Forced to operate amid stifling conditions prompted by capital controls imposed in Greece in the summer, renewable energy source (RES) sector entrepreneurs, presently unable to make progress on new investments and facing permit deadlines, have asked the government to stop the clock and resume the count once the currently abnormal banking restrictions have ended.
RES investors are troubled by major liquidity problems, making it impossible for them to import equipment needed to either start or continue developing projects. Wind-energy projects have been granted two-year permits for completion. Under the current regulations, these permits would cease being valid if projects are not finalized within the allotted time periods. In addition, if permits are nullified, their owners will not have the right to reapply for renewals.
A large number of investors currently find themselves trapped. The capacity of projects affected is estimated to amount to 1,000 MW.
On another front, RES officials, as previously reported by energypress, have called for an acceleration of inspections by state authorities on projects either completed or in progress in an effort to swiften highly delayed subsidy payments, even if just partial. The subsidies were promised through an older “development law” offering the RES sector investment incentives.
In some cases, especially in the wind-energy sub-sector, projects have been completed and connected to the grid but their investors have neither received subsidies nor had guarantees returned. These guarantees are binding considerable capital amounts.
Elsewhere, work on some RES projects had begun but was then abandoned as a result of the state’s failure to provide the subsidies investors had anticipated.
State authorities claim subsidies have not been paid out because the required inspections have yet to take place. However, it is now widely suspected the state is unable to provide the promised amounts.