................................................................................... 171 3.4.2 Energy transmission infrastructures ................................................................................. 172 3.4.3 Market consolidation ........................................................................................................ 174 3.4.4 Energy poverty .................................................................................................................. 176 3.4.5 Summary of policy measures ............................................................................................ 177

3.5.1 Policies and measures to achieve the relevant objectives................................................ 184 3.5.2 Cooperation with other Member States in this area ........................................................ 187 3.5.3 Financing of measures in this area at national level, inter alia with EU support and the use of EU funds ........................................................................................................... 188

3.5.4 Summary of policy measures ............................................................................................ 188
CHAPTER 4 EXISTING SITUATION AND PROVISIONS BASED ON EXISTING POLICIES AND EXISTING
MEASURES......................................................................................................................... 191

4.1 4.2
Devising a scenario of existing policies and measures............................................................ 191 Estimated development of the main external factors affecting the energy system and the greenhouse gas emissions................................................................................................. 192

4.2.1 Greenhouse Gas Emissions and Removals........................................................................ 192 4.2.2 Sectoral changes expected to affect the energy system and the greenhouse gas emissions........................................................................................................................... 192

4.2.3 Global energy trends, international fossil fuel prices, EU ETS carbon price ..................... 194 4.2.4 Technology cost developments......................................................................................... 195

4.3.1 Greenhouse Gas Emissions and Removals........................................................................ 196 4.3.2 Renewable energy............................................................................................................. 201

4.4.1 Current primary and final consumption of energy in the economy and by sector........... 212 4.4.2 Current capacity for high-efficiency cogeneration and efficient district heating and cooling ............................................................................................................................... 218

4.4.3 Forecasts taking into account existing policies, measures for the primary and final consumption of energy for each sector ............................................................................ 219

4.4.4 Cost-optimal levels of minimum energy performance requirements resulting from national calculations.......................................................................................................... 224

4.5.1 Current energy mix, domestic energy sources, dependence from imports ..................... 231 4.5.2 Forecasts regarding the developments in respect of existing policies and measures...... 235

4.6.1 Electricity interconnectivity............................................................................................... 236 4.6.2 Energy transmission infrastructures ................................................................................. 237 4.6.3 Electricity and gas markets, energy prices ........................................................................ 239

IMPACT ASSESSMENT OF PLANNED POLICIES AND MEASURES........................................ 249
Impact of planned policies and measures............................................................................... 249
Chapter 5
5.1
5.1.1 Forecasts for the development of the energy system and the emissions and absorptions of Greenhouse gases..................................................................................... 249

5.1.2 Assessment of the interaction and the impact of energy-efficiency/energy-saving policies............................................................................................................................... 294

5.1.3 Assessment of interactions between policies and measures and planned policies and measures .................................................................................................................... 296

5.2 5.3
Analysis of impact of key national planning policies............................................................... 299 Overview of investment needs................................................................................................ 303
5.3.1 Existing investment flows and planned investment assumptions regarding planned policies and measures ....................................................................................................... 303

5.3.2 Risk factors and challenges ............................................................................................... 307

Chapter 1 PLAN OVERVIEW AND DRAFTING PROCEDURE

1.1 Executive summary

  • 1.1.1
  • Political, economic, environmental and social context of the plan

The set of interventions towards implementing reforms in the energy sector for the creation of competitive energy markets is crucial for ensuring long-term economic prospects, also contributing towards a low-carbon economy.

The increased penetration of renewable energy sources (RES) and the improvement of energy efficiency through a broader policy approach for reducing greenhouse gas emissions, also taking into account such key parameters as energy security and achieving lower costs across the energy sector, are a key objective for Greece.

  • 1.1.2
  • Overall strategy in relation to the five dimensions of the Energy Union

The primary objective of the Greek energy policy is to ensure the viable and sustainable development of the energy sector from production to end use, also protecting the environment and making a contribution towards addressing climate change. Greece takes an active part in the global effort made to reduce greenhouse gas emissions, most of which is generated by the energy sector.

An additional key objective is to preserve and manage energy resources in a way that ensures the smooth, uninterrupted and reliable coverage of domestic energy needs, as well as access for all consumers (people, businesses and public sector bodies) to affordable and safe energy. The attainment of that objective relates to securing energy resources, by diversifying energy sources and flows, as well as by using domestic energy sources with a view to reducing the energy dependency of Greece, ensuring supply in the domestic market and protecting consumers in case of supply disruption and emergency.

Greece’s energy sector is being restructured, with a view to developing and operating competitive and

economically viable energy markets, which are supposed to function so as to offer energy products and services to consumers at competitive and transparent prices. Moreover, in a European and global decarbonisation environment, the shift to a low-carbon-intensity energy system will strengthen the competitiveness of the Greek economy, while at the same time allowing new energy technologies to enter the energy market competitively, providing opportunities for innovative investments and activities. This shift aims to transform the energy system, also ensuring sustainable results for the environment and the Greek society.

6

In addition to that, strengthening Greece’s regional role as an energy hub is an additional tool for

attaining its aims both in terms of energy and development. The restructuring and shift of the energy sector, in the context of the commitments and targets that are based on the Paris Agreement, are also inseparably linked to the global Sustainable Development Goals (SDGs).

These sustainable development goals are associated with the necessary shift to new production and consumption standards, the need for sustainable cities, the elimination of poverty, the establishment of flexible infrastructure and the promotion of sustainable industrialisation and innovation. The above aims are the components of a sustainable development model which aims to ensure, in addition to fiscal stability, the restructuring of production, the rational use of resources and, primarily, non-discriminate and unhindered access to basic goods and services for all.

In recent decades, the Greek economy has been based primarily on the services sector, which represents a significant part of the Greek gross domestic product (GDP). Industry represents less than 15 %, and the share of primary agricultural production in the GDP is equally low despite employing 14 % of Greece’s

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