Wind-energy investors seek bank guarantees to maintain offers

Large and small-scale enterprises active in the wind-energy sector are currently seeking to secure letters of guarantee from banks in order to maintain the validity of connection offers received from IPTO, the Independent Power Transmission Operator.

The period for submitting the letters of guarantee to IPTO began on January 1 and expires at the end of this month. It concerns renewable energy source (RES) stations that have already been granted finalized connection offers but which have yet to be issued connection agreements. In the event that letters of guanrantee are not provided by the end of the month, the connection offers received will no longer be valid.

According to energypress sources, wind-energy companies are rushing to acquire and submit letters of guarantee for development of projects in regions where the grid’s capacity is insufficient, such as the Peloponnese and Crete. Wind-energy entrepreneurs are eager to maintain the validity of offers for RES production connections to the grid in such areas as the competition is intense. If they miss the upcoming deadline, other investors are sure to move in.

On the contrary, a far more casual wait-and-see approach is being adopted by wind-energy entrepreneurs for connection offers concerning less saturated areas. RES production investors deem that they can acquire renewed connection offers in the future, if needed.

Production permits already granted remain valid, even if the letters of guarantee deadline is missed. It should be noted that securing letters of guarantee from banks is by no means a simple process for all RES producers. Banks demand that producers have the money corresponding to the letters of guarantee.