Tenders
Updated: 17.01.2019
Author: Georgios Maroulis
From 2017, in order to receive a feed-in premium (FiP) RES and CHP plants have to participate in tenders (art.7 par.1 Law No.4414/2016). Tenders are expected to be “technology specific”. The Ministry of Environment and Energy shall issue a decision concerning available capacities per renewable technology for each subsequent tender. In December 2016, a pilot tender for PV took place already. The tender included two categories of PV installations (PV installations ˂1MW and ˃1MW) and followed a two stage process. In 2018, two tenders for PV and wind energy have taken place, while further tenders are expected to take place in 2019.
Eligible technologies and support requirements
From 2017, RES and CHP are awarded with a sliding FiP through tenders (art.7 par.1 Law No.4414/2016). Tenders are expected to be “technology specific” (art.7 par.2 Law No.4414/2016). The Ministry of Environment and Energy shall issue a decision concerning available capacities available for each renewable technology for each of the subsequent tenders. In December 2016, a pilot tender for PV installations was launched, while two tenders for PV and wind energy have taken place in July and December 2018.
Solar energy | In December 2016, a pilot tender for PV installations was launched. A sliding FiP was awarded to successful bidders. The pilot tender included two categories of PV installations (ch. A art.1 par.1.2 RAE Decision 417/2016 in conjunction with art.7 par.9a Law No.4414/2016):
The total cumulative capacity for both categories capacities amounteds to 40 MW (ch.A art.1 par.1.2 RAE Decision 417/2016 in conjunction with art.7 par.9a Law No.4414/2016). Furthermore, tThe initial starting bidding prices was set at 104 €/ MWh for category A and 94€/ MWh for category B 40MW (ch.A art.1 par.1.2 RAE Decision 417/2016 in conjunction with art.7 par.9c Law No.4414/2016). For the July 2018 round two categories of PV installations were eligible
The total cumulative capacity for Category A was set at 70 MW and the initial bidding price was set at 85 €/ MWh (Call 1/2018, art. 1 par.5 RAE Decision 321/2018). For category B, total cumulative capacity was set at 230 MW and the initial bidding price was set at 94 €/ MWh Call 2/2018, art. 1 par. 5 RAE Decision 321/2018). For the December 2018 round two categories of PV installations were eligible
The total cumulative capacity for Category A was set at 94MW and the initial bidding price was set at 81.71 €/ MWh (Call 4/2018, art. 1 par. 5 RAE Decision 1026/2018). For category B, the total cumulative capacity was set at 100 MW and the initial bidding price was set at 71.91€/ MWh Call 5/2018, art. 1 par. 5 RAE Decision 1026/2018). For 2019, 300 MW added with the remained undistributed capacity from the 2018 tenders will be auctioned (art. 2 RAE Decision 1026/2018). |
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Wind energy | For the July 2018 round, wind energy between 3 MW - 50 MW are eligible. Total installed capacity is capped at 300 MW and the initial bidding price was set at 90 €/ MWh (Call 1/2018, art. 1 par. 5 RAE Decision 321/2018). For December 2018 wind energy between 3 MW - 50 MW are eligible. The tTotal installed capacity is capped at 229 MW and the initial bidding price was set at 79.77 €/ MWh (Call 6/2018, art. 1 par. 5 RAE Decision 1026/2018). For 2019, 300MW added with the remained undistributed capacity from the 2018 tenders will be auctioned (art. 2 RAE Decision 1026/2018). |
Tender characteristics
Pre-qualification criteria | To participate in a tender, Initial participation requirements include the pplant operators have to submit to LAGIE s (ch.A art.1 par.1.2st RAE Decision 417/2016 in conjunction with art.7 par.10 Law No.4414/2016):
In addition, tender participants must pay a participation fee for each PV installation (ch.A art.8 RAE Decision 417/2016 in conjunction with art.7 par.10 Law No.4414/2016). For the 2018 tenders the following pre-qualification criteria are applied (Call 4-5-6/2018 art. 1 par. 5 RAE Decision 1026/2018)
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Bidding procedure | The pilot tender (in December 2016) has followed a two-stage proceduress:
The electronic auction follows the “Yankee Auction” format, where the lowest bid will beis accepted (ch.B art.14 par.2.3 RAE Decision 417/2016). The 2018 tenders followed a two-stage procedure:
The electronic auction follows the “Yankee Auction” format, where the lowest bid is accepted (Call 4-5-6/2018 ch.B art.14 par.2.3 RAE Decision 1026/2018).
