10 Environmental Impact of Generating Electricity by Replacing Lignite with Photovoltaic Technology
An Analysis on the Greek NAMEA
Introduction
The greenhouse effect has led to a number of environmental problems such as an increase in the average temperature of the Earth. The main cause of this effect is high CO2 emissions (European Environment Agency, 2010). The measures that are taken to deal with air pollution may be technical and legislative/economic. The main technical measures involve the construction of new power plants with low-intensity emissions and the application of technologies with increased energy efficiency.
The Kyoto Protocol also aims to reduce greenhouse gases, mainly those emitted by developed countries. The ways of achieving the targets are primarily the introduction of national policies to reduce emissions and cooperation among the signatory states. In Europe, the protocol envisages an 8 per cent reduction in greenhouse gas emissions by the signatory states between 2008 and 2012 (below 1990 levels). Greece was allowed an increase in its emissions of 25 per cent by 2012 compared with 1990. By 2012, however, emissions are expected to have risen by more than 25 per cent, which means Greece will not meet the Kyoto target unless it takes immediate measures (European Environment Agency, 2010).
The problem can also be tackled by replacing conventional energy sources with renewable ones. Renewable energy sources do not run out but are constantly replenished and can be easily converted into electrical or thermal energy. Examples are solar energy, photovoltaic systems and solar thermal systems.
The implementation in Greece of Law 3468/2006 concerning the generation of electricity using renewable energy sources made it much simpler to install photovoltaic systems.1 The target set by the Ministry of Development was the installation of 200 MW of photovoltaic energy-generation systems in Greece by the end of 2010.2
In this section, calculations have been made in relation to Greece so that the country can avoid sanctions arising from its failure to achieve the targets set in the Kyoto Protocol. Greece must reduce by 8 per cent its CO2 emissions which cause the greenhouse effect.
On the basis of data taken from the PPC’s operational programme, certain calculations were made for a reduction in CO2 emissions. The installed capacity must be reduced and the total lignite used will have to be reduced by 8 per cent compared with 2005. Lastly, demand for electricity is assumed to rise or at least remain constant at 2005 levels. Consequently, this reduction in net electricity production resulting from the decrease in the amount of lignite will have to be offset by electrical energy generated from the installation of photovoltaic systems. It has been assumed that the amount of electrical energy which must be generated by photovoltaic system technology is equal to the size of the reduction in electricity generation from the combustion of lignite. Moreover, the amount of energy required from the installation of photovoltaic technology was also calculated.
According to the 2005 NAMEA table, CO2 is the main factor responsible for air pollution and its amount was calculated for the electrical energy industry. CO2 emissions for the electrical energy industry after the 8 per cent reduction were also calculated. This change in turn led to a change in the direct coefficients of intensity of the Global Warming Potential (GWP) group. The change in the direct coefficients of air emission intensity results in a change in the direct and indirect impact data and an extension in the elasticity of emission intensity in relation to production and final demand. In this way, the total environmental impact (direct and indirect) is calculated for the electrical energy industry. Lastly, the direct and indirect emission intensity per unit of final demand categories was computed. The change in final demand per unit for the electrical energy industry initially produced a coefficient for direct and indirect emissions whereas after our assumption (8 per cent reduction in CO2 emissions), this coefficient changes.
Definition of NAMEA
According to Eurostat (2001), the National Accounting Matrix including Environmental Accounts (NAMEA) constitutes a framework in which various types of statistical data have been consistently organized in a way that brings together economic and environmental information that originates from different parts of the statistical system. The core of this framework is a set of tables containing economic data and forms a National Accounting Matrix (NAM) compiled for National Accounts. The Environmental Accounts (EA) consists of tables containing data that are often denominated in physical units. The types of physical environmental data taken into consideration in the NAMEA accounting framework include air emissions in particular, but also emissions of waste, wastewater and water use. The Energy Balance shows the supply and use of energy and stock data on subsoil and in forest assets. The NAM also enables the presentation of environmental taxes, expenditures and other economic data.
