Investors react to second letter of guarantee needed for RES pilot tender

Prospective investors have reacted negatively to a call for follow-up letters of guarantee to participate in a pilot tender offering at least 40 MW for the installation of new PV systems. Interested parties were also required to forward letters of guarantee to accept the procedure’s connection conditions.

Certain investors, in comments offered to energypress, admitted that a protective clause is needed in the event that bidders who have secured RES capacities through the auction procedure fail to actualize their respective projects. However, the investors also pointed out that the additional letter of guarantee being demanded by RAE, the Regulatory Authority for Energy, for the pilot tender is unfair as it is the second being requested for the same investment.

The initial letters of guarantee requested by the authority were submitted by interested parties just days ago.

The demand for an additional letter of guarantee has upset the investment plans of several prospective bidders who argue that they would not have provided the first letters of gaurentee had they known a second would be required.

Having letters of guarantee issued by Greek banks is no longer a simple process as corresponding amounts need to be deposited into bank accounts, which can affect the financial planning of enterprises.

Companies now find themselves in a dilemma as they need to decide whether to provide additional second letters of guarantee or sacrifice the initial ones submitted.