Net-metering, roof-mounted PV subsidies ending early May

The energy ministry plans to place energy RES self-consumption under a net-billing framework through a forthcoming bill that will include an amendment abolishing net-metering and prematurely ending “PV Stegi”, a subsidy program for roof-mounted solar panel installations, sources have informed.

The legislative revision, sources added, is expected to be ratified around late April, meaning that net-metering will be abolished by early May, along with the “PV Stegi” subsidy program that had been planned to accept applications until June 30.

Market players, including SEF, the Hellenic Association of Photovoltaic Companies, have already expressed concerns about this prospect, warning it would severely impact growth in the sector.

The ministry’s approach, sources noted, is based on objections raised in the past by the European Commission concerning net-metering as well as its resulting increased cost for energy suppliers.

Brussels considers net-billing to be the most appropriate formula for self-consumption. The European Commission has raised objections against “PV Stegi” subsidy program for roof-mounted solar panels, noting the program has been  subsidizing a spread of net-metering in the household sector.

Under the new rules, farmers will be an exception as both net-metering and net-billing systems will continue to apply for small-scale solar systems inducted into a forthcoming “PVs on farmland” subsidy program supporting PV installations by farmers seeking to meet their energy needs through self-production.

PV systems with a capacity of up to 30 KW will be regulated under a net-metering system, while photovoltaic systems with capacities ranging from 31 to 50 KW will be regulated under the net-billing system, energypress sources informed.

Both net-metering and net-billing compensate solar-system owners for transferring electricity to the grid when their panels overproduce, but the ways the two systems compensate differs.

Net metering credits equal the retail electricity rate paid by customers for electricity. On the contrary, net billing credits equal the wholesale rate electricity companies pay for electricity.

More favorable operating terms for “PVs on Farmland”

The energy ministry is planning more favorable operating terms for small-scale solar systems inducted into a “PVs on farmland” subsidy program supporting PV installations by farmers seeking to meet their energy needs through self-production.

A 50-KW capacity limit has been decided on for PV investments included in this subsidy program, whose terms have been finalized and are set to be officially announced in the first half of April.

Distribution network operator DEDDIE/HEDNO will then launch an online platform accepting applications for the “PVs on farmland” subsidy program, to make available a total of 30 million euros at a subsidy rate of 40 percent, regardless of system capacity.

Farmers will be able to submit applications for the subsidy program without having previously signed connection term agreements with the operator.

PV systems with a capacity of up to 30 KW will be regulated under a net-metering system, while photovoltaic systems with capacities ranging from 31 to 50 KW will be regulated under the net-billing system, energypress sources informed.

Farmers planning smaller PV systems of up to 10 KW will be given priority in the processing of applications. Between 2,000 and 3,000 applications are expected to be approved.

 

Bill on connection-term priority for PPAs headed to Parliament

A legislative revision promising connection-term priority to RES projects whose output is  intended for long-term PPAs with industrial and agricultural consumers is ready and set to be submitted to Parliament, possibly even today.

The revision is expected to be attached to a finance ministry bill concerning a 15 percent minimum tax rate on multinationals, expected to be voted on early next week.

The government’s decision to attach the energy-related legislative revision to a bill that does not concern the energy sector highlights its urgency to push ahead with a plan  offering support to the agricultural and industrial sectors, lower-cost electricity being a key part of this effort.

Though the legislative revision covering connection-term priority will not contain any specific information on capacity-related figures – this will be specified through an ensuing ministerial decision – it is expected to facilitate roughly 1,300 MW in PV projects that have established PPAs with agricultural and industrial consumers, 700 MW for the former and 600 MW for the latter.

Favorable farming power-bill terms good news for PPC

A government plan offering farmers extremely favorable terms for long-term, installment-based settlement of overdue amounts concerning electricity consumption comes as good news for the power utility PPC, owed an estimated 100 million euros by farmers.

As part of its effort to appease protesting farmers in Greece, the government is offering interest-free, installment-based settlement of overdue electricity-bill amounts over ten-year periods.

One in three farmers in Greece is behind on electricity-bill payments, while, in some areas, well over 50 percent of farmers are not meeting their energy-cost obligations.

In the Dodecanese Islands, 82 percent of farmers face overdue electricity bills, Grevena, in the country’s north, follows with 77 percent, the percentage in Drama, also north, is 67 percent, while 59 percent of farmers on the Ionian island of Corfu are not keeping up with electricity-bill payments.

Worse still, only 10 percent of farmers carrying energy debt are accepting installment-based, payback arrangements offered by PPC with terms that are far more favorable than those offered to consumers of other categories.

In addition, roughly half of the farmers who do accept these installment-based, payback arrangements offered by PPC end up defaulting after having serviced an average of four monthly installments.

These defaulters eventually end up reapplying for new installment-based, payback arrangements before defaulting again, transforming the process into an ordeal.

 

Community Agrivoltaics: A new application of social and climate justice

The recent demonstrations of farmers, from Poland and France to Greece, bring back to the public debate the urgent need to (re)develop our agricultural policy. From the European Common Agricultural Policy (CAP), and the imbalanced farmer-agro-industry power relations in supply chains, the issue is multifaceted. Let us focus on one aspect of it: access to cheap – and clean – energy. The dependence of agricultural production on fossil fuels (see motorization, equipment, irrigation) puts a significant burden on the budget of the farmers themselves, and also leads to revaluations (see the ‘fossilflation’ phenomenon) in the supply chain – with consumers as the ultimate ‘victims’.