Figure 10.1 shows how National Accounting Tables of Supply and Use and Environmental Accounts (emissions) can be expanded in the context of a NAMEA. Here, the NAM is made up of the supply-and-use tables of ordinary National Accounts, to which household consumption is added according to purpose. As can be seen on the right side of the figure, the production activities of industries result in emissions as well as in goods and services that are included in regular National Accounts. Household consumption and the corresponding emissions are displayed separately. Below the supply-and-use tables, the industry use of labour, energy and other materials can also be presented in physical units. Of course the NAM can also include other National Account Matrices, for example showing income, saving and financial flows. As an alternative, the NAMEA could include Input–Output tables instead of supply and use matrices.
Figure 10.1 Schematic description of a NAMEA framework for air emissions (source: Eurostat, 2001).
A NAMEA Pilot Study for Greece
The ‘Natural Resource Accounts and Environmental Input–Output Tables 1988–1998’ report (Mylonas et al., 2000) was the first systematic attempt to develop a consistent NAMEA for Greece. In this study, the environmental accounts showing air emissions (which include energy and material balances, accounts for water, wood and fish) cover the period 1988–1996. The air emission accounts take into consideration seven pollutants (CO2, N2O, CH4, SO2, NOx, CO and NMVOC) included in CORINAIR. The emissions are shown in accounts in accordance with a classification that is comparable with NACE Rev. 1. In the study (Mylonas et al., 2000), the calculation of the air emission data is based on CORINAIR data available according to the Selected Nomenclature for Sources of Air Pollution (SNAP) 1994. They are allocated to a 25 industry-level classification. Household emissions are taken into account since 1990 whereas the relation between transport and heating is not shown. The most recent NAMEA table constructed for Greece is for 2005 (Economidis et al., 2008).
Table 10.1 NACE* activities according to the 2005 Greek Input–Output table (26 industries)
Code |
NACE Activity Rev. 1 | |
01 & 02 |
Agriculture | |
5 |
Fisheries | |
10, 11 & 12/13–14 |
Mining and quarrying | |
15–16 |
Manufacture of food products, beverages and tobacco | |
17–19 |
Manufacture of textiles and textile products | |
20A |
Manufacture of wood and wood products | |
21–22 |
Manufacture of pulp, paper and paper products; publishing and printing | |
23 |
Manufacture of coke, refined petroleum products | |
24–25 |
Manufacture of chemicals, chemical products and | |
26 |
Manufacture of other non-metallic mineral products | |
27 |
||
28 |
Manufacture of fabricated metal products, except machinery and equipment | |
29–36 |
Manufacture of machinery and equipment | |
37 |
Recycling | |
40–41 |
Electricity, gas and water supply | |
45 |
Construction | |
50–52 |
Wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goods | |
55 |
Hotels and restaurants | |
60–64 |
Transport, storage and communication | |
65–67 |
Financial intermediation | |
70–74 |
Real estate, renting and business activities | |
75 & 90 |
Public administration and defence; Sewage and refuse disposal | |
80–84 |
Education | |
85 |
Health and social work | |
91 |
Activities of membership organizations n.e.c. | |
92, 93, 95 & 99 |
Recreational, cultural and sporting activities; Activities of households; Extra-territorial organizations |
Note
*Nomenclature statistique des activités économiques dans la communauté européenne.
Environmental Data used for this Study
According to Economidis et al. (2008), the air emission data are estimated using the so-called ‘air emission inventory first approach’ which is mainly based on the allocation of energy balance data to NACE categories (Eurostat, 2007). At present, international agreements on air emissions include the CLRTAP (Convention on Long-Range Transboundary Air Pollution) with reporting to UNECE/ EMEP and the UNFCCC (United Nations Framework Convention on Climate Change), and reporting based on the UNFCCC CRF (Common Reporting Format). The UNFCCC CRF covers six categories of greenhouse gases (CO2, N2O, CH4, HFCs, PFCs and SF6) plus four indirect greenhouse gases (NOx, CO, NMVOC, SO2). UNECE/EMEP reporting includes only NOx, CO, NMVOC and SO2 plus NH3 plus nine heavy metals as well as 17 POPs (persistent organic pollutants).
