Commission: Approval in two Greek RES projects of EUR 1 billion

Support for two renewable energy production and storage projects ( ) in Greece was approved by the European Commission ( ). According to the Commission, the measures contribute to the achievement of Greece’s climate and energy objectives, as well as the objectives of the European Green Agreement and the ‘Fit for 55’ package, allowing the integration of RES into the Greek electricity system. The Greek measures Greece notified the Commission of its plans to provide support for two projects for the production and storage of renewable energy, a total budget of EUR 1 billion. The ‘Faethon’ project includes the construction of two photovoltaic units each with a capacity of 252 MW, as well as the construction of integrated thermal storage units of molten salt and a substation of high voltage. The aim of this project is to produce electricity during the day. The excess energy will be stored and then converted into electricity for use in periods of peak consumption, such as evening and night hours. The project “Shelly” includes the construction of a 309 MW photovoltaic unit accompanied by an integrated energy storage system in lithium ion accumulators. The aim of this project is to optimise the production of electricity and the stability of the network. Both structures are planned to be completed by mid-2025. The aid will take the form of a two-way contract over a difference of twenty years. The exercise price will be determined by a technical committee on the basis, inter alia, of cost-benefit analysis and risk assessment. The reference value will be calculated as a monthly production weighted average of the market price of electricity on the next day markets. Where the reference value is lower than the exercise price, beneficiaries will be entitled to receive payments equal to the difference between the two prices. However, where the reference value is higher than the exercise price, beneficiaries should pay the difference to the Greek authorities. The scheme will ensure long-term price stability for renewable energy producers, ensuring a minimum level of return, without, however, overcompensating beneficiaries in periods where the reference value is higher than the exercise price. Support for projects will be paid annually for a period of 20 years. Both projects are expected to increase annual net renewable energy in the Greek electricity mix by around 1,2 TWh. This represents approximately 2.1 % of Greece’s total electricity generation in 2020. In addition, the two projects will stimulate renewable energy production by 8 % compared to 2020 levels. Storage plants in both projects will contribute to the disconnection of electricity distribution from production, thus mitigating the intermittent nature of solar energy and strengthening the stability of the Greek electricity network.