Political, Economic, Social, Technical, Environmental and Legal Analysis of the Hellenic Heating and Cooling Sector
Abstract
:1. Introduction
2. PESTEL Analysis
2.1. Methodological Approach
2.2. Political Analysis
Political Situation of the Heating and Cooling Sector
- Total greenhouse gas emissions should be reduced by at least 40% compared to 1990 (achieved percentage reduction > 42%).
- The share of RES in final gross energy consumption should reach at least 35% and in final gross electricity consumption 61%.
- The final energy consumption should not exceed 16.5 Mtoe.
- The primary energy consumption should not exceed 22.5 Mtoe.
- The cumulative energy savings should be at least 7 Mtoe.
- The energy efficiency should be increased by 38%.
- The share of RES in heating and cooling should reach 43%.
- Annual energy renovation in government buildings should cover 3% of the total surface area.
- In 2025, the installation of oil boilers will not be allowed. From 2030 onwards, heating oil will have to contain renewable liquid fuels of at least 30%.
- Obligatory issue of more detailed Energy Performance Certificates (EPCs) following the construction, purchase, rent or major renovation. Until 2021, only 38% of residential buildings had an EPC.
- All new residential and non-residential buildings must have zero on-site emissions from fossil fuels as of 1 January 2028 for publicly owned buildings and as of 1 January 2030 for all other new buildings, with a possibility for specific exemptions.
- Every public building built since 2019 and all buildings (public and private) built since 2021 are nearly zero-energy buildings.
- Since 2011, new buildings have been obliged to cover at least 60% of the energy needs for water heating with solar thermal or any renewable energy source more efficient than solar thermal.
- Since 2010, according to the Energy Efficiency Building Regulations, the installation of a PV system on the roof has been allowed only if a solar water heater system exists.
- For industries, the measures are limited to the energy demand audits.
- 54% reduction in total greenhouse gas emissions compared to 1990 (instead of 40%);
- 44% share of RES in final gross energy consumption (instead of 35%);
- 79% share of RES in electricity production (instead of 61%);
- 46% share of RES in heating/cooling (instead of 43%).
2.3. Economic Analysis
Economic Situation for the Heating and Cooling Sector
- “Recycle & Change solar water heaters” [27]. This programme provides incentives for the replacement of electrical thermosiphon with a solar thermosiphon. By July 2024, there were 92,902 applications, 67,100 of which have been concluded.
- “Recycle-Change Device” [28]. Through this programme, Hellenic households can receive a subsidy to replace up to three old electric appliances with new ones, including air conditioners, refrigerators or freezers. By July 2024, there were 941,172 applications, 937,490 of which have been concluded.
- “Saving at home” programme [29]. It provides interest-free loans and grants for the installation of renewables and energy efficiency measures. In 2023, there were 31,549 successful applications with a total budget of EUR 422,105,074.
- “SAVE” programmes for the installation of energy efficiency measures and RES in Local Authorities.
- “ELECTRA” programme [30] for the energy update of public buildings. The programme, with a budget allocation of EUR 670 million spanning from 2022 to 2026, supplemented by EUR 250 million from private investments, facilitates comprehensive building renovations. These renovations are aimed at enhancing energy efficiency to achieve a Class B rating and reduce energy consumption by 30%, with the obligatory appointment of an energy manager.
2.4. Sociocultural Analysis
Sociocultural Situation for the Heating and Cooling Sector
2.5. Technological Analysis
Technological Situation for the Heating and Cooling Sector
- Established Supply Chain: A number of collector and tank manufacturers were established during or post the energy crises of the mid-1970s. Notably, the national solar thermal industry association, EBHE, was established in as early as 1979.
- Governmental Support: During the 1980s, the Hellenic government initiated campaigns aimed at promoting solar thermal systems, offering incentives such as reduced VAT rates and low-interest loans. These initiatives resulted in a notable increase in installations.
- Early Adoption of Standards and Certification: Greece’s industry actively engages with the European Committee CEN TC 312 and contributes to its corresponding secretariat. With over 100 Greek products holding Solar Keymark certification, constituting 10% of all active licenses, the nation demonstrates its commitment to adhering to international standards.
- High Home Ownership Rate: A significant proportion, approximately 75%, of flats and homes in Greece are privately owned. Greek households exhibit a strong inclination towards investing substantially in their own residences, mainly through loans or financial incentives, aiming for a high level of self-sufficiency. This is exemplified by their reluctance to share hot water lines with neighbours.
