Taking their cue from major international RES investors, wind energy equipment makers active in the Greek market, including VESTAS, holding just under a 50 percent share of wind turbines installed, have urged the government to take cautious steps with its sustainability measures intended to counter the RES special account deficit.

Local representatives of wind turbine multinationals have forwarded a joint letter to energy minister Costis Hatzidakis, as well as to the prime minister’s office, expressing their concerns of market destabilization.

The foreign investors have warned that tariff cuts for output – on existing contracts – as hinted just weeks ago by Hatzidakis, the energy minister, would breed market insecurity and force a reexamination of investment plans.

Tariff cuts imposed on existing RES contracts in Greece back in 2014 had stunned the sector to a standstill. It has only just begun recovering.

Multinational wind turbine makers rely on advice from local subsidiaries when selecting investment projects. Yield rates and country risk are two pivotal factors behind these decisions. Retroactive tariff cuts greatly increase the country risk factor for RES investments.

The energy minister and his team are currently examining possible moves to eliminate the RES special account deficit. It is a tricky equation as all options come with some drawback.

The ministry intends to soon hold talks with RES investor representatives for a set of proposals it will deem as fair and balanced.