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Brussels discusses Greek solar payback

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Published 25 October 2011

EU’s energy commissioner Gunther Oettinger, the director general for energy Philip Lowe, and the head of the EU’s Athens task force Horst Reichenbach have discussed the idea of enabling Greece to repay some of its debts to EU member states, such as Germany, by providing them with solar energy. 

EurActiv has learned that the EU’s energy directorate general has been asked to investigate the idea’s potential, which is so far hampered by a lack of enthusiasm from EU nations.

“Several German companies have expressed interest in the idea but it would clearly be more interesting if several member states were involved,” a senior source told EurActiv.

Marlene Holzner, a spokesperson for the energy commissioner Gunther Oettinger confirmed that talks were ongoing.

“There is a task force in the European Commission where we have energy experts looking into the question of how energy could help Greece to grow economically,” she told EurActiv. “Solar is one topic, and energy efficiency is another.”  

Greece enjoys 50% more solar radiation than Germany and yet its solar energy output is about 80 times smaller, according to the Greek energy ministry. 

Speaking at a Brussels policy meeting last week, a top EU official told EurActiv that there was “no reason” why Greece could not benefit from investment in solar energy on its own territory – or cooperate in its export to other countries.

But “it depends whether the country or countries concerned are willing to allow Greek promoters to take advantages of their national schemes,” he said.

“There is a great need in Germany, and maybe with some other countries [involvement] it could get off the ground. It’s certainly something which we’re talking about with the Athens task force people, and they’re quite interested in it,” the EU official added. 

Earlier this month, the German chancellor Angela Merkel called for her country’s solar energy subsidies to be reduced and clean energy to be imported from countries such as Greece instead.

Such a move could smooth over Germany’s transition from nuclear power in the aftermath of the Fukushima disaster.

'We want to take German firms to Greece': Rösler

The German economy minister Philipp Rösler subsequently visited Athens with 60 business leaders on an mission to explore investment opportunities.

“In the spirit of solidarity, it is the task of all Europeans to help Greece get back on its feet economically,” he reportedly told the German broadcaster ZDF. “And we want to take German firms to Greece,” he added.

The Greek economy has been in crisis since 2010, with a succession of multi-billion euro bailout packages and austerity measures failing to satisfy the international banking sector.

In September, Athens announced Project Helios, an optimistic plan for a quantum expansion of Greece’s solar power production from 206MW to 2.2GW by 2020, and then 10GW by 2050.

The scheme is intended to attract up to €20 billion and create between 30,000 and 60,000 jobs, but it will first need to overcome what the Greek newspaper Ekathimerini rcalled “bureaucratic and legal obstacles”.

According to Paul Van Son, the CEO of the Desertec Industrial Initiative, Project Helios could face other problems too.

“Greece is very hilly, the infrastructure is very expensive and there’s less solar irradiation than in southern Spain,” he told EurActiv.

Greek locations still had to be found “where the conditions are favourable enough to create a feasible business case, connect the electricity grids and move power from A to B,” he added. 

Van Son declined to say whether Desertec was currently talking to the Greek government about investments. But a Greek firm, Terna Energy, recently bought a stake in the company, which is mostly active in North Africa.

Another leading US solar PV firm, First Solar, says it is looking at investment in Greece, partly “because Helios is coming around the corner,” Christopher Burghardt, the firm’s Vice President confirmed to EurActiv.

“The problem is that Greece has a real constraint on financing so my appeal to European governments is to provide financing guarantees to project investors, because that’s what we need,” he said.

Next steps: 
  • 26 Oct. 2011: EU summit
Arthur Neslen

COMMENTS

  • It may be worth recalling that one of the reasons that Greece is in the state it is in, is due to the export orientated model followed by German industry. The Germany solar industry now sees Greece as a great place for PV. As inventors of the phrase “beware of strangers bearing gifts” the Greeks would do well to treat this current idea with some caution. Particularly when German politicians (hi Phil!) start talking about “solidarity”. Phil is, ‘natch, “solid” with the German PV industry but the Greeks?. One wonders, did those 60 industrialists fly out to Athens with Phil via Vulture Air?