- Commencing from 2025, the installation of oil-fired boilers will be prohibited, with a subsequent requirement, effective from 2030, stipulating that oil utilized for heating purposes must incorporate a minimum of 30% renewable liquid fuels by volume.
- An Energy Performance Certificate (EPC) is mandated upon the construction, purchase, rental or significant renovation of a building. Nevertheless, as of 2021, only 38% of residential buildings had undergone EPC issuance.
- All public buildings erected since 2019, as well as all structures (both public and private) constructed since 2021, are obligated to adhere to nearly zero-energy building standards.
- Since 2011, newly erected buildings have been compelled to satisfy a prerequisite mandating that a minimum of 60% of their energy demands for water heating be met through solar thermal systems or alternative renewable energy sources.
2.6. Environmental Analysis
Environmental Situation for the Heating and Cooling Sector
- From 2011, biomass boilers were allowed to be installed in Athens and Thessaloniki. There was a ban on their installations in those two city centres starting from 1993.
- According to F gas regulations, the allowed refrigerants are R32, HFO mixes and non-synthetic refrigerants (carbon dioxide, HC, R290 and και R600).
- Private companies should calculate and submit an Environmental Footprint Report annually.
- There is an incentives programme for the replacement of low-efficiency boilers with natural gas-fired condensing boilers.
2.7. Legal Analysis
- The NECP, with adoption year 2019, serves as the primary document outlining mitigation strategies to attain Greece’s 2030 emissions reduction objective and propel the nation towards achieving a net-zero energy system.
- Greece’s National Climate Law, enacted in May 2022, establishes targets for reducing total greenhouse gas (GHG) emissions by 55% by 2030 and by 80% by 2040, relative to 2005 levels.
- The National Long-term Strategy of Greece [44] delineates emission reduction trajectories designed to align with the EU-wide 2050 target of net zero emissions. Specific measures within the building sector incentivize thermal renovations and the enhancement of heating and cooling systems.
- The National Recovery and Resilience Plan [45], adopted in 2021, supports the green transition through investments totalling EUR 1.3 billion, aimed at energy-efficient renovations of over 100,000 residences, including those belonging to low-income households.
- The Energy Efficiency Obligation Scheme [46], implemented in 2017, mandates certain entities, such as electricity, gas and oil product suppliers or retailers with a market share exceeding 1%, to participate. As of 2022, there were 35 obligated parties. These entities receive white certificates upon achieving verified energy savings in accordance with annual targets.
- The Energy Efficiency Directive (EED) [47] was adopted in 2012 and reformed in 2018.
Legal Situation for the Heating and Cooling Sector
- The 2022 National Climate Law.
- The 2021 Recovery and Resilience Plan incorporates a “renovate” component, allocated a total budget of EUR 2.7 billion. This segment, constituting the second-largest portion of the entire plan, is dedicated to the renovation and energy upgrade of various building types, including residential, commercial (secondary and tertiary sectors) and public structures.
- The 2021 Action Plan to Combat Energy Poverty establishes a framework for the energy retrofitting of residential buildings belonging to energy-vulnerable households.
- The 2019 Inter-Ministerial Committee for Energy and Climate was established to coordinate efforts across government departments concerning energy and climate-related initiatives.
- The 2019 National Energy and Climate Plan serves as the principal document outlining mitigation measures aimed at achieving Greece’s 2030 emissions reduction target and transitioning the nation towards a net-zero energy system.
- The 2019 National Long-term Strategy delineates strategic pathways for emissions reduction to support the EU’s 2050 target of achieving net-zero emissions.
- The 2017 Regulation on the Energy Performance of Buildings is the primary document specifying requirements and parameters for calculating the energy performance of buildings and issuing Energy Performance Certificates.
- The “Green pilot urban neighborhood” programme for the energy upgrade of social housing.
- Compulsory incorporation of solar thermal systems in newly constructed residential buildings.
- Enhancing the energy efficiency of small- and medium-sized enterprises (SMEs).
- Substituting oil-fired heating systems in residential properties with gas-fired alternatives.
- Energy Performance Certificates as a behavioural measure.
- Over the period from 2021 to 2030, the renovation target aims to refurbish 60,000 residences annually, resulting in cumulative energy savings of 7.3 Mtoe (306 PJ) and the generation and sustenance of over 22,000 new full-time employment opportunities. Considering Greece’s approximately 4.8 million buildings, achieving a 100% net-zero building status by 2050 necessitates a considerably heightened renovation rate of approximately 150,000 buildings annually [12].
