Greece cuts support to solar energy

Claiming to aim at restoring liquidity in the electricity market, the Ministry of Environment, Energy & Climate Change halted the approval procedure for all solar power projects, excluding only those large investments that are promoted under fast-track procedures and roof-mounted PV installations - the latter having already suffered, however, a 46% reduction in support tariffs.

Critics of the Ministry’s announcements argue that the measures fail to effectively counter the electricity market problem, also due to their long-term nature. They will succeed, however, in increasing uncertainty among investors and, subsequently, putting thousands of jobs at risk, while also affecting tax revenues. According to Greek solar power producers associations, the measures included in the said “salvation package” have not taken into account the current market conditions (eg the increasing inability to fund projects), the high interest loans etc.   

A second set of measures is expected soon, a main provision of which will be taxation on the annual turnover of all RES projects.

Sources: Ministry of Environment, Energy and Climate Change  (in Greek), PV Magazine.

Last modified onThursday, 04 May 2017 16:12
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