Greeces Energy Sector International Competitiveness

Ambroggi Emanuele - 4410495

International Competitiveness Project Work 2015:

Analysis of Greek Energy Sector focus on Renewable Energy Sources

Prof. Francesco Timpano

Greeces Energy Sector International Competitiveness

Ambroggi Emanuele - 4410495

SUMMARY

1.0 The Company

1.1 Sharp Corporation
1.2 Sharps products
1.3 Companys objective and strategy
2.0 Chosen country: Greece
2.1 Why invest in Greeces Energy Sector
3.0 The Energy Sector
3.1 The Energy Market in Greece
3.2 Factors of Growth of the Energy Sector
3.3 Energy Supply and Consumption
4.0 Renewable Energy Sources (RES) in Greece
4.1 Market Situation for Renewable Energy Sources:
4.1.1 Solar Energy
4.1.2 Wind Energy
4.1.3 Small Hydro-Power
4.1.4 Biomass
4.1.5 Geothermal
4.1.6 Biofuel
5.0 Energy Market Operators and Institutional Set-ups
5.1 Operators and Institutional Set-ups
5.1.1 Ministry of Reconstruction of Production, Environment and Energy
(MEECC/YPEKA)
5.1.2 Regulatory Authority for Energy (RAE)
5.1.3 Operator of the Electricity Market (LAGIE/HEMO)
5.1.4 Public Power Corporation (PPC/DEI)
5.1.5 Independent Power Transmission Operator (IPTO/ADMIE)
5.1.6 Hellenic Electricity Distributor Network Operator (HEDNO/DEDDIE)
5.1.7 Centre For Renewable Energy Sources And Savings (CRES)
5.2 Renewable Energy Private Sector Associations and Companies
6.0 Policy Framework, Laws and Regulations
6.1. Renewable Energy Laws
6.2 Licensing Procedures for Renewable Energy Projects
6.3 The Res Electricity Compensation Mechanism
6.4 National Action Plan 20-20-20
7.0 Opinions About The Res Scenario In Greece
7.1 2020 RES Scenarios for Europe Report
7.2 RES-Integration Report
8.0 Conclusions

Greeces Energy Sector International Competitiveness

Ambroggi Emanuele - 4410495

1.0 The Company

1.1 Sharp Corporation
Sharp Corporation has been established on September 15, 1912 in Matsui-cho, Honjo, Tokyo by Tokuji
Hayakawa.
Sharps vision is not only strive to continually expand the business volume but also being committed to
contribute to the culture and the well-being of people all over the world with unique and innovative
technologies and their motto is We make products that other want to imitate!.
Nowadays Sharp operates from 64 bases in 30 countries and its products are distributed in 164 countries
worldwide; it has a consolidated amount of 50,213 employees (2014) and in 2013 a consolidated amount of
revenues equal to yen 2,927,186 million (euro 22,291 billion).

1.2 Sharps products

Sharps main products and technologies are LCD panels, solar panels, mobile phones, audio-visual
entertainment equipment, video projectors, Multi-Function Printing Devices, microwave ovens, air
conditioners, cash registers and flash memory. Sharp Solar is a supplier of silicon photovoltaic (PV) solar
cells and offers a solar TV. In the first quarter of 2010 the company made the highest revenues from
production of solar PV systems.

1.3 Companys objective and strategy

Sharp Corporation is present in 30 countries and its products are distributed in 164 countries.
One of the core business of Sharp is the Photovoltaic one, it is also the one who has been more profitable in
the last year and it is forecasted to hugely grow in the next years.
The company is looking for the best location to improve its business. The chosen country is Greece. The
analysis of the market sector should explain if it worth to invest there, creating its own PV plant.

