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Wind Energy in Greece: An Interdisciplinary Analysis of Greece's Progress Towards EU RES Targets Author: Therese Miranda Mentor: Joanna Lewis, PhD A Thesis Submitted in Partial Fulfillment of the Requirements for the Award of Honors in Science, Technology & International Affairs, Edmund A. Walsh School of Foreign Service, Georgetown University, Spring 2009

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Page 1: Wind Energy in Greece: An Interdisciplinary Analysis …energy on a countrywide level and within three geographic regions: the Cycladic Islands, the island of Crete, and the areas

Wind Energy in Greece: An Interdisciplinary Analysis of Greece's Progress Towards EU RES Targets

Author: Therese Miranda Mentor: Joanna Lewis, PhD

A Thesis Submitted in Partial Fulfillment of the Requirements for the Award of Honors in

Science, Technology & International Affairs, Edmund A. Walsh School of Foreign Service, Georgetown University, Spring 2009

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Table of Contents

ABSTRACT .................................................................................................................................................................. 4

(1) INTRODUCTION .................................................................................................................................................. 5

(2) LITERATURE REVIEW ..................................................................................................................................... 7

(2.1) SITING, TRANSMISSION, AND GRID INTEGRATION ............................................................................................. 9(2.1.1) Grid Infrastructure.................................................................................................................................. 10(2.1.2) Storage Technologies .............................................................................................................................. 11(2.1.3) Siting Concerns ....................................................................................................................................... 12(2.1.4) Distributed Generation (DG).................................................................................................................. 13

(2.2)ECONOMIC ASPECTS......................................................................................................................................... 14(2.2.1) Deregulation ........................................................................................................................................... 16(2.2.2) Support Schemes: Feed-in Tariffs........................................................................................................... 18(2.2.3) Carbon Pricing and Trading................................................................................................................... 20

(2.3) GOVERNMENT ATTITUDES AND LEGISLATIVE FRAMEWORK ........................................................................... 21(2.4) SOCIAL ASPECTS.............................................................................................................................................. 22(2.5) ENVIRONMENTAL ASPECTS ............................................................................................................................. 26(2.6) INTER-DISCIPLINARY WORKS .......................................................................................................................... 27

(3) METHODS............................................................................................................................................................ 30

(3.1) SELECTION OF GREECE AND REGIONS ............................................................................................................. 30(3.2) RATIONALE FOR A HOLISTIC APPROACH ......................................................................................................... 34(3.3) DESCRIPTION OF THE REGIONS ........................................................................................................................ 35

(3.3.1) Cycladic Islands ...................................................................................................................................... 36(3.3.2) Crete........................................................................................................................................................ 37(3.3.3) Interconnected Greece (Mainland) ......................................................................................................... 38

(3.4) DATA SOURCES................................................................................................................................................ 39(3.5) CHALLENGES AND LIMITATIONS ..................................................................................................................... 40

(4) NATIONAL AND REGIONAL STUDIES ........................................................................................................ 42

(4.1) NATIONAL STUDY – COUNTRYWIDE FACTORS ................................................................................................ 42(4.1.1) Basics about Greece................................................................................................................................ 43(4.1.2) Role of the European Union.................................................................................................................... 45(4.1.3) Greek Government and Legislative Framework ..................................................................................... 51(4.1.4) National Economic Factors .................................................................................................................... 52(4.1.5) The Public Power Corporation (PPC).................................................................................................... 56(4.1.6) Greek Ministries and Governing Bodies................................................................................................. 58(4.1.7) Regulatory Authority for Energy (RAE).................................................................................................. 59(4.1.8) Greek Transmission Operator (DESMIE) .............................................................................................. 60(4.1.9) Centre for Renewable Energy Studies (CRES) ....................................................................................... 61

(4.2) REGIONAL STUDY I – CYCLADIC ISLANDS....................................................................................................... 62(4.2.1) Energy Demand....................................................................................................................................... 63(4.2.2) Current Energy Sources.......................................................................................................................... 64(4.2.3) Wind Potential and Market Penetration ................................................................................................. 65(4.2.4) Economic Factors ................................................................................................................................... 67(4.2.5) Social and Political Factors ................................................................................................................... 69

(4.3) REGIONAL STUDY II – CRETE .......................................................................................................................... 72(4.3.1) Energy Demand....................................................................................................................................... 72(4.3.2) Current Energy Sources.......................................................................................................................... 74(4.3.3) Wind Potential and Market Penetration ................................................................................................. 76(4.3.4) Economic Factors ................................................................................................................................... 78(4.3.5) Social and Political Factors ................................................................................................................... 78

(4.4) REGIONAL STUDY III – INTERCONNECTED GREECE......................................................................................... 80

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(4.4.1) Energy Demand....................................................................................................................................... 80(4.4.2) Current Energy Sources.......................................................................................................................... 81(4.4.3) Wind Potential and Market Penetration ................................................................................................. 82(4.4.4) Economic Factors ................................................................................................................................... 83(4.4.5) Social and Political Factors ................................................................................................................... 84

(5) FINDINGS............................................................................................................................................................. 87

(5.1) OVERALL ANALYSIS ........................................................................................................................................ 87(5.1.1) The Cycladic Islands ............................................................................................................................... 87(5.1.2) Crete........................................................................................................................................................ 88(5.1.3) Interconnected Greece ............................................................................................................................ 89

(5.2) POTENTIAL SOLUTIONS.................................................................................................................................... 89(5.2.1) Hybrid Plants – Wind and Storage ......................................................................................................... 91(5.2.2) Interconnection ....................................................................................................................................... 95(5.2.3) Grid Expansion and a Smartgrid .......................................................................................................... 100(5.2.4) Social Outreach..................................................................................................................................... 101

(6) ANALYSIS .......................................................................................................................................................... 105

(6.1) GRID CONSTRAINTS....................................................................................................................................... 105(6.2) EUROPEAN UNION – GREECE INTERACTIONS ................................................................................................ 111(6.3) PUBLIC ATTITUDES AND MISINFORMATION................................................................................................... 114(6.4) BROADER IMPLICATIONS ............................................................................................................................... 116

(7) CONCLUSION ................................................................................................................................................... 120

REFERENCES ......................................................................................................................................................... 125

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Figures and Tables

FIGURE 1: REGIONAL AREAS OF STUDY.......................................................................................................................... 8FIGURE 2: ADMINISTRATIVE REGIONS OF GREECE AND SELECTED CITIES ................................................................... 31TABLE 1: REGIONAL CHARACTERISTICS OF CYCLADIC ISLANDS, CRETE, AND MAINLAND GREECE............................ 35TABLE 2: RES PRODUCTION, TARGETS AND PROGRESS FOR EU-25............................................................................. 47FIGURE 3: GREEK SHARE OF RES ................................................................................................................................. 49TABLE 3: GREEK FEED-IN TARIFFS ............................................................................................................................... 53FIGURE 4: MAP OF THE CYCLADIC ISLANDS ................................................................................................................. 63FIGURE 5: LOGISTIC ENERGY DEMAND PROJECTIONS FOR CRETE................................................................................ 73FIGURE 6: SYSTEM LOAD CURVE FOR CRETE ............................................................................................................... 75FIGURE 7: HV TRANSMISSION SYSTEM AND GENERATING PLANTS ON CRETE............................................................. 76FIGURE 8: WIND SPEED ON CRETE................................................................................................................................ 77FIGURE 9: EXISTING AND PROPOSED INTERCONNECTION OF THE CYCLADIC ISLANDS ................................................. 98

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Abstract European Union Directive 2001/77/EC set an indicative target for Greece to obtain 20.1% of its electricity from renewable energy sources (RES) by 2010. Greece will not achieve this target, but the challenges faced by the country offer a number of valuable lessons for its efforts to reach the mandatory target for 2020 set by a new Directive. This thesis analyzes economic, technical, social, and political factors that influence the development of wind resources in Greece. The primary methodology is qualitative comparisons conducted via regional studies of the Cycladic Islands, Crete, and interconnected Greece. The thesis concludes that (1) adequate grid capacity is essential to the successful development of wind installations; (2) EU membership has and will continue to push Greece towards more rapid development of RES than Greece would have pursued independently; and (3) social support makes the development of wind installations much easier; thus, governments should include social outreach efforts in their plans to increase wind penetration. While much of the research used to support these conclusions is specific to Greece, the conclusions themselves are applicable to numerous settings outside Greece.

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(1) Introduction Greece, as a member of the European Union, must comply with all EU directives.

Directive 2001/77/EC of the European Parliament and the Council of the European Union “on

the promotion of electricity produced from renewable energy sources in the internal electricity

market” set a target of producing 22% of the Community’s electricity from renewable energy

sources by 2010.1 Under the directive, Greece needed to produce 20.1% of its electricity from

renewable energy sources (RES). Greece’s strongest renewable energy resource is wind, so the

country has focused primarily on developing wind farms. In January 2007, the Renewable

Energy Roadmap strengthened Directive 2001/77/EC. The European Parliament passed a new

Directive in December 2008 that sets compulsory targets requiring the EU to obtain 20% of its

energy mix for electricity, heating and cooling, and transportation from renewable sources by

2020.2 It is evident that Greece will not meet its targets under Directive 2001/77/EC because of

the challenges it has faced in past efforts to develop wind installations. This thesis examines the

conditions that influence the development of wind installations and potential paths forward, with

the ultimate goal of determining what prevented Greece from achieving its 2010 goals and what

will put the country in the best position to achieve its 2020 targets.

This thesis provides an overarching assessment of the current situation facing wind

energy on a countrywide level and within three geographic regions: the Cycladic Islands, the

island of Crete, and the areas of Greece served by the national interconnected gird. Section 2

examines the existing body of literature regarding technical, economic, social, bureaucratic and

1 The European Community is one of the three pillars of the European Union. The pillar system allows for variation in balance between supra-nationalism and intergovernmentalism. The European Community is primarily supranational, meaning decisions are made using majority votes among member-states. As a result, it is possible to force member-states to enact actions against their will in areas that fall within the jurisdiction of the European Community. The Community is concerned with economic, social and environmental policies of EU member-states. 2 As of April 2009, the Directive had not been published in the Official Gazette. As a result, it is not in effect and does not have a number assigned to it. In this thesis, “the new Directive” or “2020 targets” are used to refer to this Directive.

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legislative frameworks in a global context. Next, the Methods section (Section 3) discusses the

rationale for selecting Greece, using a holistic assessment, and employing regional studies. This

section also explains the data sources used and the limitations of this thesis. Section 4 presents

in-depth national and regional studies. Next, the Findings section (Section 5) summarizes the

situation in each of the regions and offers potential solutions to the challenges they face. The

solutions address both technical and social obstacles. The Analysis section (Section 6) explores

what the results of the regional studies mean for Greece’s future efforts to increase RES

deployment and the global implications of specific findings about Greece and the three regions.

Ultimately, this thesis assesses Greece’s progress to date, makes recommendations for future

progress, and suggests ways in which findings from Greece may be applicable to the broader

world.

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(2) Literature Review In order to determine what course of action will put Greece in the best position to meet its

targets for RES installation, it is necessary to examine several aspects of wind energy. They are:

(1) siting, transmission, and grid integration challenges; (2) competing energy sources; (3) the

role of government entities and state-owned players in the energy market; (4) political and social

attitudes towards renewable energy in general and wind turbines specifically; and (5) European

Union policy and resulting pressures. However, most past literature on wind energy does not

follow these divisions. Rather, it focuses on (1) technical challenges, including plant design, grid

integration, and transmission; (2) economic assessments of proposed installations; and

assessments of non-technical barriers to RES deployment, including (3) social attitudes and (4)

bureaucratic or legislative frameworks. Recently, there has been a decline in discussion of (5) the

overall environmental impact of wind installations. Lastly, the current body of literature does not

address in detail (6) the interactions between these fields in Greece, although the global body of

literature is beginning to recognize and address this challenge.

The ease of developing wind resources varies based on local factors. Thus, studies of

Greece generally distinguish between the conditions on small islands, large islands, and the

mainland because of their vastly different energy systems. John K. Kaldellis, one of the most

prolific scholars on wind energy in Greece, divides his analysis into the Aegean Sea Islands,

Crete, and windy areas of the mainland (Kaldellis 2004).3 This thesis presents an assessment of

countrywide factors, as well as regional studies of the autonomous power systems found in the

3 The Aegean Sea Islands is composed of several smaller island groups, including the Cycladic Islands.

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Cycladic Island group; Crete, which represents the largest island power system in Greece; and

the interconnected mainland. 4

Figure 1: Regional Areas of Study

Image source: Wikimedia Commons Labels: Therese Miranda

4 Technically, interconnected Greece includes the island of Euboea, mainland Greece, and a handful of small islands close to the coastline, but for the sake of simplicity, this paper uses the term mainland as equivalent to interconnected Greece. Euboea is an extremely large island running along the western coast of Greece: only a short distance separates the island and mainland. Its transmission system is part of Greece’s main transmission grid, and the island has a great deal more in common with the mainland than with other Greek islands.

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(2.1) Siting, Transmission, and Grid Integration In order to implement wind energy, a region must be able to integrate an intermittent

source of energy into the existing grid without causing instability in the system. Several case

studies have examined wind energy and the transmission grid in Greece (Georgilakis 2008;

Hammons 2008; Papadopoulos, Glinou, and Papachristos 2008). One study analyzed the

technical challenges and social welfare impact associated with various energy policies, rather

than merely performing a lowest-cost assessment (Zouros, Contaxis, and Kabouris 2005).

Georgilakis’ work combines a technical assessment of the challenges with economic analysis of

the cost of overcoming these challenges; he concludes that wind energy is generally feasible and

relatively inexpensive at levels up to 20% penetration in interconnected systems (Georgilakis

2008). However, the actual level of penetration that specific settings can achieve depends on

wind potential, grid infrastructure, level of demand, and financial incentives (Hammons 2008;

Kaldellis 2008; Tsioliaridou, Bakos, and Stadler 2006). Limits to grid penetration for wind

currently constrain wind power implementation on small islands with relatively low demand and

independent grids.5 In the future, these constraints will become a concern on the mainland as

well. Due to the intermittent nature of wind and varying levels of demand, it is difficult for wind

penetration to exceed 30% using current commercial technologies; in isolated systems, economic

returns begin to decline closer to the 10% mark because of increasing wind power rejection.

Energy storage systems can increase penetration by storing excess energy for use in peak load

shaving (Anagnostopoulos and Papantonis 2008). Additionally, a more advanced transmission

infrastructure that incorporates digital technologies and a web-like structure could better handle

distributed power generation and the integration of intermittent renewables, this alleviating many

of the current concerns (Hammons 2008).

5 The terms “autonomous” or “autonomous islands” refer to these systems.

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(2.1.1) Grid Infrastructure Scholars generally agree that transmission grids across the globe will need updating in

order to accommodate growing levels of demand and the intermittent distributed generation

associated with RES such as solar and wind (Anderson 2004). These new grids involve an

assortment of technologies collectively referred to as smartgrids. Experts believe the new grids

will look more like webs than the current hub-and-spoke systems. The systems will require

automated decision-making capabilities because the speed they require is rapidly exceeding

human abilities. Anderson believes the first stages of a smartgrid will be the installation of higher

capacity transmission lines, digital controls, and electronic switches. A smartgrid must have

systems capable of viewing the whole grid and directing the flow of electrons almost

instantaneously. New transmission systems will rely on the model provided by internet packet

switching: by sending power through multiple pathways and reassembling it at the destination,

the new system will alleviate congestion effects. New hardware such as thyristors will be

necessary to provide a buffer against cascading failures. The grid should also utilize distributed

storage capacity in order to deal with the spikes and sags associated with large-scale wind and

solar generation: Anderson suggests High Temperature Superconductivity (HTSC) storage

(Anderson 2004).

The new grids will also have to address transmission losses, which currently discourage

utilities from transporting power over long distances, transmission losses. One option for long-

distance transportation is high voltage direct current (HVDC). HVDC has lower transmission

losses than the more commonly used high voltage alternating current (HVAC) technology, but

the transmission operator must convert DC power back to AC power before feeding it into the

main transmission grid. However, Papadopoulos et al. believe that using a new technology

known as HVDC Light in parallel with a weak AC grid shows great potential for addressing not

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only transmission issues, but also the supply challenges associated with intermittent renewables

(Papadopoulos et al. 2004). Integrating RES remains a problem and there is a need for further

research. Innovations in transmission line materials are likely to occur in the long run. One

possibility is quantum wires, nano-scale transmission wires that have the potential to decrease or

eliminate line losses and weather dependencies, making long distance electricity transmission

more viable from an economic and technical perspective (Anderson 2004).

Because research is ongoing, there is a great deal of uncertainty surrounding the future

technological development of smartgrid components. Additionally, the impact of integrating

existing smartgrid technologies into the current electricity grids is unclear. Contained testing of

the new technologies and further research in this field are necessary. As smartgrid technologies

improve and deployment increases, the level of renewable penetration that is technically wise

will increase (Anderson 2004).

(2.1.2) Storage Technologies The ability to store excess energy during periods of low demand for use during periods of

high demand dramatically improves the efficiency of RES. Regions that are close to the

maximum level of RES penetration that the grid can safely support need storage technology the

most urgent, but most scholars believe energy storage will play a key role in all future energy

systems. System managers can either integrate storage technologies, such as HTSC into the

transmission grid or storage facilities at power generating sites (Anagnostopoulos and Papantonis

2008; Anderson 2004; Katsaprakakis et al. 2007; Katsaprakakis et al. 2008).

On the islands, storage will play a key role in increasing RES penetration because wind

power rejection results from the technical minima of conventional plants rather than inadequate

grid capacity. If the sum of the amount of wind energy generated and the amount of energy

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conventional plants must generate to avoid damage is more than the total local demand, wind

energy is rejected by the system (Anagnostopoulos and Papantonis 2008). Storage technology

could increase penetration in isolated systems by better matching supply and demand. One

option is a pumped storage system that uses excess electricity from the wind farm to pump water

to a higher elevation. When wind capacity is insufficient to meet demand, the stored water

powers a small-scale hydro-powered generator (Katsaprakakis et al. 2007; Katsaprakakis et al.

2008).

(2.1.3) Siting Concerns The location and type of turbine installed also affects the potential capacity of a wind

installation. Troen and Peterson (1989) compiled mappings of wind potential across Europe

during the 1980s, providing a starting point for siting decisions (Troen and Petersen 1989).

However, entities considering developing RES resources at various sites should take more recent

and detailed measurements. Existing estimates of wind power potentials for several areas of

western Greece providing a starting point and methodology for determining which sites offer the

greatest wind power potential and economic advantage (Bagiorgas et al. 2007). Further analysis

of specific sites in Greece and around the globe will be necessary as installation of wind turbines

proceeds. One promising method uses of geographic information systems (GIS) technology to

select possible sites based on multiple criteria such as wind speed, terrain, proximity to

transmission capacity, and visibility from important landmarks (Hatziargyriou et al. 2007).

However, this method requires substantial amounts of base data: it must be possible to link

digitized geographic information to information in a database. Given that a lack of standardized

or consistent data is a significant problem in the American GIS community, it is safe to assume

that this is even more of an issue on a global level.

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(2.1.4) Distributed Generation (DG) RES technologies generally rely on a more distributed model of generation than

conventional sources because of capacity and intermittency constraints. Even very large wind

farms have significantly lower capacity factors than thermal plants, while intermittency issues

mean that distributing installations geographically is generally beneficial. Distributed generation

(DG) can refer to either relatively low capacity geographically dispersed commercial generating

plants or consumer-level installations. Examples of consumer DG include solar panels on a

home or business, solar water heaters, or diesel-powered generators: some use renewable fuels

and others do not. On-site DG systems allow for cost-savings by decreasing inefficiencies

associated with transportation and distribution (Carley 2009). Additionally, they can increase the

security, reliability, and availability of electric systems, and reduce peak demand. Under net

metering conditions, consumers can sell excess power generated on-site back to the utility. Most

proposed wind farms fall into the medium to large DG category of 5-300 MW capacity. While

there is some debate about whether installations of this size truly qualify as DG, the factors that

encourage the development of DG are also likely to influence the development of these larger

scale installations.

Power providers using public utility-ownership models are generally less likely to deploy

DG than are privately owned power providers of public utility models, cooperative and

municipal utilities are least likely to develop DG capacity. Higher levels of DG adoption are

correlated with higher summer peaks, higher electricity prices, and higher household income.

Additionally, utilities operating in deregulated markets or following net metering protocols are

more likely to adopt DG (Carley 2009).

Carley (2009) found that in the United States, a negative correlation exists between

Renewable Portfolio Standards (RPS) and levels of DG capacity. This may indicate a decision

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by utilities to prioritize investment in large-scale renewables over DG, leading to direct

competition between large-scale RES and small-scale DG. Further consideration of the

connections between DG and RES developments – some, but not all DG uses RES sources – and

the interactions between large and small-scale installations is necessary.

In general, scholarly literature addresses the known technical challenges relating to the

deployment of wind installations although new challenges are frequently discovered. A number

of case studies analyze the wind potential in various regions or suggest the ideal technical

solution for overcoming current limits to RES market penetration. Most pieces include an

assessment of the economic costs associated with their proposals. Despite this, RES research is a

relatively new field, and a number of issues regarding wind integration and grid design still

require further research. New discoveries related to smartgrids, turbine design, transmission

technology, wind integration, and storage technologies are all likely in the near future. This

thesis draws on the current body of knowledge regarding several technological and economic

issues, but it is important to acknowledge that research is ongoing and new developments are

inevitable: the body of knowledge is still extremely limited in several areas. Additionally, little

of the research done about the impact of the social and political environment on technological

development and RES deployment discusses wind energy specifically: generally scholars who do

mention these factors in the context of RES merely state that it is a potential obstacle to further

development.

(2.2)Economic Aspects A number of factors influence the economics of developing wind installations including

the current electricity generation portfolio, relative costs per kWh, government support and

existing infrastructure, prices for oil and natural gas make wind energy more attractive, while

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abundant local supplies of inexpensive conventional resources, such as lignite coal, make it less

attractive. Wind energy will develop more rapidly if the EU greenhouse gas caps are strictly

enforced and the functionality of the European Union Emissions Trading System (EU-ETS),

functions smoothly. Energy demand within the EU depends on climate change regulation, the

growth rate of EU economies, consumption patterns, energy efficiency, and technology

development (Venetsanos, Angelopoulou, and Tsoutsos 2002). The level of energy demanded

influences the price that producers can charge for electricity, which contributes to the economic

feasibility of wind energy.

