The country’s new support system for renewable energy sources (RES), which, based on the bailout agreement, is expected by the end of this year and must be implemented in 2016, a few months beyond previous dates set, is currently being prepared.

The plan will detail the methods and levels of payments for RES producers. The new model, to replace a current framework based on feed-in tariffs, is currently being worked on by officials at the Production Reconstruction, Environment and Energy Ministry, RAE, the Regulatory Authority for Energy, and German consulting firm GIZ.

The work being conducted is based on guidelines provided by the European Commission in June, 2014 for the EU’s environmental and energy sectors, while also taking into account the overall experience of various systems implemented in other European countries.

The challenge faced by officials preparing Greece’s new model is to ensure favourable payments for new RES projects that may generate investor interest, offer sector sustainability and environmental protection, as well as create jobs. The country’s photovoltaic sector, for example, is currently in the doldrums.

According to energypress sources, the new RES plan is headed towards a combination of feed-in premiums and auctions for green energy supply, which is in line with EU guidelines. They specify that feed-in tariffs are permitted for projects with capacities of up to 500 kW. As of January 1, 2016, feed-in premiums will be permitted for projects between 500 kW and 1 MW. As of January 1, 2017, projects with capacities of over 1 MW will be rewarded through an auction process. In the lead-up, during 2015 and 2016, at least 5 percent of new RES capacity will need to be compensated through an auction process.