EU Commission approves Greece’s EUR 2.3 bn renewable energy electricity scheme

Greece Independence Day (supply: flickr/ John D. Carnessiotis, inventive commons)

As a part of a now authorized renewable power strengthen scheme, Greece can now strengthen geothermal energy tasks thru direct awards with regardless that some tendering procedures.

The Eu Fee has authorized, underneath EU State help laws, a EUR 2.27 billion Greek scheme for the manufacturing of electrical energy from renewable resources and top potency mixed warmth and tool (CHP). The measure will assist Greece achieve its renewable power goals, with out unduly distorting pageant, and can give a contribution to the brand new Eu purpose of accomplishing local weather neutrality via 2050.

Government Vice-President Margrethe Vestager, answerable for pageant coverage, stated: “This Greek scheme will supply essential strengthen to quite a lot of applied sciences producing electrical energy from renewable power resources, consistent with EU laws. It is going to strengthen the goals of the Inexperienced Deal, contributing to considerable discounts in greenhouse emissions. The collection of the beneficiaries thru a aggressive bidding procedure for the principle supported applied sciences will be sure that the most productive worth for taxpayers’ cash and can minimise imaginable distortions of pageant.”

The Greek scheme

Greece notified the Fee of its goal to introduce a brand new scheme to strengthen electrical energy constructed from more than a few renewable power resources, specifically onshore wind, photovoltaic, wind and photovoltaic with garage, biogas, biomass, landfill gasoline, hydroelectric energy, concentrated solar energy and geothermal energy crops. The scheme may also strengthen top potency mixed warmth and tool.

For each onshore wind and sun installations, the help will probably be awarded thru a joint aggressive tendering process, organised via Greece to extend pageant and scale back the price of renewable power for Greek shoppers, each at the mainland and at the islands. If a minimal era diversification isn’t attained out of the joint sun and onshore wind auctions, Greece reserves the chance to release separate auctions for onshore wind and sun to handle the era shortfall. Greece plans additionally to finance tasks situated outdoor Greece.

Enhance to the manufacturing of electrical energy from different renewable power applied sciences will probably be immediately awarded, topic to positive thresholds over which aggressive tendering procedures will practice.

With admire to strengthen for electrical energy manufacturing that will probably be topic to an public sale, the help will take the type of a two-way contract-for-difference top rate. Below this fashion, the place the electrical energy worth is beneath a reference worth established according to an public sale, the State can pay the renewable electrical energy manufacturer the adaptation between the real electrical energy worth and the reference one. Alternatively, the place the electrical energy worth is above the reference worth, the electrical energy manufacturer can pay the State the adaptation between the real electrical energy worth and the reference one. This promises renewable power manufacturers long-term worth balance, serving to them to make the essential investments, whilst restricting the price for the State.

With admire to assist for strengthen to electrical energy manufacturing from applied sciences exempted from auctions, a equivalent mechanism will practice, apart from that the reference worth will probably be aligned with the manufacturing prices of the era in query.

The measure has a complete most finances of roughly EUR 2.27 billion and targets to strengthen round 4.2 GW of put in capability. The scheme is open till 2025 and help may also be paid out for a most of twenty years.

The Fee assessed the scheme underneath EU State help laws, specifically the 2014 Guidelines on State aid for environmental protection and energy and showed that the scheme is consistent with EU State help laws. It is going to facilitate the advance of renewable electrical energy manufacturing from more than a few applied sciences in Greece and scale back greenhouse gasoline emissions, consistent with the European Green Deal, and with out unduly distorting pageant within the Unmarried Marketplace.

The scheme builds at the earlier Greek support scheme for the production of electricity from renewable energy sources and high efficiency cogeneration (SA.44666) and Greek auction scheme for renewable electricity (SA.48143).

Supply: EU Commission

Author: Ronald Scott