IEA report, positive, calls for faster RES licensing procedures

A latest International Energy Agency report on Greece, published today, calls for swifter licensing procedures concerning new RES projects, while also noting that any new investments in gas infrastructure will need to focus on fully meeting supply security requirements.

The report, examining Greece’s energy transition progress from 2017 to the present, commends the country’s green-energy performance but notes more work is needed.

Greece has made positive progress in reducing carbon use and reforming energy markets, but needs to do more to develop renewables and promote energy efficiency, IEA noted in an announcement concerning the report.

The IEA report praises Greece’s ambitious targets for a greener energy mix through installations of RES technologies, also planned to include offshore wind farms, and also commends initiatives taken to develop new power grid interconnections with neighboring countries.

These grid interconnections will, on the one hand, enable any excess green energy generation to be exported, while, on the other hand, diversify the country’s supply sources, it notes.

The report also makes extensive reference to initiatives taken by Greece to modernize its electricity and gas markets.

Incentives for RES projects with storage units considered

The energy ministry is considering subsidy support and licensing simplification initiatives as incentives that could encourage RES investors to add energy storage units to projects that have already received connection offers.

Although the ministry’s thoughts on the issue are still nascent, it is already favorably inclined to pursue the plan, proposed by sector experts, as it would free up significant grid capacity and enable further RES development for a bigger green-energy share of the energy mix.

Highlighting the benefits offered by RES projects incorporating energy storage units, a RES project with a capacity of 100 MW, for example, would occupy 72 MW of the grid, whereas the same project would take up approximately 50 MW of the grid if it were to be equipped with an energy storage unit.

Efficient use of the country’s grid, saturated at certain points, is crucial. RES units in operation and maturing RES projects possessing final connection offers currently represent a total capacity of 24 to 25 GW, just below the transmission system’s projected capacity of approximately 29 GW in 2030.

RES project links up 60% in ’22, better grid utilization needed

RES projects ended 2022 having recorded one of the best performances in recent years in terms of new unit connections to the transmission system, adding a green energy capacity of 583 MW, up from a total of 370 MW in 2021, an increase of approximately 60 percent in a year.

This spectacular increase highlights the tremendous level of interest expressed by investors for the development of new RES projects in Greece. It puts the country on the right track towards achieving ambitious green energy targets set for 2030.

According to the revised National Energy and Climate Plan, Greece is striving for a RES energy-mix share of 80 percent by the end of the decade.

Against this backdrop, priority now needs to be given to better utilize the existing network through legislative initiatives that will free up reserved electricity space from stagnant RES projects.

Also, RES project licensing procedures need to be further simplified so that grid projects included in power grid operator IPTO’s 10-year investment program may proceed even faster.

RES licensing simplification bill headed for parliament

A legislative revision including a second wave of measures for further RES licensing simplification as well as a framework for development and operation of energy storage units is expected to be submitted to parliament today or, possibly, within the current week, at the latest.

The measures for further RES licensing simplification, included in Greece 2.0, the country’s recovery and resilience plan, are planned to be ratified by the end of June.

This would help unlock funding for energy-sector investments promised through the recovery and resilience plan.

A legal framework for offshore wind farms was also planned to be ratified by the end of this month but is now headed for a slight delay. This set of measures will be presented for consultation within the next few days.

RES sector officials have warned that a new measure designed to enable energy injection cuts of 5 percent for green electricity producers, whenever needed for grid security, would threaten the sustainability of RES units.

Freeze on new RES connection terms throughout Greece

An energy ministry draft bill for a second round of RES licensing simplification measures will freeze, throughout Greece, RES grid connection applications accepted as well as connection terms that would otherwise be offered by distribution network operator DEDDIE/HEDNO for pending new RES projects until RAE, the Regulatory Authority for Energy, has approved the operator’s plan for a grid capacity increase.

However, even when this grid capacity boost is approved by RAE, very few RES projects will be able to make progress as a minimal number of existing substations currently have minimum capacities of 10 MW, a draft bill prerequisite for distribution of capacity percentages concerning grid connections of small and medium-sized projects.

RAE does not face any time limits for its approval of the grid capacity boost. Officials fear the delay could last months. Until RAE’s approval, DEDDIE/HEDNO will only accept RES project applications and offer connection terms for net-metering systems, virtual net-metering as well as roof-mounted solar panels.

