kom (2017) 0688 (forslag) - COMMISSION STAFF WORKING DOCUMENT Energy Union Factsheet Greece Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN INVESTMENT BANK Third Report on the State of the Energy Union

Europaudvalget 2017
KOM (2017) 0688
Offentligt

EUROPEAN

COMMISSION

Brussels, 23.11.2017

SWD(2017) 392 final

COMMISSION STAFF WORKING DOCUMENT

Energy Union Factsheet Greece

Accompanying the document

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN

PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL

COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN

INVESTMENT BANK

Third Report on the State of the Energy Union

{COM(2017) 688 final} - {SWD(2017) 384 final} - {SWD(2017) 385 final} -

{SWD(2017) 386 final} - {SWD(2017) 387 final} - {SWD(2017) 388 final} -

{SWD(2017) 389 final} - {SWD(2017) 390 final} - {SWD(2017) 391 final} -

{SWD(2017) 393 final} - {SWD(2017) 394 final} - {SWD(2017) 395 final} -

{SWD(2017) 396 final} - {SWD(2017) 397 final} - {SWD(2017) 398 final} -

{SWD(2017) 399 final} - {SWD(2017) 401 final} - {SWD(2017) 402 final} -

{SWD(2017) 404 final} - {SWD(2017) 405 final} - {SWD(2017) 406 final} -

{SWD(2017) 407 final} - {SWD(2017) 408 final} - {SWD(2017) 409 final} -

{SWD(2017) 411 final} - {SWD(2017) 412 final} - {SWD(2017) 413 final} -

{SWD(2017) 414 final}

kom (2017) 0688 (forslag) - COMMISSION STAFF WORKING DOCUMENT Energy Union Factsheet Greece Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN INVESTMENT BANK Third Report on the State of the Energy Union

Energy Union

–

Greece

Energy Union factsheet

1. Macro-economic implications of energy activities

Energy and transport are key sectors for the overall functioning of the economy as they provide an

important input and service to the other sectors of the economy. Together the activity in these two

sectors

accounted for 9.3% of the total value added of Greece in 2015. Similarly, their share in total

employment

was 5.0% of total employment in 2015, of which 4.6% in the transport sector and 0.4%

in the energy sector.

Value added of the sector as % of total

economy gross value added

Employment in the sector as % of total

employment

Energy&Transport as % of total employment:

Energy&Transport as % of total GVA:

9,61

[%]

9,34

6,64

6,88

[%]

5,11

4,97

5,57

5,46

2005

2015

2005

2015

EU28

2005

2015

2005

2015

EU28

Energy

Transport

Energy

Transport

(source: Eurostat)

According to EurObserv'ER, in 2015, the share of direct and indirect renewable energy related

employment in total employment of the economy in Greece was at about 0.37%. The turnover of the

renewable energy industry in the same year was estimated at around EUR 1.07 billion, more than

half being attributed to the biomass and wind (25.5% and 29.3% of total renewable turnover

respectively) followed by solar thermal (21.4%) and biofuels industries (13%).

The indicators used in this country factsheet largely build on indicators developed for the Commission Staff

Working Document "Monitoring progress towards the Energy Union objectives

–

key indicators" (SWD(2017)

32 final)

https://ec.europa.eu/commission/sites/beta-political/files/swd-energy-union-key-indicators_en.pdf

Gross value added and employment in NACE sectors D-Electricity, gas, steam and air conditioning supply and

H-Transportation and storage

National Accounts, Eurostat

Energy Union

–

Greece

(source: EC based on Eurobserv'Er and Eurostat)

The decarbonisation of the energy and transport sectors will require significant investments and

economic activity beyond the remit of these sectors themselves. The energy transition implies a

structural shift in economic activity. Energy-related investment and jobs will in part migrate from

traditional fossil fuel based activities towards construction, equipment manufacturing and other

services related to the deployment of low carbon and clean energy technologies. At the moment, the

efforts related to the low-carbon and clean energy transition in sectors beyond energy can only be

partially quantified and are therefore not included in this analysis.

An indication of the level of efforts and challenges encountered by Greece in the energy sector is

given by the Gross Fixed Capital Formation (GFCF)

. Investments in the electricity and gas sectors,

which are taken as reference sectors, have represented around 0.2% of the country's GDP in the

period 2011 - 2015, a fall compared to the preceding years where these investments were around

0.4%.

GFCF in energy as share of GDP, Greece*

0,5%

0,4%

[% GDP]

0,3%

0,2%

0,1%

0,0%

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

GFCF=Gross

fix capital formation

(source: Eurostat)

Gross fixed capital formation consists of resident producers´ acquisitions, less disposals, of fixed tangible or intangible

assets. This covers, in particular, machinery and equipment, vehicles, dwellings and other buildings. It also includes foreign

direct investment (FDI). Steam and air conditioning supply are also included in the figures mentioned above as Eurostat

reports electricity, gas, steam and air conditioning supply together.

Energy Union

–

Greece

In terms of trade, Greece is a net importer of fossil fuels and electricity. The trade deficit in energy

products has fallen from about 3.5% of GDP in 2006 to 2.1% in 2015 and has thus become close to

the deficit level for the EU as a whole. The decrease is fully accounted for by petroleum products,

whereas the numerically much smaller trade deficits for gas and electricity have increased somewhat

over time, reflecting the ongoing structural change in Greece's energy mix.