3. Discussion
4. Conclusions
Author Contributions
Funding
Data Availability Statement
Conflicts of Interest
References
- Gerard, F.; Smit, T.; Rademaekers, K.; Braungardt, S.; Monejar Montagud, M.E.; Guevara Opinska, L. European Commission, Directorate-General for Energy, Policy Support for Heating and Cooling Decarbonisation–Roadmap, Publications Office of the European Union. 2022. Available online: https://data.europa.eu/doi/10.2833/977806 (accessed on 3 July 2024).
- Hellenic Statistical Authority. Research on Energy Consumption in Hellenic Houselholds, 2011–2012. Available online: https://www.statistics.gr/documents/20181/985219/Energy+consumption+in+households/ (accessed on 16 June 2024).
- The Energy Institute. 72nd Statistical Review of World Energy. 2023. Available online: https://www.energyinst.org/statistical-review (accessed on 16 June 2024).
- Elnagar, E.; Pezzutto, S.; Duplessis, B.; Fontenaille, T.; Lemort, V. A comprehensive scouting of space cooling technologies in Europe: Key characteristics and development trends. Renew. Sustain. Energy Rev. 2023, 186, 113636. [Google Scholar] [CrossRef]
- Mitterrutzner, B.; Zandonella Callegher, C.; Fraboni, R.; Wilczynski, E.; Pezzutto, S. Review of heating and cooling technologies for buildings: A techno-economic case study of eleven European countries. Energy 2023, 284, 129252. [Google Scholar] [CrossRef]
- Jia, L.; Cheng, P.; Yu, Y.; Chen, S.-H.; Wang, C.-X.; He, L.; Nie, H.-T.; Wang, J.-C.; Zhang, J.-C.; Fan, B.-G.; et al. Regeneration mechanism of a novel high-performance biochar mercury adsorbent directionally modified by multimetal multilayer loading. J. Environ. Manag. 2023, 326, 116790. [Google Scholar] [CrossRef] [PubMed]
- Jost, P.; Mack, M.; Hillje, J. A Heated Debate? Analysis of the Discussion on the Heating Law and What We Can Learn from It; Das Progressive Zentrum: Berlin, Germany, 2024. [Google Scholar]
- Francis, J. Aguilar, Scanning the Business Environment; Macmillan: New York, NY, USA, 1967. [Google Scholar]
- Dalirazar, S.; Sabzi, Z. Strategic analysis of barriers and solutions to development of sustainable buildings using PESTLE technique. Int. J. Constr. Manag. 2020, 23, 167–181. [Google Scholar] [CrossRef]
- Sáez-de-Guinoa, A.; Zambrana-Vasquez, D.; Fernández, V.; Bartolomé, C. Circular Economy in the European Construction Sector: A Review of Strategies for Implementation in Building Renovation. Energies 2022, 15, 4747. [Google Scholar] [CrossRef]
- Mpiperli, D. Corruption and Economic Development—Fight against Corruption and Strengthening Transparency in the Public sector—Auditing Mechanisms. Master’s Thesis, Hellenic Open University, Patras, Greece, 2019. Available online: https://www.dianeosis.org/wp-content/uploads/2018/05/Forologia_Eisodimatos_Stin_Ellada_Upd_090518.pdf (accessed on 11 July 2024).
- International Energy Agency. Energy Policy Review of Greece. 2023. Available online: https://www.iea.org/reports/greece-2023/executive-summary (accessed on 11 July 2024).
- Hellenic National Energy and Climate Plans. 2019. Available online: https://energy.ec.europa.eu/system/files/2020-03/el_final_necp_main_en_0.pdf (accessed on 11 July 2024).
- Hellenic Ministry of Civil Protection and Climate Change, Hellenic Climate Law. Available online: https://civilprotection.gov.gr/nomos-4936-toy-2022-ethnikos-klimatikos-nomos (accessed on 16 June 2024).
