RES investors pressured by increased project development cost

Investors behind solar energy projects still in development are facing budget pressure as a result of a steep rise in equipment costs, prompting talks of increased tariffs for non-auction projects.

Price increases, compared to early 2021, have reached 35 percent for solar panels, 75 percent for AC electricity cables, 35 percent for DC cables, 20 percent for low and medium-voltage sub-stations, while the cost of metal bases has also risen.

Data presented recently by SPEF, the Hellenic Association of Photovoltaic Energy Producers, at a recent energy conference showed that the construction cost of a standard solar farm has increased by 15 to 20 percent, in line with figures presented by IEA, the International Energy Agency.

Wind energy projects face similar rises in cost, which has prompted the energy ministry to increase non-auction tariffs for new projects of up to 6 MW to 89 euros per MW/h from 72 euros per MW/h.