Trade balance of energy product and current account

balance

Trade balance of all energy products [%GDP]:

-3,46

-2,13

-2,24

-1,69

4,0

[% of GDP]

2,0

0,0

-2,0

-4,0

-6,0

-8,0

-10,0

2006

2015

Gas

Oil

Coal

Electricity

2006

EU28

2015

(source: Eurostat)

2. Energy security, solidarity and trust

2.1. Energy Mix

The energy mix of primary products in Greece shows some differences compared to the EU28

average, i.e. by a higher use of petroleum and solid fuels (52.8% and 23.7% respectively versus an

EU28 average of 34.4% and 16.2%), while a lower use of natural gas (11.3% versus an EU average of

22%) and no nuclear.

2015 EL: Energy mix*

GIC - total:

GIC - energy mix*:

24,4 Mtoe

23,6 Mtoe

2015 EU28: Energy mix*

GIC - total:

GIC - energy mix*

1627,5 Mtoe

1626,2 Mtoe

0,4%

waste

11,7%

renewables

0,0%

nuclear

11,3%

natural gas

52,8%

oil

0,8%

waste

13,0%

renewables

13,6%

nuclear

22,0%

natural gas

34,4%

oil

16,2%

solid fuels

*energy mix as share

share in GIC-excluding electricity and derived heat exchanges

GIC=gross inland consumption

23,7%

solid fuels

(source: Eurostat)

Energy Union

–

Greece

2.2. Import dependency and security of supply

Import dependency in Greece remains above EU average for all main fossil fuels and in the period

2005 to 2015 increased by 3.3 percentage points, more than the 1.9 percentage points increase

observed on average at EU level. When it comes to natural gas and petroleum products, the

dependency increased over the same period. In 2015, Greece imported 61.6% of its gas (significantly

higher than the average share at the EU level), almost 20% of its crude oil and about 64% of hard coal

from Russia.

Import dependency

absolute change 2005-2015 [pp]

1,9% 3,1%

12,0% 0,8%

7,2% 6,3%

8,4% -8,6%

2015: Top non-EU suppliers for main energy carriers*

Natural gas

Crude oil and NGL

Hard coal

99,9%

101,5%

EU28

Russia

37,3%

Norway

32,8%

Algeria

10,7%

Iraq

45,1%

Russia

19,9%

Kazakhsta

14,1%

EU28

Russia

28,8%

Norway

12,4%

Nigeria

8,3%

Russia

64,2%

Ukraine

18,7%

South

Africa

17,1%

EU28

Russia

29,1%

Colombia

24,3%

United

States

16,0%

120%

71,7%

69,1%

54,0%

88,4%

64,1%

91,4%

Russia

61,6%

Turkey

19,4%

80%

40%

EU28

total energy

carriers

natural gas

2005

crude oil and NGL

2015

hard coal

Algeria

11,7%

*share in total imports for the MS and in total non-EU imports for the EU28

(source: Eurostat)

The importance of security of supply was highlighted in January 2017, when DEPA (the Greek Public

Gas Corporation) was forced to make several extraordinary LNG orders to deal with the exceptionally

high gas demand --triple the usual amount, and avoid a collapse of the system. The planned

construction of the Trans Adriatic Pipeline, as part of the Southern Gas Corridor, is set to significantly

improve the diversification of its gas supplies.

From all energy sources, natural gas is the one which generates most concern about security of

supply, not least because its important role in the heating of homes and the disruptions experienced

in recent years. The security of gas supply regulation requires that, if the single largest gas

infrastructure fails in one Member State, the capacity of the remaining infrastructure is able to

satisfy total gas demand during a day of exceptionally high gas demand. Greece complies with this

rule.

N-1 rule for gas

108,8%

2016

threshold 100%

Energy Union

–

Greece

(source: gas coordination group)

3. Internal market

3.1. Interconnections and wholesale market functioning

3.1.1. Electricity

(

source: EC services based on ENTSOE

and European power exchanges)

source: EC services based on Eurostat

source: EC services based on Platts

The interconnection level

for electricity was 10.6% in 2017. The implementation of further

electricity-related projects should help Greece to strengthen its interconnections.

Linked to the gas supply crisis mentioned above, the Greek energy system faced significant problems

i Ja uary

7 whe the cou try’s electricity etwork early collapsed o two occasio s a d

blackouts were averted only at the last minute. The electricity and gas infrastructures found

themselves functioning under extreme conditions when demand soared for many days in sub-zero

te peratures. The arket’s failure to reflect the high de a d a id e ergy crisis co ditio s i

natural gas and electricity prices resulted in ruling out imported electricity and at the same time

prompted electricity exports to foreign markets.

In terms of market concentration, Greece was among the Member States that saw the most

significant decreases in concentration levels (56.6%).

However, there is no true level playing field with the incumbent (PPC) still having a dominant

position. The Greek government has committed to reduce the market shares of the incumbent. The

already introduced electricity auction will be complemented by structural measures to this effect.

The interconnectivity level is calculated as a ratio between import interconnection and net generation capacities

of the country (i.e. the 2017 value is the ratio between simultaneous import interconnection capacity [GW]

and net generating capacity [GW] in the country at 11 January 2017, 19:00 pm as resulted from ENTSO-E

Winter Outlook 2016/2017).

