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Published on March 22nd, 2014 | by Zachary Shahan

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Greece Cuts Feed-in Tariffs 30% Retroactively

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March 22nd, 2014 by Zachary Shahan
 

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This is what you call bad solar policy, bad investment and business policy, and overall bad policy. Greece has retroactively cut solar feed-in tariffs (FiTs) by 30% on average. Of course, it comes as part of broader economic problems in Greece.

Feed-in tariffs aren’t the only thing being cut either.

“The new measures ask solar photovoltaic energy producers to contribute 35% of their 2013 income to the Greek electricity market operator LAGIE. The intention is to plug a €700 million gap in LAGIE’s fund used, which is used to pay renewable energy producers in Greece. The country has promised its international lenders – the European Union, the European Central Bank and the International Monetary Fund – that it will completely eliminate LAGIE’s fund deficit by the end of 2014,” PV Magazine writes.

“While the same measures also apply to other renewable power producers, they are currently only required though to contribute 10% of their 2013 income to the LAGIE fund, with one exception: rooftop solar PV installations are exempted completely from this measure.”

Here are some details on the FiT cuts:

The second measure introduced by YPEKA regards the drastic reduction of FITs for operational RES plants. Again, solar PV installations face the sharpest reductions, which on average reach 30% of the initial tariffs. Retroactive FIT cuts also apply to rooftop installations.

A smoother FIT reduction, around 20% on average, applies to smaller PV projects up to 20 kW each that are not installed on buildings, and to those projects owned by farmers should they not exceed 100 kW each.

Other renewable energy systems such as wind and hydro projects have been instructed to take a much smaller FIT reduction of around 5-6% on average.

Reductions for solar PV FITs have taken into account a number of factors, such as the technology used, the time of project development, the cost of the installation, and even the location (specifically differentiating between projects in mainland Greece and in the smaller electricity grids of the many Greek islands). A critical factor also taken into account is whether a RES project has received any additional form of aid (e.g direct subsidy, tax exemption). FITs for projects receiving such aids face even sharper cuts.

Read more over on PV Magazine.

Image Credit: NickWinslow (CC BY-SA 3.0)

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About the Author

is the director of CleanTechnica, the most popular cleantech-focused website in the world, and Planetsave, a world-leading green and science news site. He has been covering green news of various sorts since 2008, and he has been especially focused on solar energy, electric vehicles, and wind energy since 2009. Aside from his work on CleanTechnica and Planetsave, he's the founder and director of Solar Love, EV Obsession, and Bikocity. To connect with Zach on some of your favorite social networks, go to ZacharyShahan.com and click on the relevant buttons.



  • CaptD

    I believe that the BIG’s (Nuclear, Oil and Coal Industries) are putting as much fiscal pressure as possible on Countries that are in debt, so that they can slow their Energy market loses to Solar (of all flavors). Big Banks are playing along because they also have stock portfolios that include these same BIG stocks. The more the people get squeezed by their Utilities the faster they will convert to Solar (of all flavors) because they are fed up with living as Energy Slaves to their Utilities.

    • http://zacharyshahan.com/ Zachary Shahan

      Yes, I agree. But can only go on for so long…

      • CaptD

        As more and more learn about the massive Global Energy protests they ask themselves, “Why not me?”.

        Solar is yet another cool way to “stick it to the man,” since once you install it, you are the Energy Company!

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