COMMISSION STAFF WORKING DOCUMENT Energy Union Factsheet Greece Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN INVESTMENT BANK Third Report on the State of the Energy Union
Date: 2017-11-23
Institutions: European Commission, Secretariat-General
Subjects: Greece, climate change policy, competitiveness, economic and social cohesion, energy cooperation, energy policy, innovation, investment, regional cooperation, single market

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 23.11.2017 SWD(2017) 392 final  COMMISSION STAFF WORKING DOCUMENT Energy Union Factsheet Greece  Accompanying the document  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN INVESTMENT BANK  Third Report on the State of the Energy Union  {COM(2017) 688 final} - {SWD(2017) 384 final} - {SWD(2017) 385 final} - {SWD(2017) 386 final} - {SWD(2017) 387 final} - {SWD(2017) 388 final} - {SWD(2017) 389 final} - {SWD(2017) 390 final} - {SWD(2017) 391 final} - {SWD(2017) 393 final} - {SWD(2017) 394 final} - {SWD(2017) 395 final} - {SWD(2017) 396 final} - {SWD(2017) 397 final} - {SWD(2017) 398 final} - {SWD(2017) 399 final} - {SWD(2017) 401 final} - {SWD(2017) 402 final} - {SWD(2017) 404 final} - {SWD(2017) 405 final} - {SWD(2017) 406 final} - {SWD(2017) 407 final} - {SWD(2017) 408 final} - {SWD(2017) 409 final} - {SWD(2017) 411 final} - {SWD(2017) 412 final} - {SWD(2017) 413 final} - {SWD(2017) 414 final}  
 
 
Energy Union – Greece 

Greece 
                          Energy Union factsheet1 

1.  Macro-economic implications of energy activities  

Energy and transport are key sectors for the overall functioning of the economy as they provide an 
important input and service to the other sectors of the economy. Together the activity in these two 
sectors2 accounted for 9.3% of the total value added of Greece in 2015. Similarly, their share in total 
employment3 was 5.0% of total employment in 2015, of which 4.6% in the transport sector and 0.4% 
in the energy sector. 

(source: Eurostat) 

According  to  EurObserv'ER,  in  2015,  the  share  of  direct  and  indirect  renewable  energy  related 
employment in total employment of the economy in Greece was at about 0.37%. The turnover of the 
renewable  energy  industry  in  the  same  year  was  estimated  at  around  EUR  1.07  billion,  more  than 
half  being  attributed  to  the  biomass  and  wind  (25.5%  and  29.3%  of  total  renewable  turnover 
respectively) followed by solar thermal (21.4%) and biofuels industries (13%). 

1 The indicators used in this country factsheet largely build on indicators developed for the Commission Staff 
Working Document "Monitoring progress towards the Energy Union objectives  – key indicators" (SWD(2017) 
32 final) https://ec.europa.eu/commission/sites/beta-political/files/swd-energy-union-key-indicators_en.pdf  
2Gross value added and employment in NACE sectors D-Electricity, gas, steam and air conditioning supply and 

H-Transportation and storage 

3National Accounts, Eurostat 

1 

02468101214162005201520052015ELEU28[%]Value added of the sector as % of total economy gross value added EnergyTransport9,619,346,646,88Energy&Transport as % of total GVA:0123456789102005201520052015ELEU28[%]Employment in the sector as % of total employmentEnergyTransport5,114,975,575,46Energy&Transport as % of total employment: 
 
 
 
 
 
                                                            
 
Energy Union – Greece 

(source: EC based on Eurobserv'Er and Eurostat) 

The  decarbonisation  of  the  energy  and  transport  sectors  will  require  significant  investments  and 
economic  activity  beyond  the  remit  of  these  sectors  themselves.  The  energy  transition  implies  a 
structural  shift  in  economic  activity.  Energy-related  investment  and  jobs  will  in  part  migrate  from 
traditional  fossil  fuel  based  activities  towards  construction,  equipment  manufacturing  and  other 
services related to the deployment of low carbon and clean energy technologies. At the moment, the 
efforts related to the low-carbon and clean energy transition in sectors beyond energy can only be 
partially quantified and are therefore not included in this analysis.  

An  indication  of  the  level  of  efforts  and  challenges  encountered  by  Greece  in  the  energy  sector  is 
given  by  the  Gross  Fixed  Capital  Formation  (GFCF)4.  Investments  in  the  electricity  and  gas  sectors, 
which  are  taken  as  reference  sectors,  have  represented  around  0.2%  of  the  country's  GDP  in  the 
period  2011  -  2015,  a  fall  compared  to  the preceding years  where  these investments  were  around 
0.4%. 

(source: Eurostat) 

4  Gross  fixed  capital  formation  consists  of  resident  producers´  acquisitions,  less  disposals,  of  fixed  tangible  or  intangible 
assets. This covers, in particular, machinery and equipment, vehicles, dwellings and other buildings. It also includes foreign 
direct  investment  (FDI).  Steam  and  air  conditioning  supply  are  also  included  in  the  figures  mentioned  above  as  Eurostat 
reports electricity, gas, steam and air conditioning supply together. 

2 

0,0%0,1%0,1%0,2%0,2%0,3%0,3%0,4%0,4%0,5%2006200720082009201020112012201320142015[% GDP]GFCF in energy as share of GDP, Greece**GFCF=Grossfix capital formation 
 
 
 
 
 
                                                            
Energy Union – Greece 

In terms of trade, Greece is a net importer of fossil fuels and electricity. The trade deficit in energy 
products has fallen from about 3.5% of GDP in 2006 to 2.1% in 2015 and has thus become close to 
the deficit  level  for  the EU as  a  whole. The decrease is  fully  accounted for  by  petroleum  products, 
whereas the numerically much smaller trade deficits for gas and electricity have increased somewhat 
over time, reflecting the ongoing structural change in Greece's energy mix. 

(source: Eurostat) 

2. Energy security, solidarity and trust 

2.1. Energy Mix 

The  energy  mix  of  primary  products  in  Greece  shows  some  differences  compared  to  the  EU28 
average,  i.e.  by  a  higher use  of  petroleum and  solid  fuels  (52.8%  and  23.7%  respectively  versus  an 
EU28 average of 34.4% and 16.2%), while a lower use of natural gas (11.3% versus an EU average of 
22%) and no nuclear.  