- Tziogas, C.; Papadopoulos, A.; Georgiadis, P. Policy Implementation and Energy-Saving Strategies for the Residential Sector: The Case of the Hellenic Energy Refurbishment Program. Energy Policy 2021, 149, 112100. [Google Scholar] [CrossRef]
- Hellenic Association of Energy Economics. Hellenic Energy Market Report; Hellenic Energy Market Report: Athens, Greece, 2021. [Google Scholar]
- Hellenic Ministry of Energy. Environment and Climate Change, Proposition for the Design of the New NECP. 2023. Available online: https://www.iefimerida.gr/sites/default/files/2023-01/%CE%A0%CF%81%CF%8C%CF%84%CE%B1%CF%83%CE%B7%20%CE%95%CE%A3%CE%95%CE%9A.pdf (accessed on 16 June 2024).
- Economic Post, The last changes in the Greek NECP for the penetration of RES and Energy Efficiency (in Greek). 2023. Available online: https://www.ot.gr/2023/06/28/green/esek-oi-teleytaies-allages-sto-keimeno-gia-ti-dieisdysi-ton-ape-kai-tin-eksoikonomisi-energeias/ (accessed on 4 July 2024).
- Wikipedia. Economy of Greece. Available online: https://en.wikipedia.org/wiki/Economy_of_Greece (accessed on 4 August 2024).
- International Monetary Fund. Country Reports–Greece. Available online: https://www.imf.org/en/Publications/CR/Issues/2022/06/16/Greece-2022-Article-IV-Consultation-Press-Release-Staff-Report-and-Statement-by-the-519669 (accessed on 3 April 2024).
- International Monetary Fund. International Financial Statistics and Data Files. Available online: https://data.worldbank.org/indicator/FP.CPI.TOTL.ZG?locations=GR (accessed on 3 April 2024).
- Enterprise Greece. Available online: https://www.enterprisegreece.gov.gr/en/greece-today/why-greece/the-greek-economy (accessed on 3 April 2024).
- The Green Tank. Hindered Progress in Greece’s Revised NECP. 2023. Available online: https://thegreentank.gr/en/2023/01/23/hindered-progress-in-greeces-revised-necp/ (accessed on 16 June 2024).
- Trading Economics. Greece Consumer Price Index. Available online: https://tradingeconomics.com (accessed on 3 April 2024).
- International Monetary Fund. Selected Issues Paper. In Greece: Selected Issues; International Monetary Fund: Washington, DC, USA, 2022; Volume 174, ISBN 9798400213038. [Google Scholar] [CrossRef]
- Institute of Energy in SouthEast Europe. Available online: https://www.iene.eu/articlefiles/inline/seeeo%202021-2022.pdf (accessed on 3 April 2024).
- Greek National Program “Replace Solar Heater”. Available online: https://allazothermosifona.gov.gr (accessed on 20 June 2024).
- Greek National Program “Replace Device”. Available online: https://allazosyskevi.gov.gr (accessed on 20 June 2024).
- Greek National Program “Energy Efficiency at Residences”. Available online: https://www.gov.gr/ipiresies/periousia-kai-phorologia/epidoteseis-politon/exoikonomo-2023 (accessed on 20 June 2024).
- Greek National Program “Energy Efficiency at Public Buildings”. Available online: https://hlektra.gov.gr/home (accessed on 20 June 2024).
- Dermentzis, G.; Boemi, S.N.; Papadopoulos, A.M. The needs of engineers from the research community towards nZEB: A case study. Energy Sources Part A Recovery Util. Environ. Eff. 2022, 44, 8943–8958. [Google Scholar] [CrossRef]
- Energy Poverty Advisory Hub 2022, National Indicators–Insights for a More Effective Measuring. Available online: https://energy-poverty.ec.europa.eu/observatory/publications/epah-energy-poverty-national-indicators-insights-more-effective-measuring (accessed on 20 June 2024).
- The European Climate Adaptation Platform Climate-ADAPT. Available online: https://climate-adapt.eea.europa.eu/en/countries-regions/countries/greece (accessed on 20 June 2024).
- Energypedia, The Greece Energy Situation. Available online: https://energypedia.info/wiki/Greece_Energy_Situation (accessed on 20 June 2024).
- Hellenic Federation of Solar Thermal Industries EBHE. Available online: https://www.ebhe.gr (accessed on 19 June 2024).
- Solar Heat Europe. Available online: https://solarheateurope.eu/ (accessed on 19 June 2024).
