EU approves € 250m grant for pumping storage in Amfilochia

LAST UPDATE: 17:56

By Tasos Dasopoulos

The grant of 250 million euros for a project for the construction and operation of a hydroelectric energy storage facility through pumping (pump storage) in Amfilochia through the Recovery Fund was approved by the European Commission.

This is a critical infrastructure project for the energy sector, as it will make a decisive contribution to energy security, in the context of the energy transition and the increased penetration of RES.

The measure will be partly funded by the Recovery and Resilience Mechanism (MAA), following the positive evaluation of the Greek Recovery and Resilience plan by the Commission and its approval by the Council.

The aid will take the form of an investment grant of EUR 250 million and annual support – financed by a levy imposed on electricity suppliers – to supplement market revenues, in order to achieve an acceptable rate of return on investment. The supported storage facility will have a capacity of 680 megawatts (MW) and will be connected directly to high voltage transmission lines.

By supporting the operation of existing renewable energy units, as well as by facilitating the creation of new ones, the project will contribute to the smooth and efficient transition of the Greek power generation system to clean renewable energy sources, in line with the goal of decoupling the European Green Agreement.

The Commission has assessed the measure on the basis of EU State aid rules, in particular Article 107 (3) (c) of the Treaty on the Functioning of the European Union, which allows Member States to support the development of certain economic activities under certain conditions. , as well as state aid guidelines in the fields of environment and energy.

The Commission considered that the aid was necessary and of an incentive nature, as the project could not have been carried out without public support. In addition, the measure is proportionate, as the level of aid corresponds to the actual financing needs and the necessary safeguards will be in place to limit the aid to a minimum (eg adjusting the annual support and the desired internal rate of return in the event of cost increases construction).

The Commission has also taken into account the inclusion of the project in the list of European projects of common interest in the field of energy. The Commission therefore concluded that the positive effects of the measure offset any possible distortion of competition and trade caused by support. On this basis, the Commission adopted the measure under EU State Aid Rules.

K. Skrekas: Critical project for the carbonization of the economy

“The project of pumped storage in Amfilochia is crucial for the increase of the penetration of RES and the carbonization of the Greek economy”, said the Minister of Environment and Energy, Costas Skrekas, for the approval of the project.

He stressed: “The investment will contribute to the adequacy of power and security of supply of the electricity system. It will also be a pillar of regional development with the creation of 1,200 new jobs during construction and 120 during the operation phase, creating productive conditions for utilization of the human resources, highly specialized, that our homeland has ”.

Concluding, Mr. Skrekas stressed: “I would like to thank the Executive Vice-President of the European Commission and Commissioner for Competition, Margrethe Vestager, and the officials of the Commission’s Directorate-General for their cooperation in advancing this important project.”