Factsheet: Feed-in tariff scheme for RES-electricity

Feed-in tariff scheme for RES-electricity

Key Information
Description: 
The RES-electricity support scheme in Greece was originally established by Law 2244/94 and retained by Law 2773/99, which established the framework for the liberalization of the Greek energy market. Following Directive 2001/77/EU, the basis of the current feed-in tariff system was set by Law 3468/2006. The law distinguished the feed-in tariff level based on the RESe technology and whether the electricity was supplied to the interconnected grid or the non-interconnected islands. A mechanism for price adjustment of the feed-in tariffs was foreseen and the latest update took place in October 2008. Despite increases in the installed capacity of RESe, mostly wind power, the level of the feed-in tariffs was considered unattractive by many investors; in addition, the bureaucratic procedure for acquiring installation and operating licences for RESe plants was considered cumbersome. In order to stimulate further investments in renewable energy units, which are a strategic priority of the administration of that time, and also to reach the national goals set by Directive 2009/28/EU, major updates to the feed-in tariff scheme and the overall legislation concerning RESe, including a simplification of the licencing procedure, was brought about by Law 3851/2010, which was voted in June 2010. Law 3851/2010 retained the distinction between interconnected and non-interconnected grid only for few technology options; in most cases, the level of the feed-in tariff was determined by the installed capacity of the power plant. For biomass power plants the feed-in tariff varied from 150 to 200 €/MWhe. If the investment for the construction of the power plant was not supported by public funds, then the feed-in tariff is increased by 15% for biomass power generation (cases (i) to (if)) and by 20% for all other RES sources. The duration of the supply contract between the RESe producer and the grid operator was set to 20 years. The high feed-in tariffs for solar resulted in a large capacity increase of photovoltaics; for financial reasons, the Ministry revised the feed-in tariff system in April 2014 (Law 4254/2014).
Goal/Aim: 
Support renewable electricity production

Sector/Topic targeted:

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