1. The Legal Framework for the Licensing and Operation of a Photovoltaic Plant in Greece

Note: The current legal framework results from the provisions of Law 4093/2012, which was enacted on 12.11.2012 and supplements and replaces the most recently applicable provisions of Laws 3734/2009, 3851/2010, 3889/2010, 3983/2011, 4001/2011, 4030/2011 and 4062/2012.

National Targets, which were established in particular by Law 3851/2010, are:

• the participation of energy produced from Renewable Energy Sources in the gross final energy consumption at 20%,
• the participation of electrical energy produced from Renewable Energy Sources in the gross consumption of electrical energy of at least 40%,
• at least 20% of electricity generation from RES shall serve the consumption of heating and cooling by the year 2020,
• at least 10% shall serve the final energy consumption in means of transport (biogas). In comparison, Germany is at 20%.

1.1. Approval Procedure according to the Provisions of the Currently Applicable Legislation

1.1.1. The approval procedure must fundamentally distinguish between photovoltaic plants up to 1 MWp and those with a capacity of 1 MWp and above.

Plants with a capacity exceeding 1 MWp.

1.1.1.1. The Production License

Plants with a capacity exceeding 1 MWp still require a Production License. This license is now granted directly by the Regulatory Authority for Energy (RAE) and based on the criteria outlined in the law. These criteria include, for example, national security, public health, energy performance, project maturity, technical installation maturity, compliance with national spatial planning regulations, and environmental protection aspects.

2.1.1.2. Individual Procedural Steps

The following procedural steps, which were already introduced with Law 3851/2010 and supplemented by the new provisions, must be observed in detail:

1. The determination of the connection point as well as the manner of connection by the RAE in cooperation with the System and Grid Operator or with the Operator of the non-interconnected islands must take place within 20 days from the submission of the request. The performance of this act must take place before the granting of the license and is at the discretion of the RAE.
2. The RAE investigates the existence of the aforementioned criteria as well as the prerequisites for granting the license within 2 months from the submission of the application or the completeness of the submitted file. The submitted file is considered complete as soon as no further documents are requested in writing within 30 days.
3. The decision is published on the RAE homepage and delivered to the Minister of the Environment. Publication in a daily newspaper must also take place. The Minister is granted a period of 20 days for review. Within 15 days from the publication on the RAE homepage, an objection can be lodged against the license if there is a legal interest. This objection must be reviewed by the Minister of the Environment within 20 days. After the fruitless expiry of this deadline, the objection is deemed rejected.
4. The decisions are furthermore maintained in a register.
5. The persons who secure the financing of the project do not have to be the same person as the license holder. However, they must first be reviewed by the RAE regarding their financing capability according to the above criteria and subsequently, provided the prerequisites are met, included in the license with their data.

2.1.1.3. Term of the Production License

The license is granted for a term of 25 years and can be extended for the same period.

Within 30 months from the granting of the Production License, the so-called Installation Permit must be obtained, otherwise its validity expires. Extension requests in this regard are possible under certain conditions and before the expiry of the aforementioned deadline.2.1.1.4. Amendment of the License Data

If the license data changes, the license must be adjusted accordingly. For this purpose, the license holder must submit an amendment application to the RAE. This application will be decided upon within 60 days from its submission. The decision is also published and registered. In addition, cases are provided for which no amendment application is required, so for example, when the installed capacity or the maximum generation capacity of the plant connected to the system or grid increases by 10%. The exceptions regulated in Art. 3 Para. 5 nevertheless include a notification obligation.

2.1.1.5. Transfer of the Production License

The license holder may transfer their license to other natural or legal persons after obtaining the appropriate permission from the RAE, provided that all criteria mentioned in Art. 1 are met. The deadline for obtaining the Installation Permit is not extended by this!

2.1.1.6. The Installation Permit

Obtaining the Production License is a prerequisite for acquiring the remaining permits up to the connection to the grid. It does not exempt the license holder from obtaining all other permits provided for by the legislation.

The General Secretary of the Region is responsible for granting the Installation Permit. This must be issued within 15 days from the end of the review procedure. However, this review must have been carried out within 30 days from the application.

After the Production License has been granted by the RAE, the following licenses and documents must still be obtained for the granting of the Installation Permit:

1. An Offer for Connection to the Grid
2. Environmental Compatibility Decision (EPO)
3. A permit from the Forest Office, if necessary, as well as any other permit that is required for the rights of use to the land.

2.1.1.6.1. The Grid Connection Offer

The DESMIE (or the DEI) issues the connection offer within 4 months from the application, which becomes legally effective from the point in time when either the EPO decision or the corresponding negative certificate regarding the non-requirement of the environmental impact assessment (for plants up to 500 kW) is issued.