    Another questions: would power generated by large-scale PV be exported? How? Oh silly me, of course Siemens has good HVDC kit so yet another export opportunity.

    In the case of difficult terrain, yes Greece is hilly and rocky – oddly having built rural power systems I notice that overhead lines can go just about anywhere. In the case of solar radiation southern Spain and Greece are at similar latitudes. Perhaps Mr Van Son should comment on things he knows something about, e.g. pointless organisations such as Desertec and try looking at an atlas from time to time.

    A suggestion for the Germans. If you want to help Greece, then focus on community PV and wind schemes that help villages and small towns generate their own electrical power. This will move Greece towards energy independence, provide local jobs and give a reasonable return to both equipment suppliers and finance companies (i.e. German banks). Given the comments in the article, this is unlikely to happen since it won’t provide the quick buck that German companies (and politicos) are looking for.

    By :
    Mike Parr
    - Posted on :
    25/10/2011
  • What an interesting thought!
    Here we are sitting in Malta with a solution that is better than the one which is proposed by Germany.
    Greece has a huge financial debt..as also does other countries..and it imports mega amounts of oil..as also does other countries. There is no such thing as a quick fit solutionm, but there is one that can be executed within 5 years.
    Egypt..a pretty close neighbour to the EU..has as much natural gas as Kazakhstan - if not more - and it is readily available for shipment across the Mediterranean in tankers (liquified) and for connecting to the gas grid in the EU. In the interim therefore this massive excess of natural gas could be exported through Greece (and used in Greece) to off-set the use of oil for power generation as well as feeding the EU network. Forget Nabucco and the South Stream gas pipelines..we cannot afford them in any instance, and there is more gas in Egypt than in Central Asia and it is nearer. Greece then becomes a double benficiary..a transmission country and a user. In the longer term a pipeline between Egypt and Greece is built..considerably less distance than Kazakhstan and it would also help Egypt become stable again after its revolution.
    Here then is the aded twist, by using liquid natural gas this supply could also be delivered to us in Malta and Italy and France and inter-alia Germany so alleviating the issues of the Nuclear Conyndrum currently pervading that latter country.
    And now whisly I am sitting here in Malta, a solution for its waste strategy that will cost it - Greece - nothing! (Well not exactly!) Whislt contemplating that Greece has been looking at its overall Municipal Solid Waste Strategy and has ben hard-pressed to find a solution that meets the two tenets of Environmental Acceptance and Affordability we here propose a solution which will convert this waste to the renewable fuels Ethanol and Butanol. In this way from the sources of all the waste generated in the Athens Region we could produce over 45% of all the transportation fuel needed for cars in Greece. By such an approach the Company which i have heard of would be interested in solving the Greece Municipal Solid Waste programme by putting in place a proposal which would not need any financing from the Greek Government. The only need would be an offer of land suitable for the facility (Facilities) and a guarantee that the waste would be offered for treatment by this method and it would not need to increase treatment fees at all. If this is surprising to the readers and the EurActiv BlogActiv correspondents then don't be: this is a real solution and a real offering.

    By :
    Paul Hu
    - Posted on :
    26/10/2011
Background: 

In late July 2011, eurozone leaders put together a second bailout for Greece to supplement a €110 billion rescue plan launched in May last year.

It is expected to include fresh emergency loans to Athens from eurozone governments and the International Monetary Fund, and possibly a range of other measures.

Worried about the impact on financial markets and wary of angering their own taxpayers, eurozone governments struggled for several weeks to agree on major aspects of the plan, especially a contribution by private sector investors.

In many months of haggling with the EU's banks, the private sector has agreed to take a hit on its holdings of Greek sovereign debt. Between 2011 and 2019, the private sector's total contribution to a Greek rescue could amount to €106 billion, according to the July summit conclusions.

The second deal also saw disgruntled countries like Finland seek guarantees in return for their contribution to the Greek bailout. Finnish and Greek officials subsequently struck a deal whereby Greece would provide cash in return for the commitment of Finnish taxpayers to the bailout.

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