Transcript “Investigation of the Greek Wind Energy Market

8th International Scientific Conference - Energy and Climate Change
Investigation of the Greek Wind Energy Market
Time-evolution: 1987-2014
Dipl. Eng. Konstantinos Gkarakis
Energy Engineer MSc, TEI Athens/Energy Technology Engineering Dept.
e-mail: [email protected]
Dipl. Eng. Konstantinos Loukidis
Energy Engineer, Project Manager, ENTEKA S.A.
Dr. Anastasios Antonakos
General Manager, NanoDomi
Introduction
• Wind energy is a solution for climate change combat
• Improve energy security
• Boost economic development and competitiveness
(even in times of austerity)
In the EU : Annual Installed capacity from 3.2GW (2000)
11 .8 GW (2014)
• Cumulative EU installed capacity : 128.8 GW
• 10,2% EU electricity consumption
• Continuation of decommissioning of conventional power
plants
European Union
Greek wind
energy market
Greek wind
energy market
4 different phases
A. 1987 – 1998
Electricity sector maturation – introduction of FiT –
IPP
• Immaturity of wind industry – 39MW capacity
• 1982 : Establishment PPC-Alternative Energy Sources Dept.
• 1983 : Kythnos Windfarm 75kW – first commercial in
Europe
• Initial framework for electricity from RES. Municipalities,
OTE, PPC, privates. Limited success.
• L. 2244/1994, allowed IPPs
• FiT Law similar to Germany’s Law
• IPP had the obligation to sell to PPC on the basis of
regulated PPA
• First Private windfarm have constructed between 1997-8
4 different phases
B. 1999-2005
Electricity sector reformation
• First steps of maturity – 603MW
• The liberalization of Greece’s electricity sector started
(Laws 2773/1999 and 3175/2003)
• Completion of wind energy projects was delayed between
2001-4 due to reforming and reconstructing of the
electricity sector.
4 different phases
C. 2006 – 2011 – The Golden Age
Promotion of wind energy – legislation reform
• 1637MW capacity
• Positive legislative changes, new FiTs
• National target of 20,1% of net domestic power consumption
by Law 3468/2006
• Special Spatial Framework for RES – useful guidelines
• Law 3851/2010 – 2020 national targets (7.5GW wind energy
capacity)
• Laws 3851/2010 and 4014/2011 and the establishment of
new Ministry of Energy and climate change
4 different phases
D. 2012 – today
Financial crisis
• 1980MW capacity (end of 2014)
• PV capacity explosion – new activity area for RES investors
• Reduction of new and existing tariffs (-10% refund to
Market Operator – LAGIE, light haircut on FiTs, 7 year
extension of PPA – Law 4254/2014 known as “New Deal”)
• Continuous delays in payments of RES producers
• Political uncertainty – fear for GREXIT
• Capital controls
• Frozen of activities – waiting for the recapitalization of local
banks and the new RES framework in the end of 2015
The key market
players
Environment
Wind energy
is one of the
cleanest,
most
environmental
friendly
energy source.
Environment
The wind offers secure, reliable and cheap energy.
In Greece….
The direct economic benefit of National Economy
from reduction of CO2 is 38,6 mil. Euro per year
(10 Euro per tn)
Economy and
society
• Reduces the exposure of the economy to fuel price volatility
• Avoids the costs which society now bears in the form of
pollution and fuel import.
• Positive impact to the economy of wider region of the WF.
• Does not affect existing land uses (mostly livestock)
• Important guaranteed sources for local
communities/Authorities (3% of income in Greece – appr.
12,5 mil Euro in 2014).
• Creation of jobs locally (1800 person in 2008 in Greece
based on EWEA report).
Economy and
society
National targets
• In 2010 State endorsed National Action Plan
for RES :
20% of primary energy will be come from RES
• For electricity sector wind energy will be
major factor – 7,5 GW for 2020 and
intermediate target 4,0GW (2014) – (was
appr. 2,0GW), 50% deflection!
• Based on the average of installation of wind
capacity from 1987 to 2014 (71MW per year) it
is needed 78 years to reach 2020 targets.
HAPPY 2098 !
Main barriers
• Financing and cash management problem of
electricity market
• Sustainability of Special Account RES
• New legislation on the mechanism of support
of new investments RES
• Infrastructures
• Political turn to statism, controversy to
electricity market liberalization, main factor of
PPC ….
The way to 2020…
• New Guidelines on State Aid for
environmental protection and energy for
2014-2020
• Aim to better integration of RES into the
internal market
• Transition from FiT to competitive bidding
gradually for new installations
• New support scheme rolled out by 1/2016
The way to 2020…
The way to 2020…
• EWEA gives from July 2014 three scenarios
for installed capacity of 2020:
- low: 3000 MW
- central: 4500 MW
- high: 5000 MW (2/3 of National Target…)
• Research team gives its prediction living and
working in this market :
- 2500 MW in 2020 (1/3 of National Target)
lower than low scenario due to banks closing
for 3 weeks, capital control and Governmental
policies
The way to 2020…
2070
Conclusions - Proposals
• The way of installation wind capacity in Greece
is clearly lower than the other European
countries and the national targets
• The political and economic instability, the
danger of the Grexit and the capital controls are
additional factors of the existing legislative,
licensing and infrastructure barriers for the
further development of wind energy market
• It is needed to be updated the process for the
completion of the legislation governing the
market of electricity and the presentation of an
updated time schedule for the way to the Target
Model (New guidelines on State Aid for 20142020)
Conclusions - Proposals
• Political will, economic stability with long-term
support scheme for RES
• A National Program of Technological
Development in RES especially in Wind Energy.
Target will be the maximization of the local
added value.
• Finally, State should compose a new energy
planning for the next 30 years taking into
consideration the energy market and the needs
of society. This planning must not commit the
country to the dark future of fossil fuels but to
offer competitive clean energy choices,
renewable sources (such as wind energy) and
energy saving.
Thank you!