The energy sector in Greece, particularly renewables, has seen significant foreign direct investment in recent years. This is on the back of developing bilateral and trilateral agreements with not only western countries, but also middle eastern countries as well as Israel. Greece is well placed geographically to act as a conduit for Europe, the East and West with respect to energy.
In addition, as a direct result of Greece’s geographic nature, there is significant potential for a range of renewable energy types including wind, hydro, biomass, solar and solar thermal. Large scale infrastructure projects also offer significant investment potential including hydrocarbon exploration.
Here at Tsaks Consulting, we have experience in the PV and Solar sector, and have also advised a range of other energy and renewable companies on their operations in Greece including navigating relevant regulation and licensing requirements.
Characteristics of the Greek Energy System
The Greek energy system has undergone substantial change in recent years. Key trends include:
- There has been a general decrease in the consumption of standard fuels.
- The decrease, but still substantial dependency, of crude oil.
- A substantial increase in RES electricity production. This is supported by the increased consumer focus on RES and the adoption throughout Greece of renewable energy solutions on a small scale (residential solar hot water systems).
The substantial expansion and growth of the Greek energy sector is largely driven by:
- Regulation and focus by the EU on the adoption of renewable energy sources. This includes the 35% by 2030 EU policy.
- The privatisation of substantial, large scale government energy assets.
- The adoption of energy efficiency technologies such as smart grids, LED lighting and energy efficient building regulation and incentives.
- The potential for Greece to become an energy ‘hub’ including leveraging on projects such as the EuroAsia Interconnector and the TAP-IGB-EastMed gas pipeline.
Benefits of investing the Greek Energy and Renewable (PV) sector
- Greece’s geographic location is key. There is significant scope for Greece to connect the east and west through pipeline and other projects.
- Greece’s climate lends itself to the development of solar (PV) projects. There are approximately 3,000 hours of sunlight a year and substantial wind capacity across the country.
- A supporting and highly active Government. The energy investment regulatory framework has been recently upgraded and the Government has a track record of delivering large scale projects as well as efficiently reviewing and approving RES projects.
Our Tsaks Consulting team assists clients to navigate the licensing requirements for Renewable Energy Projects. We are able to assist our clients with:
- Penetrating the Greek RES market including product sales and distribution.
- Purchasing and privatising state assets.
- Investing in new infrastructure projects.
- Submitting for and participating in international public tenders for hydrocarbons.
- Conduct feasibility studies in, and commencing renewable energy projects (with a specialisation in Solar, but also wind and other renewable projects.
Funding and investment in the Greek energy sector
The increase in and adoption of renewable energy by the Greek consumer market has been a key driver to Greece achieving it’s CO2 emissions targets. The government has developed favourable legal and financial conditions and regulations to attract investment in the sector.
The licensing procedures for energy production through renewable sources has been streamlined making it easier to pursue a range of projects including photovoltaic systems, wind farms, geothermal electricity, biomass and marine energy. Key features of the regulation include:
- The revision of the RES licensing framework in order to simplify and streamline the process. This follows the acknowledgement by the Ministry that regulatory delays are having a detrimental flow-on effect to RES project investment.
- The introduction of the new licensing code on 1 December 2020. This was critical in preventing territorial overlaps or RES projects. An issue that has arisen in the past and needed to be dealt with in order to prevent disputed and provide certainty for investors.
- A recent amendment to the definition of ‘strategic investments’ with respect to energy investments and the allocation of incentives to ‘strategic investments’ such as tax incentives, fast tracked licensing processes and government funding (grants). Innovation is critical to being granted strategic investment status. Innovation projects are generally related to:
- Energy storage projects
- The production of green hydrogen
- Laying submarine cables
- The development of offshore wind farms
- RES production systems
- The introduction of laws specifically designed to drive the adoption and development of Renewable Energy Storage Systems.
Our team at Tsaks Consulting advise overseas companies looking to develop Renewable Energy Projects in Greece with:
- Feasibility analysis.
- Project Management
- Regulatory and licensing applications.
Contact us to discuss how we can assist with your next project.