GREEKS SEEKING SOLAR POWER PLANTS

Greece’s renewable energy bill: Panacea for a troubled CSP sector
Rajeesh Chhabara, 27 May 2010 (CSP Today)

"Greece’s tough economic environment is undermining its generous feed-in tariff and a line-up of keen project developers. Could its new renewable energy bill be the answer?

"Greece has an impressive solar irradiation of 1900 kWh/m2/y. The islands of Crete and Rhodes are particularly attractive spots for CSP…[A] feed-in tariff has been in place in Greece since 2006 and is currently at 257 euro per MWh. The tariff is even higher for islands such as Crete which are not connected to the grid. Still, Greece has no CSP plant in operation…"

Greece needs to do some homework and raise its grade. (click to enlarge)

"…[T]he current legal framework for issuing permits for CSP projects is complex, time consuming and frustrating…[Land acquisition] rules require extensive environmental impact assessment…Some developers have been waiting for approvals even after two year of submitting applications.

"Currently, wind power dominates Greece’s renewable energy sector, accounting for 88% of the total installed capacity of 1GW…However, the CSP industry’s hopes have been renewed by the proposed renewable energy bill, which seeks to simplify [and speed] the approval process…exempt smaller projects from permits…allow co-generation of up to 15 per cent from diesel or 20 per cent, if bio-fuel is used…increase the feed-in tariff from the current 257 euro/MWh to 284.84 euro/MWh…[and provide] for an annual inflation-based adjustment for the entire life of 25 years of a plant."

The Greek Islands lay on the Mediterrean rim rich in solar power plant potential. (click to enlarge)

"The bill, which has been approved by the ruling party, is now in parliament, and will likely be passed in a couple of weeks to become a decree by September…[B]y the end of June Greece will submit an integrated plan of action to the European Commission. The plan aims to achieve targets of 20 percent decrease in greenhouse gases, 20 percent increase in energy performance and 20 percent energy from renewable sources by 2020.

"…Greece has been a net importer of electricity, mainly from Bulgaria, for a few years. CSP can [reduce reliance on imports and] potentially contribute to energy security…The question remains as to whether Greece can sustain subsidies for the renewable energy sector, given the economic hardship…[But] even if the feed-in tariff is scrapped, CSP projects will still be viable because the energy prices on both the islands- Crete and Rhodes - are very high…[though the] tough economic situation may limit project developers’ access to financing…More CSP companies will start looking at Greece more seriously if the new legislation effectively addresses the current problem of delays…"