Angelos Nikolaou
The big meal with the sale of licenses for renewable energy sources and mainly photovoltaics continues and already for the ready projects connected to the EAC network, the license far exceeded the amount of € 1 million per megawatt. Companies that have a dominant position in the market, take full advantage of the special arrangements that have been made to run the competitive electricity market (with the latest decisions expected in the fall of 2022) and given the high prices that sell their licenses, they have amortized investment. earlier than expected.
There is an intervention of ETEK on the issue, which points out that the plans of large photovoltaic parks have created super profits for a few. ETEK concludes that the distortions in the 2018 plan and the untimely taking of corrective measures, instead of benefiting the consumer, led to an additional reasonable, guaranteed profit in excess of € 7.5 million per year to the park owners. For this purpose, it is suggested to set a ceiling for the projects implemented based on the 2018 tender, so that they do not currently enjoy a guaranteed price.
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For the whole issue, however, the decision of the Ministry of Energy, Trade and Industry to send a letter to the Attorney General requesting legal advice for the existing contracts is considered important.
Specifically, the YEEB has requested information on whether it has the right to modify the plan in order to allow the contracts signed between the EAC and RES producers to be changed. The answer from the Legal Service is pending.
ETEK submits specific suggestions as described to “F” by the President of the Chamber Konstantinos Konstantis:
1) For the parks that were implemented under the plan of 2018 (120 MW) to set a reasonable compensation ceiling e.g. 10 cents per kilowatt hour. He points out that the amount of compensation may differ depending on the specific characteristics of each park.
2) As soon as possible, the Ministry of Energy will announce a new tender / plan to issue new photovoltaic licenses with the characteristics of a bidding tender in order to address the phenomenon of the black market of licenses.
3) ETEK invites those in charge, Ministry and CERA, to re-study and explain how and why the operation of the competitive market will lead in the medium term, e.g. the next seven years in reducing the price of electricity.
4) Urges the ordinary citizen and small and medium enterprise to take immediate measures to save energy or increase the energy efficiency of production processes or utilization of photovoltaics or other small-scale RES for own use. In this regard, it calls on the state to focus and promote measures and policies that facilitate-encourage the above instead of implying that the competitive market will reduce the price of electricity for the household and small business in the short-medium term.
5) Calls on the State to proceed with the institution, development and operation of energy communities, in the logic and content developed in the new European Directive, which will create conditions for fair exploitation of RES for the benefit of the inhabitants of the energy community and reduction of energy poverty. In its simplest form, the energy community is like a cooperative savings bank.
It is noted that energy communities are local cooperatives for the sole purpose, through which citizens (either as individuals or legal entities) can be active in the energy sector, utilizing clean energy sources to enhance individual / family income, local entrepreneurship, and the fight against energy poverty.
Υπ. Energy: In the Legal Service for existing contracts
The Ministry of Energy, Trade and Industry (YEEB) points out that the commercial photovoltaic parks of the two projects announced in the years 2017-2019 will join the competitive electricity market in a few months from today, when prices will be determined by the market. Therefore, he notes, any distortions created by the operation of these projects will be dealt with automatically through the free market. Furthermore, the YEEB notes that on the issue of these contracts and precisely because of the legal aspects that exist, legal advice was requested from the Legal Service.
According to the YEEB, in view of the functioning of the competitive market and the new legal framework for the promotion of RES, the YEEB is considering new commercial RES support plans, which will operate through the bidding process and may be combined with energy storage systems. A draft of the IAEA proposals has already been sent to the EU for approval on this issue.
Distortion of competition and profiteering of businessmen
ETEK, which expects corrective actions by those responsible for distortions in the photovoltaic parks, underlines that through failures of the plans of 2018 and 2019 for photovoltaic parks, distortions were created that lead to profits of specific entrepreneurs at the expense of the consumer.
According to ETEK, the plan for photovoltaic parks announced in 2018, with a capacity of 120MW, did not follow the logic of the tender, in view of the fact that the competitive market would operate in a very short time. According to the plan: “the applicants will contract with the EAC for the purchase of the produced electricity at the respective purchase price of RES, as it is determined by CERA”. A similar practice was followed with the Plan for Photovoltaic Parks of 2019.
The result, he notes, “is the current cost of purchasing the kilowatt hour (kWh) of projects included in the 2018 plan to be € 0.18, while the auction held in 2013 gave prices of € 0.08- € 0.09 per kWh”.
According to ETEK, according to the plan, this guaranteed sale price would cease to exist 12 months after the date when the competitive market will take effect, when the project will be obliged to join it. On the contrary, he notes, “the competitive market has not yet been put into operation, with the result that the purchase price per kilowatt hour is at much higher levels compared to tenders conducted in countries with similar solar potential and gave prices lower than € 0.06 per kWh ».
ETEK is sounding the alarm, as it notes that maintaining the high guaranteed purchase price of RES for the projects of the 2018 Plan “gives them an advantage and most likely distorts the competition, as they will enter the competitive market, when and if it is realized, with a relatively long remaining lifespan and with their capital investment almost amortized, through the current high returns on their investment “.
