New support scheme for RES and CHP producers
(Article by Mira Todorovic Symeonides and Stefania Chatzichristofi, published in the Energy & Natural Resources Newsletter of the ILO on November 14, 2016)
Introduction
In August 2016 Law 4414/2016 (under the title New Support Scheme for Power Plants Using
Renewable Energy Sources 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) was published in the Government Gazette (A’149/09.08.2016). The law aims to:
l bring the existing support mechanism for electricity produced from renewable resources
(RES) and co-generated heat and power (CHP) into line with the EU Guidelines on State Aid for
Environmental Protection and Energy 2014-2020;
l address the insufficient funds in the RES account and the subsequent delays in paying RES
electricity and CHP producers;
l establish a scheme which ensures the integration of RES electricity and CHP with the
interconnected system; and
l develop a sustainable investment environment for the future.
Τhe reform of the RES support scheme is one of Greece’s commitments to its international lenders
and it should have come into force at the beginning of 2016. Due to a delay in the law’s adoption, the
new scheme will be implemented retroactively from January 1 2016. Despite the delayed start,
activities are being undertaken to enable the scheme’s implementation, such as the two pilot
programmes for photovoltaics (PV) producers which are planned for the last quarter of 2016.
Operational support scheme
The operational support scheme for RES and CHP plants introduces feed-in premiums (FiPs) to be
paid above the electricity market price, which will be calculated on the basis of a competitive bidding
procedure. The FiP scheme should replace the existing feed-in tariff scheme.
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