The International Energy Agency (IEA) believes that reforming the Greek energy market would help the country to overcome its economic difficulties.
The Paris-based agency has published a review of Greek energy policies and says that increasing competition and reducing the role of the government in the country’s energy sector would make it more efficient.
Greece adopted a market reform law in August 2011 that is “fundamentally sound”, according to the IEA. “The government’s key focus should now be on implementing this law in full without delay,” said IEA Executive Director Maria van der Hoeven.
“Reforming Greece’s electricity and gas markets is a policy imperative that should add efficiency and dynamism to the Greek economy. This, in turn, should help generate self-sustained employment and prosperity for the country,” said van der Hoeven.
In its report, the IEA notes that Greece has a large potential for wind and solar power, and that the country has also improved the security of its energy supplies. To facilitate renewable energy projects, the government has recently increased feed-in tariffs, shortened and simplified the licensing procedures and introduced stronger incentives for local acceptance.
“These changes are very welcome, as they significantly improve investment conditions in the sector,” van der Hoeven said.
The IEA also believes that Greece will increase its use of natural gas as it moves to decarbonise its coal-dominated power sector.
