Plants

New regulation over participation of small RES plants in auctions – Commentary

On 27 December 2021, the minister of energy published a decision in the Official Gazette.(1) The decision determined the details of renewable energy source (RES) auctions, following the approval by the European Commission of the new Greek RES and high efficiency combined heat and power state aid scheme for the years 2021-2025.(2)

According to the decision, so-called “small RES plants” (namely, in general terms, photovoltaic (PV) solar plants of a capacity of less than one megawatt and wind plants of a capacity of less than six megawatts) may receive operational aid by participating in either scale and technology-specific auctions, and/or joint auctions. In other words, the window of opportunity for granting administratively determined operational aid (feed-in tariffs) to small RES plants is closing.

More specifically, starting December 2021 and until 31 December 2022, small RES plants must participate in auctions as set out below:

  • PV solar plants that have an installed capacity of between 500 kilowatts and one megawatt and do not belong to energy communities must participate in technology-specific auctions.
  • PV solar plants that have an installed capacity of less than 500 kilowatts, do not belong to energy communities and are not exempt from the obligation to participate in auctions according to article 7(3a) to (3g) of Law 4414/2016, must participate in in technology-specific auctions.
  • PV solar plants that belong to energy communities, have an installed capacity of less than one megawatt and are not exempt from the obligation to participate in auctions according to article 7(3a) to (3g) of Law 4414/2016, must participate in technology -specific auctions.
  • Wind plants that have a maximum production capacity of between 60 kilowatts and six megawatts, where the owner of such wind plant is not exempt from the obligation to participate in auctions according to article 7(3a) of Law 4414/2016 (notably, because they already own, directly or indirectly, two production licences of the same technology that are exempt from the obligation to participate in auctions), must participate solely in joint auctions.

Plants that are obliged to participate in technology-specific auctions as set out above may also participate in joint auctions held for larger RES projects.

Subsequently, from 1 January 2023 to 31 December 2025, small RES plants must participate in auctions as set out below:

  • PV solar plants that have an installed capacity of over one megawatt must participate in technology-specific auctions.
  • Wind plants that have a maximum production capacity of between 60 kilowatts and six megawatts must participate in technology-specific auctions.

The details and timing of the next auctions to take place in 2022 will be determined by a separate ministerial decision to follow.

For further information on this topic please contact Maria Ioannou at Rokas Law Firm by telephone (+30 210 361 6816) or email ([email protected]). The Rokas Law Firm website can be accessed at www.rokas.com.

Endnotes

(1) OJ 6250/B/27 December 2021.

(2) Commission Decision No. C(2021), 8651/24 November 2021, SA 60064 – (2021/N).

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