MARKETS IN GREECE

Basic concepts

Financial Sources

With Q the quantity of the product is marked with P value and with C cost. In order to calculate both the cost to the consumer and the actual cost of emissions, certain admissions must be made. For more accurate results, a further analysis of the cost pass-through and prices in the ETS should be done.

This scenario is based on a realistic model of the electricity market in Greece, and the state involvement in the sector. By analyzing the past data, there can be a calculation of the throughput elasticity and the prices it generates. On the following table there are the results of the calculations of the previous data.

The effect that the elasticity has on the prices of emission allowances is smaller than that of the absolute pass-through. The thesis focused on an analysis of emission costs in the case of the electricity market in Greece. Corporate social responsibility in Greece: a comparative analysis of the three major energy companies (case study).

The impact of the EU car CO2 regulation on the energy system and the role of electromobility in achieving transport decarbonisation. Large-scale penetration of renewable electricity in the Greek energy system with a view to the European decarbonisation targets for 2050. Maastricht and the environment: The implications for the EC's environmental policy of the treaty on the European Union.

The European energy policy

The main objectives of the European Union and the European trade market in relation to the transfer of emissions and the management of pollution in the EU, in addition to the distribution systems and the development of the European market, also relate to the overall performance of the internal market. and energy economy. The data used by the EU comes from a decentralized system, and the financial analyzes carried out are mainly focused on the issue of resource allocation rights and the cost-effectiveness of investments [CITATION Leh13 \l 1033. According to the industrial activity of each country, the EU allocates a standard number of rights to each member state , which it then auctions to companies that emit pollutants. This system has existed since 2005 and has contributed to the reduction of greenhouse pollutants from EU member states [CITATION Ell07 \t \l 1033.

Industries are expected to provide complete and reliable information on emission prices and whether they are in conflict with the EU's long-term cap with the ETS. In the second phase of the implementation of the strategy for the reduction of polluting substances from industrial production, there were no substantial indications until 2008 that the ETS has a negative impact on the economic development and competitiveness of the energy companies [ CITATION Dem08 \l 1033. The programs aim at the further development of technologies for renewable energy sources (RES) and their further use by all member states of the Union [ CITATION Cha17 \l 1033.

Greece is one of those countries that will be most affected, as a large part of the electricity production processes still use lignite as the main fuel. PPC, and the price of a CO2 emission allowance price, will give the total price of the emission [ CITATION IPC18 \l 1033.

Electricity market

RESs have a low inflow into the Greek market and there are problems related to the cost of expenditure necessary to invest in development projects [ CITATION Bau88 \l 1033. Nowadays several private electricity companies are active, the total installed capacity of the land amounts to 7 GWatt, three of them were selected for the purposes of the project [ CITATION Bac18 \l 1033. The main objective of the state is to determine a coefficient that will be used as a basis for the calculation of the operating loss due to the activity in a region or sector.

Reducing the production of gaseous pollutants is part of the Europe 2020 strategy and is therefore crucial for Greece (Metaxas & Tsavdaridou, 2012). Based on economic analysis, environmental penalties are an additional cost (PMC) of the company and can lead to an increase in this performance and optimization of production. This assesses, through an assessment of the relationship between costs and benefits, that the introduction of measures to limit climate change is in practice consistent with the objectives of the common market.

However, it should also be noted the negative impact of the process of imposing tax rates and fines on manufacturing companies. First, since the demand for the good "electricity" is inelastic, increasing the cost of production by imposing a penalty causes the price of the good to rise.

Supply

The economic crisis has already hit producer companies and the public, and the further increase in the cost of purchasing, producing and distributing a social commodity like electricity can create barriers for the state and limit growth. The state does not expect economic benefits from services of general interest to the extent that they can be claimed by individuals. The first of these companies is PPC, whose lignite-based production units account for almost 30% of the country's total power output at 2,040 GWatt.

