Measures to support Renewable Energy and Energy Efficiency Investment Projects in Greece

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1 Measures to support Renewable Energy and Energy Efficiency Investment Projects in Greece Louiza PAPAMIKROULI CRES Banska Bystrica, 24-25th April 2006

2 Formulating Energy Policy Competence of the Ministry of Development co- responsible Ministries: Ministry for Environment, Physical Planning and Public Works Ministry for Transport and Communication

3 Policy Obligations for Greece Greece s renewable/energy efficiency energy policy is driven by: Kyoto Protocol - targets that are legally binding Obligations deriving from European Community Law Overall EU target: by 2010, limit annual greenhouse gas production to - 8% below 1990 levels ( ) Target for Greece + 25 % compared to 1990 levels Energy sector in Greece + 35 %

4 The National Climate Change Programme ( ) Greece ratified the Kyoto Protocol in 2002 (Law 3017/2002) Adopted a National Programme (MEPPPW / NOA 2002) for achieving the above-mentioned commitment by a Decision of the Council of Ministers (DCM 5/2003)

5 EU legislation Directive on RES electricity (2001/77/EC) Indicative target for Greece, for the year 2010: 20.1% of gross electricity consumption, or 14.5 TWh/year, to be covered by RES (including large hydro)

6 Main actions: NCCP Main actions further penetration of natural gas in all final demand sectors including cogeneration promotion of renewable energy sources for electricity generation and heat production energy conservation in the industrial, tertiary and residential sectors promotion of energy-efficient appliances in tertiary and residential sectors structural changes in agriculture and chemical industries transport and waste management options

7 Policy Instruments Policy targets are addressed through: Legal framework Financial instruments Fiscal measures

8 Legal framework Law 2773/1999 on the liberalisation of the domestic electricity market The key provisions: The Hellenic Transmission System Operator (HTSO) is obligated to grant priority access (priority in load dispatching) to RES electricity-producing installations up to 50 MWe in power capacity (up to 10 MWe in the case of small hydroelectric units). The HTSO is obligated to enter into a 10-year contract (PPA) with the RESelectricity producer for the purchase of his electricity. The RES-electricity production of an independent power producer, or the surplus electricity production of a RES autoproducer, is sold to the HTSO at a predetermined buyback rate, which is fixed percentage of the corresponding consumer electricity rate. Every RES-electricity producer is subject to a special reciprocity charge (annual fee), specified by a joint decision of the Ministers of Finance and Development, and equal to two-percent (2%) of the producer s electricity sales to the grid. This charge is collected by the HTSO and is given to the Local Authority, within the area of which the RES generation unit operate, for the purpose of realising local development projects.

9 Legal framework (2) Law 2941/01 supplemented Law 2773/99 with certain important provisions about renewables the definition of the general terms and conditions, under which it is allowed to install RES stations in forests and forestry lands The characterisation of all RES projects as projects of public utility status, which gives them the same rights and privileges in land expropriation procedures as those given to public works, independently of the legal status of the RES project owner (being private or public)

10 Legal framework (3) Law 3010/02 specified the general terms, procedures and requirements for obtaining the necessary environmental licenses for any investment project (including RES projects)

11 New RES Provisions (1) New draft Law for the Promotion of Electricity Generation from Renewable Energy Sources Adoption of EU Directive 2001/77/EC Simplification of the Licensing Procedure regarding the construction and operation of RES-e systems Authorisation for all required Licenses within 6 months instead of 3-4 years Special focus on the promotion of PV technologies Special focus on CHP

12 New RES Provisions (2) Law 3423/2005 Introduction of Biofuels in the Greek Market Adoption of EU Directive 2003/30 National Target set at 5.75% by 2010 Authorisation for the Production and supply of Biofuels

13 EU legislation - Energy Efficiency Directive on energy performance of buildings (to be transposed soon) Directive on promotion and development of high efficiency co-generation of heat and power (under adoption) Directive on the certification of boilers and the labelling of household appliances. A number of directives on energy efficiency standards Directives relevant to transport

14 Main financial instruments The Greek Operational Programme for Competitiveness The National Development Law

15 Operational Programme for Competitiveness (OPC) OPC -partially funded by the 3rd Community Support Framework ( ) 48% of the total resources or 41% of the public expenditure of OPC is directed in the energy sector Targets: the contribution of the energy sector in the competitiveness of the Greek economy the protection of the environment and the contribution to the targets set by the Kyoto protocol for greenhouse gas emissions reduction as well as the objective for increasing the share of RES in electricity generation to 20% by 2010 the contribution to the security of energy supply in Greece and in the EU the adaptation of the Greek Energy system to the conditions of the liberalised market the coverage of the energy needs of the isolated areas of the country, and in particular non-interconnected islands

16 OPC - Technologies Subsidizing (by ~30%) energy investments. Total budget for these activities under OPC is 1,072 million of which 382 million is public funds, with a forecast of primary energy savings at 975 ktoe/year. Technologies Supported : RES (including the transmission grid) Energy Efficiency CHP in industry

17 Development Law 3299/04 (Law 2601/98 & modif.) Law 3299/2004 managed by the Ministry of Economy and Finance It subsidises industrial and tertiary sector activities relative to : Power generation, in the form of warm water, steam Production of solid fuels from biomass Cogeneration of electricity and heat Energy production from renewables, especially wind and solar hydroelectric, geothermal energy and biomass Environmental protection and waste disposal projects

18 Tax and other fiscal measures Law 3296/2004 Corporate and income tax, tax audits and other provisions (OG A 253) provides incentives to promote the use of natural gas and renewable energy sources through a 20% reduction of taxable income on the expenses for the purchase and installation of domestic appliances or systems using natural gas or renewable energy sources for the whole residential or tertiary sector.

19 CRES contribution The Centre for Renewable Energy Sources was founded in 1989 Main agent of the Greek Government for the implementation of RES, RUE and EE policies

20 CRES - Two directions National Energy Centre In support of : Policies Formulation Investment programmes management Energy planning Dissemination Energy Research Centre Research and Applications regarding : New and Renewable Energy Technologies Energy Efficiency Technologies

21 Looking Ahead Improving permitting procedure for RES Increasing the penetration of CHP Improving energy efficiency in tertiary and households Implementing demand side management CRES is expected to play a key role in terms of planning, policy formulation and investments management.

22 Contact Centre for Renewable Energy Sources 19th km Marathonos Avenue Pikermi Greece Attn: Ms Louiza PAPAMIKROULI Tel: F: