WSHPDR_2013_Final_Report-updated_version

4.3.4 Greece
European Small Hydropower Association, Stream Map
Key facts
Population 10,767,827 1
Area 131,957 km 2
Climate
Topography
Rain
pattern
Temperate; mild, wet winters; hot, dry
summers 1
Mostly mountains with ranges
extending into the sea as peninsulas or
chains of islands
Precipitation ranges from 1,210 mm in
the north and the mountains to
between 380 mm and 810 mm in the
south. 2
Electricity sector overview
In 2011, the total electricity production of Greece was
51,993 GWh, mainly based on fossil fuels (figure 1)
with a total installed capacity of 15,397.5 MW. 3
Net imports
RES
Large hydro
Fuel oil
Natural gas
Lignite
5.62%
5.85%
6.40%
8.30%
25.84%
47.98%
0% 10% 20% 30% 40% 50% 60%
Figure 1 Electricity generation in Greece
Source: Regulatory Authority for Energy 3
The new Energy Law 4001/2011 was adopted in
August 2011, transposing the Third Energy Package
into national legislation and increasing the authority
of the country’s regulator Regulatory Authority for
Energy (RAE). The responsibilities of the Hellenic
Transmission System Operator and the Public Power
Corporation have been unbundled and distributed to
new subsidiaries. 4
Small hydropower sector overview and potential
In 2010, Greece had 98 small hydropower plants and a
total installed capacity of 196 MW, producing 753
GWh of electricity (figure 2). By 2020, the aim is to
have 175 plants with a total installed capacity of 350
MW (1,148 GWh).
SHP installed
capacity
SHP potential
196 MW
0 500 1000 1500 2000
Figure 2 Small hydropower capacities in Greece
2000 MW
In the last three years, the trend of putting small
hydropower plants into operation has slowed down.
The main reasons are difficulties in financing the
plants on behalf of the banks, the bureaucratic
licensing environment, and the fact that on 31
December 2009, the time limit for Greece to adopt
the EU Water Framework Directive expired. This has
resulted difficulties in the Greek legal framework in
terms of the Water Usage Framework. As a result, less
than 10 installation licences have been issued during
the last three years, which is a change to the
previously very dynamic small hydropower sector up
to 2008.
There is a long discussion in Greece about improving
the supporting schemes and many new laws,
ministerial decisions have been voted for in order to
enforce the renewable energy sources development
and consequently the small hydropower
development. Although there is an obvious trend to
unification and simplification of the legal framework,
time is still needed for this to be achieved.
Renewable energy policy
The renewable energy target by 2020 is 18 per cent,
according to Greece’s National Renewable Energy
Action Plan (NREAP). 5 The law for the 20-20-20 targets
of Greece, passed in 2010 has set a very low target for
small hydropower (350 MW) despite its high potential
that is estimated at 2,000 MW.
Legislation on small hydropower
The legally binding residual water supply minimum
flow that has to be allowed downstream by small
hydropower plants must be equal to at least 50 per
cent of the daily average water supply for the month
of September. During the summer months (June to
August), it should constitute 30 per cent of the daily
average water supply.
In Greece, the support scheme that is in place for
small hydro is a feed-in tariff (FIT). The respective law
sets a FIT of €87.7/MWh (about US$117/MWh), up to
20 years, which could be further extended after the
renewal of the operation licence. In the case that the
small hydropower plant is constructed without any
grants from the State, then there is a 20 per cent
increase in FIT. Every year, there is a small increase
according to a percentage of the yearly inflation and
depending on the justified opinion of the Minister of
Environment.
A new Ministerial Decision (Ministry of Environment,
Energy and Climate Change, EFPE/518/05.04.2011)
has been passed. It arbitrarily set limits on the
magnitude of a small hydropower plant capacity
according to the length of the stream diversion. This
decision cancels more than 50 MW small hydropower
plants that were already in the queue for receiving
licences. In addition, the potential of energy
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