Greece’s Production Of Electricity From Renewable Energy Receives European Commission Funding

A scheme by Greece to expand the production of electricity from renewable energy and combined heat and power (CHP) will be supported by €2.27 billion ($2.58 billion) in funding from the European Commission.

The scheme will enable Greece to expand its capacity from onshore wind, photovoltaic, wind, and solar with storage, biogas, biomass, landfill gas, hydroelectric power, concentrated solar power, and geothermal power plants.

The projects are designed to ensure energy security that decarbonisation goals are met, economic growth, and climate mitigation.

The scheme will support the bloc in achieving its target of reducing net greenhouse gas emissions by at least 55% and ensure 40% of energy is sourced from renewable sources by 2030, as set by the Fit for 55 package.

In addition to ensuring grid stability, the renewables projects will enable the provision of affordable electricity to consumers.

According to the European Commission, the funding “guarantees renewable energy producers long-term price stability, helping them to make the necessary investments while limiting the cost for the State.”

The development comes as European countries struggle with an increase in energy prices due to the fluctuating nature of renewables and an inadequate supply of natural gas.

Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “This Greek scheme will provide important support to a wide range of technologies generating electricity from renewable energy sources, in line with EU rules.

“It will support the objectives of the Green Deal, contributing to substantial reductions in greenhouse emissions. The selection of the beneficiaries through a competitive bidding process for the main supported technologies will ensure the best value for taxpayers’ money and will minimise possible distortions of competition.”

The projects Greece will implement will help contribute to the new European objective of achieving climate neutrality by 2050.

The scheme is expected to add 4.2GW of renewable energy capacity to Greece’s energy mix and is open for applicants until 2025, whilst aid will be paid out for a maximum of 20 years.