Renewable Energy Auctions and Economic Priorities in Greece

Explore the landscape of offshore wind energy in Greece through RES auctions, highlighting the economic priorities, current situation, and future perspectives. The auctions, ranging from 2018-2020 and beyond, showcase the growth in renewable energy projects, including PV and wind, aiming to boost competition and reduce costs for consumers. Detailed data on auction outcomes, annual prices, and tenders provide insights into the renewable energy market in Greece.

• Renewable Energy
• Greece
• RES Auctions
• Offshore Wind
• Economic Priorities

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1. Offshore Wind Energy in Greece: The way forward Conference RES Auctions in Greece - Economic Priorities Current situation and perspectives John Charalampidis Head of Licensing and Registry Department Athens, 12.12.2022

2. RES Auction 2018-2020 New RES Auction scheme 2021-2025 Offshore Wind Parks Auctions

3. RES Auctions 2018-2020 For the period 2018-19-20, a scheme for auctions procedures approved by EU (State Aid 48143). The target was 2.7GW The auctions were For technology specific auctions, separate for wind and solar projects (The other technologies were exempted), and For technology neutral auctions, joint auctions for both wind and solar projects, to increase competition and reduce the cost for consumers of renewable energy in Greece 3

4. No. of Auctions Granted PV Projects (MW) Granted Wind Projects (MW) Type of Auction Date 2 1st Pilot Auction (TS) December 2016 40 MW connected to the Grid 3 Technology Specific July 2018 106,40 170,93 3 Technology Specific December 2018 61,94 159,65 15,2% 84,8% 437,78 MW 1 Technology Neutral (Big) April 2019 371,18 66,60 2 Technology Specific July 2019 142,88 179,55 2 Technology Specific December 2019 105,09 224 30,42% 69,58% 502,94 MW 1 Technology Neutral (Big) April 2020 349,94 153 2 Technology Specific July 2020 142 472 0% 100% 350 MW 1 Technology Neutral (Small) May 2021 350 0 ~3,06 GW 17 Auctions PV: 1.629,34 MW Wind: 1.426,73 MW

5. Auctions took place during the period 2018-2020 Annual weighted average prices of RES auctions ( /MWh) 80 69.48 70 64.24 62 61.58 57.03 60 55.67 51.59 49.8 50 40 30 3.5% 20 11.4% 9.5% 19.7% 10.2% 10 0 2018 2019 2020 2018 2019 2020 2019 2020 PV Wind Joint

6. Weighted average for PV per Auction 90.00 80.00 78.42 70.00 Weighted Average /MWh 66.66 60.00 63.81 62.78 59.98 50.00 49.81 37,6 40.00 30.00 20.00 10.00 0.00 Tenders 2021 2018 - Tender [1/2018] Category (PV Stations - PPV 1 MW) 2018 - Tender [2/2018] Category (PV Stations - 1MW< PPV 20MW) 2018 - Tender [4/2018] Category (PV Stations - PPV 1 MW) 2019 - Tender [2/2019] Category (PV Stations - PPV 20 MW) 6 2019 - Tender [4/2019] Category (PV Stations - PPV 20 MW) 2020 - Tender [2/2020] Category (PV Stations - PPV 20 MW)

7. 1st Cycle Auction, Technology Neutral, April 2020 - Results Project Applications (No/MW) Auction Auctioned Capacity (max) (MW) Final Auctioned Capacity (MW) Categories Ceiling price ( /MWh) Highest Bid ( /MWh) Lowest Bid ( /MWh) Weighed Price ( /MWh) Applied Approved Granted Bids Technology Neutral 600 508,35 51,59 502,94 61,32 54,82 49,11 9 711,69 9 711,69 5 44 9,73 /MWh (-15,87%) 6 PV Projects of a total capacity of 423,69 MW 3 Wind Projects of a total capacity of 288 MW Winners: 4 PV Projects of a total capacity of 349,94 MW (50,25 /MWh) 1 Wind Projects of a total capacity of 153 MW (54,64 /MWh) `

8. Technology Neutral for small projects, May 2021 - Results Project Applications (No/MW) Auction Auctioned Capacity (max) (MW) Final Auctioned Capacity (MW) Categories Ceiling price ( /MWh) Highest Bid ( /MWh) Lowest Bid ( /MWh) Weighed Price ( /MWh) Applied Approved Granted Bids Technology Neutral 350 350 37,6 2188 53,86 1.113,87 126 1.090,2749 349,9 51,2 32,97 128 16,26 /MWh (-30,2%) 109 PV Projects of a total capacity of 741,42 MW 16 Wind Projects of a total capacity of 343,85 MW Winners: only PV Projects of a total capacity of 349,9 MW

9. New RES Auctions scheme 2021-2025 For the period 2021-2025, a new scheme for auctions procedures approved by EU (State aid SA.60064). The target isto support around 4.2 GW of installed capacity The auctions will include a number of changes to the design of the RES scheme compared to the 2018 tender scheme in order to: further increasing the level of competition, avoiding collusive behavior and transparency for all participants strategic bidding, ensuring 9

10. New RES Auctions scheme 2021-2025 (1) The new rules to the design of the RES scheme are: Only joint Wind and PV auctions Type of auction: Continuous biding or single step one bid Technology quota (30%) Different ceiling prices per technology for the joint PV and wind auctions Oversubscription rule Last project rule Establish an anti-concentration rule for the participants in the RES auctions 10

