Electricity Generation from Renewable Energy Sources in Greece (Law 3468/2006 — Current Legal Framework)

Note on Historical Context:

Laws 3468/2006 and 3851/2010 formed the basis for the development of renewable energy (RES) in Greece and provided high, fixed feed-in tariffs. This framework has, however, been abolished for new projects. Today, the market is governed by Law 4414/2016 (operating aid / feed-in premium), Law 4685/2020 (simplification of the permitting procedures), Law 4951/2022 (modernisation of the procedures) and Law 5037/2023.

Pricing and Remuneration of RES Projects (Support Mechanism)

The old system of fixed feed-in tariffs (which for photovoltaics reached up to €500/MWh) has been replaced. Under Law 4414/2016, new RES projects (from a certain capacity threshold, e.g. 500 kW or 1 MW depending on the technology) are remunerated through a sliding market premium (Feed-in Premium – FiP).

• Competitive procedures (tenders): the “tariff” (reference price) is no longer set arbitrarily by law, but results from competitive tenders held by the Regulatory Authority for Waste, Energy and Water (RAAEY). Current prices resulting from the tenders for wind and photovoltaic installations generally range between €40 and €70/MWh.
• Bilateral agreements (PPAs): meanwhile, many large RES projects no longer seek state support, but instead conclude long-term power purchase agreements (Corporate PPAs) directly with large consumers.

Support for Photovoltaic Installations and New Targets (NECP)

The old target programme through 2020 is outdated. Greece follows the revised National Energy and Climate Plan (NECP – Greek: ESEK), which sets extremely ambitious targets for 2030 (a share of RES in electricity generation of over 80%).

• Self-consumption: the focus is now on net billing (simultaneous offsetting) on the basis of Law 5037/2023, which is progressively replacing the previous net metering.
• Storage: particular weight is now placed on hybrid projects and PV installations coupled with storage systems (batteries – BESS) in order to stabilise the electricity grid.

Producer Certificate (Formerly the Production Licence)

Law 4685/2020 abolished the old, lengthy “production licence”. It was replaced by the certificate for producers of electricity from RES.

• The procedure has been fully digitalised. Applications are submitted electronically, in defined cycles, in the RAAEY (formerly RAE) register.
• Low-capacity projects (e.g. PV under 1 MW) are generally exempt from the obligation to obtain a producer certificate (exempt installations).

Environmental Permits

Depending on the project category (A1, A2 or B), a decision approving the environmental conditions (AEPO) from the Ministry of Environment and Energy (YPEN) or the competent decentralised administration is required, or subjection to standard environmental conditions (PPD). Many small projects (in particular PV on buildings or small parks) are entirely exempt from the environmental permit.

Installation and Operating Licence (Law 4951/2022)

The following is required for the construction and operation of the installations:

• Installation permit: issued by the competent decentralised administration (or by YPEN for very large projects) and generally valid for three (3) years. A mandatory precondition is securing a final connection offer from the distribution network operator (DEDDIE) or the transmission network operator (ADMIE).
• Operating licence: issued after completion of the construction works and successful trial operation of the installation. A large number of small projects are exempt from these licences.

Sale / Operating Aid Agreements

The body responsible for purchasing the energy and paying the aid is no longer DESMIE, but DAPEEP (Renewable Energy and Guarantees of Origin Operator S.A.) for the interconnected grid, and DEDDIE for the non-interconnected islands (MDN).

• The producer concludes with DAPEEP either a sliding market premium agreement (SEDP) or a fixed-price agreement (SEST).
• The term of these agreements is now twenty (20) years (and 25 years for solar thermal installations), rather than 10+10 years as under the old law.

Guarantees of Origin

The origin of electricity from renewable sources is evidenced exclusively through guarantees of origin (GOs). The exclusive body for issuing, transferring and revoking guarantees of origin in Greece is now DAPEEP, which administers the corresponding digital register in accordance with the European directives.