Fiscal and structural changes introduced to RES market
(Article by Maria Ioannou – Associate, published in the Energy & Natural Resources Newsletter of the ILO on February 8, 2021)
Introduction
In November 2020 the Ministry of Environment and Energy announced the adoption of fiscal and structural
measures aiming to:
- secure the adequacy of funds on the special account for financing the renewable energy source (RES)
projects operating in Greece; and - ensure the gradual adaptation of the RES industry to the recently launched operation of the electricity
target model.
Financing of special account
The current economic situation (including the implications of the COVID-19 pandemic) reflects negatively on
the financial viability of the special account established by virtue of Article 143 of Law 4001/2011 to finance
RES projects, which saw in 2020 a deficit of approximately €290 million and is therefore deemed to be in need
of regulatory intervention in order to secure financial flows towards RES producers without burdening
excessively certain market participants in favour of others. For this reason, a ministerial decision (OJ B΄
5901/31.12.2020) has been issued by the minister of environment and energy, according to which, with regard
to 2020, 78% (instead of 65%) of the revenue generated from the auctioning of greenhouse emission allowances
will be directed to the financing of said special account.
Further financing of the special account is to take place through:
- the one-off fee paid for this purpose by applicants for RES production certificates according to Article 17 of
Law 4685/2020 (OJ A’ 92/7.5.2020); - a one-off contribution amounting to 6% of the annual turnover for 2020, imposed by virtue of Article 157
of Law 4759/2020 (OJ A’ 245/9.12.2020) on all types of RES producer operating under a feed-in-tariff
scheme prior to 31 December 2015; - a one-off fee in the amount of €2/MWh imposed by virtue of Article 157 of Law 4759/2020 on electricity
providers (the total amount burdening the providers will be equal to the total amount paid by the RES
producers according to the second bullet point); - a special green tax of €30/kL imposed by virtue of Article 158 of Law 4759/2020 starting in 2021 on diesel
fuel; - estimated cutbacks on other imposed fees due to the gradual connection of the Greek islands to the
national grid; - transitional financing from the EU recovery plan (pending approval); and
- fees paid by high and medium-voltage consumers (possibly with the exception of the hotel industry).
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