11. New RES Auctions scheme 2021-2025 (2) The RES projects with an obligation to participate in competitive procedures are: All PV projects and all Wind>60 Kw. The projects must be mature (with connection to grid terms). All the remaining RES/heCHP projects are exempted from competitive procedures Different types of auctions will be held: joint PV and Wind projects joint PV and Wind with Storage capacity projects joint PV and Wind in the islands of Crete, Euboea and Cyclades joint PV and Wind for foreign projects located outside of Greece Technology specific calls for tenders for small PV and Wind 11

12. Technology Neutral with quota , Sep 2022 - Results Project Applications (No/MW) Auction Auctioned Capacity (max) (MW) Final Auctioned Capacity (MW) Categories Ceiling price ( /MWh) 63 54 Highest Bid ( /MWh) Lowest Bid ( /MWh) Weighed Price ( /MWh) 57,66 47,98 Applied Approved Granted Bids Technology Neutral 60 53,9 55,82 46 1000 524 952,664 34 943,264 21 538,4 35 2188 Ceiling price for Wind Projects: 63 /MWh Ceiling price for PV Projects: 54 /MWh 5,34 /MWh (-8,5%) 6,02 /MWh (-11,2%) 14 Wind Projects of a total capacity of 346,28 MW 20 PV Projects of a total capacity of 596,98 MW Winners: 14 PV Projects of a total capacity of 372,16 MW (47,98 /MWh) 7 Wind Projects of a total capacity of 166,25 MW (54,64 /MWh) `

13. Road-map for upcoming Auctions Auction period Type of Auction Quantity (MW) Remarks 2022-D Joint (PV & Wind) 600+461,6 =1.061,6 The remaining power from the previous Auction is added 2022-D Joint RES with Storage 200 This auction will take place in 2023 2022-D Technology Dedicated 100 PV<1MW The power (MW) defined according to / /123726/5096/23.12.2021 2022-D Joint in European Economic Area (EEA) * The power (MW) defined according to / /123726/5096/23.12.2021 2023-A Joint in EEA * 2023-B Joint (PV & Wind) 600+ The remaining power from the previous Auction is added 2023-D Joint (PV & Wind) 600+ The remaining power from the previous Auction is added 2023-D Technology Dedicated 100 PV<1MW 2023-D Technology Dedicated 100 60kW>Wind < 6MW 2024-A Joint (PV & Wind) * The remaining power from the previous Auction is added 2024-A Dedicated to specific areas 500 PV>1 MW & Wind in Evia, Crete, Islands

14. Economic Priorities for development of RES in Greece Participation in RES Auctions (Technology Neutral mature projects) & Auctions for Non Mature Projects (Evia, Crete, Islands) 3,1GW + 1GW (for specific auctions) neutral (PV&Wind) approved by DG New RES Comp. (2021-25 new National legislation framework) Projects > 250 MW Individual Notification Letter The current National legislation framework: up to 2030 Exceptions for specific RES technologies [Small hydro, Biogas] (2021-2025) Participation in the Market A Ministers Decision for the criteria From 1st of November 2020: Target model Submission of application (Committee of article 12 of 4414/2016 Law) Opinion to the Minister Forward Products, Day ahead market, Intraday Market, Balancing market 10-15 GW Private PPA between RES Producer & Consumer or Supplier FiT - Currently small units take prices directly from the law and minister s decision (PV< 500kW (up to 2 projects each), Wind < 6MW)

15. Offshore Wind Parks auctions roadmap(1) 1. Issunance of National Development Program of Offshore Wind Parks (Common Ministerial decree) 2. Issuance of Presidential decree which determines the Offshore Wind Parks Organized Development Areas (OWPODA) and the Offshore Wind Parks Installation Areas. 3. Applications from developers must be submitted at HEREMA for the granting of an OWPs Research Permit 4. Issuance of the ministerial decree (MEE) which will: 1. assign the exact Installation Areas within the OWPODAs . 2. define the maximum capacity of OWPs that can be installed in each Installation Area. 5. A new State Aid scheme for Offshore Wind auctions procedures is necessary to be approved by EU

16. Offshore wind auctions roadmap(2) Within 4 months of the above ministerial decree Ministerial decree (after submission of RAE s opinion) defining the procedure of the Offshore Wind auctions RAE announces the offshore wind auction procedure setting out the specific criteria for the participation of OWPs. RAE s call for tenders specifies: Criteria of participation and evaluation of the OWPs Letter of Guarantee for participation and construction and electrification of the OWPs. Penalties for late construction of the projects S pecific issues related to the auction procedure

17. Offshore wind auctions roadmap(3) For every OWPODA, RAE will announce discrete auction Only developers with a Research Permit for the respective OWPODA will be eligible to participate in the offshore wind auction. Each participant shall submit distinct bids for each OWPs Installation Area located within the OWFODA for which it has obtained a Research Permit. Successful bidders will acquire the exclusive right to develop, construct and operate the offshore wind park in the OWPs Installation Area. Developers with the lowest bids are selected for the support scheme A sliding Feed-in-Premium scheme will be adopted to support offshore wind development.

18. Licensing of OWPs Successful bidders will submit to RAE an application for the issuance of a Producer s Certificate of Special Projects. RAE issues, within three (3) months, a Producer s Certificate for Special Projects for a period of up to thirty (30) years, which may be renewed for an equal period. OWPs investor who receive a Producer s Certificate of Special Projects are obliged to obtain all necessary permits and approvals within the time-limits set out in the Producer s Certificates Regulation and Law 4685/2020. The OWPs investor is required to put the project into operation no later than six (6) years as of the date of the competitive procedure in which he was selected.

19. Offshore Wind Energy in Greece: The way forward Conference Thank you for your attention! John Charalampidis Head of Licensing and Registry Department Regulatory Authority for Energy el.: +30 210 3727433 E-mail: jchara@rae.gr Athens, 12.12.2022