IOBE: reducing energy costs is crucial for the economy


The energy sector has a crucial role in the transition of the Greek economy to a more competitive and sustainable model, argues a survey conducted by the Foundation for Economic and Industrial Research (IOBE) for the diaNEOsis think tank.

It records the challenges and priorities of the sector on the path to a carbon neutral economy; its reference to energy costs is essential, with IOBE citing the need to reduce them as this would have a very favorable effect not only on manufacturing but also on the economy as a whole.

The IOBE has shown that a 10% reduction in energy costs would lead to an increase in the country’s gross domestic product of 1 billion euros and employment of 21,500 jobs.

In order to reduce energy costs, the report proposes to create a truly competitive electricity market with sufficient liquidity, efficient oversight and financial integrity and reliability, as well as the maintenance of existing measures and the addition of new measures ( compensation for indirect emission costs, critical network pricing, etc.).

The investigation also identifies other significant issues, such as the shortage of network infrastructure and the high stock of unpaid bills to the Public Power Corporation, which exceed 2.7 billion euros.

Achieving the long-term goal of a carbon-neutral economy by 2050, according to IOBE, requires significant investments in improving energy efficiency, continuing to grow production from energy sources. renewable energy, the main energy network infrastructure and the so-called just transition of regions. depends on lignite. Resources from the EU Next Generation Fund will be used to rapidly promote energy investments to support the rapid recovery of the national economy. Thirty-seven percent of these resources will be used as investments for the green transition.

The report also discovers considerable challenges in the planned large-scale penetration of RES. It highlights the prospect of the continued need for additional wholesale electricity market resources to support old and new RES due to the downward trend in wholesale electricity tariffs.

There is also a lot of room for improvement, according to IOBE, in energy efficiency, where Greece lags significantly behind the European Union average in most sectors.

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