In the July edition, the Chart of the Month focuses on Sustainability and ESG disclosure in Greece and worldwide.
Unexpectedly, even though natural gas is broadly considered as the most environmentally friendly product, the excise duty related to feedstock appliances remains until today. The imposition of excise duty merely on natural gas when used as feedstock acts counter to the nature and logic of the tax system, both at EU and national level. Undeniably, this imposition negatively affects economic activity and competitiveness of products that use natural gas as raw material.
The abolition of excise duty when natural gas is used as a feedstock is indicated by the Directive 2003/96/EC. Hence, based on the relevant Community Law, the abolition of excise duty charges for industrial purposes as feedstock will directly reduce production costs and at the same time have a beneficial impact on business competitiveness. Eventually, a potential abolition considering the industrial application would be significantly beneficial in terms of broader economic activity. Above all, a key policy tool that is directly relevant to the reduction of natural gas prices is the complete abolishment of excise duty rate when used as feedstock.
Nowadays, the Greek economy is in a steady phase towards growth, hence there is an urgent need to smooth out any obstacle that prevents the quick recovery of the economy. Strengthening the role of industries is a key prerequisite in order to achieve the aforementioned goal. Reduced cost of production is anticipated to trigger a direct outcome of providing lower cost products, that eventually could increase domestic demand and in parallel be accompanied by positive externalities in the overall Greek economy.
Natural gas is the fastest growing form of primary energy worldwide, given its advantages compared to other forms of energy and its pivotal contribution to the direction of sustainable development. Moreover, natural gas is widely considered an essential element for the promotion of the European Energy Policy and the European 20-20-20 target; fact that allows natural gas to be the dominant energy choice of the European Union (EU) for the 21st century and, at the same time, the bridge for the transition from conventional to renewable energy forms. In this sense, natural gas is the most efficient and environmental friendly feedstock for ammonia production.
Aiming to deliver a comprehensive assessment of the role that natural gas plays in shaping industrial competitiveness, the following study has carefully examined various aspects considering the implementation of excise duty on natural gas in order to propose particular policies. Precisely, the excise duty in Greece has been extremely high at € 1.5 / GJ (around € 5.4 / MWh) since 2011 and applied to all industrial uses. The outcome of the particular policy that emerged after the implementation was disturbing especially for the Greek fertilizers which, in addition to the rising cost due to international factors and the deteriorate functioning of the domestic market, faced and still faces a supplementary cost by the implementation of the excise duty on natural gas.
Nowadays, the Greek economy is in a steady phase towards growth, hence there is a pressing need to smooth out any obstacle that prevents the quick recovery of the economy. Strengthening the role of industries is a key prerequisite in order to achieve this exact goal. Under the specific circumstances, there is a need to identify effective policies that can eventually lead to an improved and fair taxation of energy products, which eventually are anticipated to assist industrial competition both domestically and at international level.
At this point in time, it is a priority to examine ways and strategies, designed to boost the Greek economy back to the path of growth. The abolition of excise duty when natural gas is used as feedstock should be considered a strategy towards this direction, which ultimately, is indicated by the Directive 2003/96/EC. Hence, based on the relevant Community Law, the abolition of excise duty charges regarding natural gas when used as feedstock will directly reduce production costs and at the same time have a beneficial impact on industry competitiveness. Eventually, as the present study explicitly clarifies, a potential abolition from natural gas when used as feedstock would be significantly beneficial in terms of broader economic activity.
*If you have purchased a license for this file, you will find the password to unlock the file in the details page of the corresponding order in the members area.
HAEE launches a new online publication "In Focus", dedicated to contribute to knowledge advancement of energy economics. The first issue "The European Energy Security in the spotlight" adumbrates the reasons that led to the EU’s dependency on Russian natural gas, delves into the implications of the Russia-Ukraine war in Europe, examines the possible challenges and limitations that the REPowerEU plan may entail and highlights the possible opportunities for Greece to overcome the energy crisis and be transformed into a regional energy hub.
In the February edition, the chart covers an analysis about the diversification of gas supply sources in Europe and Greece. The current crisis in Ukraine, the high dependence on Russian gas and high gas prices create an unprecedented turbulence in the gas sector.
The new edition of the “Quarterly Greek Energy Market Snapshot” refers to the 3rd and 4th trimester of 2021 and is now free exclusively to HAEE Members
The new issue focuses on Hydrogen as the fuel of the future and a secure, clean and affordable alternative to fossil fuels.
