The Greek government’s latest legislation covering the electricity market and the installation of data centers has come into force. It aims to alleviate public mistrust toward these installations, through reciprocal benefits.
The new law sets specific requirements when it comes to data centers’ connection to the grid and the use of energy. Specifically, at least 60% of power must originate from renewable energy sources.
As a last-minute addition to the law, electricity from outside the country can also cover the needs of data centers. This is important for projects such as the Greece-Egypt electricity interconnection, GREGY, which is currently in its planning stage.
Communities to receive annual payments
Data centers will have to pay EUR 20,000 per MW annually to local communities, with municipalities receiving 75% and individual consumers 25%. It is the same recipe as for renewable energy installations.
Another improvement concerns the letters of guarantee submitted by investors to the authorities. If a data center is only partially built, the owner will not lose the entire sum, but only a proportionate amount of that money.
Applications now at 11 GW
According to sources from the sector, interest in investing in data centers in Greece currently amounts to about EUR 10 billion.
In energy terms, Independent Power Transmission Operator (IPTO or ADMIE) and Hellenic Distribution Network Operator (HEDNO or DEDDIE) have received applications reaching a total of 11 GW, up from 5 GW earlier this year.
IPTO: Three challenges for data center development
Recently, Vice Chairman of IPTO Ioannis Margaris said there are three main challenges regarding data center development in the country: energy adequacy, network congestion and power prices for consumers.
“There is talk about flexible data centers, which increase or decrease their demand based on conditions in the market. It is similar to licensing flexible renewable energy plants”, he noted.