2.0 Chosen country: Greece

2.1 Why invest in Greeces Energy Sector
Today the Greek energy market is undergoing fundamental reforms. New advanced energy technologies and
perpetual environmental issues, requirements arising from European and international cooperation as well as
various intergovernmental Agreements are factors shaping and harmonizing the institutional and legislative
framework of the Greek energy market with current tendencies and perceptions.
At the centre of this process lies: the liberalization of the electricity and natural gas markets, increased
competitiveness, the extension and enhancement of the domestic and cross-border electricity, natural gas and
oil networks, the further separation of production and supply from transmission networks, consumer choice,
increased share of energy from Renewable Energy Sources, reduced share of fossil-fuel generated electricity,
improved energy efficiency, energy saving and the protection of the environment.
Strategic Position: Greece can become a key player in the transportation of energy from East to West
through pipeline projects, electricity grid interconnectivity and alternative means of ensuring Security of
Supply through Mediterranean offshore reserves.
Generation Potential: Due to its climate conditions (Greece enjoys more than 250 days of sunshineor

Greeces Energy Sector International Competitiveness

Ambroggi Emanuele - 4410495

3,000 sunny hoursa year, and has many areas of strong winds), the country possesses significant untapped
generation potential particularly in renewables which can enhance the energy mix for all of Europe.
Government support and legislation the ministry of Energy has strongly supported many major
investment projects over the past years, including the TAP natural gas pipeline, the new liquid gas terminal
in Revytousa, and major RES investments. This, in combination with Greeces wide-ranging investment
regulatory framework, provides for exceptional opportunities for investment in a number of areas.
Main investment opportunities
Privatization of state assets
New infrastructure in natural gas transmission (liquid gas terminals, gas pipelines, gas distribution systems)
Renewable energy projects (Wind, , Solar-thermal, Biomass, Small Hydro, Geothermal etc.)
Energy efficiency businesses and investments
Grid connectivity for the islands (PPP)

3.0 The Energy Sector

3.1 The Energy Market in Greece
Located at the crossroads between East and West, Greece is positioned to play a particularly significant role
in the regions energy sector. The ample availability of renewable energy potential (wind, hydro, biomass,
geothermal, solar & solar thermal) combined with ongoing large-scale infrastructure projects involving
Greece (TAP Gas Pipeline, oil exploration) mean that the country will be a key player in the formulation of
all of Western Europes energy mix and will provide significant investment opportunities in the Energy and
Energy Saving industries.
The Greek energy sector is still largely dependent on fossil fuels, most of which are imported. Domestic
energy sources include lignite which accounts for around 50% of electricity generation as well as renewable
energy sources (RES) such as hydro-power, wind, solar energy and biomass. RES currently account for
13.8 % of gross final energy consumption and a national target of a 20% share by 2020 has been set.

Greeces Energy Sector International Competitiveness

Ambroggi Emanuele - 4410495

A number of important reforms aiming at a further liberalization of the energy market, its integration with
neighbouring countries and the privatization of public companies are currently being implemented. There
are also plans for large infrastructure projects in the electricity, gas and petroleum sector that are supposed to
strengthen Greeces position as an energy hub in the South-East of Europe.
The 100% of population in Greece has access to electricity, but the fossil fuel energy consumption is
equal to the 90.58% of total consumption.
Greeces Net Energy Imports is 61% of energy use and, in absolute terms, Greece is the fourth largest
net importer of electricity in the EU, after Italy, Lithuania and Finland.

3.2 Factors of Growth of the Energy Sector

The energy sector in Greece has a higher contribution to GVA (Gross Value Added = 4%) and
employment than most EU countries, and is poised to grow significantly in the next years, driven by a
number of significant factors such as the required optimization of the energy mix, which consists of the
reduction of fossil-fuel generated electricity and the increased of energy from RES. This shift will be driven
both by the revised EU policy of 27% renewable energy sources by 2030, and by the preference for cheaper
energy sources such as natural gas; the states planned privatization of major energy assets such as PPC,
the Natural Gas distributor (DEPA) and Hellenic Petroleum; the liberalization of the electricity and
natural gas markets and the further separation of production and supply from transmission networks;
the potential for Greece to become a European gateway for natural gas and oil resources through such
projects as the TAP gas pipeline, or the gas and oil drilling opportunities in the Aegean and Ionian seas; the
efforts to improve energy efficiency and reduce cost driven by such technologies as smart metering, smart
grid technologies, LED lighting, energy efficient buildings and the major infrastructure initiatives such as
the interconnection of the Greek islands.

