– || The first ever competition for RES projects in Greece was completed – A new era for Greece’s RES market has just begun ||-


In accordance with the new Support Scheme for RES Projects (L.4414/2016) in Greece, the first ever tendering/bidding competitive process for RES (PV) projects was carried out the day before yesterday.

Particularly, the Regulatory Authority for Energy (RAE) of Greece announced the winners of the country’s first ever auction for RES projects, which took place on December 12, 2016, awarding a cumulative capacity of 40.0 MW to PV projects. The first (pilot) tender was solely aimed at PV technology. Specifically, there were two bidding categories, the following:

  • Category I – Tendered Power: 4.8 MW (PV projects up to 1.0 MW each)
  • Category II – Tendered Power: 35.2 MW (PV projects between 1.0 MW and 10.0 MW – 10.0 MW was the upper limit for each participant)

During the tendering system (competitions) each producer needed to bid (a particular price) in order to provide the production to market operator (Operator of Electricity Market/OEM or LAGIE) under a competitive process. The said process was executed under a tendering system of reverse auctions.

The maximum allowable bid price in the frames of the competitions was set at €94.00/MWh for PV projects that are obliged to obtain a Production License (i.e. for Projects with capacity over 1.0 MWp up to 10.0 MWp) and €104.00/MWh for PV projects that are exempted from the issuance of Production License (i.e. for Projects with capacity between 500 kWp and 1.0 MWp).

According to Greece’s new policy framework for RES projects, the winning projects will be given a variable premium, on top of the standard market price for the generated electricity. The amount of the premium will depend on certain market variables (e.g. the system’s marginal price) and the tariff set via the pilot tender. The feed-in premium will be valid for 20 years (duration of the Operating Aid Contract with LAGIE).

The successful bids in the first category ranged between €94.97 and €104.00 per MWh and have a combined capacity of 4.8 MW. The main share of the PV capacity awarded came in the second category, where winning bids ranged between €79.97 and €88.00 per MWh for a cumulative capacity of 35.2 MW.

Participating bidders who secured capacities for PV projects included ELPE Renewables, the Mouratoglou Group, Juwi Hellas and Aten.

For the PV projects that were selected through the pilot competitive process the activation of the connection to the grid will have to take place:

  • Within 18 months from the final result of the competitive process for PV stations ≤1 MWp (1st Category),
  • Within 24 months from the final result of the competitive process for PV stations >1 MWp (2nd Category).

According to the market participants the first competition for RES (PV) projects in Greece was very successful. The intensive competition (during the bidding process) drove prices down to levels of about 15% below the starting price, however the final price deemed as a satisfactory level for investors.

Based on the abovementioned tendering process the 1st competition for Wind Projects will be carried out in Greece within 2017 (probably in the 2nd semester of the year).

According to initial indications more and more interested companies is going to invest in the highly promising RES market in Greece from 2017 onwards.

[!] Invest in the future by investing in the highly promising Greek RES market [!]



About Christos Ghikas

Financial Analyst/Investment Consultant. Strongly interested in Capital/Financial Markets, RES/Energy Project Portfolio Management, Investment and Population Analysis (Economics/Demographics). Ι state that it is better to fight for something than live for nothing. Therefore, life to me is a perpetual fight... Personal Web Profile: http://about.me/ghikaschristos, Personal E-mail: c.ghikas@gmail.com

Posted on December 14, 2016, in Greek Economy and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink. Leave a comment.

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