Solar Insolation in Greece:
~1,150-1,500 kWh/kWp/yr Yearly Average Solar yield
~3.8-5.2 kWh/m2/day Average Solar Radiation on collector surface
PV Capacity Installed in Greece
Drivers for Future Development
Government Structure and the Effect on Energy Policy
* Parliamentary Republic with 13 administrative areas called Peripheries. The Peripheries are subdivided into Prefectures (51 or 54 in total). There is also one autonomous region called “Mount Athos”. This region is a monastic state under Greek sovereignty. The administrative areas are represented in parliament.
* The beginning of RES entry into Greece was Law 1559/1985 “Regulation of issues of alternative forms of energy and specific issues of power production from conventional fuels and other provisions” (Government Gazette A 135) under which the PPC, leading the way with RES, installed 24 MW whereas local government organizations confined themselves to a meager level of 3 MW and the private sector was left out of the scene entirely. In spite of the small outcome, the effort showed the weaknesses and strengths of the sector and especially the initial failures paved the way for more mature implementations.
* The Regulatory Authority for Energy (RAE) was established by virtue of article 4 of Law 2773/1999 as an independent public authority entrusted with the monitoring and control of electricity market functioning and the delivery of opinions regarding the observance of the rules of genuine competition and the protection of customers. In addition, RAE formulates proposals to the Minister of Development with regard to the issue of power generation authorizations and thereafter monitors the implementation progress of the RES projects through quarterly reports and recommends the removal of those investors who exhibit unjustifiable slowness.
* Basic Laws introducing FiTs for PV: Law 3468/2006 & 3734/2009.
Note: Policies enacted in and/or effective for 2009 in italics.
Financial Solar Energy Incentives in Greece
Feed-in Tariffs for PV in Greece
Old FiT
- Effective June 2006 – December 2020
- Net
- 0.45 EUR/kWh (0.50 EUR/kWh on islands) for systems <100kW
- 0.40 EUR/kWh (0.45 EUR/kWh on islands) for systems >100kW
- Term: 20 years
- Rate adjusted for inflation @ 25% of previous year’s CPI
- No program cap
- Restriction: non-incorporated individuals unable to sell more than 20% of production
Small Rooftop PV FiT
- Effective 4 June 2009
- For Residential and Small Commercial
- Net FiT @ 0.55 EUR/kWh for rooftop systems <=10kW
- Term: 25 years
- Rate adjustors:
* 5% annual degression starting 2012; (for newcomers. Existing contracts will continue high FiTs as
per initial contract)
* Inflation adjusted annually @ 25% of previous year’s CPI
- No Cap
- Restrictions and Conditions
* A Residence must also generate part of its hot water by some other renewable source (e.g. solar
thermal)
* Mainland grid areas only (islands with autonomous grids waiting for a second phase)
* PV façades are not eligible for this new FiT. However, a PV façade on a commercial building can
still benefit from the old FIT (i.e. 0.45 EUR/kWh for 20 years).
- Note: A “small works permit” by the building authorities is the only license needed prior to installation.
* Commercial and Industrial PV FiT3
- Effective 15 January 2009 (via new law 3734/2009 for RES)
- Net
- Term: 20 years
- Rates:
- Rate adjustors:
- Degression of 10-12% beginning August 20105
- Inflation adjusted annually @ 25% of previous year’s CPI beginning 2011
- Funding: Surcharge for electricity consumers in proportion to consumption; current average surcharge @
- 0.30 EUR/MWh
Comment re Administrative Barriers:
* Administrative Barriers are described as “major”. Lengthy authorization procedures. No deadlines set for authorities. Too many authorities involved. Ambiguous land use rules.
* The Regulatory Authority on Energy (RAE) reportedly has a waiting list of 3.7 GW (~8000 applications). And as of November 2009, it has only approved 450 MW of systems above 150 kW for production permits (a second environmental impact permit is required before construction can start). RAE has stopped accepting applications for systems over 20 kW (for systems below no application and approval process is required).
Solar Grants & Rebates in Greece
* For commercial, amount depends on company size and zone
Net Metering / Net Billing
* None
Tax Incentives
* Tax Deduction: 20% capped at 700 EUR/system for small residential
* Tax Exemption: FiT Income – For small residential,
* Tax Exemption: FiT Income14 and VAT3 for small companies as long as they keep the income from PV as untaxed
reserves.
Loan Subsidies
* Commercial and Industrial: Subsidized interest rate to 300-400 units lower than normal commercial loans.
* The Credit Guarantee Fund of Small and Very Small Enterprises (TEMPME) is offering loan programs on-and-off.
Other Financial Incentives
* None
Regulatory Incentives for PV in Greece
Renewable Portfolio Standards
* Codified by Greek Law 3468/2006. Legally binding5
* Targets:
- 20.1% of gross electricity consumption by 2010
- 29% of net domestic power consumption by 2020.
* Solar Carve-out: at least 700MW by 2020 (500MW mainland, 200MW islands)13
* Ministry of Development says: Not on schedule to meet targets Interconnection
* Mandatory per Law 3468/2006
The country is also heavily dependant on oil imports to satisfy its energy needs. So far, wind energy has been the focus for Renewable Energy (RE) development. The current RE situation includes:
• Installed wind capacity 890 MW;
• Installed capacity of small hydro plants >140 MW;
• More than 20% of households use solar water heaters Energy Subsidies Renewable energy R&D annual funding: According to the European Photovoltaic Technology Platform’s 2005 information, “there is no specific budget for research in Renewable Energy Sources. Estimation gives an annual funding in the range of €2 to 3 million.”
According to IEA statistics, no total R&D energy budget has been published since 2002. The main funding source has been EU Community Framework projects. The Ministry of Development (MoD), recognizing the barrier that lack of credible research and information represents for RE development, has made a concerted effort to reorganize and improve the research and technology development system. The General Secretariat for Research and Technology within the MoD created Measure 3.3 to “improve the infrastructure and the scientific human resources of the country’s universities, enterprises and other R&T organizations and help them to develop into centers of excellence and increase their competitiveness at national and international levels.”Despite these efforts, lack of reliable data and information continues to be a major barrier to realizing the RE and PV targets.
Public Budget for PVin Greece
Current annual funding for PV R&D is estimated between 1 and 1.5 million Euros. PV program demonstration and deployment state support (in concert with the EU) amounts to about €3 million.
The 2002-2006 total PV project budget was € 38.3 M with € 17.30 M in public expenditure co-financed from the EU 3rd Community Support Framework, or about €4.2 million annually from Greece.
Energy Efficiency Measures in Greece
As an EU member state, Greece is bound by the EU Energy Performance of Buildings Directive. This directive was implemented in Greece in 2006 and requires the creation of standards for energy efficiency in new buildings based on the energy performance of the building. It is up to member states to decide the level of energy efficiency requirements, however these levels must be revised at least every 5 years and updated based on technological developments. Aspects of residential buildings that are taken into account include the building shell including air-tightness, heating and cooling installations, ventilation, the orientation and position of the building, passive solar systems and solar protection.
The Greek Government has also established regulations on the thermal insulation requirements of buildings. This is in conjunction with the established minimum energy standards for new and renovated buildings, energy audits, and energy labeling of buildings.
In recent years, under the framework of Greek development laws and the partially EU-funded operational programs, there have also been several investment subsidies available in Greece for energy efficiency-related projects.
From 2000, new public buildings, and from 2004, all public buildings, were required to have an energy certificate stating the energy performance of the building based on an energy audit.
