New law regulating agreements on feed-in-premiums, hybrid plants, connection to grid and direct lines
(Article by Mira Todorovic Symeonides, Partner, published in the Energy & Natural Resources Newsletter of the ILO on Jan 17, 2022)
On 20 October 2021, Law No. 4843/2021 regulating numerous issues about energy markets in Greece was published in the
Official
Journal.(1) Among other issues, it amends several provisions of the Law on Energy Communities, but also regulates certain issues
regarding agreements on feed-in-premiums (FiP), hybrid plants and connection to the grid.
Agreements on FiP
The Law provides deadlines for the signing of agreements on FiP between renewable energy sources (RES) producers that received
reference prices in RES auctions with the Greek Operator of RES and Guarantees of Origin (DAPEEP). The deadlines are as follows:
within four months from publication of the auction results, for all auctions performed after 1 January 2021; and
until 28 February 2022 for all auctions performed before 1 January 2021.
While RES producers are obliged to submit the respective applications to DAPEEP by the above deadlines (otherwise their respective
bank guarantees for participation in the auctions would be forfeited), DAPEEP is obliged to sign the respective agreements within 10 days
from receiving the applications. If the RES producers selected in the auctions after 1 January 2021 fail to apply to DAPEEP and sign the
FiP agreements within the above deadlines, they will be replaced with the next producer on the lists of the RES auctions, which are
provided by the Regulatory Authority for Energy (RAE) and will have to pay a penalty for four years. The amount will be the difference
between the reference price achieved in the auction and the market price for their electricity sold on the Energy Exchange. This penalty is
in addition to the forfeiture of their respective bank guarantees. Should they fail to pay the above penalty within four months, they will be
deleted from the registers of the Energy Exchange, the Greek transmission system operator (ADMIE) and the joint load representative, and
will not be permitted to participate, directly or indirectly, in the electricity markets, or through bilateral agreements.
Hybrid plants
The Law further authorises the Ministry of Environment and Energy to regulate the framework of support for hybrid plants of production of
electricity on the non-interconnected islands, the procedure for granting state aid, the issuance of production licences, offers for
connection to the grid and any other issue. The same decision may regulate the above framework after the connection of each island to
the interconnected system.
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