There are infrastructure costs associated with integrating wind-generated electricity into

an existing grid because this may require the construction of new transmission lines,

transformers, generating capacity and/or storage capacity (Georgilakis 2008). Analysis specific

to Greece suggests that the behavior of the market over the past 15 years indicates that without

the development of storage systems, further implementation of wind energy on the islands will

not occur (Kaldellis 2004). On the mainland, investing in strengthening the existing

transmission network could lower the associated costs of developing more wind installations

(Kaldellis 2004). Larger wind farms generally experience better economies of scale, making

them more profitable than smaller installations, assuming all other conditions are the same.

Academic economic research regarding RES in Greece has focused primarily on

assessing the economics of specific proposed plans, such as pumped storage plants or

interconnection with the mainland (Anagnostopoulos and Papantonis 2008; Hatziargyriou et al.

2007). Some academic research has looked at the overall situation in Greece, but much of this

work is dated and does not consider current feed-in tariffs and government support or the

deregulated electricity market (Kaldellis and Gavras 2000). Research and reports issued by

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government entities working on these issues tend to be more up-to-date and paint a broader

picture of the current economic environment for RES. International Energy Agency statistics

and annual reports by the Ministry of Development required under EU Directive 2001/77/EC,

provide a high-level overview of the economics, although they generally do not get into

theoretical assessments of the cost of future developments (Greek Ministry of Development and

Directorate General For Energy, Renewable Energy Sources and Energy Saving Directorate

2003a, 2003b, 2005, 2007; International Energy Agency 2006, 2008). The Regulatory Authority

on Energy (RAE) and the Public Power Corporation (PPC) also issue reports that include

information about both technical developments and economic conditions.6

(2.2.1) Deregulation Many countries have pursued at least partial deregulation of their electricity systems for

economic reasons. One goal of deregulation is to improve economic efficiency and reduce the

scope of the public sector (Iliadou 2009). The EU decided to pursue liberalization based on

comparisons between the liberalized markets in England, Wales, and several US states and

regulated markets of the European continent, which showed that deregulated markets were far

more cost-oriented than regulated markets (International Energy Agency 1998). A number of

theories regarding the impact of deregulation on markets and the behavior of firms exist. A

common one suggests as that institutional boundaries are redrawn, the scope of permissible

activities shifts, and incentives for behavior change (Bonardi 2004; Delmas and Tokat 2005). In

a regulated electricity sector, there is little incentive to innovate because regulators can declare

the costs associated with attempted innovation imprudent if the effort fails. Since utilities are

guaranteed a set rate of return on traditional activities, few are willing to be first movers in new

energy technologies (Delmas, Russo, and Montes-Sancho 2007). In a complete monopoly, this 6 The PPC is sometimes referred to as DEH (the Greek initials) in literature on the subject.

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means that innovation is extremely unlikely to occur because the firm faces potential government

penalties and has no competition whatsoever. Clearly, innovation is necessary in any industry

and countries should make an effort to encourage it within the energy sector, but there are also

benefits to regulation. For one, it is undesirable to encourage too much risk-taking and by

association volatility in a sector that is as essential to modern-day life as the electricity sector.

Academic and economists generally advocate for a greater openness to the energy market,

which encourages the development of private RES installations that allow system operators to

profit from the financial incentives provided by the government in exchange for taking on some

of the risks associated with the development of a relatively new field. One goal of deregulation is

to facilitate new entrants. Russo (2001) found that deregulation also resulted in the introduction

of new technologies into the utility industry. On an industry-wide level, deregulation increases

the welfare of consumers by decreasing costs and increasing levels of service (Winston 1998).

One theory proposes that deregulation results in differential strategies that allow utilities

to view ratepayers as distinct groups rather than an aggregated mass. Thus, deregulation will

create public goods as long as the participants are able to make strategic choices and demand

goods with public good consequences. After deregulation, the US energy industry pursued

numerous strategic choices and consumer demand for environmental stewardship increased.

These two factors caused green power generation to increase under deregulation, while the level

of citizen support for environmental sensitivity influenced the degree of increase. In other words,

in a deregulated electricity sector, utilities have the ability to respond to consumer demands more

easily. Since consumers are increasingly demanding renewable energy, producers are more

likely to supply it. Without consumer demand for renewable energy or some form of outside

intervention from government or elsewhere, utilities in a deregulated market would not be

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significantly more likely to pursue RES than utilities in a regulated market. Economically, it

makes no sense to pursue more expensive RES installations if there is no additional payoff for

pursuing them (Delmas, Russo, and Montes-Sancho 2007).

Private utilities are more able to take advantage of the economic benefits offered by

distributed generation than their public counterparts because they tend to have higher

transmission and distribution costs, but lower generation costs (Carley 2009).

Little consensus exists about the impact of deregulation on fuel sources and RES

development. One view is that it increases fossil fuel generation because large thermal plants are

less expensive than smaller distributed RES sources. Another view holds that deregulation

increases consumer choice, allowing for better product differentiation and more R&D funding

(Delmas, Russo, and Montes-Sancho 2007). Carley finds that deregulation encourages adoption

of DG by utilities rather than consumers (Carley 2009).

(2.2.2) Support Schemes: Feed-in Tariffs In the vast majority of situations, RES electricity is not cost-competitive with

conventional electricity. As a result, the widespread development of RES under current

conditions requires support schemes (Ringel 2006). The two most common promotion schemes

for RES in the European Union are feed-in tariffs, which are older, price-based, and more widely

used, and green certificates, which are newer, quantity-based and resemble renewable portfolio

standards in the United State. Since the conditions for RES vary dramatically across EU

countries and support needs to reflect local price and resource conditions, the EU is not pursuing

a harmonized support scheme. Instead, the individual countries are responsible for designing

their own support schemes. There is a large amount of debate about the merits of each system,

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but since Greece has opted to utilize a feed-in tariff rather than a green certificate program, this

thesis only addresses the former in depth.

The purpose of feed-in tariffs is to make RES, which are generally more expensive in the

short-run than conventional sources, economically viable. 7 The grid operator must purchase the

power from a RES generator at a price mandated by the government. The set price is higher than

the going-rate for conventional electricity in order to adequately compensate the generator for

the higher costs associated with RES, allowing them to make a profit; tariff levels usually vary

based on the type of energy purchased. Generally, the transmission system operator passes along

the cost of the feed-in tariff to final consumers. Under a regulated market, this does not pose a

problem because all consumers pay the same price for electricity. However, as liberalization

occurs, consumers are likely to opt for the lowest-cost supplier, which is generally the supplier

with the lowest share of RES generation. This puts grid operators in areas with high RES

penetration at an economic disadvantage. In Germany, this problem was resolved by creating a

national compensation scheme that distributed the costs associated with feed-in tariffs across all

transmission operators based on the annual national average feed-in of RES electricity (Ringel

2006). In Greece, relatively little liberalization has occurred among both generation and

transmission operators, so this is unlikely to be a major issue in the near future.

In general, feed-in tariffs encourage the rapid development of RES sources when they are

set at a sufficiently high level. However, predicting the exact quantity of RES generation that

will result from a feed-in tariff is difficult because the mechanism relies on price and not quantity.

If the tariff is not set appropriately, then either RES development proceeds more slowly than

hoped or RES producers secure windfall profits at the cost of consumers. Some EU countries are

7 Conventional energy sources are generally less expensive than RES because the price consumers pay does not take into consideration the cost of negative environmental effects and because the technologies used in the generation process are more mature than are those surrounding RES.

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also worried about the compatibility of feed-in tariffs and a common EU energy market (Ringel

2006). Again, this is less of a concern for Greece than for other EU countries because Greece is

geographically remote from other EU countries, making power sharing difficult.

(2.2.3) Carbon Pricing and Trading As a result of the Kyoto Protocol, carbon pricing and trading schemes have gained

prominence in recent years. In 2003, Directive 2003/87/EC established the European Union

Emissions Trading System (EU-ETS), setting the trial period from 2005-2007. The goal of EU-

ETS is to allow Member States to meet their CO2 reduction targets in a cost-effective manner.

The system covers several CO2-intensive industries, including power generation. Installations

covered under the system must surrender allowances equal to their verified emission; the total

number of allowances issued annually in each Member State is set through a National Allocation

Plan. Combustion, primarily for electricity generation and heating purposes, accounts for 70% of

EU allocations (Alberola, Chevallier, and Chèze).

RES installations can reduce the cost associated with purchasing CO2 certificates

through EU-ETS by decreasing the amount of electricity a member state generates using fossil

fuels. This increases the appeal of RES installations because it effectively raises the cost of

conventional electricity generation. Installing PV to replace hard coal and lignite power

production, allowed Germany to avoid an estimated cost of 0.076€/kWh because of reduced

emissions of CO2, NOx and SO2 have been estimated at (Lewis, Sharick, and Tian 2009). While

there are a number of factors that influence how efficiently EU-ETS operates, its mere existence

is extremely influential for RES development. Putting a price on carbon sends a signal to

investors and encourages the development of lower-carbon energy sources. Additionally, the

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fact that an EU Directive mandates participation in EU-ETS increases the incentive for

individual Member States to enact laws that comply with the system.

Outside consequences, however, do not appear to have successfully pushed Greece

towards participation in these systems. In May 2008, the United Nations removed Greece from

the emission trading system created by the Kyoto Protocol because the country had not met its

reporting obligations. After Greece ratified the Protocol, they outsourced responsibility for

generating compliance reports to the National Observatory of Athens. This contract expired in

April 2007 and the Greek government made no effort to ensure that reporting continued to occur.

In January 2008, after attempting to figure out who was responsible for the reports and receiving

evasive answers, the UN announced that it would refer Greece to the disciplinary committee

because the country was not using a reliable system to measure carbon emissions. Greece is the

first of the 141 signatories the UN has punished for failing to comply with the Kyoto Protocol

(Lialios 2008).

(2.3) Government Attitudes and Legislative Framework Greece, as an EU Member State had a certain level of obligation to meet the targets set

for RES penetration by Directive 2001/77/EC, despite the fact that the targets were technically

indicative, not mandatory. The International Energy Agency believes, and language in Greek

laws confirms, that EU directives have served as an incentive for the Greek Parliament to issue a

number of laws aimed at harmonizing Greek law with EU directives (Greek Ministry of

Development, Directorate General for Energy, and Renewable Energy Sources and Energy

Saving Directorate 2007; International Energy Agency 2006). As a result, Greek politicians are

under significantly more pressure to act than would have been the case if Greece were not a

member of the EU. However, the literature on the effect of EU membership on Greek action on

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climate change and related electricity issues is minimal, particularly with regard to literature

specifically about wind energy development.

The fact that the new Directive relies upon mandatory rather than voluntary targets

indicates that the European Parliament believes that outside pressure combined with penalties for

noncompliance is likely to be successful in promoting further and faster development of

renewables; Wiser et al. agree that voluntary targets provided insufficient incentives for action.

Challenges surrounding any top-down system include setting fair and achievable targets,

collecting reliable data, and considering local stakeholder positions. Some suggest that a clear

process for reporting and reviewing progress towards the targets, combined with appropriate

policy responses, is essential for success (Wiser et al. 2008).

(2.4) Social Aspects Scholars increasingly believe that social attitudes towards wind turbines on a local level

play a large role in determining the success of any particular wind installation. If the public does

not support an installation, the permitting and approval process can be significantly more costly

and drawn out, inhibiting the possibility of beginning or completing construction of the wind

farm. As such, it is necessary to assess prevailing attitudes towards the environment in general,

and wind turbines in particular in any area where development is under consideration. Negative

responses to wind turbines have been seen around the globe, leading to an increasing body of

literature addressing the “not in my backyard” phenomenon (NIMBYism). The proposed

development of a large offshore wind farm near Cape Cod, MA, United States represents one of

the most studied examples of opposition to wind farms, but similar situations have occurred

around the globe involving both land and offshore installations (Firestone and Kempton 2007).

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In an attempt to determine the causes of opposition to wind farms, scholars have

conducted several studies. Recurring themes are the visual-aesthetic impact of the installations,

concerns about the economic impact of the installations, and concern about the environmental

impact of the installations. In the case of Cape Cod, opposition focused on the fact that the

installation would be offshore: it was the first offshore installation proposed in the United States.

Using a large survey of local residents, Firestone and Kempton found that 24.6% supported the

project, 42.4% opposed it and 33% had not yet formed an opinion. When the direction undecided

respondents were leaning in was considered, 43.8% supported it, 55.5% opposed it and 0.7%

were still undecided. An overwhelming majority of the population believed negative impacts

would occur and could name specific impacts. Telling opponents that the project would result in

lower electricity rates, improved air quality, and job creation, would not harm marine life or the

fishing industry, and that Cape Cod would consume the power generated by the turbines

increased support for the project. Telling supporters that the installations would harm bird life

and be highly visible from the shore resulted in decreased support. Only 4% cited climate

change as a reason for supporting the installation and 41% believed widespread implementation

of wind farms would have no impact on stabilizing global climate change, showing the gap

between scientific literature and common knowledge. Supporters tended to be better educated,

younger and more likely to own their own home, while opponents were more likely to earn more

than $200,000 annually and to expect to see the installation during their daily routine. Support

rose by 36% overall if the project was framed as the first of 300 similar projects, showing the

importance of articulating a large-scale vision. Additionally, support rose if the local

government, as opposed to a private developer, built the installation. Firestone and Kempton

conclude that support for offshore wind is possible in the United States and that both better

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understanding of positive and negative environmental impacts and increased public control over

the development of wind installations would enhance it. Installations visible from the shoreline

can enjoy public support if the public is aware of impacts on marine and avian species and

someone articulates a vision for large-scale implementation (Firestone and Kempton 2007).

Zoellner, Schweizer-Ries, and Wemheuer examined the public acceptance of renewable

energy in Germany using both qualitative and quantitative survey tools and focusing on large-

scale photovoltaic (PV) installations. They found that the perceived positive economic impact of

an installation had the highest correlation with positive attitudes toward renewable energy.

However, the degree of knowledge surrounding the economic impact of the proposed

installations studied was very low: in other words, most people were not sure what the impact

would be, but if they thought the impact would be positive, they were likely to support the

installation. There was also a statistically significant correlation between the perceived fairness

of the process and acceptance levels. Surprisingly, perceived landscape changes did not reach

statistical significance in the sample, although it was the second best predictor of acceptance.

Based on these findings, they make several recommendations. First, plans should always

consider the perceived fairness of the process. Next, effort should be made to ensure that people

do not feel left out of the planning or decision-making processes. Interaction between the RES

developer and the community can increase support, as can the perceived support of local

authorities. Lastly, clear communication is essential to ensuring accurate understanding on the

part of all stakeholders (Zoellner, Schweizer-Ries, and Wemheuer 2008).

Wind turbine installation in Greece has increased rapidly in recent years and has been

concentrated in a few regions, rather than distributed evenly throughout the country. As a result,

there has been a serious reaction against the turbines in these areas on the part of the local

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population (Kaldellis 2005). Studies concerning local attitudes in areas with high wind energy

potential reveal acceptance of existing wind parks, but resistance to the construction of new ones.

In addition, the residents of the Greek islands are generally more amenable to wind installations

than the population on the mainland, despite the fact that one objection frequently raised about

wind turbines is the perceived impact on tourism, which is a major source of income for many

Greek islands. Kaldellis believes this is because islanders are more aware of the negative local

environmental effects of conventional generation, experience decreased quality of life due to

energy sources, and are more open-minded because of the type of jobs they hold and their

contact with foreigners than are their mainland counterparts. Unfortunately, there is a small

minority of the population that adamantly opposes wind turbine installations regardless of

potential economic benefits, representing a major hurdle to building future wind farms (Kaldellis

2005). Wind turbines do not always negatively impact tourism: in some parts of the globe, the

installation of wind turbines has actually improved tourism by allowing the area to promote itself

as a green tourism destination.

Discussion of forward movement in the realm of wind energy tends to focus on technical,

economic, and occasionally legislative solutions. Acknowledgement of the importance of social

acceptance is common, but proposals to increasing public acceptance of wind turbines in areas

where they currently meet with resistance are rare. Additionally, one of the few studies of social

attitudes toward wind turbines decided to exclude the island of Crete, where acceptance is

greater than 90% because the author did not believe such a situation does not represent an

interesting academic endeavor (Kaldellis 2005).

On the other hand, Michalena and Angeon decided to assess the social acceptability of

RES on Crete using an economic academic approach precisely because Crete is a success story.

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Their research concluded that both internal factors such as local acceptance and external factors

such as the macrostructure of an area play a role in the successful development of RES. The

more easily actors fit into the local atmosphere, the more likely it is that they will succeed in

developing shared goals and making collective decisions, both of which are essential to the

sustainable diffusion of RES technology. Social ties play a key role in the collection and

diffusion of information, which allows agents to implement RES projects. This view contradicts

the view often presented by literature on RES development, which tends to focus on the issues of

supply and demand for energy, rather than social or institutional factors. Michalena and

Angeon’s recognition of the importance of local context is representative of a growing trend.

Additionally, they emphasize the challenges surrounding data collection created by public

servants who are reluctant to participate in the data collection process and acknowledge that

there is a lack of scientific data surrounding RES in many locations; both create and indicate

problems extending beyond the social realm. Michalena and Angeon conclude that RES

technologies are likely to succeed when “social norms are embedded in a dense and cohesive

social network but are facilitated by a coordinating structure supported by a favorable legislative

context […] which recognizes the importance of the local municipality level” (Michalena and

Angeon 2009). Trust is an essential element to creating these conditions.

(2.5) Environmental Aspects The installation of wind turbines and the associated construction of transmission lines

generally have positive global environmental impacts through climate change mitigation and

reduction of pollution resulting from the combustion of conventional fuels, but slightly negative

local environmental impacts because of the potential for ecological degradation through

development. With mountaintop installations, minimizing erosion is a concern, and with all

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installations, the impact on local flora and fauna should be considered. Birds are particularly

vulnerable (Langston and Pullan 2004). As an EU country, Greece is obligated to comply with

the Bern Convention, which provides for the protection of migratory birds within EU boundaries.

Assessment of the local impact of any wind farm is an important element of determining its

viability; this is general achieved through the environmental permitting procedure. Substantial

documentation of the global benefits of reducing greenhouse gas emissions by increasing RES

electricity generation has been produced, the most notably of which is from the Inter-

governmental Panel on Climate Change.

For the most part, both the European Union and Greece appear to have reached the tacit

conclusion that the benefits of a transition to RES generally outweigh the environmental impacts

of RES installations. As a result, the Greek government has attempted to expedite the

environmental permitting process, although local officials still have a voice during this part of

the process. Of course, it is still best to avoid environmentally sensitive areas and some level of

environmental impact assessment is necessary. However, the apparent consensus about the

importance of RES development renders extensive discussion of environmental impacts largely

irrelevant to the current technical and policy debate. Most literature refers to environmental

concerns only with respect to the permitting procedure; even government reports have little to

say on the matter. As a result, this paper excludes significant discussion of environmental

concerns: the author assumes that the benefits of any approved installation outweigh any

potential environmental degradation.

(2.6) Inter-disciplinary Works While a significant amount of research exists in the individual fields that relate to the

feasibility of implementing wind turbines in various settings, most analysis touches on only one

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field. Attempts to explore the interaction between fields generally limit themselves to assessing

the economic implications of technical or social challenges. There is little to no work that

assesses all relevant fields in order to determine which aspects present the greatest challenges to

wind power and which are most likely to encourage its implementation. Such overarching

analysis is vital to fully understanding the actions necessary for the successful development of

RES anywhere in the world. Zoellner, Schweizer-Ries, and Wemheuer recognize that integrated

strategies are required to implement RES on a large-scale: they believe consideration of human,

technological and environmental aspects and interactions is essential. As a result, they advocate

for a more process-oriented understanding of the field (Zoellner, Schweizer-Ries, and Wemheuer

2008). However, this approach has not been widely adopted.

Giatrakos, Tsoutsos, and Zografakis attempt to address some of the challenges associated

with integrating multiple factors into one assessment by using an accounting framework software

package known as LEAP. This technology allows them to combine the assessment of energy and

environmental scenarios and looks at the economics of various propositions, but social aspects

receive no attention (Giatrakos, Tsoutsos, and Zografakis 2009). Efforts of this sort are becoming

more frequent, as the importance of understanding the whole system surrounding RES

development becomes more apparent. However, a comprehensive modeling tool is extremely

difficult to design, especially because the field still lacks a full understanding of many of the

interactions between factors. As research in each individual field continues, integrated models

will improve as well.

Najam and Cleveland also recognize the importance of an integrated approach. They

suggest that energy issues and sustainable development can be understood through economic,

social, and environmental lenses. Conventional energy production stresses the environment at

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global and local levels, but energy is also associated with economic growth, which allows for

improved quality of life. This integrated view of the effects of energy production provides a

useful illustration of the complex interaction among the fields (Najam and Cleveland 2003).

Ministry of Development reports that include predictions of future scenarios based on

different courses of action represent a step towards interdisciplinary assessment, as do IEA

reports that include recommendations for continued forward movement in the country’s energy

sector: these reports typically address technical, economic, and legal concerns (Greek Ministry of

Development and Directorate General For Energy, Renewable Energy Sources and Energy

Saving Directorate 2003a, 2003b, 2005, 2007; International Energy Agency 2006). However,

social concerns, which are probably the most enigmatic, go largely unaddressed. Any truly

complete proposal or analysis of wind energy must include an assessment of all relevant fields,

rather than the few that are easiest to assess.

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(3) Methods Greece provides an interesting case study because it represents a diverse range of

geographic conditions within one set of legislation. The methodology used to assess the current

situation of wind energy was primarily qualitative and emphasized the importance of applying a

holistic approach to these issues. In the course of assembling this thesis, the author encountered

a number of challenges. As a result, this thesis has some limitations in terms of both the content

discussed within it and the general applicability of its findings on a global level.

