3Recent developments in the Greek Gas and Power Markets

2014 was a critical year for the EU and its energy policy and even more for Greece and its vital energy sector. The Research Centre for Energy Management (RCEM) at ESCP Europe Business School in collaboration with the Greek Energy Forum, are thus convening this conference in order to discuss the latest developments around the ongoing liberalisation of the Greek energy market, focusing on both Natural Gas and Power markets, and its integration to a European commercial environment.

The efforts for Greece to have a leading role in the international energy scene, retain its status as the most credible party in the wider region, and strengthen its diplomatic ties with its counterparts, should not be the sole endeavour of the present government; on the contrary, they should be first in the list of a National Energy Plan, which should be the product of ample societal consensus. History has shown that an over-expanded public sector and market monopolies have proven to be ineffective. Greece, being one of the first members acceding to the EU, should lead in the process of abolishing monopolies and strengthening competition. The only purposes served by a policy of contesting foreign investments are, Greece’s political isolation, the casting of doubts on the prospective economic recovery, and the undermining of the political stability.

The investments in energy infrastructure in South-East Europe, which is characterised by high dependency on Russian gas and partial implementation of the 3rd energy package, will be the trigger for the liberalisation of the markets and the foundation for their future integration. The EU should continue on the track of a thorough implementation of the 3rd energy package with the aim to strengthen competition, through the integration of the European markets and the establishment of a level playing field. A further diversification of supply sources and the safeguard of security of supply seem to be a one-way road.

In conclusion, the geostrategic location of Greece alongside the advancement in structural reforms in its energy markets, in comparison with neighbouring countries, render Greece as the optimal choice for attracting foreign direct investment in the crucial energy sector, one of the few pillars that can become the country’s driving force for growth, economic development and job creation.

Dr. Kostas Andriosopoulos, Director, Research Centre for Energy Management (RCEM) at ESCP Europe Business School & Vice Chairman, Public Gas Corporation S.A. (DEPA)

Prof. Dinos Arcoumanis, Ambassador-at-Large of the Hellenic Republic for Energy Policy and New Technologies

Welcome note

Recent developments in the Greek Gas and Power Markets4 5Recent developments in the Greek Gas and Power Markets

Introduction and Chair: Chrysa Liagou, Journalist, Kathimerini 1. Nikos Frydas, Planning Manager, European Network of Transmission System Operators for Electricity (ENTSO-E) 2. Rania Aikaterinari, Deputy CEO, Greek Public Power Corporation 3. Yiannis Yiarentis, Chairman and CEO, Independent Power Transmission Operator (ADMIE) 4. Konstantinos Zontanos, Chairman and CEO, Hellenic Electricity Distribution Network Operator (DEDDHE) 5. Anastasios Garis, Chairman and CEO, Operator of Electricity Market (LAGIE) 6. Miltos Aslanoglou, Vice Chairman, Regulatory Authority for Energy (RAE) for Electricity (ENTSO-E) 7. Michel Emmanuel Piguet, CEO, Elpedison (Power & Energy) 8. Dinos Benroubi, Executive Director-General Manager, PROTERGIA S.A.

15:45 - 16:15 Coffee Break

16:15 - 18:00 “The 2030 European Energy Targets and their role/impact on the liberalization of the Greek Energy markets” • How can the national regulators and networks support the EU energy strategy? • What will be the future role of gas in regional power generation? • Are the banks in a position to provide the necessary financing and credit requirement for this new era of the energy markets? • What are the main geopolitical developments and implications in SE Europe?

