EC clears funding for 680-MW pumped storage project in Greece

The European Commission (EC) has greenlighted the financing plan for a 680-MW pumped storage hydropower complex in Greece, proposed by domestic renewable power producer Terna Energy (ATH:TENERGY).

The construction and operation of the pumped storage station will be partly funded with a EUR-250-million (USD 282.5m) investment grant coming from Greece’s Recovery and Resilience Facility, the EC said on Monday. An annual support will be also received from a levy on electricity suppliers.

The proposed complex will be located in Amfilohia, northwestern Greece, and will be directly connected to high-voltage transmission lines. Local media previously reported that the facility will have two independent upper reservoirs, Agios Georgios and Pyrgos, and will use Greek utility PPC’s existing common lower reservoir, Kastraki Lake. Its construction is expected to take four years.

According to the EC, the financial aid is necessary, while its level corresponds to the effective financing requirements. In its decision, it said that “the positive effects of the measure outweigh any potential distortion of competition and trade brought about by the support.”

The project is included in the list of European Projects of Common Interest in the energy sector.

(EUR 1.0 = USD 1.130)

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