RES and energy storage licenses in less than 2 years from 5 at present

The time needed by investors to secure RES project and energy storage licenses will be reduced to less than two years, from five at present, according to a RES licensing simplification draft bill prepared by the energy ministry, expected to be announced within the next few days.

Through the simplified licensing procedure, the ministry will aim to facilitate RES licenses representing a total capacity of 12,000 MW and investments estimated at 10 billion euros by 2030.

The ministry’s legislative initiative will be carried out over two stages, the first concerning RES and energy storage project licenses, and the second offshore wind farms.

The revisions will enable investors to push ahead with licensing steps simultaneously rather than successively, as is the case at present.

Also, the procedure will include criteria filtering out prospective RES applicants deemed to not be genuinely interested in developing projects.

 

 

 

 

Energy storage capacity objective 1,500 MW by 2030

A new support framework concerning energy storage stations will be attached to a RES licensing simplification draft bill headed for imminent consultation, the objective being to have the bill ratified in parliament by the end of this month.

Authorities aim to have energy storage units offering a total capacity of 1,500 MW installed and functioning by 2030, 700 MW of these in the form of pumped storage stations, the other 800 MW as batteries.

The Greek market’s current conditions are challenging for the sustainability of energy storage stations. As a result, Greece is the first EU member state to have notified the European Commission’s Directorate-General for Competition of the need for an energy storage support framework.

Investment support worth 200 million euros is planned to be provided through the Recovery and Resilience Facility (RRF) to finance 700-MW in batteries.

Investors eligible for this RRF support will qualify through competitive procedures, the first of these scheduled to take place this coming summer.

Investment interest in energy storage is currently elevated. A total of 78 applications for energy storage stations representing a total capacity of 4,800 MW have been submitted to RAE, the Regulatory Authority for Energy.

RES licensing simplification aims to cut process to 14 months from 5 yrs

A draft bill for further RES licensing simplification, set for consultation within the next few days, carries revisions that will aim to shorten the time required by investors to obtain RES licenses to 14 months from five years at present.

Energy minister Kostas Skrekas is determined to simplify the RES licensing procedure to facilitate a total of 12 GW in licenses needed for renewable energy projects to meet National Energy and Climate objectives set for 2030.

As part of the plan to hasten the RES licensing procedure, the total number of steps will be reduced from seven to five. Also, applications lodged will be filtered to eliminate bids lacking serious intentions, while non-binding connection term offers will be scrapped.

The simplified licensing procedure will also spare investors from needing to resubmit supporting documents more than once, to various agencies, as has been the case until now.

In addition, the energy ministry will establish a one-stop service center enabling applicants to monitor the progress of their licensing applications.

Consultation for RES licensing simplification, energy storage

Consultation is set to begin within the next few days for an energy ministry draft bill carrying a second round of measures designed to further simplify the RES licensing procedure and establish, for the first time, a complete framework concerning the development of energy storage projects, energypress sources have informed.

A third section of measures concerning development and operation of offshore wind farms, initially intended to be incorporated into this draft bill, is not yet ready. It will be released for consultation at a latter date, the intention being within the year’s first quarter.

The second round of RES licensing simplification measures will improve the country’s investment prospects as the overall time needed for licensing will be drastically reduced from five years at present to 14 months, according to the energy ministry.

Measures in the current draft bill include an initiative fusing three licensing steps into one – operator connection terms; installation license; and an operating contract with RES market operator DAPEEP. Until now, these three RES licensing steps have needed to be taken successively.

Letters of guarantee help limit RES bids, stricter property rules not needed

Energy authorities have decided to defer a plan for stricter property ownership regulations concerning prospective RES project applications as the energy ministry deems the introduction of letters of guarantees worth 35,000 euros per MW required to accompany applications is proving effective in the effort to cool down the overheated RES market.

Just 127 applications (representing 960 MW) for RES producer certificates, an early step in the RES licensing procedure, were submitted to the October cycle, sharply down from 743 for 17.45 GW lodged in the previous cycle, in June.

The energy ministry is currently preparing a second round of RES licensing simplification measures, to soon be forwarded for public consultation. Its details are not expected to differ greatly compared an initial proposal prepared by the ministry.

Stricter property ownership regulations have been considered to help resolve RES market overheating as a number of applications lodged have ended up being entangled in overlapping property disputes.

 

 

RES license simplification bill reducing steps from 7 to 5

An energy ministry draft bill carrying a second round of RES license simplification measures for prospective projects carries revisions designed to merge three licensing steps into one in order to quicken the overall procedure.

