Investment opportunities in Greek Market · 2015-09-30 · Investment opportunities in Greek Market Greek ... under the condition of supply of a letter of financial guarantee of a

Investment opportunities in Greek Market

Greek – German Industrial and Commercial Chamber

Waste to Energy – The Utilization of organic waste through biogas production

Thessaloniki, September 2015

_Contents

_ Current Status of Projects in Greece _ Market Incentives and Policies

_ Funding Opportunities

_ Bottlenecks

Thessaloniki, 43, 26th Octovriou str., P.C. 546 27 T. + 30 2310 552 110, f. +30 2310 552 107

Athens, 168 Sygrou Ave., P.C. 176 71 T. + 30 210 9590030, f. +30 210 9561837

www.samaras-co.com [email protected]

http://www.samaras-co.com



mailto:[email protected]






_Current Status of Bioenergy Projects in Greece

_ According to the reports of the Greek Electricity Market Operator (LAGIE), the combined

installed capacity of Biomass and Biogas Power plants as of the last report of July 2015, is 49 MW.

_ In the same report, the aforementioned capacity of 49 MW is distributed accordingly in terms of technology and geographic allocation as in the following charts.

1,85; 4%

42,008; 85%

4,303; 9%

1,024; 2% Technology

Landfill Gass up to 2MW

Landfill Gass > 2MW

Biogas from Biomas up to 3MW

Biomass up to 1MW34,96; 72%

2,35; 5%

1,2; 2%

0,5; 1%

0,38; 1% 9; 18%

0,5; 1%

Geographic allocation

ATTICA

THESSALY

HEPIRUS

E. MACEDONIA AND THRACE

W. MACEDONIA

C. MACEDONIA

W. GREECE

Thessaloniki | September 2015










_Current Status of Bioenergy Projects in Greece


_ It is worth mentioning that according to data from July 2014, the installed capacity was 46 MW. Thus we observe a very small increase of 3 MW in the last year, that on the one hand reminds us the serious problems that the Greek market faces (unstable political situation, lack of finance) but on the other hand highlights the investment opportunities arising from a virgin market.

_ According to the latest official data from the Regulatory Authority for Energy (RAE), issued on March 2015, the overall licenses granted for Biomass and Biogas Power plants over 1MW, amounts to 476,54 MW.

_ For projects under 1 MW there are no published data from Hellenic Electricity Distribution Network Operator (HEDNO). However, from our market experience, several licenses were granted.

_ Therefore a surplus of fully licensed but not yet installed projects exists in the market,

and many of them are openly available for sale, providing an opportunity to overcome time consuming licensing procedures.










_Market Incentives and Policies


_ In a policy level, on June 2015 the Ministry of Reconstruction of Production, Environment and Energy released the National Plan for Waste Management (NPWM), which is in force from 24/07/2015, having included in the national policy axes the utilization of energy from waste via the production of biogas from several resources.

_ Additionally the NPWM, analyzing the actions to be taken for the period 2016 - 2020, incorporates in the economic annexes the allocation of economic incentives for the development of private Biogas utilization and/or production plants.

_ The current NWPM, is issued for the period 2016 – 2020 following case Law 4042/2012 for the implementation of the direction 2008/99/EC for the protection of the environment through criminal law.












_ As a result of the aforementioned release of

the National Plan for Waste Management (NPWM) we expect in the next coming months many relevant authorities all over Greece to start the procedures for the construction and operation of Biogas projects.

_ Taking into account that such projects are usually large scale projects (Nea Liosia 23,58 MW, Tagarades 5 MW) that seems to be a great investment opportunity for developers, EPC contractors and operators of Biogas power plants.

Tagarades Landfill, Thessaloniki

Ano Liosia Landfil, Athens












_ One of the major incentives to invest in a Biogas Project in Greece is the current Feed In Tariff (FIT) Mechanism for Biogas Power plants.

_ Greece provides, compared to other member states, a relatively high FIT for Biogas Power plants.

