The highly debated “new deal” on RES was voted by the Greek Parliament on the 30th of March 2014. The ultimate target of the new deal is the complete elimination of RES Special Account (LAGIE’S fund deficit). Changes of significant importance that the “new deal” introduces are the following:

For all types of already operating RES projects certain reductions of FiTs have been introduced.  Specifically, as regards the solar PV installations, the reference prices have a reduction around 30% on average, in relation to the initial tariffs. For the said reductions a number of factors have been taken into account, such as the technology used, the time of project development, the cost of the installation, the location, whether a project has received any additional form of state’s aid. Overall, the less negative impact of FiTs reduction is for the rooftop solar and farmers’ PV installations.

Moreover, the new bill provides that energy producers shall contribute 20% up to 37,5%of their 2013 income in the form of a discount to the Greek Electricity Market Operator (LAGIE),depending on the date of electrification of the respective projects. It should be noted that RES producers are obliged to comply with this measure within two months after the enactment of the new law. In case of non-compliance, LAGIE is authorised to suspend the power purchase agreements. Importantly, the special levy is abolished with the enactment of the new law, while the special levy for 2013 will be recalculated on the basis of the income resulting following the above mentioned discount.

Furthermore, the new measures include the extension of the duration of the power purchase agreements (PPAs) with LAGIE by seven years in order to offer to the producers a counterbalance for the FiTs reduction. Particular, after the end of the current PPAs, all RES plants that this January had been operating for less than 12 years are given two options; to sell the generated power pursuant to a methodology that will be determined by a decision of the Ministry of Environment and according to the current market rules or to sell the at a fixed price of 90 €/MWh for energy, which does not exceed an annual limit calculated on the basis of the following type: installed capacity X performance energy ratio (as determined for each type of RES technology).

Finally, it must be noted that the suspension of the approval process for pending applications for RES parks is lifted.However, an upper limit for RES capacity to be installed per year under the FiT system is set. For PV projects specifically, this limit is at 200 MW per year until 2020. In that respect, it is noted that the new parks to be connected yearly can be selected through a tender procedure.