ELETAEN supports feed-in premiums for RES payment mechanism

ELETAEN, the Greek Wind Energy Association, has backed feed-in premiums in its proposals for the country’s new renewable energy sources (RES) support system required by both the bailout agreement and EU regulations for the gradual introduction, beginning in 2016, of a payment mechanism determining RES producer payments.

The association contended the Greek market lacks the required level of maturity for tenders. A feed-in premium system, through which producers would be paid amounts to be determined in the wholesale market, plus an extra fee, would be more suitable for local conditions, ELETAEN noted.

Tenders would prove devastating for small and medium-size RES producers as such mechanisms cater to major corporate groups, offering them advantages, the association stressed.

RES producers are presently compensated through a feed-in premium system offering tariffs based on the type of technology used, such as wind-energy, photovoltaics, and so on. These tariffs were recently drastically reduced.

The ELETAEN proposals noted that the new payment mechanism must also apply for large-sized facilities, measuring 3 MW or more, and must not be applied retroactively for existing units.

The association also highlighted the market penetration level of wind-energy facilities in Greece had fallen behind, reaching about 50 percent of RES targets set for 2014, and 28 percent of targets set for 2020, based on objectives set by local legislation ratified back in 2010.