 (source: Eurostat) 

3 

-10,0-8,0-6,0-4,0-2,00,02,04,02006201520062015ELEU28[% of GDP]Trade balance of energy product and current  account balanceGasOilCoalElectricity-3,46-2,13-2,24-1,69Trade balance of all energy products [%GDP]:2015 EU28: Energy mix*wastenuclearrenewablesnatural gasoilsolid fuels0,8%13,6%13,0%22,0%34,4%16,2%1627,5MtoeGIC -total:GIC -energy mix*1626,2Mtoe2015 EL: Energy mix*wastenuclearrenewablesnatural gasoilsolid fuels0,4%0,0%11,7%11,3%52,8%23,7%24,4MtoeGIC -total:23,6MtoeGIC -energy mix*:*energy mix as share share in GIC-excluding electricity and derivedheat exchanges ,GIC=gross inland consumption 
 
 
 
 
 
 
 
 
Energy Union – Greece 

2.2. Import dependency and security of supply 

Import  dependency in Greece remains  above  EU  average  for  all main  fossil fuels  and  in the period 
2005  to  2015  increased  by  3.3  percentage  points,  more  than  the  1.9  percentage  points  increase 
observed  on  average  at  EU  level.  When  it  comes  to  natural  gas  and  petroleum  products,  the 
dependency increased over the same period. In 2015, Greece imported 61.6% of its gas (significantly 
higher than the average share at the EU level), almost 20% of its crude oil and about 64% of hard coal 
from Russia.  

(source: Eurostat) 

The importance of security of supply was highlighted in January 2017, when DEPA (the Greek Public 
Gas Corporation) was forced to make several extraordinary LNG orders to deal with the exceptionally 
high  gas  demand  --triple  the  usual  amount,  and  avoid  a  collapse  of  the  system.  The  planned 
construction of the Trans Adriatic Pipeline, as part of the Southern Gas Corridor, is set to significantly 
improve the diversification of its gas supplies. 

From  all  energy  sources,  natural  gas  is  the  one  which  generates  most  concern  about  security  of 
supply, not least because its important role in the heating of homes and the disruptions experienced 
in  recent  years.  The  security  of  gas  supply  regulation  requires  that,  if  the  single  largest  gas 
infrastructure  fails  in  one  Member  State,  the  capacity  of  the  remaining  infrastructure  is  able  to 
satisfy total gas demand during a day of exceptionally high gas demand. Greece complies with this 
rule. 

4 

54,0%71,7%69,1%99,9%88,4%101,5%64,1%91,4%0%40%80%120%EU28ELEU28ELEU28ELEU28ELtotal energycarriersnatural gascrude oil and NGLhard coalImport dependency200520151,9%3,1%12,0%0,8%7,2%6,3%8,4%-8,6%absolute change 2005-2015 [pp]ELEU28ELEU28ELEU28RussiaRussiaIraqRussiaRussiaRussia61,6%37,3%45,1%28,8%64,2%29,1%TurkeyNorwayRussiaNorwayUkraineColombia19,4%32,8%19,9%12,4%18,7%24,3%AlgeriaAlgeriaKazakhstanNigeriaSouth AfricaUnited States11,7%10,7%14,1%8,3%17,1%16,0%*share in total imports for the MS and in total non-EU imports for the EU282015: Top non-EU suppliers for main energy carriers* Natural gasCrude oil and NGLHard coal108,8%N-1 rule for gas2016threshold 100%EL 
 
 
 
 
 
Energy Union – Greece 

(source: gas coordination group) 

3. Internal market 

3.1. Interconnections and wholesale market functioning 

3.1.1. Electricity 

(source: EC services based on ENTSOE         source: EC services based on Eurostat            source: EC services based on Platts 
and European power exchanges) 

The  interconnection  level5  for  electricity  was  10.6%  in  2017.  The  implementation  of  further 
electricity-related projects should help Greece to strengthen its interconnections. 

Linked to the gas supply crisis mentioned above, the Greek energy system faced significant problems 
in  January  2017  when  the  country’s  electricity  network  nearly  collapsed  on  two  occasions  and 
blackouts  were  averted  only  at  the  last  minute.  The  electricity  and  gas  infrastructures  found 
themselves  functioning  under  extreme  conditions  when  demand  soared  for  many  days  in  sub-zero 
temperatures.  The  market’s  failure  to  reflect  the  high  demand  amid  energy  crisis  conditions  in 
natural  gas  and  electricity  prices  resulted  in  ruling  out  imported  electricity  and  at  the  same  time 
prompted electricity exports to foreign markets. 

In  terms  of  market  concentration,  Greece  was  among  the  Member  States  that  saw  the  most 
significant decreases in concentration levels (56.6%). 

However,  there  is  no  true  level  playing  field  with  the  incumbent  (PPC)  still  having  a  dominant 
position. The Greek government has committed to reduce the market shares of the incumbent. The 
already introduced electricity auction will be complemented by structural measures to this effect. 

5 The interconnectivity level is calculated as a ratio between import interconnection and net generation capacities 
of the country (i.e. the 2017 value is the ratio between simultaneous import interconnection capacity [GW] 
and net generating capacity [GW] in the country at 11 January 2017, 19:00 pm as resulted from ENTSO-E 
Winter Outlook 2016/2017). 

5 

 
 
 
                                                            
Energy Union – Greece 

In Greece, wholesale prices showed a slight increase in the period 2013-2016 (3.3%). Electricity prices 
were  fully  liberalised  in  July  2013  but  no  effective  entry  into  the  market  has  taken  place;  the 
incumbent electricity company remains the dominant supplier as a result.  

3.1.2. Gas 

Greece was among the numerous Member States that saw an increase of its market concentration 
for wholesale gas supply (24.5%). This could be presumably driven by a growing reliance on Russian 
gas.  

Between 2013 and 2016, Greece was among the Member States that saw the most significant price 
decreases (-53.9%), placing it below the EU average in 2016. The development of estimated border 
prices suggests that during 2015 the pricing of Russian gas shifted from oil-indexation towards hub-
based pricing. 

