Greece’s decarbonization effort will, for the time being, need to rely on the National Strategic Reference Framework for EU subsidy support until member state objections and disagreements over the pandemic-related Recovery Fund are resolved to enable its launch.
The European Commission and certain member states from eastern Europe, including Hungary and Poland, appear set for a new round of recovery fund negotiations following objections raised over terms set in July.
More affluent member states such as the Netherlands and Finland have made milder complaints, noting the summer agreement’s handout plan is too lenient.
A January 1 start for the recovery plan appears increasingly unlikely as a result of these disputes.
A delay would impact anticipated recovery-fund financial support for pivotal decarbonization efforts in Greece, including related public road projects. Company-funded projects such as solar energy farms to be developed by power utility PPC and Hellenic Petroleum ELPE will not be impacted.
In a worst-case scenario concerning the recovery fund’s date of launch, projects will need to entirely depend on the new National Strategic Reference Framework for subsidy support through a transitional program covering 2021 to 2023, well-informed sources told energypress.
Projects that would be eligible for subsidy support through this transitional program are budgeted at a total of 250 million euros, according to an initial estimate.
They include PPC and ELPE solar energy farm plans; PPC’s Ptolemaida V power station, currently under construction; as well as PPC’s post-lignite investments.