Subsidies for solar projects by farmers, a policy with years of implementation in Greece and Europe, can provide an additional income stream, while at the same time significantly alleviating a farmer’s operating costs. Supporting farmers to engage in RES projects (e.g., photovoltaics or biomass) is therefore a clear win-win solution for society and the climate. But could we move the equation one step further?

Agrivoltaics: combined and more efficient use of space

Meeting national (and EU) climate targets will require massive investment in new renewable energy systems. In particular, the Revised Renewable Energy Directive provides for a significant increase in the share of renewables in the energy system, while establishing “Renewable Energy Acceleration Areas” (Article 15c). At the same time, the Nature Restoration Regulation provides for the protection and restoration of 20% of the land and seas of each Member State. As a result, the next decade will be defined by increasingly intense conflicts and disputes over the use of an otherwise finite resource: land. Research by the European Commission’s Joint Research Center has shown that if we covered 1% of Europe’s agricultural land with agrivoltaics, we could produce 1TW of energy – thus exceeding the EU targets for solar energy by 2030, without compromising agricultural production.

Widely used in countries such as France, Spain and Germany, the term “agrivoltaics” describes the combined production of energy and food on a specific plot of land. The benefits are numerous: some crops (e.g., tomatoes and potatoes) perform better in lower temperature and shade conditions, which is what the installation of elevated photovoltaic systems can provide. Transpiration from the crops meanwhile helps to reduce the temperature of the photovoltaics, thus increasing their efficiency. The panels can be moved dynamically, for example to allow rain to pass through to the ground thus watering the crops, or horizontally to reduce hail damage or to regulate the soil temperature depending on the weather. The combined use of land also benefits biodiversity.

Some practical applications in Greece

Two interesting initiatives come to combine technological innovation with social innovation and highlight through practical applications a new paradigm of land use, aiming at strengthening the agri-food sector and empowering local rural communities.

In Ioannina, the first urban community agrι-photovoltaic project in Greece is already being planned and a replication will follow in Skopje, North Macedonia. It is an urban vegetable garden that will be combined with the production of clean energy from special photovoltaic panels. The pilot will be coordinated by the local energy community CommonEn and the design will follow participatory procedures with the involvement of citizens and local stakeholders. The project is primarily funded by the German Federal Foundation for Environment (DBU) and co-funded by the Onassis Foundation. In parallel, the project is supported by the Municipality of Ioannina and the Solar Hub project.

The Solar Hub project is a Greek-Turkish Excellence Hub that aims to promote solar energy technologies, with a focus on agrivoltaic and solar thermal systems and their applications in the agri-food sector. The Greek ecosystem, coordinated by the Centre for Research & Technology Hellas (CERTH), promotes networking, solution development, training, and knowledge transfer activities.

A Holistic Approach

At the state level, the ongoing revision of the National Energy and Climate Plans (NECPs) across Europe, as well as the upcoming law on agri-photovoltaics (in Greece), should foresee support measures for such projects developed specifically by energy communities and other collective schemes. Promoting social and technological innovation can provide incentives, especially for young people, to return (or remain) in rural areas, thus also contributing to reversing population desertification.

CommonEn’s project in Ioannina will be small in size but large in symbolic value. It reflects the view that environmental solutions must include elements of social and economic justice – only then will they be socially accepted. Solutions and policies in the context of a holistic planning for rural development should be co-designed by farmers and local communities in the countryside themselves, and should be co-owned by them – as can be done through energy communities.

Christos Vrettos, Electra Energy, European Federation of Citizen Energy Cooperatives (REScoop.eu)

Dimitris Kitsikopoulos, Electra Energy

 

 

 

 

 

 

Lower-cost energy for farmers to alter connection-term order

A government initiative promising lower-cost electricity for farmers stands to alter the ordering of a connection-term waiting list by elevating to the the top of this list RES projects planned to supply farmers through PPAs as well as domestic industrial consumers who have established such agreements.

A ministerial decision will be needed for this revision, which breaks the energy ministry’s unwavering stance for absolute adherence to priority concerning assessments of grid connection-term applications.

With the exception of consumers in the agricultural and industrial sectors who will be moved to the top of this waiting list, the ordering of all other consumer categories will be kept unchanged.

This ordering revision favoring farming and industrial PPAs could be made ahead of increased grid-injection restrictions planned by the government as part of a wider plan aiming to free up grid space.

Therefore, farming and industrial PPAs to be elevated to the top of the connection-term waiting list would secure current grid-injection restriction levels, before these restrictions are increased.

Lower-cost farming electricity plan based on industrial PPAs model

New government measures aiming to reduce energy costs for farmers have taken their cue from a PPA  pricing formula shaped by power utility PPC and agreed to with two industries so far – metal processing company Viohalco and cement producer Titan – for ten-year PPAs offering higher fixed tariffs over the first two years and lower-priced tariffs thereafter.

The government’s revision for agricultural-sector farming electricity, to be introduced April 1, almost exclusively applies to power utility PPC, as the company represents virtually all of the country’s 192,000 farming power meters.

PPC incorporated elevated fixed tariffs, for the first two years, into its PPAs with Viohalco and Titan as it anticipates such a time period will be needed for the completion of solar farms planned to serve the two industries.