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Tender constraints | Price caps. The initial bidding price for the pilot tender in 2016 was set at 104 €/MWh for category A and 94 €/MWh for category B PV installations (ch. A art. 1 par. 1.2 RAE Decision 417/2016 in conjunction with art. 7 par. 9c Law No. 4414/2016). For the July 2018 tender the initial bidding price for PV Category A was set at 85 €/ MWh (Call 1/2018, art. 1 par. 5 RAE Decision 321/2018). For category B, the initial bidding price was set at 94€/ MWh (Call 2/2018, art. 1 par. 5 RAE Decision 321/2018). Initial bidding price for wind energy was set at 90 €/ MWh (Call 3/2018, art. 1 par. 5 RAE Decision 321/2018). For the December 2018 tender, the initial bidding price for PV category A was set at 81.71 €/ MWh (Call 4/2018, art.1 par.5 RAE Decision 1026/2018). For category B, the initial bidding price was set at 71.91€/ MWh Call 5/2018, art.1 par.5 RAE Decision 1026/2018). Initial bidding price for wind energy was set at 79.77 €/ MWh (Call 6/2018, art.1 par.5 RAE Decision 1026/2018). Volume caps. The total cumulative capacity for both PV installation categories amounted to 40 MW. For category A PV installations 4 - 7 MW were available, while for category B 33 - 36 MW were awarded (ch. A art. 1 par. 1.2 RAE Decision 417/2016 in conjunction with art. 7 par. 9a Law No. 4414/2016). For the July 2018 tender, total cumulative capacity for Category A was set at 70 MW (Call 1/2018, art. 1 par. 5 RAE Decision 321/2018) and for PV category B was set at 230 MW (Call 2/2018, art. 1 par. 5 RAE Decision 321/2018). Wind energy capacity is capped at 300 MW (Call 3/2018, art. 1 par. 5 RAE Decision 321/2018). For the December 2018 tender, total cumulative capacity for Category A was set at 94 MW (Call 4/2018, art. 1 par. 5 RAE Decision 1026/2018) for category B 100 MW (Call 5/2018, art. 1 par. 5 RAE Decision 1026/2018) and 229 MW for wind energy (Call 6/2018, art. 1 par. 5 RAE Decision 1026/2018). Furthermore, the tender will take place only if the bids submitted to the tender exceeds 40% of the auctioned capacity (ch.B art. 10 par. 1.1.3 RAE Decision 417/2016). For the 2018 tenders, the level of competition is set at 75% (Call 4-5-6/2018 ch. B art. 10 par. 1.1.3 RAE Decision 1026/2018). |
Pricing rules | In Greece, ‘pay as bid’ bidding process is followed (ch.B art. 14 par. 2.3 RAE Decision 417/2016 and Call 4-5-6/2018 ch. B art. 10 par. 1.1.3 RAE Decision 1026/2018). It means that theat successful bidders receive a subsidy linked to the level of their bid, meaning that each tenderer may receive a contract for a different subsidy level at the end of the bidding process, even if they are all providing the same service. |
Lead time | The tendered capacity must be commissioned within 18 months for category A and 24 months for category B PV installations (art.7 par. 9e Law No.4414/2016). For the 2018 tenders, the following deadlines are set: • For PV Category A: 12 months after the publication of the tender results (Call 1/2018 art. 1 par. 6 RAE Decision 321/2018 and Call 4/2018 art. 1 par. 6 RAE Decision 1026/2018) • For PV Category B: 15 months for PV between 1 MW - 5 MW and 18 months for PV > 5 MW. 6 months are added if PV is connected to the Transmission System via a substation (Call 2/2018 art. 1 par. 6 RAE Decision 321/2018 and Call 5/2018 art. 1 par. 6 RAE Decision 1026/2018) • For wind energy: 24 months for wind between 3 MW -– 10 MW and 36 months for Wind > 10 MW. 6 months are added, if the plant is connected to the Transmission System through a substation (Call 3/2018 art. 1 par. 6 RAE Decision 321/2018 and Call 5/2018 art. 1 par. 6 RAE Decision 1026/2018). |
Frequency of tenders | After consultation with the Regulatory Authority for Energy, the Ministry of Environment and Energy shall issue a decision specifying the frequency of the tenders as well as the capacities available for each technology and each tender separately (art. 7 par. 2 Law No. 4414/2016). For 2019, 300 MW of PV and 300 MW for wind energy added with the remained undistributed capacity from the 2018 tenders will be auctioned (art. 2 RAE Decision 1026/2018). |
Addressees
Eligible applicants are all natural persons and legal entities that have (ch.A art.1 par.1.2st RAE Decision 417/2016 in conjunction with art.7 par.10 Law No.4414/2016):
- An active connection agreement or;
- An active final grid connection offer with a submitted letter of guarantee that amounts to 1% of the total investment cost.
