The domestic market continues to show high concentration and low competition electricitydespite the successful reforms of recent years, indicates International Energy Agency (IEA) in his report on Greece, which he presented yesterday in Athens. The IEA report looks at the period since its previous report on Greece in 2017 and acknowledges the progress made in the country’s energy sector towards decarbonisation, but concludes that stronger action is needed to reduce its reliance on fossil fuel and achieve the goal of zero emissions by 2050. As noted, although the share of fossil fuels has declined from 91% in 2011 to 82% in 2021, it remains above the IEA average of 78%.

With regard to the wholesale electricity market in particular, the report shows that despite improvements, the Greek market is still characterized by high concentration and low competition. In terms of the retail market, it was found that in Greece, the price of electricity for residential consumers in the second quarter of 2022 was the 10th most expensive among the 31 member countries of the organization and the 2nd most expensive for industry. In particular, the IEA emphasizes in its report that in the second quarter of 2022, the average price for households in Greece was $272 per MWh. Average tariffs for households in IEA countries in the same quarter were $255 per MWh. As for the price of industrial electricity, which averaged $243/MWh in Greece over the same period, it was the second highest price among the 31 IEA member countries, where the average was $174/MWh.

Electricity bills, according to the IEA, are still complex and include non-energy expenses such as TV and utility bills. The agency recommends considering excluding them from electricity bills. her share checkpoint, as already noted, remains important, and high energy prices increase the pressure on small suppliers, as well as the risks of their potential exclusion from the market. The agency also recommends that the government consider requiring retailers to cover a significant portion of fixed-price contracts with long-term contracts to increase hedging opportunities. According to the IEA, limited hedging capacity has meant that Greek suppliers have been hit hard by recent increases in wholesale electricity prices that have passed on to end consumers.

The report also comments on the emergency measures to support electricity consumers, highlighting their negative impact on the markets. “Greek authorities should closely monitor the impact of these emergency measures on the wholesale and retail markets and adjust if necessary, prioritizing other measures without regulated price components, such as direct subsidies and tax cuts,” he says.

According to the International Energy Agency, the Greek market is still characterized by high concentration and limited competition.

For RES, he points to the need to speed up the licensing process for new projects and recommends that the Greek government consult with system and distribution operators to ensure that at least 4 GW of new projects are connected on time by 2025. It also calls on the government to work with market players and local communities to develop a priority plan for the development of renewable energy projects that will ensure rapid permits and projects are connected while balancing resources, network costs, environmental and cultural issues and land use.

The IEA notes the progress made by the country in the renewable energy sector. In 2021, Greece was in 14th place among IEA member countries. In the same year, RES accounted for 22% of Greece’s gross final energy consumption, 36% of electricity production, 36% of heating and cooling demand and 4.3% in the transport sector.

In terms of energy efficiency, the IEA recommends that the Greek government focus its building renovation programs on radical renovations that combine thermal insulation with heat pumps to maximize energy savings and bill reduction benefits. It also recommends promoting the replacement of old vehicles, especially trucks, by providing incentives, including a scrappage program, and exchanging old vehicles for more efficient ones.

The report praises Greece for its national climate law, passed in May 2022, as well as its success with lignitization. As IEA Deputy Director General Mary Warlick noted during the presentation of the report, Greece can serve as an example for countries around the world working to reduce the production of electricity based on coal.