Greece has made significant steps towards a full liberalisation of its gas retail markets. All consumers 
are now eligible, except households which will become eligible in 2018. The previously existing gas 
supply monopolies have been abolished and supply and distribution unbundled.  

Once  implemented  fully,  this  will  make  it  possible  for  Greek  end-consumers  to  benefit  from  the 
increased gas-to-gas competition from LNG and the Trans-Adriatic Pipeline (TAP). 

This pipeline is an interconnector (approx. 870 km long) between Komotini in Greece and the region 
of  Puglia  in  Italy  (via  Albania).  TAP  aims  at  transporting  gas  produced  mainly  from  the  Phase  II 
development of the Shah Deniz field in the territory of the Republic of Azerbaijan. TAP has officially 
started the construction in May 2016 and is estimated to be completed by 2020.  

While an interconnection with Bulgaria through the reverse flow in Kulata-Sidirokastron is possible 
since mid-2016, several projects are currently planned to further enhance supply opportunities and 
connections  with  its  direct  neighbours.  This  is  most  notably  the  case  with:  1)  the  upgrade  of  the 
existing  LNG  terminal  (in  the  location  of  Revithoussa,  expected  to  be  available  in  the  first  half  of 
2018)  and  the  development  of  a  new  one  in  Alexandroupolis,  2)  the  Interconnector  between 
Komotini  in  Greece  and  Stara  Zagora  in  Bulgaria  and,  potentially,  3)  the  IGI  Poseidon  from  Turkey 
and/or the East-Mediterranean area with the upgrade of the compressor station in Kipi. 

6 

 
 
 
 
Energy Union – Greece 

(source: ACER for the left graph and EC services based on Platts, gas hubs, Eurostat for the right graph) 

3.2. Retail electricity and gas markets 

3.2.1. Electricity 

While in 2015 on average 6.3% of household consumers in the EU changed their electricity suppliers, 
supplier switching in electricity is largely absent in Greece as demonstrated by a declining rate that 
reached only 0.3% in 2015.  

In  2015,  households'  electricity  prices  in  Greece  were  below  the  EU  average.  Between  2013  and 
2016, average band retail electricity prices for households increased by 1.5%.  

This  can  be  partially  explained  by  an  increase  in  taxes  and  levies  from  29.7%  in  2013  to  31.2%  in 
2016. Retail prices in Greece also include a public service obligation levy to recover the higher cost of 
power generation in the non-interconnected islands. 

(source: ACER) 

(source: Eurostat)  

(source: Eurostat) 

3.2.2. Gas 

Greece continues to have a zero switching rate for gas. At present, the gas network is geographically 
limited; distribution and supply of natural gas to retail consumers is done by three companies (called 
EPAs)  for  the  regions  of  Attica,  Thessaloniki  and  Thessalia,  and  there  are  no  alternative  suppliers. 
DEPA,  the  incumbent  natural  gas  importer  and  supplier,  supplies  natural  gas  to  these  three  local 
monopoly  distributors.  Since  the  beginning  of  2017,  only  those  non-household  customers  with  an 
annual  consumption  of  greater  than  2.2  GWh  are  eligible  to  select  their  supplier  of  gas  in  the 

7 

 
 
 
 
 
 
 
 
 
 
 
Energy Union – Greece 

currently EPA-served regions in Greece. As of January 20186, all customers, including households, will 
become eligible irrespectively of consumption level.  

Greece was among the limited number of Member States that saw a decrease of its household gas 
prices  by  26.6%  between  2013  and  2016,  mainly  as  a  result  of  reduced  gas  import  prices,  bringing 
them very close to the EU average.  

The share of taxes and levies in the retail gas prices paid by household customers is lower than for 
electricity. While the share showed an upwards trend, reaching 20.2% in 2016, it remained below the 
EU average by more than 6 percentage points.  

(source: ACER) 

(source: Eurostat)  

(source: Eurostat) 

3.2.3. Market performance indicators 

According to the survey of DG JUST, Greek consumers are less satisfied than the EU average about 
the services received on energy retail markets. Electricity services, despite having improved most (by 
5.5 points) since 2013 compared to other services, are in the bottom three markets at national level 
in terms of performance. Consumer satisfaction related to retail electricity services in fact decreased 
between  2010  and  2015,  further  widening  the  difference  with  the  EU  average  by  more  than  5 
percentage points.  

The  opposite  trend  was  observed  concerning  retail  gas  services,  where  consumer  satisfaction 
increased  in  the  period  2010-2015,  bringing  it  much  closer  to  the  2015  EU  average.  It  should  be 
noted that Greek consumer satisfaction for gas was above the EU average in 2010. 

6  According  to  national  law  4001/2011  as  amended  by  law  4336/2015  (FEK  A  94/14.08.2015)  and  law 

4337/2015 (FEK A 129/17.10.2015). 

8 

 
 
 
 
 
 
 
 
 
 
 
                                                            
Energy Union – Greece 

(source: DG JUST survey) 

3.3. Energy affordability  

In Greece, despite less significant heating needs in comparison with the EU, the share of energy in 
total  household  expenditures  of  the  lowest  quintile  of  population  is  below  but  close  to  the  EU 
average. This should be contrasted with the situation in 2005, when the share was lower than the EU 
average by close to 2 percentage points.  

Furthermore,  more  than  half  of  the  most  socially  deprived  householders  are  unable  to  keep  their 
homes adequately warm. The share saw a significant increase of more than 22 percentage points in 
the  period  2005-2015  and  is  more  than  double  the  EU  average.  The  impact  of  the  continued 
economic  crisis  on  household  disposable  incomes,  as  also  attested  by  the  steadily  increasing 
percentages of the national population (42% in 2015, more than four times the EU-28 average) with 
arrears  on  utility  bills7,  partly  explains  these  developments.  Housing  stock  issues  (poor  thermal 
insulation)  could  explain  the  fact  that  the  share  was  higher  than  the  EU  average  even  before  the 
onset of the economic crisis. 

