farming associations

PVs of 300-500 MW needed for farming PPA energy-cost cuts

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Development of a solar-energy portfolio between 300 and 500 MW will be required so that farmers participating in cooperatives and farmers active in contract farming may establish PPAs offering electricity prices at least 30 percent lower than current levels over a ten-year period, the energy ministry has estimated.

Photovoltaic systems to be developed for this purpose will include batteries, thereby enabling part of their production to cover energy needs during nighttime hours for irrigation and other needs.

Sizeable state subsidies for integration of energy-storage systems into PVs are expected, ministry sources informed.

The extent of this subsidy support will be determined through a study to be conducted by the ministry in order to calculate the total energy-storage capacity required to secure electricity-cost cuts of at least 30 percent for farmers, the sourced noted.

According to an initial estimate, battery installations will need to represent roughly one-third of the total capacity of solar farms if this electricity-savings target is to be achieved.

PPC threatens to cut supply to farmers behind on power bill payments

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The main power utility PPC is threatening to cut power supply to farmers if long-standing unpaid receivables owed by related farming associations are not settled.

Power utility officials believe the accumulation of considerable amounts of debt owed by farmers in various parts of the country is not the result of an inability to pay but a deliberate choice.

If PPC follows through with its threat, farmers left without power will be forced to seek new suppliers or could continue being serviced by the power utility at an additional cost of 10 percent.

A total of 206 farming associations around Greece owe PPC 45.6 million euros, according to data provided by the power utility. Farming associations have agreed to payback program, through monthly installments, for 7 million euros of this total amount, according to the data.

Commenting on the issue yesterday, PPC boss Manolis Panagiotakis noted that over 20 percent of this debt figure is owed by farming associations in the Etoloakarnania region, northwestern Greece.