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National Development Law 3299/04
This is a financial instrument-umbrella, covering all private investments in Greece , in all sectors of economic activity. Investments in RES installations (both electricity- and heat-producing ones) also had a favoured status under the previous Law 3299/04, such as investments in high technology, environmental protection, tourism, etc.
The following categories in the energy sector are eligible for incentives:
- Power generation, in the form of warm water, steam.
- Production of solid fuels from biomass.
- Cogeneration of electricity and heat.
- Energy production from renewables, and especially wind and solar, hydroelectric, geothermal energy and biomass.
- Environmental protection and waste disposal projects.
The kinds of incentives alternatively provided are:
- Cash grant and/or leasing subsidy; or
- Tax allowance; or
- Labour cost subsidy for new employment
For the purpose of investment incentives, Greece is divided into 3 zones :
Kind of incentives |
Investment zone |
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Zone A |
Zone B |
Zone C |
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|
Cash grant and/or leasing subsidy |
20% |
30% |
40% |
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|
|
Tax allowance |
60% |
100% |
100% |
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|
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Labour cost subsidy for new employment |
20% |
30% |
40% |
Table. Investment incentives for the energy sector
The level (%) of public subsidy is increased by 10 to 20 (bonus) percentage points in the following cases:
a) Very small and small-sized enterprises (less than 50 persons, and annual turnover less than 10M€): 20% bonus
b) medium-sized enterprises (less than 250 persons, and annual turnover less than 50M€) : 10% bonus
In order to be eligible for the funding the following parameters should also be satisfied:
• Required own capital: 25 % (min) of the total investment cost
• Minimum investment cost required: 100,000-500,000 € (depending on the size of the enterprise)
• Installation license is required for project application (grant proposal)
On the 10 th of July 2007, with a new Ministerial Decision, a new level of public subsidy for energy investment projects especially in the fields of photovoltaic and wind energy was set. The table below summarises the introduced changes concerning the level of the public subsidy, under the National Development Law, for wind and photovoltaic investment projects.
Enterprise size |
Investment Zones / level of subsidy |
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Α |
Β |
Γ |
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big |
20 |
30 |
40 |
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medium |
30 |
40 |
40 |
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small |
40 |
40 |
40 |
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Very small |
40 |
40 |
40 |
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