Background The environmental impacts of power generation from fossil fuels are widely recognised. The wider environmental gains of renewable energy are also well documented. The Greek commitment under the 1998 Kyoto Protocol agreement is to limit the increase of its greenhouse gas emissions in the period 2008 to 2012 to 25% over 1990 levels (this translates to 108 million tonnes (Mt) of CO2 per year). However, Greek national emissions are already 23% above 1990 levels and are set to continue to grow rapidly in the future. Significant efforts are therefore required if these targets are to be met. If the upward trend continues, it will result in substantial costs for Greece incurred by the mandatory purchase of emissions and / or penalties (possibly up to €1 billion per year as of 2010). The Greek National Climate Change Mitigation Plan sets a target of 18.2 Mt CO2e (CO2 equivalent) reduction versus the baseline by 2010. The plan sets out a number of areas that will contribute to mitigation. Foremost among these is an increased penetration of renewable energy (representing 34% of the reduction) and natural gas (22%) in the electricity market. Furthermore, the EU Directive 2001/77 “Promotion of electricity produced from renewable energy sources in the internal electricity market” provides an indicative target of 20.1% for the supply of renewable energy by 2010 in Greece. Objectives Overall project objectives were to: • take significant steps towards the application of EU climate change and renewable energy policies and measures (particularly market instruments) in the Greek electricity sector; and • gain experience that would be transferable to other industry sectors both in Greece and also in other EU and accession countries. Specific aims were to: • assess the integration of emissions trading and alternative renewable energy support mechanisms in the Greek electricity sector; • assess the role and impact of emissions trading and alternative renewable energy support mechanisms in the Greek electricity sector; • develop a combined vision for the participation of the Greek electricity sector in emissions trading and renewable energy support; • establish a framework for emissions trading and renewable energy support, and to determine the strategy and action plan to achieve this; • transfer relevant experience from other EU Member States; • demonstrate opportunities and threats to the Greek electricity sector and its stakeholders and encourage by example; and • disseminate findings and consult with the Greek electricity industry, its stakeholders (especially governing authorities), as well as the wider public. Results The project was well executed and successful. Delays were experienced relating to the implementation of some tasks. This was due to the fact that the National Action Plan was delayed. The plan was needed for realistic modelling, and for the drawing up of a strategy related to emissions trading and renewable energy integration in the Greek electricity sector. However, these delays were overcome during the course of the project. International developments in emissions trading and renewable energy support mechanisms were explored and an electronic database was created. The requirements for the Greek electricity sector to participate in emissions trading were examined and compared with the existing situation. Priority considerations for the integration of the most suitable renewable energy support scheme in the Greek electricity sector were identified. Modelling was used - including the application of ELMAS (a computer model developed in the context of the project) - in order to provide plausible examples for the integration of emissions trading and renewable energy support mechanisms in the Greek electricity sector. A vision, framework and strategy for the Greek electricity sector were developed through a consultation process with major stakeholders. Dissemination activities were organised throughout the project. Two workshops were also organised with the main aim of raising awareness and knowledge among the stakeholders regarding opportunities, threats and steps required for the integration of emissions trading and renewable energy support mechanisms. Guideline documents were produced and distributed to the stakeholders.