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SEF – “Crisis, interference and unemployment bring the YPEKA decisions on photovoltaics”

Announcement was issued by the Association of Photovoltaic Companies, which describes in black colors the situation in the sector following the recent decisions of the Ministry of the Environment, Physical Planning and Public Works.

The SAE speaks of “footprint” measures that lead the industry to annihilation and thousands of people in unemployment.

More specifically, the SAE states the following:

“Just one month after the first YPEKA package of photovoltaic measures, the first negative signs for the industry are already visible. Investors’ uncertainty, pending the announcement of a second package (which, as rumored, will include an extraordinary contribution to photovoltaics) and the unfortunate and disastrous decision to suspend the licensing process, have faded through licensing and leading the market to non- healthy and unsustainable paths.

At the same time, the large reduction in guaranteed prices, especially for home photovoltaics, and the declaration of the Peloponnese in a region with saturated grids (even for domestic microinvestment) have caused many orders and projects to be canceled and lead hundreds of small companies to permanent closure the end of the year. We note that 10% of photovoltaic companies are based in the Peloponnese, and with this decision thousands of people are driven to unemployment.

The photovoltaic industry has until now been the only potentially growing branch of the economy and the largest employer in the field of green energy. It maintains 25,000 jobs (direct and indirect) and contributes to public finances and insurance funds by € 600 million per year. That is why the recent decisions of the Deputy Minister of Peace are deeply underdeveloped and send a wrong signal at a time when the country needs growth and jobs.

The ministry’s decisions face the assumed “huge deficit in the Special Account because of chronic problems and misconceptions.” However, with the exception of the activation of a measure decided in 2010 with Law 3851/2010 and not applicable to date (ERT resource transfer to the RES Special Account), all other measures do not directly relieve the Special RES Account, since they concern future investments, which would at best be implemented after 2-3 years.
The decisions of the SWR Deputy Minister suspend the submission of new requests and the examination of outstanding requests for photovoltaic (with the exception of households – except the Peloponnese – and those under the fast track procedure), arguing that there are already many mature projects, the implementation of which will lead to achieve the 2020 targets. Unfortunately, despite the contrary, “mature” projects are enough to move the market by mid-2013, and then inevitably lead to dramatic shrinking and redundancies.

This decision of the Deputy Minister of Peace promotes only the interception of licenses, enriching some plots and unnecessarily raising the investment costs. Thus, the market in the coming months will have to move with few, expensive projects, as the majority of them are involved in licensing, while rumors about the imposition of extraordinary taxation create an uncertain environment by preventing the few bold investors in the country. Unlike the thousands of small and medium-sized investors and their installers, who are now out of reach and leading to dramatic shrinking and redundancies, the few fast-track investors benefit from it.

Of course, this absurd measure does not in any way contribute to the relief of the RES Reserve Account, as the Ministry of the Environment, Energy and Climate Change says falsely. This is also due to the fact that the implementation of some direct corrective measures, such as that proposed by the Association of Photovoltaic Companies (submission of a letter of guarantee with a request for connection to all RESs, a reduction of the 18-month “lock” of the tariff) etc.), the uninterrupted development of photovoltaics in 2013 can have a neutral effect on consumers’ electricity bills, and from 2014 onwards it may lead to a continuous reduction (including the ETEMAR charge). The question then arises as to who is ultimately benefiting from the suspension of licensing.

The decisions of the Deputy Minister of Economy and Finance (PEKA) have literally been written in the foot, creating inequalities between investors, and raising major questions, both in terms of their purpose and their legitimacy. It is significant that the Deputy Minister of Economy and Energy suspends the licensing procedure for several power megawatt projects submitted in mid-2010 (and the Network Operator did not promote illegally for two years despite the clear requirements of Law 3851/2010 for consideration of queries within four months), while permitting the continuation of higher-value projects submitted to RAE, making any concept of equity between investors.

In order to “rationalize” as the market reports, the Deputy Minister of Economy and Energy of the Republic of Cyprus has unprecedented reductions in the guaranteed prices for new and pending photovoltaic applications (which in the meantime virtually suspended!), Which have not yet signed a sales contract Market officer. With the new energy sales prices and country financial data, most of these investments are unsustainable, since their yields are lower than the borrowing rate and have negative cash flows in the first decade and, of course, they do not “yield satisfactorily revenue “, as the Ministry of the Environment, Energy and Climate Change says incorrectly.

All the above were premised on the liquidity problems in the electricity market. While it is now clear to everyone that these problems are inextricably linked to the many and big distortions in the electricity market, lately they have virtually invested almost exclusively in photovoltaics and the real actors responsible for the crisis (who are not others producers and suppliers of electricity with pollutant fossil fuels). For these latter, we have not seen and heard no measures, although the distorted and scandalous subsidies to fossil fuels reach € 1.5 billion a year. ”

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