3.3 Energy Supply and Consumption

Around 61% of Greeces energy needs are covered through imports with the remaining 39% being covered
through national energy sources, mainly lignite (77%) and RES (22%). Imported energy sources are
mainly petroleum products that account for 44% of total energy consumption and natural gas with a share of
around 13%.
At the end of 2013, a capacity of 17,373 MW was installed in the Greek interconnected electricity system,
consisting of 4,456 MW lignite, 698 oil, 4,906 MW natural gas, 3,018 MW large hydro-power, and 4,295
MW RES. On the non-interconnected islands, the installed capacity consisted of 1,783 MW of diesel
generators and 448 MW of RES. This gives a total national installed capacity of 19,604 MW, of which
61% are thermal power plants, 15% large hydro-power plants and 24% other RES.
In 2012, gross national electricity generation was 61 TW/h, 83% of which from thermal power plants. This
corresponds to a decrease of around 4% compared to the situation before the beginning of the economic
crisis.
The share of RES in gross electricity consumption reached 17% in 2012, compared to an National
Renewable Energy Action Plan intermediate target of 18.8%. Hydro-power contributed 7.5%, wind energy
6.3%, solar photovoltaic 2.7% and biomass 0.6%. For 2013, the share of RES is estimated to reach 23% of
gross electricity consumption, compared to an NREAP intermediate target of 21.8%.

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Greece has electricity interconnections with Albania, Bulgaria, Italy (400 kV HVDC cable), FYROM
and Turkey. In 2013, Greece imported 5.6 TW/h and exported 3.9 TW/h.

Total energy consumption in Greece was around 27 million tons of oil equivalent (TOE) in 2012. Final
energy consumption was 16 million TOE in 2012, a decrease of around 24% since the beginning of the
economic crisis.
Gross national electricity consumption in 2012 was 55 TW/h, including transmission and distribution
losses of 2.9%. The annual peak load in the interconnected system currently stands at around 9,000 MW.
Electricity tariffs in the first half of 2013 for final consumers were on average 156 per MW/h for
households and 125 per MW/h for industrial companies, after an increase of 25% and 16% respectively
from 2011.

4.0 Renewable Energy Sources (RES) in Greece

4.1 Market Situation for Renewable Energy Sources
4.1.1 Solar Energy
Solar energy is playing an increasingly important part in the energy mix of Greece. The country has high
levels of solar irradiation with an average global horizontal irradiation level of more than 1,500 kWh/m2.
Photovoltaic energy has seen a significant increase in capacity over the past 2 years from 620 MW by the
end of 2011 to 2,520 MW in September 2013 due to very high feed-in tariff levels. The current national
capacity target for photovoltaic energy of 2,200 MW by 2020 has therefore already been achieved in
2013.
Today, 14,369 mainly small and medium sized PV plants are installed, corresponding to a capacity of
2,154 MW. In addition, 40,537 small PV systems are installed on rooftops corresponding to an additional
capacity of approximately 366 W. Only 6.2% of the total PV capacity is installed on non-interconnected
islands.
There are currently no concentrated solar power (CSP) plants installed in Greece. There are some sites
with direct irradiation levels over 2,000 kWh/m2/year on the Southern Greek islands that could be interesting
for CSP. Several projects with a combined capacity of 424 MW are currently under development. The
national target for CSP is 250 MW until 2020.
With around 4.1 million m2 (2.9 GWth) of solar thermal systems installed, Greece has the second largest
total capacity in Europe after Germany. It also has the third largest per capita ratio of installed collector
surface after Cyprus and Austria. Around 243 000 m (170.1 MWth) of solar thermal systems have been
installed in 2012. The Greek market mostly consists of individual solar water heaters of the thermosiphon
type. There is still a significant potential for larger solar thermal systems in the tertiary sector and in
industry.

