Greece: Large-scale solar projects and bank guarantees

, SEE Energy News

The investors applying for producer certificates for solar power plants with the capacity of more than 1 MW could also be obliged to provide bank guarantees worth 35,000 euros/MW as part of the application process.

The reason for the introduction of such measure is to make the procedure more demanding and restrict applications only to investors which will fulfill their plans. Recent huge investment interest in RES projects in Greece, especially in larger solar projects, has saturated the application and licensing process.

Restricting applications to investors with serious intentions will help free the system capacity currently taken up by investors acting without full commitment to their plans. If the measure is eventually implemented, an investor behind a solar energy project with a capacity of 50 MW, will need to submit a letter of guarantee worth 1.75 million euros.

The Ministry of Energy is not planning to introduce this measure right away, but it is likely to adopt the measure and then delay its implementation for at least six months in order to assess whether the implementation is needed or not.