1. Investigation of the Greek Wind Energy Market Time-evolution: 1987-2014 D ipl. Eng. Konstantinos Gkarakis Energy Engineer MSc, TEI Athens/Energy Technology Engineering Dept. e-mail: ape@teiath.gr Dipl. Eng. Konstantinos Loukidis Energy Engineer, Project Manager, ENTEKA S.A. Dr. Anastasios Antonakos General Manager, NanoDomi 8th International Scientific Conference - Energy and Climate Change

2. 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

3. European Union

4. Greek wind energy market

6. 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

7. 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.

8. 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

9. 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

10. The key market players

11. Environment Wind energy is one of the cleanest, most environmental friendly energy source.

12. Environment The wind offers secure, reliable and cheap energy.

13. In Greece…. The direct economic benefit of National Economy from reduction of CO2 is 38,6 mil. Euro per year (10 Euro per tn)

14. 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).

15. Economy and society

16. 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 !

17. 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 ….

18. 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

19. The way to 2020…

20. 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

21. The way to 2020… 2070

22. 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 2014- 2020)

23. 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.

24. Thank you!