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GREECE 2006 Review INTERNATIONAL ENERGY AGENCY INTERNATIONAL ENERGY AGENCY Energy Policies of IEA Countries Warning: Please note that this PDF is subject to specific restrictions that limit its use and distribution. The terms and conditions are available online at www.iea.org/w/bookshop/pricing.html GREECE 2006 Review INTERNATIONAL ENERGY AGENCY The International Energy Agency (IEA) is an autonomous body which was established in November 1974 within the framework of the Organisation for Economic Co-operation and Development (OECD) to implement an international energy programme. It carries out a comprehensive programme of energy co-operation among twenty-six of the OECD’s thirty member countries. The basic aims of the IEA are: • to maintain and improve systems for coping with oil supply disruptions; • to promote rational energy policies in a global context through co-operative relations with non-member countries, industry and international organisations; • to operate a permanent information system on the international oil market; • to improve the world’s energy supply and demand structure by developing alternative energy sources and increasing the efficiency of energy use; • to assist in the integration of environmental and energy policies. The IEA member countries are: Australia, Austria, Belgium, Canada, the Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Japan, the Republic of Korea, Luxembourg, the Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, Turkey, the United Kingdom, the United States. The European Commission takes part in the work of the IEA. ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT The OECD is a unique forum where the governments of thirty democracies work together to address the economic, social and environmental challenges of globalisation. The OECD is also at the forefront of efforts to understand and to help governments respond to new developments and concerns, such as corporate governance, the information economy and the challenges of an ageing population. The Organisation provides a setting where governments can compare policy experiences, seek answers to common problems, identify good practice and work to co-ordinate domestic and international policies. The OECD member countries are: Australia, Austria, Belgium, Canada, the Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, the Slovak Republic, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States. The European Commission takes part in the work of the OECD. © OECD/IEA, 2006 No reproduction, copy, transmission or translation of this publication may be made without written permission. Applications should be sent to: International Energy Agency (IEA), Head of Publications Service, 9 rue de la Fédération, 75739 Paris Cedex 15, France. TABLE OF CONTENTS 1 ORGANISATION OF THE REVIEW .......................... 7 2 SUMMARY OF CONCLUSIONS AND RECOMMENDATIONS .... 9 3 GENERAL ENERGY POLICY ................................. 21 4 ENERGY AND THE ENVIRONMENT ......................... 41 5 ENERGY EFFICIENCY ...................................... 55 6 OIL...................................................... 69 7 NATURAL GAS ............................................ 79 8 RENEWABLE ENERGY ..................................... 95 9 ELECTRICITY AND LIGNITE ................................. 113 10 ENERGY TECHNOLOGY AND RESEARCH & DEVELOPMENT . 143 A ANNEX: ENERGY BALANCES AND KEY STATISTICAL DATA ..... 153 B ANNEX: INTERNATIONAL ENERGY AGENCY “SHARED GOALS” . 157 C ANNEX: GLOSSARY AND LIST OF ABBREVIATIONS ............ 159 3 © OECD/IEA, 2006 Tables and Figures TABLES 1. Energy Taxes in Greece, 2004 ....................................... 33 2. Greenhouse Gas Emissions by Sector, 1990 to 2002............... 43 3. Greenhouse Gas Emissions by Gas (without LUCF), 1990 to 2002. 43 4. Estimated Technological and Economic GHG Emissions Reduction Potential of the Measures Included in the Second National Programme for Climate Change. ................................................. 47 5. Projections of GHG Emissions in the Business-as-Usual Scenario and with Additional Measures Included in the Second National Programme for Climate Change .................................... 48 6. Passenger Transport in Greece and Predicted Growth, 1990 to 2020 . 62 7. Freight Transport in Greece and Predicted Growth, 1990 to 2020 .... 62 8. Growth in Greek Road Vehicle Stock by Type, 1971 to 2003....... 62 9. Refineries in Greece.................................................. 73 10. Greek Gas Consumption by Sector, 1990 to 2003 ................. 80 11. Greek Gas Import Capacity by Import Point ........................ 82 12. Forecast for Existing EPA Meter Connections by 2010 ............. 