(3.1) Selection of Greece and Regions The author chose Greece as the focus country for a number of reasons. Most importantly,

the country has several regions with high wind potential, allowing wind energy to compete

economically with conventional power sources more easily. The diverse geography of the

country means that different regions face very different challenges when it comes to

implementing wind power. However, since the same set of national laws covers all three regions,

it is possible to assess the effectiveness of specific regulations under different economic,

technical and geographic conditions. The presence of both a large interconnected grid and

autonomous grids of varying sizes allows for an assessment of the influence demand size and

grid infrastructure have on wind penetration. The conclusions drawn about the technical and

economic challenges to developing wind power in these varied settings can be applied on a

global scale to regions that share similar geographic and infrastructure characteristics. In essence,

Greece represents a wide variety of conditions related to wind energy in a microcosm. Because

the regions share similarities as well, the process of discerning which factors are most influential

is somewhat simpler than it would be in cross-country comparisons.

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Figure 2: Administrative Regions of Greece and Selected Cities

Greece has encountered a number of political and social deterrents to implementation:

analysis of these challenges provides knowledge about the human factors that influence the

installation of wind turbines. While political systems and national laws are the same across the

country, social attitudes tend to vary greatly, allowing for exploration of why such variation

exists within one country. Conclusions drawn about human interactions with wind power are less

easily generalized than those drawn about technical challenges because they rely on complex

interplay between social, political, economic, and cultural factors that is unlikely to be identical,

or even somewhat replicable, across a broad range of countries. However, there is a universal

value in studying specific incidences of how these factors influence the development of wind

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resources: methodology and general conclusions are applicable on a broader basis. For example,

it is possible to apply conclusions from Greece or the three regions to other regions with similar

energy portfolios worldwide: this provides a mechanism for predicting the influence of the

current energy portfolio on future developments. Since Greece is bound by EU regulations, it

also provides an example of how supra-national and intergovernmental organizations can

influence the development of renewable energy sources through both legislation and the creation

of carbon trading systems.

Lastly, the author’s personal experience in Greece played a role in the country’s selection.

She took a course entitled “Nature Conservation in Greece and the European Union” in Athens.

Lecture material touched on the degree of variation in environmental attitudes and actions across

EU countries: in general, Greeks scored much lower than did other EU citizens, yet their

renewables targets under Directive 2001/77/EC are among the highest in the EU. She observed

Greek patterns of energy use firsthand, noting that despite showing low levels of

environmentally motivated action, Greeks are significantly more sparing in their use of energy

than are Americans. The obvious explanation is that the lower income levels and higher energy

prices found in Greece drive conservation efforts and reduce consumption. However, the

differences seemed to go beyond simple economics, and involve core elements of the culture,

prompting a desire to explore the causes of these variations in greater depth. In addition, the

author sighted numerous wind installations during her travels in the country: the most notable of

was one location in the Peloponnese where three separate wind installations are visible. Another

intriguing factor was the contradictions between stated Greek opinions and beliefs about wind

turbines, the facts, and the author’s personal opinions about wind installations. The media tends

to portray islanders as extremely opposed to wind installations, which contradicts scholarly

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findings. Additionally, opposition from the islanders is illogical if one believes climate change

will result in sea level rise, since the islanders are among those who would be most affected if

sea levels rose. Lastly, many Greeks express the sentiment that wind turbines are a scar on the

landscape: perhaps it is simply a generational gap, or the effect of studying environmental issues,

but the author has always found turbines to be rather picturesque, in part because of what they

symbolize. Combined, these factors created a desire to delve further into the workings of the

Greek electricity sector.

The study is broken down into three regional studies: (1) the Cycladic Islands – a group

of small islands primarily powered by autonomous systems; (2) Crete, the largest autonomous

power system in Greece; and (3) the interconnected system, composed of the mainland, the large

island of Euboea, and a handful of small islands near the coastline of the mainland (Figure 1).

These three diverse locations allow for the study of the deployment of RES under various

combinations of influencing factors, which means judgments can be made about what constitutes

a favorable context for the development of wind energy. Since many places around the globe

replicate the geography of the three regions, some conclusions are applicable to other parts of the

world with similar conditions. While some factors are the same across two or all of the regions,

others vary in each region. By breaking the country down into three regions, analysis of the

challenges on a national and regional level is possible, allowing for a more accurate assessment

of the current situation. The regional study method allows for an in-depth holistic analysis of the

situation in each region, incorporating historic, technical, economic, and social factors, while a

countrywide assessment allows for the exploration of common factors such as entities in the

energy sector, the national legislative and regulatory framework, and EU obligations. The goal

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of this analysis is to provide an assessment of the path forward for Greece; it should also be

generally applicable to other countries or regions with similar characteristics.

The regional studies do not follow the format used in most prior academic work in the

field of selecting a potential solution for an area and assessing its feasibility. Instead, the first

step is an exploration of the current conditions in the region from multiple facets. Next, the

Findings section (Section 5) presents a summary of the overall challenges facing the region and

presents a variety of potential solutions based on these findings. The end result is an assessment

of the primary constraints to further development of wind energy in Greece and

recommendations about the best methods for circumventing or removing these constraints. The

assumption is made that under current conditions Greece will not be able to reach its targets for

2010, a conclusion which is supported by both scholarly research, Greek government documents

and EU documents (Directive …/2009/EC; Greek Ministry of Development, Directorate General

for Energy, and Renewable Energy Sources and Energy Saving Directorate 2007). Thus, this

paper focuses on identifying the challenges that prevented Greece from meeting the 2010 targets

and suggesting methods of resolving these challenges so Greece will succeed in meeting the

2020 targets.

(3.2) Rationale for a Holistic Approach Existing research tends to focus either on only one aspect of wind energy, or on the

correlation between two aspects, such as economic benefits and social opinion or technical

challenges and economic competitiveness. However, in order to fully comprehend the

challenges and potential benefits of implementing wind power in the three regions,

interdisciplinary analysis is necessary. Energy issues are generally resolved through a

combination of economic, social, technical, and political pressures. In addition, most of these

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factors interact with one another: for example, geography influences the energy portfolio of each

region, which influences the economic viability of wind energy relative to current energy sources,

which influences the social attitudes toward wind installations. This is just one example of the

many possible interactions between the variables assessed in this study. Any plan for continued

movement towards RES targets must address all of these issues adequately in order to be

successful. Thus, the selection of a holistic methodology represents an attempt to fill a hole in the

existing body of literature by tying together multiple facets of the energy world into one cohesive

analysis rather than several disparate assessments.

(3.3) Description of the Regions The three regions chosen share some common characteristics. All are subject to the same

European Union policies and can potentially participate in the EU emissions trading system (EU-

ETS). Additionally, they are all subject to national law, and national political attitudes toward

wind energy influence the ease of installing turbines across the country. Also, the state-owned

monopolistic Public Power Corporation (PPC) is important in all regions since it is the primary

electricity supplier for the country. The same is true for the Regulatory Authority for Energy

(RAE), which oversees regulation of energy markets across the country as well as issuing

recommendations regarding the current state of the energy market and future actions. Because

legal frameworks are the same in all regions, legally mandated feed-in tariffs and government

subsidies are relatively constant across the regions, although the latest legislation makes some

distinctions about the level of assistance RES installations can receive based on their geographic

location (Table 1).

Table 1: Regional Characteristics of Cycladic Islands, Crete, and Mainland Greece Cycladic Islands Crete Mainland Greece Primary Power Sources Oil-based fuels Fuel oil; diesel; natural

gas Lignite coal

Feed-in Tariffs Yes Yes Yes

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Significant season peaks Yes Yes No Rejection constraining further penetration

Yes Yes No

Population (2001) 119,500 over several islands

630,000 9,641,200

(3.3.1) Cycladic Islands Relatively low demand and a high degree of isolation characterize the Cycladic Islands.

They are not fully connected to the national grid or each other, although some interconnection

does exist. The islands currently obtain most of their electricity from imported oil in the form of

diesel or fuel oil, so the cost of oil is a very influential factor. The economies of most islands

rely primarily on tourism, so maintaining that source of income is very important. Despite

concerns about potential negative impacts of wind turbines on the tourism industry, research

shows that attitudes toward wind installations are more positive on the islands than the mainland

(Kaldellis 2005). Transmission is only a minor issue, as wind installations would be located very

close to the site of consumption, but technical limits to the amount of wind energy the grids on

these islands can absorb are extremely important. Siting concerns involve a number of factors,

including deciding whether to implement on or offshore turbines,8 conflicting land-use values,

proximity to transmission capacity, wind potential, and proximity to tourist sites, particularly

ancient monuments. Potential barriers include technical limits to grid penetration and the

necessity of reserve capacity: the small nature of these electricity systems means that these

concerns are particularly salient. Storage technologies, among others, offer work-around

solutions to the capacity issue and may have additional benefits.

Most of the unique attributes of the Cycladic Islands stem from the following factors: (1)

they are small isolated grids that often rely on only one power plant; (2) demand on the islands

has increased dramatically in recent years; (3) demand varies greatly on a seasonal basis because

8 To date, Greece does not have any off-shore wind farms.

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of participation in the tourism industry; and (4) the current primary source of electricity

generation is oil.

(3.3.2) Crete Crete faces a different set of challenges. The larger area, a fairly well designed island-

wide grid and higher levels of demands allows for greater integration of intermittent energy

sources such as wind in terms of absolute capacity than is possible on the Cycladic Islands. The

percentage of power that the island can obtained from wind energy on an annual basis is

relatively constant across all regions because of the current technical constraints, although

geographic diversity can increase wise levels of penetration: this gives larger grids an advantage

over smaller ones. Concerns about on-shore versus offshore siting remain an issue. Storage

solutions are also likely to be necessary for continued increases in RES penetration on Crete.

Transmission issues are not particularly relevant on Crete, as the current grid infrastructure is

relatively well designed. The larger area allows for the minimization of potential visual impact

on tourist sites. The current energy generation composition remains relevant. Crete represents a

fairly successful example of RES development, particularly for wind energy: the island has some

of the highest penetration levels in the country and social acceptance of both new and existing

wind turbines is extremely high. Thus, the social aspects of Crete are particularly intriguing.

Crete has also experienced a very rapid increase in electricity demand, reaching an annual

increase of about 8% in recent years.

Crete’s unique attributes relate to: (1) its position as the largest autonomous system in

Greece; (2) a well-designed grid that requires little change to achieve the incorporation of RES;

(3) high existing levels of RES penetration; (4) rapid increase in power demand and (5) strong

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social support for wind energy and RES. For reasons that are not apparent, economic data for

Crete are particularly difficult to obtain.

(3.3.3) Interconnected Greece (Mainland) The primary characteristics of interconnected, or mainland, Greece are an abundance of

lignite coal resources and its transmission grid. This system serves the majority of Greece’s

population and accounts for the bulk of electricity demand. Electricity demand has grown over

the past 25 years, although the growth rate is beginning to slow. Public opinion on the mainland

is generally more negative than on the islands because existing installations went up rapidly on a

large scale in a small number of locations (Kaldellis 2005). As a result, siting must take into

consideration the geography of the region and wind potentials, as well as public perceptions.

The existence of abundant lignite coal that the state-owned PPC can buy at low prices from the

state-owned mining companies means that making wind energy economically competitive is

likely to be difficult. However, larger wind installations are possible on the mainland than on

Crete or the Cycladic Islands: this allows producers to achieve higher economies of scale. New

transmission lines will likely be needed in order to connect sites with high wind potential to the

existing grid, and the state of the current grid must be evaluated to determine how easily

intermittent RES can be integrated. Storage technologies are not currently significant issues on

the mainland because market penetration of RES is still well below the currently possible levels

of 20-30%. However, storage will play an important role in the long-run.

The defining factors of the mainland regional study are: (1) a large transmission system

with high level of peak demand and less seasonal variation than the islands; (2) abundant lignite

coal supplies which ensure a steady supply of relatively inexpensive electricity; (3) fairly low

levels of wind penetration; and (4) extreme social resistance to wind installations in many

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regions with the highest wind potentials. Penetration constraints are a concern only in terms of

local grid constraints near wind installations: the system as a whole is nowhere near saturation.

(3.4) Data Sources The analysis used is almost exclusively qualitative, with the exception of quantitative

comparisons of economic costs of various energy sources, and of levels of demand, energy

system capacity, and RES penetration across regions. The emphasis on qualitative assessment

over quantitative comparison stems from a desire to address multiple aspects of the issue, many

of which do not readily lend themselves to quantitative comparison: this concern applies most

directly to social and political aspects, but issues with data standardization across regions also

make it difficult to compare technical and economic matters quantitatively. The analysis involves

synthesizing existing data, which only addresses one topic, in order to create an overarching

assessment situation. EU and Greek laws and proposals, as well as associated government

reports, are key primary sources. They are particularly relevant for assessing political pressures

and the motivation for politicians to advocate for or against new wind installations. The author

used secondary academic sources on aspects of wind power unique to Greece to investigate

social attitudes, technical challenges and economic competitiveness to the siting of turbines.

Some public opinion data come from generalized sources, but because of cultural influences,

sources specifically focused on Greece were given greater weight. The author used a global body

of literature to assess general technical issues, such as determining ideal sites for turbines,

maximizing efficiency, and connecting to a transmission system. Economic pressures and the

influence of the current energy composition were assessed primarily based on Greece- or EU-

specific literature, although some general literature was used when looking at the economic costs

of proposed technical solutions to RES penetration.

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(3.5) Challenges and Limitations Based on these data sources, the largest challenges were determining which elements of

general documents were relevant to Greece and integrating the various factors addressed into a

cohesive analysis. In addition, the regional study methodology means that the conclusions

drawn in this study may not be directly applicable to situations in other locations because no two

regions are identical. The global energy landscape is changing rapidly, making up-to-date

analysis difficult, especially because quantitative data sets are often dated. Additionally, data sets

are not always broken down along regional lines, making it difficult to accurately characterize

the energy portfolio of the regions. Often, there is no standardization across regions of the years

for which regional data sets are available. Relative cost analysis is also difficult, particularly in

the island context, given the extreme fluctuations in the price of oil in 2008. While this thesis

addresses the influence of concerns about declined tourism, it does not include an assessment of

the actual impact of turbines on tourism.

While in Greece, the author struggled to create connections with those influential in

implementing wind power. The relatively laidback culture meant that the best efforts of the

author were insufficient to succeed in making contacts and arranging meetings with influential

players in the field within the limited time available. In addition, the language barrier and limited

meaningful interaction with the Greek population prevented representative surveying of social

attitudes towards renewable energy. Information obtained was limited to informal one-one-one

conversations with educated staff members of the study abroad program of an American

university. Many non-EU data sources are available only in Greek, or have a more limited

selection of data in English, making some of the social and technical analysis less than complete.

Many potentially useful documents were available only in Greek, forcing the author to rely on

the interpretations presented by others in English pieces as opposed to a first-hand assessment of

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the implications. However, an extremely basic knowledge of the Greek language did prove

helpful in interpreting maps and the understanding of Greek culture and geography gained while

abroad was extremely useful throughout the research process.

Lastly, the decision to organize this paper into topical subsections while pursuing an

interdisciplinary analysis often made it difficult to determine which category was the best fit for

a piece of information. The author’s best judgment and scholarly convention were used to

resolve these questions, but there are several pieces of data that could have easily been placed in

different sections. For example, the author generally categorized laws that set up the economic

support framework under the legislative and government section, but the economics sections also

touched upon these laws. As a result, there is some repetition across sections. The difficulty of

determining the appropriate category for some pieces of information illustrates the challenges

surrounding an attempt to analyze just one aspect of wind energy and emphasize the importance

of interdisciplinary approaches in truly understanding the field.

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(4) National and Regional Studies This section opens with an assessment of countrywide factors to establish an

understanding of the overall situation in Greece. It addresses both intra- and inter-national

influences. After establishing the basic facts and introducing the main government-related

players, it presents regional studies of the Cycladic Islands, Crete, and interconnected Greece.

Each regional study examines energy demand, current energy sources, wind potential, economic

factors, and social and political factors.

(4.1) National Study – Countrywide Factors A number of factors will influence how Greece decides to meet its EU targets: this

section examines the factors that are constant across the country, although the regional impact

may vary some because of interactions with factors that differ across the regions. These

countrywide factors stem primarily from the legal and bureaucratic framework of the country.

European Union membership and legislation has been a significant driving force in the

development of RES, particularly wind energy, in Greece. Additionally, the Greek government

and associated legislation is responsible for the laws governing the development of RES: these

do not vary based on regions, although some regional variation in tariffs and subsidies for new

RES constructions does exist. The Public Power Corporation (PPC), the Hellenic Transmission

Systems Operator (DESMIE), the Ministry for Development, the Regulatory Authority for

Energy (RAE), and the Centre for Renewable Energy Studies (CRES) are the main players in the

Greek energy industry. The PPC serves as the primary generator, while DESMIE serving as the

operator of the interconnected grid. The Ministry of Development is responsible for issuing

permits for the development of the energy system, while RAE is an independent administrative

body responsible for issuing recommendations to the Ministry of Development regarding the

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issue of permits and other regulatory affairs. CRES works on technical challenges surrounding

RES development and assists RAE in assessing technical components of proposed

recommendations.

(4.1.1) Basics about Greece Greece is home to approximately 11 million people. The population is predominantly

located in urban areas: approximately 35.5% lives in or around Athens. The two primary load

centers are Athens and Thessaloniki, the two largest cities in the country. Greece has over 2,000

islands that receive their power from about 35 small autonomous electricity grids. Some grids

serve multiple islands, and not all islands are inhabited or electrified on a commercial scale.

Electricity load on non-interconnected islands accounts for about 8% of the country’s total

electricity demand (Iliadou 2009).

Currently, lignite coal is Greece’s primary fuel for electricity generation. In 2007,

estimates predicted that Greece would burn 70 million tons of lignite coal, generating 50.5% of

the total energy consumed (Greek Ministry of Development, Directorate General for Energy, and

Renewable Energy Sources and Energy Saving Directorate 2007). Imported oil, used mainly on

non-interconnected islands accounted for 13%, imported natural gas accounted for 22.5%, large-

scale hydroelectric plants produced 4.8%,9 all other RES produced 3.6%, and the remaining

5.6% was net imports (Greek Ministry of Development, Directorate General for Energy, and

Renewable Energy Sources and Energy Saving Directorate 2007). These numbers reflect the

relatively newness of initiatives promoting RES in Greece and the abundance of inexpensive, but

highly polluting lignite.

9 Annual hydroelectric generation numbers vary based on weather patterns and rainfall in a given year. In 2007, production was only expected to reach 3 TWh, while in 2006 it exceeded 6 TWh. The annual average is 4.16 TWh (Greek Ministry of Development, Directorate General for Energy, and Renewable Energy Sources and Energy Saving Directorate 2007).

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Lignite has a relatively low-energy density for a fossil fuel and emits more particulate air

pollution and carbon dioxide per kWh than other forms of coal. Because of the high weight to

energy generated ratio and the cost of mining the coal, it is economically impractical to transport

and is primarily used in steam-based electric plants near the point of excavation (Geography in

Action 2008). Greece is the second largest producer of lignite in the EU and the sixth largest in

the world (Kaldellis, Zafirakis, and Kondili 2009). The large deposits found within Greece and

the fact that the government allowed the state-owned Public Power Corporation (PPC) almost

exclusive access to the fuel at very low prices means there was little financial incentive for PPC

to explore alternative fuels on its own (Associated Press 2005). Since PPC owns and operates

90% of Greece’s generating capacity, their decisions heavily influence Greece’s overall energy

portfolio (Hellenic Wind Energy Association 2008). However, a recent EU ruling found that the

arrangement between the state-owned mines and PPC violated anti-trust laws, and stated that the

government must “allow rival power companies access to at least 40 percent of available lignite

resources from the state, which controls nearly all the abundant deposits” (Associated Press

2005). Numerous scholars have explored the reasons behind lignite’s prominence in the Greek

electricity sector and the positive and negative consequences of high levels of lignite-based

generation. Despite the well-documented negative local environmental and health impacts of

lignite combustion, there are a number of convincing reasons for continuing to use lignite as a

power source in Greece. The supply chain is entirely domestic, increasing energy security and

providing numerous jobs to Greeks. Additionally, the abundant supply extracted by state-owned

companies provides price stability to consumers (Kaldellis, Zafirakis, and Kondili 2009).

The liberalization of the electricity market, which Greece pursued because of multiple

EU Directives, and the creation of several new entities in the Greek energy industry have

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significantly altered the regulatory climate in recent years. The process of liberalization has

moved haltingly since 1999, but it is possible to identify barriers, progress has begun to be made,

and the future of wind power utilization in Greece is promising (Papadopoulos, Glinou, and

Papachristos 2008). Greece greatly increased the competitiveness of the mainland energy market

by separating generation of power from operation of the transmission grid and by creating a

more welcoming environment for private investment. The establishment of the Regulatory

Authority on Energy (RAE), an independent energy advisory body, led to greater technical

competence in the government and a more objective decision-making structure (Greek Ministry

of Development and Directorate General for Energy, Renewable Energy Sources and Energy

Saving Directorate 2003a, 2003b, 2005, 2007). However, PPC remains under state control and

holds a dominant position in both generation and supply markets. Some claim that regulated

energy prices in Greece are lower than power generation costs: if this is true, then new entrants

are at a disadvantage. PPC serves more than 98% of Greek consumers and only two new non-

RES independent power producers exist: both operate natural gas plants on the mainland (Iliadou

2009).

(4.1.2) Role of the European Union Until late 2008, Directive 2001/77/EC “on the promotion of electricity produced from

renewable energy sources in the internal electricity market” was the primary legal factor pushing

Greece toward RES development. It requires EU Member States to “take appropriate steps to

encourage greater consumption of electricity produced from renewable energy sources in

conformity with the national indicative targets […]. These steps must be in proportion to the

objective to be obtained” (European Parliament and The Council 2001). RES generation

includes large-scale hydroelectric plants and new renewables, such as wind, solar, small hydro,

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geothermal, and biomass. The targets are based upon values presented in the Annex of the

Directive, which reflect each country’s energy portfolio and RES potential; they must comply

with any national commitments under the Kyoto Protocol, but the targets themselves are

indicative rather than mandatory. Member States must publish reports every two years analyzing

their success in meeting the indicative targets, and taking into account the extent to which actions

take are consistent with national climate change commitments. Based on these reports, the

Commission evaluates progress Member States have made toward their targets and whether

national indicative targets are consistent with the global and Community targets for 2010 of

having RES account for 12% of gross national energy consumption on a global level and 22.1%

of total Community electricity consumption. (European Parliament and The Council 2001).10

These numbers vary significantly because the global target focuses on total energy consumption,

which includes electricity, transportation and heating, while the European Union target

referenced in this Directive includes only electricity consumption.

