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WindEurope to Greece: Accelerate licensing, reintroduce wind energy auctions

WindEurope has advice for Greece to accelerate wind power installations, given the country’s sluggish performance.

WindEurope expects Greece to add 300 MW of wind capacity in 2025, after 152 MW came online in the first six months. It is an improvement from the mere 108 MW of the entire 2024, but still far below previous years. For example, in 2023, the country added 544 MW of wind power. WindEurope’s Director of Advocacy and Messaging Viktoriya Kerelska has suggested solutions to increase the pace.

Greece needs to integrate the latest version of the European Union’s Renewable Energy Directive – RED3 – to facilitate faster and simpler licensing, she said at the Renewable and Storage Forum in Athens.

Other member states are behind schedule with the legislation as well. The European Commission opened infringement procedures in July by sending letters of formal notice to 26 of them – all except Denmark.

Kerelska: Do it like Germany

Furthermore, WindEurope believes that the concept of superior national interest must be applied in Greece, according to Kerelska.

Based on European law, it would allow easier wind farm deployment, while overriding unjustified public reactions that delay the process.

Kerelska added that Germany already applied the principle with great success.

Power purchase agreements (PPAs) are underutilized in Greece.

Therefore, the country should reintroduce wind power auctions, which it held until 2022, for support under contracts for difference (CfDs), according to the association.

One last issue is the delay in the national offshore wind program, which the government has not submitted yet to parliament for adoption, Kerelska noted.

HWEA: Time is running out

Easy times for renewable energy are over, Chairman of the Hellenic Wind Energy Association (HWEA or ELETAEN) Panagiotis Ladakakos said. The sector faces difficult decisions and potential hidden costs, while time is running out to make changes in the regulatory and legal framework, he claimed.

HWEA called on the government to introduce a curtailment allocation mechanism within which curtailed energy would be calculated. Namely, the cuts are not spread evenly, and wind farms connected to the transmission network suffer higher costs. The government has promised to introduce a mechanism by the end of 2025.

The organization said energy storage facilities should be able to have joint grid connection points with renewable energy plants. It referred to projects where the battery’s capability or operating power can be as high as the installed capacity for electricity production.

HWEA added that Greece requires to enact its national offshore wind plan and a special purpose vehicle (SPV) to carry out offshore studies. Moreover, it urged for the development of a new renewable energy spatial plan and more incentives for consumers in areas hosting renewable energy plants.

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Greece’s energy transition at risk amid gridlock with batteries, new tech

An overreliance on photovoltaics, combined with slow growth in the deployment of new technologies and storage, threatens Greece’s renewable energy future.

The country achieved rapid growth in renewable energy in the past five years, and penetration has surpassed 50% of the electricity mix.

However, the very success of the energy policies also led to significant issues that the government must address to achieve its 2030 goals.

Curtailments slashing profits as storage lags

This year, curtailments doubled from 2024, alongside a rising number of hours of zero or negative prices in the day-ahead market (DAM). It means that producers are subject to a loss of profits. Some investors have exited the Greek market as a result of worsening conditions.

At the same time, there is a huge licensing queue, as more than 15 GW of projects have acquired connection terms from the network operators. This is more than enough to cover the country’s 2030 goal and even beyond.

Energy storage is expected to provide a solution to curtailments and zero pricing. However, the first standalone battery projects have been pushed back nine months, as the original deadline was deemed too strict. Developers are competing against time to secure European funding through the Recovery and Resilience Facility (RRF), via the National Recovery and Resilience Plan Greece 2.0.

Energy mix diversification needed

Photovoltaics dominate the energy mix and this year they are expected to surge by 2 GW. There is growth in every segment of the solar market, although small investors complain of a preferential policy towards larger players. This is especially evident in the case of energy communities and farmers‘ photovoltaics, where such issues are abundant.

Wind installations have stalled in recent years and the offshore wind program has not made any progress towards the 2030 goal. The European Commission warned that investments in carbon capture and storage (CCS) are in danger of losing RRF funding at the current pace. Pilot projects in hydrogen are advancing, but it remains uncertain when they will become operational and at what scale.

The special renewables account turned red this summer, with an ever-growing deficit. There is also uncertainty surrounding projections about the country’s future electricity demand. Sales of electric cars and heat pumps are lagging behind the European average, while large data centers are seen as a way to increase consumption and support more power production.