Introduction and Chair: Leo Drollas, Director & Chief Economist, Centre for Global Energy Studies 1. Carlo Andrea Bollino, President, Italian Association of Energy Economists (AIEE) 2. Jean-Michele Glachant, Director, Florence School of Regulation 3. Rudy Van Beurden, Communication and Public Affairs Director, Fluxys 4. Dimitris Dimopoulos, Deputy CEO, National Bank of Greece (NBG) 5. Solon Kassinis, Managing Director, Kassinis International Consulting

19:45 Official Dinner Dinos Arcoumanis, Ambassador-at-Large of the Hellenic Republic for Energy Policy and New Technologies

Kostas Andriosopoulos, Director of RCEM at ESCP Europe Business School & Vice Chairman, Public Gas Corporation S.A. (DEPA) Closing Remarks: Antonis Samaras, Prime Minister, Hellenic Republic

09:00 - 10:00 Registration

10:00 - 10:15 Welcome remarks: Kostas Andriosopoulos, Director of RCEM at ESCP Europe Business School & Vice Chairman, Public Gas Corporation S.A. (DEPA) Dinos Arcoumanis, Ambassador-at-Large of the Hellenic Republic for Energy Policy and New Technologies

10:15 - 10:45 Opening keynote address: Makis Papageorgiou, Deputy Minister of Environment, Energy and Climate Change, Hellenic Republic

10:45 - 12:45 “Liberalisation of the Natural Gas Market” • Can a virtual trading gas hub be established in the Balkans? What is the role of Greece and what are the necessary conditions for this to happen? • How can we boost the internal gas demand, both for industrial and consumer use? What will be the benefits for the consumers? • What could attract more international energy firms to seek active involvement in the Greek Gas market, and thus increase competition? • What are the milestones before we can talk of a fully liberalised gas market in Greece?

Introduction and Chair: Angelos Gkanoutas-Leventis, Vice Chairman, Greek Energy Forum 1. Stephan Kamphues, President, European Network of Transmission System Operators for Gas (ENTSO-G) 2. Michalis Thomadakis, Board Member, Regulatory Authority for Energy (RAE) 3. George Spanoudis, Chairman, Greek Public Gas Corporation (DEPA) 4. Anar Mammadov, CEO, Socar Energy Hellas 5. Konstantinos Xifaras, CEO, Hellenic Gas Transmission System Operator (DESFA) 6. Panayiotis Kanellopoulos, CEO M&M Gas 7. Giuseppe Tringalli, Manager, Knud E Hansen A/S

12:45 - 13:45 Light Lunch

13:45 - 15:45 “Liberalization of the power market” • How is the on-going liberalisation of the power market progressing? • How important is the interconnection of the Greek Islands with the mainland power grid? • What are the future opportunities for growth for the two “new” Power Utilities? How can consumers benefit from the competition? • Can we learn from the Italian or other European experiences? • How is the market going to perceive the new NOME-type auctions?

Conference Programme Conference Programme

Recent developments in the Greek Gas and Power Markets6 7Recent developments in the Greek Gas and Power Markets

Antonis Samaras, Prime Minister, Hellenic Republic

Antonis C. Samaras is the Prime Minister of the Hellenic Republic and President of Nea Demokratia (ND). He was born in Athens on May 23, 1951. He is married to Georgia Kritikos; they have a daughter, Lena, 23, and a son, Kostas, 16. He holds degrees in Economics and Business Administration from Amherst College and Harvard University (MBA). From 1977 to 1993 he was a member of the Hellenic Parliament representing the Prefecture of Messinia with Nea Demokratia and served as Minister of Finance and Minister for Foreign Affairs. In 1993 he was elected member of the Hellenic Parliament for the Prefecture of Messinia with the political party “Political Spring” (Politiki Anixi), which he founded and

led till 2004. In 2004 he was elected member of the European Parliament with Nea Demokratia. He was member of the Budget Committee, the Committee for Economic and Monetary Affairs, the Committee for the Lisbon Treaty and the Committee of the EU-Russia Parliamentary Cooperation. In 2007 Mr. Samaras was elected member of the Hellenic Parliament for the Prefecture of Messinia with Nea Demokratia and was reelected in 2009. He was a member of the Standing Committee for Economic Affairs and the Committee for European Affairs of the Hellenic Parliament until January 2009, when he was appointed Minister of Culture. Under this capacity, he inaugurated the new Acropolis Museum in July 2009. In November 2009 he was elected the 7th President of Nea Demokratia by the party members. On June 20th, 2012, he was elected Prime Minister of the Hellenic Republic and formed a three party coalition government. He is fluent in English, French and Italian.

