First (regular) solar and wind competitive procedures projects initiated
(Article by Mira Todorovic Symeonides, published in the Energy & Natural Resources Newsletter of the ILO on May 21, 2018)
Introduction
Greece began reorganising its renewable energy system (RES) state aid scheme in 2016 by enacting the New Aid Scheme for Power Plants Using RES and Co–generation of Electricity and High–Efficiency Heat – Provisions on Legal and Operational Unbundling in the Supply and Distribution of Natural Gas and Other Provisions (Law 4414/2016, OJ B’149/09.08.2018). The law provides that from January 2016, RES state aid will be granted in the form of operating aid, either as:
- feed–in–premiums (FiPs), which would essentially be contracts for difference; or
- in exceptional cases, as feed–in–tariffs (FiTs), which will be determined either by law or on a
per–project basis based on a competitive bidding procedure.
FiPs will be calculated as the difference between the special market price and the applicable reference price, which is determined either by law or on a per–project basis based on a competitive bidding procedure. RES generators will profit by selling the electricity on the market. However, if the special market price is below the reference price, RES generators will also receive a premium to cover the difference. If the special market price is above the respective reference price, the excess will be refunded by the generator to the special account kept by the market operator, LAGIE. Small–scale projects will continue to be paid by FiTs. The same applies to the non–interconnected islands, due to the fact that no wholesale markets exist on most of these islands.
Ministerial decisions regulating competitive procedures
The minister of environment and energy has provided the legal framework for implementing the law and organising the competitive procedures to determine the reference prices for certain projects receiving operating aid. According to Decision APEEK/A/F1/oik 184573, OJ B4488/19.12.2017, as amended by Decision
APEEK/A/F1/oik 172858, OJ Β‘1263/10.04.2018, the following RES projects may receive operating aid, in amounts which will be determined in the competitive procedures:
- wind plants with a maximum production capacity over 3 megawatts (MW) and below or equal to 50 MW;
- wind plants with a maximum production capacity over 50 MW;
- photovoltaic (PV) plants with an installed capacity equal to or above 500 kilowatts (kW) and below or equal to 1 MW;
- PV plants with an installed capacity above 1 MW and below or equal to 20 MW;
- PV plants with an installed capacity above 20 MW;
- groups of at least two wind plants which have a joint connection point to the grid and a maximum production capacity above 50 MW;
- groups of at least two PV plants which have a joint connection point to the grid and an installed capacity above 20 MW; and
- groups of at least one wind and one PV plant which have a joint connection point to the grid and a maximum production capacity above 50 MW.
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