Energy Union

–

Greece

In Greece, wholesale prices showed a slight increase in the period 2013-2016 (3.3%). Electricity prices

were fully liberalised in July 2013 but no effective entry into the market has taken place; the

incumbent electricity company remains the dominant supplier as a result.

3.1.2

Gas

Greece was among the numerous Member States that saw an increase of its market concentration

for wholesale gas supply (24.5%). This could be presumably driven by a growing reliance on Russian

gas.

Between 2013 and 2016, Greece was among the Member States that saw the most significant price

decreases (-53.9%), placing it below the EU average in 2016. The development of estimated border

prices suggests that during 2015 the pricing of Russian gas shifted from oil-indexation towards hub-

based pricing.

Greece has made significant steps towards a full liberalisation of its gas retail markets. All consumers

are now eligible, except households which will become eligible in 2018. The previously existing gas

supply monopolies have been abolished and supply and distribution unbundled.

Once implemented fully, this will make it possible for Greek end-consumers to benefit from the

increased gas-to-gas competition from LNG and the Trans-Adriatic Pipeline (TAP).

This pipeline is an interconnector (approx. 870 km long) between Komotini in Greece and the region

of Puglia in Italy (via Albania). TAP aims at transporting gas produced mainly from the Phase II

development of the Shah Deniz field in the territory of the Republic of Azerbaijan. TAP has officially

started the construction in May 2016 and is estimated to be completed by 2020.

While an interconnection with Bulgaria through the reverse flow in Kulata-Sidirokastron is possible

since mid-2016, several projects are currently planned to further enhance supply opportunities and

connections with its direct neighbours. This is most notably the case with: 1) the upgrade of the

existing LNG terminal (in the location of Revithoussa, expected to be available in the first half of

2018) and the development of a new one in Alexandroupolis, 2) the Interconnector between

Komotini in Greece and Stara Zagora in Bulgaria and, potentially, 3) the IGI Poseidon from Turkey

and/or the East-Mediterranean area with the upgrade of the compressor station in Kipi.

Energy Union

–

Greece

(source: ACER for the left graph and EC services based on Platts, gas hubs, Eurostat for the right graph)

3.2. Retail electricity and gas markets

3.2.1. Electricity

While in 2015 on average 6.3% of household consumers in the EU changed their electricity suppliers,

supplier switching in electricity is largely absent in Greece as demonstrated by a declining rate that

reached only 0.3% in 2015.

In 2015, households' electricity prices in Greece were below the EU average. Between 2013 and

2016, average band retail electricity prices for households increased by 1.5%.

This can be partially explained by an increase in taxes and levies from 29.7% in 2013 to 31.2% in

2016. Retail prices in Greece also include a public service obligation levy to recover the higher cost of

power generation in the non-interconnected islands.

(source: ACER)

(source: Eurostat)

3.2.2. Gas

Greece continues to have a zero switching rate for gas. At present, the gas network is geographically

limited; distribution and supply of natural gas to retail consumers is done by three companies (called

EPAs) for the regions of Attica, Thessaloniki and Thessalia, and there are no alternative suppliers.

DEPA, the incumbent natural gas importer and supplier, supplies natural gas to these three local

monopoly distributors. Since the beginning of 2017, only those non-household customers with an

annual consumption of greater than 2.2 GWh are eligible to select their supplier of gas in the

Energy Union

–

Greece

currently EPA-served regions in Greece. As of January 2018

, all customers, including households, will

become eligible irrespectively of consumption level.

Greece was among the limited number of Member States that saw a decrease of its household gas

prices by 26.6% between 2013 and 2016, mainly as a result of reduced gas import prices, bringing

them very close to the EU average.

The share of taxes and levies in the retail gas prices paid by household customers is lower than for

electricity. While the share showed an upwards trend, reaching 20.2% in 2016, it remained below the

EU average by more than 6 percentage points.

(source: ACER)

(source: Eurostat)

3.2.3. Market performance indicators

According to the survey of DG JUST, Greek consumers are less satisfied than the EU average about

the services received on energy retail markets. Electricity services, despite having improved most (by

5.5 points) since 2013 compared to other services, are in the bottom three markets at national level

in terms of performance. Consumer satisfaction related to retail electricity services in fact decreased

between 2010 and 2015, further widening the difference with the EU average by more than 5

percentage points.

The opposite trend was observed concerning retail gas services, where consumer satisfaction

increased in the period 2010-2015, bringing it much closer to the 2015 EU average. It should be

noted that Greek consumer satisfaction for gas was above the EU average in 2010.

According to national law 4001/2011 as amended by law 4336/2015 (FEK A 94/14.08.2015) and law

4337/2015 (FEK A 129/17.10.2015).

Energy Union

–

Greece

(source: DG JUST survey)

3.3. Energy affordability

In Greece, despite less significant heating needs in comparison with the EU, the share of energy in

total household expenditures of the lowest quintile of population is below but close to the EU

average. This should be contrasted with the situation in 2005, when the share was lower than the EU

average by close to 2 percentage points.

Furthermore, more than half of the most socially deprived householders are unable to keep their

homes adequately warm. The share saw a significant increase of more than 22 percentage points in

the period 2005-2015 and is more than double the EU average. The impact of the continued

economic crisis on household disposable incomes, as also attested by the steadily increasing

percentages of the national population (42% in 2015, more than four times the EU-28 average) with

arrears on utility bills

, partly explains these developments. Housing stock issues (poor thermal

insulation) could explain the fact that the share was higher than the EU average even before the

onset of the economic crisis.