 (source: ad-hoc data collection of DG ENER based on HBS with the support of Eurostat and national statistics) 

7
Source: European Commission, based on EUROSTAT SILC survey (EU-Statistics on Income and Living Conditions) 

9 

 
 
 
 
 
                                                            
Energy Union – Greece 

Greece has defined specific criteria and has introduced targeted, protective measures for vulnerable 
consumers which have been widened since 2014 in order to mitigate energy poverty. Such measures 
include, amongst others, subsidies for heating oil and electricity and social tariffs. In 2017, 645,262 
metering points8are under the Social Residential Tariff scheme, an increase of 56% compared to the 
numbers quoted in 20139. In 2015, Greece also introduced a special measure considering a certain 
quantity of electricity that is provided for free to residential customers facing severe poverty. 

4. Energy efficiency and moderation of demand 

Between 2005 and 2015, Greece decreased its primary energy consumption by 22.5% to 23.75 Mtoe. 
Over  the  same  period,  final  energy  consumption  also  decreased  by  21.3%  to  16.5  Mtoe  in  2015. 
Despite  the  fact  that  Greece  has  already  achieved  levels  of  primary  and  final  energy  consumption 
below the indicative national 2020 targets (24.7 Mtoe in primary energy consumption and 18.4 Mtoe 
in  final  energy  consumption),  it  would  need  to  make  an  effort  to  keep  the  primary  energy 
consumption at this level or to minimise its increase when the GDP grows again during the next five 
year period. 

When describing energy efficiency trends, it is meaningful to compare absolute trends with trends in 
terms  of  economic  output,  not  only  because  energy  consumption  and  economic  growth  are 
correlated, but also because a decoupling of these two indicators can be considered as a proxy for 
increasing energy efficiency. Primary energy intensity in Greece was in 2015 above the EU average, 
as  this  indicator  decreased  more  slowly  than  for  the  EU  average  between  2005  and  2015  (0.2% 
versus a 2% reduction). This could be explained by a more significant decline of GDP as compared to 
primary energy consumption.  

(source: Eurostat) 

In 2015, the Greek transport sector was the largest energy consuming sector representing a 39.9% 
share  in  the  total  final  energy  consumption,  which  is  above  the  EU  average  of  33.1%.  The  energy 
consumption of Greece's residential sector was in 2015 at 26.7% in total final energy consumption, 
slightly above the EU average (25.4%). The energy consumption of the Greek industry was lower than 

8Source: Greek Ministry of Environment & Energy. 
9Source: RAE 2015 National Report to the European Commission: "At the end of 2014, 522,760 consumers were 
under the Social Residential Tariff (KOT) scheme (see Table 15), compared to 412,883 consumers, which was 
the corresponding number at the end of 2013 (an increase of 26.6%)". 

10 

 
 
 
                                                            
Energy Union – Greece 

the EU average by more than 6 percentage points, with a share in total final energy consumption of 
19%. 

(source: Eurostat) 

Whilst influenced by the share of energy-intensive industries, Greece was among the limited number 
of Member States that saw an increase of the energy intensity in industry over the period 2005-2015. 
At 131.75, the indicator remained in 2015 significantly above the EU average (92.14). 

Final energy intensity in the services and residential sector are both below the EU average, with the 
former running opposite from the decreasing trend of the EU average during the period 2005-2015 
while the latter followed the trend of the EU average. Nonetheless, there is still a need to properly 
implement  the  national  energy  efficiency  actions  and  programs  in  order  to  meet  the  cumulative 
saving requirements stemming from Article 7 of the Energy Efficiency Directive. 

(source: Eurostat)  

(source: Eurostat)  

(source: Odysseedatabase) 

For  the  period  2005-2015,  the  final  energy  consumption  in  Greek  transport  recorded  an  average 
annual  decrease  of  1.9%,  comparable  to  the  2.1%  average  annual  GDP  decrease.  This  was  mostly 
driven  by  the  significant  decrease  of  freight  transport  activity  observed  since  the  beginning  of  the 
economic crisis, compared to the increase in passenger activity over the same period. 

11 

2015 EU28: Final energy consumptionwasteservicesagriculture/forestry/fishingresidentialtransportindustry0,4%13,6%2,3%25,4%33,1%25,3%1084,0Mtoe2015 EL: Final energy consumptionother (non-specified)servicesagriculture/forestry/fishingresidentialtransportindustry1,5%11,3%1,6%26,7%39,9%19,0%16,5Mtoe 
 
 
 
 
 
 
Energy Union – Greece 

(source: Eurostat)  

(source: Eurostatand DG MOVE pocketbook)  

The  share  of  collective  passengers  land  transport  into  total  passengers'  transport  decreased  from 
21.7% in 2005 to 18.6% in 2015.  

(source: Eurostat)  

Greece  is  making  large  investments  in  the  railway  infrastructure  and  has  several  railway  projects 
underway, the most important being the upgrade of Athens-Thessaloniki corridor (to be completed 
in  2018)  and  the  electrification  of  Athens-Patra  line  (up  to  Eghio,  in  2020).  As  the  Patras-Athens-
Thessaloniki-Promachonas  (northern  borders)  main  corridor 
is  moving  gradually  closer  to 
completion, new strategic plans are considered for the next generation network expansions (Egnatia 
Railway, Attica detour etc.). 

Greece has been involved in the EU co-funded project "Costa II East - Poseidon Med", which forms 
part  of  the  TEN-T  Priority  Project  21,  together  with  Cyprus,  Croatia,  Italy  and  Slovenia.  COSTA  II 
started in December 2013, and focused on the eastern Mediterranean region/sea in order to prepare 
a  detailed  infrastructure  development  plan  promoting  the  adoption  of  LNG  as  marine  fuel  for 
shipping operations.  

Greece is also active in research and innovation within transport and has participated in a number of 
Horizon  2020  Transport  Research  &  Innovation  projects,  such  as  the  E-ferry  (electric  ferries  for 

12 

 
 
 
 
 
 
 
 
Energy Union – Greece 

greener  water  transport)  Optimum  (developing  digital  solutions  to  improve  transport  mobility  in 
Europe) and SocialCar (a new urban network service, combining public transport with car sharing). 

On  the  use  of  electric  passenger  cars,  a  number  of  incentives  are  in  place  exempting  electric  and 
hybrid vehicles from registration taxes, luxury taxes and the luxury living taxes. Cars with engines up 
to  1929cc  are  exempted  from  annual  circulation  taxes  whereas  cars  with  a  higher  engine  capacity 
pay half of the normal circulation tax rate. 

