Factsheet: Feed-in tariff scheme for RES-electricity

Feed-in tariff scheme for RES-electricity

Key Information
Full name of Instrument & Measure (English): 
Law 4254/2014: Measures for the support and development of the Greek economy, in the context of the implementation of Law 4046/2012, and other provisions of law Law 3851/2010: Accelerating the development of Renewable Energy Sources to deal with climate change and other regulations addressing issues under the authority of the Ministry of Environment, Energy and Climate Change
Full name of Instrument & Measure (native language): 
Νόμος 4254/2014: Μέτρα στήριξης και ανάπτυξης της ελληνικής οικονομίας στο πλαίσιο εφαρμογής του ν. 4046/2012 και άλλες διατάξεις Νόμος 3851/2010: Επιτάχυνση της ανάπτυξης των Ανανεώσιμων Πηγών Ενέργειας για την αντιμετώπιση της κλιματικής αλλαγής και άλλες διατάξεις σε θέματα αρμοδιότητας του Υπουργείου Περιβάλλοντος, Ενέργειας και Κλιματικής Αλλαγής
Description: 
The RES-electricity support scheme in Greece was originally established by Law 2244/94 and retained by Law 2773/99, which established the framework for the liberalization of the Greek energy market. Following Directive 2001/77/EU, the basis of the current feed-in tariff system was set by Law 3468/2006. The law distinguished the feed-in tariff level based on the RESe technology and whether the electricity was supplied to the interconnected grid or the non-interconnected islands. A mechanism for price adjustment of the feed-in tariffs was foreseen and the latest update took place in October 2008. Despite increases in the installed capacity of RESe, mostly wind power, the level of the feed-in tariffs was considered unattractive by many investors; in addition, the bureaucratic procedure for acquiring installation and operating licences for RESe plants was considered cumbersome. In order to stimulate further investments in renewable energy units, which are a strategic priority of the administration of that time, and also to reach the national goals set by Directive 2009/28/EU, major updates to the feed-in tariff scheme and the overall legislation concerning RESe, including a simplification of the licencing procedure, was brought about by Law 3851/2010, which was voted in June 2010. Law 3851/2010 retained the distinction between interconnected and non-interconnected grid only for few technology options; in most cases, the level of the feed-in tariff was determined by the installed capacity of the power plant. For biomass power plants the feed-in tariff varied from 150 to 200 €/MWhe. If the investment for the construction of the power plant was not supported by public funds, then the feed-in tariff is increased by 15% for biomass power generation (cases (i) to (if)) and by 20% for all other RES sources. The duration of the supply contract between the RESe producer and the grid operator was set to 20 years. The high feed-in tariffs for solar resulted in a large capacity increase of photovoltaics; for financial reasons, the Ministry revised the feed-in tariff system in April 2014 (Law 4254/2014).
Goal/Aim: 
Support renewable electricity production

Sector/Topic targeted:

Responsible Authority: 
Ministry of Environment, Energy and Climate Change (YPEKA)

Status:

Year Instrument & Measure Started: 
2006
Year Last Instrument & Measure was last Amended: 
2014