The energy ministry is seeking to establish yet another support mechanism, one subsidizing electricity absorbed by energy-intensive industries and other enterprises from renewable energy stations, whose cost the ministry aims to incorporate into the recovery fund.
Power purchase agreements (PPAs) reached between major-scale RES producers or aggregators with industries and other energy-intensive enterprises need to be reasonably priced if they are to ultimately prove beneficial for companies. The support mechanism would come into play here.
Green energy prices can be low and beneficial for industries and energy-intensive enterprises as RES stations have minimal operating costs once installed. These units merely have to cover investment costs and eventually make a profit for investors, once launched.
However, balancing market costs in target model markets, which significantly increase the cost of green electricity, also need to be factored into the equation.
The energy ministry will seek to subsidize balancing market costs by using recovery fund money as part of the effort.
The plan promises to help achieve two key goals. Firstly, RES stations will ensure supply channels for their production and thereby cement long-term performance figures, creating favorable conditions for bank loans financing green-energy investments. This would gradually increase the number of RES installations around the country.
As for the plan’s second key goal, energy-intensive industries and other enterprises with elevated energy costs would be ensured low-cost, eco-friendly electricity, subsequently boosting their level of competitiveness.
The support mechanism planned by the energy ministry will need to be endorsed by the European Directorate for Competition.
The government has high expectations for the success of this support mechanism as it acknowledges energy cost is a burden for Greek producers and other enterprises, including in the tourism sector.