The European Union has approved a plan by the Greek government to invest 341 million euros ($339.5 million) in Greece's 900MW energy storage development pipeline under its state aid rules.
The energy storage projects will be selected through a competitive bidding process, with contracts to be awarded by the end of 2023 and the projects to be completed by the end of 2025.
State aid totalling 341 million euros is provided in the form of investment grants during project construction, followed by annual support for the first 10 years of these projects' operation. The funding provided is equivalent to EUR 380,000/MW.
Part of its funding will come from part of Greece's EU-wide recovery and resiliency plan, which aims to mitigate the negative economic impact of the coronavirus outbreak.
Competitive tenders will determine annual support for each project, which will be adjusted through a clawback mechanism if the energy storage system earns excess market revenue.
The European Commission has approved aid for EU member states to deploy energy storage projects after it found that storage projects could not be implemented without public support. After recently doubling its energy storage target, Greece aims to deploy a cumulative 3GW of energy storage systems by 2030.
Margrethe Vestager, executive vice-president of the European Commission responsible for competition policy, said: “Increasing the amount of energy storage capacity available in the power system is key to making the grid more flexible and better prepared for the future, where renewable energy will become a key component of decarbonisation. The backbone of the power mix. The Greek aid measures we approved today, which will be funded in part by the Recovery and Resilience Fund, will contribute to the development of a competitive market for the power system to serve, while helping Greece meet its emissions reduction targets.”
Introduced in January 2022, the new EU state aid guidelines aim to create a flexible support framework to help its member states provide the necessary support to meet the goals of the Green Deal in December 2019, when the EU announced that it would become a country by 2050. The first climate-neutral continent.
There are a number of interesting energy storage market drivers in Greece, including strong government support, Corentin Baschet of renewable energy consultancy Clean Horizon told industry media.