One of the most crucial distinction with regard to RES in Greece is between mainland grid and interconnected islands and non-interconnected islands. Interconnected islands are primarily islands that are connected to the mainland transmission and distribution grid. Non-interconnected islands concern isolated electricity systems, not connected to the mainland grid. This differentiation is crucial as it differentiates the kind and level of support, for which RES plants are eligible.
In general, RES technologies are promoted with different support schemes. Firstly, Law No. 4399/2016 supports through subsidies/ tax reliefs for specific RES technologies. A Feed-in Tariff is offered to small-scale RES (below 400 kW on interconnected islands, below 3MW for onshore wind and below 500 kW for PV and all RES on non-interconnected islands). In addition, RES on interconnected islands that participate in the electricity market may benefit from a Feed-In Premium tariff, while bigger PV (>500kW) and onshore wind plants (> 3MW) can take part in tenders. Finally, a net-metering scheme is also introduced for all RES plants, especially PV and onshore wind < 60kW.
According to the NECP, Greece aims at increasing the overall share of renewable energy sources (RES) in its gross final energy consumption to 35% by 2030. In the electricity sector, the share of renewables will rise to at least 60% (NECP).
Summary of support system
- Subsidy (Development Law) – Subsidy is offered to small hydro power plants, CHP plants, hybrid plants and other RES only for autonomous production.
- Tax regulation mechanism (Development Law) - Tax relief is offered to small hydro power plants, CHP plants, hybrid plants and other RES only for autonomous production.
- Feed-in tariff - RES plants below 400 kW on interconnected islands and all RES on non-interconnected islands are eligible for a Feed-In Tariff
- Premium tariff (Feed-In Premium) - RES and CHP plants on interconnected islands participate in the electricity market and may be awarded with a sliding feed-in premium.
- Tenders / Auctions (Competitive PV/Wind Tenders) - Greece carries out “technology-specific tenders” (for wind and PV plants jointly or separately) since 2016. From 2018 onwards, 2 tenders for each RES technology and one joint tender for both technologies have taken place.
- Net-Metering (Net-metering and virtual net-metering) - Net-metering is applicable to all RES plants since 2019. Additionally, non-profit legal entities are eligible for virtual net-metering. The net-metering process is similar to interconnected and non-interconnected islands. However, restrictions apply to both cases, with regard to the maximum capacity of each RES plant.