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4.1.2 Wind Energy

Greece has some of the most attractive sites for the use of wind energy in Europe, with average capacity
factors of around 25% for the mainland and 30% for the islands. The economic wind energy potential in
Greece is estimated at 10,000-12,000 MW.
The national capacity target for wind energy is 7,500 MW until 2020, including 300 MW of offshore wind
energy. At the end of 2013, a total capacity of 1,809 MW of wind parks has been installed, compared to
1,749 MW in 2012 and 1,634 MW in 2011. 288 MW of wind turbines have been installed on noninterconnected islands, out of which around 70% have been installed on Crete.
Off-shore wind turbines have not yet been installed, with the main reasons to be found both at difficulties in
the environmental permitting procedure and technical problems mainly due to the depths of the Aegean sea
floor. There are plans to introduce a new programme for small wind energy turbines with capacities below
50 kW starting from mid-2014.

4.1.3 Small Hydro-Power

There is currently an installed capacity of 218 MW of small hydro-power (SHP) plants in Greece. By
definition, these are hydro-power stations with a capacity less than 15 MW. Due to the high fluctuation of
rainfall, the majority of these plants produce mainly during the wet season (winter and spring). They are
all run-off river type, without any kind of reservoir. Around 104 SHP projects are currently in operation,
mostly located in Epirus, Macedonia and Peloponnese. The economic SHP potential in Greece is
estimated at 1,000- 2,000 MW.

4.1.4 Biomass
There are only few biomass energy projects for electricity generation that have been developed in Greece,
mainly for the utilization of municipal wastes in biogas plants. There is still a large potential for the
utilisation of biomass for energy purposes, especially biomass waste and residues from the agricultural,
industrial and residential sectors. The total installed capacity of biomass energy currently stands at 46 MW
for a total of 12 individual projects. This compares with an intermediated national target of 80 MW for 2013
and 250 MW by 2020 according to the National Renewable Energy Action Plan (NREAP).

4.1.5 Geothermal
Greece lies in a geographic position that is favourable to geothermal resources, both high temperature
and low temperature. High temperature resources, suitable for power generation coupled with heating and
cooling, are found at depths of 1-2 kilometres on the Aegean islands of Milos, Santorini, and Nisyros. Other
locations that are promising at depths of 2-3 kilometres are on the islands of Lesvos, Chios, and Samothraki
as well as the basins of Central-Eastern Macedonia and Thrace.
Low temperature geothermal resources are found at the plains of Macedonia-Thrace and in the vicinity of
each of the 56 hot springs found in Greece. These areas include Loutra-Samothrakis, Lesvos, Chios,
Alexandroupolis, Serres, Thermopyles, Chalkidiki, and many others.
Low temperature geothermal applications include space heating and in agricultural uses (greenhouse heating,
the drying of fruits and vegetables, aquaculture and seawater desalination, and in spas), providing an ideal
synergy with other widespread commercial ventures in Greece.
Geothermal projects for electricity generation have not been yet developed in Greece. The national target
for geothermal electricity is 120 MW until 2020.

4.1.6 Biofuel

Greeces Energy Sector International Competitiveness

Ambroggi Emanuele - 4410495

Greece has a national target of 10% renewable energy in the transport sector. The largest share of this
is supposed to come from biofuels. The RES share in the transport sector was around 1.06% in 2012.
National regulation obliges Greek refineries to blend at least 5% of biofuels in their production. Biodiesel
quantities are allocated every year after a relevant call for tenders and following a specific procedure to
stakeholders, producers or importers, who are interested in participating in this quota system.
Currently, only biodiesel is being commercialized in Greece. Around two thirds of the production is
imported, the rest is produced locally, mainly from sun flowers and rapeseed. So far, bioethanol as well as
second and third generation biofuels have not been introduced in the Greek market.