All these issues mean that Greece may not achieve all its 2030 goals from the final National Energy and Climate Plan (NECP). The country initially presented a highly ambitious first version, but later reduced it to keep costs low for consumers.

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Nine times more licenses in Greece than grid capacity

Licensed renewable energy projects in Greece currently stand at about 90 GW. New submissions have been falling sharply.

According to latest data from the Regulatory Authority for Energy, Waste and Water (RAAEY or RAEWW), a total of more than 110 GW has been licensed across all renewable technologies. Photovoltaics have the lion’s share, with 74.4 GW and wind followed with 25.1 GW.

The regulator has already paused or cancelled 41.8 GW of immature or frozen investments, bringing the active total to 76.9 GW. It includes 29.8 GW in wind farms and 44.8 GW in all types of solar.

There also also investments in renewables plus storage, which amount to about 24 GW at various stages. It means that now 92 GW of renewable electricity projects have permits. There is 15 GW in operation, 15 GW with final connection terms, and another 50 GW waiting in line after completing the first regulatory steps. The rest is still at the initial stage.

RAAEY also said available space in the grid is currently 19 GW and that is expected to reach 30 GW by 2030. Therefore, the ratio between potential projects and what the grid can accommodate is about nine to one.

Applications slow down to a trickle

The congestion has been noticed by investors, who have significantly slowed down their applications in recent years. RAAEY’s head of renewable energy and storage Ioannis Charalampidis recalled that in the licensing cycle of December 2020, projects representing 45.5 GW were submitted. This June they were only 1.2 GW.

It is especially evident in photovoltaics, where applications fell from 36.3 GW to some 50 MW. Wind is also affected, with 65% less capacity in submissions than last year

In addition to the large licensing queue, the sector faces delays and red tape. More than three years have passed since the last auction for subsidized renewables projects, from which about 1 GW has not yet been completed.

The sector raises red tape and competition issues

The issue was raised, at RAAEY’s conference last week, by Hellenic Wind Energy Association’s (HWEA or ELETAEN) General Director Panagiotis Papastamatiou. He said the problem lies with small local governing bodies, which either lack the means or the will to do their job properly. He called for centralization, so that one public body can handle the necessary permits.

POSPIEF: “Genocide” for smaller producers

The Hellenic Photovoltaics Union (POSPIEF), which represents small and medium solar investors, spoke of “genocide” in the sector. Chairman Giannis Panagis accused the government of only supporting large producers, leading to distortion of competition and a wave of smaller projects being abandoned or sold. He added that big players enjoy benefits, such as extensions, while small ones are pushed out of the market.

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Wind installations in Greece remain low this year as new applications drop

WindEurope expects Greece to add 300 MW of wind capacity in 2025, after installing 152 MW during the first half of the year.

This is an improvement on the mere 108 MW added in 2024, but still far below previous years. For example, in 2023, the country added 544 MW of new wind farms.

According to the European wind industry association’s latest report, Greece is expected to install more wind farms from now on, with 490 MW in 2026 and 350-450 MW each year until 2030.

Cumulative installed capacity currently stands at 5,506 MW

Cumulative installed capacity currently stands at 5,506 MW and is projected to reach 7,480 MW by the end of this decade. This is not enough to meet the National Energy and Climate Plan’s (NECP) goal, which calls for 8,900 MW.

At the same time, WindEurope expects zero offshore installations, as efforts to develop this sector have been delayed despite a national goal of 1.9 GW by the beginning of the next decade.

The report also highlights that applications for new wind farms dropped 65% this year, from 618 MW to just 214 MW.

Support measures still absent

The Greek government has identified wind energy development as a priority from now on. Currently, the energy mix is dominated by photovoltaics, leading to high curtailments and an anomalous production curve.

The idea is to promote wind investments through regulatory changes, such as a higher priority in the connection queue. Furthermore, Greece must fully apply the European directive for a simpler licensing process. The European Commission recently announced that Greece would face referral to the European Court if it delays any further.

Recently, there have been cases of companies leaving the Greek market, which has raised concerns regarding investment profitability.

Therefore, there is much to be done for the sector in the coming months and years to reverse the course and increase installations.