Future of the gas market in doubt
We recall that the European goal of complete decarbonisation has a deadline of 2050. This practically implies exclusive energy supply from renewable energy sources and the complete abolition of fossil fuels.
As part of the implementation of the above plan, the final draft of the revised NERC, officially presented by the government in October and officially published in a gazette last December, explicitly provides for the prohibition of incentives for the use of natural gas, which was actually already initiated by a gazette issued in May 2022. The gazette, among many other things, stipulated the imminent abolition of the European subsidy for gas burners, which came into force on 1 January 2025.
The above decision, with its publication already in 2022, caused numerous reactions, as it was essentially a "gravestone" for the use of fossil fuels. Three years later, we look at the statistics on the use of natural gas and are not at all surprised at the insecurity caused by such a decision.
In fact, in 2024 the residential use of natural gas increased by 4.83%, which is not insignificant, considering that in theory we should be heading towards a difficult divorce with our old energy partner.
The reactions
The time is not far off when the installation of gas boilers was booming. As recently as 2018, the then government was putting forward the consulted NPPF. Specifically, the target for gas by 2030 was to increase direct use by 86% in the final consumption sectors compared to 2016.
Unsurprisingly, this incentive led to a large increase in the installation of gas boilers, which came to replace oil-fired boilers.
In 2022, just four years after the above targeting, the announcement of the end of boiler financing, combined with the gradual phasing out of gas in general, came as a bolt from the blue for professionals, businesses and consumers.
Following the ratification of the decision by the European Parliament in 2024, the President of the Panhellenic Federation of Property Owners (POMIDA), in an interview, described it as "a sharp turn, which will create significant problems for property owners and real estate transactions".
He pointed out the significant increase in costs when renting or buying and selling properties, as in the first case the cost will be borne by the owner, while in the second, one of the parties will have to bear the cost of the upgrade, thus pushing up prices in the real estate market.
He did not fail to mention the lack of an adequate alternative, pointing out that despite the shift towards renewable energy, Greece was forced to reopen the lignite plants.
POMIDA's comments were expected given that property owners who do not comply with the decision are practically put out of business.
As a corollary, rising property prices have a direct impact on the lives of tenants, who bear the cost of a housing crisis that is constantly gaining new reasons to grow.
However, it is clearly the professionals involved in the gas market, such as boiler installers, suppliers, engineers who carry out installation studies and so on, who suffer the most.
Instead.
In keeping with its commitments to the European directives, Greece is vigorously promoting the installation of electricity-powered heating technologies. The focus is on heat pumps, which this year are being funded by the state through the "Save 2025" and "Change heating and water heater" programmes.
In a study published by the NRP on the cost of domestic heating in the October-December 2023 quarter (no study was published by the NRP for 2024), a clear economic lead was recorded by heat pumps in terms of consumption. Approximately, according to industry professionals, the COP (coefficient of performance in heating) is higher in heat pumps, due to the compressor inverter that enables the efficiency to fluctuate according to demand, thus keeping consumption low.
In general, the prevailing belief is that heat pumps are only suitable for warmer climates, i.e. for the southernmost regions of the country. Of course, given that pumps are air conditioning units, they can work in most temperatures if they are installed at the right size and adjusted according to need. After all, the installation of pumps has been done systematically for many decades in northern Europe.
There is also the possibility of connecting heat pumps to solar panels. Especially in a country with strong sunshine, in summer the heat pump can be powered by the solar panels without depending on the electricity grid. It thus offers continuous access to hot water at the lowest possible cost.
A comprehensive analysis of the existing data shows that the installation of pumps can adequately replace the use of fossil fuels. It is a cost-effective investment in the long term, which is ecological due to the minimal production of atmospheric pollutants, very flexible in switching between cooling and heating, with low consumption and practicality due to the space occupied by the installations.
We must of course recognize that the biggest, but important disadvantage of pumps is the cost of acquisition - installation and the amount of work required. Installing a heat pump requires significantly more planning and preparation.
More specifically, it requires a proper assessment of the required pump power and the correct dimensions of the heat emitting devices. The process may also cause significant disruption to the property or garden as intrusive works to the external cladding of the building may be required to ensure insulation.
With a quick estimate, the cost of purchasing and installing a heat pump can range from £5,000 to over £7,000 for a 100 sq m home, not including any additional interventions such as insulation, or installing panels to maximise efficiency.
Legally, the energy market is being driven towards electrification. The demand for environmental sustainability is not only fair, but also necessary.
The real question then is not whether we should invest in cleaner forms of energy, because we clearly know that the future looks bleak unless we change the way we produce and consume energy.
In fact, we are called upon to answer the question of how we can reach the ultimate goal of carbonisation, choosing achievable solutions that do not exacerbate a pre-existing economic hardship by trying to mitigate another.
Non-negotiably, heat pumps could be an exemplary replacement solution for gas boilers, provided that the individual can cover the large financial cost of the investment to take advantage of the long-term savings.
There are, of course, government grants which cover a large part of the installation and operation costs. For example, the "Change Heating System and Water Heater" for the installation of a pump provides 50% of the total cost, with an eligible expenditure of 6,000 euros, before VAT, and VAT is also funded, just not included in the above expenditure.
So we can see that participation in the scheme significantly lowers the cost of the investment without any income criteria, it is just that those interested must be able to pay the amount of the investment initially, suffering all the possible delays and difficulties that participation in the scheme may entail.
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