(source: ad-hoc data collection of DG ENER based on HBS with the support of Eurostat and national statistics)

Source: European Commission, based on EUROSTAT SILC survey (EU-Statistics on Income and Living Conditions)

Energy Union

–

Greece

Greece has defined specific criteria and has introduced targeted, protective measures for vulnerable

consumers which have been widened since 2014 in order to mitigate energy poverty. Such measures

include, amongst others, subsidies for heating oil and electricity and social tariffs. In 2017, 645,262

metering points

are under the Social Residential Tariff scheme, an increase of 56% compared to the

numbers quoted in 2013

. In 2015, Greece also introduced a special measure considering a certain

quantity of electricity that is provided for free to residential customers facing severe poverty.

4. Energy efficiency and moderation of demand

Between 2005 and 2015, Greece decreased its primary energy consumption by 22.5% to 23.75 Mtoe.

Over the same period, final energy consumption also decreased by 21.3% to 16.5 Mtoe in 2015.

Despite the fact that Greece has already achieved levels of primary and final energy consumption

below the indicative national 2020 targets (24.7 Mtoe in primary energy consumption and 18.4 Mtoe

in final energy consumption), it would need to make an effort to keep the primary energy

consumption at this level or to minimise its increase when the GDP grows again during the next five

year period.

When describing energy efficiency trends, it is meaningful to compare absolute trends with trends in

terms of economic output, not only because energy consumption and economic growth are

correlated, but also because a decoupling of these two indicators can be considered as a proxy for

increasing energy efficiency. Primary energy intensity in Greece was in 2015 above the EU average,

as this indicator decreased more slowly than for the EU average between 2005 and 2015 (0.2%

versus a 2% reduction). This could be explained by a more significant decline of GDP as compared to

primary energy consumption.

(source: Eurostat)

In 2015, the Greek transport sector was the largest energy consuming sector representing a 39.9%

share in the total final energy consumption, which is above the EU average of 33.1%. The energy

consumption of Greece's residential sector was in 2015 at 26.7% in total final energy consumption,

slightly above the EU average (25.4%). The energy consumption of the Greek industry was lower than

Source: Greek Ministry of Environment & Energy.

Source: RAE 2015 National Report to the European Commission: "At the end of 2014, 522,760 consumers were

under the Social Residential Tariff (KOT) scheme (see Table 15), compared to 412,883 consumers, which was

the corresponding number at the end of 2013 (an increase of 26.6%)".

Energy Union

–

Greece

the EU average by more than 6 percentage points, with a share in total final energy consumption of

19%.

2015 EL: Final energy

consumption

16,5 Mtoe

2015 EU28: Final energy

consumption

1084,0 Mtoe

1,5%

1,6%

other (non-specified)

agriculture/forestry/fishing

0,4%

waste

2,3%

agriculture/forestry/fishing

13,6%

services

11,3%

services

26,7%

residential

39,9%

transport

19,0%

industry

25,4%

residential

33,1%

transport

25,3%

industry

(source: Eurostat)

Whilst influenced by the share of energy-intensive industries, Greece was among the limited number

of Member States that saw an increase of the energy intensity in industry over the period 2005-2015.

At 131.75, the indicator remained in 2015 significantly above the EU average (92.14).

Final energy intensity in the services and residential sector are both below the EU average, with the

former running opposite from the decreasing trend of the EU average during the period 2005-2015

while the latter followed the trend of the EU average. Nonetheless, there is still a need to properly

implement the national energy efficiency actions and programs in order to meet the cumulative

saving requirements stemming from Article 7 of the Energy Efficiency Directive.

(source: Eurostat)

(source: Odysseedatabase)

For the period 2005-2015, the final energy consumption in Greek transport recorded an average

annual decrease of 1.9%, comparable to the 2.1% average annual GDP decrease. This was mostly

driven by the significant decrease of freight transport activity observed since the beginning of the

economic crisis, compared to the increase in passenger activity over the same period.

Energy Union

–

Greece

(source: Eurostat)

(source: Eurostatand DG MOVE pocketbook)

The share of collective passengers land transport into total passengers' transport decreased from

21.7% in 2005 to 18.6% in 2015.

(source: Eurostat)

Greece is making large investments in the railway infrastructure and has several railway projects

underway, the most important being the upgrade of Athens-Thessaloniki corridor (to be completed

in 2018) and the electrification of Athens-Patra line (up to Eghio, in 2020). As the Patras-Athens-

Thessaloniki-Promachonas (northern borders) main corridor is moving gradually closer to

completion, new strategic plans are considered for the next generation network expansions (Egnatia

Railway, Attica detour etc.).

Greece has been involved in the EU co-funded project "Costa II East - Poseidon Med", which forms

part of the TEN-T Priority Project 21, together with Cyprus, Croatia, Italy and Slovenia. COSTA II

started in December 2013, and focused on the eastern Mediterranean region/sea in order to prepare

a detailed infrastructure development plan promoting the adoption of LNG as marine fuel for

shipping operations.

Greece is also active in research and innovation within transport and has participated in a number of

Horizon 2020 Transport Research & Innovation projects, such as the E-ferry (electric ferries for

Energy Union

–

Greece

greener water transport) Optimum (developing digital solutions to improve transport mobility in

Europe) and SocialCar (a new urban network service, combining public transport with car sharing).