5. Decarbonisation of the economy 

5.1. GHG emissions 

According to the national projections, non-ETS greenhouse gas emissions in Greece will decrease by 
22%  between  2005  and  2020.  Greece  will  therefore  achieve  its  2020  greenhouse  gas  emission 
reduction target (a 4% reduction in comparison to 2005 emission level). 

(source: EC and EEA) 

According to 2016 EEA estimates, the GHG intensity of Greece's economy was above the EU average, 
decreasing at half the pace since 1990. In 2016, the GHG emissions per capita in Greece were slightly 
above the EU average (only 2%); while in 1990 they were below the EU average by 13%. 

In 2015, the largest sectors in terms of GHG emissions were the energy sector (43.9 % of total GHG 
emissions) followed by industry (17.9%), transport (17.9%) and agriculture & fishery (9.3%). 

13 

 
 
 
 
 
 
Energy Union – Greece 

(source: EC and EEA) 

Preliminary accounts under the Kyoto Protocol for Greece show overall removals of 0.5 Mt CO2eq. as 
an annual average in the period 2013-2015. For comparison, the annual average of the EU-28 
accounted for removals of 119.0 Mt CO2eq. It should be noted that in this preliminary simulated 
accounting exercise, removals from Forest Management did by far not exceed the accounting cap.  

Removals by Afforestation are notably higher than emissions by Deforestation; however, removals by 
Forest Management contribute the highest share. Overall, there is a no notable trend in removals; 
only removals by Afforestation show minor variations. Emissions by Deforestation and removals by 
Forest Management remain constant over the course of the three-year period.  

Note: Forest Management credits are capped and presented as yearly averages when the total Forest 
Management credits of the considered period exceed the simulated cap over the same period. 

(source: EC and EEA) 

CO2 emissions in transport and alternative fuelled vehicles 

The  average  CO2  emissions  of  new  cars  in  Greece  were  in  2016  below  the  EU  average  and 
significantly decreased (more than the EU average) between 2005 and 2016. 

14 

 
 
 
 
 
 
 
Energy Union – Greece 

 (source: European Environment Agency) 

The  number  of  electric  charging  points  in  Greece  remained  stable  to  33  units  over  the  last  years 
according to the EAFO observatory. 

(European Environment Agency) 

(European Alternative Fuels Observatory) 

National Policy Frameworks under Directive 2014/94/EU on alternative fuels infrastructure have to 
establish targets, objectives and measures  for the development of the market alternative fuels in the 
transport sector and the deployment of the relevant infrastructure.  

To this date, no notification has been received from Greece and the Member State has failed to fulfil 
its obligations under Article 3(7) of Directive 2014/94/EU.  

5.2. Adaptation to climate change 

Greece  published  its  National  Adaptation  Strategy  in  2016.  No  specific  national,  sub-national  or 
sectorial  adaptation  plans  have  been  adopted  so  far.  The  vulnerability  assessment  of  the  major 
sectors in Greece focuses at natural ecosystems and biodiversity, agriculture and food security, forest 
ecosystems, fisheries and aquaculture, water resources, coastal zones, tourism, human health care, 

15 

 
 
 
 
 
 
 
 
 
Energy Union – Greece 

energy,  and  transport.  To  date,  there  is  no  monitoring  of  the  integration  of  climate  change  in 
sectorial  policies,  nor  is  there  a  framework  which  assesses  adaptation  actions  that  are  being 
implemented. 

5.3. Taxes on energy and transport and fossil fuel subsidies 

The overall tax burden on energy and transport in relation to GDP has increased strongly in Greece, 
from 2% of GDP in 2007 to 3.7% in 2014, thus significantly surpassing the EU average (with 1.3 p.p.). 
The rise in the GDP-share is accounted for by an increase in the tax burden on transport fuels, heat 
and electricity whereas taxation on transport vehicles has slightly decreased but stayed above the EU 
average. Greece does not have a carbon tax in place, but the annual tax on car ownership depends 
on CO2 emission performance. 

(Source: Eurostat) 

(source: OECD Inventory of Support Measures for Fossil Fuels 2015)  

16 

0123452007201420072014ELEU28[% GDP]Energy & Transport related taxes as % GDPHeat & ElectricityTransport VehiclesTransport Fuel2,023,682,282,37Total transport and electricity taxes [%GDP]: 
 
 
  
 
 
 
 
 
Energy Union – Greece 

Fossil fuel subsidies have increased sharply in Greece in the last decade. In addition to what is shown 
in the graph, it can be noted that, following the 2015 Memorandum of Understanding between the 
European  Commission  (acting  on  behalf  of  the  European  Stability  Mechanism),  the  Government  of 
Greece,  and  the  Bank  of  Greece,  the  country  has  adopted  measures  supporting  fossil-fuel 
consumption in certain sectors, such as the preferential tax treatment of diesel fuel used by farmers, 
and  low-income  households  are  granted  tax  relief  for  their  consumption  of  heating  oil  in  order  to 
offset income losses. 

5.4. Renewable energy  

With  a  15.4%  renewables  share  in  2015  (against  an  indicative  trajectory  of  11.9%  for  2015/2016), 
Greece  is  on  track  to  meet  its  2020  renewables  target  (18%).  In  2015,  the  share  of  renewable 
electricity  generation  in  final  electricity  consumption  stood  at  22.1%  and  in  heating  and  cooling  at 
25.9%. However, the share of renewables in transport accounted for only 1.4% in 2015, against an 
objective of 10% by 2020. 

(source: Eurostat-SHARES) 

Investments in renewables in Greece have been characterized by a strong growth until 2013, spurred 
by a generous framework, followed by an abrupt slowdown of investments following the 2014 "New 
Deal",  which  imposed  significant  retroactive/retrospective  reductions  in  the  feed-in  tariffs  for  all 
existing  renewable  energy  projects  in  exchange  for  an  extension  of  the  duration  of  their  offtake 
agreements, and set new, reduced FITs for all new RES projects. 

The adoption of Law 4414/2016 in August 2016 has contributed to improving the investment security 
for new RES projects in Greece. This is something that is generally confirmed by statements from the 
Greek private sector.  

