European Commission approves US$2.5bn Greek policy to support 4.2GW of renewables

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
The government scheme is designed to support a raft of renewable projects, including solar and solar-plus-storage. Image: ABO Wind.

The European Commission (EC) has approved a €2.27 billion (US$2.56 billion) Greek scheme to support 4.2GW of installed renewables capacity after assessing it in the context of EU state aid rules.

The scheme is intended to support electricity produced from various renewable energy sources including solar PV and solar-plus-storage in and outside Greece.

Now approved, the scheme will see solar installations supported through a joint competitive tendering process.  

Electricity production will be subject to an auction and aid will take the form of a two-way contract-for-difference premium. Under this system, a reference price is set at auction and either the state or the generator will pay the other the difference if the actual price of power goes above or below that level.

The scheme is open until 2025 and aid can be paid out for a maximum of 20 years.

The EC assessed the scheme under EU state aid rules and found that “the aid is necessary to further develop energy generation from renewable sources and to help Greece meet its environmental targets”,” said an EC media release.

It said the scheme had an “incentive effect” and that investments by benefitting companies “would not take place in the absence of the aid”.

“In particular, the level of aid cannot exceed the difference between the market price of electricity and the production costs, and will be set either through a competitive tendering procedure or through an administrative procedure measuring those production costs,” it added.

The news comes as trade body SolarPower Europe this week called on the EU to increase its renewable energy target to 45% by 2030, which it said would result in an extra 210GW of solar capacity installed and put the continent on a strong trajectory to reach climate neutrality by 2050.

Last month, European leaders called on the European Investment Bank (EIB) to investigate how to speed up investments in the energy transition to reduce the risk of future energy price crises. The EC has released a “toolbox” to address the short-term impact of price rises and strengthen resilience against future shocks.

Read Next

January 27, 2022
Major European solar developers have called on the European Union (EU) to develop a PV supply chain strategy to avoid cost increases and disruption to projects, with the group calling for 20GW of manufacturing capacity by 2030.
January 21, 2022
The European Commission has launched a public consultation on solar energy on the continent as it continues preparations to publish its solar strategy later this year.
PV Tech Premium
January 21, 2022
Greece is on track to accelerate solar deployment in the coming years, with the sector boosted by rising demand for renewable offtake agreements from corporations and clean energy policies from the EU, according to the general manager of Greek industrial group Mytilineos’s renewables business.
January 19, 2022
Energy major Shell has acquired 100% of PV project developer Solar-Konzept Italia (SKI), taking its solar development pipeline in Italy to around 2GW in the process.
January 11, 2022
Algeria has launched a tender process to support the deployment of solar PV projects in the country with a total capacity of 1GW.
January 6, 2022
Chile has published details of its latest power auction, set to take place later this year and contract 5,250GWh per annum for 15 years.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
February 23, 2022
London, UK
Solar Media Events
March 8, 2022
London, UK
Solar Media Events
March 23, 2022
Austin, Texas, USA
Solar Media Events
March 29, 2022
Lisbon, Portugal
Solar Media Events
April 25, 2022
Berlin, Germany