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Biomass energy policy in Greece

General
In Greece the most important contribution to renewable energy regards the generation of electricity by large hydropower. The country has been an early mover in solar thermal energy, and is still among the countries with a high penetration of solar thermal.

The Greek Renewable Energy Source Act (Law 3468/2006) is in place as of 2006, focusing on simplification of the permitting system for the RES investments in Greece, and also the definition of electricity feed-in-tariffs system, applicable for the sales of RES-produced electricity to the grid. The tariffs are adjusted annually for inflation and/or increases in retail electricity prices

Next to the system of feed-in tariffs renewable energy projects may be financially supported in the framework of the National Development Law 3522/2006, through tax exemptions or direct project subsidies (ranging form 34% to 55% and up to a maximum of 20 million euro).

Special point of attention is the hybrid system for the storage of RES produced electricity in the non-interconnected islands.

According to the draft Directive of the European Parliament and of the Council on the promotion of the use of energy from renewable sources the target for the share of energy from renewable sources in gross final consumption of energy in the year 2020 for Greece is 18% (in the year 2005 the share was 6.9%) (European Parliament legislative resolution of 17 December 2008).

Renewable energy projections according to the National Renewable Energy Action Plan for Greece
The National Renewable Energy Action Plan (NREAP) for Greece was submitted in July 2010. The target according to Annex I of Directive 2009/28/EC is 18% for the year 2020 and the projected NREAP share in that year exactly matches the target. According to the projection, the most important contribution in the year 2020 is expected from wind power (16.8 TWh or 1444 ktoe, 33% of all renewable energy). Second important contribution is expected from biomass (renewable heating and cooling) (1222 ktoe, 28% of all renewable energy). The third largest contribution is from hydropower (6.6 TWh or 565 ktoe, 13% of all renewable energy). Wind power contributes in the year 2020 with onshore wind (7.2 GW and 16.1 TWh) and offshore wind (0.3 GW and 0.7 TWh). For solar photovoltaic the 2020 contribution is projected to be 2.2 GW (2.9 TWh). For solar thermal the 2020 contribution is projected to be 355 ktoe. The two most important biofuels are projected to contribute 203 ktoe (biodiesel) and 414 ktoe (bioethanol / bio-ETBE) by 2020. The renewable electricity production from solid biomass amounts to 0.4 TWh (31 ktoe) and for biogas it is expected to be 0.9 TWh (77 ktoe). The consumption of renewable heat is expected to amount to 1222 ktoe for solid biomass and is not specified for biogas.

Renewable heat and electricity: biomass
The installed renewable capacity in Greece importantly increased in the year 2007, and is expected to continue to increase during 2008. The acceleration is due to: long lead-times of project initiated in the period 2001-2004, which is mainly due to institutional reforms in the power sector. Also, the simplifications of investment regime compared to the previous era and the abolishment of administrative barriers during 2003-2004 are reason for this increase. Finally, the revision of the licensing regime and the widening of the time frame of the power supply contracts has helped (Law 3468/2006).

The feed-in tariffs are adjusted annually for increases in retail electricity prices and/or the inflation rate. An overview of the feed-in tariffs for biomass is provided in the table below.

An overview of the feed-in tariffs for wind power is provided in the table below.

	Onshore wind power			Number of years
	2006	2007	2008		Unit
Greece - interconnected system	7.3	7.6	n/a	20	€c/kWh
Greece - island grid	8.5	8.7	n/a	20	€c/kWh

Source: Ministry of development, Directorate general for energy, Renewable energy sources and energy saving directorate, Hellenic republic (http://www.ypan.gr, sourced January 2008)

Furthermore, the Investment Incentives Law 3299/2004, modified by law 3522/2006, Article 37, being valid for the period 2007-2013 emphasises regional convergence and on the provision of important incentives for new investment projects. Renewable energy investments are supported as technology changes and are not the main purpose of the law. Percentage varies with size of investing company as well as the region of the country, ranging from 20% to 40%.

Future programme changes expected
No information available.

Sources

Ministry of Economy and Finance, http://www.mnec.gr/en/metarithmisi/investment, (sourced August 2008)

Interactive EurObserv’ER Database, http://www.eurobserv-er.org (status 2007)

Ministry of development, Directorate general for energy, Renewable energy sources and energy saving directorate, Hellenic republic, 4th National Report Regarding The Penetration Level Of Renewable Energy Sources Up To The Year 2010, Athens, October 2007. Download at http://www.ypan.gr/docs/D.T.(14-12-07)4th%20National%20Report%20RES.doc (Sourced January 2008)

Ministry of development, Directorate general for energy, Renewable energy sources and energy saving directorate, Hellenic republic, Law 3468/2006, Generation of Electricity using Renewable Energy Sources and High-Efficiency Cogeneration of Electricity and Heat and Miscellaneous Provisions (Official Gazette A’ 129/27.06.2006). Download at http://www.ypan.gr/docs/LAW_3468-2006__RES.doc (Sourced January 2008)

The National Renewable Energy Action Plans (NREAPs) are all published on the Transparency Platform on Renewable Energy: http://ec.europa.eu/energy/renewables/transparency_platform/action_plan_en.htm (sourced July - December 2010)

Renewable Energy Projections as Published in the National Renewable Energy Action Plans of the European Member States, http://www.ecn.nl/nreap (sourced December 2010)

Interactive EurObserv’ER Database
http://www.eurobserv-er.org
Last update: December 2010

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