The air emissions have been further grouped and aggregated by three environmental pressure variables, namely Global Warming Potential (GWP), Acidification (ACID) and Tropospheric Ozone Forming Potential (TOFP) in addition to particulate matter (PM10) with a diameter of less than 10 Mm, from the following set of equations:
The proposed grouping results from the combined effects that each primary pollutant has on ecosystems. GWP is a measure of climate change whereas ACID is primarily related to the effect of acid rain, eutrophication of ecosystems and cardiovascular diseases in humans. TOFP is related to the production of ozone in the lowest atmosphere and can be a major factor influencing the respiratory (e.g. asthma) and cardiovascular systems of humans. Both TOFP and ACID have been found to severely damage monuments of significant cultural heritage. PM10 is presently one of the most important pollutants associated with respiratory problems and carcinogenic potency. In a study conducted on 29 European cities (Katsouyanni et al., 2001), the result for the city of Athens showed that an increase in daily PM10 levels by 10 Mg/m3 results in an increase in the mortality rate of approximately 1.5 per cent.
Calculation of Eco-Indicators
Methodology
The pollution indicators have been constructed using the following methodology (Economidis et al., 2008):
We can express the Input–Output model in matrix terms:
Matrix A is known as the matrix of technical coefficients, X the vector of total resources of the industry and Y the vector of final use of products. Solving the equation (4) for X, we obtain:
where (I – A)–1 is often referred to as the Leontief inverse. We applied a domestic-oriented model, starting from final demand and quantifying the direct and indirect effects on production and emissions activated by final demand. The results can be presented as a re-attribution of the domestic production which is derived from the basic Leontief model:
Ad matrix of domestic technical coefficients 
,
Ft vector of total (domestic + imported) final demand by industry,
M the import vector by industry which is subtracted from total final demand.
The direct emission intensity coefficients akj of the k type of emission by industry j are defined by:
The coefficients akj show the extent to which each industry generates a certain direct emission intensity factor and describe the physical quantity of emission directly caused by the production of goods as a ratio of the value of domestic production at basic prices. We also compute the total environmental dependencies:
where εkj is the matrix of induced emission coefficients showing the emission intensity, including the induced emission in other industries indirectly affected by a change in final demand of a given industry (Mylonas et al., 2000, p. 60).
The elasticity of emission intensity with respect to final consumption 
is estimated as the row sum of εkj, 
, including direct and indirect emissions for the j-th industry. These emissions are produced in the whole economy after an increase in a unitary expansion of the final demand of the specific industry.
The column sum of εkj, 
is an estimate of the total emissions of the pollutants in the whole economy owing to a one-unit increase in a given industry’s production, termed as the elasticity of emission intensity with respect to production.
The direct and indirect emission intensity per unit of final demand categories is computed by the following operation:
where εd is the industry’s extent of each emission factor intensity on each final demand component.
Electricity Generation Mix and CO2 Emissions
The electricity generation mix has been clear since PPC published its annual programme for 2005. As can be seen, lignite is the main factor of production in the generation of electrical energy. A total of 60.41 per cent of electrical energy comes from the conventional combustion of lignite, which is a basic commodity in Greece, since it is in abundance and its price is very low compared with other energy sources. For this reason, and despite the fact that its combustion causes the most emissions, lignite continues to be used for the generation of electricity. In 2005, natural gas and oil were used in more or less the same proportions of around 15 per cent each. It is worth noting that natural gas produces half the emissions from generating 1 kWh of electrical energy compared with emissions from the combustion of lignite. The remaining 10 per cent of electrical energy comes from hydroelectric installations and only 0.14 per cent from Renewable Energy Sources (RES). The percentage of electrical energy generated by photovoltaic systems is very low although efforts are being made to use them and the state offers grants and other incentives to both industry and households to encourage them to use photovoltaic systems for the generation of electrical energy (in small-and large-scale installations).
Table 10.4 shows emissions and how much they will be reduced (in g) if conventional energy sources are replaced by photovoltaic systems. More specifically, the reduction in the quantity of emissions when 1 kWh is produced by PV systems.
Table 10.2 Electricity generation mix for 2005 (%)
PPC electricity generation mix for 2005 |
||
Lignite |
60.41 | |
Oil |
14.85 | |
Natural gas |
14.46 | |
Hydroelectric |
10.14 | |
RES (renewable energy sources) |
0.14 |
Source: Greenpeace (2006).
Table 10.3 Net generation and corresponding CO2 emissions for 2005
Fuel |
Net generation (GWh) |
Emissions of CO2 (kton) |
Lignite |
31,977 |
43,041 |
Oil (in the transmission grid system) |
3,300 |
2,566 |
Oil (islands) |
4,566 |
3,529 |
Natural gas |
7,654 |
3,509 |
Hydroelectric |
5,366 |
0 |
Renewable Energy Sources (PPC) |
74 |
0 |
Total |
52,937 |
52,645 |
Source: Kanellopoulos et al. (2007).
