Low prices but for limited capacity in Greek renewables auction

The latest Greek renewable energy auction had mixed results. Prices came in low, but only limited capacity was awarded.

A total of 538 MW in wind and solar capacity was selected from 34 projects of a combined 944.5 MW at Greece’s renewables auction.

According to the announcement from the Regulatory Authority for Energy (RAE), there were not enough applications to achieve an 80% level of competition for the 1 GW that was originally planned. Total awarded capacity was 538 MW, of which 166.25 MW was awarded for wind farms and 372.16 MW for photovoltaic facilities.

When it comes to prices, the tender was very competitive, since the lowest accepted photovoltaics price was EUR 46 per MWh and the lowest price for wind projects was EUR 55.82 per MWh, which are considered satisfactory concerning the difficult international environment and the rise in the costs for renewable energy technologies. In comparison, the starting price was set at EUR 54 per MWh for PV and EUR 63 per MWh for wind.

Sdoukou: Renewables installations to surpass 2 GW in 2022

Based on current trends and installations so far, Greece aims to surpass 2 GW of new renewable installed capacity this year. The general secretary of the Energy ministry, Alexandra Sdoukou, said recently that the country is estimated to reach its 2030 renewables goal much earlier, around 2025-2026.

PPC Renewables emerges as the winner

According to Greek renewable energy companies, the interest in participation in auctions decreased lately, while investor interest for other kinds of support structures, such as power purchase agreements or PPAs, has grown significantly. The first commercial PPAs have been signed between large consumers and renewable producers, such as the recent deal between Cero and Axpo for 70 MW. PPC said that the results of this new auction will be a guide for the determination of PPAs in the near future.

 Mavros: PPC’s investment plan has the goal of reaching 1.5 GW of renewable installed capacity by 2023

Among the companies that participated in the auction, the winner was PPC Renewables, with four PV projects of 250 MW in total, for which the lowest accepted price was EUR 47.5 per MWh. Other players include EDF Hellas with 80 MW, as well as CNI and Intrakat. It should be noted PPC is developing a 550 MW solar power plant project in Ptolemaida and that it plans to support it exclusively through PPAs.

As Constantine Mavros, CEO of PPC Renewables, said after the results of the auction:

“PPC Group leads the energy transition in Greece, through realizing new renewable projects at a high rate. The acceleration of the transition is obligatory and the only way to surpass the existing crisis and maintain energy security in our country. PPC and PPC Renewable’s investment plan has the goal of reaching 1.5 GW of installed capacity by 2023 and 5 GW five years from now. We continue to look forward and expanding the growth of our green portfolio, thus turning into a leader in the energy landscape.”