- International Energy Agency. Solar Heating and Cooling Program. In Solar Heat Worldwide 2024: Global Market Development and Trends and Detailed Market Figures; Federal Ministry Republic of Austria: Vienna, Austria, 2024. [Google Scholar] [CrossRef]
- Solarthermalworld, Article: Export Champions from Greece Offer Good Value for Money. 2020. Available online: https://solarthermalworld.org/news/export-champions-greece-offer-good-value-money/ (accessed on 19 June 2024).
- International Energy Agency, Solar Heating and Cooling Program, 2020, Webinar Recording: SHC Market and Industry Trends. Available online: https://www.iea-shc.org/solar-academy/webinar/shc-market-and-industry-trends (accessed on 19 June 2024).
- International Energy Agency, Greece Climate Resilience Policy Indicator. Available online: https://www.iea.org/articles (accessed on 19 June 2024).
- National Bank of Greece. National Adaptation Strategy. Available online: https://www.bankofgreece.gr/RelatedDocuments/National_Adaptation_Strategy_Excerpts.pdf (accessed on 5 July 2024).
- EurEau. Europe’s Water in Figures: An Overview of the European Drinking Water and Waste Water Sectors, 2021st ed.; EurEau: Brussels, Belgium, 2021; ISBN 978-2-9602226-3-0. [Google Scholar]
- Greek Ministry of Environment and Energy. Data Base for Wastewater Treatment Systems (in Greek). Available online: https://astikalimata.ypeka.gr (accessed on 5 July 2024).
- Greek Ministry of Environment and Energy. National Energy and Climate Plans: Long-Term Strategy (in Greek). Available online: https://ec.europa.eu/clima/sites/lts/lts_gr_summary_en.pdf (accessed on 5 July 2024).
- European Commission. Greece’s Recovery and Resilience Plan. Available online: https://commission.europa.eu/business-economy-euro/economic-recovery/recovery-and-resilience-facility/greeces-recovery-and-resilience-plan_en (accessed on 5 July 2024).
- Greece Energy Efficiency Obligation Scheme. 2017. Available online: https://energy.ec.europa.eu/system/files/2018-02/el_neeap_2017_en_0.pdf (accessed on 5 July 2024).
- EU Directive 2018/2002, amending Directive 2012/27/EU on Energy Efficiency. Available online: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2018.328.01.0210.01.ENG (accessed on 5 July 2024).
- Greek Ministry of Environment and Energy, Technical Guidance on the calculation of the Energy Performance of Buildings (in Greek). Available online: www.kenak.gr/files/TOTEE_20701-1_2017.pdf (accessed on 5 July 2024).
- International Energy Agency. Greek Implementation of EU Energy Performance of Buildings Directive and Energy Efficiency Code for Buildings Revision. Available online: https://www.iea.org/policies/1425-implementation-of-eu-energy-performance-of-buildings-directive-epbd-energy-efficiency-code-for-buildings-revision (accessed on 5 August 2024).
- Hellenic Ministry of Energy, Environment and Climate Change, Comprehensive Assessment of the NECP (in Greek). Available online: https://ypen.gov.gr/wp-content/uploads/2023/07/%CE%A5%CE%91_%CE%A0%CE%B5%CF%81%CE%B9%CE%B5%CE%BA%CF%84%CE%B9%CE%BA%CE%AE_%CE%A0%CE%B1%CF%81%CE%AC%CF%81%CF%84%CE%B7%CE%BC%CE%B1.pdf (accessed on 5 August 2024).
- The Green Building Information Gateway, Data for Greece. Available online: https://www.gbig.org/places/8620 (accessed on 5 August 2024).
Disclaimer/Publisher’s Note: The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of MDPI and/or the editor(s). MDPI and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content. |
© 2024 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/).
Share and Cite
Christodoulaki, R.; Drosou, V.; Papadopoulos, A. Political, Economic, Social, Technical, Environmental and Legal Analysis of the Hellenic Heating and Cooling Sector. Energies 2024, 17, 3902. https://doi.org/10.3390/en17163902
Christodoulaki R, Drosou V, Papadopoulos A. Political, Economic, Social, Technical, Environmental and Legal Analysis of the Hellenic Heating and Cooling Sector. Energies. 2024; 17(16):3902. https://doi.org/10.3390/en17163902
Chicago/Turabian StyleChristodoulaki, Rosa, Vassiliki Drosou, and Agis Papadopoulos. 2024. "Political, Economic, Social, Technical, Environmental and Legal Analysis of the Hellenic Heating and Cooling Sector" Energies 17, no. 16: 3902. https://doi.org/10.3390/en17163902