On the use of electric passenger cars, a number of incentives are in place exempting electric and

hybrid vehicles from registration taxes, luxury taxes and the luxury living taxes. Cars with engines up

to 1929cc are exempted from annual circulation taxes whereas cars with a higher engine capacity

pay half of the normal circulation tax rate.

5. Decarbonisation of the economy

5.1. GHG emissions

According to the national projections, non-ETS greenhouse gas emissions in Greece will decrease by

22% between 2005 and 2020. Greece will therefore achieve its 2020 greenhouse gas emission

reduction target (a 4% reduction in comparison to 2005 emission level).

(source: EC and EEA)

According to 2016 EEA estimates, the GHG intensity of Greece's economy was above the EU average,

decreasing at half the pace since 1990. In 2016, the GHG emissions per capita in Greece were slightly

above the EU average (only 2%); while in 1990 they were below the EU average by 13%.

In 2015, the largest sectors in terms of GHG emissions were the energy sector (43.9 % of total GHG

emissions) followed by industry (17.9%), transport (17.9%) and agriculture & fishery (9.3%).

Energy Union

–

Greece

(source: EC and EEA)

Preliminary accounts under the Kyoto Protocol for Greece show overall removals of 0.5 Mt CO

eq. as

an annual average in the period 2013-2015. For comparison, the annual average of the EU-28

accounted for removals of 119.0 Mt CO

eq. It should be noted that in this preliminary simulated

accounting exercise, removals from Forest Management did by far not exceed the accounting cap.

Removals by Afforestation are notably higher than emissions by Deforestation; however, removals by

Forest Management contribute the highest share. Overall, there is a no notable trend in removals;

only removals by Afforestation show minor variations. Emissions by Deforestation and removals by

Forest Management remain constant over the course of the three-year period.

Note: Forest Management credits are capped and presented as yearly averages when the total Forest

Management credits of the considered period exceed the simulated cap over the same period.

(source: EC and EEA)

emissions in transport and alternative fuelled vehicles

The average CO

emissions of new cars in Greece were in 2016 below the EU average and

significantly decreased (more than the EU average) between 2005 and 2016.

Energy Union

–

Greece

(source: European Environment Agency)

The number of electric charging points in Greece remained stable to 33 units over the last years

according to the EAFO observatory.

(European Environment Agency)

(European Alternative Fuels Observatory)

National Policy Frameworks under Directive 2014/94/EU on alternative fuels infrastructure have to

establish targets, objectives and measures for the development of the market alternative fuels in the

transport sector and the deployment of the relevant infrastructure.

To this date, no notification has been received from Greece and the Member State has failed to fulfil

its obligations under Article 3(7) of Directive 2014/94/EU.

5.2. Adaptation to climate change

Greece published its National Adaptation Strategy in 2016. No specific national, sub-national or

sectorial adaptation plans have been adopted so far. The vulnerability assessment of the major

sectors in Greece focuses at natural ecosystems and biodiversity, agriculture and food security, forest

ecosystems, fisheries and aquaculture, water resources, coastal zones, tourism, human health care,

Energy Union

–

Greece

energy, and transport. To date, there is no monitoring of the integration of climate change in

sectorial policies, nor is there a framework which assesses adaptation actions that are being

implemented.

5.3. Taxes on energy and transport and fossil fuel subsidies

The overall tax burden on energy and transport in relation to GDP has increased strongly in Greece,

from 2% of GDP in 2007 to 3.7% in 2014, thus significantly surpassing the EU average (with 1.3 p.p.).

The rise in the GDP-share is accounted for by an increase in the tax burden on transport fuels, heat

and electricity whereas taxation on transport vehicles has slightly decreased but stayed above the EU

average. Greece does not have a carbon tax in place, but the annual tax on car ownership depends

on CO2 emission performance.

Energy & Transport related taxes as % GDP

Total transport and electricity taxes [%GDP]:

2,02

[% GDP]

3,68

2,28

2,37

2007

2014

2007

2014

Heat & Electricity

Transport Vehicles

EU28

Transport Fuel

(Source: Eurostat)

(source: OECD Inventory of Support Measures for Fossil Fuels 2015)

Energy Union

–

Greece

Fossil fuel subsidies have increased sharply in Greece in the last decade. In addition to what is shown

in the graph, it can be noted that, following the 2015 Memorandum of Understanding between the

European Commission (acting on behalf of the European Stability Mechanism), the Government of

Greece, and the Bank of Greece, the country has adopted measures supporting fossil-fuel

consumption in certain sectors, such as the preferential tax treatment of diesel fuel used by farmers,

and low-income households are granted tax relief for their consumption of heating oil in order to

offset income losses.

5.4. Renewable energy

With a 15.4% renewables share in 2015 (against an indicative trajectory of 11.9% for 2015/2016),

Greece is on track to meet its 2020 renewables target (18%). In 2015, the share of renewable

electricity generation in final electricity consumption stood at 22.1% and in heating and cooling at

25.9%. However, the share of renewables in transport accounted for only 1.4% in 2015, against an

objective of 10% by 2020.

(source: Eurostat-SHARES)

Investments in renewables in Greece have been characterized by a strong growth until 2013, spurred

by a generous framework, followed by an abrupt slowdown of investments following the 2014 "New

Deal", which imposed significant retroactive/retrospective reductions in the feed-in tariffs for all

existing renewable energy projects in exchange for an extension of the duration of their offtake

agreements, and set new, reduced FITs for all new RES projects.

