Investors in dilemma about RES pilot tender

Photo: Pixabay


October 31, 2016






October 31, 2016





Prospective investors are in dilemma about the participation in a RES pilot tender for the installation of new PV systems announced by Regulatory Authority for Energy of Greece as they are required to provide additional letters of guarantee.

Potential investors are upset after they have been informed that they are required to provide follow-up letters of guarantee and to forward them to accept the procedure’s connection conditions. The RES pilot tender, offering producers a total capacity of at least 40 MW for the installation of new PV systems, is scheduled for December 12.

Although certain investors have admitted that a protective clause is needed in the event that companies fail to actualize their respective projects, they have also pointed out that the additional letter of guarantee demanded by RAE is unfair as it is the second one requested for the same investment. This is the reason why certain companies consider whether to provide additional second letters of guarantee or sacrifice those already submitted.

The initial letters of guarantee were submitted by interested investors a few days ago and several prospective bidders claim that they would not provide the first letter of guarantee if they knew that they would be required to provide an additional letter of guarantee. Their argumentation for such a reaction is that they need to deposit corresponding amounts into their bank accounts which can affect their financial plans and that obtaining letters of guarantee from Greek banks is no longer a simple process.

The tender is divided into two categories, one covering amounts of up to 1 MW while the other covers amounts of over 1 MW which is in accordance with the new law. The first category will concern small PV facilities with capacities between 500 KW and 1 MW and they will be able to bid for 20% that is 8 MW of the auction’s total amount. The other auction category will concern PV facilities with capacities of over 1 MW. The experts believe that investors’ interest in the small-scale category will be moderate as a result of the anticipated low returns on the investment.

Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles


Danish offshore wind giant Ørsted asks all suppliers to switch to green electricity by 2025

17 August 2022 - Ørsted says it has become the first energy company in the world to ask all suppliers to switch to green electricity

Petrol 35 MW wind Dazlina Croatia next phase

Petrol takes 35 MW wind project in Croatia to next phase

17 August 2022 - Slovenia-based Petrol put the environmental study for its wind power plant project Dazlina in Dalmatia to public review


Finland’s Taaleri joins forces with Encro on 111 MW wind project in Croatia

17 August 2022 - The wind farms, located near the city of Zadar, are expected to be fully operational in Q4 2023


Republic of Srpska offers households credit to install solar panels

16 August 2022 - The credit program aims to enable 50,000 households across the Republic of Srpska to install solar panels and become prosumers