Photovoltaics in Greece: an emerging market
Although the installed capacity of photovoltaics (PV) has tripled in the last five years, Greece still hasn't taken the necessary steps in order to exploit its vast solar potential (according to the EU's "Photovoltaics 2010" report, Greece's PV potential for applications in buildings is enough to cover up to 1/3 of its electricity needs). The market is still based mainly on small companies, and only recently there have been signs of change both in market size, as well as in its strategic direction.
There are about forty (40) companies now active in the PV business (small retailers, installers, relevant electronics (BOS) importers, and consultants). Only half a dozen of them have a turnover worth mentioning. The biggest PV companies install 40-200 kWp per year, while the size of the market during the last 3-4 years has been in the order of 200-600 kWp/a.
Until recently, almost all PV systems installed in the country were stand-alone ones. The first building integrated grid-connected systems were installed in the late 90's, while the first grid-connected solar farms of a considerable size (100-170 kWp) were installed recently mainly on the island of Crete.
A recent market survey by the Greek association of photovoltaic companies (HELAPCO) has shown that the installed PV capacity in Greece was in the order of 1.4 MWp in late 2001, and will reach 1.8 MWp by the end of 2002.
Financial support for PV in Greece
Commercial PV applications are eligible to a grant of up to 40-50% (depending on the geographical area) under the Operational Programme "Competitiveness" of the Greek Ministry for Development, and/or up to 40% under the Development Law (see below). However, there are no grants for domestic applications as yet.
The Development Law (L.2601/98, which is now being reviewed) subsidizes, among other things, energy production investments. The law foresees alternatively: a) capital investment subsidies up to 40%, interest subsidy up to 40% and subsidy for leasing up to 40%, or b) tax deduction up to 100% and interest subsidy up to 40% for investments in PV.
Solar electricity can be sold to the Public Power Corporation (PPC). It is obligatory for PPC to buy all energy produced by the IPPs under 10-year contracts. The current tariff, under which PPC buys solar electricity is 0.06-0.078 €/kWh (up to 90% of the retail price for domestic consumers).
Future Prospects
As mentioned before, there are signs that the PV market in Greece is now changing both in size as well as in its orientation.
RAE, the Greek Regulatory Authority for Energy, announced in February 2002 that they have received applications for the installation of up to 7 MWp of PV. So far, RAE has issued permits for 1.6 additional MWp of PV, which is expected to be installed in the coming 1-2 years. That is, the installed PV capacity by the end of 2003 is expected to be 2.5-3 MWp.
Additionally, private and public financing has been secured for the first PV manufacturing plant in Greece (with an initial production capacity of 5 MW in 2003). This new unit is now being built in northern Greece by HELIODOMI, a member of HELAPCO.
M.K.