kathimerini.gr
Greece adopts Italian model to curb energy costs for its energy-intensive industries
Facing competitiveness challenges due to high energy costs, Greece will implement an Italian model offering energy from renewable sources at a fixed price for three years, with repayment over 20 years, impacting around 60 factories.
- How does this measure work, and what are its broader implications for Greece's industrial sector and its competitiveness within the EU?
- The mechanism involves the Renewable Energy Sources Manager (DAPEES) supplying energy at a fixed price; industries must then build or fund new renewable energy projects, repaying the energy over 20 years at the same price. This aims to alleviate high energy costs, a significant disadvantage compared to competitors in Europe and beyond, such as Turkey.
- What is the core measure Greece is adopting to address the high energy costs burdening its energy-intensive industries, and what are its immediate implications?
- Greece is adopting an Italian model, effectively an "energy loan," providing energy from renewable sources at a fixed price for three years to approximately 60 energy-intensive factories consuming 6 TWh annually. This avoids direct subsidies, aiming to improve industrial competitiveness by reducing energy expenses.
- What are the potential long-term consequences and challenges associated with this initiative, considering the broader European energy landscape and the experiences of other countries?
- The plan, mirroring Italy's Energy Release 2.0, approved by the EU as compatible with state aid, seeks to bridge the competitiveness gap with countries offering lower energy prices. However, the long-term success depends on the timely construction of renewable energy projects by the industries and the continued competitiveness of the 20-year repayment model against fluctuating market prices.
Cognitive Concepts
Framing Bias
The article presents the Greek government's response to energy cost concerns of the domestic industry as a positive step. The focus is on the government's proactive approach in adopting the Italian model, highlighting the urgency of the situation and the potential benefits for approximately 60 factories. The narrative emphasizes the government's solution—a three-year energy loan mechanism—rather than dwelling on potential drawbacks or criticisms. This framing might give an overly optimistic view, minimizing potential issues with the plan's long-term effects or implementation challenges.
Language Bias
The language used is generally neutral, but phrases such as "roκανίζει την ανταγωνιστικότητά της" (undermines its competitiveness) and "υπαρξιακό" (existential) are used to describe the situation, highlighting the severity of the problem for the industry and potentially influencing reader perception toward support for government intervention. The repeated use of terms like "πιεστικά αιτήματα" (pressing demands) and "επείγουσα ανάγκη" (urgent need) emphasizes the industry's concerns.
Bias by Omission
While the article presents the government's solution and the industry's perspective, it lacks a critical analysis of the potential negative consequences of the proposed measure. For example, the long-term financial implications of the 20-year energy repayment plan for participating industries are not fully explored. Additionally, alternative solutions to reduce energy costs or counter the competitiveness gap aren't discussed. The article also omits a detailed cost-benefit analysis of the proposed mechanism.
False Dichotomy
The article presents a somewhat false dichotomy by suggesting the only option is government intervention. The narrative frames the situation as a choice between the government's proposed solution and the dire consequences of inaction. It neglects exploring other possible approaches such as investments in energy efficiency improvements within the industry or broader reforms in the energy market.
Gender Bias
The article primarily focuses on policy and economic aspects, with limited gendered language. No explicit gender bias is detected, but the article could benefit from greater gender diversity in sources or commentary, ensuring broader representation of viewpoints.
Sustainable Development Goals
The Greek government is adopting an Italian model to reduce energy costs for its energy-intensive industries. This involves providing access to renewable energy at a fixed price for three years, with industries obligated to repay by constructing or financing new renewable energy projects over 20 years. This measure directly addresses SDG 7 (Affordable and Clean Energy) by promoting sustainable energy sources and reducing energy costs for businesses, thereby enhancing energy affordability and access. The initiative aims to improve the competitiveness of Greek industries, which are currently facing higher energy costs than their European counterparts. This aligns with SDG 7 target 7.a, which calls for increasing international cooperation to facilitate access to clean energy research and technology.