Belgium, (Brussels Morning Newspaper) The European Commission approved Greek energy storage plans worth 341 million euro under EU state aid rules.
The plan includes construction and operation of energy storage facilities and is to be financed through the Recovery and Resilience Facility (RRF), the EC noted in a statement on Monday.
The plan is aimed at helping Greece to integrate renewable energy from solar and wind farms into its electrical grid, and will contribute to the EU’s green push.
Margrethe Vestager, European Commissioner for Competition, pointed out that “increasing available electricity storage capacity in the system is key to make grids more flexible and better prepared for a future in which renewables form the backbone of the decarbonised electricity mix.”
She pointed out that the Greek plan will be partly financed through the RRF and stressed that it “will contribute to the development of competitive markets for electricity system services while helping Greece meet its emission reduction targets.”
The plan will promote construction of electricity storage facilities with total capacity of up to 900 MW.
The EC pointed out that projects “will be selected through a transparent and non-discriminatory bidding process.” The body added that agreements with contractors should be signed next year and projects completed by 2026.
It noted that the EU will provide funds in the form of investment grants and annual payments for operation over ten years.
The Commission stressed that the plan is in line with EU rules that allow member states to support select economic activities if conditions are met.
The body noted that proposed aid is necessary and proportionate, and includes safeguards to limit aid to the minimum.
“The Commission therefore concluded that the positive effects of the measure outweigh any potential distortion of competition and trade brought about by the support.”
As power generation from wind and solar is not reliable, integration of renewables in the energy grid requires the addition of electricity storage facilities.
The Commission pointed out that the share of renewables in the energy mix is to increase considerably in the coming period as part of the green push, which will require construction of electricity storage facilities.