The Directive specifies that Greece must generate 20.1% of its electricity from RES by

2010. This percentage should result in compliance with commitments to reduce greenhouse gas

emissions made under the Kyoto Protocol. However, some uncertainty exists about whether the

two will actually correlate because the EU targets focus on percentage of energy from RES,

while the Kyoto Protocol targets focus on tons of GHG emitted. The EU targets under Directive

2001/77/EC are not compulsory, but there are potential consequences if a Member State fails to

exhibit substantial progress toward its target. If the Commission concludes that “the national

indicative targets are likely inconsistent, for reasons that are unjustified and/or do not relate to

new scientific evidence, with the global indicative targets, [the Commission’s proposal to the

10 The EU lowered the target to 21% by 2010 as new Member-States joined the EU and newly discovered obstacles led to lower national targets.

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European Parliament] shall address national targets, including possible mandatory targets, in the

appropriate form” (European Parliament and The Council 2001).

A report generated by the Greek Ministry of Development, as required by Article 3 of

Directive 2001/77/EC, says Greece must have wind farms amounting to an installed capacity of

3,648 megawatts (MW), which produce a total of 7.67 terawatt hours (TWh) in 2010 to meet the

target. Total Greek RES production will be 14.45 TWh from 7,653 MW of capacity. The

relationship between installed capacity and TWh is not linear: variations in weather patterns

influence the amount of energy ultimately generated by RES. Predictions show wind farms

comprising 47.7% of Greece’s installed RES capacity and 53% of its RES generation (Greek

Ministry of Development, Directorate General for Energy, and Renewable Energy Sources and

Energy Saving Directorate 2007). As of 2006, Greece had 683 MW of installed new renewable

capacity,11 522 MW of which were connected to the main grid (interconnected); wind accounts

for 85% of this capacity. Greece has issued installation permits for an additional 1000 MW of

new renewables, of which 87% are wind: construction has begun on about 20% of these permits

(International Energy Agency 2006).

Table 2: RES Production, Targets and Progress for EU-25 RES TWh 1997 RES % 1997 RES % Target 2010 RES % Normalized

2004/2005 Austria 39.05 70.0 78.1 57.5 Belgium 0.86 1.1 6.0 1.9 Cyprus 0 6 0.0 Czech Republic 3.8 8 4.0 Denmark 3.21 8.7 29.0 27.3 Estonia 0.2 5.1 0.7 Finland 19.03 24.7 31.5 25.4 France 66.00 15.0 21.0 14.2 Germany 24.91 4.5 12.5 10.8 Greece 3.94 8.6 20.1 7.7 Hungary 0.7 4.4 4.0 Ireland 0.84 3.6 13.2 8.0 Italy 46.46 16.0 25.0 16.0 Latvia 42.4 49.3 43.9

11 New renewables exclude large-scale hydro production.

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Lithuania 3.3 7 3.3 Luxembourg 0.14 2.1 5.7 4.0 Malta 0.0 5 0.0 Netherlands 3.45 3.5 9.0 6.5 Poland 1.6 7.5 3.2 Portugal 14.30 38.5 39.0 28.8 Slovak Republic 17.9 31 14.9 Slovenia 29.9 33.6 29.4 Spain 37.15 19.9 29.4 21.6 Sweden 72.03 49.1 55.2 52.0 United Kingdom 7.04 1.7 10.0 4.2 EU-25 12.9 21.0 14.5

Sources: Commission of the European Community; Greek Ministry of Development, Directorate General for Energy, and Renewable Energy Sources and Energy Saving Directorate 2007 RES TWh 1997 numbers are not available for countries that were not EU Member States when Directive 2001/77/EC was passed.

Neither Greece nor the EU as a whole is on-track to meet these goals: it appears that the

Community will reach a 19% share of electricity from RES, rather than 21% and as of 2008,

Greece’s installed RES capacity was only 17% of the amount it would need to meet its target

(Figure 3) (Greek Ministry of Development, Directorate General for Energy, and Renewable

Energy Sources and Energy Saving Directorate 2007; Wiser et al. 2008). At the same time, the

effects associated with climate change are becoming more visible, creating increased urgency

around action to mitigate GHG emissions. As a result, the EU released a Renewable Energy

Roadmap in January 2007(European Parliament 2008; Michalena and Angeon 2009). In March

2007, EU member countries agreed to adopt a binding target of 20% renewable energy use in the

electricity, heat, and transportation sectors. They released a proposed draft of the EU Renewable

Energy Directive in January 2008 and the European Parliament approved it on December 17,

2008. The Directive creates legally binding targets for 20% reduction of greenhouse gas

emissions, 20% share of renewable energy, and 20% improvement in energy efficiency by 2020,

as well as requiring a 10% share of renewable energy in the transportation sector (European

Energy Forum 2008; European Parliament 2008). Member countries must create and submit

National Allocation Plans using a harmonized reporting template and describing how they will

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meet their individual targets by June 2010. The EU will theoretically penalize countries that fail

to meet the final targets. However, the Directive does not actually lay out any specific

consequences for failure to meet a target: the Commission can propose corrective action, but

there is no provision for enforcement (European Parliament 2008).

Figure 3: Greek Share of RES Source: Greek Ministry of Development, Directorate General for Energy, and Renewable Energy Sources and Energy Saving Directorate 2007

The EU based the calculation used to set the overall targets for each Member Country on

a flat-rate increase in renewable share, but also took into account GDP per capita and early

progress toward renewable development, defined as an increase of 2% of total share between

2001 and 2005; an overall cap of 50% share of RES is also included. This adjusted approach

attempts to spread responsibility, take advantage of the lower cost installations sites that are

likely to still be available in late-moving countries and distribute the cost associated with

developing RES in a manner proportionate to national wealth per capita (European Parliament

2008; Wiser et al. 2008). The intent of mandatory targets is to provide investors with greater

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certainty and encourage continued development of RES technologies (European Parliament

2008).

Greece has drawn funding from the European Union for the development of RES

installations under both the 2nd and 3rd Community Support Framework. Under the 2nd

Community Support Framework, the Operational Programme for Energy (OPE), managed by the

Ministry of Development, drew €1.061 billion in order to grant public aid to RES projects. They

invested a total of €141.6 million in 16 wind projects and developed 121 MW of installed

capacity that generate 354 GWh of electricity annually. The European Regional Development

Fund provided 33.8% of funding, national resources including PPC funds comprised 45.2% and

private capital flows accounted for the remaining 21% (Greek Ministry of Development and

Directorate General for Energy, Renewable Energy Sources and Energy Saving Directorate

2003). Under the 3rd Community Support Framework, the Operational Programme

“Competitiveness” (OPC) provided public funding for RES, energy savings, substitution and

other energy-related actions. The total budget for wind energy was €549.59 million for 51 wind

projects; the program created 554.69 MW of installed capacity and annual electricity production

of 1,392.3 GWh. Public expenditure under the 3rd Framework totaled €175.4 million (Greek

Ministry of Development, Directorate General for Energy, and Renewable Energy Sources and

Energy Saving Directorate 2007).

Moving forward, the new Directive will be the most relevant piece of EU legislation.

However, because it passed so recently, few pieces of scholarly work address it. Further

research will improve our understanding of the impact of the Directive. Additionally, EU

funding plays an important role in encouraging RES development in Greece.

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(4.1.3) Greek Government and Legislative Framework The national Greek government plays an essential role in determining the rate at and

manner in which wind energy is developed. Most of the Greek legislative framework focuses on

simplifying the permitting procedure and providing RES generators with economic support.

Without meaningful government support, the process of building a wind farm slows dramatically

due to bureaucratic delays. Up until a few years ago, Greece struggled enormously with its

bureaucracy: therefore, as of 2005, construction had begun on only 13 % of plants that had

received some sort of license (International Energy Agency 2006). However, in the past few

years the country has made significant efforts to streamline the permitting procedure by

concentrating decision-making power in a few groups and imposing strict deadlines on response

times (Greek Ministry of Development, Directorate General for Energy, and Renewable Energy

Sources and Energy Saving Directorate 2007). Greece also revised economic support schemes to

provide diversified feed-in tariffs determined by the type and location of the RES installation.

Such efforts give the government more flexibility to encourage certain forms of RES that it feels

are lagging, and to its expenditures on technologies that are close to being economically viable

without government support.

Under the current legal framework, Greece provides RES generators with feed-in tariffs,

subsidies for construction or a tax reduction, and guaranteed connection to the transmission

system. The feed-in tariffs, subsidies, and tax reductions relate to the promotion of renewable

energy sources and are legislated by Law Nr. 3468/2006 Generation of Electricity Using

Renewable Energy Sources and High-Efficiency Cogeneration of Electricity and Heat (Law Nr.

3468/2006). Grid connection is subject to more complex regulation, including Law Nr.

3468/2006, the Grid Control and Power Exchange Code (NC), Decision Nr. 1442/2006 Form

and content of electric power purchase contracts (PPAs) for the supply of electric power into the

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system (V 1442/2006), and Decision Nr. 2000/2002 Procedure for issuing installation and

operating permits of power generation plants using renewable energy sources (V 2000/2002)

(German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety 2008).

These new regulations further the efforts initiated by Law 2244/94 on renewables, Law 2773/99

on local electric market deregulation, and Law 2601/98 on development. Additionally, the

Ministry of Development’s “Energy Operation or the Competitiveness Program,” funded by the

EU’s 3rd Community Support Framework, assists in subsidizing private investment in wind

energy (Kaldellis 2005).

(4.1.4) National Economic Factors The Greek government has come up with three levels of economic incentives for the

development of RES: direct subsidy of installation costs, tax breaks, and a feed-in tariff.

Investors must choose between the first two, which the Greek government funds through its

budget, whereas all RES installations benefit from the feed-in tariff, which the grid operator, and

by extension consumers, fund.

Law 3468/2006 provides for feed-in tariffs to encourage the development of RES by

public or private investors in Greece. The level of the feed-in tariff varies based on the energy

source and whether the installation connects to Greece’s primary grid (Table 3). The grid

operator – DESMIE for interconnected sites and small-scale local operators or PPC for isolated

islands – bears the cost of these tariffs. The laws do not specify a regulatory framework for

passing the costs on to consumers. The feed-in tariff for wind is from 7.3-9 €cts/kWh, with

geothermal, biomass, landfill/sewage gas, biogas, and hydro receiving similar tariff levels. Feed-

in tariffs for solar energy are significantly higher – 40.282-50.282 €cts/kWh for photovoltaics

and 25-27 €cts/kWh for non-photovoltaic solar. Contracts are for 10 years, with the option to

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extend for another 10 years based on a unilateral decision by the producer. The system operators

(power generators) for all non-solar energy sources covered by the law pay 3% of their net

proceeds to the grid operator, who in turn gives 80% of this money to local administrative bodies

in the region where the system is located and 20% to local administrative bodies in the region

that transmission lines pass through. Greek law designates this money for use in development

programs in the area and local authorities must provide documentation of how they have spent it

upon request (Parliament of the Hellenic Republic 2006).

Feed-in Tariff (€/MWh) Electricity generation method Interconnected System Non-interconnected

Islands Wind energy, hydraulic energy up to 15 MW, geothermal energy, biomass, gasses released from sanitary landfills and biological treatment plants, miscellaneous RES, high-efficiency cogeneration of heat and electricity

75.82 87.42

Wind energy from sea farms 92.82 Solar energy using PV units with installed capacity less than 100 kW that are installed on lawfully owned or possessed property or in adjacent properties of the same owner or lawful possessor

452.82 502.82

Solar energy using PV units with an installed capacity over 100 kW 402.82 452.82

Solar energy using non-PV technology with an installed capacity up to 5 MW 252.82 272.82

Solar energy using non-PV technology with an installed capacity over 5 MW 232.82 252.82

Table 3: Greek Feed-in Tariffs Source: Greek Ministry of Development, Directorate General for Energy, and Renewable Energy Sources and Energy Saving Directorate 2007

Given the extremely high wind potential found in some regions in Greece, some

speculation exists about the necessity and economic efficiency of national feed-in tariffs. For

example, Hatziargyriou et al. calculate the production cost of wind energy on the Cycladic

Islands at a maximum of 65 €/MWh (6.5€cts/kWh), with 84% of production sites having

production costs below 5€cts/kWh. They make no mention of feed-in tariffs in the paper and

conclude that wind parks such as these are economically attractive even without government

subsidies for construction because RES production costs are highly competitive with costs for

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the conventional sources they would replace on the islands (Hatziargyriou et al. 2007). Similar

cost breakdowns may exist in other regions of the country; speculation to this effect has led to a

push to reevaluate the level of subsidy provided to RES investors through feed-in tariffs and

ensure that the feed-in tariffs are economically justifiable. If investment would occur even

without a feed-in tariff, Greece should consider the level and timeframe of the tariff, and if a

tariff is necessary at all. The government and power companies cannot amend existing contracts,

but future contracts should reflect the true economic situation, which is rapidly changing as

technologies evolve.

Law Nr. 3468/2006 also provides for a subsidy for the construction of RES systems.

Alternatively, systems operators can chose to forgo the subsidy and instead receive a tax

reduction. The federal budget accounts for cost of both programs (Parliament of the Hellenic

Republic 2006).

Grid connection is necessary for all new power plants regardless of whether they use

renewable or conventional energy sources. However, RES installations tend to face more

limitations in terms of location because they depend on the availability of natural resources such

as wind or solar radiation. As a result, Greek law includes provisions to ensure that RES system

operators are able to connect to the existing grid without undue hassle. Plant operators who hold

a generating license from the Ministry of Development are contractually entitled to both grid

connection and grid expansion if it is necessary to handle the connection of the new plant. RAE

must approve all generating licenses; they are good for 25 years, with the option of extending for

another 25 years. Connection takes place at the point deemed most economically and technically

feasible: the grid operator bears the cost of extending the grid to that point and the system

operator bearing the cost of connecting the plant to that point, as well as the cost of metering

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devices to record the amount of power fed into and received from the grid. The grid operator

uses the net feed-in recorded by the meter to determine the amount paid to the systems operator

based on the feed-in tariff specified by Law Nr. 3468/2006. The grid operator can pass some of

its costs from expanding the grid on to customers through a grid usage fee; RES generators are

exempt from this fee. In connection plans, the grid operator must give priority to RES generators

unless connecting them to the grid will pose a threat to network security. This ensures that a

market is available to RES generators without allowing excessive penetration of intermittent

sources to threaten the stability of the network as a whole (German Federal Ministry for the

Environment, Nature Conservation and Nuclear Safety 2008).

The Ministry of National Economy, now known as the Ministry of Economy and Finance,

provides funding under Law 1892/1990 “Modernization and development and other provisions”

and Law 2601/1998 “Private investment aids for the country’s economic and regional

development and other provisions.” The Ministry of Development estimates that national

resources funded approximately one-third of RES plants in operation as of October 2007 (Greek

Ministry of Development, Directorate General for Energy, and Renewable Energy Sources and

Energy Saving Directorate 2007).

The Greek government has made a policy decision to ensure that consumer prices are

equal across the whole country. This decision seems to relate to the historical view that

electricity is a public service that the government must provide continuously to all citizens at a

reasonable price. As a result, mainland residents tend to pay more for their power than they

would under free market conditions, while island residents pay less. The decision to standardize

prices removes some of the economic incentives for new companies to enter the market because

prices charged by PPC do not directly relate to local conditions, making it harder for small

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companies to compete (Iliadou 2009). As a result, the PPC remains the distributor on many

autonomous islands; the Ministry of Development has designated their work on these islands as a

Public Service Obligation that they must provide.

In an effort to enhance market openness and competition, the Greek Parliament enacted

Law 3175/2003. It provides for a Mandatory Pool System covering the interconnected system

that operates on an hourly and daily basis: all suppliers must purchase energy from the Pool and

generators can only operate if selected by the market operator based on the economic bids

submitted to the Pool. Bids from generators can include fixed and capital costs. As of July 2007,

all consumers on the mainland were eligible to participate. The system allows consumers to

express their power preference to suppliers more directly. Efforts are underway to establish a

new System Operation and Power Exchanges Code and a capacity assurance mechanism (Iliadou

2009).

The most influential economic factors for the development of wind energy are the level

of feed-in tariff set by the government and the competing energy sources in the region under

consideration for wind development. The government can easily influence the first factor, but it

is generally more difficult to influence the second factor. Subsidies and tax credits do not

appear to play a large role in determining the economic competitiveness of RES installations in

Greece.

(4.1.5) The Public Power Corporation (PPC) The Public Power Corporation (PPC) is the majority state-owned electricity production

and distribution company that comprises the majority of the Greek energy market.12 It is now a

separate entity from the Hellenic Transmission System Operator (DESMIE). The system 12 PPC has been offered on the London and Athens stock markets. After three public offerings, 49% of the shares belong to the general public, institutional investors, and PPC’s employee insurance fund. The remainder is owned by the Greek State, which is required by current legislation to remain the majority shareholder.

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operated as a monopoly beginning in 1950, when PPC was fully state-owned and dominated

production, transport and distribution of electricity (Michalena and Angeon 2009). The company

held the exclusive rights to the construction, operation and exploitation of hydroelectric and

thermal power plants and transmission and distribution networks; Law 1458/1950 prohibited

private business initiatives in the electricity sector. PPC’s operations focused on the principles

of continuity, adaptability, affordability and universality (Iliadou 2009). The market theoretically

opened in 1994 when Parliament enacted Law 2244/1994. The law allowed private entities to be

auto-producers, engage in cogeneration and generate power using RES (Michalena and Angeon

2009). However, for all practical purposes, the market did not truly begin to lose its

monopolistic characteristics until February 2001 when local market liberalization officially came

into force under Law 2773/1999 (Kaldellis 2005). Greece pursued liberalization largely to

achieve compliance with EU directives 96/92/EC and 2003/54/EC (Michalena and Angeon

2009).

As a monopoly, PPC dominated both conventional and RES installations: under Law

1559/1985, it installed Greece’s first 24 MW of RES capacity. As of 1995, Greece’s only

additional RES capacity was 3MW installed by various local governments across the country

(Greek Ministry of Development, Directorate General for Energy, and Renewable Energy

Sources and Energy Saving Directorate 2007). Until mid-1998, PPC owned 142 of the 170 wind

turbines installed in Greece. However, after issues surrounding Law 2244/94 were resolved and

private investors could successfully apply to build RES installations in Greece, the installed

capacity of private wind parks quickly soared to 240 MW, dwarfing PPC’s 37 MW of capacity

(Kaldellis 2005).

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Today, PPC still controls the vast majority of Greece’s generating capacity despite

liberalization efforts. PPC-operated plants account for 12,695 MW of installed capacity, while

auto-producers, non-integrated conventional power, and RES generators account for about 1570

MW of capacity (Greek Ministry of Development, Directorate General for Energy, and

Renewable Energy Sources and Energy Saving Directorate 2007). This is equivalent to 95% of

non-RES power generation. The company employs approximately 26,200 people and supplies

more than 98% of the electricity consumed in Greece (Iliadou 2009).

Given Greece’s vast geographic and ecological diversity, the type of one-size-fits-all

approach a monolithic utility such as the PPC is likely to use is a very poor fit for the country’s

needs. As a result, competition in the field is valuable because it encourages the triumph of the

most profitable ventures and provides an incentive for companies to continue attempting to

increase efficiency through innovation and development.

(4.1.6) Greek Ministries and Governing Bodies The Ministry of Development is the main institution responsible for decision making in

the energy sector, primarily through the Department of Energy and Natural Resources. It is

responsible for elaborating on primary legislation, defining market rules, regulating energy

prices, and issuing administrative decisions such as market and technical codes, licenses, and

authorizations for energy activities. The Ministry of Economy and Finance is responsible for

financial policy and privatization issues, while the Ministry of Environment, Physical Planning

and Public Works is responsible for environmental policy and issuing environmental licenses.

Local government institutions possess power of decision regarding the issuance of environmental

permits and the installation and operation licenses for RES electricity generation (Iliadou 2009).

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(4.1.7) Regulatory Authority for Energy (RAE) The Regulatory Authority for Energy (RAE) is an independent public administrative

authority responsible for monitoring and controlling the electricity market, as well as delivering

opinions pertaining to protection of customers and the observance of the rules of genuine

competition (Greek Ministry of Development, Directorate General for Energy, and Renewable

Energy Sources and Energy Saving Directorate 2007). It is composed of seven members with

fixed term mandates selected based on scientific excellence and professional capacity and

appointed by the Ministry of Development (Iliadou 2009). The members are not obligated to

comply with governmental orders and cannot be removed for any reason that does not fall within

the bounds of a few strictly described scenarios, such as being convicted of a serious felony

during the execution of their duties (Iliadou 2009). The provisions of Law 2773/1999 established

RAE as part of harmonization efforts between Greek law and the provisions of European Union

Directive 96/92/EC regarding the liberalization of the electricity market. RAE is financially

independent, a condition ensured by Law 2873/2000, which allows it to possess its own

resources and manage them under Presidential Decree 139/2001 “Regulation for the Internal

Operation and Administration of RAE” (RAE). In order to ensure parliamentary control and

accountability, RAE is required to publish and submit annual reports about its functioning and

acts to Parliament via the Ministry of Development (Iliadou 2009). RAE provides advice on a

number of topics and has consenting or approval power on several issues relating to the

transmission and distribution grid. It must consent to third-party tariffs before the Ministry of

Development can approve them. RAE also has the ability to impose financial sanctions on

entities that violate primary or secondary energy legislation (RAE).

