Solar Energy and Renewable Alternatives in Greece's Crisis

Overview of Renewable Energy Alternatives

A general definition of alternative energy provided by Kramarae and Spender (2000) states that this term includes systems such as hydroelectric power plants, wind generators, solar power, and biomass (in the form of wood fuel, crops, municipal and industrial waste, and animal manure). In many ways, these alternative energy sources are certainly not new but have been used by humankind for thousands of years. In this regard, Kramarae and Spender note that "from time immemorial the power of the sun, forests, wind, tides, and water has been harnessed. Only since the industrial revolution have the energy-hungry nations of the world used large quantities of coal and oil in their raw states to generate the quintessential modern fuel: electricity. Coal and oil are now considered the mainstream sources of energy and are used to power the economies of the industrialized world" (2000, p. 41).

Fossil fuels such as coal and oil, though, are finite in supply, while alternative energy sources are renewable and can be sustained over time. Indeed, many experts predict that peak oil — the point at which oil supplies will begin to be permanently depleted — may arrive as soon as the mid-21st century (Rosentreter, 2000) or between 2070 and 2120 in a best-case scenario (Nath, Hens, Compton, & Devuyst, 1999). In this regard, Gresser and Cusumano emphasize that "despite years of generous government subsidies and continuing worldwide investments by the global oil industry to accelerate technological innovation, the rate of discovery of new oil sources began declining decades ago and has never recovered" (2005, p. 20). As a result, the rush to identify replacements for an increasingly energy-hungry world has driven research into alternative energy resources.

During periods of relatively cheap oil and gas, the corresponding interest and investment levels in alternative energy resources tend to diminish. For example, Farrell cautions that "the problem is that our default mode appears to dictate a halt in the development of alternative technologies as soon as the price of a barrel of oil falls within tolerable parameters. This inevitable knee-jerk response to an easing of an oil crisis has got to go" (2008, p. 6). Despite the waxing and waning of interest in alternative energy resources over the years, some progress has been made (Nath et al., 1999). Solar, biomass, and wind power are all making a positive contribution to global energy needs (Nath et al., 1999), and these alternative energy resources are discussed further below.

Solar power is probably the oldest renewable energy resource available to humankind today. The sun's energy has been harnessed for millennia to light fires and passively heat dwellings, but significant progress in the use of solar power has been achieved over the course of the last 200 years or so. According to Katsioloudis, Bondi, and Deal, "although Swiss scientist Horace de Saussure is credited with making the first solar collector in 1767, the first person to patent solar thermal electric technology to produce power from the sun's thermal energy was Robert Sterling in 1816 in Edinburgh, Scotland" (2009, p. 12). Moreover, in 1839, French experimental physicist Edmund Becquerel determined that solar power could be used to generate electricity — an accomplishment that predated the introduction of internal combustion engines by nearly half a century (Rosentreter, 2000). During the 19th century, solar power was also used to generate hot water throughout the United States (Rosentreter, 2000).

Despite this extensive use of solar power, it was not until 1954 that scientists at Bell Laboratories developed the first photovoltaic cells, which allow the conversion of sunlight into electricity (Katsioloudis et al., 2009). According to Rosentreter, "considering that photovoltaic cells have been the exclusive power source for satellites since the 1960s, and how rapidly television evolved during an era known as the Atomic Age, it is a wonder that solar technology hasn't advanced further" (2000, p. 8). Researchers at NASA and their Russian counterparts have traditionally viewed solar power as a stopgap measure while searching for more powerful sources of renewable energy for satellites and other space missions (Katsioloudis et al., 2009). Recent innovations in nanotechnologies and organic materials that can be used in solar cell arrays, however, may provide superior performance of these systems in the near future (Cunningham, 2007).

Although commercial solar-powered plants are still costly to implement initially, their costs are lower during the later operating life of the plants (McKee, 1999). According to McKee, "therefore, solar power is more attractive to municipal utilities. The relative attractiveness of solar power is substantially influenced by fuel escalation [and] solar power is now economically competitive for municipal utilities. Solar power is a backstop technology and, as such, oil and gas price increases will be moderated by the existence of this new, relatively cheap energy source" (1999, pp. 122–123). While solar energy is a relatively reliable resource — though the sun does not always shine and some regions receive far less sunlight than others — biomass systems represent an additional reliable resource, discussed further below.

Solar Energy: History and Technology

Biomass is an umbrella term used to describe any type of organic substance that can be used to generate energy, including industrial, commercial, and agricultural wood and plant residues, municipal organic waste, animal manure, and crops grown specifically for energy-generation purposes (Cleveland & Morris, 2006). Like solar energy, biomass energy has been in use for some time. "Biomass energy," Cleveland and Morris advise, "was utilized in 1860 to meet over 70 percent of the world's total energy needs, mainly through the conventional combustion of wood fuel for heating and cooking. By 2000, the percentage contribution of biomass energy to the world's energy demands had decreased to about 10 percent" (2006, p. 42). Innovations in technology using advanced combustion, gasification, and liquefaction processes have made biomass systems more efficient in recent years (Cleveland & Morris, 2006). Because the organic sources of biomass production ultimately rely on sunlight, it is reasonable to relate this alternative energy approach to solar power in a broader sense.

