Greece Postpones 3rd BESS Tender, New Date Set

• Greece’s third battery storage tender falters, prompting a relaunch in January. With EUR 200K subsidies, innovative energy solutions await in Western Macedonia and Peloponnese!

Greece has cancelled its third tender for battery energy storage systems (BESS), originally seeking 200 MW of capacity, due to inaccuracies in the application rules. The Greek Regulatory Authority for Energy, Waste and Water (RAAEY) acknowledged errors in the initial documentation, particularly regarding the maximum power limit per participant. As a result, the tender will be relaunched in January.

The bidding process is scheduled to conclude by January 27, 2025, with final project approvals expected by March 13, 2025. This tender, which commenced in November, will provide subsidies of EUR 200,000 (USD 210,146) per MWh and focuses on projects in Western Macedonia and Peloponnese municipalities, marking the last round of Greece's 1-GW programme for standalone energy storage facilities.

What factors led to Greece's cancellation of its battery storage tender?

Factors Leading to the Cancellation of Greece's Battery Storage Tender

• Inaccurate Documentation: The Greek Regulatory Authority for Energy, Waste and Water (RAAEY) identified key inaccuracies in the application rules and guidelines that governed the tender process, particularly concerning the specifications for maximum power limits per participant.
• Regulatory Compliance Issues: The inaccuracies hinted at potential non-compliance with existing national and EU energy regulations, necessitating a reassessment of the tender framework to ensure that it meets legal and operational standards.
• Risk of Inequitable Participation: The flaws in the initial application rules could have led to an uneven playing field, where certain bidders might have had an advantage over others, undermining the competitiveness and fairness of the tender process.
• Need for Clarity in Rules: Stakeholders and potential bidders likely raised concerns regarding unclear rules, prompting the authority to rethink and clarify criteria to foster a more transparent and robust bidding environment.
• Potential Impact on Project Viability: There were fears that proceeding with the tender as initially structured could compromise the long-term viability of projects, given the challenges and uncertainties introduced by the inaccuracies.
• Strategic Timing for Relaunch: By postponing the tender and planning for a relaunch in January, RAAEY aims to allow for proper adjustments and to rebuild trust among stakeholders, which is essential for attracting serious bidders in future rounds.
• Focus on Critical Regions: The tender's focus on enhancing energy storage capacity specifically in Western Macedonia and the Peloponnese signifies regional priorities, aiming to improve local energy infrastructure, which necessitated a well-defined and accurate tender process.
• Financial Stability and Subsidy Adjustments: The planned subsidies of EUR 200,000 per MWh represent a significant investment in renewable energy infrastructure, necessitating meticulous planning and execution to attract providers while ensuring cost-effectiveness for the Greek state.
• Broader Energy Transition Goals: The cancellation reflects a strategic approach towards meeting Greece's broader energy transition goals, emphasizing the importance of a sound framework in deploying energy storage technologies that are crucial for integrating renewable sources and enhancing grid reliability.
• Learning from Past Experiences: The authority's decision may also be influenced by lessons learned from previous tenders and projects, aiming to avoid repeating mistakes that could jeopardize future investments and the country's energy objectives.

By addressing these factors, Greece aims to foster a more effective and reliable system for battery energy storage development in the future.