While the scope of RAE’s authority covers the entire electricity market, it is involved in a

number of activities that pertain directly to RES development. It formulates proposals for the

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Ministry of Development about power generation authorizations, monitors progress toward the

implementation of RES projects via quarterly reports, and can recommend the removal of

investors who show unjustifiable delays during the approval and construction process. RAE can

also make recommendations about legislative measures that would allow for further deregulation

of the electricity market: this power can be used as a tool to address issues facing RES

installations, as shown by RAE’s efforts to promote hybrid storage plants in conjunction with

RES (Greek Ministry of Development, Directorate General for Energy, and Renewable Energy

Sources and Energy Saving Directorate 2007). RAE’s consenting opinion on third-party tariffs

mean that they must sign off on all feed-in tariffs for RES before the Ministry of Development

can approve them (RAE). The Centre for Renewable Energy Sources (CRES) provides technical

assistance in analyzing RES applications (Greek Ministry of Development, Directorate General

for Energy, and Renewable Energy Sources and Energy Saving Directorate 2007).

(4.1.8) Greek Transmission Operator (DESMIE) DESMIE, also referred to as the Greek Transmission Operator (GTO), Hellenic

Transmission Operator (HTO), or Hellenic Transmission Systems Operator (HTSO) is the

operator of the interconnected grid in Greece. Article 14 of Law 2773/1999 provides for it and

Presidential Decree 328/2000 “Establishment and statutes of the Societe Anonyme HELLENIC

ELECTRIC POWER TRANSMISSION SYSTEM OPERATOR S.A.” established it (Greek Ministry

of Development, Directorate General for Energy, and Renewable Energy Sources and Energy

Saving Directorate 2007). Its primary responsibilities are the operation, maintenance and

development of Greece’s electric-power system and interconnections with other systems, with

the goal of ensuring that Greece has access to sufficient, safe, cost-effective, and reliable power.

Law 3175/2003 expanded DESMIE’s duties to include the regulation of the daily electricity

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market, the settlement of supply and demand imbalances, and the provision of ancillary services

and reserve capacity. It plays a role in promoting genuine competition through deregulation and

increased flexibility and is obliged to ensure that the long-term margin in domestic generation is

sufficient to cope with probable future power shortages (Greek Ministry of Development,

Directorate General for Energy, and Renewable Energy Sources and Energy Saving Directorate

2007).

DESMIE is important for RES in a number of ways. In October 2002, it assumed

commercial management of interconnected renewable energy plants (Greek Ministry of

Development, Directorate General for Energy, and Renewable Energy Sources and Energy

Saving Directorate 2007). Additionally, DESMIE is responsible for insuring that connection

guarantees are met and for paying RES generating plants located on the interconnected grid the

legally mandated feed-in tariff. Lastly, any efforts at improving or extending the interconnected

grid must go through them.

(4.1.9) Centre for Renewable Energy Studies (CRES) Article 25 of Law 1514/1985 “Promotion of scientific and technological research”

provided for the establishment of the Centre for Renewable Energy Studies (CRES) and

Presidential Decree 375/1987 “Establishment of a legal entity under private law with the

registered name Centre for Renewable Energy Sources” implemented it. The scope of its

responsibilities include promoting RES, energy saving and rational use of energy and all forms

of support for activities in any of those fields. In addition, CRES serves as the national

coordinator for all activities within those categories. It has labs that certify RES technology and

is responsible for undertaking studies to determine the physical, technical and economic potential

of RES. By providing technical support to RAE, CRES participates in the evaluation and

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monitoring of investments within the RES sector, which includes energy savings (Greek

Ministry of Development, Directorate General for Energy, and Renewable Energy Sources and

Energy Saving Directorate 2007).

In summary, Greece contains several regions where high wind speeds make wind energy

an attractive option. Pressure from the European Union has been instrumental in pushing Greece

to develop these resources over the past decade. Greece now has a number of laws pertaining to

RES development, most of which focus on streamlining the application procedure and providing

economic support to those who invest in RES installations. Greece has also pursued deregulation

and market liberalization in order to comply with EU Directives. PPC, RAE, DESMIE, CRES,

several Greek ministries, and local governments all play important roles in the development of

Greece’s wind resources.

(4.2) Regional Study I – Cycladic Islands The Cycladic Islands are a group of medium-sized islands located in the Aegean Sea a

relatively short distance from Attica (mainland) and Euboea (large interconnected island). They

have very high levels of wind potential and a high concentration of ancient monuments. The

islands’ power systems are generally representative of the approximately 35 autonomous power

systems scattered across the Greek islands: the typical size of these systems is less than 10 MW

(Hammons 2008).

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Figure 4: Map of the Cycladic Islands

Source: Greece-Map.net

(4.2.1) Energy Demand While the absolute values for energy consumption on the Cycladic Islands are relatively

low, demand has increased dramatically in recent years. One study shows that over the past 25

years, peak load demand has grown by almost 500%: it is now about 8 MW on a typical mid-

sized Aegean island, while the most common load demand is between 2.6 and 3 MW (Kaldellis

2008). Another study estimates that demand on the islands is growing at an annual rate of 8%,

which is nearly double the rate of 4.2% found on the mainland (Hatziargyriou et al. 2007).

Tourism is one of the primary sources of income for the Cycladic Islands, which are renowned

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for their natural beauty, beaches, and ancient monuments: tourist season peaks in the warm

summer months. This means that both the typical increased use of air conditioning due to high

temperatures and the unusual population boom due to tourism drive up electricity demand during

the summer. As a result, levels of demand on the islands vary dramatically between winter and

summer, meaning that substantial reserve capacity is essential to the successful operation of the

system (Hatziargyriou et al. 2007). For much of the year, the systems experience a load that is

only 25-40% of the peak load (Hammons 2008). Many islands have been unable to keep up with

the growth in peak demand and now suffer from an energy shortage during the summer months.

The PPC predicts that total peak demand for the six major islands in the Cycladic group will be

186.55 MW in 2015 (Hatziargyriou et al. 2007).

(4.2.2) Current Energy Sources The Cycladic Islands currently obtain most of their power from small-scale thermal

generators, fueled primarily by diesel or oil. Some are beginning to switch to natural gas because

it creates fewer local air pollutant and islands suited to wind or geothermal energy are exploring

these options. The average estimated cost of electricity production on most islands is extremely

high – up to 50€cts/kWh – because production is achieved through the use of internal

combustion engines consuming diesel-oil and mazut, a low-quality heavy fuel oil; as of late 2007,

fuel costs accounted for more than 50% of total generation costs (Kaldellis 2008). Most of these

fuels are imported from other countries, leaving Greece vulnerable to price and volume

fluctuations in the world oil market. The power systems generally have only one generating plant

and a radial distribution system (Hammons 2008).

The plants in these systems must run at a minimum level in order to avoid increased wear

and tear and the associated maintenance costs, meaning that conventional plants must generate a

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minimum amount of power in each system for as long as they are in operation (Kaldellis 2008).

However, these thermal plants do not enjoy particularly high levels of popularity among the local

communities because of the detrimental environmental and aesthetic impact the emissions and

acid rain they create has on sensitive island environments. As a result, proposals to expand the

current thermal plants often come up against strong local protest, despite the fact that the islands

desperately need to increase their generating capacity in order to meet rising energy demand,

particularly during the summer peak of tourist season (Hatziargyriou et al. 2007).

(4.2.3) Wind Potential and Market Penetration The Cycladic Islands in general have very high wind potential: studies suggest that at an

elevation of 30 meters, the annual mean wind speed is above 5.5 meters per second and that in

many locations, the long-term average approaches 10 m/s (Kaldellis 2008). In general, wind

speeds above 5 m/s are categorized as medium wind potential, while winds reaching 10 m/s

represent extremely high wind potential. For the majority of existing wind parks in Greece, wind

speed is the primary factor in determining the maximum production an installation can achieve

(Kaldellis 2008).

The other factor that exerts significant influence on maximum production is the size of

the turbines installed and their rated capacity. There are legal regulations in place for the islands

that prevent the on-shore installation of turbines with a capacity of greater than 850 kW. Even

without a legal restriction in place, it is highly impractical to install larger turbines on the islands

because of the difficulty of transporting them both to the islands and to the installation site after

they have arrived on the islands. Road networks on many islands are limited, and roads that do

exist are often in disrepair or follow extremely narrow and winding paths. The remote location of

these proposed wind parks also raises concerns about staffing: if the island only installs one or

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two turbines, staff costs per kWh of electricity are higher than they would be in a larger wind

park where distribution over a larger generation capacity is possible (Hatziargyriou et al. 2007).

Training of technicians also becomes an issue as the number required increases in tandem with

increases in the total number of wind parks.

The fact that wind is an intermittent resource that does not blow all the time also limits

the amount of wind power an isolated island can generate and integrate into its power system.

Since it is impossible to guarantee that the wind will be blowing during moments of peak

demand, the prevention of power shortages and associated blackouts requires reserve capacity.

Additionally, island power systems are often unable to absorb all of the power generated by wind

turbines during production peaks, resulting in wind power rejection. Rejection occurs because of

the combination of low demand and technical limitations of existing conventional power sources.

Technically and economically, it is inefficient to bring most conventional plants off-line and then

bring them back on-line when needed again – natural gas, typical used in peak load plants rather

than base-load plants, is an exception to this rule. It is possible to run the plants below full

capacity, but they must run at or above their technical minimum in order to avoid damage to the

system (Hatziargyriou et al. 2007; Kaldellis 2008). In essence, when demand is at or below the

technical minimum for diesel and oil plants, the system rejects all wind power (Kaldellis 2008).

Applied studies suggest that on a typical island the system will always absorb wind

power contributions of 360 kW or less when they are available. The maximum possible

contribution of wind farms is 2260 kW, assuming normal constraints imposed by the network

manager are in place. Modeling also suggests that there is no significant difference in the

effectiveness of lower and higher levels of wind penetration because of the associated costs of

power rejection. Kaldellis concludes that 850 kW, or about 10% of the peak load demand of a

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remote island represents the optimum level of wind penetration from a technical and economic

perspective. In regions of low wind potential, the expected maximum annual contribution of the

wind farm is approximately 5%, while in regions of high wind potential, the contribution could

be as high as 11.5%. In both cases, the system absorbs upwards of 97.5% of all wind power

generated, meaning that real-world results are often very close to the theoretical maximum on an

annual basis. When Kaldellis increased the theoretical installed wind capacity on an island to

three 850 kW turbines, or about 30% of the peak load demand, the theoretical maximum

contribution is less than 9.5% for areas of low wind potential and about 20% for areas of high

wind potential. In the high potential study, the local network absorbed only about 55% of energy

produced by the wind park, resulting in significant levels of waste. In general, the upper limit on

wind penetration on remote islands, based on current legislation and technology, is between 12-

16% and even in high wind potential cases penetration does not exceed 20% (Kaldellis 2008).

In practical terms, the penetration limit means that under current conditions a mid-sized

autonomous system can only install one or two 850 kW wind turbines without threatening the

system’s stability and security. These numbers also imply that installation of wind turbines

would not make a great deal of technical sense on islands where annual energy demand is below

30 GWh per year.

(4.2.4) Economic Factors Economics also impose limits on wind penetration. Theoretically, the remote islands

should be very attractive locations for investment in wind energy because they possess high wind

potential and existing energy sources are extremely expensive. Production costs for small

thermal plants can be as high as 20-25€/MWh, while 84% of wind production sites on the

Cycladic Islands have costs below 50€/MWh (Anagnostopoulos and Papantonis 2008;

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Hatziargyriou et al. 2007). However, rejection limits the economic appeal of island wind farms

because an installation that can only sell 60% of its electricity is far less attractive to investors

than one that can sell 90% of its electricity (Kaldellis 2008).

In addition, the remote location of these islands and limits to feasible wind penetration

mean that wind farms on the Cycladic Islands cannot achieve many of the economies of scale

available to larger installations. Operation and maintenance costs are generally higher because of

the difficulties associated with accessing the installation sites and the high cost of land in tourist

destinations (Hatziargyriou et al. 2007). The fact that the Cycladic Islands are limited to wind

turbines of 850 kW capacity eliminates potential economies of scale present with higher capacity

turbines since the operation and maintenance costs are similar for an 850 kW turbine or a 2.3

MW turbine (Hatziargyriou et al. 2007). Also, because so few turbines can be installed on any

one island, employment costs and grid connection costs are not distributed over as many kWh of

electricity, making the per unit cost higher.

The Cycladic Islands’ economies currently rely significantly on tourism. Therefore, one

concern about the development of the Islands’ wind resources is the potential effect on the

tourism industry, and by extension the economy: many people believe that wind turbines are

unattractive, modern installations that would detract from the natural beauty of the islands and

the ancient monuments found on them. By ruining the pristine beauty of the islands, wind farms

could decrease their attractiveness as tourist destinations, which would negatively affect the

Islands as a whole. The number of jobs lost in the tourism industry would be significantly

greater than the number of jobs created by the introduction of RES since staffing a wind farm

requires only a handful of people. These concerns seem to be more about the economic losses

associated with perceived visual degradation of the landscape than the aesthetic effect of the

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wind turbines in and of itself. This response is similar to the one found on Cape Cod, MA

(Firestone and Kempton 2007).

(4.2.5) Social and Political Factors Concern about the potential impact of wind installations on tourism is just one of the

many political and social factors that influence the development of wind resources on the

Cycladic Islands. Public involvement, views of conventional energy sources, speed of

development, and perceived benefit or harm to the local community all play a role in determining

the ease of developing a wind farm on any one of the Cycladic Islands. For simplicity’s sake,

this paper assumes that social and political attitudes do not vary significantly across the Cycladic

Islands.

Samos Island represents a successful model of the development of wind power on a mid-

sized (non-Cycladic) island. Two small wind parks run by PPC were in place by 1991, providing

early familiarity with the technology among the community. During the boom in private

investment that resulted from local market liberalization under Law 2773/99, private investors

developed two medium sized installations. By 2005, these new installations were operational and

wind installations represented more than 15% of peak demand on the island. The installations are

geographically distributed. Overall, the developments have not disturbed the local population

(Kaldellis 2005).

Andros, one of the Cycladic Islands, has experienced a moderate level of wind-related

activity as of 2005. Strong interest in exploiting the island’s wind resources exists, in large part

because of the high economic cost of current power sources and the inability of current power

sources to meet peak demand during the summer months: these conditions are present on most of

the Greek islands that depend on tourism. New technological developments, such as energy

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storage through hydro or batteries, are appealing, and could increase wind penetrations in areas

where locals are likely to support expansion (Kaldellis 2005).

A study of public opinion of existing and proposed wind parks found that island residents

generally had positive views toward wind energy. Over 80% found existing wind parks

acceptable. New wind parks face greater resistance than existing ones: about 10% less of the

population finding them acceptable. This difference is most likely due to the NIMBY

phenomenon and the fact that residents near existing wind parks have had time to become more

accustomed and thus accepting of wind parks over time (Kaldellis 2005). Even an acceptance

level of 70%, the low end found on the islands, represents significant public buy-in to the process.

It is likely that public support is high because residents are aware of the power shortages that

occur during the summer months due to limited capacity, the negative local environmental and

aesthetic effects of conventional power, and the cost of oil-based fuels. Kaldellis proposed the

idea that current power supplies are a constraining factor on quality of life and economic growth,

and that the desire of island communities to expand beyond their constraints makes wind turbines

more acceptable to local populations. Additionally, wind turbines have penetrated the islands at a

relatively slow rate, beginning with small PPC-operated installations in the 1990s and only

recently expanding to larger installations (Kaldellis 2005).

Kaldellis’ economic analysis suggests that penetration has been slow not only because of

bureaucratic delays, but also because of the economics of the local energy markets and technical

limitations to how much wind power can be absorbed (Kaldellis 2008). Under current conditions,

large wind farms simply are not economically appealing on a small isolated island. Thus,

technical and economic limitations prevented the rapid development of large installations that

has traditionally led to social protest of wind installations. One or two wind turbines are

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generally far less objectionable than a forest of wind turbines, regardless of what factor limits the

number of turbines.

A sociological approach suggests that support on the island also stems from the life

experience of those living on the islands. The residents of the islands are likely to be “seamen,

traders, or working in tourism,” which puts them in greater contact with foreigners than other

Greeks. Kaldellis argues that one outcome of this contact is increased willingness to develop and

accept new ideas, making the islanders more open to RES such as wind farms than they would be

otherwise (Kaldellis 2005). He seems to base his claim purely on personal observation rather

than any scientific study. Evidence suggesting that those living in cities such as Athens or in

towns that rely primarily on tourism to sustain the local economy are also more likely to be

accepting of wind farms would lend credit to this theory. However, to date no one has performed

this type of research about Greece.

In general, local political and social attitudes toward the development of wind energy are

positive on the Cycladic Islands, although there is still a minority that opposes installing wind

turbines regardless of the perceived economic impact. However, most islanders support new

development because of the perceived economic benefits, negative public opinion toward current

energy sources, high energy costs, the slow expansion of wind farms into the islands, and the

relatively small scale of wind farms that are technically feasible on the islands. Awareness of

energy issues is high in the Cyclades due to power shortages and ongoing battles over the

extension of the operating licenses and capacity of existing thermal plants, meaning the public is

relatively well versed on energy issues. Some scholars speculate that the lifestyle of the islanders

also increases their receptiveness to the development of RES in general and wind specifically.

Together, these factors create a social environment that is receptive to the slow expansion of

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wind farms in a manner that reduces cost of living and increases quality of living among the

islands residents.

(4.3) Regional Study II – Crete Crete is the largest autonomous power system in Greece. Like the Cycladic Islands,

Crete’s electricity demand has grown rapidly in recent years and demand has an unusually high

summer peak because of tourism. As of 2001, the island’s population was about 630,000. The

island obtains 10-15% of its electricity from RES and has a transmission grid that is relatively

well designed for use with intermittent renewables. Cretans tend to support RES and oppose

conventional power sources.

(4.3.1) Energy Demand Energy demand has shown a strong correlation with economic growth on Crete. From

1995-2000, Crete’s GDP grew at almost double the national average; since 2000, regional rates

have been more in line with national rates. On average, the economy has grown at a rate of 6.8%

annually, while electricity demand has increased by 6-9% annually (Figure 5) (Giatrakos,

Tsoutsos, and Zografakis 2009; Michalena and Angeon 2009). In comparison, electricity demand

on the mainland has grown at about 5% annually (Michalena and Angeon 2009). In 2005,

Crete’s main substations distributed more than 2600 GWh, while peak load demand was 560.3

MW. The average load was 330 MW in 2005. Domestic (33.9%) and commercial users (39.5%)

dominate electricity consumption (Giatrakos, Tsoutsos, and Zografakis 2009).

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Figure 5: Logistic Energy Demand Projections for Crete

Source: Giatrakos, Tsoutsos, and Zografakis 2009

Like the Cycladic Islands, Crete has little or no excess capacity during the summer

months, primarily because of the tourist season. Demand falls significantly lower in winter

months when tourism is at a low and many of the island’s businesses shut down. As a result,

Crete has a low load factor: in 2005, it was only 54%. This means that the system operates well

below peak capacity most of the time. Therefore, the ratio of peak load technologies to base-

load technologies is higher, making the system less efficient and more expensive because peak

load technologies are dispatched more frequently than they would be in a system with a higher

load factor. In general, systems with higher load factors also have a higher percentage of base-

load capacity (Giatrakos, Tsoutsos, and Zografakis 2009).

Crete suffers transmission losses of up to 7.4% of net energy production because of the

set up of its transmission grid, particularly the 20 kV medium voltage sections. These lines serve

some of the most tourism oriented, and thus highest demand, regions, magnifying the

inefficiencies (Giatrakos, Tsoutsos, and Zografakis 2009). Despite these losses, the Cretan

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transmission grid is not generally considered problematic or poorly designed. On the contrary, it

represents an extremely successful example of RES integration.

(4.3.2) Current Energy Sources In 2004, 730 MW of fossil fuel capacity split between 3 installations and 18 MW of

renewables including hydro split between 4 installations comprised the PPC’s capacity on Crete

(International Energy Agency 2006). However, since RES installations are typically funded

through private investment, these numbers under-represent overall RES penetration on the island.

Wind and hydro dominate RES generation on the island. Biomass plays a role as well: Cretans

currently use olive kernel wood as a heat source and research is underway about the viability of

transitioning the wood to electricity production. Crete is also exploring further investment in all

forms of RES currently utilized on the island.

As of 2007, Crete possessed 129.5 MW of wind capacity, 1 MW of small-scale hydro

capacity, 0.8 MW of photovoltaic capacity, and 0.36 MW of biomass capacity, for 131.66 MW

of total installed RES capacity (Greek Ministry of Development, Directorate General for Energy,

and Renewable Energy Sources and Energy Saving Directorate 2007). The island’s base thermal

capacity in 2002 was 600 MW with a technical minimum of 100 MW; estimates predict that the

minima will be 140 MW in 2011 (Anagnostopoulos and Papantonis 2008). Crete’s base-load

thermal power stations all run on fuel oil and its peak load plants run on natural gas: electricity

generation accounts for 53% of the island’s total fuel imports (Giatrakos, Tsoutsos, and

Zografakis 2009). Renewable energy production currently accounts for 10-15% of total

electricity demand on the island (Giatrakos, Tsoutsos, and Zografakis 2009; Tsioliaridou, Bakos,

and Stadler 2006).

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Figure 6: System Load Curve for Crete

Source: Giatrakos, Tsoutsos, and Zografakis 2009

The PPC has 26 fossil fuel power units on the island, located in three power stations. The

system deploys steam turbines and combined cycle units first at their technical minimums – 47%

for steam turbines and 36% for combined cycle; these units have very high capacity factors –

70% for one unit – meaning that they generally produce close to maximum capacity. The system

deploys diesel engines next. These units can use lower quality fuel than can combined cycle

units and generally have capacity factors similar to steam turbines and combined cycle units.

Lastly, during periods of peak load, gas turbines are used. They require high quality fuel in the

form of diesel oil or natural gas and have high production costs. When they are available, the

system incorporates wind, which is considered to have a capacity factor of 30%, and other RES

sources after meeting the technical minimum for base load thermal plants. Crete has a reserve

margin (percent capacity above average load) of 37%. Scholars and engineers consider this ideal

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because a margin slightly above 30% is sufficient for maximum security and stability of the

power system (Giatrakos, Tsoutsos, and Zografakis 2009).