5.0 Energy Market Operators and Institutional Set-ups

5.1 Operators and Institutional Set-ups
5.1.1 Ministry of Reconstruction of Production, Environment and Energy
(MEECC/YPEKA), ex Ministry of Environment, Energy and Climate Change
The Ministry of Environment, Energy and Climate Change (MEECC/YPEKA), has the responsibility for
the definition and implementation of the national energy policy as well as the coordination of the
energy sector, including the promotion of renewable energy sources. YPEKA supervises a number of public
institutions and companies with activities in the renewable energy sector, including RAE, PPC, IPTO,
HEDNO and CRES. The responsible organisational unit within YPEKA is the General Secretariat for Energy
and Climate Change.

5.1.2 Regulatory Authority for Energy (RAE)

The Regulatory Authority for Energy (RAE) is an independent administrative authority, with financial
and administrative independence under the supervision of YPEKA. RAE monitors the operation of the
energy markets, including electricity from RES. It issues opinions on electricity retail tariffs as well as
access tariffs to electricity transmission and distribution networks. It is responsible for granting production
licenses for electricity generation from RES. RAE also acts as a dispute settlement authority with respect to
complaints against transmission or distribution system operators in the electricity sector.

5.1.3 Operator of the Electricity Market (LAGIE/HEMO), ex HTSO

(LAGI+ADMIE)
LAGIE has the responsibility for the operation of the electricity market according to the mandatory
pool model. Fossil fuel and large hydro electricity producers submit their offers to LAGIE that
organises the day-ahead market based on these offers. For the case of RES, LAGIE concludes power
purchase agreements (PPA) with RES producers based on the current feed-in tariffs (FIT). These FIT
are paid from the RES Special Account which is also managed by LAGIE. For the non-interconnected
islands, the funds are transferred by LAGIE to HEDNO. Apart from the short term wholesale electricity
market, LAGIE also has the responsibility for managing the long term capacity market as well as the
imbalance settlement mechanism.

5.1.4 Public Power Corporation (PPC/DEI)

The Public Power Corporation (PPC/DEI) Group consists until today of four companies with separate legal
and managerial identities: PPC S.A., ADMIE, DEDDIE and PPC Renewables. The PPC Group currently
holds assets in lignite mines, power generation, transmission and distribution. PPC S.A. is the biggest
power producer and electricity supply company in Greece with approximately 7.4 million customers

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and a market share of around 98%. PPCs current power portfolio consists of conventional thermal and
hydroelectric power plants accounting for approximately 70% of the total installed capacity in the country. In
2012, the total installed capacity of PPC generation plants was 12.5 GW. PPC is active in the RES sector
through its subsidiary company PPC Renewables S.A..
In the final analysis, the PPC is controlled by the Greek government, which owns a majority of the issued
shares. From 1950 to nowadays, PPC strived for the country's energy autonomy, while accomplishing the
most significant project of supplying 99% of Greece with electricity.
In 2001, PPC carried out a share flotation on the Athens Stock Exchange and consequently is no longer
wholly owned by the government, although it is still controlled by it with a 51.1% stake.
In June 2011, the Greek government announced it would sell 17% of its share of PPC to meet conditions of
EU/ECB/IMF loan package. The workers of PPC responded by limited power cuts to selected towns across
Greece. However, this plan is now is jeopardy as the incoming Tsipras Government has decided to
suspend the privatization of PPC as one of its first anti-austerity measures.
The PPC has committed to buying renewable-source energy from independent producers at five times
its selling rate until 2034.

5.1.5 Independent Power Transmission Operator (IPTO/ADMIE)

The Independent Power Transmission Operator (IPTO/ADMIE) S.A. is a wholly owned subsidiary of PPC
S.A. that is however independent from its parent company in terms of its management and operation. There
are plans for the full ownership unbundling of IPTO in 2014. IPTO has the role of Transmission
System Operator (TSO) for the Hellenic Electricity Transmission System and is responsible for system
operation, maintenance and development. IPTO is also managing electricity flows on the system, taking
into account exchanges with other interconnected systems. It prepares on an annual basis the Hellenic
Electricity Transmission System Ten Year Development Plan. It is also responsible for preparing day-ahead
forecasts of the load and the RES electricity production as well as the optimisation of the day-ahead
schedule.

