Biomass and Bio-fuel energy
Investing in the Future
In Greece, the agricultural sector accounts for more than 5% of GDP, more than three times the EU average of 1.8%. Companies involved in biomass and biofuels will therefore find abundant sources of rawmaterials. In addition, the binding commitments of the Greek government to replace 10% of current transport fuels with biofuels by 2020 translates into measurable opportunities within the next decade.
Advantages of Investing in Biomass and Biofuels
- Abundant raw materials
- Agricultural sector equals 5.2% of GDP vs. 1.8% EU average
- High feed in tariffs
- Binding national commitments in biofuel use
- Favourable, long-term legislative framework, ensuring investment reliability
Greece is governed by legally binding targets that require a RES share of 29% by 2020, from a current share of nearly 10%. In addition, 10% of current transport fuels must be replaced with biofuels by 2020.
Biomass refers to energy originating from organic materials such as trees and forest plants, agricultural products, and waste streams from a variety of sources. Through heat, these products are transformed intobiofuels, bioheat, or bioelectricity. Wood is the oldest form of biomass known to man.
Current installed capacity is 40 MW. Local authorities, in an effort to manage resources in a cost effective manner, are targeting biomass systems as the focus of investment, promising this to be a growth sectorwith significant potential.
Due to the increased interest in green energy, financial support from the EU and the Greek government, the biomass market is expected to grow considerably. Reforms to the EU’s Common Agricultural Policy(CAP) favour the cultivation of certain crops for the production of biofuels.
Feed in Tariffs (FITs are guaranteed for 20 years)
|In Euro-MWh||Interconnected System||Not Interconnected Islands|
|Biomass, waste incineration, biogas||87.85||99.45|
Biofuels are identified as having an important role to play in transportation, will substantially reduce CO2 emissions and reduce dependence on imported energy sources.
EU regulations stipulate that Member States must replace 10% of transport fuels with sustainable biofuels by 2020. Greece is bound to comply with these stipulations.
Investors will find a wide range of opportunities in both the biomass and biofuels markets. Currently, more than 10 companies operate in the Greek biofuel market, including ELIN, EL-VI, Pettas, and Agroinvest.Other companies preparing to participate in this market include Hellenic Sugar Industry, PPC, and Biodiesel.
Energy Policy Resources
Ministry of Economy, Competitiveness & Shipping (www.ypoian.gr)
Regulatory Authority for Energy (www.rae.gr)
Centre for Renewable Energy Sources (www.cres.gr/kape/index.htm)
Hellenic Transmission System Operator (www.lagie.gr/nc/en/home/)