The second is Heron SA with a total installed capacity of 0.460 GWatt, while the third is GEK TERNA SA. The third most common method is to use renewable energy sources, the Greek islands are perfect for installing wind farms and the almost 300 sunny days in Greece make it perfect for installing solar panels. There is an effort by part of the academic world in Greece to pressure the government to fund research and development programs related to renewable energy technologies, such as tidal energy, geothermal, etc.

There are also several hydroelectric power stations on major rivers in the country, all of which are mainly controlled by DEDDIE (Santamouris, Cartalis, Synnefa, & Kolokotsa, 2015). Greece also imports electricity from Bulgaria and Serbia, especially during summer when demand is at its peak. However, the government has been criticized for this tactic due to the availability and capacity of Greece's natural resources to further expand electricity production. capacity (Karanfil & Li, 2015).

Data

• Cost per Company
• Demand per Company
• Billing

According to the Greek Statistics Authority (ELSTAT), on average a Greek family will consume 3,750 kWh per year, of course this figure depends on the month, the weather and the region of the country. This tactic means that a private company is more likely to absorb some of the production costs in order to increase the number of consumers (RAE (Regulatory Energy Authority), 2018). But, on the contrary, private companies try to absorb part of the production costs to keep their price lower than that of PPC.

In the previous subsection, the calculations showed various values ​​of the absolute cut-off - the fact that the prices in ETS could rise further is a real scenario, due to the fact that the EU is trying to push further to meet the target for reducing the emission levels. In this scenario, in order to implement "greener" technologies in the industrial sector, the EU reduces the number of available allowances which causes an increase in the prices of the emission costs, leading to an increase in the pass-through factor by 1. The scenario will period between September 2018 and September 2019 investigated on the basis of the available data from the previous calculations.

This model investigates what will happen in the market, at a real level, due to the fluctuation of the emission allowance price and how it affects the electricity bill prices. To make the scenario accurate, the percentage difference between the prices of the add-ons will be multiplied by the cost elasticity of switching. The relationship between the prices of the period September 2017-September 2018 and September 2018-September 2019 is shown in the diagram below.

The second step was the determination of the share each company has in the Greek market, the conclusion is that in case of lifting the emission regulations, the private companies will have to. The problem lies with companies that should be able to absorb a large part of the costs of pollutants in order to remain competitive with other companies. The impact of a possible internalization of environmental externalities on energy prices: the case of greenhouse gases from the Greek electricity sector.

General Calculations

Cost pass - through calculations

The difference in the production costs and the electricity price can be seen in the next table.

Scenarios

• Raise in emissions price, raise of absolute pass - through by 1
• Elastic change in pass - through

Under this scenario, a small shift in the price curve caused an increase of 36 euros in the customer's annual bill. The amount of money may seem small, but this amount only covers the issuance costs, which may or may not lead to further increases in other factors. This is part of the possible but unlikely scenario that if the 2020 targets are met at a satisfactory level, the EU will release a larger number of allowances, causing prices to fall. The elasticity results in this table indicate a large difference between the cost of production and the price that reaches the customer. In this scenario, the elasticity will determine the price number and not the other way around.

In the study's four main chapters, it has been shown that there are both challenges and opportunities in connection with the use and enforcement of a tougher environmental policy in the EU. Instead of spending money to consolidate the economy and remedy the problems caused by uncontrolled abuse of resources, the government earns revenue by imposing fines on producers from companies that violate environmental and pollution control agreements. If this policy is not changed, the majority of companies will move their business to another place, causing a domino effect that will implicate the tax collection, electricity prices, number of jobs, etc.

The fact that a simple percentile can cause an impact of this scale on the total of the economy is one that must be taken into account, especially in a sensitive economy, such as Greece's. First, the data collection showed how quickly the electricity market in Greece is changing, how the privatization caused a shift on the different foundations of the Greek market, and how it affects the entire Greek economy. Due to the nature of the sector, there will be no potential customer who will not eventually choose a firm to power his home or his business.

In general, emissions costs play an important role in an economy, especially in a European country, which is regulated by the EU.