5.1.6 Hellenic Electricity Distributor Network Operator (HEDNO/DEDDIE)

The Hellenic Electricity Distribution Network Operator S.A. (HEDNO/DEDDIE) is a wholly owned
subsidiary of PPC S.A., that is however independent from its parent company in terms of its management
and operation. Its responsibilities are the operation, maintenance and development of the electricity
distribution network in Greece. This includes the non-interconnected electricity networks as well as the
electricity generation facilities on the Greek islands. On the islands, HEDNO is responsible for concluding
power purchase agreements (PPA) with RES producers. HEDNO also manages the access of electricity
consumers as well as RES electricity producers to the distribution network.

5.1.7 Centre For Renewable Energy Sources And Savings (CRES)

The Centre for Renewable Energy Sources and Saving (CRES) is a national entity for the promotion of
renewable energy sources, rational use of energy and energy conservation. It was founded in September
1987 as a public entity, which is supervised by YPEKA and has financial and administrative independence.
CRES provides advisory services to YPEKA for the definition and implementation of the national renewable
energy policy, strategy and planning. It conducts applied research on new energy technologies and provides
technical support for the penetration and implementation of these technologies. CRES also implements
European, national and international projects for the promotion and market penetration of new energy
technologies.

5.2 Renewable Energy Private Sector Associations and Companies

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There are several Greek associations representing the private companies that are active in the renewable
energy sector. These include the Greek Association of RES Electricity Producers (GAREP), the Hellenic
Wind Energy Association (HWEA/ELETAEN), the Hellenic Association of Photovoltaic Companies
(HELAPCO), the Hellenic Association of Photovoltaic Energy Producers (SPEF), Greek Solar Industry
Association (EBHE), the Hellenic Small Hydro Power Association (HSHA) and the Hellenic Association for
the Development of Biomass (HELLABIOM).
Several hundred Greek and international companies are active in the RES sector in Greece. In the
photovoltaic sector, a large number of predominantly small and medium companies and individuals
(including farmers) operating several projects of different capacity are present. The wind energy sector in
Greece is dominated by specialised companies that develop, own and operate a portfolio of wind parks, and
in many cases also photovoltaic power stations and small hydro plants. Six companies own and operate wind
parks that correspond to almost 70% of the installed capacity.

6.0 Policy Framework, Laws and Regulations

6.1 Renewable Energy Laws
The support mechanism for electricity generation from renewable energy sources is based mainly on Law
3468/2006 and Law 3851/2010. According to these laws, priority is given for the injection of electricity
from RES into the electricity grid. The electricity produced is remunerated by a technology-specific feedin tariff (FIT).
A feed-in tariff (FIT, standard offer contract) is a policy mechanism designed to accelerate investment
in renewable energy technologies. It achieves this by offering long-term contracts to renewable energy
producers, typically based on the cost of generation of each technology.
These FIT are further differentiated according to the size of the RES installation with smaller systems
benefitting from higher FIT. Payment of the FIT is guaranteed for a period of 20 years (25 years for
small PV systems and solar thermal power plants) in the context of a sales contract (Power Purchase
Agreement PPA).
A power purchase agreement (PPA) is a contract between two parties, one who generates electricity for the
purpose (the seller) and one who is looking to purchase electricity (the buyer). The PPA defines all of the
commercial terms for the sale of electricity between the two parties, including when the project will
begin commercial operation, schedule for delivery of electricity, penalties for under delivery, payment terms,
and termination.
Regular degression rates are currently only applied to FIT for photovoltaic energy systems. FIT levels are
adjusted annually by a certain percentage of the consumer price index to take into consideration the inflation
of operating costs. FIT for small hydro-power, geothermal stations and biomass energy systems are increased
by 15-20% if the investor of the RES plant decides not to apply for an investment subsidy under the national
investment law which accounts for 20-40% of investment costs. Wind energy and photovoltaic energy
systems are not entitled to investment grants but they can benefit from tax incentives.