There  remain,  however,  certain  uncertainties  with  regard  to  the  details  of  the  new  RES  support 
scheme (including the timing and design of tenders for allocating part of the support) which still have 
to  be  defined at  the  level of  the  ministerial  decisions  as  well as  the  amendments  of  the  electricity 
market and system codes that are foreseen by the law.  

17 

 
 
 
 
 
 
Energy Union – Greece 

(source: Eurostat-SHARES) 

Due  to  a  consistent  deployment  of  renewables  since  2005,  it  is  estimated  that  Greece  avoided  in 
2014 about 8.4% of the fossil fuel in gross inland consumption and about 6.2% of GHG emissions at 
national level10. 

(source: EEA) 

5.4. Contribution of the Energy Union to better air quality 

Air  quality  in  Greece  continues  to  give  cause  for  concern.  For  the  year  2013,  the  European 
Environment  Agency  estimated  that  about  13,730  premature  deaths  were  attributable  to  fine 
particulate matter (PM2,5) concentrations and 1,490 to nitrogen dioxide (NO2) concentrations11. 

For both pollutants Greece reported exceedances of the binding EU air quality standards12. For the 
year 2014, Greece reported exceedances of the limit value for PM10 and of the limit value for NO2 in 1 
out of the 4 air quality zones in Greece. 

10Avoided  GHG  emissions  mentioned  here  have  a  theoretical  character  as  these  contributions  do  not 
necessarily represent 'net GHG savings per se' nor are they based on life-cycle assessment or full carbon 
accounting. 

11 European Environment Agency, 2016, Air Quality in Europe – 2016 Report, table 10.2. The report also includes details as 

regards the underpinning methodology for calculating premature deaths.    

18 

 
 
 
 
 
 
 
 
 
                                                            
Energy Union – Greece 

(source: EEA) 

The health-related external costs from air pollution in Greece have been estimated to be more than 
EUR 7 billion/year(income adjusted, 2010), which includes the intrinsic value of living a healthy life 
without premature death as well as the direct costs to the economy such as healthcare costs and lost 
working days due to sickness caused by air pollution13. 

The Energy Union can substantially contribute to addressing these air quality problems through 
measures reducing emissions of both GHG and air pollutants such as PM and nitrogen oxides (NOx) 
from major contributing sectors such as (road) transport, energy production, industry and residential 
heating (e.g. stoves and boilers).  

For Greece, no data was reported to indicate PM2.5 and NOx emissions by sectors for 2015.  

6. Research, innovation and competitiveness 

6.1. Research and innovation policy 

Support  for  research,  technology  and  innovation  in  Greece  is  based  on  the  National  Strategic 
Development  Plan  (NSDP).  The  Plan  includes  11  thematic  priorities,  of  which  energy  is  one.  At  the 
regional  level,  the  Greek  Regional  General  Secretariats  have  some  freedom  to  shape  priorities  for 
research and innovation (R&I) policy within the general national policy framework.  

Energy  R&I  funding  and  its  thematic  priorities  are  analogous  to  those  of  the  EU’s  Framework 
Programmes  on  Research:  the  use  of  renewable  energy  sources  for  electricity,  fuels,  heating  and 
cooling;  hydrogen  and  fuel  cells;  clean  coal  technologies;  smart  energy  networks;  and  energy 
efficiency and conservation. 

Greece is not a very active contributor to the ongoing work of the Strategic Energy Technology (SET) 
Plan.  Currently,  it  does  not  participate  in  any  of  the  temporary  working  groups  for  the 
implementation of the integrated SET Plan. 

12 Directive 2008/50/EC of the European Parliament and of the Council of 21 May 2008 on ambient air quality and cleaner 

air for Europe, OJ L 152, 11.6.2008, p.1-44 

13 See also the EU Environmental Implementation Review Country Report for Greece, SWD(2017)41 final of 3.2.2017 

19 

00,511,522,533,544,5NO2 Annual limit valuePM2.5 Annual limit valuePM10 Daily limit value[number of zones]Air quality zones in exceedance of EU air quality standards number of zones exceedingnumber of zones not exceedingEL 
 
 
                                                                                                                                                                                          
Energy Union – Greece 

Regarding  the  Horizon  2020  programme,  Greece  has  received  so  far  2%  of  the  EU  contribution 
devoted  to  the  'secure,  clean  and  efficient  energy'  part  of  the  programme.  As  of  September  2017, 
144 participations from Greek organisations have been awarded over EUR 36 million in Horizon 2020 
energy  projects.  This  includes  a  grant  of  over  EUR  1.4  million  to  the  Technological  Educational 
Institute of Piraeus for its participation in project TILOS (battery storage) and six grants totalling over 
EUR 3.5 million to Greek beneficiaries participating in project WiseGRID (smart grids).  

6.2. Investments and patents in the Energy Union R&I priorities 

In 2011, the latest year for which data is available, public (national) investments in the Energy Union 
R&I  priorities  reached  EUR  5.6  million,  having  decreased  by  23%  compared  to  2010.  The  highest 
share  of  investments  (38%)  was  attracted  by  the  Renewables  R&I  priority  of  the  Energy  Union, 
followed  by  the  Smart  System  and  Efficient  Systems  priorities  (33  %  and  20  %,  respectively).  The 
highest public investment was EUR 7.3 million, reported in 2010. For both years, public investment 
per GDP was lower than the EU average. 

Private investment in the Energy Union R&I priorities in 2013 was estimated at EUR 18 million (0.1% 
of the private R&I investment in Energy Union R&I priorities in the EU). The focus was on the Efficient 
Systems priority, which received 59% of these investments, followed by Renewables with a share of 
36%. 

In 2013, the most recent year for which complete patent14 statistics are available, 8 companies and 
research organisations based in Greece filed 6 patents in low-carbon energy technologies (0.1% of 
the EU total). The focus was on Efficient Systems (56%), followed by Renewables (39%) and the Smart 
System priority (5%). 

In 2013, private R&I investments and patents in Energy Union R&I priorities were lower than the EU 
average  when  normalised  by  GDP  and  by  population  respectively.  In  the  period  2007-2013,  both 
private  R&I  investments  and  the  number  of  patents  in  Energy  Union  R&I  priorities  increased  on 
average by 10% and 17% per year, displaying higher average rates of increase than those at EU level 
(6% and 15% respectively). 

