Legal framework for wind energy production in Greece

What is the basic legal framework for wind energy production?

The main law that liberalized the Greek energy market is L. 2773/1999 which has undergone several amendments and has been supplemented by ministerial decisions. Other basic wind energy laws in force are L. 3468/2006, as amended mainly by
L.3851/2010 and L.4011/2011 and supplemented by several ministerial decisions including the Permit Regulation for Renewable Energy Sources (Ministerial Decision ΥΑΠΕ/Φ1/14810/ 04.10.2011).

Why does the Greek State support wind energy production?

According to Article 1 of L. 3851/2010 which implemented Directive 2009/28/EC (EEL, 140/2009), for climatic protection by promotion of electrical energy production by Renewable Energy Sources (hereinafter “R.E.S.”), constitutes an environmental and
energy priority of the highest importance for Greece. The national R.E.S. targets for Greece up to the end of 2020, based on the aforementioned Directive, are as follows:

(a) The energy produced by R.E.S. shall amount to 20% of the gross final energy
consumption.

(b) The electrical energy produced by R.E.S. shall amount to a minimum of 40% of the
gross electrical energy consumption.

(c) The energy produced by R.E.S. shall amount to a minimum of 20% of final energy
consumption for heating and cooling.

(d) The electrical energy produced by R.E.S. shall amount to a minimum of 10% of gross
electrical energy consumption for transportation.

What is the main licensing procedure and what steps must be taken in order to complete all
the licensing requirements?

Production License

The production license is issued by decision of the Regulatory Authority for Energy
(R.A.E.) which is based on the following criteria:

(a) National security,
(b) Protection of public health and safety,
(c) The general safety of the installations and related equipment of the System and the
Network,
(d) The energy production capacity of the respective wind farm project for which the
application is filed, production capacity which is determined for R.E.S projects
through R.E.S measurement of potential. Particularly with regard to wind-derived
energy the potential, measurement readings submitted must have been executed
bycertified parties, in accordance with standard DIN-EN ISO/IEC17025/2000, as
applies for each particular case.
(e) The maturity of process for the materialization of the wind farm project, as
demonstrated by studies, by consultations with government statutory stakeholders,
as well as by other related information.
(f ) Having secured or being able to secure the legal right to use the location where the
wind farm project is to be installed.
(g) The ability of the applicant or is shareholders, or partners to complete the wind farm
project on the basis of scientific and technological capacity as well as the ability
to secure the required funding for the wind farm project from own capital or bank
financing or capital from business participation or a combination thereof.
(h) Securing the provision of services for the common good and the protection of Clients.
(i) The potential to execute the wind farm project in compliance with the Special
Framework for Spatial Planning and Sustainable Development for R.E.S. and in
particular the clauses referring to R.E.S. installation exclusion areas, providing these
areas have been marked out in a special and specific way, as well as the clauses
regarding the assessment of the capacity in areas where R.E.S. are permitted, so that
protection of the environment is ensured
(j) Compatibility of the wind farm project with the National Action Plan in order to
achieve the goals provided under Article 1 of L.3851/2010.

The R.A.E. examines if the criteria referenced above are met and decides, within two (2) months from submission of the application or otherwise from the time of completion of the application file, whether or not to issue a production license.

The production license is granted for a period of up to twenty five (25) years and may be renewed for another period of up to twenty five (25) years. Connection Offer by the System Operator – Environmental Terms - Forestall license

After receiving the production license from the R.A.E. the investor simultaneously requests the issuance of:

(a) a connection offer from the System Operator,
(b) a decision of Approval of Environmental Terms, and
(c) Permission to intervene in a forest area, where necessary, or generally such licenses as are required for acquisition of the right to use the installation site for the wind farm project.

The System Operator issues its decision within four (4) months of the connection offer requested.

For the decision of Approval of Environmental Terms to be issued, an Environmental Impact Study and a complete folder of supporting documents must be submitted to the authorised environmental licensing authority. The authorised authority examines the impact of the project on the environment and the proposed measures to mitigate such impact, undertakes compliance with the consultation and publication procedures provided by law, and decides whether or not to issue a decision of Approval of Environmental Terms within four (4) months from such time as the folder is considered complete.

The decision of Approval of Environmental Terms is valid for ten (10) years and may be renewed, one or more times for the same period, upon application that must be submitted no later than six (6) months prior to expiry of the decision of Approval of
Environmental Terms.

Installation license – Contract for connection – Power Purchase agreement

After the connection offer becomes binding, the investor proceeds to:

(a) acquire the installation license, and
(b) execute the Connection Contract and the Power Purchase Agreement. These

Contracts are signed and go into effect as of the grant of the installation license.

The installation license is granted within a time period of fifteen (15) working days from completion of evaluation of the relevant documentation.

The installation license is valid for a two (2) year period and may be extended, at the most, for an equal length of time, by application, so long as:

(a) upon expiry of the two year period, the expenditures for that part of the wind farm project that has been executed covers 50% of the total investment, or

(b) the required contracts for procurement of the equipment needed for completion of
the wind farm project have been signed, or

(c) any license required for the execution of the wind farm project has been suspended
by a court decision.

Operating License

The operating license is granted, following completion of the commissioning period by the relevant authority for the issuance of the installation license. The operating license is issued for a period of at least twenty (20) years and may be renewed for up to twenty (20) years.

Experience has shown, though, that the time for completion of the whole licensing procedure may exceed the time limits set by Law.

Are there any deviations from the licensing procedure?

Wind farm projects with an installed capacity less than or equal to one hundred (100) kW are exempted from the requirement of issuance of production and installation licenses.

What is the pricing of a wind farm project (feed-in tariff)?

The electrical energy produced by a wind farm project and which is absorbed by the System Grid or by the Network, is charged by the System Operator, on a monthly basis, in euro per megawatt (MWh) of the electrical energy absorbed by the System Grid or by the Network, including the Network of Non Interconnected Islands.

The pricing is readjusted annually by ministerial decisions.

Is there a legal framework for offshore wind farm projects in Greece?

Yes, by virtue of L.3851/2010:

ƒ. The installation of wind farm projects within the national sea territory is permitted.

ƒ. The exact location of off shore wind farm projects, the sea area they occupy, and their maximum installed capacity is determined by ministerial decisions.

ƒ. For the construction and the operation of each off shore wind farm project, the investor follows the Environmental Terms procedure.

ƒ. After issuance of the installation license, an open, public tender is announced, for execution of the construction works for the off shore wind farm project and its connection to the network, with financing or by means of self-financing.

ƒ. The Independent Office of Renewable Energy Sources which falls under the ambit of the Ministry of Environment, Energy & Climatic Change (YPEKA) is responsible for planning and coordination of offshore wind farms.

---------

Tatiana Tsirakopoulou, Attorney at Law, LL.M.
Associate at Lykourezos Law Offices