Ministry of Environment, Energy and Climate Change of the Hellenic Republic

Project Helios
The Greek Solar Energy Project

Hamburg, 5th September 2011

Why Helios The context The market The opportunity The framework The project The benefits

The context: Statement by the Heads of State or Government of the Euro area & EU institutions
Brussels, 21 July 2011

We call for a comprehensive strategy for growth and investmentinGreece totargetthestructuralfundson competitiveness and growth, job creation and training. WewillmobilizeEUfundsandinstitutionssuchastheEIB towardsthisgoalandrelaunchtheGreekeconomy.

The market: EU Solar Sector

EUaccountsfor74%ofglobalmarket 2010EU:13,300MWnewinstallationsvs.100MWin2001 Germany:globalmarketleaderinSolarPV Smartincentiveschemes(FeedinTariffs) 202020 RESPolicy:BindingDirective2009/28/EC,NationalRenewable EnergyActionPlans

The opportunity: Helios - The power of the sun

Greeceenjoys300daysofsunshinea EuropeanSunRadiationLevels
yearandalmost50%moresun radiationthanGermany,theglobal leaderinsolarPV

Why Greece? Producing where the resources are!

Solarintensitymeans potentialisfargreaterthanpresenttargetsfor2020 CanbetappedtothebenefitnotonlyofGreece,butofotherEU countries
aswell(averageannualsunIrradiationforGreece1800KWh/m2,visvis 1285KWh/m2forGermany)

AccordingtotheErnst&YoungRenewableenergycountryattractiveness
indices report, Greeceisin6thplaceamong35countries,regardingthe solarindex (takesintoaccountpowerofftakeattractiveness,taxclimate, marketgrowthpotential,installedbase,recoursequalityandprojectsize)

The RES framework in Greece

NationaltargetforRES:20%onfinalenergyconsumption,2%above themandatory18%setby2009/28/EC Specific targets for RES electricity (40%), RES heating and cooling (20%)andREStransportshare(10%) TargetedcapacityforsolarPVby2020=2200MW,10GWofPVfor
theyear2050

Forthefirsthalfof2011totalinstalledcapacitywas274MWanditis estimatedtoreach400MWbyendyear Plan foresees Interconnection of mainland Electricity Transmission Gridwiththeislands reserve and storage units (2 GW of pumped storage plants by 2020
and4GWofpumpedstorageplantsby2050)

Simplification of licensing procedures and designation of shorter

issuingdeadlines
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Helios the Greek Solar Energy Project

ExportingcleanenergyfromthesouthtothenorthofEurope The Helios project aims to render Greece the showcase of
SolarPVdevelopmentinEuropesSunbelt and the main driver ofthecountrysgreeneconomicgrowthby: monetizinganabundantnaturalresource (solarenergy) creating favorable conditions for sustainable development in thesolarenergysector facilitating other Member States in achieving their 2020 RES targets by offering more attractive investment returns for solar PV projects (higher yields for the same cost of investment)

Helios- Project Scope Thetarget:toproduce3to10GWofsolargeneratedelectricity

(Atanaverageinvestmentcostof2m/MWtheinvestmentfor10GWis approximately20billionEuros)

Themethod: DevelopacooperationmechanismwithotherEU Member

StatesundertheEuropeanRenewableEnergyDirective: Statisticaltransfer(Article6) Jointprojects(Article7) Jointsupportschemes(Article11)

ProjectHelios presentsamutuallybeneficialcooperationscheme.A
member state with low or expensive RES potential (the receiving state) can use renewable electricity produced in another country with higherRESpotentialandlowerproductioncosts(theexporting state) tocomplywiththeirnationaltarget,achievesignificantcostsavingsand facilitatetheachievementoftheoverallEuropeantargetfor2020.
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Helios-Project Framework
Underthecooperationmechanism,theHellenicRepublicwillprovide anallinclusive platform toencourageandfacilitateinvestmentsin thesolarsector,bypresentingpotentialinvestorswithturnkey fully licensed project SPVs in specific stateowned site locations, freeofanyadministrativeandbureaucraticbarriers. Thisentails: Appropriately selected Stateowned land parcels across Greece. Achievingatargetof10GWinsolargeneratedelectricityrequires approximately 200 Km2 of land. The parcels will be leased out foraspecifictimeperiod(e.g.25years) Fully licensed trouble free projects with final stage operating permits RelevantconnectionagreementswiththeNationalGrid

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 is physical transfer an option?

GriddevelopmentintheENTSOE(EuropeanNetworkofTransmission
SystemOperatorsforElectricity)isaprerequisitetoensureelectricity marketliberalizationandlargescalepenetrationofRES.

EUCommunicationregardingenergyinfrastructureprioritiesfor2020
andbeyond givesanOctober2011deadlineforproposalsubmissions todevelopablueprintforanintegratedEuropeanenergynetwork.

Transmission of 22.5 GW generated from PVs I Greece towards

central Europe is currently technically feasible with potential congestionpointtheborderofItalySloveniaHungary

Reinforcing the interconnections between Greece and other EU

countries and the development of interconnections within Greece (mainlandandGreekislands)willbenecessary.

South to north transmission will require transborder transmission

rightsinallintermediateborders.Undertheexistingframework rights aregrantedthroughauctioningonayearly,monthlyordailybasis.
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Benefits of Helios
For the investors: Extremely attractive from an investment point of
view as for the same cost of investment the higher insolation generatessignificantlyhigherreturnsoninvestment

ForGreece:InvolvessignificantinwardFDI,employmentcreation,tax
receipts, building up RES capacity, a potential large privatization project,improvesgrowthprospects

For Germany and other MS : Generates significant cost savings by

usingRESproducedinacountrywithhigherRESpotentialandlower productioncosts,assistsinmeetingthetargetssetbyRESDirective.

ForEurope:Catalysttopromoteinterconnectionstrategy,promotes
EU technology & equipment, fits in perfectly with the European growthstrategy

TheHeliosprojectisafeasiblemidtermproject,whileotherssuchas
the Mediterranean Solar Plan remain a long term vision, facing importanttechnological,economicandpoliticalchallenges
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Thank you for your attention

http://www.ypeka.gr

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