The European Commission on Thursday approved a Greek auction scheme for electricity from renewable energy sources (RES). In an announcement, the European Commission has found a Greek auction scheme for the production of electricity from RES and high efficiency cogeneration to be in line with EU State aid rules. The scheme will further EU energy and climate goals whilst preserving competition.
Commissioner Margrethe Vestager, in charge of competition policy, commenting on the decision said: “Greece will bring down costs for renewable energy with competitive auctions to support renewable electricity generation. This is very good and the scheme will facilitate Greece’s efforts to reach its 2020 climate goals.”
Under the scheme Greece will organise regular, competitive auctions to grant support to renewable energy sources:
In 2018, Greece will organise separate auctions for wind and solar installations in order to determine their market potential.
As of 2019, joint auctions for both wind and solar installations will be held to increase competition and reduce the cost for consumers of renewable energy in Greece.
State support for other renewable energy technologies will be subject to auctions as soon as they become more mature in the Greek electricity market, i.e. when they reach a predefined level of market penetration. Moreover, Greece will evaluate the bidding processes in 2020, before designing bidding processes for the period 2021-2025.
The Commission concluded that the Greek auctioning scheme will boost the share of electricity produced from renewable energy sources, in line with EU environmental objectives, while any distortion of competition caused by the state support is minimised.
The ministry of energy will issue in the near future a ministerial decision specifying the technical details of the auction scheme for electricity from renewable energy sources (RES), according to a press release on Thursday.
Greece has planned separate auctions for wind and solar power units in 2018, while as of 2019, the ministry will hold joint auctions for both technologies aiming to increase competition and cut cost for RES consumers.