New law aims to simplify second phrase of licensing procedures for RES plants
(Article by Mira Todorovic Symeonides, Partner, and Evangelia Gkana, Legal Trainee published in the Energy & Natural Resources Newsletter of the ILO on October 3, 2022)
Introduction
On 4 July 2022, a new law on the modernisation of the licensing procedure for renewable energy source (RES) plants was enacted (Law No. 4951/2022).(1) The law regulates the second phase of the licensing of RES plants, which begins with the submission of an application to the competent grid operator for granting of a final offer for connection to the grid and ends with the issuance of the operating licence.
The first phase of the RES licensing procedure was previously simplified by Law No. 4685/2020,(2) which regulates the issuance of RES producers’ certificates and RES special projects producers’ certificates and implemented a simplified procedure for environmental approvals.
Both laws aim to:
- simplify the licensing procedure;
- reduce the number of supporting documents required at each licensing stage;
- impose reasonable deadlines for the licensing process; and
- digitalise the licensing procedures.
Final offer for connection to grid
Prospective project holders, after receiving environmental approvals, should submit an application to the respective grid operator (ie, the
electricity transmission system operator (ADMIE) or the electricity distribution network operator) for the granting of a final offer for
connection to the grid, together with a letter of guarantee(3) in the amount of:
- €42 per kilowatt for the part of the capacity up to one megawatt;
- €21 per kilowatt for the part of the capacity from one to 10 megawatts;
- €14 per kilowatt for the part of the capacity from 10 to 100 megawatts; and
- €7 per kilowatt for the part of the capacity above 100 megawatts.
The application may be submitted jointly by several holders of an RES producers certificate to ADMIE if the total production capacity of
all the plants involved exceeds eight megawatts.
For pending applications submitted to the respective grid operator before the enactment of this law, the guarantee should be submitted
within four months of the law coming into force (ie, before 4 October 2022).
Different deadlines apply to the plants which determined the power purchase reference price for the operational state aid in competitive
procedures organised by the Regulatory Authority for Energy, in compliance with the law regulating these procedures.
The amount of the above guarantee will be reduced to one quarter following the signing and coming into force of the agreement on
connection to the grid, and will be returned upon:
- the beginning of operation of the plant,
- the submission of a statement of readiness (confirming that the construction of the plant has been finalised, although it may not beconnected due to the fact that the connection works have not been finalised); or
- the undertaking of actions for connection to the grid.
The priority of applications for connection to the grid(4) was, in compliance with this law, provided in ministerial decision No.
84014/7123/2022,(5) which also regulates that applicants should submit an additional bank guarantee (called a “priority guarantee”) in the
amount of €100,000 per megawatt together with the acceptance of the binding offer. Following the acceptance of the binding offer, the
holder of an RES producers certificate or special projects RES producers certificate (collectively, certificate holders) and the respective
grid operator conclude the agreement on connection to the grid.
Until now, only one bank guarantee was required and it would be submitted with the acceptance of the binding offer.
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