The current operating aid scheme in the renewable energy sources sector of Greece and its future prospects
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Keywords
Greece ; Auctions ; Renewable energy ; Support schemes ; Operating aid ; State aidAbstract
Renewable energy has become widespread globally and is expected to become the main power source in the decade to come, due to its beneficial environmental impact, the rapid decrease of the levelized cost of energy for renewable power units, the technological developments and the political will on facilitating de-commissioning of lignite units. Greece has a competitive advantage as far as the renewable energy is concerned due to the favorable wind and solar conditions. For this reason, renewable energy takes up a high percentage in the electricity generation mix of the Hellenic Republic. However, energy markets over the last two decades could not by themselves develop the renewable energy sector due to low profit margins even though the cost of the technology has been reduced significantly during this period. For this reason, the states, as well as various organizations, have promoted financial support schemes for renewables, adapted gradually to the technological and electro-production cost developments. This research aims to study the current operating aid scheme for renewable energy that was implemented by the Greek government in 2016 and to assess the prospects of future development of the Greek renewable energy sector.