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10152/21 ADD 1 FDC/Sr ECOMP 1A EN Council of the European Union Brussels, 6 July 2021 (OR. en) 10152/21 Interinstitutional File: ADD 1 2021/0159 (NLE) ECOFIN 638 CADREFIN 333 UEM 173 FIN 514 NOTE From: General Secretariat of the Council To: Delegations Subject: ANNEX to the Council Implementing Decision on the approval of the assessment of the recovery and resilience plan for Greece Delegations will find attached the above-mentioned draft Council Implementing Decision, as revised and agreed by the Financial Counsellors Working Party, based on the Commission Proposal COM (2021) 328. 10152/21 ADD 1 FDC/sr ECOMP 1A EN SECTION 1: REFORMS AND INVESTMENTS UNDER THE RECOVERY AND RESILIENCE PLAN 1. Description of Reforms and Investments A. COMPONENT 1.1: POWER UP This component of the Greek recovery and resilience plan targets reforms and investments to increase the weight of renewable energy sources in the electricity system and facilitate Greece’s process of decarbonisation. Reforms shall simplify licensing rules for renewable energy investment, make the electricity market more efficient, and secure the financial sustainability of support schemes. The component also includes key investments in networks to complete the interconnection with the Cyclades islands and make electricity distribution more environment-friendly and able to absorb a greater share of renewable energy. Storage systems shall also support the decarbonisation of the economy through accumulating surplus renewable electricity. Land rehabilitation shall also be supported in areas currently used as lignite mines, as a step of the just transition process in the territories most affected by the phase-out of lignite. The component is in line with the National Energy and Climate Plan (NECP) and supports addressing the country-specific recommendations on public and private investment (Country Specific Recommendation 3 of 2020 and Country Specific Recommendation 2 of 2019). It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the Do No Significant Harm Technical Guidance (2021/C58/01). A.1. Description of the reforms and investments for non-repayable financial support Investment: Support of the installation of storage systems to enhance renewable energy (RES) penetration (measure ID: 16926) The investment provides public grants for the installation of up to 1 380 MW capacity of energy storage in the electricity system. These investments shall allow the system integration of new RES capacity which is required for the achievement of NECP targets. In addition, this action shall also alleviate network congestion, increase the flexibility of the electricity system and liquidity of balancing market, enhance system adequacy, enable energy efficiency, promote transparency in electricity price formation, and lower energy costs. The implementation of the investment shall be completed by 31 December 2025. Investment: Revitalization actions of the most affected territories (Just transition territories) (measure ID: 16871) The investment consists of grants for financing land rehabilitation in the areas of former lignite mines in Western Macedonia and Megalopolis. The measure shall address the just transition areas, with environmental and economic interventions, such as soil remediation, redevelopment and implementation of interventions regarding landscape and environment restoration, readjustments in land uses, and the creation of organised receptors of activities. The implementation of this investment shall be managed by a special purpose vehicle to be established by Greece. The special purpose vehicle shall become the new rightful owner and land developer of the transferred geographical areas. The special project vehicle shall be responsible for the financing and for carrying out the sanitization, restoration, rehabilitation and upgrading works. The implementation of the investment shall be completed by 31 December 2025. 10152/21 ADD 1 FDC/sr 1 ECOMP 1A EN Investment: Interventions for the electricity interconnection of islands and the upgrading of the electricity network (measure ID: 16870) The investment includes the electricity interconnection of the Cyclades Islands (Phase D), an overhead line connecting Extra High Voltage Centre (EHVC) Corinth and EHVC Koumoundouros and accompanying projects. The projects shall boost energy system security, while also increasing the potential for electricity generation from RES in the islands and the Peloponnese. They shall reduce energy costs, leading to new investments and jobs in the energy-intensive sectors of the economy. The implementation of the investment shall be completed by 31 December 2025. Investment: Hellenic Electricity Distribution Network Operator (HEDNO) network upgrades aiming at enhancing resilience and protecting the environment (measure ID: 16901) The investment consists of undergrounding and rerouting of the electricity distribution network in settlements of special importance from a cultural or tourism point of view as well as city centres, with priority given to areas where the infrastructure is vulnerable to extreme weather. It shall improve the resilience of the distribution network and contribute to the protection of the environment. The implementation of the investment shall be completed by 31 December 2025. Investment: Hellenic Electricity Distribution Network Operator (HEDNO) overhead network upgrading in forest areas (measure ID: 16900) The investment consists of a replacement of bare conductors in the overhead electricity distribution network (with covered ones or a twisted cable), installation of insulating covers, and undergrounding or relocation of the electricity distribution network passing through forest areas. The project shall improve the resilience and reliability of the network (energy quality indicators SAIDI, SAIFI) and better protect the environment (forests, wildlife). The implementation of the investment shall be completed by 31 December 2025. Investment: Installed capacity increase in Hellenic Electricity Distribution Network Operator (HEDNO) High Voltage/Medium Voltage substations for new RES connection (measure ID: 16899) The investment shall increase the capacity of existing substations of the network to address the congestion of the distribution grid that are currently preventing further investment in renewable energy. The implementation of the investment shall be completed by 31 December 2025. Reform: Restructuring and enhancement of the Renewable Energy Sources-Combined Heat and Power (RES-CHP) Account revenues (measure ID: 16865) The reform consists of: (a) the restructuring of the existing remuneration structure for RES Producers, through the establishment for new RES units (commissioned after 1 January 2021) of a New RES-CHP Account replacing the current one complemented by new mechanisms that shall guarantee the financial viability of both of the existing and the New RES-CHP Accounts; and (b) the introduction of a Guarantees of Origin trading system, of an extraordinary “Covid-19 Duty” for RES producers and Suppliers, and of a permanent “carbon tax” on diesel fuel. The measures shall ensure the viability of the existing installed RES capacity and shall facilitate the financing of new projects in RES, as any unexpected inflows/outflows leading to a negative impact on the RES account(s) shall be addressed through the regulatory fees that shall be passed on to the customers. The implementation of the reform, including an increase of 3 Gigawatt in the electricity production capacity from renewable energy sources, shall be completed by 30 June 2025. Reform: Streamline the efficient operation of the new electricity market model and the development of new RES plants to reach NECP targets through the implementation of monitoring mechanism, the participation of demand response and an extensive reform of the licensing procedure for new RES (measure ID: 16860) 10152/21 ADD 1 FDC/sr 2 ECOMP 1A EN The reform consists of streamlining of the licensing framework for RES, including simplification and digitalisation of procedures, short and binding administrative response times and accountability procedures for unnecessary delays, reduction of the necessary documentation and procedures, as well as a new dedicated framework for offshore RES plants. The aim is to accelerate the doubling of the installed capacity of RES in view of the lignite phase-out in Greece. Finally, the reform shall also establish a market monitoring system for the National Regulatory Authority (RAE) and the participation of demand-side response (DSR) in the balancing market. The implementation of the reform shall be completed by 30 June 2022. 10152/21 ADD 1 FDC/sr 3 ECOMP 1A EN A.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support Top investment 1: Interventions for the electricity interconnection of islands and the upgrading of the electricity network Qualitative Related Measure Milestone Quantitative indicators Indicative timeline Name indicators (for Sequential (Reform or Investment) / Target (for targets) for completion milestones) Description of each milestone and target Number Unit of Basel Goal Quarter Year measure ine 1 1 - 1.1. Power up - Milestone Interconnec Notification of Q2 2023 Notification of the award of all contracts by Independent
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