From the final offer issuance, the entitled person is obliged to take all other steps, namely the granting of the Installation Permit and the signing of the contract with the DESMIE. In addition, the corresponding amount for the grid connection conditions must, of course, be paid on time.

2.1.1.6.2. Environmental Compatibility (the so-called EPO – Decision)

For the issuance of the decision on the environmental compatibility of the plant in question (the so-called EPO), a comprehensive file and a so-called environmental study must be submitted to the competent authority. Other authorities are involved in this procedure, which must confirm to the decision-maker that there are no concerns about the construction of the plant in question. These certificates are issued in particular by the following authorities: the Office for Prehistoric and Classical Antiquities, the Office for Byzantine Antiquities, the Office for Modern Historical Antiquities, the Civil Aviation Authority, the Forest Office, the Agricultural Authority, the General Staff for National Security and the Tourism Authority.

The decision on environmental compatibility must be issued within 4 months from the submission of a fully comprehensive file, if the prerequisites are met. The file is considered fully comprehensive when no further documents are requested in writing within 20 days of the submission of the documents. The validity period of this decision on environmental compatibility (environmental conditions) is 10 years and can be extended once or twice for the same period if the application is submitted up to 6 months before the expiry of the validity period. Overall, it should be noted that the procedure for granting the decision on environmental compatibility (EPO) is now carried out within the framework of the procedure for granting the Installation Permit, which means it has been postponed.

The provisions regarding the EPO were amended again by Law 4014/2011, so that the relevant provisions must be observed accordingly during the implementation of the project.

2.1.1.6.3. Term of the Installation Permit

The Installation Permit is also published and is still valid for 2 years. The Installation Permit can also be extended once more for the same period if the legally stipulated prerequisites are met.

2.1.1.7. The Operating Permit

Finally, the Operating Permit must be obtained. The Operating Permit must be granted within an exclusive period of 20 days and has a validity period of 20 years for PV plants. Extension possibilities are also provided for here.

2.1.1.8. Transfer of the Plant (after commissioning and connection)

The transfer of the plant as well as the project rights is possible at any time after the commissioning and connection of the plant to the public grid.

In the event of a transfer of the plant, the new holder succeeds the old holder in the rights and obligations vis-à-vis LAGIE. In this case, the Production License is transferred to the new holder by a corresponding decision of the RAE. The competent authority also decides on the transfer of the Operating Permit.

However, the transfer of company shares in the operating company is also possible. In this way, ownership of the photovoltaic plant is also obtained, provided that the project operator is also the owner of the plant.

2.1.1.9. Register of the Ministry of the Environment

A register of the granted Installation and Operating Permits is also established and maintained at the Ministry of the Environment. The Production Licenses and any exceptions to this obligation are also kept in this register.

2.1.2. Plants with a capacity of up to 1 MWp

For plants with a capacity of up to 1 MWp, there are a number of exceptions that generally simplify and accelerate the approval procedure.

2.1.2.1. Exemption from the Obligation to Obtain a Production License

First, those project operators who wish to operate photovoltaic plants with a capacity of up to one (1) MW are exempted from the obligation to obtain a Production License. This applies to the entirety of the plants operated on a single plot of land by one and the same project operator. In the latter case, the remuneration is based on the total capacity of all plants, meaning that not every plant on the same plot of land is invoiced separately.

The responsibility for granting the project rights and for granting the grid connection (including the grid connection conditions) lies in these cases with the local electricity authority DEI. The application and the necessary documents must be submitted to this authority. After the grid connection conditions have been granted, the amount specified therein must be paid – in addition to some other prerequisites – so that the contract for the grid connection can subsequently be signed with the DEI.

When signing the contract with LAGIE, the latter authority verifies the ownership rights of the applying company to the land on which the plant is to be installed. In areas where energy generation is “saturated” / restricted, plants of the present category are preferably favored.

2.1.2.2. Transferability of the Plants

In the last category of plants up to 1 MW, it is further stipulated that these plants (!) may not be sold before their commissioning. As an exception, however, they can be sold to legal entities, provided that the share capital of the acquiring company is wholly owned by the transferring company. Subsequently, the System and Grid Operator (after application) must undertake all necessary activities for the connection of the plant, provided that no technical reason justifies refusal.