Table 10.4 Reduction of emissions through the replacement of conventional energy sources with photovoltaic systems
Source: Environment, Education, Sustainability (2007).
Notes
CO2: carbon dioxide; SO2: sulphur dioxide; NOx: nitrogen oxide; PM10: particulate matter.
It can be seen in Table 10.4 that by replacing the method of producing 1 kWh (using photovoltaic systems instead of lignite, we will see a reduction of 1,482 g CO2, 1–1.8 g SO2, 1.17–1.23 g NOx, 1.1 g PM10).
The change in the electricity generation mix and the replacement of conventional energy source with photovoltaic systems is necessary in order to achieve the targets set by the Kyoto Protocol.
The use of RES for the generation of electricity is increasing. The most common RES in Greece is wind power, although due to its geographical position, the country also has potential for the development of installations producing solar energy and hydropower. Between 2005 and 2008, there has been a relative growth in RES overall of around 46.5 per cent, while with regard to photovoltaic systems, the installed capacity rose from 0.51 MW in 2005 to 0.68 MW (+25 per cent) in 2006 and 0.74 MW (+8 per cent) in 2007. However, the biggest increase was seen in 2008, with an installed photovoltaic capacity of 10.49 MW (+92.9 per cent). This indicates that Greece is responding positively to the potential offered by RES.
Table 10.5 Installed capacity in MW from RES
Source: Monthly Bulletin, Hellenic Transmission System Operator, November (2008).
Results of the Completion of PPC’s Strategic Plan vis-à-vis the Eenvironment
The successful completion of PPC’s strategic plan will result in significant mitigation of the impact on the environment from the generation of electrical energy in Greece, while at the same time maintaining an even mix of fuels in the energy balance. With the replacement of old production plants and the operation of new, modern power stations (fuelled by lignite, coal, natural gas and hydropower) and the increased penetration of renewable energy sources for the production of 1 kWh in the transmission grid system, emissions into the environment in 2015 will be much lower than present levels.
At the same time, the completion of the strategy (PPC, 2008) will significantly contribute towards the fulfilment of obligations undertaken by Greece, ‘since these obligations will be shaped by the targets of the EU’s Thematic Strategy on Air Pollution-TSAP’ (PPC, 2008) which require a massive reduction in emissions by 2020, as well as the commitments undertaken by the country regarding climate change.
Kyoto Protocol and the Targets that must be Met
Under the Kyoto Protocol, as noted above (see introduction), developed countries are required to take measures to reduce their greenhouse gas emissions. This is in line with the consensus that industrialized countries are primarily responsible for the greenhouse effect and must therefore take the first steps to limit the various gases.
Table 10.6 The PPC’s targets for the percentage reduction of emissions produced for the production of 1 kWh
Source: PPC (2008).
Table 10.7 Relative changes in the reduction of CO2 emission relating to the country’s sustainability (forecasts for 2050)
Source: WWF Hellas (2008).
The European Union undertook the commitment in Kyoto to reduce its greenhouse gas emissions by 8 per cent in 2010 compared with 1990 levels. In the framework of allocating responsibility among the EU member states, Greece successfully pressed to be allowed to increase its emissions by 25 per cent by 2012 (once again, compared with 1990 levels). According to European Environment Agency Technical report No. 4/2009, Greece shows a 24.9 per cent increase in greenhouse gases in 2007 compared with 1990 emission levels.
As far as Greece is concerned, the target set under the terms of the Kyoto Protocol is for a 25 per cent increase in emissions of the six greenhouse gases during the period 2008–2012 compared with 1990 levels (the base year for HFC, PFC and SF6, is 1995). Although this target allows an increase – in contrast with the majority of member states which are required to reduce emissions (Table 10.8) – it is still difficult to attain given that the upward trend of emissions is leading to an even greater increase.
