With 12 questions and answers from the Ministry of Environment and Energy, it is explained in all its details government plan to reduce costs in rural electricity.

The Prime Minister Kyriakos Mitsotakis, during the meeting he had with the farmers at Megaron Maximos, he announced the government decision to provide cheaper electricity to agricultural crops for a duration of 2+8 years.

The competent ministry answers all questions about the project, with 13 questions and answers. More detailed:

1. Who does the program concern and how will it be implemented?

All holders of rural electricity connections can participate in the low price program for rural electricity in the form of bilateral long-term contracts.

For the first 2 years with pricing starting on 1.4.2024, the prices are fixed and are configured (maximum) as follows (price estimates):

 Owners of rural electricity connections belonging to cooperative schemes or practicing contract farming without arrears: 9.3 cents per kilowatt hour
 Other holders of rural electricity connections without arrears: 9.8 cents per kilowatt hour
 Owners of rural electricity connections belonging to cooperative schemes or practicing contract farming with overdue debts: 10.5 cents per kilowatt hour
 Other holders of rural electricity connections with overdue debts: 11 cents per kilowatt hour

The above prices refer to the total consumption of the specific benefits.

2. What will apply for the next 8 years?

For the next 8 years, at 1/3 of the consumption of the specific benefits, the price is uniform and is set at 9 cents per kilowatt hour.

For the remaining 2/3 of the consumption, the owners of rural electricity connections have no commitment and can obtain it freely from the market (freely from the same or the other provider). The relevant contracts are fixed with a single withdrawal clause of 70 euros.

3. How can an interested party apply for participation? When will the submission start?

The start of invoicing for the program of low prices, concerning the rural current in the form of bilateral long-term contracts, starts from 1.4.2024. However, the period during which the applications will be submitted by the beneficiaries will be announced shortly.

4. Since the charges will be different for beneficiaries who have overdue debts to the electricity providers, is there a possibility to settle these arrears and under what conditions?

This is a fair arrangement as consistent farmers will in the first two years have a lower estimated price per KW (below 10 cents) while for defaulters the KW price is estimated to be between 10.5 – 11 cents as they will they can at the same time settle their debts to electricity suppliers with repayment over a decade and zero interest.
The financing of the arrangement will come from the Energy Transition Fund. The charges of the agreement will be spread equally over the decade.

5. Which providers will participate in the program and how?

The program can be offered by all electricity suppliers. The required energy will come from renewable energy sources. Participating providers will receive terms of reference for specific RES projects that will support the program on an absolute priority basis.

6. As the companies’ participation will not be compulsory, is there not a risk of a sharp increase in costs for the â…” of consumption that will not be covered by the controlled price after the end of the first two years?

The participation of electricity providers in the program is optional and it is not estimated that there will be a sharp increase in costs after the end of the two years. And this, since for the next 8 years for 1/3 of the consumption of the benefits, the price is uniform and is set at 9 cents per kilowatt hour. It is noted that for 2/3 the owners of rural electricity connections do not have any commitment and can obtain it freely from the market (freely from the same or the other provider).

7. How much RES power is required to service this program? What is the timeline for the completion of the projects?

The provider-farmer agreement program will be served by 300 to 500 MW of RES that will receive absolute priority of connection projects. That is why coverage of 1/3 of electricity needs will be described, with a fixed price for 8 years. These projects will be ready after 2 years.

8. Why is it possible to offer these prices through the bilateral long-term contract program and not through the market?

It is estimated that the program will be attractive for the participating providers due to the long-term commitment, based on the alternative agreements they already have with their large customers.

In addition to the new program of bilateral long-term contracts, the government has already announced a package of energy cost relief measures for primary sector producers.

9. Is there provision for settlement of debts to PPC and other providers of the Local and General Organizations of Vascular Improvements (TOEB, GOEB)?

Yes, especially regarding Thessaly which was affected by the catastrophic floods, the OEBs will be abolished and the related activities will be integrated into the new Thessaly Water Organization. It is noted that the State assumes 75% of the debt of the OEB of Thessaly, which amounts to 8 million euros. In relation to the rest of Greece, the debts (76 million euros) will be settled with a ten-year repayment and zero interest rate, which will be subsidized by the State.

10. What is the scope of the “Apollo” program and how exactly will it be implemented?

“Apollon” is the largest energy offsetting program with green energy in the country. For its implementation, tenders will be held, in the context of which mature Renewable Energy Sources (RES) projects will be selected. These will start electrifying within two years.

11. What are the benefits of the “Apollo” program?

The energy that will be produced by the RES projects that will participate in the program will cover part of the energy needs of our vulnerable fellow citizens, the first and second grade local authorities, the DEYAs, as well as the Local and General Organizations of Sanitary Improvements. Practically, this means that through “Apollo”, TOEB and GOEB will have significant and permanent relief from energy costs.

12. Will there be a subsidy for autonomous photovoltaic systems, through which farmers will be able to meet their energy requirements?

The “Photovoltaics in the Field” program, with a budget of 30 million euros, concerns exclusively farmers and is expected to start in the immediate future. At the same time, the “locked” electrical space, available as a priority to farmers per DEDDIE substation, increases immediately (from 3MW to 6MW) (6MW X 225 substations in the country = 1350MW). In addition, the permitted limit for farmers’ photovoltaics is increased (from 10kW to 50kW), with priority access to the “locked” area.