The German government has offered its approval to an initiative that will soon open up the country’s RES auctions to investors planning projects in other EU member states.

The German energy ministry announced that 5 percent of the country’s annual RES auction capacity, or 300 MW, will, from now on, be set aside for auctions concerning projects to be developed in other EU markets.

This move was offered as a condition by the European Commission for its approval of Germany’s new legal framework for the RES sector.

Until now, foreign investors could only take part in pilot program auctions for photovoltaic systems.

Germany’s energy ministry has set three conditions. The German State will limit its funding of RES projects abroad to   EU member states funding RES projects in Germany. Also, bilateral agreements will need to be reached between participating countries and Germany. Thirdly, the electricity to be generated at facilities abroad will need to truly impact the German market.

Rainer Baake, state secretary at Germany’s Federal Ministry for Economic Affairs and Energy, noted that the development promises to support the RES sector’s diversification, growth and balance.

Leading Greek and German officials have signed two agreements, one for provision of German knowhow to support renewable energy (RES) development in Greece, especially the non-interconnected islands, and another to promote exports.

The agreements were signed by Greece’s Environment and Energy Minister Panos Skourletis, the country’s Economy, Development and Tourism Minister Giorgos Stathakis, and German Vice Chancellor Sigmar Gabriel, also Minister for Economic Affairs and Energy, in Athens last Friday following an energy conference focused on the Greek and German energy sectors beyond 2020.

Gabriel, while delivering a speech at the event, noted that environmentally friendly policies and economic development ultimately do not contravene each other. He cited Germany’s decision, reached in 2011, to phase out nuclear power plants by 2022, as an example. The change of course has cost Germany 30,000 nuclear-linked jobs but created 300,000 new jobs through the country’s RES sector development, Gabriel told the conference.

The visiting German politician stressed the need for a switch from petrol to renewable energy for electricity production on the Greek islands, as well as for a need to reduce electricity costs in Greece, currently well above the EU average.

Gabriel stressed that 80 percent of German RES power production is exported, noting that Greek and German collaboration could lead to such prospects for Greece.

Stathakis, Greece’s Economy, Development and Tourism Minister, told the conference that the recent completion of the first review of the country’s third bailout package offers potential for the beginning of an economic rebound within 2016.

He said a new development law aims to support small and medium-sized enterprises, including in energy, as it will facilitate development of various ventures, including small-scale hydropower stations, RES units, biofuel facilities and hybrid stations on non-interconnected islands.

Skourletis, Greece’s Energy Minister, said the new support system for the RES sector will eliminate market distortions and promises to create a stable and secure environment for investors. Greece’s energy sector future beyond 2020 includes greater RES penetration, development of energy efficiency and storage systems, electric car usage growth, and eco-friendly islands, he noted.

The minister added that reducing energy costs by interconnecting the Greek islands with the mainland grid, an initiative, which he said, will also help further boost Greece’s tourism economy, stands as a key objective.

Germany’s Vice Chancellor Sigmar Gabriel, also Minister for Economic Affairs and Energy, who is scheduled in Athens tomorrow for an official visit, is expected to promote renewable energy (RES) technology and modern energy storage and network management systems that could make certain Greek islands independent in terms of energy needs.

During the visit, the visiting German minister and his Greek counterpart, energy minister Panos Skourletis, are expected to sign a Joint Declaration of Intent for cooperation of projects leading to the aforementioned objectives.

As reminded by Skourletis, establishing independent energy systems for Greek islands has been discussed in the past at a political level and between Greek and German technocrats.

The installation of state-of-the-art RES systems, including for energy storage and network management, would allow islands to better utilize their respective RES potentials at levels of between 80 and 85 percent of full capacity. At present, Greek islands are unable to utilize more than 20 percent of their installed capacities.

The plan includes developing hybrid energy stations based on two or more different RES sources, preferably wind energy and photovoltaic systems; large-capacity energy storage stations holding RES production; as well as digital meters capable of providing warnings of possible RES output reductions.

Following tomorrow’s meeting between Skourletis and Gabriel, a wider meeting to also include German energy entrepreneurs and Greek energy authorities will be held.

On Friday, Skourletis will take part in an energy conference in Athens, co-organized by the Energy Ministry, the Economy, Development and Tourism Ministry, and the German Economic Affairs and Energy Ministry.

The Greek and German energy ministers are expected to sign the Joint Declaration of Intent immediately following Friday’s conference.

Gabriel will also deliver a speech tomorrow at a Greek-German Chamber of Commerce and Industry event titled “Greece and Germany – Partners in Ecomonic Growth and Employment.”

For the visit to Athens, Gabriel will be joined by a delegation to include German entrepreneurs representing the RES, tourism, construction and banking sectors.