The ambitious Apollo program, which the Greek government outlined in late 2023, is losing EUR 100 million. The European Union earlier approved the grant for investments in renewable energy and storage, intended to lower energy costs for vulnerable consumers through self-consumption.
The first phase of the Apollo program was envisaged to help vulnerable households. It aimed to support renewable energy projects, through auctions, of 400 MW to 500 MW overall, combined with battery systems.
Each of Greece’s 13 regions, also known as peripheries, would get a green power plant, and eligible consumers who join a local energy community get discounted electricity bills. Therefore, the program is in the form of virtual self-consumption. It is the first of its kind in the region that Balkan Green Energy News tracks.
Apollo fails to take off on time
The scheme was supposed to benefit from an EUR 100 million grant from the European Union’s Recovery and Resilience Facility (RRF). It is implemented via the National Recovery and Resilience Plan Greece 2.0.
However, Apollo was significantly delayed and now the deadlines are considered impossible to achieve, even if they are extended. It means RRF funds are going to be lost. Energypress reported that they have already been removed from the budget.
Namely, the issue is with the batteries. Now their costs would have to be covered entirely by the producers. In turn, they are expected to lock higher prices in Apollo’s auctions, possibly passing them on to end consumers and making the whole initiative less effective at combating energy poverty.
It should be noted that the rest of Apollo remains intact for the time being, despite the setback. The loss of funds concerns household consumers with special tariff A. Funding is still available, in theory, for the other category of vulnerable households, defined by different income criteria.
The entire initiative also aims to lower energy costs for municipal authorities, water utilities and irrigation associations. They haven’t been affected so far.
Standalone battery plants also at risk
Another Greek initiative, for subsidized standalone battery plants, faces very short deadlines. It is eligible for EUR 341 million in RRF funding. In total, projects for 900 MW overall have been selected through three auctions.
The first wave of investors should declare connection readiness this month, so their facilities can become operational by the end of 2025.
HAESS: Selected projects may not receive support
They have complained of a lengthy licensing process and logistical difficulties. The investors asked the Ministry of Environment and Energy for an extension.
In July, the Ministry of Finance submitted a request for the sixth RRF tranche, EUR 2.1 billion in grants, after completing 39 more targets. If it is approved by the administration in Brussels, Greece will have secured EUR 23.4 billion overall, or 65% of allotted funds.