Wind power is also a significant alternative energy resource. As Elliott explains, "the winds are an indirect form of solar power and they have been used for centuries as a source of energy. More recently wind power has become one of the more successful renewable energy technologies" (1999, p. 88). Hollander similarly reports that "as a renewable resource, wind power has much to commend it. The large wind farms can supply significant amounts of electricity to the main grid systems when the wind blows, while smaller turbines can be used by farms, homes, and businesses in windy locations, such as along coasts, and also can be used in remote areas to which bringing power lines would be prohibitively expensive" (2003, p. 149).

Wind turbines are increasingly being grouped together in so-called "wind farms" so that connections with the power grid, control systems, and road access can be shared. These installations have been developed throughout the United States and Europe, providing a substantial contribution to regional energy needs (Elliott, 1999). According to Elliott, "typically a separation of between 5 and 15 blade diameters is needed between individual wind turbines, to prevent turbulent interactions in wind farm arrays. This means that wind farms can take up quite a lot of space, even though the machines themselves only take up a small fraction of it, and this has led to some objections" (1999, p. 89). Although wind farms have notable attributes — they require no fuel or water to operate and generate no pollutants, greenhouse gases, or toxic wastes — their downsides include significant space requirements, noise, aesthetic objections from nearby residents, and potential threats to migrating birds (Hollander, 2003).

Notwithstanding these disadvantages, some regions of the European Union are particularly well suited to wind farm installation. For example, a 5-megawatt wind farm featuring 10 wind turbines with 500 kW capacity each has already been constructed in Crete (Greece: Renewable Energy Fact Sheet, 2007, p. 3). Although this facility is generating electricity, it is also serving as an experimental operation using two kinds of wind turbines provided by different manufacturers, with the aim of assessing their efficiency and identifying other suitable locations in Europe.

Solar energy would appear to be a natural fit for Greece; after all, the Greek people have used solar power for millennia. Rosentreter reports that "the application of solar power is not a new idea. The ancient Greeks developed mirrors that would direct the sun's rays and cause a target to burst into flames within seconds" (2000, p. 8). Current policies concerning renewable energy resources in Greece are based in part on the need to conform to the larger European energy policy mandating the development of sustainable, competitive, and secure energy supplies. In January 2007, the European Commission adopted an energy policy for Europe supported by several documents on different aspects of energy and an action plan to meet the major energy challenges faced by the European Union (Greece: Renewable Energy Fact Sheet, 2007).

While hydropower has been a significant source of alternative energy for Greece for some time, there have been increasing applications of wind power, geothermal energy, and active solar thermal systems in recent years. Legislation passed by the Greek government has also helped to promote interest and research into alternative energy resources by eliminating many of the administrative burdens on the renewable energy sector (Greece: Renewable Energy Fact Sheet, 2007). A number of ambitious national goals for the use of various alternative energy resources have been established in Greece pursuant to EU directives, but present trends indicate that these goals may not be achieved without significantly greater government support and private-sector engagement (Greece: Renewable Energy Fact Sheet, 2007).

Some of the recent initiatives undertaken by the Greek government to stimulate interest in alternative energy resources include a 20 percent reduction of taxable income on expenses for domestic appliances or systems that use renewable energy sources, as well as revised bidding procedures to promote the use of geothermal energy. In addition, Greece has introduced the following mechanisms to stimulate the growth of renewable energy resources throughout the country:

1. Feed-in tariffs were introduced in 1994 and amended by the recently approved Feed-in Law. Tariffs are now technology-specific rather than uniform, and a guarantee of 12 years is provided, with the possibility of extension to up to 20 years.
2. Liberalization of renewable electricity (RES-E) development is addressed by Law 2773/1999.
3. Fossil fuel taxes are not applied to biofuels.
4. Tax incentives were in place to promote renewable heat (RES-H), but these have been suspended for budgetary reasons.

Biomass and Wind Power

Currently, electricity generated by renewable energy resources such as hydropower and onshore wind power remains the most important, with 4,369 GWh and 1,041 GWh generated in 2004, respectively, having grown at average annual rates of 61% and 27% between 1997 and 2004, respectively (Greece: Renewable Energy Fact Sheet, 2007).

At present, biomass provides the majority of heating from renewable energy resources in Greece (920 ktoe out of 1,051 ktoe in 2004); however, there have also been increases in the solar thermal sector, and the highest average annual growth has been from geothermal sources, which increased 28% during the period 1997 to 2004 (Greece: Renewable Energy Fact Sheet, 2007). The respective penetration rates of biomass heat, solar thermal heat, and geothermal heat are presented in Table 1 below.

Table 1: Alternative Energy Resource Penetration in Greece, 1997–2004

Source: Greece: Renewable Energy Fact Sheet, 2007

Although an important contributor to heating applications in Greece, biomass growth remained stagnant during the period 1997 to 2004, while solar thermal and geothermal resources enjoyed modest to significant growth. There are further indications that solar power is an especially viable alternative energy resource for Greece in the coming years. The Centre for Renewable Energy Sources and Saving (CRES), Greece's national agency tasked with promoting renewable energy sources, has funded a number of solar energy initiatives in neighboring countries, as described in Table 2 below.

Table 2: Summary of CRES Solar Energy Initiatives

Renewable Energy Sources — Development and Implementation of Solar Energy in Armenia (€360,000): This project targeted the development of a new solar market and reinforced cooperation in the sector of renewable energy sources and energy saving in Armenia. Combi solar thermal systems of 180 m² were installed in the Narcologic Clinic of the State Medical Centre for Psychiatry and in the elders' foundation "Nork," covering sanitary hot water and heating demands. Expected annual energy savings were up to 70% and 65%, respectively.