Table 10.8 Greenhouse gas emissions for the period 2008–2012 relative to base year 1990 (%); commitments undertaken by the EU member states to reduce emissions
Austria |
–13 |
Belgium |
–7.5 |
Denmark |
–21 |
Finland |
0 |
France |
0 |
Germany |
–21 |
Greece |
25 |
Ireland |
13 |
Italy |
–6.5 |
Luxembourg |
–28 |
Netherlands |
–6 |
Portugal |
27 |
Spain |
15 |
Sweden |
4 |
United Kingdom |
–12.5 |
Kyoto target for ΕU15 |
–8 |
Kyoto target for ΕU10 |
–22.6 |
Kyoto target for ΕU25 |
–10.8 |
Source: EUROPA – Press Releases (2002).
Greece is bound by the target set in Directive 2001/77/EC3 to achieve a 20.1 per cent rate of participation of RES in electricity generation by 2010. At the present time, Greece has fallen far behind this European target (8.5 per cent).
It emerges from the above that it will be difficult for Greece to achieve the targets set by the Kyoto Protocol. Despite this, certain assumptions are made in this section aimed at attaining the Kyoto objectives. Specifically, the 8 per cent reduction in CO2 for the year 2005 will eventually lead to the need to replace lignite with photovoltaic systems for the production of electricity.
The Reduction in Lignite and its Replacement with Photovoltaic Systems
In order to achieve the emissions target for 2012, it is clear that a reduction of around 8 per cent must be achieved, especially in CO2 which is the main factor responsible for the greenhouse effect. The 2005 NAMEA table for Greece will be used to calculate the size of the reduction in the lignite used in electricity production. The lignite produced by PPC’s mines in 2005 totalled 67.2 million tons (Mtn) (Figure 10.2).
Figure 10.2 Annual production of lignite 1998–2005 (million tons) (source: Kavouridis et al., 2006).
Lignite deposits (Κavouridis et al., 2005) in Greece are expected to last for the next 40 years, since there are 6.7 billion tons (Gtn), of which only 3.3 billion tons (Gtn) can be used for the production of electricity. The annual production of lignite after the Kyoto Protocol rose by 20 per cent to reach an average of 70 million tons annually. The combustion of lignite in 2005 resulted in the production of a total of 43,040 kton of CO2.
Table 10.9 shows the installed capacity and corresponding production of electricity for 2005. It can be seen that plants producing electricity from the combustion of lignite account for the highest percentage of installed capacity (43.1 per cent), around 5,288 MW, which produces 31,977 GWh of electricity. These are followed by hydroelectric plants which produce 5,367 GWh of electricity, oil-powered plants with 2,309 MW and those operating on natural gas with 1,581 MW of installed capacity, accounting for 15.7 per cent and 8.2 per cent of total electricity production respectively. Lastly, it should be noted that the total installed capacity of RES in 2005 was just 27 MW which produces 56 GWh of electricity and accounts for 0.1 per cent of total electricity generation.
Table 10.9 Installed capacity and generation of electricity for the year 2005
Source: PPC (2006).
Table 10.10, which is an excerpt of the published NAMEA 2005 table for the Greek economy, shows that 50,316.32 kton of CO2 resulted from the production of electrical energy in 2005.
Table 10.10 Emissions from the production of electricity, excerpt from ΝΑΜΕΑ 2005
Source: Economidis et al. (2008).
Table 10.A.1 (see Appendix) shows that the highest percentage of total CO2 emissions comes from the generation of electrical energy.
Of these (Kanellopoulos et al., 2007), 43,041 kton of CO2 are produced by the generation of electricity using lignite as its energy source.
According to the targets that must be achieved (Kyoto target for ΕU15), we assume that Greece must reduce its CO2 emissions by 8 per cent. This calculation will be made using the NAMEA table. It should be noted that the intention is for the reduction in CO2 emissions to be achieved from a decrease in the amount of lignite used to produce electricity by replacing it with photovoltaic systems.
Table 10.11 specifies the amount of lignite that would have to be replaced by photovoltaic systems in 2005.
Table 10.11 Installed capacity, electricity generation and emissions per specific quantity of lignite
Source: Kanellopoulos et al. (2007).
According to Table 10.11, in 2004, the installed capacity was 5,528.00 MW from which a total of 32,552 GWh of electrical energy was produced from the combustion of approximately 70 million tons of lignite. The CO2 emissions from the combustion of lignite used to generate electricity totalled 43,814.95 kton.
For the year 2005, on the basis of data published by the PPC, the installed capacity was 5,430.35 MW, from which a total of 31,977.00 GWh of electrical energy was produced from the combustion of 67.3 million tons of lignite. The corresponding CO2 emissions totalled 43,041.00 kton. We then assumed an 8 per cent reduction in the 2005 figures, as shown in Table 10.11.
