Small-scale Cyclades PVs nearing readiness to operate

Small-scale RES projects of up to 400 kW that had undergone a bidding process for tariffs through a RES auction organized by the distribution network operator DEDDIE/HEDNO to cover the Cyclades, along with equivalent auctions for projects in the Peloponnese and Crete, are nearing readiness for operation.

A follow-up procedure offering finalized connection terms to these Cyclades RES projects has begun and is expected to be completed next week, when all 51 projects for which successful bids had been submitted to the Cyclades auction should have received their connection terms, energypress sources informed. These 51 projects represent a total capacity of 18 MW, the sources added.

The energy ministry, as previously reported, has decided to end administratively-set tariffs for small-scale RES projects a year ahead of schedule. A relevant bill is expected to soon be submitted to Parliament.

Under the resulting system, investors behind new RES projects will need to participate in RES auctions to secure their tariffs, which will be lower compared to administratively-set tariffs.

However, small-scale RES projects in the Cyclades will be exempted from the new system and will still be able to secure administratively-set tariff agreements with DAPEEP, the RES market operator. These projects will also be exempted from substantial grid-injection cut rules.

The outcome of RES auctions concerning small-scale projects in the Peloponnese and Crete has been put on hold in anticipation of a court ruling following charges filed by plaintiffs alleging foul play.

Small-scale PV tariffs facing RES auction-induced reduction

Small-scale PVs with capacities of up to 500 KW and energy-community PVs of up to 1 MW, both categories still eligible for non-auction tariffs, are expected to face significant tariff reductions as a result of a side effect to stem from an upcoming RES auction.

The auction is expected to be announced by RAAEY, the Regulatory Authority for Energy, Environment, and Water within September and staged a month later.

The reduction in administratively-set tariffs for small-scale PVs expected to be prompted by the upcoming RES auction can be attributed to the current formula applied for calculating these non-auction tariffs.

This formula is expected to cause a significant reduction in tariffs concerning RES producers who are not obliged to participate in competitive procedures.

SPEF, the Hellenic Association of Photovoltaic Energy Producers, is expected to inform the energy ministry on the matter in the coming days. The association is expected to stress the need for a legislative revision facilitating a revision to the existing formula concerning administratively-set tariffs, which could prevent their anticipated decline.

Non-auction tariffs for small-scale PVs are currently at 65.74 euros per MWh, a price level valid until August 31, 2024, following an extension granted by the energy ministry last spring.

However, under the current formula, October’s RES auction will significantly reduce this non-auction tariff level.

 

Small-scale PV, energy community tariff levels given one-year extension

Non-auction privately owned solar energy units of up to 500 KW and energy communities with capacities of up to 1 MW have been given one-year tariff level  extensions, until August 31, 2023, which partially compensates for the failure, for the time being at least, of tariff increases requested by sector officials.

The one-year tariff extension means current tariffs of 65.74 euros per MWh for private owners of solar units of up to 500 KW will be maintained for an additional year instead of being reduced to 63 euros per MWh from September 1, as had been planned by authorities.

Correspondingly, current tariffs for energy communities of up to 1 MW will remain at 68.87 euros per MWh for an extra year instead of dropping to 65 euros per MWh as of September 1.

Even so, investor representatives contend the maintenance of tariffs at present levels does not suffice for sharp development cost increases of solar energy units.