Makis Papageorgiou, Deputy Minister of Environment, Energy and Climate Change, Hellenic Republic

Born in 1956 in Athens, Greece, Makis Papageorgiou graduated from the Experimental School of the University of Athens (Peiramatiko) and obtained a Law Degree from the University of Thessaloniki. After a degree in Business Administration he obtained an MBA from Bentley University in Boston, Ma., USA. Prior to his appointment as Managing Director of Public Gas Corporation (DEPA) SA in December 2005, he worked for more than ten years in several senior positions and as General Manager in various companies of the private sector in Greece and abroad mainly within the auto industry and the publishing and retail industry. From June 2004 till December 2005 he was the Managing Director of Suburban Railroad SA. He

joined DEPA in December 2005 as Managing Director and from May 31, 2006 until December 16, 2009 as Chairman of the Board of Directors and CEO. From 2010 he worked as a consultant for Business Investments. He served as Deputy Section Head for Energy within the political party of New Democracy and on June 21 2012 he was appointed Deputy Minister of Environment, Energy and Climate Change. Makis Papageorgiou is a father of four children. He is fluent in English and during his leisure time he enjoys sports, cinema and theatre.

Kostas Andriosopoulos, Director of RCEM at ESCP Europe Business School & Vice Chairman, Public Gas Corporation S.A. (DEPA)

Dr. Kostas Andriosopoulos (Kostas) is the Executive Director of the Research Centre for Energy Management at ESCP Europe Business School where he holds the position of Associate Professor in Finance and Energy Economics. He is also the Academic Director of the full-time (MEM) and the Executive (EMEM) Masters in Energy Management. Kostas holds a PhD in Finance (Cass Business School, City University London), where he has been the recipient of the prestigious Alexander S. Onassis Public Benefit Foundation’s scholarship. He also holds an MBA and MSc in Finance (Northeastern University,

Boston, USA), and a bachelor’s degree in Production Engineering and Management (Technical University of Crete, Greece).Kostas’ current interests include energy-related geopolitical issues, price modelling, financial engineering and the application of operational research tools on risk management and investment techniques in energy, shipping and agricultural commodity markets. His work has been published in international finance- and commodity-related Journals, and has been presented in recognised conferences world-wide. He has edited special issues in recognised journals, acts as a reviewer for a number of academic journals, and has organised numerous international conferences. In addition to his academic profile he has an extensive professional experience in the business world. Kostas is currently the Vice-Chairman of the Board of Directors of the Greek Public Gas Corporation (DEPA). Kostas has served as an advisor for a number of international clients from the energy, food, manufacturing, web & software, commodity trading and shipping industries. He also co-founded in 2009 Symmetria Web Solutions, a web-based software company. In addition, he is a board member of Symmetria Ltd., a family owned commodities brokerage and trading firm. He has also worked for the British Bankers’ Association reporting directly to the senior Director for Retail Banking and the CEO (2007). Kostas is a member in various professional and academic associations and acted as a member of the Energy Commission of the Industry and Parliament Trust in the UK (2012-13). He lives in London with his wife Chrysoula and his two children, Maria and Dimitris.

Dinos Arcoumanis, Ambassador-at-Large of the Hellenic Republic for Energy Policyand New Technologies

Professor Arcoumanis holds undergraduate and graduate degrees in Physics, Engineering and Mechanical Engineering from the Aristotelian University of Thessaloniki, Greece (1973), the University of California at Irvine, USA (1980), and the Imperial College of Science, Technology and Medicine, London (1984), respectively. Following his appointment as Lecturer at Imperial College in 1988, he was promoted to Reader in 1992 and to Professor of Internal Combustion Engines in 1995. In October 2000 he joined City University as Head of the Aeronautical, Civil and Mechanical Engineering Department (ACME) and