There must therefore be an 8 per cent reduction in emissions compared with 2005 (i.e. they must be decreased to 39,597.72 kton of CO2). In order to achieve this 8 per cent reduction in emissions, there must be a reduction of 2,558.17 GWh in net electricity generation compared with initial 2005 levels. In view of the above, the installed capacity must be reduced to 4,995.92 MW and the total amount of lignite used will decrease significantly to 61.92 million tons compared with 2005 when the corresponding amount was 67.3 million tons.
However, demand for electricity is assumed to rise or at least remain the same as 2005 levels. Consequently, this reduction in net electricity generation, which will result from a decrease in the amount of lignite used, will have to be made up for by electricity generated from the installation of photovoltaic systems. According to Table 10.11, the amount of electrical energy which must be generated by photovoltaic system technology has been calculated as being equal to the size of the reduction in electricity generation from the combustion of lignite which is 2,558.17 GWh. According to our calculations, this amount of energy requires the installation of approximately 1,967.8 GW of photovoltaic technology.
Results Based on the 2005 NAMEA Table
As already mentioned, Table 10.A.1 in Appendix shows an excerpt from the NAMEA Table of Greek Economy for Industry 40–41 in 2005. In the electricity generation industry, the main factor responsible for air pollution is CO2. According to the 2005 ΝΑΜΕΑ table, the amount of CO2 for 2005 was 50,316.32 kton.
We assume that in order for Greece to achieve the target set by the Kyoto Protocol, it must reduce its CO2 emissions by 8 per cent. Consequently, CO2 emissions for the electrical energy industry after the 8 per cent reduction are 46,291.01 kton (Table 10.12).
Table 10.12 Pollution emissions for industry 40–41, after the 8% reduction in the year 2005
The change in CO2 emissions measured in physical units results in a change in the direct coefficients of intensity of air emissions (akj) as well as in the physical amount of emissions of the GWP group that is symbolized by (Ekj) and relates to climate change and the greenhouse effect.
According to the results for the calculation of the direct coefficient (akj), electricity generation is the industry that is primarily responsible for global warming (Tables 10.13 and 10.14). The direct coefficient of intensity for the GWP group of the electrical energy industry is 11.4995 whereas the emissions caused by the generation of electricity total 52,403.21 kton.
Table 10.13 Quantity of emissions by category of environmental pressure variables and direct coefficients of intensity of air emissions for industry 40–41
Table 10.14 Quantity of emissions by category of environmental pressure variables and direct coefficients of intensity of air emissions after the 8% reduction
According to the assumption of an 8 per cent reduction in CO2 emissions, we get new values for the direct coefficients and the emissions per category of air pollution. That is, the direct coefficient of intensity for the GWP group of the electrical energy industry becomes 10.6162 whereas the emissions caused by the generation of electricity total 48,377.906 kton.
With regard to the air pollution categories ACID and TOFP, the data remained unchanged since the change stemming from the reduction in CO2 does not affect them.
In Tables 10.15 and 10.16, the total environmental impact is calculated according to relationship eight as well as the elasticity of emission intensity for production 
and final demand 
.
Table 10.15 Total coefficients (direct and indirect) of air emissions. The elasticity of emission intensity with respect to final consumption 
and elasticity of emissions intensity with respect to production 
Table 10.16 Total coefficients (direct and indirect) of air emissions. The elasticity of emission intensity with respect to final consumption 
and elasticity of emissions intensity with respect to production 
, after the 8% reduction
According to Table 10.14, it can be seen that a change in CO2 emissions from electricity generation can cause changes in the direct coefficients of intensity and, by extension, in the total coefficients (Table 10.16).
Following an 8 per cent change in CO2 emissions, the electrical energy industry has a smaller effect on all the other sectors in the economy. The total environmental impact (direct and indirect) for the electrical energy industry on the industry itself was reduced from 12.372 (Table 10.15) to 11.4219 (Table 10.16).
At the same time, reductions can be seen in the data on the elasticity of emission intensity for production 
and final demand 
. It can be seen that 
for the total electrical energy industry changes from 12.4757 to 11.5254 and 
from 17.1905 to 15.8701.