(4.3.3) Wind Potential and Market Penetration The island, particularly the eastern half, possesses a high wind potential that places it on

par with the Cycladic Islands: multiple sites experience average wind speeds greater than 10m/s

(Giatrakos, Tsoutsos, and Zografakis 2009). Crete has begun to exploit this potential: currently,

electricity generated by wind farms accounts for about 10% of annual demand, while

instantaneous penetration has been as high as 39% (Marko and Darul'a 2007). However,

rejection issues have limited the development of wind farms. Anagnostopoulos finds that on

large islands with high wind potential and significant installed capacity, the system may reject

10% or more of produced energy over the course of a year. For Crete specifically, rejection

occurs 18% of the time and is greater than 5 MW 10% of the time, resulting in an estimated total

rejection of 9800 MWh, or 13% of produced wind energy (Anagnostopoulos and Papantonis

2008).

Figure 7: HV Transmission System and Generating Plants on Crete

Source: Giatrakos, Tsoutsos, and Zografakis 2009

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Figure 8: Wind Speed on Crete

Source: Michalena and Angeon 2009

The reasons behind penetration limits on Crete are similar to those on the Cycladic

Islands: peaks in demand may not align with peaks in supply, meaning that wind power may not

be available when it is needed, or may be overly abundant when it is not needed. In addition, the

nature of large-scale thermal plants makes it difficult to bring them on- and off-line rapidly,

meaning that a certain percentage of electricity must always come from fossil fuel resources.

Since Crete has a low load factor, the technical minimum for these plants is often close to the

level of demand, which limits the amount of wind power the system can absorb. Total wind

capacity restricted to 30% of total controllable production units (thermal units) in order to ensure

that it is possible to compensate for the intermittent nature of wind. Additionally, contracts

between the PPC, which serves as the grid operator on Crete, and independent wind energy

producers limit wind absorption to 30% of the installations’ nominal capacity on an hourly basis.

This gives the PPC the right to reject excess wind in order to preserve grid stability. Increased

penetration could be achieved by scattering the wind parks across multiple locations: this would

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take advantage of the diverse wind conditions that exist on the island to deliver a more uniform

aggregate level of output from wind farms, but would increase transmission losses. In essence, it

is possible to ensure that the amount of wind power generated is most often in the middle range

of installed capacity rather than at either zero or the maximum installed capacity by distributing

the turbines geographically (Giatrakos, Tsoutsos, and Zografakis 2009). RAE estimates that by

dispersing the installations geographically, Crete could safely add at least 50 MW of wind

capacity.

Additionally, Crete has licensed a larger number of plants than have been constructed.

As of January 2006, the PPC and independent producers had been granted licenses for 195.5

MW of wind capacity, but only 105 MW were in operation (Giatrakos, Tsoutsos, and Zografakis

2009). The difference between these numbers stems from social, political and economic

obstacles.

(4.3.4) Economic Factors Crete offers a non-ideal market from an economic standpoint: a monopolistic set-up and

relatively inflexible energy supplies characterize the market, meaning that perfect competition

does not occur on the island. In 2006, overall running costs were 91.5€/MWh for electricity

production using fuel oil (Giatrakos, Tsoutsos, and Zografakis 2009). The total cost of

electricity production was estimated to be 2.6M€ in 2000; it would have been 1.45% higher

without wind installations (Michalena and Angeon 2009).

(4.3.5) Social and Political Factors Wind turbines enjoy a remarkably high degree of acceptance on Crete, most likely

because of a combination of historical and economic factors. More than 90% of the population

supports both existing and proposed wind parks, a number that is significantly higher than even

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the Cycladic Islands, which exhibit relatively high social support (Kaldellis 2005). Crete was the

first island to install wind turbines: they operated on Crete as early as 1993, with investment

coming from both the PPC and private corporations (Kaldellis 2005; Michalena and Angeon

2009). Installations were gradually increased and development was concentrated in Eastern

Crete from 1999-2002 (Kaldellis 2005). The island also experiences electricity deficits on a

regular basis, creating social conditions favorable to the development of new energy sources

(Kaldellis 2005).

Additionally, the service industry, particularly tourism, dominates Crete’s economy: the

island attracts over 20% of the country’s total tourist activity (Michalena and Angeon 2009).

There is a link between tourism and both the historic sites and the unique environment found on

the island, so any action that is likely to hurt the environment or the sites is unpopular. As a

result, there is strong public opposition to increased fossil fuel use and the associate increase in

fly ash, SO2 and NOx emissions from the addition of new thermal plants (Giatrakos, Tsoutsos,

and Zografakis 2009). Cretans generally assess RES installations as positive developments, in

part because the island is large enough to allow for the minimization of negative visual

externalities during the siting process: it is possible to find many areas of high wind potential that

are not visible from important historic sites (Michalena and Angeon 2009). Liquefied natural gas

(LNG) conversion of existing thermal plants is under consideration, although this would not

address issues such as thermal pollution and CO2 emissions (Giatrakos, Tsoutsos, and Zografakis

2009). In some municipalities, guided tours of wind parks have been highly successful in

increasing public support (Kaldellis 2005).

Crete represents a strong community, with high social density, institutional thickness, and

geographical closeness. In other words, Cretans tend to be involved with each other and feel a

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high degree of attachment to these associations; additionally, they live in geographic proximity

to one another (Michalena and Angeon 2009).

Cretan municipalities have a determinant role in the environmental authorization process

for RES installations. The decision process results in the involvement of a wide range of

stakeholders and local actors, such as residents, local authorities, the media, private enterprises,

financial institutions, and administrative services. In other words, many different groups have a

seat at the table during the decision process, allowing for collective consensus-based decision-

making (Michalena and Angeon 2009).

(4.4) Regional Study III – Interconnected Greece Interconnected Greece refers all parts of Greece served by DESMIE’s transmission grid.

This paper uses the term mainland Greece interchangeably. The majority of Greece’s energy

demand and population are located in this region. Currently, coal and natural gas thermal plants

supply the bulk of generating capacity. Some areas have developed their wind resources

significantly, but the system as a whole is not close to saturation. Social attitudes tend to be more

negative on the mainland than on the islands.

(4.4.1) Energy Demand A summer peak characterizes annual energy demand on the mainland as well as the

islands, but the variation is less extreme on the mainland. The peak has grown more pronounced

and reached higher levels in recent years, reflecting the country’s tremendous growth in

electricity demand: from 1990 to 2003, residential demand increased by 81%, industrial demand

by 17% and commercial demand by 167%. Supply increased 69%, which is equivalent to an

average annual rate of about 3.8% (International Energy Agency 2006). During 2004, gross

electricity demand was about 51.7 TWh within the interconnected system (Hammons 2008).

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Power demand and supply are located in regionally disparate locations: 68% of

generating capacity is located in Western Macedonia in northern Greece while 33% of total

demand is centered around Athens in the Attica peninsula toward the southern part of the

mainland (International Energy Agency 2006). Thus, transmission lines are particularly

important because Greece transports most of its power a significant distance. Transmission lines

in interconnected Greece exceed 10,750 km: in conjunction with the distribution system, they

provide power to over 7 million customers, or slightly less than 70% of Greece’s total population

(Greek Ministry of Development, Directorate General for Energy, and Renewable Energy

Sources and Energy Saving Directorate 2007). The transmission system is composed of 400 and

150 kV networks, allowing the transfer of power at different voltages depending on the distance

the electricity must be transported and the amount of electricity that must be transported

(Hammons 2008).

(4.4.2) Current Energy Sources As of 2005, total installed capacity on the interconnected system was 11,774 MW. Of

this, lignite accounted for 5,288 MW, oil for 750 MW, natural gas for 2,076 MW, large-scale

hydro for 3,060 and new renewables for about 600 MW (International Energy Agency 2006). As

of 2004, the grid integrated 415 MW of wind, illustrating the fact that the majority of Greece’s

RES installations, excluding large-scale hydro, have been wind turbines; however, these turbines

accounted for only about 1.5% of electricity needs that year (Hammons 2008). By 2006, wind

capacity had increased to 580 MW and biomass accounted for 25 MW (Kaldellis, Zafirakis, and

Kondili 2009). 15 major thermal power stations rated at a total of 8200 MW, 13 of which the

PPC owns, provide the primary generation capacity for the interconnected grid. Eight are lignite

plants, three are natural gas plants, and two are oil plants. The two privately owned plants are

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natural gas powered and located relatively close to the center of consumption (Kaldellis,

Zafirakis, and Kondili 2009). It is estimated that lignite supplies in Greece will be depleted

within 25-50 years depending on consumption rates and changes in local energy content of the

coal (International Energy Agency 2006; Kaldellis, Zafirakis, and Kondili 2009).

(4.4.3) Wind Potential and Market Penetration Areas of high wind potential, such as Southern Euboea, Eastern Peloponnese, and Thrace,

have attracted high levels of investment already. Wind installations are connected to the high

voltage transmission network (Hammons 2008). These regions are generally sparsely populated

and construction of their transmission infrastructure occurred years before most considered RES

generation a viable option. As a result, market penetration has been limited because the existing

local grid is unable to absorb high levels of wind energy. Efforts are currently underway to

reinforce the existing transmission infrastructure: they focus on Southern Euboea, Southeastern

Peloponnese, and Eastern Macedonia-Thrace (Greek Ministry of Development, Directorate

General for Energy, and Renewable Energy Sources and Energy Saving Directorate 2007).

Wind farms connected to the interconnected grid tend to be much larger than are those

found on autonomous islands: the average capacity in 2006 was 17 MW. As of 2006, the

mainland had 442.8 MW of installed wind capacity, representing about three-quarters of

Greece’s total wind capacity (International Energy Agency 2006). However, Greece has

licensed a vastly larger number of plants: as of July 2004, it had granted licenses to 395 wind

installations totaling 3,421 MW of capacity (Hammons 2008). Speeding or easing the process of

progressing from holding a license to constructing a plant would increase Greece’s RES

penetration dramatically.

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(4.4.4) Economic Factors Economic conditions on the mainland differ significantly from those on the Cycladic

Islands or Crete, despite the fact that the same framework for RES support exists in both regions.

Economic differences are mainly due to differences in fuel supply, land availability and grid

capacity.

The heavy reliance on lignite as a fuel for electricity generation has typically ensured that

consumers in the interconnected system enjoy extremely steady and low electricity costs. The

price per kWh of final consumption in Greece has been 52% less than the average retail price

among EU-15 countries (Kaldellis, Zafirakis, and Kondili 2009). Since electricity prices have

been relatively low on the mainland and current supply is generally able to adequately meet

demand, interconnected regions have not experienced the regular power shortages that occur on

the islands. Additionally, conservation and energy efficiency efforts receive little support from

the public because the economic incentives involved are small and there is no perceived need to

reduce energy consumption.

Costs for electricity from conventional fuels are much lower on the mainland than on the

islands, making it more difficult for RES electricity to compete economically. However, RES

installations in the interconnected grid do enjoy some economic advantages. Land is more

readily available, which decreases land use competition and the price of purchasing land.

Additionally, because peak demand is so much larger in the interconnected system, wind farms

can be much larger, increasing the achievable economies of scale. Producers can spread costs

such as labor and connection to the transmission system, which do not change much as capacity

increases, over a larger amount of generating capacity, decreasing the cost/kWh produced. The

mainland can also accommodate the installation of larger wind turbines, allowing producers to

generate the same amount of electricity with fewer turbines, which decreases maintenance costs.

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However, wind speeds are generally lower on the mainland, with the exception of areas where

local concentration effects exist (specific locations that are particularly windy because of local

geographic features rather than large-scale wind patterns). Since wind speed and electricity

generation are exponentially correlated, a 1 MW wind turbine on the mainland will generally

generate less power than a 1 MW turbine on the islands.

Feed-in tariffs on the mainland are lower than those on non-interconnected islands, with

the exception of offshore wind farms, which qualify for the same tariff regardless of whether

they are connected to the main grid (Greek Ministry of Development, Directorate General for

Energy, and Renewable Energy Sources and Energy Saving Directorate 2007). This indicates

that the Greek government believes either that installation on the islands is more desirable or that

installation on the mainland requires a lower level of support because it faces fewer constraints.

Given Greek commitments under Directive 2001/77/EC and the Kyoto Protocol, the latter is

more likely to be the case, although some scholarly articles seem to suggest that island wind

power is more economically competitive than mainland wind power.

(4.4.5) Social and Political Factors The development of wind energy has been primarily concentrated in South Euboea and

the Peloponnese, regions that now exhibits high levels of resistance to the development of more

wind farms (Kaldellis 2005). For example, in the Southern Peloponnese, notably Lakonia, RAE

and the Ministry of Development have considered proposals or approved a large number of wind

installations. However, because of conflicting desires for land use and tension between local

authorities and the central government, the residents of this region vehemently oppose any new

wind installations. In some cases, this hostility has been expressed in “dynamic actions” directed

at individuals and authorities attempting to introduce wind energy in the region (Kaldellis 2005).

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South Euboea exhibits similar conditions: in 2005, the installed wind capacity in the

region was close to 150 MW, roughly half of total Greek wind capacity at the time. The region is

now very hostile to the development of new wind parks. Scholars believe this is the result of a

rapid concentration of wind parks in a limited geographic region over a very short timeframe.

Resistance to wind farms in a region of high concentration does not bode well for the country as

a whole, as it prompts those in regions considering developing wind turbines to question why

residents of regions that currently have installations are so unhappy with them (Kaldellis 2005).

Kaldellis found the acceptability of wind farms among residents of the mainland to be

very low. The study found less than 40% support for existing wind farms in almost every region

examined. Support for new wind parks was even lower: only one-half to one-third as many

people supported new wind installations as opposed them. Scholars attribute this opposition to

the fact that the wind farms developed rapidly through a central government program without

concern for “local scenery aesthetics” or local involvement, as well as the conservative nature of

mainland people that results from their employment as farmers and stockbreeders. As on the

islands, a minority of the population opposes the development of new wind energy installations

regardless of potential economic benefit. This is particularly worrying since even a single person

has the potential to derail a proposed installation through legal action. Unfortunately, neither the

characteristics of this group nor why they are so vehemently opposed to wind turbines are well

understood: greater knowledge of the group could assist in overcoming these negative attitudes.

Uncertainty about the financial and social impact of wind farms also contributes to negative

attitudes towards proposed development (Kaldellis 2005).

The extreme negativity of residents of the Peloponnese and Southern Euboea may also be

attributable to the fact that traditionally a significant distance has separated them from generation

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facilities: the entire Peloponnese possesses only two coal-fired plants, located in close proximity

to one another, while Euboea’s only installation is an oil-fired plant. As a result, mainland

residents are generally less aware of the negative local environmental and health effects that

result from conventional power generation than are their island counterparts. Additionally, the

energy supply on the mainland has generally been cheap and plentiful, creating little incentive in

the mind of consumers for conservation. As a result, mainland residents may be less likely to

accept what some see as aesthetic pollution in the form of wind turbines and historic conditions

prevent potential benefits, economic or broader, from being apparent.

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(5) Findings This section presents a summary of the key findings from each regional study. This

overall analysis incorporates all elements discussed in the previous section in order to describe

situation as a whole and identify key constraining factors. Next, the section explores potential

solutions to these challenges. Solutions are both technical and social.

(5.1) Overall Analysis This section presents a summary overall situation on the Cycladic Islands, Crete, and the

mainland. It allows for side-by-side comparison of the challenges each region faces and ties

together the five aspects of wind energy presented in each regional study in the previous section.

(5.1.1) The Cycladic Islands The Cycladic Islands have very high wind potential and a favorable social climate.

Additionally, the high cost of the current energy sources mean that the consumers on the island

can benefit economically from any increase in the amount of energy they derive from RES

sources: In remote situations, RES installations can actually generate electricity at rates at or

below the going rate. However, there are challenges to achieving economies of scale because of

technical and legal limitations on the amount of wind capacity that can be installed in remote

systems: these have the potential to make the islands less attractive to investors. Overall, the

economic climate on the islands remains favorable because of high wind speeds and mandated

feed-in tariffs.

Technical limits to how much power the system can absorb at any given point in time

constrain the capacity of wind power the Islands can viably install. The grid limits absorption

capacity for energy from wind farms to 30% of peak demand (Greek Ministry of Development,

Directorate General for Energy, and Renewable Energy Sources and Energy Saving Directorate

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2007). Technical constraints from existing power sources further limits maximum wind

penetration to about 20% of peak load demand, with likely penetration being closer to 12-16%

(Kaldellis 2008). As a result, it is impossible for installations on the Cycladic Islands alone to

get Greece to its countrywide goal of 20.1% power from RES by 2010 based on simple

mathematics. The island group represents less than 8% of national energy demand and existing

connections to the mainland are not sufficient to export large amounts of power from the islands.

Current levels of RES penetration have saturated the electrical systems of most autonomous

islands: thus, there is little potential for the deployment of more RES capacity without a technical

solution, such as energy storage (Greek Ministry of Development, Directorate General for

Energy, and Renewable Energy Sources and Energy Saving Directorate 2007). Across the

Aegean Islands, Crete, and Rhodes combined, the total viable capacity of wind is estimated at

about 300 MW, which is less than 10% of the installed wind capacity the Ministry of

Development believes is necessary to meet the 2010 target: 210 MW have already been granted

installation or operation permits. The Ministry of Development predicts that because of

limitations to penetration, Crete, Rhodes, and all the Aegean islands can only install an

additional 35 MW wind capacity without the deployment of new technologies (Greek Ministry

of Development, Directorate General for Energy, and Renewable Energy Sources and Energy

Saving Directorate 2007).

(5.1.2) Crete Crete represents a Greek success story about RES development: penetration has increased

over the past decade and a half to about 15% of total demand. Social acceptance is very high,

but further development of wind farms and other RES sources faces limitations because of wind

power rejection and grid constraints. As of 2003, RAE halted the rapid development RES on

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Crete by characterizing the system as saturated (Giatrakos, Tsoutsos, and Zografakis 2009). The

development of hybrid storage systems is the most likely avenue for increasing Crete’s share of

RES. However, even with the use of storage systems, substantial increases in the number of

wind turbines on Crete is unlikely to increase despite favorable social conditions. Instead,

increases in RES share are likely to come from other sources, such as solar or biomass.

(5.1.3) Interconnected Greece The mainland faces challenges due to the state of its transmission grid and high levels of

social opposition. In addition, not all areas of the mainland have the levels of wind speed

required for wind turbines to be economically attractive. Domestic coal is a valuable resource for

the nation, as it provides a large number of jobs and limits the quantity of oil and gas Greece

must import. As a result, Greece should attempt to extend the timeline for depleting these

deposits, while taking into consideration the potential impact of carbon pricing schemes in the

future. Efforts to improve the transmission grid in order to increase its ability to absorb wind

energy in areas with high wind potential are necessary, as are outreach efforts aimed at

improving the social standing of existing and proposed wind installations.

(5.2) Potential Solutions As shown by the regional studies, Greece must overcome a number of challenges in order

to achieve its EU targets. While there is some variation in how these obstacles manifest

themselves based on local conditions, they all center on the same basic ideas. The largest

technical challenge is finding better ways to match the intermittent supply of energy generated

by RES with the cyclical demand for energy: this would increase the achievable and wise level

of penetration. A growing number of countries are facing this issue as RES penetration increases

globally. On the islands particularly, large fluctuation in seasonal demand and technical

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minimum operating levels for conventional plants that represent a substantial proportion of off-

peak demand, complicate the issue and lead to increased wind power rejection. Economically,

any installation must provide incentives for investors, either through the natural conditions alone

or through the presence of government assistance in the form of subsidies, tax benefits and/or a

feed-in tariff. Socially, efforts must be made to increase the acceptability of both new and

existing wind installations. Politically and legislatively, government bodies should attempt to

further streamline the application procedure.

Technical and economic challenges often go hand-in-hand: a solution to a technical

problem often increases the possible economies of scale or eliminates an inefficiency that

resulted in higher costs per kWh generated. Increased economic benefit can assist in overcoming

social challenges in some scenarios, although the existence of a portion of the population that

resists wind installation regardless of perceived economic effect means that social challenges

require a broader array of solutions than simply making wind energy more profitable for the

residents of a community. Alternatively, simplifying the legal framework and streamlining the

application procedure can make wind installations more attractive to developers or investors.

Greece could also use the legal system to ensure that local communities are involved in the

decision-making process.

Possible solutions to the problems facing future development of wind energy in Greece

include hybrid plants that store excess wind energy for use when the wind is not blowing,

interconnection of autonomous islands with the existing mainland grid, the extension of the

existing grid and development of a modern smartgrid, and social outreach efforts. The following

sections assess each of these solutions in detail. Hybrid plants that can run on both renewable

and conventional fuels, offshore wind installations, the coproduction of clean water and RES

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electricity, legislative revisions, and economic incentives also have the potential to resolve some

of the challenges Greece faces. However, the author believes the solutions included in the first

list are more likely to be used than are those in the second list. As a result, this thesis only

discusses the first set in detail.

(5.2.1) Hybrid Plants – Wind and Storage Storage options can increase the potential percentage of the islands total electricity

consumption that comes from RES by better coordinating the use of RES-generated electricity

with overall demand for electricity. During periods when RES production is high, but demand is

low, excess energy is put into storage. During periods of low RES production and high demand,

the producer draws upon this stored energy and feeds it into the grid, increasing the amount of

power available. However, because no storage system is 100% efficient, the total amount of

energy generated by the RES is more than the total amount of energy the plant sells to the grid

system operator. There are a number of methods for storing energy, including chemical,

electrochemical, mechanical, and thermal. Examples include hydrogen production, battery

storage, pumped water storage, or heat storage in molten salts. At present, economic and

technical reasons make pumped storage the most common option for use with wind energy: it fits

particularly well with wind installations on the top of mountain ridges since a natural gradient

already exists (Anagnostopoulos and Papantonis 2008).

Pumped storage systems work on relatively simple concepts. The plant operator

constructs a reversible hydraulic system with both a pump and a turbine present at the lower end.

Wind energy that the grid would have rejected powers the pump, storing water in an upper

reservoir. When the grid requires additional energy, pumping ceases and water released from the

upper reservoir turns the turbine: the electricity generated is fed into the grid (Anagnostopoulos

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and Papantonis 2008). Energy is lost in the process, as pumping water into the upper reservoir

requires more energy than the water generates when it flows back into the lower reservoir.

