Ten million euro “dowry” for the National Energy Efficiency Fund

A “Dowry” of about 10 million euros is given by the Ministry of Environment and Energy  to the National Energy Efficiency Fund. In the final “split” of revenues from the auction of emissions allowances – that is, of the one billion euros expected to be raised by the end of the year – the ministry political leadership remembered, at the last minute, just before the ministerial decision left for the National Printing Office, the Fund for the utilization, development and financing of new, innovative “tools” for energy saving.

In previous versions of the decision, the National Energy Efficiency Fund (EEAP) – which was previously institutionalized but did not function – was not included in the list of those entitled to a percentage of revenues from greenhouse gas emission auctions for 2021. However, after many trials, it is finally “inheriting” 1%. The Fund will be used as a basis for the development and financing of new, innovative energy saving financial instruments as well as programs and other measures to improve energy efficiency and the market for energy services.

Funding for projects and actions to improve energy efficiency will be done through competitive processes. In fact, the National Energy Efficiency Fund will be able to operate as a lending fund, as well as a guarantee fund, in order to support energy saving projects. In order to increase the attractiveness of investments, available funds can be used to subsidize part of the project costs or to further improve the terms of financing loans to energy operators.

Energy Service Companies (ESCO) will play a key role in improving energy efficiency. Especially for public buildings, the projects will be able to proceed through Energy Efficiency Contracts with ESCO companies and more generally through Public Partnerships with the Private Sector (PPP).

Who will share the revenue from the “emissions”

After about a month of calculations, finally the lion’s share – as was to be expected – is directed to the Energy Transition Fund, with the Special RES Account (ELAPE) being lost, from which the green energy producers are compensated. In particular, the proceeds from polluting auctions will be shared as follows:

-47.86% to the Energy Transition Fund through which the electricity bills of households and micro-enterprises (of low voltage) will be subsidized.

-30% in ELAPE

-11% for the support needs of industries exposed to a significant risk of carbon leakage. Any amount that will not be used will be a resource of ELAPE.

-4.5% in the Green Fund for the financing of actions in the Regional units of Kozani, Florina and the Municipality of Megalopolis for de-lignification. The actions will be addressed to companies operating in lignite mining areas or to companies wishing to relocate to them. The actions may also concern business partnerships with research centers / universities.

-1.5% in the Green Fund for the financing of projects for the protection, preservation and improvement of the natural environment.

-1.5% to the Bank of Greece for the financing of projects and actions for the promotion of e-mobility.

-1% to the Hellenic Recycling Organization

-1% to RIS for the repayment of accumulated liabilities of approximately 8.5 million euros to participating international organizations and international conventions it has signed as well as to serve the objectives and actions of the National Plan for Energy and Climate.

-1% to the National Energy Efficiency Fund for project financing and actions to improve energy efficiency through competitive processes in final consumption.

-0.6% to the Organization for Natural Environment and Climate Change, of which, ten percent (10%) will be allocated for the exclusive support of the work of the Directorate of Climate Change and Quality Atmosphere (for actions related to the emissions trading scheme and for Climate Change issues related to financial and technical assistance to developing countries and obligations arising from the Paris Climate Treaty.

-0.04% to the “Management Body of the Nestos – Vistonida – Ismarida Delta, to cover its operating expenses.