According to the draft bill, three stages needed to be satisfied by investors, the connection term process, installation permit, and establishment of an operating aid contract with RES market operator DAPEEP, will be carried out concurrently.

Until now, one stage has needed to be completed before the next can commence.

This revision will reduce the total number of RES licensing stages to five from seven at present.

Under the new system, the RES licensing procedure will begin with the producer certificate, which investors must obtain before applying for an environmental permit as the second step, and then applying for connection terms as step three. The fourth step for investors will entail establishing agreements with DAPEEP and the grid operator, while the fifth and final stage will involve obtaining an operating license.

The total number of supporting documents required by RES investors for the overall licensing procedure is being reduced from 91 to 54, the energy ministry announced.

 

Ministry to impose stricter RES project ownership inspection

The energy ministry is preparing to enforce a stricter ownership inspection procedure for RES projects, following many property overlapping cases, to be included in a second round of measures intended to further simplify RES project licensing.

The ministry intends to include this second round of RES licensing simplification measures, including the stricter project ownership checks, to a draft bill covering energy storage matters, expected to be submitted to Parliament towards the end of the year following its presentation to the cabinet and public consultation.

The second round of measures for RES licensing simplification is expected to  include interventions at many stages of the overall procedure for swifter processing and outcomes.

 

RES simplification, energy storage bills in September

The energy ministry plans to submit a draft bill to Parliament in September, following public consultation, for a second round of RES licensing simplifications concerning new projects.

During this time, the ministry intends to have also finalized and forwarded its legislative framework for the emerging energy storage sector, to play a crucial role in the country’s ambitious RES output targets.

The energy ministry plans to jointly submit the RES licensing simplification and energy storage bills to Parliament.

The new RES licensing simplification revisions will be based on a key proposal made by the energy ministry’s secretary-general Alexandra Sdoukou, heading the ministry’s RES licensing committee, entailing the termination of non-binding connection offers.

Instead, investors behind new RES projects will directly proceed to applications for finalized connection offers, once environmental permits have been issued.

Also, RES investors will be set time limits to submit installation permit applications for projects. Time will begin counting as soon as the investors have accepted finalized connection offers. If the time limit is not met, RES production certificates for corresponding projects will automatically expire.

According to the ministry plan, PV projects, land-installed wind turbines and hybrid stations will be given 12-month periods, while all other RES technologies and combined cooling, heat and power (CCHP) units will have 18 months.

Licensing authorities will also be set time limits, according to the plan. They will be given 20-day limits to request any additional information or clarification from investors. Also, authorities will have 20 days to issue RES licenses once applications are deemed complete.

Abolition of non-binding grid connection offers proposed

The abolition of non-binding (preliminary) grid connection offers is among a list of legislative proposals made by the energy ministry’s RES licensing committee, the objective being to further simplify the RES licensing process.

As part of the overall effort, RES production licenses have been replaced by RES producer certificates, obtained through a simpler online process.

The proposal to abolish non-binding (preliminary) grid connection offers means that RES investors will be able to apply to the distribution network operator DEDDIE/HEDNO (if projects are up to 8 MW) or the power grid operator IPTO for finalized grid connection offers once they have obtained producer certificates and environmental permits.

In another committee proposal, DEDDIE/HEDNO, during its examination of grid connection offers, will no longer be responsible for land title audits in cases where land to be used for RES project installations is privately owned. This task, according to the proposal, will be taken on by external lawyers.

Legislative proposals for further streamlining of RES licensing process

By Dimitris Assimakis

Partner, Reed Smith LLP

Overview of the main legislative proposals for the further streamlining of the process for the licensing of renewable energy projects that are under consideration by the Greek Ministry of Environment and Energy: 

