Πέμπτη 2 Ιουλίου 2015

Greek Energy Market: Current Status and Perspectives


Recent government change in Greece has initially affected the country’s energy sector by postponing privatization plans and investigating alternative supply routes for oil and gas. On the other hand, international treaties and EU policies are still fundamental for the Greek energy strategy towards a transition to a competitive, secure and sustainable energy system that reduces significantly greenhouse gas emissions over the next decades.

The Greek electricity sector is characterized by an increasing contribution of renewables in the energy mix (17% 2014 vs 3% 2008) based on a Feed-in-Tariff scheme;  combined with a decreasing penetration of gas fired units (13% 2014 vs 23% 2008). On the oil sector, limited supply options for crude restrict refining alternatives while severe taxation (more than 60% of fuel price) increase pump prices with a negative effect on local demand. Finally, natural gas is mainly consumed in the power generation sector (c.70%) instead of household consumption. It is a fragile market depending only on gas imports purchased at the different points of entry (2 pipelines and 1 LNG terminal) heavily depending on Russian natural gas (more than 65%).

The goal for the Greek Energy Market should be to ensure its stability, the creation of a transparent regulatory regime and an energy shift to develop new energy sources, particularly in renewables. Efficient energy and use, public awareness and acceptance, diversity of supply, low energy costs and environmental protection can tackle current economic crisis and fuel the Greek energy future.

 Spyros Kiartzis, PhD, Electrical Engineer & Economist

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