The Development Law that came into force in July 2016, foresees support for biofuels (art.9 par.8 Law No.4399/2016). More specifically, subsidies, leasing subsidies, and subsidies for the creation of new jobs are provided, while they can be substituted with tax regulation mechanism under the Development Law (s. “Tax regulation mechanism”).
Eligible technologies
The production of sustainable biofuels which are not based on edible plants and are not subject to a supply obligation or blending is eligible for support (art.9 par.8 Law No.4399/2016).
Biofuels
Eligible for support are biofuels which are not based on edible plants and are not subject to a supply obligation or blending (art.9 par.8 Law No.4399/2016).
Amount
Only the production of sustainable biofuels which are not based on edible plants and are not subject to a supply obligation or blending is supported (art.9 par.8 Law No.4399/2016).
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
The following types of support are alternatively offered by the Development law (art. 10 Law No. 4399/2016):
1 Subsidies
2 Leasing subsidies
3 Subsidies for the creation of new jobs
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
Biofuels are eligible for support, subject to the following limitations (art. 11 par.3 subpar.2h Law No. 4399/2016):
For biofuels (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 and is available at: http://ec.europa.eu/competition/state_aid/cases/252063/252063_1547272_57_2.pdf
Addressees
Entitled party. All enterprises based in Greece or have a branch in Greece at the time the Development Law enters into force, are eligible as long as they are
1) private enterprises
2) commercial companies
3) cooperatives and
4) social cooperative companies (art. 6 Law No. 4399/2016)
Obligated party. The Ministry of Economy, Development and Tourism (YPOIAN) (art.14 par.7 Law No. 4399/2016)
Procedure
Process flow
Proposal Submission: Interested parties submit their proposal 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 the predefined criteria. This primary assessment examines the completeness and legitimacy of the proposal and . This primary assessment has a duration of twenty (20) days (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, subsidy is validated after 50% of the investment plan is completed. The rest of the sum is granted once the investment is completed. Leasing subsidy is granted once it is validated that the related equipment is leased. Subsidy for the creation of new jobs is granted once the investment plan for the creation of new jobs is validated and the subsidy is paid off each twice a year.
Competent authority
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 granted by the state and more specifically by the Ministry of Economy, Development and Tourism (art.14 par.7 Law No. 4399/2016). The budget varies per each call per investment category.
Plant operator
Own contribution amounts to 25% of total investment cost (art.5 par.1 Law No.4399/2016).
Greece