84 13. Timetable for the Liberalisation of the Greek Gas Market.......... 89 14. Renewable Electricity Capacity and Production, 2004 ............. 98 15. Total Wind Deployment in Greece by Region and Capacity, 2006 ... 98 16. CRES Modelling of Renewables Capacity by Technology and Scenario, 2006–2010 ........................................... 102 17. Government Target for Renewables in 2010 by Technology........ 103 18. Achieved and Technical Potential for RES-E in Greece, 2004 and 2020 ................................................................. 103 19. Changes in the Feed-in Tariff for Renewable Electricity in Greece .... 106 20. Peak and Annual Electricity Demand Forecast for the Interconnected System, 2006 to 2011 ............................................... 115 21. Greek Interconnected Electricity Generation, 2005................. 120 22. PPC Non-interconnected Installed Capacity by Source, 2004.......... 120 23. Generation Licences Awarded by March 2006 ..................... 120 24. International Interconnector Capacity of Greece, 2004 ............ 125 25. Greek Generation Reserve Margin Development, 2000 to 2005 .... 132 26. Greek CHP Plants by Owner, 2005.................................. 134 27. Production and Reserves of Major Lignite Fields, 2005 ............ 135 FIGURES 1. Map of Greece ....................................................... 20 2. Total Primary Energy Supply, 1973 to 2030 ........................ 23 3. Energy Production by Source, 1973 to 2030 ....................... 23 4 © OECD/IEA, 2006 4. Total Final Consumption by Source, 1973 to 2030................. 24 5. Fuel Prices, 2004 .................................................... 32 6. CO2 Emissions by Fuel, 1973 to 2003 .............................. 42 7. CO 2 Emissions by Sector, 1973 to 2003 ............................ 44 8. Energy-related CO2 Emissions per GDP in Greece and in Other Selected IEA Countries, 1973 to 2003 ............... 44 9. Total Final Consumption by Sector and by Source, 1973 to 2030..... 56 10. Total Final Consumption by Sector, 1973 to 2030 ................. 57 11. Energy Intensity in Greece and in Other Selected IEA Countries, 1973 to 2010........................................................ 57 12. Final Consumption of Oil by Sector, 1973 to 2030................. 70 13. OECD Unleaded Gasoline Prices and Taxes, Second Quarter 2005 75 14. OECD Automotive Diesel Prices and Taxes, Second Quarter 2005. 76 15. Final Consumption of Natural Gas by Sector, 1980 to 2030....... 79 16. Corporate Structure after DEPA’s Legal Unbundling ............... 83 17. Gas Network in Greece, 2005 ....................................... 86 18. Gas Prices in IEA Countries, 2004 .................................. 87 19. Renewable Energy as a Percentage of Total Primary Energy Supply in Greece, 1973 to 2004 ............................................ 96 20. Renewable Energy as a Percentage of Total Primary Energy Supply in IEA Countries, 2004 .............................................. 97 21. Annual Growth of Wind Generating Capacity in Greece, 1995 to 2005.............................................................. 99 22. RES Licensing Procedures and Jurisdictions ......................... 101 23. Electricity Generation by Source, 1973 to 2030 .................... 113 24. Final Consumption of Electricity by Sector, 1973 to 2030 ......... 114 25. Hourly Peak Electricity Demand by Month, 1997 to 2005......... 114 26. Map of the Greek Electricity Grid.................................... 123 27. Electricity Prices in IEA Countries, 2004 ............................ 129 28. Electricity Prices in Greece and in Other Selected IEA Countries, 1980 to 2004........................................................ 131 5 © OECD/IEA, 2006 © OECD/IEA, 2006 ORGANISATION OF THE REVIEW 01 REVIEW TEAM The 2006 IEA in-depth review of the energy policies of Greece was undertaken by a team of energy specialists from IEA member countries. The team visited Athens from 20 to 27 January 2006 to meet with government officials, energy suppliers, trade associations, and others. This report was drafted on the basis of those meetings and the government’s official response to the IEA’s policy questionnaire. The team is grateful for the co-operation and assistance of the many people it met during the visit. It is only thanks to their willingness to share information that this report could be prepared. The team wishes special mention to be made of the understanding and courteous professionalism displayed by Aphrodite Tzika, Olympia Tsgarakou, Maria Hiodini, Achilles Kyrtsis, Nikos Katsis and Dimitrios Kouris, all from the Greek Ministry of Development, in preparing
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