Greece’s renewable energy sector has been experiencing a surge in activity, according to Junior Partner Prokopis Linardos. Prokopis discusses the rise of corporate PPAs, the impact of streamlined licensing processes, and the growing focus on energy storage and offshore wind projects while reflecting on the country’s ambitious decarbonization targets and what the future holds for the sector.
CEELM: What work has been keeping your energy practice busy over the past year?
Linardos: Over the past year, our energy practice has been particularly busy with transactions and financings in the renewable energy sector, especially in photovoltaic and wind farm projects. Greece has seen substantial activity in this area, and we’ve had the opportunity to advise Greek financial institutions on financing major projects, often involving funds from resilience programs. This work has also covered acquisitions by both domestic and foreign investors, corporate power purchase agreements, and project agreements (EPC contracts, supply agreements, etc.).
One of the highlights for us was assisting one of the largest managers of sustainable assets in the world, Mirova, in entering the Greek market. We advised Mirova on the acquisition of a 50% stake in an operating wind farm in Greece and on the execution of an agreement for the development of twelve wind parks in Greece with a total capacity of 300 megawatts, which agreement is currently being implemented. In addition, in the past year, we advised many RES producers in the negotiation and execution of corporate PPAs – gradually expanding in the Greek renewable energy markets replacing the feed-in premium contracts.
CEELM: What has been the primary driver behind these levels of activity?
Linardos: The ongoing energy transition has been a significant driver, as Greece, like the rest of Europe, focuses on decarbonization and combating climate change. The targets for global environmental sustainability, particularly the goal of achieving full decarbonization by 2050, continue to shape market dynamics.
Locally, legislative changes have played a key role. Recent amendments have significantly simplified the licensing process and reduced respective timelines, making Greece an even more attractive destination for foreign investors. At the same time, the projects that have been awarded with feed-in premium contracts through competitive auctions were at a ready-to-build stage last year, seeking financing. Another crucial factor has been the availability of funds through the EU Resilience and Recovery Facility. This has provided a solid foundation for renewable energy projects, offering much-needed financial support to ensure their viability.
CEELM: Apart from that, are there any other sectors of note in the mix?
Linardos: While renewables dominate, there’s growing momentum in energy storage systems, particularly battery energy storage. This sector is emerging as a priority in Greece, creating additional capacity for renewable energy and enabling a more effective penetration of renewables into the energy mix. We’ve seen the first projects under the Greek support scheme recently, and this area is expected to grow rapidly in the coming years.
Offshore wind farms are another exciting development – legislation for this sector has recently been enacted, with a goal of reaching 2 gigawatts of capacity by 2030. Foreign investors are showing considerable interest, and the expected investment of EUR 2-3 billion by 2030 makes this a major sector for Greece. Our team is well-prepared to handle these projects, given our extensive experience in both offshore and onshore renewable energy developments.
CEELM: Finally, what do you think the next 12 months will look like?
Linardos: The outlook for the next 12 months is very positive! We anticipate an expansion in the renewables portfolio as energy transition efforts continue, thus investments in renewables will remain robust.
Battery energy storage systems will gain even more traction, especially with recent support mechanisms. Energy storage will create additional space in the electricity system, speeding up the award of grid connection terms to RES projects, thus facilitating a broader penetration of renewables into the energy mix. Offshore wind farms will also begin to take shape, with investments being laid out as part of Greece’s ambitious energy strategy. The next year promises to be an exciting one for the Greek energy sector!