€/MWh

Technology No support/subsidy* With support/subsidy*

Landfill Biogas up to 2MW 131 114

Landfill Biogas > 2MW 108 94

Biogas from biomass up to 3MW 230 209

Biogas from biomass up to 3MW 209 190

** The plant producer has received some kind of government support ruled by the Investment Law, co funded by the European Union (NSRF) . In this case the support must exceed 20% of the total investment as of 12.02.2013 and is included in the respective financial statements. In addition, 50% of the support should have been paid off (subparagraph IG2 case law No. 4254/2014) *If the plant producer does not fulfill any of the requirements of the With Support category, the plant producer, fall into the No Support Category as of (subparagraph IG2 case law No. 4254/2014)










_Funding Opportunities


_ The major available tools to support a Biogas Project in Greece

_ Upcoming Incentives Law

_ JESSICA programme












_ The Case of Incentives Law 3908/2011 (modified by Law 4146/2013)

_ The previous incentives law, is currently not applicable since the last applications were submitted to the relevant authorities a year ago, on October 2014. However, we anticipate that the forthcoming incentives law which was currently under public consultation should be elaborated in the same scope.

_ Objective of Incentives Law 3908/2011 (modified by Law 4146/2013)

_ Promotion of economic development with the formation of investment subsidies aiming to enhance entrepreneurship, technology and competition by promoting green economy, efficiency in the accessible infrastructures and the engagement of the available human resources.

_ Eligible investment projects

_ Energy Projects excluding PVs. _ Minimum investment 200.000€. _ Especially for Biogas projects the proposal should have included a

comprehensive analysis of the supply of inputs.













_ Under the provisions of the Incentives Law it was provided

_ Tax Relief _ Beneficiary must contribute at least at 25% of the investment

_ Subsidization _ Beneficiary must contribute at least at 25% of the investment

_ Lease financing

_ Level of subsidization _ 15-55% under public funding depending on the geographic region and the

business size of the applicant













_ Eligible Expenses _ Purchase and installation of equipment _ Construction, installation and renovation of the facilities (60 or 70% for

current or new funded company) _ Intangible Asset Purchase _ R&D Processes _ Consulting Services

_ Funds installment schemes

_ The granted amount of subsidization could be deposited in advance up to 100%, under the condition of supply of a letter of financial guarantee of a legitimate monetary institute of any European member state

_ After the completion of the project for 50% and 100%

_ Proposal submissions were being accepted all year round and evaluated twice a year











Thessaloniki | September 2015 _ The Case of JESSICA

_ Joint European Support for Sustainable Investment in City Areas (JESSICA), is an

initiatives of the European Commission developed with the European Investment Bank. It supports sustainable urban Development and Regeneration through financial engineering mechanisms.

_ The core of JESSICA programme is the Urban Development Funds, investing in public and private cooperation for the implementation of sustainable urban development plans. These funds are being managed by major Greek Banks .

_ The JESSICA programme is eligible to fund 70% of an investment in a biogas project, by financing by 3-5% the interest rate of a loan issued for the respected amount, by the development funds.

_ The evaluation criteria are focused mainly on investing policy, the viability of the project and the level of leverage.

_ A number of projects currently operating in Greece were subsidized under this scheme.










_Bottlenecks


_ Τhe current Feed in Tariff scheme for projects of Biogas production through biomass assigned after 01.01.2014, under the provision of subparagraph IG5 of case Law 4254/2014 would not be applicable after the national installed capacity of these projects exceed cumulative 50 MW.

_ After the release of the Incentives Law, we are still on hold for a new legal scheme to

support investments.

_ The procedure of obtaining new licenses is usually time extensive and complex.

_ We are currently in anticipation of a robust scheme for the management of bio waste.







Thank you for your attention!


- Athens, 168 Sygrou Ave., P.C. 176 71

T. + 30 210 9590030, f. +30 210 9561837










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Investment opportunities in Greek Market · 2015-09-30 · Investment opportunities in Greek Market Greek ... under the condition of supply of a letter of financial guarantee of a