The adoption of Law 4414/2016 in August 2016 has contributed to improving the investment security

for new RES projects in Greece. This is something that is generally confirmed by statements from the

Greek private sector.

There remain, however, certain uncertainties with regard to the details of the new RES support

scheme (including the timing and design of tenders for allocating part of the support) which still have

to be defined at the level of the ministerial decisions as well as the amendments of the electricity

market and system codes that are foreseen by the law.

Energy Union

–

Greece

(source: Eurostat-SHARES)

Due to a consistent deployment of renewables since 2005, it is estimated that Greece avoided in

2014 about 8.4% of the fossil fuel in gross inland consumption and about 6.2% of GHG emissions at

national level

(source: EEA)

5.4. Contribution of the Energy Union to better air quality

Air quality in Greece continues to give cause for concern. For the year 2013, the European

Environment Agency estimated that about 13,730 premature deaths were attributable to fine

particulate matter (PM

2,5

) concentrations and 1,490 to nitrogen dioxide (NO

) concentrations

For both pollutants Greece reported exceedances of the binding EU air quality standards

. For the

year 2014, Greece reported exceedances of the limit value for PM

and of the limit value for NO

in 1

out of the 4 air quality zones in Greece.

Avoided GHG emissions mentioned here have a theoretical character as these contributions do not

necessarily represent 'net GHG savings per se' nor are they based on life-cycle assessment or full carbon

accounting.

European Environment Agency, 2016,

Air Quality in Europe

–

2016 Report,

table 10.2. The report also includes details as

regards the underpinning methodology for calculating premature deaths.

Energy Union

–

Greece

4,5

3,5

2,5

1,5

0,5

Air quality zones in exceedance of EU air quality standards

[number of zones]

NO2 Annual limit value PM2.5 Annual limit value PM10 Daily limit value

number of zones exceeding

number of zones not exceeding

(source: EEA)

The health-related external costs from air pollution in Greece have been estimated to be more than

EUR 7 billion/year(income adjusted, 2010), which includes the intrinsic value of living a healthy life

without premature death as well as the direct costs to the economy such as healthcare costs and lost

working days due to sickness caused by air pollution

The Energy Union can substantially contribute to addressing these air quality problems through

measures reducing emissions of both GHG and air pollutants such as PM and nitrogen oxides (NO

)

from major contributing sectors such as (road) transport, energy production, industry and residential

heating (e.g. stoves and boilers).

For Greece, no data was reported to indicate PM

2.5

and

NOx

emissions by sectors for 2015.

6. Research, innovation and competitiveness

6.1.

Research and innovation policy

Support for research, technology and innovation in Greece is based on the National Strategic

Development Plan (NSDP). The Plan includes 11 thematic priorities, of which energy is one. At the

regional level, the Greek Regional General Secretariats have some freedom to shape priorities for

research and innovation (R&I) policy within the general national policy framework.

Energy R&I funding and its thematic priorities are analogous to those of

the EU’s Fra ework

Programmes on Research: the use of renewable energy sources for electricity, fuels, heating and

cooling; hydrogen and fuel cells; clean coal technologies; smart energy networks; and energy

efficiency and conservation.

Greece is not a very active contributor to the ongoing work of the Strategic Energy Technology (SET)

Plan. Currently, it does not participate in any of the temporary working groups for the

implementation of the integrated SET Plan.

Directive 2008/50/EC of the European Parliament and of the Council of 21 May 2008 on ambient air quality and cleaner

air for Europe, OJ L 152, 11.6.2008, p.1-44

See also the EU Environmental Implementation Review Country Report for Greece, SWD(2017)41 final of 3.2.2017

Energy Union

–

Greece

Regarding the Horizon 2020 programme, Greece has received so far 2% of the EU contribution

devoted to the 'secure, clean and efficient energy' part of the programme. As of September 2017,

144 participations from Greek organisations have been awarded over EUR 36 million in Horizon 2020

energy projects. This includes a grant of over EUR 1.4 million to the Technological Educational

Institute of Piraeus for its participation in project TILOS (battery storage) and six grants totalling over

EUR 3.5 million to Greek beneficiaries participating in project WiseGRID (smart grids).

6.2. Investments and patents in the Energy Union R&I priorities

In 2011, the latest year for which data is available, public (national) investments in the Energy Union

R&I priorities reached EUR 5.6 million, having decreased by 23% compared to 2010. The highest

share of investments (38%) was attracted by the Renewables R&I priority of the Energy Union,

followed by the Smart System and Efficient Systems priorities (33 % and 20 %, respectively). The

highest public investment was EUR 7.3 million, reported in 2010. For both years, public investment

per GDP was lower than the EU average.

Private investment in the Energy Union R&I priorities in 2013 was estimated at EUR 18 million (0.1%

of the private R&I investment in Energy Union R&I priorities in the EU). The focus was on the Efficient

Systems priority, which received 59% of these investments, followed by Renewables with a share of

36%.

In 2013, the most recent year for which complete patent

statistics are available, 8 companies and

research organisations based in Greece filed 6 patents in low-carbon energy technologies (0.1% of

the EU total). The focus was on Efficient Systems (56%), followed by Renewables (39%) and the Smart

System priority (5%).

