Greek industrial players are expressing strong reservations about the prospects of green power purchase agreements (PPAs), which have been delayed by well over a year, their terms now considered out of touch.

Industry’s concerns have arisen as the energy ministry seeks to find a solution that would unblock the development of 2.5 GW in solar energy projects under contract for their supply to industrial consumers.

When talks had first begun on the introduction of PPAs, the now-delayed associated RES projects were expected to be operational in 2025. But it now appears they will not be ready to operate until 2027.

Ten-year PPAs already signed offer fixed energy prices to industrial players, who agreed on these deals anticipating the considerable energy-cost benefits of the first few years would eventually fade out towards the end of their ten-year period.

Industry deems latest PPA price levels on offer as excessive, greatly increasing the entrepreneurial risk involved.

EVIKEN, the Association of Industrial Energy Consumers, in a letter forwarded to energy minister Thodoris Skylakakis, has called for measures that would help industrial producers establish PPAs. The association has recommended cutting the duration of new PPAs to two years from ten years at present.