Promotion of Electricity Generation from Renewable Energy Sources and Cogeneration according to Greek Law N. 3468/27.06.2006 (which was subsequently modified in June 2010 by Law 3851/2010)

Note 1: Law 3468/06 was modified in June 2010 by Law 3851/2010, which is therefore the basis for the application procedure and the amount of the feed-in tariff today. However, since permits under the provisions of Law 3468/06 are still in circulation today, being traded and sold on the Greek market, we continue to consider the following statements regarding Law 3468/06 prior to the modification by Law 3851/2010, as expedient and necessary.

With Law 3468 of 27.06.2006, the Greek government implemented Directive 200l177/EC of the European Parliament and of the Council of September 27, 2001, “On the promotion of electricity production from renewable energy sources in the internal electricity market” (Official Journal L 283) into national law. As the brief overview below shows, Greek Law N. 3468/27.06.2006 “On the Generation of Electricity from Renewable Energy Sources (RES) and High-Efficiency Cogeneration of Heat and Power (HECHP)” provides interesting incentives for relevant projects utilizing renewable energy sources and, in this context, regulates, among other things, the awarding of licenses and the conditions for the generation and feed-in of electrical power from renewable energy sources.

Note 2: This article is also available for download in PDF format under the title Electricity Generation from Renewable Energy Sources and Cogeneration according to Law 3648/27.06.2006.

1. Prices for Electricity from RES, HECHP, and Hybrid Power Plants

Article 13 of Law N. 3468/27.06.2006 stipulated the prices for the feed-in or purchase of electrical energy from RES or HECHP power plants and from hybrid power plants, according to which the remuneration for the electricity is to be determined based on the price per megawatt-hour (Euro/MWh) that is fed into the System or Grid or into the grids of islands not connected to the mainland network. The determination of the electricity price in the cases concerned is always based on the specifications of the table below.

Type and source of electricity generation		Energy Price (EUR/MWh)
		Interconnected System	Non-Interconnected Islands
a)	Wind energy	73	84.6
b)	Wind energy from offshore wind farms		90
c)	Hydropower energy, utilized by small hydropower plants with an installed capacity of up to fifteen (15) MWe	73	84.6
d)	Solar energy, utilized by photovoltaic units with an installed capacity of > / = one hundred (100) kWpeak and installed on real estate owned or lawfully possessed or on adjacent real estate of the same owner or lawful possessor	450	500
e)	Solar energy, utilized by photovoltaic units with an installed capacity of over one hundred (100) kWpeak	400	450
f)	Solar energy, utilized by units with technology other than photovoltaics, with an installed capacity of up to five (5) MWe	250	270
g)	Solar energy, utilized by units with technology other than photovoltaics, with an installed capacity of more than five (5) MWe	230	250
h)	Geothermal energy, biomass, landfill, sewage, and biogas	73	84.6
i)	Other renewable energy sources	73	84.6
j)	High-efficiency cogeneration of heat and power	73	84.6

The prices specified in the preceding table for self-generators apply only to RES and HECHP power plants with an installed capacity of up to 35 MW and for the electricity surplus made available to the System or Grid. This electricity surplus may correspond to a share of up to 20% of the total electricity generation (on an annual basis) of these power plants. The purchase prices for electricity generated in power plants connected to the low-voltage network are determined every four (4) months.

2. Promotion of Photovoltaic Plants (PV Plants)

To promote electricity generation by photovoltaic power plants, the RAE shall draw up a support program for photovoltaic power plants, which shall be approved by the Minister of Development. This program, whose first implementation phase begins with the entry into force of the present law and ends on 31.12.2020, concerns the development of photovoltaic power plants located in Greek territory with:

a) a total capacity of at least 500MWpeak, for power plants connected directly or via the grid to the electricity system, and

b) a total capacity of at least 200 MWpeak, for power plants connected to the grid of islands not connected to the Interconnected System.

By a decision of the Minister of Development, issued at the request of the operator of the non-interconnected islands and the corresponding opinion of the RAE, the capacity of 200MWpeak mentioned in the preceding paragraph is allocated to the individual independent electricity systems of the non-interconnected islands according to their potential. The same decision specifies the form, content, and conclusion procedure for the contracts for the purchase of electrical energy generated by the photovoltaic power plants, as well as the procedure for the connection of the respective power plants, the determination of the program’s termination, and generally all other special issues and necessary details related to the operation of these power plants within the framework of the program.