In 2013, private R&I investments and patents in Energy Union R&I priorities were lower than the EU

average when normalised by GDP and by population respectively. In the period 2007-2013, both

private R&I investments and the number of patents in Energy Union R&I priorities increased on

average by 10% and 17% per year, displaying higher average rates of increase than those at EU level

(6% and 15% respectively).

In the context of this document, the term 'patent' refers to patent families, rather than applications, as a measure of

innovative activity. Patent families include all documents relevant to a distinct invention (e.g. applications to multiple

authorities), thus preventing multiple counting. A fraction of the family is allocated to each applicant and relevant

technology.

Energy Union

–

Greece

Note: Data only available for the period 2010

–

2011.

(Data sources: Public investment as available in the International Energy Agency RD&D Statistics database

for

codes relevant to Energy Union RIC priorities. Patent data based on the European Patent Office PATSTAT

database

. Private investment as estimated by JRC SETIS. Detailed methodology available from the JRC

)

6.3. Competitiveness

In 2014, the real unit energy costs (RUEC)

in Greece were lower than the EU average by more than

2 percentage points and also significantly lower than Japan and China. RUEC has receded after

showing an upward trend in 2011, an evolution observed with most EU Member States.

In 2016, the electricity prices paid by the median industrial customer in Greece is on par with the EU

average while gas prices for the median industrial consumer is slightly below the EU and OECD

averages.

http://www.iea.org/statistics/RDDonlinedataservice/

https://www.epo.org/searching-for-patents/business/patstat.html#tab1

https://setis.ec.europa.eu/related-jrc-activities/jrc-setis-reports/monitoring-ri-low-carbon-energy-technologies

This indicator measures the amount of money spent on energy sources needed to obtain one unit of value added.

Energy Union

–

Greece

(source: ECFIN)

(source: ESTAT and IEA)

Greece appears to have had a weak competitiveness performance in wind and solar energy

technology, in both absolute terms and vis-à-vis the EU as a whole, although, as regards the latter,

the gap has diminished over time. The relative trade balance

confirms that Greece is a net importer

of solar and wind components, exceeding the EU average, but also here the differences has become

somewhat smaller over time. The revealed comparative advantage indicator

shows that Greece is

not specialised in these technologies while it has expanded in RES generation capacity.

Revealed Comparative Advantage -

RCA

absolute change 2005 - 2015:

0,18

0,5

Relative Trade Balance - RTB

absolute change 2005 - 2015:

0,30

-0,07

0,22

1,0

-0,08

0,26

-0,08

0,06

[-]

0,0

-0,5

-1,0

solar

wind

solar

wind

solar

wind

solar

wind

EU28

2005

2015

2005

2015

(source: UN comtrade)

7. Regional and local cooperation

Greece is part of the Central and South-Eastern Europe Gas Connectivity (CESEC) High-Level Group,

which was established in February 2015 by 15 EU Member States and Energy Community contracting

parties and the European Commission, in order to accelerate the integration of Central- and South-

Eastern European gas markets and diversify gas supplies, and with the understanding that prioritising

imports

2005 refers in the text to the indicator average over the 2000-2009 period, while 2015 represents the average over

the 2010-2016 period. The same applies for the RCA indicator - see below.

w is the reference group, the World economy.

The RCA index for product "i" is defined as follows:

RCA

The RTB indicator for product "i" is defined as follows:

��

−��

��

+��

��

∑ Xw,

∑ X,

Xw,

where

is the value of exports, and j is the country and

where

��

is the value of product's "i" exports and

��

Energy Union

–

Greece

a limited number of the most crucial gas infrastructure projects for the region is the best regional

strategy. The aim of the group is to coordinate efforts to facilitate cross-border and trans-European

projects that diversify gas supplies to the region, as well as to implement harmonised rules.

The EU macro-regional strategy for the Adriatic and Ionian Region in which Greece takes part can be

used as a basis for regional cooperation on energy. European Territorial Cooperation

–'Interreg' –

under EU cohesion policy also provides further opportunities for cross-border, transnational and

interregional cooperation, including in the Energy Union areas.

Cities and urban areas have a key role in the energy and climate challenge. The Urban Agenda for the

EU, established by the Pact of Amsterdam in May 2016, better involves cities in the design and

implementation of policies, including those related to the Energy Union. It is implemented through

Partnerships, in which the Commission, Member States, cities and stakeholders work together on a

number of important areas, including on Energy Transition, Urban Mobility, Air Quality, Climate

Adaptation and Housing.

By 2016, in the context of the Covenant of Mayors, the sustainable energy action plans delivered by

Greek municipalities had been assessed. Overall, these municipalities cover about 4.4 million

inhabitants representing close to 40% of the total population in Greece. All together, these

municipalities committed to reduce by 2020 the GHG emissions by 23% (as compared to 1990

baseline).

(source: JRC 2016. Notes: SEAP=sustainable energy action plan, GHG=greenhouse gas emissions)

In Greece, by September 2016, 23 cities (covering 1.04 million inhabitants) have committed to

conduct vulnerability and risk assessment and develop and implement adaptation plans in the

framework of the Covenant of Mayors for Climate and Energy.

8. Cohesion policy and EU clean energy investments

EU cohesion policy makes a key contribution to delivering the Energy Union objectives on the

ground, including important investment possibilities to implement energy policy objectives in Greece

which are complemented by national public and private co-financing, aiming at optimal leverage. It

also ensures integrated territorial solutions to energy and climate challenges, supports capacity

building and provides technical assistance.

