RAE: Notice to a new auction for 10th December 2018

Following the conclusion of the public consultation for the auctions of December and the opinions expressed by the market players, the notice to the forthcoming auctions for RES (wind and solar) in 2018 was published by RAE, without the maximum limit of 20% of the size of the tendered capacity that can be obtained by each investor, without change in the possibility of the three-minute extensions and with an increase in the available capacity for wind farms. However, it should be noted that the minimum participation level of 75% remains; according to this the tendered capacity is adjusted, in order to exceed by 75% the interest which will be expressed by the investors.

In particular, RAE announces with Decision No. 1026/2018 three (3) new Competitive Bidding Procedures (auctions) for the following categories, setting the starting prices mentioned below:

  • Category I: Solar Stations with installed capacity PPV ≤ 1 MW (Maximum tendered capacity 94MW) with a starting price of 81,71 € / MWh
  • Category II: Solar Stations with installed capacity of 1MW <PPV ≤ 20MW (Maximum tendered capacity 100MW) with starting price of 71,91 € / MWh
  • Category III: Wind Stations with a maximum capacity of 3MW <PWIND ≤ 50MW (Maximum tendered capacity 229MW) with a starting price of 79,77 € / MWh

The date set for the online auction will be December 10th, while the applications for participation must be submitted by November 12th.

It should be pointed out that Law 4414/2016 (Government Gazette A’ 149) introduced the support scheme for RES and Co-generation of High-Efficiency Heat and Power (CHP) on the basis of the Operation Aid in the form of sliding Feed in Premium (sliding FiP), in addition to the price obtained by the RES from their participation in the Market, up to a maximum price that is the Reference Tariff (RT). The Reference Tariff will result from the Competitive Bidding Procedures (auctions), and only the successful bidders will receive the Operating Aid.

The interest in the price levels, which will result from the said Competitive Bidding Procedure (auction), is great, as it should be underlined that at the Competitive Bidding Procedure (auction) of RAE in July 2018 a considerable price reduction took place in relation to the starting prices.

MStR Law provides regularly legal services to companies during the implementation of their RES investments in the whole spectrum of licensing, construction and operation of RES power plants, including -among others- legal services in the context of the Competitive Bidding Procedures (auctions) introduced by Law 4414/2016.