RAE, the Regulatory Authority for Energy, has forwarded a proposal to the energy ministry detailing the terms and formula of a delay clause for the grid interconnection projects concerning the country’s non-interconnected islands, which, if triggered, would lead to annual penalties for promoters of as much as 10 percent of each project’s budget.
If, however, project promoters manage to gradually catch up on construction delays and their interconnections end up being electrified on time, then any penalty amounts paid during the intermediate period would be returned, according to the RAE proposal.
The proposed penalty amounts have been calculated to represent percentages of public service compensation (YKO) costs concerning islands being affected by grid interconnection project delays.
This penalty system is also seen as a warning to the project promoters of Crete’s major-scale interconnection, to link the island with Athens. Swift action and work will be needed if its 2022 completion date is to be achieved.
Previous island interconnection projects in Greece have moved at a notoriously slow pace, prompting RAE and the energy ministry to seek increased protection against any further delays for prospective projects.