Over 2014-2020, cohesion policy is investing some EUR 918 million in energy efficiency

improvements in public and residential buildings and in SMEs, as well as in high-efficiency

cogeneration and district heating, renewable energy and smart energy infrastructure in Greece.

Cohesion policy is also investing significantly in R&I and in SME competitiveness in Greece, based on

the national strategy for smart specialisation. For Greece, the strategy includes a focus on

sustainable energy and low-carbon economy. At this stage, at least EUR 102 million is foreseen for

investments in R&I and adoption of low-carbon technologies in Greece but this might increase

further in line with the evolving content of the smart specialisation strategy. A further estimated EUR

Energy Union

–

Greece

1,935 million is invested in supporting the move towards an energy-efficient, decarbonised transport

sector.

ERDF and Cohesion Funds allocation on energy,

low-carbon transport and low-carbon R&I

2014-2020

Total alocation [mn EUR]

1.020

2.500

2.000

1.935

[Million EUR]

1.500

1.000

500

Energy and Low-carbon R&I

Low-carbon transport

(source: DG REGIO)

These investments are expected to contribute to around 26,000 households with improved energy

consumption classification, a decrease of around 97,047,000 kWh per year of primary energy

consumption of public buildings, around 170 MW of additional capacity of renewable energy

production and 197,000 additional users of smart grids, as well as to around 130 km of new railway

lines, 300 km of reconstructed or upgraded railway lines and 40 km of new or improved tram and

metro lines. Overall, the EU cohesion policy investments in Greece over 2014-2020 are expected to

contribute to an estimated annual decrease of GHG emissions of around 103,000 tonnes of CO2eq.

For example, the LNG terminals in NeaMesimvria (Central Macedonia) and Revythousa (Attica)

contribute to energy diversification and security of supply for the country and the South-East Europe.

Both projects were co-financed in the period 2007-2013. The NeaMesimvria project increased the

capacity of the national gas system by 15.4 MW. The total eligible cost was EUR 57.4 million, of which

cohesion policy funding contributed with EUR 17.4 million. The Revythoussa project concerned the

second upgrade of the LNG terminal and the construction of a third tank (to be completed in

September 2017), aiming to increase the LNG terminal storage and output capacity by 95 000m³, to

upgrade the marine facilities to accommodate 85% larger LNG ships and the installation of additional

cryogenic equipment aiming to increase the gasification pace by 40%. This project of strategic

importance contributes to the flexibility and security in energy supply for the Greek gas transmission

system by increasing gas storage capacity by 73%. Moreover, it leads to reduction in LNG prices for

the consumers by 4% and also to improved stability of the system in terms of pressure. The total

eligible cost was EUR 165.6 million, of which cohesion policy funding contributed with EUR 61

million.

As another example, during the period 2007-2013, EUR 396 million were allocated to the programme

Energy Savings at home, out of which EUR 241 million to the Fund EXOIKONOMO (saving at home) to

improve energy efficiency in private dwellings. Following the latest data, the outputs achieved to

date are as follows: 45 403 dwellings were energy upgraded, allowing savings in primary energy of

64 824.24 tep per year and energy savings in the housing sector of 753.9 GWh, while the cuts in GHG

emissions are estimated of 541.3 kt CO2. The Fund EXOIKONOMO has been renewed for the period

2014-2020, foreseeing interventions on the energy efficiency upgrade of households (cohesion policy

support EUR 248 million) and to improve energy efficiency in public buildings in the regions (cohesion

policy support EUR 44 million).

Energy Union

–

Greece

As a further example, another major breakthrough in the energy sector in Greece is the energy

interconnection of the Cyclades Islands with the mainland grid. The project started in the period

2007-2013 and will be completed in the period 2014-2020. The first phase completed during 2007-

2013 had a cost of EUR 115.5 million, of with cohesion policy funding contributed with EUR 40.4

million. The completion of this project will allow to stabilise the energy supply to the Cyclades Islands

and, at the same time, untap the renewable energy potential of the islands.

Through its support to sustainable transport systems, the Connecting Europe Facility (CEF) also

contributes to the goals of the Energy Union. Following Greek participation in the CEF

–

Transport

2014-2015 Calls, the Greek action portfolio comprises 15 signed grant agreements, allocating EUR

618.1 million of actual CEF Transport Funding to Greek beneficiaries (state-of-play February 2017)

The transport mode which receives the highest share of funding is rail (93.8% of actual funding). The

railway actions in Greece concern two main axes: the completion of the Orient East/ Med Corridor

according to the Regulation requirements and the railway connection of the node of Thessaloniki

with the eastern part of the country along the "Rail Egnatia".

In regards to alternative fuels, the Greek beneficiaries participate in the Maritime Transport mode

through the Motorways of the Sea (MoS) actions, aiming to take all the necessary steps towards the

adoption of LNG as marine fuel in the East Mediterranean Sea. Moreover, always with the aim to

improve the environmental performance of ports and shipping lines, Greek beneficiaries participate

to the MoS wider benefit action focussing on the assessment of the possibilities to introduce onshore

power supply and electric propulsion alternative (cold ironing) for ships in the Eastern

Mediterranean.

Note that European Economic Interest Groups and International Organisations are excluded from the analysis.

Source: INEA