Further restrictions stipulated in ch.B art.9 RAE Decision 417/2016 may apply. For example, (legal entities or legal persons are under prosecution or in liquidity process are not eligible).
For the 2018 tenders applicants should have (Call 4-5-6/2018 art.1 par.5 RAE Decision 1026/2018):
- An active connection agreement or
- An active final grid connection offer
- a letter of guarantee for participation that amounts to 1% of the total investment cost
- the participation fee (€ 500 for PV Category A and € 1,000 for PV Category B and Wind Energy) Furthermore, Energy Communities can also take part in the auction (Call 4-5-6/2018 art. 7 par. 3 RAE Decision 1026/2018 in conjunction with Law No. 4513/2018)
Procedure
Process flow and deadlines | Stage A: Registering to the electronic platform and submission of application and related documents to RAE ( Call 4-5-6/2018 art. 10 par. 1.1 RAE Decision 1026/2018).
Stage B: Realisation of the electronic auction (Call 4-5-6/2018 art. 10 par. 2.3 RAE Decision 1026/2018 ). Stage B: Realisation of the electronic auction. The electronic auction follows the “Yankee Reverse” format, where the lowest bid will be accepted. The bids are binding. RAE announces the final list of successful bids in a descending order. Successful bidders sign an Operating Support Contract for a FiP with the Former LAGIE- DAPEEP (RES and Guarantees of Origin Regulator) (art. 9 Law No. 4414/2016). Furthermore, within fifteen (15) days after the issue of the final list of successful bids successful bidders have to submit a “Good Operation” guarantee letter that amounts to 4% of total investment cost (Call 4-5-6/2018 art. 11 par. 2.6.2 RAE Decision 1026/2018 in conjunction with 8). |
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Competent authority | The Ministry of Environment and Energy is responsible for stipulating the details of the tender (art. 7 par. 2 Law No. 4414/2016). RAE conducts the tenders and Former LAGIE-DAPEEP (RES and Guarantees of Origin Regulator) and/or Hellenic Distribution Network Operator (for non-interconnected islands) are responsible for signing Operating Support Contracts with successful bidders (art. 9 and art. 10 Law No. 4414/2016). |
Penalties
Amount of the fee | If project realization deadlines are not met, the RES plant connection agreement is annulled (ch. B art. 17 RAE Decision 417/2016 and Call 4-5-6/2018 ch. B art. 17 RAE Decision 1026/2018). |
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Distribution of costs
State | The feed-in premium is disbursed from the “Special Account for RES and CHP”. The revenue of this Account is acquired through trading GHG emission allowances (art. 143 par. 3b Law No. 4001/2011). |
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Consumers | The costs of the feed-in premium system are borne by the consumers, who are obliged to pay a "Special Tax for the Reduction of Greenhouse Gases", which is added to their electricity bills (art. 40 par. 3c Law No. 2773/1999). The tax depends on the consumer category, is revised twice a year by the Regulatory Authority for Energy and varies from € 2.47 to 26.08 per MWh (RAE Resolution No. 1101/2017 in conjunction with art. 143 Par. 3a Law No. 4001/2011). |
Plant operator | Plant operators and electricity suppliers pay fees for the “Day Ahead Scheduling” as well as the sums that might emerge from Imbalance Settlement (art. 143 par. 3a Law No. 4001/2011). |
Distribution mechanism | The Former LAGIE-DAPEEP (RES and Guarantees of Origin Regulator) reimburses the foreseen support, i.e. feed-in premium, through a “Special Account for RES and CHP” (Art. 40 Par. 3c Law No. 2773/1999 in conjunction with Art. 1 Min Res /F1/oik. 17149 in conjunction with Art. 143 Par. 2 Law No. 4001/2011). The “Special Account for RES and CHP” is divided in two basic categories: “Special Account for RES and CHP for the Transmission System” and “Special Account for RES and CHP for non-interconnected system”. “Special Account for RES and CHP for the Transmission System” is further divided into subaccounts: 1. “Subaccount of Electricity Market”, whose revenues are (art. 143 par. 3a Law No. 4001/2011):
2. “Subaccount of Support”, whose revenues include (art. 143 par. 3b Law No. 4001/2011):
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