A considerable number of wind energy projects – and renewable energy projects in general – worth hundreds of millions of euros, are in the pipeline but are being restrained by the absence of a specific payment mechanism for the sector, stopping entrepreneurs from signing agreements and developing projects, market sources have pointed out.
Consequently, a series of wind energy projects that could be developed swiftly, despite the country’s unfavorable economic conditions, and generate badly needed activity in the RES sector, have remained stagnant.
A previous payment mechamism for Greece’s RES sector expired at the end of 2015 and the government has not finalized its preparations leading to its replacement. The new system will also need to be endorsed by the European Commission’s energy authorities.
Without a payment mechanism in place, banks and other sources are refraining from financing prospective RES projects, meaning that no entrepreneurial initiaves, in this field, can be taken.
It is estimated that projects with an overall capacity of 200 MW to 300 MW, primarily wind energy parks with respective capacities of over 40 MW, would be swiftly developed if a payment framework had been introduced.
Sector officials believe the RES market may start gaining momentum following the year’s first half. They estimate that a further three to four months from now are needed before the European Commission endorses Greece’s eventual payment mechanism plan.
Considering the country’s wider economic slowdown, the achievement of national environmental objectives set for 2020 appears to be an increasingly unlikely prospect.