6.2 Licensing Procedures for Renewable Energy Projects

The licensing procedure for RES projects has been significantly simplified in 2010. Larger RES projects
require a production license (issued by RAE), an installation license (issued by YPEKA or by local
authorities) and an operation license (issued by YPEKA or by local authorities). Small and medium sized

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RES projects (PV and biomass plants 1 MW, geothermal stations 500 kW, wind parks 100 kW) do not
require the above licenses. In addition, other licenses (water use, building permit, use of forest land) as
well as an Approval of Environment Terms (AET) or Standard Environmental Commitments (SEC) are
required according to the nature of the project. All RES projects have to submit applications for nonbinding and binding connection offers to the competent network operator (IPTO or HEDNO). They are
also required to sign a connection contract with the competent network operator (IPTO or HEDNO) as
well as a PPA with LAGIE (or HEDNO for the non-interconnected islands).

6.3 The Res Electricity Compensation Mechanism

FIT are paid to RES producers through the RES Special Account which is managed by the Electricity
Market Operator (LAGIE). The revenues of this account include the following:

Revenues of LAGIE from the sale of RES electricity on the wholesale market at the system marginal
price (SMP)
Revenues from the auctioning of greenhouse gas emission allowances
25% of the fee for the Public Broadcast Company
Special fee of 2 per MW/h for electricity produced by lignite
Special Fee for the Reduction of Greenhouse Gases Emissions (ETMEAR)

The ETMEAR, which is collected through electricity bills, varies between different categories of final
consumers. The ETMEAR has been increased several times since 2011 when it stood at 1.84 per MW/h.
The last revision was in July 2013, with an increase of the weighted average ETMEAR from 9.30 per
MW/h to 14.96 per MW/h. For households, the ETMEAR currently stands at 20.5 /MWh.

6.4 National Action Plan 20-20-20

According to the EU Directive 2009/28/EC, Greece has to achieve a target of 18% renewable energy
sources (RES) in gross final energy consumption by 2020. This target has been increased to 20% (Law
3851/2010), while the specific trajectory for achieving it is presented in the National Renewable Energy
Action Plan (NREAP) of 2010. The overall target is broken down further into sub-targets of 40% RES in
gross electricity consumption, 20% RES in final energy consumption for heating and cooling, and 10% RES
in final energy consumption for transport until 2020.

7.0 Opinions About The Res Scenario In Greece

7.1 2020 RES Scenarios for Europe Report
We can see how Greece is working to meet the EU 2020 policies thanks to the 2020 RES scenarios for
Europe report, compiled within the European Intelligent Energy Europe project Keep On Track.
Despite a strong uptake of RES deployment in previous years Greece is expected to fail in achieving its
2020 RES target under baseline conditions. As a consequence of currently unpredictable and unstable
support for renewables in the various sectors, partly triggered by retroactive measures that have been taken
for RES-E (renewable energy sources electricity), and a generally limited access to finance, RES target
achievement is getting out reach in the BAU case (i.e. 15.4% compared to 18%)(BAU=Business As Usual)
forecast at 15.4%; 2020 RES target at 18%; PR= Policy Recommendation at 19.8%).

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Thanks to past initiatives for RES-E there is however progress in deployment expected in the near future,
specifically some PV (photovoltaics projects) have recently (throughout 2013 and 2014) started operation or
remain in their pipeline of realisation. If policy recommendations like the implementation of a suitable
strategy for RES-H&C and for biofuels in transport are implemented well in time, a sufficiently strong
uptake of RES appears however feasible. Thus, as shown in Figure 56 in the PR scenario Greece would

then turn from an importer (BAU case) to an exporter country concerning RES cooperation. Key
options for doing so are biofuels in transport and RES in the electricity sector (see Figure 57).

