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Current Situation and Prospects for Areas in Energy Transition in Greece

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Current Situation and Prospects for Areas in Energy Transition in Greece CURRENT SITUATION AND PROSPECTS FOR AREAS IN ENERGY TRANSITION IN GREECE Athens, July 2020 1 Contents Preface ............................................................................................................................... 10 Executive Summary ............................................................................................................ 11 1. Introduction - Raison d’ Etre .......................................................................................... 14 1.1. Why Energy Transition is Promoted Today...................................................................... 14 1.2. EU targets for 2030, 2050, European Commission New Green Deal ................................... 21 1.3. National Objectives: NECP, Long-Term Energy Strategy 2050 .......................................... 31 2. Capturing the Existing Situation in the Energy Transition Areas ................................... 33 2.1. Geographical - Economic Description of Areas in Transition (Western Macedonia, Megalopolis, North Aegean, South Aegean, Crete) ................................................................................... 43 2.2. Characteristics of Use of Fossil Fuels and Electricity at Local Level in the Energy Transition Areas ....................................................................................................................................... 54 2.2.1. About Lignite ........................................................................................................ 54 2.2.2. Lignite Mining Technologies ................................................................................... 54 2.2.3. Sequence Analysis and Flow of Lignite Mineral Materials ........................................... 55 2.2.4. Lignite reserves in Western Macedonia and Megalopolis ............................................ 55 2.2.5. Lignite mining in Western Macedonia and Megalopolis ............................................... 56 2.2.6. Lignite mines in Western Macedonia and Megalopolis ................................................ 56 2.2.7. Operation of Lignite Thermal Power Plants ............................................................... 59 2.2.8. Lignite Thermal Power Plants in Western Macedonia and Megalopolis - Power Station Features - Supply Chain of Mines and Lignite Stations ........................................................ 60 2.2.9. Water Consumption in Lignite Power Plants - Variable Energy Cost............................. 61 2.2.10. Variable Cost of Lignite Thermal Power Plants in Greece .......................................... 62 2.3. District Heating Systems (DHS) in Western Macedonia and the Peloponnese: Current Situation - Problems - Prospects ....................................................................................................... 64 2.3.1. General Issues Concerning DHS ............................................................................. 64 2.3.2. District Heating in the Region of Western Macedonia ................................................ 65 2.3.3. District Heating in the Peloponnese Region .............................................................. 70 2.3.4. Future Coverage of Thermal Needs in Western Macedonia and Megalopolis ................. 71 2.4. Environmental Impacts from the Operation of Lignite Mines - Lignite Thermal Power Plants (LTPP) - District Heating Units ............................................................................................. 73 2.4.1. Environmental Impact on the Environment from the Use of Lignite Mines and Lignite Steam Power Plants (LTPPs) ............................................................................................ 73 2.4.2. Annual Emissions of Greenhouse Gas Pollutants from the Operation of Lignite Mines and PPC’s Lignite Power Stations ............................................................................................ 75 2.4.3. Environmental Rehabilitation Actions in PPC Lignite Centres ...................................... 78 2.4.4. Annual Emissions of Greenhouse Gas Pollutants from the Operation of District Heating Systems in the Two Lignite Areas..................................................................................... 79 2.5. Energy Infrastructure, Electrical Interconnections and Pipelines / Natural Gas Networks ..... 81 2.6. Energy Potential of RES in the Energy Transition Areas .................................................... 87 2.6.1. Solar Energy Potential ........................................................................................... 87 2.6.2. Wind Energy Potential ........................................................................................... 89 2.6.3. Existing RES Infrastructure .................................................................................... 90 2.6.4. RES Projects Under Licensing in the Energy Transition Areas ..................................... 92 2 2.6.5. The Future of RES Projects in the Lignite Areas of Arcadia, Florina, Ptolemaida and Kozani .................................................................................................................................... 97 2.7. A Survey of Energy Projects / Actions Under Development ............................................. 100 3. Economic Activity - New Business Opportunities.......................................................... 108 3.1. Economic Activity at Local Level and Social Implications ................................................ 108 3.1.1. Economic Structure ............................................................................................. 108 3.1.2. Sectoral Structure............................................................................................... 123 3.2. Opportunities for the Development of New Business Activities ........................................ 132 3.3. World Bank study ...................................................................................................... 133 4. The NECP and the Evolution of the Energy System in the Energy Transition Regions . 135 4.1. Prospects of Energy Development of the Energy Transition Areas ................................... 135 4.2. Development of Conventional Electricity and Electricity Generation from RES ................... 138 4.3. Evolution and Characteristics of Energy Consumption and Use of Fossil Fuels ................... 141 4.4. Energy Transition Schedule ....................................................................................... 142 4.5. Evolution of Energy Infrastructure ............................................................................... 143 5. International Experience from European Union Regions in Energy Transition ............ 145 5.1. The Importance of Coal in the Energy System of the European Union from its Establishment to "Energy Transition" .......................................................................................................... 145 5.2. The Importance of Coal in the European Energy System's Current Energy Transition System ..................................................................................................................................... 146 5.3. European Experience from Regions in Energy Transition ................................................ 147 5.3.1. Bulgaria: Energy Transition Policies ...................................................................... 148 5.3.2. Germany: Energy Transition Policies ..................................................................... 149 5.3.3. Poland: Energy Transition Policies ........................................................................ 151 5.3.4. Slovenia: Energy Transition Policies ...................................................................... 152 5.3.5. Czech Republic: Energy Transition Policies ............................................................. 153 5.4. World Bank Study Overview and Evaluation / utilization of its Proposals .......................... 154 6. Key Conclusions ............................................................................................................ 155 6.1. West Macedonia ............................................................................................................ 155 6.2. Megalopolis .................................................................................................................. 156 6.3. Island Systems ............................................................................................................. 156 BIBLIOGRAPHY ................................................................................................................. 158 ANNEXES .......................................................................................................................... 161 3 List of Diagrams Diagram 1 - European Emission Pollution Prices (May 2018 - May 2020) Diagram 2 - Number of Companies in the Energy Sector of Greece, 2011-2017 Diagram 3 - Market Share (%) of the Largest Electricity Producer in Selected Countries of Europe, 2009-2018 Diagram 4 - Household Electricity Prices in Selected European Countries, 2015-2019 Diagram 5 – Tertiary sector Electricity Prices in Selected European Countries, 2015-2019 Diagram 6 - Evolution of Overdue Energy Bills in European Countries in Adjustment Schedule, 2008, 2012, 2015, 2018 Diagram 7 - Evolution of Population Composition of Western Macedonia Region, 2008-2019 Diagram 8 - Evolution of Population Composition of the Peloponnese Region, 2008-2019 Diagram 9 - Evolution
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