However, if the power used to pump the water into the upper reservoir is power that the system

would have rejected, pumped storage represents a net increase in the percentage of generated

electricity that is absorbed by the grid.

In addition to increasing the amount of wind energy that the system actually uses,

pumped storage offers a number of other advantages. It reduces the total cost from operating

thermal plants by limiting the amount of power they must generate. Additionally, because the

source of the electricity used in pumped storage does not matter, producers could use it in

conjunction with conventional sources (Anagnostopoulos and Papantonis 2008). Technical

limitations mean that the most efficient method of generating electricity would be to run all

conventional plants at a set level all the time: fluctuations in production reduce the efficiency of

these plants. If a storage solution exhibits a higher level of efficiency than the current system of

running base-load plants below 100% capacity, then base-load plants could run at a constant

level, using the storage system during off-peak hours and drawing on stored power to

supplement base-load supply during peak hours. However, research and development of storage

system to improve their efficiency must occur before the systems will be widely used

conventional plants since current technology allows for relatively efficient control of the amount

of electricity conventional plants generate. Another possible benefit of pumped storage,

particularly in island settings where water is often in short supply, comes from the potential for

using water stored in the reservoirs for consumption or irrigation, as well as for protection

against fire during emergencies (Anagnostopoulos and Papantonis 2008). Obviously, electricity

cannot be generated by water removed from the upper reservoir and a minimum level of water

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must be maintained for the system to operate. However, the ideas bear further consideration

among communities considering installing pumped storage systems. Other potential issues

include obtaining a adequate supply of fresh water in areas that have traditionally suffered from

shortages,13 evaporative losses, the logistics of determining when to pump and when to generate

power, and design of technical components, including pipe size, reservoir size, pump power,

turbine capacity, and a number of other issues.

A number of studies have been conducted in an attempt to determine the ideal design of

storage systems in a given setting and the ideal level of deployment of pumped storage within an

energy system. Generally, findings about the technology are positive. Based on the positive

scholarly findings, the PPC is constructing a trial plant on Ikaria. It will produce about 23 GWh a

year, one-third of which will come from pumped storage (Anagnostopoulos and Papantonis

2008). Additionally, revised feed-in tariffs under Law 3468/2006 include hybrid plants in the

same category as wind and small-scale hydro, creating a more certain investment environment

than in the past (Parliament of the Hellenic Republic 2006). As a result, until the European

Parliament released the text of the new Directive in December 2008, it appeared likely that

development of hybrid plants would begin to increase over the next few years. The Directive

explicitly states that “electricity produced in pumped storage units from water that has previously

been pumped uphill should not be considered to be electricity produced from renewable energy

sources” (European Parliament 2008). It is unclear whether the EU will count energy from wind

farms used to power the pumped storage unit toward the RES target. If the EU counts this

energy, then the exclusion simply eliminates double counting of RES electricity. However, the

new system would result in higher calculated levels of RES penetration than would net metering

13 Currently, the systems require fresh water because engineers consider salt water too corrosive to be an economically and technically sound choice for use in these systems.

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of the combined RES-pumped storage unit because pumped storage is not 100% efficient. The

technology is unlikely to gain popularity if the decision not to count pumped storage electricity

as a RES causes countries to eliminate feed-in tariffs for hybrid plants.

Despite the new EU restriction, storage remains an essential element of expanded RES

penetration and the Directive also notes the need to support the use of storage systems in order to

integrate intermittent renewable production (European Parliament 2008). At present, it makes

the most sense to deploy hybrid storage systems in areas that have or will shortly reach

maximum RES penetration. In the context of Greece, autonomous islands are most likely to fit

this description. Therefore, if Greece uses pumped storage, the short-term focus should be on

deploying it in places like the Cycladic Islands and Crete. One estimate shows that the

installation of a pumped storage unit equal to Crete’s wind capacity could safely drive hourly

wind penetration on the island to 36.4%, as opposed to the current limit of 30% (Giatrakos,

Tsoutsos, and Zografakis 2009).

In the long-term, hybrid storage could play a role on the mainland as well. However,

mainland RES penetration is currently well below the technical maximum. Therefore, it makes

more sense to increase RES capacity first and then focus on adding storage capacity unless this

option is exponentially more expensive. If the developer concludes that pumped storage at a

proposed installation would increase efficiency and decrease cost per kWh sold, then they should

utilize the technology regardless of the current level of RES penetration. In essence, if estimated

costs due to power rejection are greater than the cost of building a pumped storage system, then

the pumped storage system is an economically sound investment and the producer should be

seriously consider implementing it.

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(5.2.2) Interconnection Small autonomous electric systems, such as those found on the Cycladic Islands, face a

number of unique challenges because of the low number of generating facilities and low absolute

demand. As a result, the capacity of renewables the system can easily incorporate is much lower,

although the percentage of RES penetration the system can accommodate does not vary

significantly based on demand size. While technical solutions such as storage or hybrid plants

can increase RES penetration, the most straightforward method of eliminating the challenges

currently faced by an autonomous system is connecting it to a much larger grid: in Greece, this

would be DESIME’s grid on the mainland. However, interconnection poses its own set of

technical challenges. As grid operators transmit power over greater distances, transmission costs

due to line losses and construction costs increase. The islands’ wind energy is no longer

economically competitive when these costs exceed the difference in generating costs between

wind farms on the mainland and the islands. Additionally, the construction of new high voltage

transmission lines is often controversial: no one wants them running through their neighborhood

and debates about the environmental impact of the lines often arises. A decision must also be

made about whether to use high-voltage direct current (HVDC) or high-voltage alternating

current (HVAC). HVDC has lower transmission losses, making it possible to transmit power

further, but the grid operator must convert it back to AC before feeding it into the main

transmission grid. Currently, HVDC Light technology shows the most potential. It would

improve the functioning of the AC grid by smoothing out instantaneous sags and spikes and

allowing for more rapid resolution of blackouts. Additionally, it could completely replace oil-

based generation on the islands. Lastly, it would strengthen the existing AC connection and

establish an alternate pathway for use in case of damage to either line. HVDC Light technology

has been successfully used for submarine connections in Norway and the Long Island Sound, as

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well as in Gotland, Sweden. The environmental and visual impact is minimal: converter stations

resemble normal buildings and lines are located underwater or underground (Papadopoulos et al.

2004). If Greece succeeds in constructing the transmission lines, interconnection could increase

RES penetration for Greece as a whole by allowing greater exploitation of the wind resources

found on the Cycladic Islands.

Currently, interconnection of Crete with the mainland system is not under consideration

due to strong undersea currents, the depth of the sea and seismic activity in the region (Giatrakos,

Tsoutsos, and Zografakis 2009). However, the Cycladic Islands are located close enough to each

other, the mainland, and South Euboea for interconnection to be a possibility using either HVAC

or HVDC technology (Hatziargyriou et al. 2007). Increasing the population served by the islands

alleviates issues of reserve capacity and penetration in the short-run: the much larger

interconnected grid can absorb much higher amounts of wind energy in absolute terms (MWh

rather than percentage of peak load demand) and provides additional backup capacity to the

islands through the presence of large coal-fired baseload plants. The Cycladic Islands are an

ideal site for such a project because of their extremely high wind potential and their proximity to

Athens, the center of electricity consumption in Greece. Interconnection would allow the

Cycladic Islands to install significantly more wind turbines than is currently possible by

increasing the absolute capacity the network could absorb. One estimate is that the maximum

capacity would be 408 MW on the Cycladic Islands alone, a vast increase from the current

estimate of 300 MW for Crete, Rhodes, and all other non-interconnected islands (Greek Ministry

of Development, Directorate General for Energy, and Renewable Energy Sources and Energy

Saving Directorate 2007; Hatziargyriou et al. 2007). The islands would use this power first, and

then ship any excess power to the mainland via high-voltage cables for consumption: the

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relatively short distance the electricity must travel would minimize transmission losses. If wind

energy cannot meet demand on the islands, DESMIE could reverse the direction of transmission,

allowing the islands to use power generated on the mainland (Hatziargyriou et al. 2007).

Interconnection could also provide local environmental benefits to the islands by

allowing them to limit the operation of oil-fired plants and obtain a greater portion of their

energy from RES and mainland plants. Ideally, interconnection would eliminate the need to

develop new conventional sources on the islands, which represent a particularly sensitive region

from both an environmental and a cultural perspective (Hatziargyriou et al. 2007). Decreasing

local air pollution by decreasing the operation of conventional plants to the technical minima

would improve local quality of life, although this could also make conventional power sources

less efficient and therefore more expensive. Feasibility studies are necessary to determine

whether such a system could potentially allow for the phase-out of all conventional power

sources on the islands, or if the islands would need to maintain some reserve capacity. Multiple

connection points to the main grid and within the islands help to minimize the chance that the

island system could become completely isolated from the mainland due to damage to the high

voltage transmission lines.

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Figure 9: Existing and Proposed Interconnection of the Cycladic Islands

Source: Hatziargyriou et al. 2007

The plan currently proposed would connect Andros, Tinos, Syros, Mykonos, Paros,

Naxos, Euboea, and Lavrio, with a potential expansion to Milos in order to take advantage of

geothermal resources found on the island (Figure 9). A report issued by a joint commission from

PPC, DESMIE, and RAE said the project was “bound to begin around 2010” and declared that

the main goals of the project were ensuring a reliable supply of power on the islands and

gradually decommissioning the autonomous diesel plants. Hatziargyriou et al. used GIS

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technology to estimate the number of turbines each island could install if there were no local grid

penetration limits. The parameters used to select potential sites were: terrain slope of less than

15°, altitude of less than 1200m, wind speed greater than 6m/s, maximum wind park installed

capacity less than 20 MW, existing infrastructure and substation locations, exclusion of

archaeological sites, exclusion of sites visible from Ancient Monument Areas, exclusion of

Nature Protected Areas, distance of at least 1000m from towns, and distance of at least 1000m

from the coastline. Based on these parameters, there are 290 possible sites spread across the

Cycladic Islands, with an average wind speed of about 9.7m/s: this indicates a very promising

investment environment for wind energy development (Hatziargyriou et al. 2007).

Limits on the amount of wind power the islands can generate still exist under

interconnection because of the thermal limits of the interconnection networks. Therefore, while

the 290 viable wind parks could support 1250MW of capacity, the maximum installed capacity

on the interconnected islands is 408 MW. Despite being less than one-third of the possible

capacity, the maximum capacity under interconnection still represents a significant increase over

the capacity possible without interconnection. It is more than double PPC’s forecast of peak

demand on the Cyclades in 2015, meaning that even during periods of high demand on the

islands, if the wind was blowing strongly, more than half the power generated on the islands

would be shipped to Lavrio and Euboea. Wind power generated on the islands would cost 30.6-

65€/MWh, with 84% of the potential sites having costs below 50€/MWh. Additionally, the

internal rate of return on sites with the highest production costs is above 17%, meaning that wind

power installation on the Cycladic Islands would be attractive even without an installation

subsidy: the pay-back period is extremely rapid under the conditions present on the islands and

most sites have internal rates of return well above 17%. For example, on Andros, the island with

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the best wind potential, the least efficient wind park has production costs of 37€/MWh and an

internal rate of return just less than 40% (Hatziargyriou et al. 2007).

There are a number of economic and technical reasons to consider interconnection.

However, since the planned start date for construction is in 2010, the timeline is too long for

interconnection to be useful in improving Greece’s performance on the 2010 goals. However,

interconnection of the Cycladic Islands will likely be an essential element of Greece’s strategy

for meeting its obligations under the new EU Directive and the Kyoto Protocol because it allows

the country to take advantage of the high quality and currently under-exploited wind resources

available on the islands.

(5.2.3) Grid Expansion and a Smartgrid The grid represents a key component of the electricity system: without sufficient grid

capacity, it is impossible to transmit power from producers to consumers. Greece designed its

existing grid infrastructure well before renewables were a viable power source, so the grid’s

design favors connection to a handful of large-scale conventional base-load and peak load power

plants rather than a multitude of small-scale intermittent RES plants. The Ministry of

Development recommended that in South Euboea, Southeastern Peloponnese, and Eastern

Macedonia and Thrace planned RES projects should wait for the completion of current

transmission construction projects before beginning installation, showing the importance of

transmission capacity. Instead, investors and developers should focus on installations in areas

without transmission or local acceptance problems (Greek Ministry of Development, Directorate

General for Energy, and Renewable Energy Sources and Energy Saving Directorate 2007). This

approach essentially amounts to picking the low hanging fruit first. However, it has the potential

to create social resentment in regions previously supportive of wind energy if the installation of a

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large number of turbines occurs rapidly and without sufficient community involvement. There is

no guarantee that such a reaction would occur, but government planners and private investors

should be aware of the possibility.

Greece has begun to realize how difficult the intermittent and dispersed nature of most

RES installations makes maintaining a supply of uninterrupted power. Large-scale hydroelectric

provides one exception to this rule. As a result, RAE is composing a set of parameters that

would resolve the problem by using new technology to control data processing and load

dispatching. These upgrades would increase consumer costs unless the government provides the

funds. Various techniques and capabilities for incorporating RES should be priced and appraised

in parallel with conventional sources in order to minimize cost to consumers while maximizing

benefits (Greek Ministry of Development, Directorate General for Energy, and Renewable

Energy Sources and Energy Saving Directorate 2007). In the future, an updated grid will be

essential to meet both growing electricity demand and the 2020 targets. While literature

published by Greek organizations generally does not employ such terminology, the technologies

involved in the updated grid are essentially the same as those referred to as a smartgrid in the

United States.

(5.2.4) Social Outreach Negative social attitudes toward wind installations on the mainland represent a significant

constraint to increasing RES penetration in the interconnected system. Since this system

represents the bulk of Greece’s power consumption, it must come close to the overall target in

order for Greece to achieve the target. Although academic research in the field is relatively

limited, the general consensus seems to be that renewables are more acceptable in areas where

the power supply is insufficient; where deployment of RES systems happens slowly and with

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public involvement; where conventional plants have substantive local effects and are viewed

negatively by the population; and where dense social ties allow for easy collection and diffusion

of information (Kaldellis 2005; Michalena and Angeon 2009).

Crete reached a situation in the early 1990s where power demand sometimes exceeded

supply during the peak summer months. Crete’s options were to meet new demand through

conventional sources, meet new demand through renewable sources, meet new demand through a

combination of the two, or reduce demand. The local population found the first and fourth

options highly unappealing, while the second option was not technically viable at the time. As a

result, Crete chose the third option and promoted demand-side management techniques to limit

the growth rate of electricity demand. Support for the outcome is extremely high and is likely

partially because Cretans can see the tangible increase in quality of life brought by the

deployment of RES. The reason why local resistance to conventional plants was particularly

strong in Crete is believed to be due to their perceived negative impact on tourism. Cretans have

also been in contact with wind turbines for longer than have any other Greeks: generally,

increased contact and familiarity leads to increased acceptance (Michalena and Angeon 2009).

Since awareness of power constraints appears to be one of the key elements required to

create a social environment that is welcoming of existing and new RES installations, Greece

could use education efforts to increase public acceptance of wind installations. Some believe

that if Greek citizens better understood the potential consequences of global warming, negative

social costs of conventional plants, the realities Greece’s limited coal supplies, and the

obligations Greece has under EU directives and the Kyoto Protocol, they would be more

accepting of wind installations. This argument relies on the idea that people care about more

than just their own self-interest and that they have some sense of broader responsibility and

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obligation, although social education also emphasizes the personal benefits to specific groups

from embracing these new technologies. Some see an approach that focuses on education as

condescending because it seems to imply that if people simply knew more, then they would see

the error of their ways and dismisses any potential validity of local concerns. However, given the

disparities that exist between commonly expressed views and scientific knowledge, Greece has a

clear need for outreach of some sort.

Another important element of generating social support is involving the local community

in the decision-making process. While the emphasis Greece has placed on expediting the

permitting procedure for RES installations has a number of benefits in terms of promoting

investment, the importance of local buy-in should not be underestimated. The mechanism for

giving local community members a sense of ownership over the process is not clear: town-hall

style meetings that are fitting in an American setting are less culturally appropriate in Greece.

Again, Crete provides some examples of how to achieve local involvement. Key actors should

be identified and used to increase community support. Communication channels between local,

national, European, and international authorities need to be established. Additionally, a long-

term vision of the benefits provided by RES installations gives residents time to adopt new views

of the technologies (Michalena and Angeon 2009). Developers should take into account local

culture and heritage when picking potential RES installation sites, as communities are

significantly more likely to support installations that do not threaten unique characteristics of the

area (Michalena and Angeon 2009). Most importantly, any effort to increase community support

must consider the unique local conditions, values and structures: it is highly unlikely that a “one-

size-fits-all” approach will succeed.

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Attention to the social aspects of developing wind installations has been largely missing

from efforts on the part of the Greek government: the most recent annual report made in

conjunction with EU Directive 2001/77/EC focuses solely on plans to overcome technical and

economic challenges associated with RES development. While the technical and economic

challenges are certainly important to overcome, Greece, or any country, cannot ignore the social

challenges. A complete strategy is necessary: if Greece is serious about meeting its targets, this

strategy must at least begin to create a welcoming social environment for RES throughout

Greece. It is important for decision makers to remember that RES installations should provide

environmental, economic, and social benefits, as well as that the local population is the end-user

of these benefits, not an obstacle to be overcome (Michalena and Angeon 2009). The challenges

presented on the mainland of Greece generally fall into the category of NIMBYism: people do

not oppose wind energy per se, but they are adamantly opposed to having it installed near their

home. Attitudes like this have been problematic in many locations around the globe that are

developing wind energy. There are no easy solutions to the problem, yet it must be resolved in

order to increase global wind penetration.

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(6) Analysis This section discusses the conclusions drawn from the research and their broader

implications. (1) The main constraining factor across all regions is technical limits to grid

penetration, because of either local transmission infrastructure constraints or system-wide

demand levels. (2) Interaction between Greece and European Union governing bodies make

Greece more likely to have and work towards RES standards than would be the case if it were

not part of the EU. Lastly, (3) misinformation is a significant distorting factor in Greece, often

preventing wind installations from occurring. The first influences the focus of future technology

promotion schemes, while the second two influence the speed at which Greece develops RES.

An understanding of all three is essential for continued forward movement in this area.

(6.1) Grid Constraints The technical constraints of grid capacity and existing power sources are the most

important factor to overcome for wind installation to continue: without technical capacity to

install additional wind turbines and incorporate the power they generate into the system, social,

economic, and political issues become irrelevant. In other words, if there is no technically viable

way to install wind turbines, the economic competitiveness of the power that would be generated

the strength of social support does not matter.

The timeline set by the EU makes the speed at which Greece can bring RES installations

can be brought on-line is extremely important: Greece has a target of 20.1% RES by 2010, but as

of 2007 had less than 10% RES generation including large-scale hydroelectric plants (Greek

Ministry of Development, Directorate General for Energy, and Renewable Energy Sources and

Energy Saving Directorate 2007). Clearly, even with rapid construction, it will be extremely

difficult, if not impossible, for Greece to meet this target. The countrywide level of the target is

another key factor in recommending that Greece focus on developing wind power on the

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mainland, rather than the islands, which generally possess higher potential. Since the target is

for the country as a whole, it makes sense to install turbines first in the areas where development

will be fastest and easiest, and then expand out to regions that require more substantial

investment in transmission grids and/or storage capacity. This rationale underlies the order of

priority given here to various projects that would all ultimately result in an increase of RES

penetration on the national level. If the goal were simply to create communities using clean

energy, or if an island decided to turn to renewables for reasons related to the community, the

recommendations for the future would differ from those found here.

Based on grid limitations and the importance of rapid development, the overlap between

areas of the mainland where the transmission grid is underutilized or has been enhanced, or

where upgrades are in progress and areas of high wind potential represent the best location for an

immediate expansion of Greece’s wind power capacity. Given the intermittent nature of wind, as

well as fluctuating levels of demand on a daily and seasonal basis, reserve capacity and

distribution of wind installations is essential to consider when increasing the percentage of

electricity generated by wind. An integrated grid allows for the transmission of power from one

area to another, meaning that power from excess wind in one region could be sent to another

region where the wind was not blowing, thereby preventing economic losses due to both power

rejection and power shortages.

In essence, the grid means that on a national level, the percentage of backup capacity can

be lower: installing wind power on a non-interconnected island requires either storage capacity

or back-up capacity almost equivalent to the wind capacity installed unless hybrid systems are

used, whereas wind power on the mainland can have a lower ratio of back-up capacity to wind

capacity since the odds that all of the mainland’s wind turbines will stop working at exactly the

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same day are extremely low, especially if wind farms are distributed across the country.

Additionally, fluctuation in demand on the mainland is less severe than on the Cycladic Islands

or Crete, meaning that the technical minima of existing base-load plants is less likely to lead to

wind power rejection because of excessive supply: unlike island plants, mainland plants rarely

operate at or near the technical minima.

From the perspective of climate change and local air pollution, the focus on the mainland

also makes a great deal of sense for the rather obvious reason that this power system accounts for

the majority of Greece’s electricity generation and associated emissions. Coal is the primary

power source in the current integrated grid, so displacing those power plants first makes a great

deal of sense in terms of mitigating CO2 emissions and particulate matter. The mitigation of air

pollution would improve quality of life among Greece’s citizens, as well as aiding in the

preservation of priceless cultural landmarks such as the Parthenon and hundreds of other ancient

monuments by mitigating acid rain.

However, there are some drawbacks from an energy security and social perspective: the

coal is part of an entirely domestic supply chain, while the oil used to generate much of the

electricity on the islands is imported from foreign countries. In addition, the coal industry

largely incorporated into the state-run Public Power Corporation. Any shift away from coal is

likely to result in job losses, which are politically and socially unpopular, and could lead to

general strikes if the scale of job losses was large enough. Clearly, care must be taken to provide

assistance in transitioning members of the current energy workforce into a new RES workforce.

