Greece, EU house up €1.6 billion fund for island decarbonization
The Greek authorities, the European Fee, and the European Funding Bank (EIB) possess launched the Islands Decarbonisation Fund. They’ve first and most critical secured €1.6 billion ($1.7 billion) to finance decarbonization projects valid via the Greek islands.
Ilias Tsagas
The Greek authorities, the European Fee, and the EIB possess signed an agreement in Naxos, Greece, to put the Islands Decarbonisation Fund, with the aim of financing decarbonization projects on Greek islands.
The fund’s mission administration will likely be handled by Greece’s Asset Pattern Fund (ADF), a instruct-owned asset administration venture. ADF will oversee the funded projects, initiating tenders when important, and document to Greece’s Ministry of the Ambiance and Vitality and the EIB, that might well well furthermore objective disburse the funds.
Greece’s Asset Pattern Fund (ADF), a instruct-owned asset administration venture, will arrange the Islands Decarbonisation Fund. Most frequently, the Greek authorities assigns several instruct-owned companies to the ADF, which oversees their privatization.
For the Islands Decarbonisation Fund, the ADF will arrange financed projects, initiating tenders when wanted, and document to Greece’s Ministry of the Ambiance and Vitality and the EIB, which will likely be on top of issues of disbursing funds to licensed projects.
Resources and targets
The European Union’s Emissions Trading Method (ETS) will finance the Islands Decarbonisation Fund. The ETS cap, in step with a cap-and-alternate skill, is house in emission allowances, that are supplied in auctions and might well well furthermore furthermore be traded.
“The EU ETS income basically flows to national budgets and member states need to expend it to toughen investments in renewable energy, energy efficiency enhancements and low-carbon applied sciences that serve minimize emissions,” acknowledged the European Fee.
The original agreement enables Greece to soft 25 million CO2 allowances below the EU ETS and expend the income to fund the decarbonization of its islands.
The cost of allowances fluctuates with the EU carbon market, but the Greek authorities recently acknowledged that, in step with the fundamental ETS tag instruct, the Islands Decarbonisation Fund has an preliminary funds of about €1.6 billion, with the attainable to amplify to €3.8 billion by 2032.
The tri-occasion agreement outlines three mission classes to be funded: renewable energy and energy storage, with at least half of the funds allocated to these; original electricity grid connections between the islands and Greece’s mainland; and infrastructure projects cherish electrical automobile chargers, chilly-ironing at ports, and water medicine vegetation.
The Islands Decarbonisation Fund must now not be puzzled with the Gr-Eco Islands Initiative, which the Greek authorities launched in 2021. The Gr-Eco initiative basically targets to enlarge slight-scale renewable energy and energy storage techniques on slight Greek islands which need to now not linked to the mainland grid. While the two are separate, an energy ministry spokesperson recently advised pv journal that the Islands Decarbonisation Fund will aid as a key funding provide for the Gr-Eco Islands Initiative.
Greece’s electricity transmission operator (IPTO) recently launched a young for a original grid line connecting Corinth on the mainland to Kos Island in the Dodecanese islands. The interconnection will feature a 380 km High Voltage Affirm Fresh (HVDC) cable with 1 GW of transmission skill. The mission will heed the first time the objective grids of the Dodecanese islands will likely be linked to the mainland community.
“The mission will enable the leisurely segment-out of polluting oil-fired vegetation, enhance the security of energy provide, and toughen the green transition of the Greek islands,” acknowledged IPTO.
The Greek authorities has acknowledged that it targets to mobilize financing from the Islands Decarbonisation Fund for this mission.
IPTO has also signed a original agreement to promote a 20% stake in its subsidiary overseeing the interconnection line between Attica and Crete to China’s Tell Grid World Pattern Ltd., a utterly owned subsidiary of Tell Grid Corp.
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