assumed the post of Dean of the School of Engineering & Mathematical Sciences (SEMS). In July 2006 he was appointed Pro-Vice-Chancellor with responsibility for research and international links, whilst remaining part-time Dean in SEMS. In July 2008 he stepped down as Dean of the School to take up the post of Deputy Vice-Chancellor (Research & International), which he occupied until 01 August 2014.For his extensive research on fluid mechanics and combustion of internal combustion engines Professor Arcoumanis has received numerous awards including the 1991 Dugald Clerk Prize of IMechE and the 1995 and 1998 Arch T. Colwell Merit Award of the Society of Automotive Engineers. He has been a member of the Swedish National Board for Industrial and Technical Development (1996, 2000) and acted as Consultant to Brussels (DG17) and Bechtel Ltd. on the Auto-oil II European Programme (1998 to 2000), which focussed on alternative and renewable fuels for transportation. He is a Fellow of the UK Institution of Mechanical Engineers and the International Society of Automotive Engineers and was elected to the Royal Academy of Engineering in 2001. He holds honorary professorships at Tianjin and Nanjing University of Aeronautics and Astronautics and at the St. Petersburg State Polytechnic University of Russia where he received an honorary doctorate in 2009. Since 2011, he is Director of the International Institute of Cavitation Research which is funded by the Lloyd’s Register Educational Trust and represents a partnership between City University London, Loughborough University and the Delft University of the Netherlands.In 1999 Professor Arcoumanis founded the International Journal of Engine Research (JER) and he is now acting as its Editor for Europe. He is author and co-author of some 230 publications and in 2009 he edited and co-authored a Springer-Verlag monograph on “Flow and Combustion in Automotive Engines”. Since 2010 he is also the co-ordinator of the World Cities World Class (WC2) University Network which brings together like-minded international institutions located in the heart of world cities for addressing through research and education issues around transport, global health, business and cultural industries. In September 2012 Professor Arcoumanis was appointed Ambassador-at-Large of the Hellenic Republic with responsibility for Energy Policy and New Technologies.

Keynote Speakers Conference Organizers

Recent developments in the Greek Gas and Power Markets8 9Recent developments in the Greek Gas and Power Markets

Leo Drollas, Director & Chief Economist, Centre for Global Energy Studies

Born in India of Greek and Anglo-Irish parents, and educated at Athens College in Athens, Greece, from which he graduated cum laude, Leo Drollas attended the London School of Economics where he read economics. Having obtained his B.Sc. (Econ) and M.Sc. (Econ) at the LSE, he then completed a doctorate at the same university, choosing as his thesis a country’s foreign trade sector in disequilibrium. After leaving the LSE in 1975, Leo Drollas worked in London at the Commodities Research Unit and then joined British Petroleum in 1977 as the company’s first econometrician. At BP he managed the energy and economic modelling team in the company’s Corporate Planning Department (1980-86) and was

responsible for many studies on various aspects of the oil market. Whilst at BP, Leo Drollas was seconded for two years to the Confederation of British Industry (1986-88), where he held the post of Deputy Director of Economics and completed two major studies — one on the attitude of British business towards exchange rates and the other comparing British and German manufacturing. In 1989 Leo Drollas joined as its Chief Economist the Centre for Global Energy Studies (CGES), a think-tank founded in that year by Sheikh Ahmed Zaki Yamani, the former Oil Minister of Saudi Arabia.Leo Drollas was the Deputy Director and Chief Economist at the CGES from 1989 until 2011, becoming in that year the CGES’ Director and retaining the title of Chief Economist. During his time at the CGES, which ceased operations in January 2014, Leo dealt with subjects as diverse as oil prices in the long run, oil speculation versus fundamentals, oil’s shipping needs, the demand for aviation fuel, US gasoline demand, the relationship between oil inventories and prices, the determination of oil product prices, the factors driving oil production, oil capacity utilisation and oil prices, oil pipeline tariffs, OPEC’s oil-quota policies, Chinese oil demand, US and global demand for natural gas, the connection between desired oil stock cover and oil futures prices, and many more. Leo Drollas co-authored with David Long of Oxford Petroleum Research Associates a major CGES study on the strategic hedging activities of oil companies and directed the CGES’ work on many aspects of the oil futures markets. Over a career spanning 37 years, Leo Drollas has written many articles and studies on oil, energy and the economy in general, and co-authored a book on oil with Jon Greenman called “Oil – the Devil’s Gold” [Duckworth, 1989]. He has spoken at numerous conferences on diverse oil and gas-related subjects, including the oil market in the short and long term, Asian oil demand, the oil futures markets, the world’s gas outlook, global warming, oil fundamentals versus speculation and non-OPEC oil supplies, among many others. Thus far in 2014 Leo has spoken at energy conferences in Abu Dhabi, Tokyo, Athens, Rotterdam, Milan and London. He has appeared frequently on the business programmes of CNN, CNBC, ITV-1, BBC-1, the BBC’s World Service, Bloomberg TV, Al Jazeera, Sky News, Channel Four and other channels, and has contributed to numerous radio programmes in Europe, the Far East and the US. Leo Drollas has been quoted regularly on the main wire services and in the world’s leading financial newspapers in the West and the Far East.