On the whole, the challenges associated with back-up capacity and lack of

interconnection among the islands, combined with the size of the population served in the case

studies, means that the mainland appears most attractive in the short-run. However, social

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resistance to wind installations on the mainland makes mainland installation a less than ideal

situation. In a perfect world, wind turbines would be installed in regions with high wind

potential and social support, such as the Cycladic Islands. Additionally, further expansion within

the mainland will require an upgraded transmission system and the incorporation of new energy

management technologies, resulting in a smartgrid. Such improvements are costly and time

consuming.

Since there are limitations to the amount of capacity that the currently unexploited

transmission potential on the mainland can support, Greece should complete the proposed

interconnection between the Cycladic Islands and the mainland while mainland installations are

under construction. Interconnection resolves the vast majority of problems associated with

increasing wind installations on small islands. Connecting the islands to the mainland grid

reduces the need for additional reserve capacity and the percentage of time when they system

rejects wind power because there an energy surplus. Additionally, wind turbines installed in the

islands are more efficient than those on the mainland because of higher wind speeds.

Interconnection would increase the maximum amount of technically viable wind capacity on the

islands from about 6-12 MW (based on six installations of 1-2 MW) to over 400 MW,

representing a substantial contribution to the country’s overall installed RES capacity.

However, without political cooperation, Greece may not be able to complete these

connections within the timeframe set by the EU. Without significant support from the

government and an easing of the regulatory process, approval of the proposal itself is unlikely to

occur before 2010 and construction of the cables would require additional time on top of the

approval process. Education of local communities is especially important for this measure, as

they have been the ones providing much of the resistance to the transmission proposals, despite a

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general acceptance of wind power. Care must also be taken to ensure that the islands do not feel

that they are being used as a massive power plant for the mainland: financial compensation may

come into play, possibly through the legislative requirement that renewables generators give 3%

of their profits back to the communities in which they operate. Posing the installation as the first

of many might increase public approval.

In essence, from a technical and resource standpoint, installing wind farms on high-

potential islands and interconnecting them with the mainland is the ideal method of utilizing

Greece’s wind resources. However, from a political and social perspective, it presents

significant challenges. Despite these challenges, interconnection appears to represent the mid-

term proposal with the largest potential impact on the country-wide situation.

In the long-term, attention returns to the mainland: the transmission system must be

revamped to incorporate distributed generation of intermittent RES. Additionally, efforts must be

made to improve the social perception of wind installations. Increased wind penetration in the

mainland actually allows Greece to stretch its domestic lignite supplies over a longer time period,

thus delaying increased demand for foreign oil and natural gas and the economic losses

associated with the death of a domestic industry. New technology should be incorporated into

the grid design, allowing for the creation of a smartgrid that can manage the various resources

connected across the grid and ensure a steady and secure supply of energy. Wind prediction tools

will also be an important element of the long-term plan because they allow for better matching of

supply and demand.

On a broader level, these findings indicate that RES should be installed in areas already

linked to the primary grid, rather than in isolated regions that lack interconnection. Within the

grid, efforts should be made to place renewable installations in locations with the highest

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renewable potential, but expenses associated with grid expansion should also be considered.

Countries should pursue interconnection if it is possible to easily and inexpensively connect an

area of high renewable potential to the existing grid, as is the case for the Cycladic Islands. The

high level of RES penetration on Crete and factors that prevent interconnection mean that the

island is unlikely to play a significant role in Greece’s future RES strategy, despite the unusually

high level of social support found on the island. The only option for increasing penetration in

situations similar to Crete is to deploy storage technology. The government should support

research in these areas, as they will be important in the long-term, but grid enhancement should

be the priority. Grid expansion requires political and social support, as expansion tends to be

more controversial than simply updating the existing grid.

These recommendations only apply if increasing a country or region’s overall percentage

of renewables is the goal of building new RES. If the goal were to allow an isolated island to turn

to primarily renewable energy, the solution would emphasize storage capacity and a diversified

RES portfolio rather than grid limitations. The national level of the target allows Greece to take

advantage of areas with high renewable potential in order to make the installations as effective as

possible. Relative effectiveness declines in importance if the goal is to move an entire

community away from conventional energy sources – in a situation such as that, the question

becomes “What RES make the most sense in this location?” instead of “Where does it make the

most sense to place RES?” Overall, in a region where high potential for renewables exist, the

grid and its ability to transport electricity from one location to another are the primary

constraining factors. Since expanding and updating the grid generally requires some level of

government approval, the political and social attitudes of the area are important as well.

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Continued deployment of RES requires an up-to-date and extensive grid, so the grid should be

expanded to connect areas of high renewable potential that are not currently integrated.

In summary, while parts of the mainland where grid enhancement has occurred or is in

progress are the most viable location for immediate development wind installations, further grid

enhancement on the mainland and interconnection between the mainland and the Cycladic

Islands should be a priority for the future and is potentially more beneficial. Further RES

penetration on Crete is unlikely to be a significant contributor to country-wide targets because of

the overall size of demand within the system.

(6.2) European Union – Greece Interactions Greece has pursued RES at a much higher rate than would have been likely otherwise

because of its relationship with the EU. The targets are set by an outside group, which allows the

Greek government to distance themselves from public unhappiness with the goal. Since the

transition to renewable energy is relatively expensive and Greek citizens do not have a tradition

of pushing for environmental efforts, the ability to push responsibility up one level further is

important in allowing the government to achieve these targets while still retaining their political

popularity. In essence, having targets set by the EU has allowed Greek politicians to turn to the

public and say, “Look, we’re not happy about this either, but the EU has said we have to do it, so

we’re going to do the best we can to make it beneficial to you.” It allows the government to

pursue new energy sources while remaining in the good graces of the public. In addition,

although the targets 2010 are indicative rather than mandatory, there are consequences to failing

to make a serious effort to achieve the targets. The combination of carrots and sticks in the form

of financial or technical assistance and punishments provides incentives for continued progress

toward the targets. Neither one would be sufficient to prompt action on its own, but together they

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have been fairly effective: although Greece still has a long way to go in order to meet its 2010

target, it has made a great deal more progress than could have been expected had the EU not

been involved.

While the presence of an over-arching body pushing for action has proved beneficial to

Greece from a political standpoint, Greece’s geographic location has made it difficult for the

country to take advantage of intra-EU connection, a benefit most other EU countries have

utilized. Since Greece is geographically far from all other EU countries, with the exception of

Italy, interconnection with these countries to take advantage of their development of RES and the

associated economies of scale is next to impossible with today’s dominant technologies. There

has been some suggestion that HVDC cables could be used to resolve this problem, but these

would have to either be placed underwater between Italy and Greece, or pass through non-EU

countries. Either option poses both technical and political challenges. As a result of its location,

Greek efforts to achieve the EU target have focused primarily on building RES installations

within its borders, rather than using interconnection with neighboring countries. Interconnection

efforts have focused on more traditional energy sources, such as natural gas pipelines, which

generally easier to achieve than an agreement regarding the exchange of electricity generated

from various RES installations in different countries. Such agreements are possible, but they are

significantly easier to achieve between two EU countries than between an EU country and a non-

EU country. In addition, many of Greece’s major population centers are not located close to its

land borders, although there is some potential for interconnection between the eastern-most

islands and Turkey.

Had Greece been able to easily engage in the intra-EU trade in energy, it would have

been able to avoid a number of the limitations that stem from the intermittent nature of wind and

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other RES, possibly allowing installation to occur at a faster rate. However, this alone would not

have increased installation rates, as the relatively slow speed at which they have progressed thus

far is also related to the regulatory process in Greece. This is another area in which the EU may

be able to provide pressure and force change to occur at a faster rate: Greece needs to continue to

develop more streamlined application procedures for those wishing to develop RES installations,

and EU guidelines could potentially assist in this effort. Greece is not the only country that

would benefit from such streamlining – a number of EU countries would likely make more rapid

progress in achieving their RES goals if application and permitting procedures were less

convoluted. Efficient government is not something that has traditionally been high on the list of

Greek priorities, so outside pressure would be particularly useful given the cultural context.

The model of a larger body pushing countries or states to action is one that could be

applied in numerous contexts. One of the largest challenges associated with increasing the

market-share of RES is that it is an expensive endeavor that is not politically popular in many

countries. In democratic settings, allowing politicians to outsource responsibility for the decision

to a group that is not directly accountable to the public can expedite the speed with which a

transition takes place. In general, the United Nations has not been particularly effective in this

role because it lacks the ability to take punitive action against those who fail to comply. The

Kyoto Protocol is essentially voluntary and relies on self-enforcement; as such, it has proved less

successful than was hoped. While the EU targets are still non-binding, they have a bit more

force behind them because of the ability of the EU to take actions such as removing countries

from the EU-ETS. The likelihood of another supra-national body such as the European Union

emerging in the next few decades seems relatively low, but such a model has the potential to be

highly effective in speeding up the transition to RES. In particular, this could benefit developing

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nations that are in the process of creating energy infrastructures by forcing them to start with

technology and infrastructure suited to their RES resources. It appears unlikely to be an effective

mechanism in the United States, if only because the United States is highly unlikely to join any

group that requires it to relinquish a portion of its sovereignty. However, it is possible that such

a system could be deployed in the United States on a regional basis, perhaps through the

formation of coalitions of states based on existing grid infrastructure.

(6.3) Public Attitudes and Misinformation Public perception and the attitudes of those in the Greek government have also

significantly influenced the development of RES in Greece and will continue to do so in the

future. The fact that Greece has traditionally faced a “knowing-doing” gap when it comes to

environmental issues carries over to RES via its role in mitigating climate change. There is

significant evidence that while Greeks profess concern about the state of their environment and

environmental issues, when asked about what actions they take to influence the environment for

the better, very few come up – recycling rates are low, many people litter, and energy efficiency

or conservation on a personal level is virtually unheard of. In addition, misinformation about

wind installations and RES in general has run rampant in Greece. Few ordinary citizens really

understand how feed-in tariffs work, what the country’s energy balance looks like, or where the

energy from these installations is likely to be consumed. Combined, the knowing-doing gap and

misinformation have been a significant deterrent to the development of new wind installations.

Public opinion is particularly powerful in Greece, which has a robust history of social

protest as well as very tight-knit family groups and, often, communities. As a result, community

buy-in to any project is extremely important in expediting the process: if an investor has the

support of the community, the installation is likely to be approved at a much faster rate than if

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the community opposes the installation. Support is particularly important in the small island

communities that have the highest wind potentials in the country. There is evidence that

suggests that education and involvement of the community from the early stages can have

positive impacts on public perception. In addition, distributing wind installations across broader

areas, rather than concentrating them in one region, generally makes them more politically

popular. Incidentally, distribution of installations is also ideal from a technical standpoint, as it

allows for a diversification of resources, limiting the chances of a power shortage at any given

time. If wind energy can be tied to national pride or even just escape from the many negative

associations that have arisen in recent years, Greece’s ability to succeed in meeting its EU targets

will improve dramatically.

The importance of education and community involvement is one that applies to almost all

communities where wind energy is being considered. NIMBYism has the potential to be

counteracted to some degree through an unbiased presentation of facts: the benefits of wind

energy should be presented, but negatives should not be omitted, as this weakens the perceived

validity of all facts presented. The situations where wind installations have been abandoned

have largely occurred in areas where misinformation and negative sentiment ran rampant. It is

never going to be possible to achieve one hundred percent buy-in, but it is likely to be increased

if the community feels that they have been involved in the decision making process from the

beginning, rather than being left out in the dark until the end. Developers must make a greater

effort to reach out to the public and make information available in easily understandable terms.

An emphasis should also be placed on showing the community the potential benefits to them

from the installation of wind turbines – job creation, pollution reduction, and the ability to

promote themselves as a user of green energy to the growing number of eco-conscious travelers

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are likely to resonate with the local population. In a more urban setting, such buy-in becomes

less important, but in general, wind installations are not developed within the immediate

proximity of cities.

(6.4) Broader Implications Within Greece, there are numerous parallels to the situation found on the Cycladic

Islands. Many, but not all island groups are close enough to DESMIE’s transmission system for

interconnection to be an option. For those unable to connect to the main grid, interconnection

among neighboring islands should be considered, although the resultant systems would still be

significantly smaller than even Crete’s power system. The Cycladic Islands also offer parallels

for small autonomous power systems around the world. Crete and the mainland have no

parallels within Greece, although the success RES installation has met with on Crete could

potential serve as a model for Rhodes, which is the second-largest autonomous power system in

Greece, albeit still significantly smaller than Crete. Additionally, the findings for Crete can be

generalized to other islands or networks with similar load capacity and high growth in demand.

The technical findings for the mainland are applicable to almost any large transmission network,

while the economic and social findings are more limited in broad applicability. However, it is

interesting to note that mainland Greece and the United States generate a similar share of their

electric power from domestic coal resources, and thus have traditionally enjoyed access to

abundant, reliable, and low-cost electricity. However, Greece faces greater urgency in

minimizing its coal consumption because its supplies are predicted to be depleted in 25-50 years,

rather than more than the more than 200 years estimated to remain in US coal reserves.

The primacy of the grid as a constraining factor has a number of implications for the

world at large. As penetration of intermittent renewables continues to increase, transmission

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grids must keep pace. Penetration of more than 30% is difficult to achieve under current

technological limitations. An increase beyond these levels can lead to instability in the system.

The reality of these constraints has already been shown in the United States by the near-failure of

electricity networks in both California and Texas due to the combination of hot days and low

wind levels: both grids narrowly avoided crashes due to insufficient supply. As a result, the

development of smartgrids centered on distributed and intermittent generation as replacements to

traditional grids focused on centralized and constant generation will be vital to future RES

deployment. For countries with existing grid systems, this means investing in grid upgrades and

redesigns. For countries that are only beginning to construct infrastructure, many of these

problems can potentially be avoided by implementing grid designed to handle distributed

generation from the beginning. However, such grids are more expensive than traditional grids,

so support from other national and international bodies will be necessary.

The success that EU directives have had in motivating Greek political action has

extremely interesting implications for global efforts to increase RES generation. It implies that,

at least within democracies, an outside mandate can actually be politically beneficial by allowing

elected politicians to distance themselves from the decision. Rather than being the ones forcing

change upon the public, they can take on the role of the person who understands why you are

upset and would love to help, but who simply has his hands tied by rules coming from higher up.

While the likelihood that the US would become part of an organization similar to the EU

is extremely low based on the emphasis the country has traditionally placed on policy autonomy,

it is possible that similar dynamics could be generated within the U.S. government. The legal

wrangling that would be necessary to achieve it is complex, but if a mandate could be issued by a

non-elected body, such as the EPA, congressional members and state governments could

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distance themselves from the decision itself while taking the steps necessary to achieve the

targets. Under current conditions, the shift to RES is a political hot potato: while environmental

awareness and demand for “greening” is growing, conversion is expensive and financing is in

short supply due to the collapse of the banking industry that has occurred over the past several

months. President Obama’s decision to include substantial government funding for renewable

energy and energy efficiency initiatives in his recovery plans may have served as the outside

push necessary to generate a meaningful shift in the United States: only time will tell whether his

actions will create incentives for improvement similar to those created by Directive 2001/77/EC.

Lastly, public support for RES projects is vastly important to their success, yet efforts to

increase public acceptance of wind turbines are often completely omitted from plans for RES

development. The logic behind this omission is unclear: it may be that solutions are extremely

hard to come by, or that most assessments are performed by engineers and economists who are

focused on the technical and economic aspects of proposed installations. Regardless, efforts to

incorporate the public in the process should be an essential part of any plan. This can be achieved

intentionally through community meetings, education programs, tours of wind farms and other

similar programs. However, support can also occur naturally, particularly when the current

method of producing electricity is insufficient to meet the demands of the population, resulting in

a lower quality of life than desired. On a broad level, the natural concentration of support in

areas with power shortages provides an extremely favorable atmosphere for RES development:

such areas should be on the forefront of plans to increase RES penetration.

These conditions are most likely to be found in isolated areas that mirror the situation on

the Cycladic Islands, or in areas that are not currently electrified. In areas with little or no

electrification, even an intermittent source of electricity represents an improvement in quality of

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life. Since these areas were not currently powered, installing RES in them does not constitute a

reduction in the current use of conventional generation, although it may prevent the expansion of

conventional generation in the future. Within the United States, Alaska provides the strongest

parallel to the Cycladic Islands: there are a large number of isolated villages that rely on local

diesel-based generation for their electricity supply. In these towns, wind turbines and

hydropower are widely accepted because energy costs are extremely high and any reduction in

the amount of energy generated using diesel fuel represents a decrease in energy costs; wind

energy can compete with conventional fuels in such settings.

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(7) Conclusion This thesis assesses the current state of wind energy in Greece by examining the technical,

economic, social and political factors that influence the development of wind installations. It also

provides lessons learned and makes recommendations for future efforts to promote wind energy.

The research was broken down into four studies: countrywide factors and regional studies of the

Cycladic Islands, the island of Crete, and interconnected Greece. The most relevant countrywide

factors were the national legislative framework, EU membership and associated pressures and

obligations, and national players in the energy industry, namely the PPC, RAE and DESMIE,

which are the majority power producer, regulatory authority, and transmission system operator

respectively.

The study of the Cycladic Islands indicates that the combination of an extremely low

absolute level of demand, vast seasonal fluctuation in demand due to tourism, dependence on

imported oil for electricity generation and extremely high wind potentials can create an

environment where residents are willing to consider the development of wind farms. Despite

this, technical constraints that cap potential grid penetration and lead to wind power rejection

have limited the deployment of wind energy: there is no economic incentive to build a wind farm

that cannot sell the vast majority of its power to the grid because of stability concerns. The use

of hybrid systems or storage methods offers some potential for overcoming these issues, but even

if 100% of the islands’ power came from RES generation, this would only constitute 186 MW of

generation capacity in 2015. This does not come close to the capacity Greece will need to reach

its EU targets. Interconnection with the mainland, however, would allow for the installation of

408 MW of wind capacity across the island group, which is significantly more than the use of

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storage solutions allows for. As plans for interconnection move forward, it will be important to

assess the social response from involved communities.

Crete possesses a well-designed grid capable of handling higher levels of RES

penetration than can either the mainland grid or smaller autonomous island grids. It has

experienced 8% annual growth in electricity demand in recent years, but Cretans oppose both the

construction of new thermal plants and the expansion of existing ones. As a result, RES

development, primarily in the form of wind energy, began in the early 1990s; residents view it

very favorably. The island currently obtains about 10% of its energy from wind turbines,

making it one of the most successful examples of RES development in the country. Further RES

penetration on Crete will require the development of storage technologies, since interconnection

is not a viable option for Crete. It is unlikely that Crete will play a significant role in increasing

Greece’s wind capacity in the future, but the island can provide valuable lessons for forward

movement in other regions.

On the mainland, the combination of lignite coal supplies, a transmission grid designed to

incorporate conventional power generation, social opposition, and lower wind potentials create

an environment where wind power has been less successful than the area’s high wind potential

allows for. The rapid development of a large number of wind farms in concentrated areas

without efforts to involve the local population in the process generated great deal of resistance to

both existing and new installations in these communities. This has negative implications for

future developments, since residents of areas with proposed turbines often look to areas with

existing turbines as predictors of the outcome. Ultimately, Greece will need mainland

installations in order to achieve its EU targets. Options for increasing wind penetration in the

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mainland include grid enhancement, social outreach programs, and interconnection with island

groups where both wind potential and social acceptance are higher than on the mainland.

Based on the regional assessments and the role of countrywide factors, the author

proposes a three-stage plan to achieve continued penetration of wind energy, and RES more

broadly, within the Greek electric system. In the short-term, efforts should focus on installing

turbines in mainland areas where transmission capacity is already sufficient or improvement

projects are under way and nearing conclusion. Greece should also emphasize efforts to include

local residents in the process. While mainland installation is in progress, the country should

pursue interconnection between the mainland and the Cycladic Islands, with the goal of

completing the required transmission lines by the time mainland installations in areas with

transmission capacity are completed. The development of the wind resources found on the

Cycladic Islands for use on the mainland is the medium-term solution. In the long run,

significant improvement and revamping of the mainland transmission system will be necessary

to allow for further RES development on the mainland. Ideally, by this point in time, the public

will be more accepting of wind turbines because they have had time to become accustomed to

their presence.

Greece also offers two universal lessons regarding wind power implementation. First,

Greece’s membership in the EU pushed the country towards increased RES installations, albeit at

a rate that is still below that set by the EU. The opportunity for politicians to outsource

responsibility for the negative aspects of a transition to RES makes it more likely to occur, a

lesson that is applicable across the globe. Secondly, social attitudes represent a significant, but

often ignored, factor in determining the success of proposed wind installations. Both the degree

of community involvement and the supply of energy in a region appear to shape social attitudes:

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if energy is costly and in short supply, support is likely to be higher than if energy is abundant

and cheap.

In summary, as the development of wind energy increases across the globe, grid

constraints will become increasingly relevant. Outside pressure for change can serve as an

important motivating factor for action in countries that might otherwise be reluctant to enact

legislation or programs advocating a shift towards RES. Lastly, those contemplating developing

wind farms must consider social attitudes, even though they are difficult to explain and

potentially challenging to alter: failure to consider the impact of local opposition can be a costly

mistake. It is possible to generalize solutions that make sense for the Cycladic Islands and Crete

to autonomous power systems of similar size and to apply findings about the importance of the

grid on the mainland to any large-scale grid designed to handle conventional generation capacity.

The diverse conditions found in the three regions analyzed are representative of much

larger samples on a global level. It is easy to generalize technical solutions, while economic

elements are applicable to areas with a similar energy portfolio composition. Social attitudes,

while sharing some common elements such as the occurrence of NIMBYism, are harder to

generalize, and the legislative framework is unlikely to be identical across countries, although

efforts to increase wind development could attempt to mimic successful elements of Greek

legislation. The field of wind energy faces a number of challenges to continued development,

but the future in Greece looks promising.

Further research addressing the field’s challenges and potential solutions in an integrated

manner is essential for forward movement: energy production plays out in a multi-dimension

world and attempts to understand it from only one perspective will almost always fall short.

Technological development will play a large role in the ability of Greece to meet its targets, as

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will efforts to create favorable social, political and regulatory environments for RES installations.

No single aspect of wind energy is powerful enough to allow for success on its own, but a failure

to address almost any aspect has the potential to derail wind installations. Therefore,

interdisciplinary cooperation is of the utmost importance.

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