PPC Renewables has announced three tenders for a 50 MW photovoltaic project in Greece. If the park is completed by this October, it will secure a tariff of €0.392/kWh.
The wholly-owned subsidiary of national electricity company, the Public Power Corporation (PPC), has said it is looking for equipment suppliers, and photovoltaic system and substation builders to complete its planned 50 MW Megalopolis PV plant. Interested parties must submit their offers by March 20.
The project, located on the Peloponnese peninsula at the depleted Megalopolis lignite mine, is expected to cover an area of 2,000 acres when complete. It will be owned and operated by PPC Renewables.
To secure a tariff of €0.392/kWh – which translates to an income of around €28 million per year for PPC Renewables – the company must grid connect the project by this October. If it connects later, the tariff will drop to €0.164/kWh, or an annual project turnover of about €11.2 million. This is due to the new tariffs announced last summer.
According to the tendering announcements, the budget for the supply of the photovoltaic park equipment should not exceed €47 million, the budget for the construction of the park cannot exceed €19 million, and the budget for the construction of the substations should be no more than €4.5 million.
Contractor(s) of the project will be selected based on the lowest price, said PPC Renewables. However, Greek media is reporting that the company is looking specifically for Chinese investors.
This is not the first time PPC Renewables announced tenders for the Megalopolis PV Park. In December 2011, the company awarded the project to JP Avax. However, due to financing difficulties, the agreement was canceled.
In light of the current issues surrounding Greece’s renewable energy industry – complaints have been lodged with the European Commission against the country’s recently applied retroactive renewable energy tax, imposed on the back of a €370 million deficit – the €0.392/kWh FIT has been met with controversy.
The Greek Government has said that electricity market operator LAGIE’s enormous deficit was the reason to impose drastic FIT cuts and the retroactive tax. By operating the new Megalopolis plant under the old tariff, PPC Renewables is expected to come under heavy criticism.
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