I. Introduction

This memo provides an overview of the current regulatory framework governing the development of offshore wind farms (OWFs) in Greece, highlighting the recent legislative advancements, licensing regime, and the pivotal milestones set forth by the Greek government. The development of OWFs represents a significant stride towards renewable energy adoption, aligning with Greece’s commitment to energy diversification and sustainability.[1]

II. Legislative Background

Law 4964/2022, enacted by the Hellenic Parliament, marks a substantial shift in Greece’s renewable energy policy, focusing on the development of OWFs, as well as establishes a structured process for OWF development, integrating the principles of environmental protection and sustainable energy use.

III. Development Planning and Area Designation

According to the procedure of article 7a of Law 3468/2006 (A’ 129), part of this area is delimited as an Offshore Wind Farm Organised Development Areas (OWFODA), while under the same procedure, part of the area is delimited as an Area of First Choice of Renewable Energy Sources.

In addition, the Hellenic Hydrocarbons and Energy Resources Management Company S.A. (HEREMA)[2] is the responsible body on behalf of the Greek State, regarding the management of rights related to the exploration, exploration and identification of OWFODAs, as well as the assignment of exploration rights to third parties in these development areas. OWFODA areas will be selected based on their wind potential, environmental assessments and their compatibility with national energy strategies.

IV. Licensing Procedure

A. Research Permit Issuance

Investors seeking to develop OWFs shall have first to obtain a research permit from HEREMA, demonstrating their technical, financial, and professional competencies.

B. Competitive Selection Process

Following the issuance of research permits, a competitive bidding process will be conducted to allocate installation areas to the most viable projects.

V. Producer’s Certificate and Project Implementation

Successful bidders are awarded a Producer’s Certificate, granting them the authorization to develop and operate an OWF. This certificate is valid for up to 30 years and mandates project commencement within six years of the bidding process.

VI. Special Fees and Grid Connection

OWF operators are also subject to a Special OWFs Fee on electricity sales, while the Independent Power Transmission Operator (ADMIE) is responsible for connecting the OWFs to the Hellenic Electricity Transmission System (HETS).

VII. Key Milestones in OWF Development

• Approval of National OWF Development Programme: Issuance of a Joint Ministerial Decision, including SEIA approval.
• Determination of OWFODA: Presidential Decree defining OWF development terms by 2030.
• Investor Qualification and Licensing: Publication of qualification criteria and issuance of Exploration and Survey Licenses.
• Capacity Allocation for OWF Projects: Ministerial Decision on power capacity distribution for each OWF site.
• Competitive Bidding for OWF Projects: RAE-organized bids among licensed investors.
• Final Permit and Financial Closure: Agreement between OWF investors and IPTO.
• Construction and Interconnection: Initiation of OWF construction and grid integration.

VIII. Recent Developments and Industry Perspectives

ELETAEN, the Hellenic Wind Energy Association, has recently welcomed the National Program for OWF,[3] which includes ambitious targets for OWF capacity by 2030, 2035, and 2050. The implementation of this program requires substantial investment and a multi-faceted approach, involving a flexible licensing system, international interconnections, investment in supply chains, societal engagement, strategic planning, and government support for HEREMA.

IX. Conclusion

It has to be said, that the regulatory framework for OWFs in Greece, particularly under Law 4964/2022, provides a clear, structured pathway for the development of this crucial renewable energy resource, while the outlined milestones and recent industry insights demonstrate a concerted effort towards sustainable energy development, reflecting Greece’s commitment to environmental stewardship and energy independence.

Maria-Konstantina Lili-Kokkori
Lawyer
LL.M. Energy and Climate Law, University of Groningen
LL.M. Public International Law, Law School of Athens,
National and Kapodistrian University of Athens

[1] HELLENIC FOUNDATION FOR EUROPEAN & FOREIGN POLICY (ELIAMEP), Offshore wind energy in Greece: A study of the social and economic impacts, available at [https://www.eliamep.gr/wp-content/uploads/2021/09/Social-impact-study_Alma-Economics_GR-1.pdf]

[2] More information about the competent authority, HEREMA, is available at [https://herema.gr/offshore-wind/].

[3] PRESS RELEASE on the occasion of the public announcement of the National Program for Offshore Wind Farms Offshore Wind: Great opportunity for Greece, dated 31 October 2023, available at [https://eletaen.gr/en/press-release-for-offshore-wind-parks-in-greece/].