Lastly, the direct and indirect emission intensity per unit of final demand categories is computed. Where εd is the industry’s extent of each emission factor intensity on each final demand component of the Greek economy for the year
2005.
The results we obtain from Tables 10.17 and 10.18 show that the direct and indirect emission intensity per unit of total final demand for the electrical energy industry initially is 0.5163 whereas with the assumption of an 8 per cent reduction in GWP group emissions, this coefficient fell to 0.4767.
Table 10.17 Direct and indirect emissions intensity per unit of final demand categories
Table 10.18 Direct and indirect emissions intensity per unit of final demand categories, after the 8% reduction
Household final consumption is the most important category of final demand for the electrical energy industry since it contributes the highest percentage. Thus, the per-unit change in household final consumption initially caused 0.3817 direct and indirect emissions for the electrical energy industry whereas after the 8 per cent reduction in CO2 emissions, this coefficient fell to 0.3524.
Conclusions
In this chapter we have made calculations that relate to Greece. If the country is to avoid the imposition of sanctions due to its failure to achieve the targets set in the Kyoto Protocol, it must reduce its CO2 emissions, which are responsible for the greenhouse effect, by 8 per cent.
On the basis of data taken from the PPC’s operational programme, we have made certain calculations to reduce CO2 emissions to 39,597.72 kton. The combustion of lignite for electricity generation (8 per cent) must be followed by a reduction in net electricity generation of 2,558.17 GWh compared with 2005 levels. Installed capacity must be reduced to 4,995.92 MW and the total amount of lignite used must be significantly reduced to 61.92 million tons compared with 2005 when the corresponding amount was 67.3 million tons. Lastly, the demand for electricity is assumed to rise or at least remain the same as 2005 levels. Consequently, this reduction in net electricity generation, which will result from a decrease in the amount of lignite used, will have to be made up for by electricity generated from the installation of photovoltaic systems. The amount of electrical energy which must be generated by photovoltaic systems technology has been calculated as being equal to the size of the reduction in electricity generation from the combustion of lignite which is 2,558.17 GWh. According to our calculations, this amount of energy requires the installation of approximately 1,967.8 GW of photovoltaic technology.
According to the 2005 ΝΑΜΕΑ table, the main factor responsible for air pollution is CO2 and 50,316.32 kton are produced in the electrical energy industry. CO2 emissions in the electrical energy industry after the 8 per cent reduction are 46,291.01 kton. This change in turn results in a change in the direct coefficients of intensity of the GWP group which had initially been estimated at 11.4995, whereas after our assumption, this figure fell to 10.6162. The change in the direct coefficients of air emission intensity results in a change in direct and indirect impact data and, by extension, in the elasticity of emission intensity related to production and final demand.
The total environmental impact (direct and indirect) for the electrical energy industry was therefore reduced from 12,3722 to 11,4219, whereas the elasticity of emission intensity relative to production for the electrical energy industry fell from 12,4758 to 11,5254 and the elasticity of emission intensity for final demand changed from 17,1906 to 15,8701. The magnitude of the coefficients means that the results are significant.
Lastly, the direct and indirect emission intensity per unit of final demand categories is computed. The change in the total final demand per unit for the electrical energy industry initially caused 0.5163 direct and indirect emissions whereas after our assumption (of an 8 per cent reduction in CO2 emissions), this coefficient fell to 0.4767.
Household final consumption is the most important category of final demand for the electrical energy industry since it contributes the highest percentage. Thus, the per-unit change in household final consumption initially caused 0.3817 direct and indirect emissions for the electrical energy industry whereas after the 8 per cent reduction in CO2 emissions, this coefficient fell to 0.3524.
Appendix
Table 10.A.1 Excerpt from NAMEA table of Greek economy for industry 40–41 in the year 2005 (emissions)
Source: Economidis et al. (2008).
Notes
1 Law 3468/2006 on the ‘Generation of Electricity Using Renewable Energy Sources and High-Efficiency Cogeneration of Electricity and Heat and Other Provisions’.
2 Speech on ‘Investments: Renewable Energy Sources’ by the Ministry General Secretary at a meeting organized by the Chamber of Light Industry, Piraeus, 2007.
3 Directive 2001/77/EC deals with the production of electricity from RES. The purpose of the directive is to promote an increase in the contribution of RES to electricity production in the internal market for electricity and to create a basis for a future Community framework.
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