If you are not a HAEE Member yet, register now and get free access to the most integrated information of the Greek energy sector, with the latest developments recorded during the 3rd and 4th quarter of 2021.
The 3rd edition of the “Quarterly Greek Energy Market Snapshot” for the 2nd quarter of 2021 is now free exclusively to HAEE Members
The new issue is dedicated to Green Islands and their potential to become frontrunners of energy transition, playing a leading role in lowering emissions and reducing dependency in fossil fuels.
If you are not a HAEE Member yet, register now and get free access to the most integrated information of the Greek energy sector, with the latest developments recorded during the 2nd trimester of 2021.
The Hellenic Association for Energy Economics is proud to present the "Greek Energy Market Report 2021".
In line with the previous publications of 2019 and 2020, the Report's third edition considers all the advances related to the Greek energy sector, by providing the most recent available data. Special attention is paid to the impact Covid-19 had on the global energy market, both on demand and energy supply. The Report illustrates a solid analysis for several sectors affecting the road towards the Energy Transition, and serves as a unique and very valuable tool for anyone interested in studying the Greek energy market, through a high-level analysis accompanied by key points to consider.
The 2nd edition of the “Quarterly Greek Energy Market Snapshot” for the 1st quarter of 2021 is now free exclusively to HAEE Members
The latest issue is dedicated to Renewable Energy Sources and the role the Regulatory Authority of Energy plays for their faster implementation, according to the targets set in the National Energy and Climate Plan.
If you are not a HAEE Member yet, register now and get free access to the most integrated information of the Greek energy sector, with the latest developments recorded during the 1st trimester of 2021.
The new publication provides key figures and statistical data of the Greek energy sector. Within few pages readers can get a holistic overview of numbers and statistics related to the Electricity Market, Renewable Energy Sources, Natural Gas Market and Oil & Refining. The Snapshot will be available a few days after the end of each trimester.
Since the first volume of the Quarterly Snapshot coincides with the end of 2020, it does not only correspond to the 4th trimester of the outgoing year, but offers a glimpse to the whole year’s energy data, with a particular focus on the recent Target Model implementation in Greece and its impact on the country’s market.
Sign in and get access to the most integrated information related to the Greek Energy Market!
The report entitled "The Potential Contribution of Natural Gas to East Mediterranean Economy", powered by the International Gas Union (IGU), investigates the potential contribution of natural gas discoveries on the economies of Egypt, Israel, Cyprus, Greece, and Lebanon. Focusing on a country-level analysis, it highlights the regional perspectives of the natural gas market. Based on historical data and forecast scenarios, the study illustrates the impact of possible discoveries under the scope of security of supply and market development.
The Report is available exclusively to HAEE Members, one month prior to its official release.
For a second consecutive year, the Hellenic Association for Energy Economics proudly presents the "Greek Energy Market Report 2020". The report reviews and analyzes in detail the whole spectrum of the Greek Energy market based on the most recent data and valuable insights. The study provides illustrative statistics regarding the Country Profile, the ongoing Energy Transition, and the formation of the Hellenic Energy Exchange. Moreover, the "Greek Energy Market Report 2020" reviews all the developments and statistics derived from the
Electricity and Natural Gas markets, the increased penetration of Renewable Energy Sources, the importance of Oil & Refining for Greece, the recent developments in terms of Energy Efficiency and the projected Investments towards the Energy market.
You can download free of charge the Greek Energy Market Report 2020.
This is a sensitive period for the Greek energy sector, since on the one hand, national elections offer a chance for the realignment of policy regardless of the ruling party, while on the other hand, a series of crucial issues are ongoing with repercussions for the future of the market. Major changes are coming due to the liberalization of the Power and Gas market, ambitious privatization processes of state-controlled energy companies and the target model objectives set by the European institutions and significant investment potential is on the horizon.
HAEE stands ready to analyze and review the course of the energy transition in the Greek market through its newly released "Greek Energy Market Report 2019" by providing all the most recent data and valuable insights. In this regard, HAEE’s annual report manages to identify the relative strengths and weaknesses of the Greek energy market during a time of great change. The goal is to provide a full and clear picture of the Greek energy landscape to international and domestic companies, leading market players, regulators and policy makers. Progress is assessed through a series of variables including the country's goals for 2020 and 2030, demographics, statistics and regulatory frameworks.