The Development Law that came into force in July 2016, foresees support for CHP plants and RES H&C plants (for self-consumption, but not only) (art.9 par.8 Law No.4399/2016). More specifically, income tax relief and stabilization of income tax coefficient are provided, while they can be substituted with other support mechanisms, i.e. subsidies, under the Development Law (s. “Subsidies”).
Eligible technologies
All RES H&C are eligible (art.9 par.8 Law No.4399/2016).
Aerothermal energy
Eligible (art.9 par.8 Law No.4399/2016).
Hydrothermal energy
Eligible (art.9 par.8 Law No.4399/2016).
Biogas
Eligible (art.9 par.8 Law No.4399/2016).
Biomass
Eligible (art.9 par.8 Law No.4399/2016).
Geothermal energy
Eligible (art.9 par.8 Law No.4399/2016).
Solar thermal energy
Eligible (art.9 par.8 Law No.4399/2016).
Amount
To be eligible for support, minimum investment should amount to (art.5 par.3 Law No. 4399/2016):
Large enterprises: € 500,000
Medium enterprises: € 250,000
Small enterprises: € 150,000
Very small enterprises: € 100,000
Social cooperatives/ cooperatives: € 50,000
RES for self-consumption can make up to 15% of eligible regional support. Regional support maximum is stipulated in the Regional Support Map (C (2014) 2642/7.5.2014), which is approved by the European Commission and is available at: http://ec.europa.eu/competition/state_aid/cases/252063/252063_1547272_57_2.pdf
As far as a CHP plant is concerned, eligible costs include (1) additional investments in the installation of an equipment that is needed for a CHP plant to function as a high efficient CHP, as compared to a conventional power plant of the same capacity, or (2) additional investment cost for upgrading the performance of the CHP plant (art.7 par. 7 Law No. 4399/2016).
The following types of support are alternatively offered by the Development law (art. 10 Law No. 4399/2016):
1. Income tax relief and
2. Stabilisation of income tax coefficient
RES are supported in the following investment categories:
General entrepreneurship (art.38 Law No.4399/2016). Only income tax relief is eligible
New independent SMEs (art.43 Law No.4399/2016). Only income tax relief is eligible
Supporting innovation for SMEs (art.48 Law No.4399/2016). Only income tax relief is eligible
Major investment plans (art.66 Law No.4399/2016). Tax relief can be provided for 12 years and stabilisation of income tax coefficient is provided for 10% of the total investment cost, up to a maximum amount of € 5 million.
RES are eligible for support, subject to the following limitations (art. 11 par.3 subpar.2h and 2z Law No. 4399/2016):
For CHP (art. 11 par.3 subpar. 2z Law No. 4399/2016):
45% of the eligible expenditure for large enterprises
55% of the eligible expenditure for medium enterprises
65%of the eligible expenditure for small enterprises
For RES H&C plants (art. 11 par.3 subpar. 2h Law No. 4399/2016) there are two options:
Option 1
If extra investment costs necessary to promote the production of energy from renewable sources are eligible costs under art. 41 par. 6 cases a and b of the EU Regulation 651/2014:
45% of the eligible expenditure for large enterprises
55% of the eligible expenditure for medium enterprises
65% of the eligible expenditure for small enterprises.
Option 2
If extra investment costs necessary to promote the production of energy from renewable sources are eligible costs under art. 41 par. 6 case c of the EU Regulation 651/2014:
30% of the eligible expenditure for large enterprises
40% of the eligible expenditure for medium enterprises
50% of the eligible expenditure for small enterprises.
Further support between 5%-15% is foreseen, if the investment takes place in certain regions specified stipulated in the Regional Support Map (C (2014) 2642/7.5.2014), which is approved by the European Commission.
Addressees
Entitled party. All enterprises based in Greece or havinge a branch in Greece at the time when the Development Law entereds into force, are eligible as long as they areincluding:
1) private enterprises,
2) commercial companies
3) cooperatives and
4) social cooperativee companies (art. 6 Law No. 4399/2016)
Obligated party. The Ministry of Economy, Development and Tourism (MEDT) (art.14 par.7 Law No. 4399/2016)
Procedure
Process flow
Proposal Submission: Interested parties submit their proposals to the Ministry of Economy, Development and Tourism or to the respective Administrative Region Authorities once a related call is issued. Interested parties are also obliged to pay a deposit fee that varies between € 300 - € 5,000 and should not exceed € 50,000 for major investment plans (art.13 Law No.4399/2016).
Primary Assessment: All investment plans are assessed according to predefined criteria. This primary assessment examines the completeness and legitimacy of the proposal (art. 14A Law No. 4399/2016).
Second Assessment:The second stage of the assessment takes specific economic criteria into consideration. There are two kinds of Assessment: Comparative and Direct. In relation to the Comparative Assessment, a ranking is made and those investment plans that have received the highest scores receive the subsidy. In relation to Direct Assessment, the proposal is examined on a “case-to case” basis according to specific criteria. The process is completed within fifty (50) days. Further inquiries for any of the proposals should be submitted within ten (10) days (art.14B law No.4399/2016).;
Investment Plan control: Competent authorities will control the realisation process of the investment plan. This control will be carried out once 50% of the investment plan (in economic or physical terms) is completed (art. 16 Law 4399/2016).
Support approval: The plant operator receives the support as a lump sum or in instalments, depending on the support category (art.20 Law No.4399/2016). More specifically, tax relief is validated after 50% of the investment plan is completed. Tax relief is offered for a period of fifteen (15) years. For major investment plans tax relief can be provided for 12 years and stabilisation of income tax coefficient is provided for 10% of the total investment cost, up to a maximum amount of € 5 million (art.66 Law No.4399/2016).
Competent authority
The authority in charge is the Ministry of Economy, Development and Tourism. In addition, the Ministry of Interior and the Administrative Regional Authorities are in cases in charge (art.14 par.7 Law No. 4399/2016).
Distribution of costs
State
The support is offered by the state and more specifically Ministry of Economy, Development and Tourism (art.14 par.7 Law No. 4399/2016). The budget varies per call per investment category.
Plant operator
Own contribution amounts to 25% of total investment cost (art.5 par.1 Law No.4399/2016).
Greece
