EC nods to EUR-1.4bn renewables support plan for Greek islands

The European Commission (EC) has approved EUR 1.4 billion (USD 1.59bn) in state aid by Greece for an incentive scheme that will support renewable energy deployment across 47 Greek islands.

The support programme envisages the islands’ 29 autonomous non-interconnected electricity systems to be backed by hybrid renewable power projects, such as solar or wind plus storage, to be awarded mostly through tenders. The initiative is expected to result in the construction of 264 MW of new renewable power generation capacity by end-2026, the EC said on Wednesday.

The EC highlighted the urgent need for additional renewable energy capacity on Crete, the largest of the group. Due to the risk of power supply shortages there, priority will be given to projects in the most advanced stages. They will be incentivised through “sliding” feed-in premium payments, which generators will get to cover the gap between power production costs and wholesale electricity prices.

Currently, the 47 islands are not connected to the Greek mainland and produce most of their power from diesel and oil. They will be backed by the scheme until their eventual connection to the mainland Greek network.

(EUR 1.0 = USD 1.132)

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