The European Commission has backed plans for a Greek auction scheme which will lead to greater production of electricity from wind and solar. The commission found the plan to be in line with EU State aid rules.
Under the scheme, Greece will organize separate auctions for wind and solar installations this year in order to determine their market potential.
In 2019, joint auctions for both wind and solar installations will be held to increase competition and reduce the cost for Greek consumers of renewable energy.
Support for other renewable energy technologies will be subject to auctions as soon as they reach a predefined level of market penetration. Moreover, Greece will evaluate the bidding processes in 2020, before designing bidding processes for the period 2021-2025.
The Commission concluded that the Greek auctioning scheme will boost the share of electricity produced from renewable energy sources, in line with EU environmental objectives, while any distortion of competition caused by the state support is minimized.
Commissioner Margrethe Vestager, in charge of competition policy, said, "Greece will bring down costs for renewable energy with competitive auctions to support renewable electricity generation. This is very good and the scheme will facilitate Greece's efforts to reach its 2020 climate goals."
The Renewable Energy Directive established targets for all Member States' shares of energy renewable energy sources in gross final energy consumption by 2020. For Greece, that target is 18% of domestic energy supplies produced from renewable sources by 2020.