Project Overview
This project involved conducting a comprehensive feasibility study to assess the development potential of community-based Renewable Energy Sources (RES) projects in Greece. The study aimed to provide insights into the current market conditions, legal framework, and financing challenges while exploring options for financial instruments to support RES projects.
By benchmarking Greece's progress with other European countries and analysing investment needs, the study contributed to creating a roadmap for expanding community RES initiatives until 2020.
Greece’s RES sector faced significant barriers, including legal constraints, market failures, and suboptimal investment conditions. Furthermore, the introduction of new financial instruments required careful alignment with EU State aid regulations and needed to avoid overlapping with existing public and private financing sources. The challenge was to design a financial instrument that would stimulate investment, meet regulatory standards, and ensure long-term sustainability for RES projects
The approach
Our consultants delivered a structured feasibility study focusing on the following key areas:
- Market and Legal Analysis: We analysed the status of community RES projects in Greece, comparing it with other European countries to identify improvement areas. This included a review of Greece’s legal framework, pinpointing gaps or constraints that might hinder project development.
- Market Potential and Investment Needs: The study estimated the potential for community RES development in Greece up to 2020, based on trends and government targets. We also identified the required investment and assessed market failures and suboptimal conditions that might limit financing.
- Designing Financial Instruments: We explored financing options, including loans, equity, and guarantees, as well as potential combinations. The study defined possible financing terms, grant levels, and organizational structures to ensure effectiveness and scalability.
- Complementarity and Compliance: To prevent market distortion, we assessed the proposed financial instrument’s compatibility with existing public and private initiatives. We ensured EU State aid compliance and estimated the leverage effect of the instrument to attract additional private investment through ESIF contributions.
Outcomes
Our feasibility study laid the foundation for the development of financial instruments aimed at supporting the growth of community RES projects in Greece. By identifying the market potential, investment needs, and designing appropriate financial solutions, the study provided the Greek government with a clear strategy to drive sustainable energy initiatives. Furthermore, the project ensured compliance with EU regulations while fostering investment through innovative financial mechanisms.
