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“Special Levy 25%-35%” on Photovoltaic Market Turnover – The End of Investement in Greece?

To tell you the truth, I really do not understand how the officials of a country, especially the so-called ‘development ministers’ can be so contra-productive and put obstacles to what they praise: development and growth. It’s been hardly three years when the then Papandreou government promoted with all its power for investments in solar energy production via photovoltaic panels. Three years later, the market is at risk to collapse and certainly scare future investors.

 The austerity package currently at the Parliament for voting foresees an extra levy of 25%-35% into turnover from photovoltaic companies. Exempted are only PV panels on roofs of private households.

The extra levy will be imposed in addition to taxes and Value Added Tax of solar energy companies.

After reduction into to prices paid to PV by Greek Public Power Company (DEH), an extra levy imposed on the PV market will put an end to an investment activity that created thousands of jobs and hundreds of companies.

According to regulations contained in the multi-bill:

*PV investments linked until 30. December 2011, the special levy will be at 25% of turnover.

* For those who activated their connection after January 1, 2012 and the electricity unit price is being paid according to regulations before February 2012, the levy will be 35%. (prices 333,81 euro/Kwh for more than 100Kw and 375,54 euro/ Kwh for less than 100KW)

* For those who activated their connection after January 1, 2012 and the electricity unit price is paid according to price scheme of Feb-Aug 9th, 2012, the levy will be 29%.

* There is extra levy for those who have linked their PVs after August 2012,  that is, with the new decreased prices.

The duration of the extra levy – called also “special solidarity levy” will be imposed retrospective from 1. July 2012 and will extend until 30. January 2014. Environment Ministry said it may be extended for one more year.

The solar industry operates five factories in Greece. Investors threaten to appeal to courts in order to reverse this levy decision.

The reasoning for the levy is the difficult economic situation of the energy sector and the special account for Sustainable Energy Sources*. 

At the same time,  serious concerns are expressed by bankers as they expect a domino of  stop repayments of loans granted to those who invested in the sector. (Full article in Greek capital.gr)

* Difficult situation? Oh, that comes from the fact that the Greek government was paying much higher electricity prices to PV-producers even thought the production cost was decreasing. Wrong concept? Most likely! But allegedly those who jumped in the new energy market in 2010, they jumped out after two years, earning a lot of money and thus before the price reduction. Some mean internet users claim, that those first investors were ‘friends’ of politicians. Could this be true? lol

PS I assume, after the PV market is being destroyed, the Germans will come and proceed to mass purchases for a piece of bread and a bag of peanuts.

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4 comments

  1. PS I assume, after the PV market is being destroyed, the Germans will come and proceed to mass purchases for a piece of bread and a bag of peanuts.

    Check out who has been put in charge of the Helios project…
    It’s a German led consortium, consisting of 12 companies, 9 of which are German
    Deutsche Bank
    Munich Re
    HSH Nordbank
    Siemens
    Solar Millennium
    Schott Solar
    E.ON and RWE (utilities)
    M+W Zander (construction)

    and also

    Swiss engineering conglomerate ABB
    Spanish energy company Abengoa
    Algerian food products company Cevital

    The financial end of things has been put into the hands of Gugenheim capital, who have very strong links with Goldman Sachs.

    This “tax” would also have everything to do with mothballing the project to protect the interests of Gas and petroleum companies who are now making a fortune on supplying (sometimes anyway)their products to the energy companies in Greece. As the price of oil and gas is ever increasing, so is the price of electricity. Why produce electricity from an infinitive resource at todays prices, when you can produce it from that same infinitive resource and command the extortionate price it will be in 25 years time or so. For you can be certain of one thing, price reduction is not something that appears in these guys work manuals. Meanwhile, you can still sell your oil and gas. No point in letting that go to waste…

    • of course, I had helios project in mind when I wrote that sentence.

      • Helios was one of the very first, if not the first major Greek asset to be put under foreign control by this government. Lots of shouting about selling islands and red herrings about evacuating islands, meanwhile, the family jewels are silently disposed off…

  2. Next thing you know folks will be charged more for using less electricity and fuel. This is sooooo convoluted!