The new Energy Transition Fund, announced yesterday by Prime Minister Kyriakos Mitsotakis at the 85th Thessaloniki International Fair, will offer electricity subsidies to households and small and medium-sized enterprises, heating fuel subsidies, and a range of other initiatives intended to help combat energy poverty.
The new fund, to be established as a permanent tool, will be launched with an initial amount of 150 million euros expected to remain as a surplus from CO2 emission right auction revenues that have overperformed this year as a result of higher CO2 emission right prices in international markets.
The 150 million-euro amount to be reserved for the new Energy Transition Fund will not deprive other domains of customary support.
The RES special account will receive a 60 percent share of CO2 emission right auction revenues. Despite being a smaller proportion than last year, this percentage will produce an equivalent CO2 auction-revenues amount for the RES special account, remunerating producers, as a result of the higher CO2 emission prices. In addition, the Green Fund will receive its amount as normal.
Following these deductions, it is estimated that a 150 million-euro amount will be left over for the new Energy Transition Fund, which, over time, is expected to gain further amounts from other sources such as the Just Transition Fund and the state budget.
Energy minister Kostas Skrekas will offer more details on the new fund, including its operational specifics, today, the Prime Minister noted during yesterday’s announcement.
Rising wholesale electricity prices, pushed up by a combination of factors in international markets, are seen increasing energy costs for consumers by as much as 40 percent, which has prompted the need for government action.