20020930-IEA-Energy_Policies_of_IEA_Countries_Greece_2002_117页_2mb

IEA Energy Policies of Greece 2002 Review Summary

Key Findings

• Energy Security: Greece depends heavily on imported energy (especially oil) and has limited domestic resources. Lignite is the primary domestic fuel but contributes to environmental issues (CO₂ emissions and air pollution). Diversification of supply sources and energy mix is a priority.
• Market Liberalization: Progress has been made, with the establishment of the Regulatory Authority for Energy (RAE) and partial opening of markets (
  electricity and gas). State-owned enterprises (e.g., PPC and DEPA) retain significant influence, limiting true competition.
• Environmental Impact: High GHG emissions (nearly 23% above 1990 levels by 2000), driven by energy intensity and reliance on lignite. Renewable energy (RES) potential is limited by regulatory and infrastructure barriers.
• Energy Efficiency: Greece's energy intensity is above IEA Europe averages and is rising. Potential for improvement exists, but policy focus remains on supply-side solutions (e.g., renewables subsidies).

Recommendations

1. Diversify Energy Sources: Expand gas infrastructure, increase RES deployment (e.g., wind/solar), and reduce oil dependency.
2. Liberalize Markets: Deepen energy market reform, ensure non-discriminatory third-party access to grids, and phase out cross-shareholding among energy companies.
3. Enhance Energy Efficiency: Adopt market-oriented tools (e.g., green certificates), prioritize demand-side measures, and revise energy price policies to reflect environmental costs.
4. Strengthen Environmental Policy: Align GHG reduction targets with global commitments (e.g., Kyoto Protocol) and explore economic instruments like emissions trading.
5. Stable Institutional Framework: Separate regulatory and policy-making roles (RAE from Ministry), ensure transparent stock management for oil, and modernize energy statistics.

Critical Challenges

• Resource Constraints: Limited RES potential and reliance on lignite create contradictions between economic and environmental goals.
• Ineffective Governance: Over-reliance on subsidies, lack of coordination among institutions, and delayed market reforms hinder efficient energy deployment.
• Carbon Growth: Despite renewables growth, GHG emissions remain high, with insufficient policy urgency and investment in low-carbon technologies.

Sources: IEA 2002 Review, National Observatory of Athens, Energy Balances of IEA Countries (2001).