  • Establishment of a single point of contact for RES investors and digitalisation of the whole licensing process up to the award of the Operation Licence.
  • Limitation of the requested documentation and data for the granting of the Grid Connection Offer, the conclusion of the Grid Connection Agreement and the award of the Installation Licence and the Operation Licence. Abolition of the non-binding (preliminary) Grid Connection Offer licensing step.
  • Submission of a bank guarantee upon the application for the granting of the Grid Connection Offer and not upon the acceptance of the offer, as it is the case now.
  • Limitation of the cases necessitating the modification of the Grid Connection Offer, the Grid Connection Agreement, the Installation Licence and the Operation Licence.
  • Introduction of a more flexible application framework for the granting of the Gird Connection Offer and a more flexible process for the energisation of the connection of new power plants to the grid.
  • Land titles audit from external lawyers in case the land wherein a project is going to be installed is owned by a private party.
  • Breaking up of the Grid Connection Agreement in two distinct parts i.e. the Main Part and the (project specific technical) Supplement; and partial disassociation of this agreement from the Installation Licence.
  • Introduction of exclusive deadlines for the filing of an application for the award of the Installation Licence as from the time of issuance of the Grid Connection Offer.
  • Possibility to extend the term of the Grid Connection Offer and the period within which the developer has to apply for the award of the Installation Licence against the payment of a relevant fee.
  • Periodic publication of data from the competent grid operators (TSO /DSO) on the status of the applications for the granting of Grid Connection Offers, as well as of the status of the Grid Connection Offers granted and the Grid Connection Agreements signed, together with adequate info relating to the local grid and the development of the grid connection works associated with any such offers and agreements.
  • Introduction of a special framework for the licensing of energy storage units.
  • Addressing various issues relating to forestry legislation and their interface with the RES licensing process (e.g. intervention permit, reforestation process, forestry road network).
  • Introduction of a simple notification scheme for the licensing of micro power generating facilities that are connected to the distribution network.

RES installation permit deadline for producer certificate validity

The energy ministry’s RES licensing committee has proposed an additional deadline, for installation permit applications, as part of a second wave of interventions in the licensing simplification effort for new RES projects.

According to the proposal, if investors miss their installation permit application deadline, then producer certificates obtained for related projects would automatically expire.

Investors would be given a twelve-month period to submit their installation permit applications once connection offers have been accepted for solar energy projects, onshore wind farms and hybrid units, and 18 months for all other RES technologies and combined cooling, heart and power (CCHP) facilities, according to the committee’s proposal.

Prioritization for RES projects with producer certificates proposed

The energy ministry’s RES licensing committee has recommended a four-month prioritization period by power grid operator IPTO in its processing of connection term applications submitted by investors already holding producer certificates. This prioritization would be implemented at the expense of small-scale RES unit applications, which have swamped licensing system and caused problems.

The proposal, presented at a committee meeting yesterday, would effectively push forward, by four months, connection term applications submitted for projects already issued producer certificates.

The main topic of yesterday’s committee meeting concerned a presentation of this body’s proposal for RES licensing simplification procedures, during the latter stages, such as when finalized connection terms are offered and operating licenses are issued.

 

Extra RES measures to simplify installation, operating permits

The energy ministry is preparing to include simplification measures it appears to have settled on for the second stage of RES licensing procedures, concerning installation and operating permits, into the one draft bill to also incorporate EU energy efficiency directives being adopted.

The draft bill is expected to be forwarded for public consultation within the next few weeks, prior to Greek Orthodox Easter, in early May.

Public consultation on the energy efficiency EU directives being adopted has already been completed.

The imminent draft bill is not expected to bring about any fundamental changes to the second stage of the RES licensing procedure, as had been the case with a major first-stage change abolishing production licenses, sources have informed.

Instead, a series of revisions will be introduced to remove various obstacles encountered by investors in the maturity process of their projects, the objective being to significantly reduce the time needed for project maturity.

The second-stage RES licensing simplification plan promises to lessen both the number of steps and supporting documents needed for RES installation and operating permits.

The energy ministry also intends to revisit the first stage to implement further improvements, needed to counter the flood of producer certificate applications being submitted to RAE, the Regulatory Authority for Energy.

The government has declared its objective is to reduce the overall RES licensing procedure in Greece to two years, the EU average.

New minister, just appointed, has issues to resolve in 2021

Kostas Skrekas, just appointed new energy minister as part of the government’s cabinet reshuffle, in place of Costis Hatzidakis, who has headed the ministry for a constructive year and a half, faces a series of pending energy-sector matters that remained unresolved in 2020. They need to be addressed as soon as possible. Developments and conditions this year will be pivotal for these matters.

Skrekas was previously deputy minister for agricultural development and food.

Also in 2021, a year during which takeovers and mergers are seen occurring in the retail electricity and gas markets, rivals will continue battling for market share gains. The target model’s launch two months ago has brought about new conditions, strengthening the positions of vertically integrated suppliers.

