Law 2244/94

Law 2244/94 constitutes the cornerstone of Greek national policy for the stimulation of renewable energy sources and it can be said to be the first step in the development of a systematic framework of action. It was the main regulatory tool for the production of electricity by independent producers. The law aimed to provide incentives to motivate investments in renewable energy electricity generation (tariff rates are defined at pragmatic values) and it opened up the electricity market to the private sector even though the Public Power Corporation (PPC) remains the exclusive electricity buyer and retailer. For the countrys interconnected system, the Law established a fixed sale rate for renewable energy at a level equal to 90 percent of the medium-voltage, general use tariff and made it obligatory for the PPC to buy that energy. The final rate in 2006 corresponded to 0.07287 Euro/kWh. In the islands not connected to the mainland?s interconnected system, the pricing was based on 90 percent of the low-voltage, household rate and corresponded in the 2006 to 0.08458 Euro/kWh. Through this law, production by both auto-producers and independent producers was liberalised up to 50 MW. Auto-producers may counterbalance 80% of the electrical energy produced using renewables (90% for local authorities, government organisations and farm co-operatives) with their electricity consumption from the PPC network. Other provisions of the law included the removal of restrictions for the exploitation of small water falls, the simplification of bureaucracy involved in the permitting of renewable energy installations and the setting up of an improved pricing system.