According to the partial opinion of the competent authorities, the project rights can also be transferred in these cases in the course of the transfer of the company shares of the project company to a third investor. This should also be possible before the connection and commissioning of the plant according to this view. At this point, however, it should be noted that this view is now considered obsolete and incorrect even by LAGIE, which means that in such a case there is a definite risk that an application for approval of the transfer will be rejected before the connection and commissioning of the plant. Therefore, prior consent from the authority should be obtained in any case before carrying out a transfer, or, better yet, the transfer of the shares should only be carried out after the connection of the plant. A prerequisite for such a case (the transfer of the plant before connection to the grid) would be that the tax number of the project company does not change. For this purpose, the procedures provided for by the competent authorities must be complied with. Until the connection of the plant, the local electricity authority DEI is responsible for the aforementioned procedures. After the connection and commissioning of the plant, the transfer of company shares and/or the change in the company structure is possible at any time and in compliance with the procedures provided for this purpose. The competent authority is now LAGIE.

One special feature must still be observed in the context of transfers: Licenses granted to farmers cannot be transferred for a period of 5 years. The only exception is succession by inheritance.

2.1.2.3. License Exemptions

It should be noted that the approval procedure for PV plants up to 1 MW has been significantly simplified and accelerated, meaning that the entirety of the licenses provided for projects from 1 MW is not required.

Consequently, there are a number of license exemptions for projects up to 500 kW.

The mere fact that the approval procedure in these cases was withdrawn from the responsibility of the RAE and placed directly under the responsibility of the DEI naturally promotes the shortening of decision-making channels.

Furthermore, the following simplifications must also be observed:

• The previous expert opinion on the initial assessment and initial evaluation of environmental compatibility is no longer a prerequisite.
• For those PV plants that are exempt from obtaining a Production License, no Installation Permit or Operating Permit needs to be obtained either.

The environmental impact assessment, including the issuance of the decision according to Art. 4, must fundamentally be carried out. Only PV open-field plants with a capacity of up to 500 kW and plants erected on buildings are excluded from this. In these cases, a corresponding certificate of exemption from this obligation must be obtained from the competent Region within 20 days. In the context of granting this certificate, in addition to the installed capacity, it is checked whether a plot of land is located in the NATURA 2000 area, or at a distance of less than 150 m from another field for which a permit has also been granted.

2.1.3. The Building Permit

For all photovoltaic projects, a Building Permit or a permit for carrying out small-scale construction activities, the so-called *eggrisi ergasion domisis mikris klimakas*, must also be obtained. These permits must be applied for at the local building authority. Here, particular attention must be paid to the respective current legal situation, as the prerequisites regularly change (by way of ministerial decisions). This fundamentally depends on the specific construction of the plant.

2.1.4. The Grid Connection Contract

Further essential milestones for the conclusion of the approval procedure and the commissioning of the plant (in both aforementioned cases) are the conclusion of the Grid Connection Contract with the DEI/DEDDIE as well as the signing of the Contract for the Sale of the Produced Energy with LAGIE. These contracts must be signed in all aforementioned cases.

2.1.4.1. The Payment of a Guarantee

Prior to this, however, it must be noted that in some cases a guarantee payment must also be made before – or upon – signing the Grid Connection Contract. For all plants for which a Production License is not required according to the above regulations, an exclusive deadline for connection is therefore stipulated in the connection contracts. Non-compliance with this deadline is associated with the forfeiture of the guarantee payment. This guarantee payment currently amounts to 150 €/kW and was decided with the Ministerial Decision Y.A.Π.E/Φ1/oik24839/25.11.2010. Excluded from this are those contracts which were already signed before the entry into force of this law, as well as those projects that have received a Production License. This guarantee payment will be refunded after the commissioning of the plant, which must be proven with a corresponding certificate from the authority. In these cases, a financing commitment from a bank or credit institution must also be submitted. Furthermore, the provisions of Law 4062/2012 must be observed here.

2.1.4.2. Conclusion and Signing of the Contract

The contract with the DEI/DEDDIE for the grid connection takes place

• after application by the project operator,
• after payment of the grid connection conditions,
• and, if applicable, after payment of the guarantee amount and submission of the financing commitment by the bank.

According to the new provisions of Law 4093/2012, the grid connection contract must be concluded within 3 months after the application is submitted (after the fully comprehensive file is submitted), provided that the plants do not require a Production License. For those projects for which the Production License is required according to the law, the aforementioned deadline is 6 months.

2.1.4.3. Obligations under the Contract

The network operators are thereafter obliged to carry out the activities and obligations for the connection of the plant assumed with the connection contract

1. within 12 months from the signing of the contract, provided that the plants are connected to the grid and no further activities at the feed-in point are required on the part of the network operator
2. within 18 months from the signing of the contract, provided that the plants are connected to the grid and further activities at the feed-in point are required on the part of the network operator
3. within 24 months from the signing of the contract, provided that the plants are connected to the system

In exceptional cases, an extension of these deadlines can be obtained.