The need for a normalization of the target model’s new markets stands as the energy ministry’s most pressing task at present. A sharp rise in wholesale electricity prices as a result of soaring balancing market costs has deeply unsettled the market, impacting the standings of non-vertically integrated suppliers, as well as industrial enterprises and consumers, who face rising bills.

Market coupling with Bulgaria’s day-ahead market, scheduled to take place within the first three months of the new year, is the next step of the target model, a procedure designed to harmonize EU energy markets and promote competition.

New energy-intensive industrial tariffs also need to be set soon. Though essentially a matter concerning state-controlled power utility PPC and Greece’s industrial players, the cost of industrial energy is crucial for Greek industry, carrying particular political and economic weight.

Also, Greece has little time left in its negotiations with Brussels for a framework to offer third parties access to PPC’s lignite-based generation. This issue is no longer as crucial as it once was because the country’s lignite output has been drastically reduced. Even so, it remains important for independent suppliers.

A number of energy-sector privatizations could be completed this year. Gas utility DEPA’s two new entities, DEPA Infrastructure and DEPA Commercial, electricity distribution network operator DEDDIE/HEDNO, and a tender for a tender for the development of an underground natural gas storage facility (UGS) in the almost depleted natural gas field of “South Kavala” in northern Greece are all on this year’s privatization list.

In renewable energy, the ministry needs to take decisions within the first few months to clarify terms regulating the sector. RES investment interest is currently high. Steps still need to be taken in an ongoing effort to simplify RES licensing procedures, while a legal framework must be established for energy storage, offshore wind farms and hydrogen use.

 

Producer certificate rule soon, financing OK for RES license one-stop shop

A new regulation facilitating the issuance of electricity producer certificates for RES and CCHP (Combined Cool Heat and Power) projects, in place of production licenses, as part of a wider RES licensing simplification effort, will be implemented within the next few days, the energy ministry’s secretary-general Alexandra Sdoukou noted during a presentation of a new online platform developed by RAE, the Regulatory Authority for Energy, for the producer certificate procedure.

The new regulation will come into effect on time to enable a new round of RES license applications staged by RAE to proceed as planned between December 1 and 10, the ministry official reiterated.

In addition, various RES sector criteria, including ones concerning project spatial coverage matters, have been fine-tuned, the intention being to promote, not reject, project plans, Sdoukou noted.

Rule revisions have also been made to further protect RES project ownership, she added.

The new RAE platform, the result of a sustained effort, promises to serve as an investor-friendly tool, Sdoukou said.

The energy ministry official also informed that green-fund financing has been approved for an integrated information system to be co-developed by the ministry as a one-stop shop covering all RES project licensing procedures.

New round for RES producer certificates to open December 1

The energy ministry is expected to introduce, within the next few days, a new regulation enabling the issuance of electricity producer certificates for RES and CCHP (Combined Cool Heat and Power) projects, in accordance with recent legislation that has eliminated production licenses as part of an effort to simplify the RES licensing procedure.

The new rule will come into effect on time to enable a new round of RES license applications staged by RAE, the Regulatory Authority for Energy, to proceed as planned between December 1 and 10, energy ministry officials have informed.

The upcoming round for new RES license applications, via an online platform developed by RAE, will be the first in over a year following a freeze imposed by the authority so that it can process a backlog of older applications.

RAE has now worked through the older applications and issued production certificates to eligible applicants.

Processing of the new applications will be based on the new rules, designed to improve and simplify licensing procedures and help the country attain its renewable energy objectives.

RAE will present its new online application system today through a virtual event. The system, described as user-friendly, is expected to boost transparency and drastically reduce previous bureaucracy.

PPC Renewables, Germany’s RWE aim for business deal by end of year

PPC Renewables, a power utility PPC subsidiary, and RWE, Germany’s biggest power producer, have set an objective to develop a Memorandum of Understanding signed by the two sides last March into a realistic business agreement by the end of this year.

A team of RWE officials, completing a three-day working visit to Greece today, visited northern Greece’s west Macedonia region, a lignite-dependent area, for on-site inspections of areas offering investment interest to the German company.

Besides new projects, RWE is also keen to take on projects already being developed by other companies.

Details seen fostering the development of the MoU into a business plan, including project financing prospects and the establishment of working groups, were addressed by the two sides.

The visiting German team also held a meeting, yesterday, with the leadership of the development and investment ministry and the energy ministry’s secretary-general Alexandra Sdoukou.

The length of time required in Greece for RES licenses was discussed, as were financial incentives promised through the fair transition fund, an EU plan to support green economy transitions.

