The European Commission has greenlighted €1 billion worth of Greek initiatives aimed at bolstering renewable energy generation and storage within the country. These measures are aligned with Greece’s climate and energy objectives and support the broader European Green Deal and ‘Fit for 55’ agenda.
Greek Renewable Projects
Greece’s proposal outlines support for two significant ventures. The Faethon Project focuses on constructing two 252 MW photovoltaic units paired with molten-salt thermal storage and a high-voltage substation. Meanwhile, the Seli Project entails a 309 MW photovoltaic unit with an integrated lithium-ion battery storage system. Both projects aim to enhance energy generation efficiency and grid stability.
Financial Mechanism
Beneficiaries will engage in a twenty-year contract for difference arrangement. This mechanism ensures stability for renewable energy producers by offering a minimum return while balancing fluctuations in market prices. Financial support will be disbursed annually over two decades.
These initiatives are projected to boost Greece’s annual renewable energy output by approximately 1.2 TWh, accounting for a 2.1% increase compared to 2020 levels. Moreover, they are expected to amplify renewable energy production by 8% and enhance grid stability.
Commission’s Evaluation
The European Commission evaluated these measures under EU State aid rules, ensuring alignment with environmental targets and minimal competition distortion. Approval was granted based on the necessity of aid to drive decarbonization efforts and its limited impact on competition within the EU.
Context and Background
The approval aligns with the Commission’s 2022 Guidelines on State aid for climate and energy, emphasizing flexibility and alignment with EU objectives. With energy storage emerging as a critical solution for future energy systems, these projects mark a significant step towards achieving Europe’s net zero emissions goal by 2050.
The endorsement of Greek renewable energy initiatives underscores the EU’s commitment to advancing green energy policies. By fostering innovation and investment in solar technology and storage, Greece and the EU move closer to a sustainable and resilient energy future.
Source：miragenews.com