The calculation of the price for the electricity generated by photovoltaic power plants within the framework of the support program and fed directly or via the grid into the System or into the grid of islands not connected to the Interconnected System is carried out according to the data in the table of Article 13 above. After the start of the support program, these prices may be modified within the framework of the program’s target objectives and after a corresponding opinion from the RAE, by a decision of the Minister of Development.

3. License for Electricity Generation from RES and HECHP

A prerequisite for electricity generation from RES and HECHP is the granting of a corresponding Generation License. This license is issued by the Minister of Development, after a corresponding opinion from the Regulatory Authority for Energy (RAE) based on the prerequisites mentioned in Article 3 of the Law.

4. Licensing Procedure

To obtain a Generation License (as well as for its amendment or revocation), a corresponding application along with certain documents must be submitted to the RAE. The Environmental Impact Assessment (VUUV) must be attached to the application for the Generation License. A copy of the application and the annexes, as well as any other document submitted to the RAE, are delivered to the Minister of Development at the instigation of the applicant. The decision issued in accordance with paragraph 3 specifies those details of the application and the RAE’s opinion based on which the application is to be assessed, as well as those details of the application and the opinion that are to be published on the Internet or in any other appropriate manner at the instigation of the RAE. A report documenting the application of the necessary criteria is attached to the RAE’s opinion.

5. Operating Permit for Electricity Generation Plants

For the construction or operation of a power plant for electricity generation from RES and HECHP, a corresponding Permit is required. This Permit is issued by decision of the Secretary-General of the Region within whose boundaries the power plant is located, for all projects belonging to the 2nd sub-category of Category A or the 3rd and 4th sub-categories of Category B of the Law, in accordance with the regulations of Article 3 of Law 1650/1986 (Government Gazette 160 A) in its valid version and the legal regulations issued by its authorization. The issuance of the Installation Permit occurs within an exclusive period of fifteen (15) days from the submission of the corresponding application along with the documents specified according to paragraph 10 by the interested party. The Installation Permit is valid for two (2) years and can be extended for a maximum of the same period upon application by its holder under certain conditions.

6. Electricity Purchase Agreement according to Article 12

For the inclusion of power plants for electricity generation from RES and HECHP in the System or Grid, including the grids of islands not connected to the Interconnected System, according to Articles 9 and 10, either the System Operator (for power generation plants connected directly or via the grid) or the Operator of the Grid of a non-interconnected island (for power generation plants connected to the grid of islands not supplied via the Interconnected System) is obliged to conclude a contract for the purchase of electrical power with the holder of the electricity generation permit.

The contract for the purchase of electricity is valid for a period of ten (10) years and can be unilaterally extended by the producer for a further ten (10) years by written declaration, provided that this declaration is submitted at least three (3) months before the expiration of the original contract. The purchase contract for electrical power generated in hybrid power plants is valid for a period of twenty (20) years and can be extended in accordance with the conditions of this permit by written agreement of the contracting parties, provided that the corresponding generation permit is valid.

7. Guarantee of Origin – Issuing Authority according to Articles 15, 16

The origin of the electrical power generated in lawfully operating power plant facilities by utilizing renewable energy sources (RES) is proven by the producers solely through the Guarantees of Origin issued by the authorities named in Article 16. These certificates define the source of electricity generation and specify the date and place of electricity generation, and for hydropower plants, also the capacity of these power plants. The following are designated as the issuing authorities for the certificates of origin:

a) The System Operator for the electricity fed directly or via the grid into the System,

b) The Grid Operator of non-interconnected islands for the electricity fed into the grid of non-interconnected islands,

c) K.A.P.E. (Center for Renewable Energy Sources) for the electricity generated by independent power plants that do not supply the grid or the system. For this purpose, the K.A.P.E. installs the appropriate measuring equipment at the expense of the producer requesting the issuance of the certificate of origin.

(Status: Beginning of 2007, with the exception of Note 1, which is Status 2011. All information is provided without warranty or liability)