7.2 RES-Integration Report

In a national report about the integration of electricity from renewables to the electricity grid and to
the electricity market (RES-Integration) produced by Eclareon and Oko-Institut, we can read as follows:
There is a single grid connection procedure for transmission and distribution grid, due to the fact that PPC
(Public Power Corporation) remains the owner of both systems. The novelties introduced by the law
3851/2010 have made the grid connection procedure less complicated but nevertheless created a
congestion of applications, thus making the holding of the deadlines unrealistic. This is the main
drawback RES-E plants are facing for their further deployment along with other issues not directly related to
the grid connection procedure.

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The enforcement of a RES-E Producers rights in relation to license issues is possible but there is no right
for compensation in any case. With respect to the costs of grid connection, for the transmission grid, there is
a shallow costs approach, whereas for the distribution grid a deep cost approach. The operation of the grid
provides favourable conditions for the RES-E deployment.
There is a purchase obligation for RES-E and a regime of priority dispatch. Apart from that, although
RES-E plants are obliged to work in line with network requirements, the provision of ancillary services is not
obligatory.
Under special circumstances not further outlined, the TSO (Transmission System Operator) is entitled to
shut down a plant, without any previous notice.
Representatives of independent power producers and of RES-E associations argue that their interests
are not seriously considered in grid planning, also due to the conflict of interest due to the fact that PPC
acts both as dominant generator and as DSO.
Obligations of grid operators towards RES-E producers are binding only after the conclusion of a
connection agreement contract. However, this can be signed only if the necessary grid infrastructure has
been built, leading to a chicken and egg situation that does not enable RES-E producers to effectively
pursue their rights.
The electricity market in Greece is still very concentrated. There is one company that controls 98 % of
the generation and 100 % of the supply market.

8.0 Conclusions
The Greek Energy market is undergoing fundamental reforms: the progressive liberalization, the increased
competitiveness and the extension of the market makes the sector appealing.
The demand for Energy is huge and if Greece would be capable of increasing its energy supply, thanks to its
many potential sources, it could transform itself from an importer to an energy exporter.
At the moment there are many little Renewable Energy Sources producers but there are not yet any
Concentrated Solar Power Plants, that could create huge amount of energy and therefore having great
contractual power.
Moreover, Greece has to follow the 20-20-20 European directive and, therefore, it has implemented many
laws in favour of RES and the Licensing procedures to set up a RES projects has been shortened and made
easier. However, the novelties introduced by the law 3851/2010 have made the grid connection procedure
less complicated but nevertheless created a congestion of applications, thus making the holding of the
deadlines unrealistic.
In addition, under special circumstances not further outlined, the Transmission System Operator is entitled to
shut down a plant, without any previous notice and representatives of independent power producers and of
RES-E associations argue that their interests are not seriously considered in grid planning, also due to the
conflict of interest due to the fact that PPC acts both as dominant generator and as DSO.
PPC is still property of the state and it controls 98 % of the generation and 100 % of the supply market, being
de facto owner of generation, transmission and distribution of energy in Greece, creating a total Market

Greeces Energy Sector International Competitiveness

Ambroggi Emanuele - 4410495

Failure. PPC started its liberalization but it has been blocked by the actual Tsipras government, as one of its
first anti-austerity moves. Furthermore nowadays Greece is still default-risky and the country has not found
yet an agreement with the ex-Troika on how repaying its debt, making the whole business environment risky
and unpredictable.
The final suggestion to Sharp is to dont directly invest in its own plant, because of the actual Market Failure,
but wait for the real privatization of the sector. Waiting would also make more understandable how the
business environment would evolve due to the serious countrys debt crisis. In the meantime, given the fact
that Sharp is also retail-seller of PV, its suggested to analyse the less risky retail-sector, in order to
understand its profitability.

Greeces Energy Sector International Competitiveness

Ambroggi Emanuele - 4410495