The Greek government will have a billion euros at its disposal from revenues from emission rights auctions to subsidize electricity bills in the first quarter of 2022, when prices are expected to continue to soar.
Although the total energy cost from the ongoing price increases in gas and electricity is estimated at 4 billion euros for the new year, the emission allowance fund, which grows as the cost of carbon dioxide increases, is seen as a very good option to finance the continuation of social support measures, to which the government has committed for the duration of the energy crisis.
More specifically, according to the head of the Renewable Energy Sources Operator & Guarantees of Origin (DAPEEP), Giannis Giarentis, who also oversees the emissions allowance, the estimated average CO2 price for 2022 is 75 euros per ton.
At this price, the proceeds from the auction of 19,200,000 emission allowances will reach 1.4 billion euros. If, as Giarentis notes, the quota of 70% for the strengthening of the Energy Transition Fund through which the subsidies of the electricity bills are financed is maintained, this would mean revenues close to 1 billion euros.
The corresponding amount this year through the Energy Transition Fund that will reach electricity consumers amounts to 700 million euros and corresponds to 70% of total revenues from pollution auctions for 2021 that amount to 1.15 billion euros.
Nonetheless, rising emissions alone are not enough to stem the tide of increases that will come with the new year, as the energy crisis deepens across Europe, making the prospect of possible power outages more likely.
The geopolitical tension stemming from the crisis in Ukraine has sparked a rally in gas prices, which in turn, combined with the harsh winter sweeping Europe, has sent wholesale electricity prices through the roof.