Angelos Gkanoutas-Leventis, Vice Chairman, Greek Energy Forum

Angelos is an economist, with a strong academic background, having graduated from the London School of Economics and the City University of London where he was awarded a PhD for his research on the financialisation of the oil market. After gaining experiences in the consulting, marketing and banking sectors, Angelos started his career in the oil & gas industry as an economist of Pertrobras, focusing on expanding its business activities in the international area. Since then, he joined BP, where he is currently part of the commercial management team of a production facility, overlooking a number of products as well as focusing on management of change and crisis & continuity management. Angelos is a founding

member and current Vice Chairman of the Greek Energy Forum, a professional network for Greek energy professionals, while he also holds the position of a Fellow in the CITYPERC Research Center (City Univiresity, London).

Chrysa Liagou, Journalist, Kathimerini

Chrysa Liagou works at the newspaper “Kathimerini” covering the fields of energy and industry. Her experience at this field, consists of 18 years of systematic monitoring of developments in the domestic and international markets, with a focus on sectors of oil, gas and electricity. Her articles and analysis on economic and geopolitical dimension of energy issues are rich and distinguished by validity and reliability. At times she has collaborated with specialized financial press and electronic media, and since 1999 she has been working in the financial section of the newspaper “Kathimerini” . She is a graduate of Panteion University with specialization in public-finance.

Session Chairs and Moderators Speakers

Rania AikaterinariDeputy CEO, Greek PublicPower Corporation (PPC)

Dimitris DimopoulosDeputy CEO, National Bank of Greece (NBG)

Stephan KamphuesPresident, European Network of Transmission System Operators for Gas (ENTSO-G)

George SpanoudisChairman, Public Gas Corporation S.A. (DEPA)

Konstantinos XifarasCEO, Hellenic Gas Transmission System Operator (DESFA)

Miltos AslanoglouVice Chairman, Regulatory Authority for Energy (RAE)

Nikos FrydasPlanning Manager, European Network of Transmission System Operators for Electricity (ENTSO-E)

Panayiotis KanellopoulosCEO, M&M Gas Co S.A

Michalis ThomadakisBoard Member, Regulatory Authority for Energy (RAE)

Yiannis YiarentisChairman and CEO, Independent Power Transmission Operator (ADMIE)

Dinos BenroubiExecutive Director-General Manager, PROTERGIA S.A.

Anastasios GarisChairman and CEO, Operator of Electricity Market (LAGIE)

Anar MammadovCEO, Socar Energy Hellas

Solon KassinisManaging Director, Kassinis International Consulting

Giuseppe TringalliManager, Knud E Hansen A/S

Konstantinos ZontanosChairman & CEO, Hellenic Electricity Distribution Network Operator S.A. (DEDDIE)

Carlo Andrea BollinoPresident, Italian Association of Energy Economists, AIEE

Jean-Michele GlachantDirector, Florence Institute of Regulation

Michel Emmanuel PiguetCEO, Elpedison(Power & Energy)

Rudy Van BeurdenCommunication and Public Affairs Director, Fluxys

Recent developments in the Greek Gas and Power Markets10 11Recent developments in the Greek Gas and Power Markets

NotesNotes