Greece has the highest cost of electricity production in the EU


The most expensive electricity in Europe, and even more so than the average European average, generates the Greek electricity system, an element that should be taken seriously into account in shaping the long-term energy planning currently being developed. Compared to the European average, the wholesale price of electricity in Greece is higher by 22.2 euros per megawatt hour, while compared to countries such as Germany and France, by 30 euros per megawatt hour. There is also a lack of competitiveness in the domestic wholesale electricity market and in relation to neighboring countries with which electricity interconnections such as Bulgaria and Italy operate.

In Greece the average wholesale price of electricity is 24.3 euros per megawatt hour higher than Bulgaria and 14.5 euros per megawatt hour higher than Italy. The figures emerge from the European Commission’s quarterly report for the second quarter of 2019, confirming both the competitiveness of the Greek electricity market and the competitiveness of the Greek economy, while also highlighting the weight of the energy cost factor in the debate. that has opened up for the country’s energy planning and fuel mix for power generation in the coming years.

According to EU data, the average electricity price in Greece’s wholesale market in the second quarter of the year stood at 65.5 euros per megawatt hour, when the average of European countries was 43.3 euros per megawatt hour. . The closest price to Greece is Malta at € 63.9 a megawatt hour and Poland’s immediate next at € 56.4 a megawatt hour. The convergence with these two markets is not accidental. Greece’s electricity market resembles that of Malta in terms of interconnections, as it may not be an island, but it has limited interconnections with its neighboring countries that cannot serve imports that could reduce prices .

Lignite and pollutants

The common feature with the Polish market is the high lignite participation rates in electricity generation at present. Lignite emits large quantities of pollutants and the rising cost of CO2 is the key factor that has been pushing up wholesale electricity prices in Greece over the past two years and a major cause of PPC’s economic collapse. The increase in the wholesale price of electricity in Greece in the second quarter of the year increased by 17% compared to last year, as well as the increase in the price of CO2 and the decrease in hydroelectricity. At the same time, the average European wholesale electricity price fell by 1%.



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