14  

In the context of this document, the term 'patent' refers to patent families, rather than applications, as a measure of 
innovative activity. Patent families include all documents relevant to a distinct invention (e.g. applications to multiple 
authorities),  thus  preventing  multiple  counting.  A  fraction  of  the  family  is  allocated  to  each  applicant  and  relevant 
technology. 

20 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                            
Energy Union – Greece 

Note: Data only available for the period 2010 – 2011. 

(Data sources: Public investment as available in the International Energy Agency RD&D Statistics database15 for 
codes  relevant  to  Energy  Union  RIC  priorities.  Patent  data  based  on  the  European  Patent  Office  PATSTAT 
database16. Private investment as estimated by JRC SETIS. Detailed methodology available from the JRC17) 

6.3. Competitiveness 

In 2014, the real unit energy costs (RUEC)18 in Greece were lower than the EU average by more than 
2  percentage  points  and  also  significantly  lower  than  Japan  and  China.  RUEC  has  receded  after 
showing an upward trend in 2011, an evolution observed with most EU Member States. 

In 2016, the electricity prices paid by the median industrial customer in Greece is on par with the EU 
average  while  gas  prices  for  the  median  industrial  consumer  is  slightly  below  the  EU  and  OECD 
averages. 

15 http://www.iea.org/statistics/RDDonlinedataservice/  
16 https://www.epo.org/searching-for-patents/business/patstat.html#tab1  
17 https://setis.ec.europa.eu/related-jrc-activities/jrc-setis-reports/monitoring-ri-low-carbon-energy-technologies  
18 

This indicator measures the amount of money spent on energy sources needed to obtain one unit of value added. 

21 

 
 
 
 
 
                                                            
Energy Union – Greece 

(source: ECFIN) 

(source: ESTAT and IEA) 

Greece  appears  to  have  had  a  weak  competitiveness  performance  in  wind  and  solar  energy 
technology, in both absolute terms and vis-à-vis the EU as a whole, although, as regards the latter, 
the gap has diminished over time. The relative trade balance19 confirms that Greece is a net importer 
of solar and wind components, exceeding the EU average, but also here the differences has become 
somewhat smaller over time. The revealed comparative advantage indicator20 shows that Greece is 
not specialised in these technologies while it has expanded in RES generation capacity.  

(source: UN comtrade) 

7. Regional and local cooperation 

Greece is part of the Central and South-Eastern Europe Gas Connectivity (CESEC) High-Level Group, 
which was established in February 2015 by 15 EU Member States and Energy Community contracting 
parties and the European Commission, in order to accelerate the integration of Central- and South-
Eastern European gas markets and diversify gas supplies, and with the understanding that prioritising 

19The RTB indicator for product "i" is defined as follows: 𝑅𝑇𝐵𝑖 =
 where 𝑋𝑖 is the value of product's "i" exports and 𝑀𝑖 
imports.2005 refers in the text to the indicator average over the 2000-2009 period, while 2015 represents the average over 
the 2010-2016 period. The same applies for the RCA indicator - see below. 

𝑋𝑖−𝑀𝑖
𝑋𝑖+𝑀𝑖

20The RCA index for product "i" is defined as follows: RCAi =

w is the reference  group, the World economy.  

Xj,i
∑ Xj,i
i
Xw,i
∑ Xw,i
i

 where X is the value of exports, and j is the country and 

22 

0123456solarwindsolarwindELEU28[-]Revealed Comparative Advantage -RCA200520150,180,30-0,070,22absolute change 2005 -2015:-1,0-0,50,00,51,0solarwindsolarwindELEU28[-]Relative Trade Balance -RTB20052015-0,080,26-0,080,06absolute change 2005 -2015: 
 
 
 
 
 
 
 
                                                            
Energy Union – Greece 

a  limited  number  of  the  most  crucial  gas  infrastructure  projects  for  the  region  is  the  best  regional 
strategy. The aim of the group is to coordinate efforts to facilitate cross-border and trans-European 
projects that diversify gas supplies to the region, as well as to implement harmonised rules. 

The EU macro-regional strategy for the Adriatic and Ionian Region in which Greece takes part can be 
used  as  a  basis  for  regional  cooperation  on  energy.  European  Territorial  Cooperation  –'Interreg'  – 
under  EU  cohesion  policy  also  provides  further  opportunities  for  cross-border,  transnational  and 
interregional cooperation, including in the Energy Union areas. 

Cities and urban areas have a key role in the energy and climate challenge. The Urban Agenda for the 
EU,  established  by  the  Pact  of  Amsterdam  in  May  2016,  better  involves  cities  in  the  design  and 
implementation of policies, including those related to the Energy Union. It is implemented through 
Partnerships, in which the Commission, Member States, cities and stakeholders work together on a 
number  of  important  areas,  including  on  Energy  Transition,  Urban  Mobility,  Air  Quality,  Climate 
Adaptation and Housing. 

By 2016, in the context of the Covenant of Mayors, the sustainable energy action plans delivered by 
Greek  municipalities  had  been  assessed.  Overall,  these  municipalities  cover  about  4.4  million 
inhabitants  representing  close  to  40%  of  the  total  population  in  Greece.  All  together,  these 
municipalities  committed  to  reduce  by  2020  the  GHG  emissions  by  23%  (as  compared  to  1990 
baseline).  

(source: JRC 2016. Notes: SEAP=sustainable energy action plan, GHG=greenhouse gas emissions) 

In  Greece,  by  September  2016,  23  cities  (covering  1.04  million  inhabitants)  have  committed  to 
conduct  vulnerability  and  risk  assessment  and  develop  and  implement  adaptation  plans  in  the 
framework of the Covenant of Mayors for Climate and Energy. 