New rule soon for RES producer certificates, swifter licensing promised

A new rule concerning the introduction of RES producer certificates, to replace electricity production permits – a measure taken to help quicken licensing procedures – is expected to be announced within the next few days.

The replacement of RES electricity production permits with RES producer certificates, to be issued by RAE, represents the first step of a new RES licensing simplification framework presented by the energy ministry last April.

This plan will aim to drastically reduce the duration of RES licensing procedures to two years from the current average of seven years.

Procedures leading to new licensing rules have been slightly delayed by administration changes at RAE, the Regulatory Authority for Energy. The authority was originally scheduled to deliver its plan on August 7 for immediate approval by the energy ministry.

This deadline date was set to offer RAE sufficient time to inform RES investors of the supporting documents required as a result of the new rules ahead of a planned early-October launch for application submissions.

RAE will issue RES producer certificates once applicants have presented proof of payment for related fees.

These fees have been set as follows: 3,000 euros per MW for capacities up to 1 MW; 2,500 euros for capacities between 1 MW and 10 MW; 2,000 euros per MW for 10 MW to 50 MW; 1,500 euros per MW for 50 MW to 100 MW; and 1,000 euros per MW for over 100 MW.

Authority issues new wave of RES licenses for 27 projects, 491 MW

RAE, the Regulatory Authority for Energy, has just issued 27 RES producer certificates for as many projects, taking the tally of this new certificate, part of the government’s RES licensing simplification process, to 33.

The authority issued a first wave of new producer certificates towards the end of last month.

The 27 new producer certificates, issued by RAE yesterday, concern eight wind energy parks offering a total capacity of 171.15 MW, 17 solar energy projects with a total capacity of 318.48 MW, and two small-scale hydropower projects offering 2.1 MW, their overall capacity being 491.73 MW.

Four photovoltaic facilities planned by Consortium Solar Power in central Greece’s Fthiotida and Larissa areas, totaling 284 MW, are standout projects in terms of scale.

Enel Green Power was also well presented in this licensing round with a total of six projects, all solar, three of these in Xanthi, northeastern Greece, totaling 7.07 MW, and one each in Rodopi (2.72 MW), Kozani (3.6 MW) and Ioannina (1.99 MW).

As for the two small-scale hydropower projects just issued licenses, one, offering a capacity of 1.54 MW, belongs to the Koryfi K2 Energiaki company, the other, 0.6 MW, to Hydroilektriki.

RES project completion, without connection, to suffice for tariffs

The energy ministry is working to revise a rule that determines when development of RES projects is considered complete, which enables them to secure their tariff prices for output, either through competitive procedures or not.

Under the current rules, RES projects are considered ready once they have been connected to networks, not when their development has been completed.

This has proven to be a major problem for investors behind wind and solar energy projects completed on time but unable to secure tariff prices as a result of the inability of power grid IPTO or distribution network operator DEDDIE/HEDNO to offer connections when needed.

The matter is being worked on, the energy ministry’s secretary-general Alexandra Sdoukou noted during a virtual conference staged by the Hellenic-French Chamber of Commerce and Industry.

Final decisions have not been reached but the plan is to have authorities inspect and certify the completion of RES projects regardless of whether they have been connected, in order to secure tariff levels available at the time, sources informed.

The energy ministry is also striving to further simplify RES licensing procedures by merging or even eliminating certain steps or permits currently required, according to Sdoukou.

 

 

RAE close to launching first stage of RES online registry

RAE, the Regulatory Authority for Energy, is nearing the launch of the first stage of an online system appraising RES production license applications lodged up to June, 2018.

This step represents the first of three stages towards the establishment of a fully developed online platform for license application appraisals.

Applications grouped into the first category (dated up to June, 2018) will be appraised on the basis of an older regulation awarding production licenses, not producer certificates as foreseen by a new law ratified to help simplify RES licensing procedures.

This dividing line has been drawn to keep conditions fair for all as applicants as appraisals of license applications lodged up to June, 2018 had already commenced prior to the new law’s introduction.

The online tool’s imminent first step will offer a basic version of a system that will be upgraded into a more sophisticated tool for appraisals of a second group of applications submitted between September, 2018 and December, 2019.

Applications grouped into this second category will be appraised in accordance with  new and simpler rules offering producer certificates via an instant – if all requirements are met – online process.

