The weather in Greece is getting hotter. The country's energy regulator RAE is preparing to hold a new combined photovoltaic and wind power tender on September 5.
It aims to contract 1 gigawatt of installed solar capacity, with a focus on systems larger than 1 megawatt, and wind projects over 60 kilowatts in size. The energy community will also be able to participate in the auction, the regulator said.
Stakeholders are required to submit electronic applications by August 8 and hard copies of applications by August 10. By August 25, applicants will be notified if they meet the auction criteria and are eligible to bid.
The RAE set the subscription rule for tenders at 80%. This applies to every technology, which means that for a tender to award 100 MW of PV capacity, for example, 180 MW of solar capacity should compete for the option. According to the RAE, the 80% subscription rule ensures the competitiveness of the auction.
The regulator said each technology would need to secure at least 30% of the granted capacity. It's a new rule that could stem from Greece's last joint tender in May 2021 being swept up in solar projects, leaving wind investors empty-handed.
Bids for photovoltaic and wind power systems start at €54/MWh and €63/MWh, respectively. The winning solar project needs to be connected to the grid within 30 months of the auction date, while the winning wind farm needs to be completed within 36 months.
Crucially, project developers eligible to bid should have a power generation license, grid connection agreement and some letter of guarantee from a Greek or foreign financial institution to ensure credibility. Typically, such letters of guarantee are issued to the RAE, but also to the grid operator when applying for a connection project. Proof of such a letter of guarantee is required to participate in the tender.
