The Ministry of Environment and Energy recently issued a decision on the formation of a working group which will prepare a proposal for the ministry on adopting the legal framework for the development and participation of electricity storage units in the electricity markets and the capacity mechanism. The decision appointed the working group members and provided that they may invite others to participate or provide an opinion.
Law 4759/2020 on the Modernisation of Spatial and Urban Planning Legislation and Other Provisions was recently enacted. For renewable energy source (RES) projects in particular, the implications of this new law are twofold as it includes provisions that modify the legal framework for the development and financing of RES projects and provisions which affect where such projects will be sited. This article examines the main regulatory changes introduced regarding the siting of such projects.
In December 2020 the new Licensing Code, which regulates renewable energy source (RES) production certificates, was published in the Official Journal. The code aims to implement the new RES licensing procedure and was published on the day on which the first submission round for the issuance of these certificates started. This last-minute regulation caused uncertainty for interested applicants regarding the application procedure and the required documents.
The Ministry of Environment and Energy recently 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.
A new law has amended the conditions for the approval of, and narrowed down the renewable energy source (RES) projects which may be accepted as, investments of strategic interest. Henceforth, only investments of at least €50 million in projects which use technological innovations to produce electricity from an RES and have a common connection point to the grid and investments of at least €100 million in projects with a common connection point to the grid may be approved as strategic investments.
In July 2020 Parliament enacted the Law for the Promotion of Electric Mobility which, among other things, introduced numerous tax and other incentives for the promotion of e-vehicles. Natural and legal persons are entitled to subventions from the purchase price of e-vehicles, depending on certain criteria. The aim of the law is to provide economic incentives to buyers to purchase e-vehicles and promote electric mobility.
In May and July 2020 the Regulatory Authority for Energy approved three five-year development plans for the extension of the natural gas distribution network: the natural gas network development plans for Thessalonica and Thessaly; the rest of Greece; and Attica. In September 2020 the Public Gas Distribution Networks launched two competitive procedures for the construction of networks in the East Macedonia and Thrace region, which attracted significant interest in Greece.
In July 2020 a ministerial decision of the Ministry of Environment and Energy was published in the Official Gazette. The decision encompasses the new transitional flexibility remuneration mechanism (ie, the fee paid to selected electricity providers for the provision of the flexibility service). The mechanism is now in force and will remain so until 31 March 2021 or the date of implementation of the long-term compensation mechanism regarding the electricity system's power sufficiency, whichever occurs sooner.
Following the completion of the Regulatory Energy Agency's (RAE's) recent consultation, the RAE designated 1 November 2020 as the effective date of operation of the intraday and day-ahead markets and the balancing market (electricity markets). Further, the RAE recently issued a series of delegated decisions in order to regulate access to the electricity markets, clearing members' obligations and risk management measures in both the electricity markets and the balancing market.
In May 2020 Law 4685/2020 on the modernisation and simplification of, among other things, renewable energy source (RES) production licensing was enacted. By virtue of Law 4722/2020, the next submission round for new applications for RES producer certificates has been scheduled for December 2020. Meanwhile, the Greek Regulatory Authority has been busy issuing RES producer certificates for which applications have been pending since before the enactment of Law 4685/2020.
Parliament recently passed a law modernising environmental legislation and harmonising Greek law with EU Directives 2018/844 and 2019/692. The law contains new legislative measures which will significantly amend, standardise and simplify the current licensing procedure for renewable energy power plants – particularly the procedure for obtaining a renewable energy source production licence and an environmental approval.
Greece recently adopted its first National Plan for Energy and Climate, which regulates all energy sectors. The plan defines Greece's energy and climate targets up until 2030, as well as priority policies and implementation measures which should help to both develop and reform the energy sector by 2050. The plan will also facilitate the shaping of the country's energy and climate strategy for the years 2030 to 2050.
Under the new law on the liberalisation of the energy market, the Public Natural Gas Company (DEPA) will be spun off into three distinct undertakings: DEPA Infrastructure, DEPA Commercial and DEPA International Projects. The privatisation tender is organised by the Hellenic Republic Asset Development Fund. Parties intending to participate in the tender are requested to meet various legal, financial and technical requirements.
Law 4643/2019 on the liberalisation of the Greek energy market, the modernisation of the Public Power Corporation, the privatisation of the Public Natural Gas Company and the support of the renewable energy sector was recently published in the Official Journal. The new legal provisions aim, among other things, to facilitate and expedite the licensing procedure for numerous power production applications already pending before the Regulatory Energy Agency.
Under the new law on the liberalisation of the energy market, the Public Natural Gas Company (DEPA) will be spun off into three distinct undertakings, two of which will be completely privatised. This transformation will significantly alter DEPA's unbundling and privatisation scheme, which was adopted in March 2019 (ie, before the elections and respective reconfigurations in Parliament and government).
The renewable energy sources (RES) sector of the Greek energy market is undergoing continuous and significant reform. Among other changes, the Hellenic Energy Exchange has commenced operations, RES producers now participate in the day-ahead market and the Greek islands' renewables sector has been expanded.
The minister of environment and energy recently amended the competitive procedures for determining operating state aid granted as feed-in premiums for 2019 and 2020. Further, the latest competitive procedures resulted in significant price reductions for photovoltaic (PV) and wind projects. However, owners of small PV plants have claimed that they have been disadvantaged by the merging of all PV plant categories into one.
In April and May 2019 solar and wind renewable energy systems producers will compete for the first time for operating state aid and a place in the Greek energy market in a joint competitive tender procedure organised by the Energy Regulatory Authority. Despite certain doubts, the market signs indicate that a significant number of players and capacities plan to participate in the upcoming joint competition.
A draft law on the further unbundling and privatisation of the public natural gas company DEPA was recently submitted to Parliament. The draft law proposes that DEPA be divided into two companies: DEPA Infrastructure and DEPA Trade. The main opposition to the draft law centres on the fact that the state will retain a 14% stake in DEPA Trade, which some have argued will allow the state to retain too much control and potentially veto strategic policy issues.
The second regular wind and photovoltaic (PV) state aid auction held in December 2018 resulted in the award of all of the capacities for two of the three categories of renewable energy system project, a significant (up to 26%) reduction in the reference prices compared with the initial reference prices and the cancellation of the auction for large PV projects by the Regulatory Energy Authority due to insufficient competition.