Overall, the task of examining all older RES license applications (first and second category) is challenging as 1,750 applications with a total capacity of 29 GW will need to be appraised by September, when a new round of applications is set to commence under the new system.

A third stage of the online tool will be developed at a latter date for a fully developed online RES registry offering automatic processing of newer applications and issuance of producer certificates.

 

First stage of RES licensing simplification done, rest on way

A day after Greek Parliament’s ratification of a bill radically simplifying the first stage of the RES licensing procedure by granting project developers production licenses online and instantly if all requirements are met, authorities have begun work to simplify the rest of the licensing procedure, all the way to the issuance of RES unit operating licenses, energypress sources have informed.

The energy ministry’s secretary-general Alexandra Sdoukou, heading a special committee tasked with this project, has asked agencies representing various green energy technologies to forward updated proposals by Monday.

Then, days later, on Friday week, the committee, comprised of energy ministry officials, licensing authorities and market representatives, will stage a teleconference to discuss a number of issues, simplification of all other RES licensing procedures – beyond the first step now ratified – being at the top of the agenda.

Energy ministry officials are expected to table a groundbreaking proposal that would abolish installation licenses but maintain operating licenses. This proposal will be examined by the committee and implemented if deemed feasible.

The committee will shoot for the delivery of an initial plan before summer. Once ready, it will be forwarded for consultation. Any revisions during this process will make up the content of a draft bill finalizing the RES licensing simplifications.

Greece is striving to align with an EU directive requiring a RES licensing procedure time limit of two years for most projects and three years for special projects by June next year, deputy energy minister Gerassimos Thomas told parliament.

RES revisions supporting installations head to parliament

Large and small-scale solar and wind energy projects stand to benefit from a series of revisions included in a draft bill on RES and environmental matters set to be discussed by parliamentary committees ahead of ratification.

Besides introducing a simpler RES licensing procedure that replaces production licenses with producer certificates obtained instantly online as long as all criteria are met, the environmental draft bill also includes a series of other favorable measures.

Projects not required to participate in RES auctions, such as solar energy projects of up to 500 KW, will be given four-month extensions – from the most recent RES auction – for tariff prices determined through a previous formula offering, as the tariff price, the average level of three preceding auctions. Therefore, if the next RES auction were to be staged in July, for example, current tariffs for projects not required to participate in RES auctions would remain valid until November.

The draft bill also features a revision broadening a “special projects” category to include wind energy projects of over 150 MW as well as RES projects with underwater cable interconnections. Projects in this category will have six years for completion.

Also, a withholding tax concerning licenses issued in 2017, 2018 and 2019 will be reduced to one third of the current level, this being 1,000 euros per megawatt, annually.

The revisions also offer landowners protection from investors seeking to utilize property for RES projects without providing property titles or land lease agreements to authorities. This matter has caused confusion.

 

Wind energy investors concerned about RES licensing revision aspects

An energy ministry draft bill for the simplification of RES licensing procedures, now undergoing public consultation, has been generally well received, but wind energy project investors have pointed out some concerns.

These include a deadline automatically terminating licenses. Once investors have obtained producer certificates – through a swift online process planned to replace production licenses – they will have three years to obtain and accept finalized connection offers. This three-year deadline period begins ticking as of June 1, 2020 for existing licenses.

A retention fee will be limited to 50 percent of levels concerning 2017, 2018 and 2019. According to the draft bill, this term also applies for special projects such as interconnected wind energy facilities and hybrid projects combining RES output and storage, as well as projects for which letters of guarantee concerning connection terms have already been issued.

In addition, wind energy capacity measurements will not be needed unless projects are categorized as special-case projects, according to the new licensing regulations. This term, it is feared by critics, could prompt investors to occupy grid capacities without sufficient preparations.

Ministry planning support for low-growth RES sub-sectors

The energy ministry is looking to improve RES investment conditions for sub-sectors such as offshore wind energy parks and hybrid power stations, domains with little or no growth to show despite solid interest expressed by local and foreign investors.

Like other RES technologies, these sub-sectors are also expected to benefit from measures included in a ministry draft bill currently being prepared that promises to simplify licensing procedures.

RES production licenses for older categories will be replaced by certificates to be obtained via a swift online process.

The draft bill is scheduled to be discussed at a cabinet meeting tomorrow.

Production licenses will be required for a series of new RES categories, which, besides offshore wind energy parks and hybrid stations, also include biomass, geothermal, hydropower stations with a capacity of at least 15 MW.