2.1.5. The Contract for the Sale of the Produced Electrical Energy

2.1.5.1. Term of the Contract

The contract with the network operator for the sale of produced electricity is valid for a term of 20 years. An extension option is possible by mutual written agreement, provided the Production License is still valid.

2.1.5.2. Amount of the Feed-in Tariff

For those photovoltaic plants for which a contract for the sale of the produced electrical energy was concluded or an application (including a fully comprehensive file) for the conclusion of the relevant contract was submitted before the entry into force of Law 4093/2012, the amount of the feed-in tariff is determined by the date of the conclusion of the contract or the date of submission of the application, provided that the start of the trial run or, if no trial run is provided for, the activation of the connection takes place:

1. for a project up to 10 MWp within a period of 4 months from the publication of Law 4093/2012 (12.11.2012), or even earlier, provided that at that point the duration of 18 months from the signing of the contract expires,
2. for a project of more than 10 MWp as well as for a project up to 10MW for which the construction of at least one new feed-in point is required as part of the connection activities, within a period of 12 months from the publication of Law 4093/2012 or even earlier, provided that at that point the duration of 36 months from the signing of the contract expires.

If these deadlines are not met, the amount of the feed-in tariff is determined by the date of the first trial run or, if no period for a trial run is provided for, by the date of connection and commissioning of the plant.

2.1.5.3. The Current Feed-in Tariffs

The current feed-in tariffs for PV plants according to a new ministerial decision from January 2012 look as follows:

	Interconnected System		Non-Interconnected
	A	B	C (regardless of capacity)
	>100 kW	≤100kW
2012 August	180,00	225,00	225,00
2013 February	171,90	214,88	214,88
2013 August	164,16	205,21	205,21
2014 February	156,18	195,97	195,97
2014 August	149,72	187,15	187,15
For every year from 2015 and onwards	1,3xμΟΤΣν-1	1,4xμΟΤΣν-1	1,4xμΟΤΣν-1

An adjustment of the tariffs by 25% is made every year based on the consumer index of the previous year.

The aforementioned feed-in tariffs apply to those projects for which either no application for the signing of the contract for the sale of electrical energy was submitted until the publication of the relevant decision, or for which a corresponding fully comprehensive application was submitted, but the first trial run or, if no trial run is provided for, the activation of the connection did not take place within the 18 or 36 months, respectively, from the signing of the contract.

2.1.6. Further Important Changes and Novelties:

2.1.6.1. Offshore Plants

Offshore plants are to be increasingly promoted according to the new draft law and are therefore at the heart of the new introductions of Law 3851/2010. For this reason, a public bidding procedure is also to be carried out for the latter. The license for these plants is granted by the Minister of the Environment. The individual prerequisites for installation and commissioning are specified in ministerial decisions. The environmental compatibility procedure must also be carried out for these plants.

2.1.6.2. The Redistribution of the Special RES Fee

An important change is also the redistribution of the special RES fee (3%). Accordingly, a considerable proportion of the income from this fee (1/3) is to be allocated, on the one hand, to the local budgets of the respective municipality in which the operation of project plants has been approved, and partly to the municipality itself. Essentially, therefore, lower electricity bills are to be issued in the municipalities where the installation of parks has been approved. The remainder of the income from the RES fee is to be allocated to the Special (“Green”) Fund for the implementation of regulatory and environmental plans. In the context of this legislation, the aspect of municipal economic development, environmental protection, and social support thus gains particular importance.
The operators of plants are exempted from paying this fee.

2.1.6.3. The Peculiarities with Agricultural Land with High Agricultural Use

On land areas that were previously classified as agricultural land with high agricultural use, investment and installation of a plant is possible under certain conditions. The permit is only granted in these cases if no more than 1% of these areas in the respective prefecture are used for the operation of such plants.

2.1.6.4. Rooftop Plants

Separate regulations have also been included for the installation of rooftop plants, but these must be taken into account separately.

2.1.7. Summary

In summary, it can thus be stated that the following positive changes have been established with the present law:

• The direct licensing by the RAE as well as the establishment of binding and shortened deadlines for the public administration.
• Reduction of the bureaucratic procedure from 36-60 months to 8-10 months.
• The founding of an independent authority affiliated with the Ministry of the Environment for the promotion of investments from RES in the form of “One Stop Shops”.
• Licensing is separated from the procedure for granting environmental conditions and now only takes place in a second stage. The Production License must be granted by the RAE within two months of application. Plants with limited capacity are excluded from this.
• The previous environmental procedure, which consisted of two procedural stages, is now unified in one procedure.
• For large projects, the Fast-Track Law must also be observed (Law 3894/2010), which provides for the support and acceleration of the approval procedure.

(Status: January 2013. All information provided without warranty or liability.)