New measures for RES and CHP producers

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In November 2012 the Greek government passed the Medium-Term Fiscal Strategy Framework 2013-2016, which aimed, among other things, to combat the deficit and ensure that producers would continue to be paid without end consumers suffering an additional financial burden through an increase in the RES special duty (which had already just been significantly increased). The framework provides for the following measures:

(a) A special extraordinary ‘solidarity’ fee isintroduced, to be levied on RES and CHP producers as a percentage of the pre-value added tax sales price of the electricity injected into the grid by each producer, ranging from 10% to 30%, depending on the date of connection of the plant and the type of technology used. This fee will remain in place for two years, with an option to extend it for one more year.

(b) The way in which the feed-in tariff (FiT) for photovoltaic projects is ‘locked’ is changed. For new PV projects, the applicable FIT will be ‘locked’ on the date of commencement of the plant’s trial operation period or, if no testing is required, on the date on which connection is activated. PV producers that have already submitted a complete application to sign a power purchase agreement (PPA), or that have already signed such an agreement, have the right to retain the FiT which was locked on the date of submission of their complete application, on condition that the plant becomes operational within a specified period.

(c) Time limits are established by which producers must conclude connection agreements for RES and CHP plants, as well as by which they must complete construction of the necessary connection works. These measures attempt to expedite the licensing process for RES projects.