By Chryssa Liaggou
Foreign and domestic investors have expressed interest for investments in renewable energy sources (RES) totaling more than 30 billion euros.
Official data by the Regulatory Authority for Energy (RAE) showed that until the end of 2005 a total of 2,060 investment proposals had been submitted for the production of 24,988 megawatts. This does not include the applications by the Kopelouzos, Mytilineos and Rokas-Iberdrola groups for the production of an additional 2,800 MW on the Aegean islands.
The rich investment interest is mainly attracted by the huge renewable potential of this country. The entry of new major groups in the growing RES market is expected to give the sector a significant push forward, bringing the country closer to the target of 20.1 percent of electricity being produced by RES in 2010.
The strengthening and promotion of RES is a priority for the Development Ministry, which aims to reduce Greece’s dependence on oil, which is imported and expensive.
Today the total installed power from RES comes to 747 MW. Their contribution in the energy balance stands at 5 percent of the total supply of primary energy and at 13-14 percent of local production of primary energy. In recent years power production from RES is growing significantly, standing at 2-2.5 percent of the gross domestic electricity consumption.
The positive regulations in the new framework (such as deadlines for licensing, reducing time from three years to just one, the increase in the sale price of RES-produced power etc.) are expected to help both the realization of the existing investment plans and the luring of fresh investment interest.
Investors maintain some reservations, as key parameters for realizing such plans have not been settled yet. Of them, the most important, are zoning plans.
Another important problem discouraging investors is the need for a network capable of transmitting the power produced.
Local opposition is the biggest threat to RES investments, since these investments do not create new jobs.
(Kathimerini, 26/8/06)