8. Cohesion policy and EU clean energy investments  

EU  cohesion  policy  makes  a  key  contribution  to  delivering  the  Energy  Union  objectives  on  the 
ground, including important investment possibilities to implement energy policy objectives in Greece 
which are complemented by national public and private co-financing, aiming at optimal leverage. It 
also  ensures  integrated  territorial  solutions  to  energy  and  climate  challenges,  supports  capacity 
building and provides technical assistance. 

is 

investing  some  EUR  918  million 

Over  2014-2020,  cohesion  policy 
in  energy  efficiency 
improvements  in  public  and  residential  buildings  and  in  SMEs,  as  well  as  in  high-efficiency 
cogeneration  and  district  heating,  renewable  energy  and  smart  energy  infrastructure  in  Greece. 
Cohesion policy is also investing significantly in R&I and in SME competitiveness in Greece, based on 
the  national  strategy  for  smart  specialisation.  For  Greece,  the  strategy  includes  a  focus  on 
sustainable energy and low-carbon economy. At this stage, at least EUR 102 million is foreseen for 
investments  in  R&I  and  adoption  of  low-carbon  technologies  in  Greece  but  this  might  increase 
further in line with the evolving content of the smart specialisation strategy. A further estimated EUR 

23 

 
 
 
Energy Union – Greece 

1,935 million is invested in supporting the move towards an energy-efficient, decarbonised transport 
sector. 

(source: DG REGIO) 

These  investments  are  expected to  contribute  to  around 26,000  households  with improved energy 
consumption  classification,  a  decrease  of  around  97,047,000  kWh  per  year  of  primary  energy 
consumption  of  public  buildings,  around  170  MW  of  additional  capacity  of  renewable  energy 
production and 197,000 additional users of smart grids, as well as to around 130 km of new railway 
lines,  300  km  of  reconstructed  or  upgraded  railway  lines  and  40  km of  new  or  improved  tram  and 
metro lines. Overall, the EU cohesion policy investments in Greece over 2014-2020 are expected to 
contribute to an estimated annual decrease of GHG emissions of around 103,000 tonnes of CO2eq. 

For  example,  the  LNG  terminals  in  NeaMesimvria  (Central  Macedonia)  and  Revythousa  (Attica) 
contribute to energy diversification and security of supply for the country and the South-East Europe. 
Both  projects  were  co-financed  in  the  period  2007-2013.  The  NeaMesimvria  project  increased  the 
capacity of the national gas system by 15.4 MW. The total eligible cost was EUR 57.4 million, of which 
cohesion policy funding contributed with EUR 17.4 million. The Revythoussa project concerned the 
second  upgrade  of  the  LNG  terminal  and  the  construction  of  a  third  tank  (to  be  completed  in 
September 2017), aiming to increase the LNG terminal storage and output capacity by 95 000m³, to 
upgrade the marine facilities to accommodate 85% larger LNG ships and the installation of additional 
cryogenic  equipment  aiming  to  increase  the  gasification  pace  by  40%.  This  project  of  strategic 
importance contributes to the flexibility and security in energy supply for the Greek gas transmission 
system by increasing gas storage capacity by 73%. Moreover, it leads to reduction in LNG prices for 
the  consumers  by  4%  and  also  to  improved  stability  of  the  system  in  terms  of  pressure.  The  total 
eligible  cost  was  EUR  165.6  million,  of  which  cohesion  policy  funding  contributed  with  EUR  61 
million. 

As another example, during the period 2007-2013, EUR 396 million were allocated to the programme 
Energy Savings at home, out of which EUR 241 million to the Fund EXOIKONOMO (saving at home) to 
improve  energy  efficiency  in  private  dwellings.  Following  the  latest  data,  the  outputs  achieved  to 
date are as follows:  45 403 dwellings were energy upgraded, allowing savings in primary energy of 
64 824.24 tep per year and energy savings in the housing sector of 753.9 GWh, while the cuts in GHG 
emissions are estimated of 541.3 kt CO2. The Fund EXOIKONOMO has been renewed for the period 
2014-2020, foreseeing interventions on the energy efficiency upgrade of households (cohesion policy 
support EUR 248 million) and to improve energy efficiency in public buildings in the regions (cohesion 
policy support EUR 44 million). 

24 

05001.0001.5002.0002.500Energy and Low-carbon R&ILow-carbon transport[Million EUR]ELERDF and Cohesion Funds allocation on energy, low-carbon transport and low-carbon R&I 2014-2020 1.0201.935Total alocation [mn EUR] 
 
 
Energy Union – Greece 

As  a  further  example,  another  major  breakthrough  in  the  energy  sector  in  Greece  is  the  energy 
interconnection  of  the  Cyclades  Islands  with  the  mainland  grid.  The  project  started  in  the  period 
2007-2013 and will be completed in the period 2014-2020. The first phase completed during 2007-
2013  had  a  cost  of  EUR 115.5  million,  of  with  cohesion  policy  funding  contributed  with  EUR  40.4 
million. The completion of this project will allow to stabilise the energy supply to the Cyclades Islands 
and, at the same time, untap the renewable energy potential of the islands. 

Through  its  support  to  sustainable  transport  systems,  the  Connecting  Europe  Facility  (CEF)  also 
contributes  to  the  goals  of  the  Energy  Union.  Following  Greek  participation  in  the  CEF  –  Transport 
2014-2015  Calls,  the  Greek  action  portfolio  comprises  15  signed  grant  agreements,  allocating  EUR 
618.1 million of actual CEF Transport Funding to Greek beneficiaries (state-of-play February 2017)21. 
The transport mode which receives the highest share of funding is rail (93.8% of actual funding). The 
railway actions in Greece concern two main axes: the completion of the Orient East/ Med Corridor 
according  to  the  Regulation  requirements  and  the  railway  connection  of  the  node  of  Thessaloniki 
with the eastern part of the country along the "Rail Egnatia".  

In  regards  to  alternative  fuels,  the  Greek  beneficiaries  participate  in  the  Maritime  Transport  mode 
through the Motorways of the Sea (MoS) actions, aiming to take all the necessary steps towards the 
adoption  of  LNG  as  marine  fuel  in  the  East  Mediterranean  Sea.  Moreover,  always  with  the  aim  to 
improve the environmental performance of ports and shipping lines, Greek beneficiaries participate 
to the MoS wider benefit action focussing on the assessment of the possibilities to introduce onshore 
in  the  Eastern 
power  supply  and  electric  propulsion  alternative  (cold 
Mediterranean.22 

ironing)  for  ships 

21

22

Note that European Economic Interest Groups and International Organisations are excluded from the analysis. 

Source: INEA 

25