226.4 Million Euros! Greece Plans To Invest in A Large-scale Hybrid Energy Project For Light, Storage And Hydrogen

The Greek inter-ministerial committee, chaired by the Greek Minister of Development and Investment, has agreed to classify a hybrid energy project as a "strategic investment" for the country, according to foreign media reports. The Greek inter-ministerial committee is made up of eight ministers and deputy ministers of the Greek government.

In this strategic hybrid energy project, a 200MW photovoltaic system is planned to be installed and will be developed and built together with a lithium-ion battery energy storage system with an installed capacity of 100MW and a 50MW hydrogen electrolyser with a capacity of 16 tonnes of hydrogen per day. This is a strategic investment, which means it can take advantage of a fast permitting process and easy access to the grid. The energy storage capacity of the battery storage system in the project has not been released to the public.

In a press release, the Greek government claimed that the investment in the project was €226.4 million and that it was expected to create 442 new jobs during the construction phase and 24 jobs during operation. Bluesky300 IKE, the Greek subsidiary of British photovoltaic developer Hive Energy, will support the development of the project.

This is not the only green power project that Hive Energy is building in Greece. The company's portfolio in Greece will also include the installation of 250MW of photovoltaic systems, which have been classified as strategic investments by the Greek Inter-Ministerial Council, but which have not yet been completed.

Strategic investments

So-called strategic investment projects are nothing new. Investors who consider that the project they are developing is of strategic importance to the country can apply to Enterprise Greece, an official Greek investment and trade promotion agency that operates under the auspices of the Greek Ministry of Foreign Affairs.

The agency then processes the investor's application. If their project meets the criteria for a strategic investment, it is submitted to the Greek Inter-Ministerial Committee for approval. During this process, the investor is required to pay Enterprise Greece a fee for managing the application. And paying such a fee is often worthwhile, as approved strategic projects may be eligible for government funding. More importantly, strategic projects can expedite the permitting process at all stages of project development.

Under a new policy of the Greek Ministry of Energy and Environment, renewable energy projects classified as strategic investments will also become a priority for grid connection.

The Greek government has previously argued that strategic investment projects are necessary for the country to leverage capital investment in key areas of the local economy. So far, however, no specific elements of the project strategy have been fully defined. For example, the Greek inter-ministerial committee often approves photovoltaic projects that do not incorporate any innovative elements (e.g. hydrogen energy facilities).

And its so-called strategic investments are not only energy projects. The Greek Inter-Ministerial Committee recently classified the development of hotel resort facilities in Mykonos, one of Greece's most famous tourist destinations, as a strategic investment project.