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The implementation of the ambitious “Project Helios” for the mass use of solar energy provides an opportunity to reduce Greek debt by up to 30 billion Euros if the fixed disincentives for investment are overcome, if funding and the initially agreed schedules are met. 

The issue was discussed yesterday during a meeting between the Minister of Environment George Papakonstantinou and the German Vice Chancellor and Minister of Economy and Technology Philipp Rösler, which took place during the Greek-German business forum organized by the Federation of Greek Industrialists (FGI) and under the auspices of the Ministry of Development. 

“Project Helios” envisages the construction of photovoltaic facilities with a total capacity of 10GW, covering a total area of ​​200,000 hectares of state land, which will be leased long term from the Greek state with all necessary licenses being secured. The investment will require up to 20 billion Euros. 

In the joint management venture the country’s share will reach 30 percent and that of the investor will be 70 percent. If the state decided not to rent the land but to give it in concession, where the photovoltaic parks will be built, then its share may reach 50 percent. 

The investment that provides for electricity production from renewable sources, has secured favourable treatment by the Community regulations for the next 25 years. During this period, however, the return of the initial investment could reach 100 billion Euros. 

The securitization of part of the revenue for the state during this period may provide a percentage in the range of 20-30 billion Euros, which can be used to reduce the debt. 

The final clauses of the contract will be formulated soon, by the end of 2011, with the signing of the Memorandum of understanding (MOU) with Germany, and finalization of definitive agreements with the EU. 

Upon presentation of  “Project Helios” on the sidelines of the Congress of the Environment Minister George Papakonstantinou stated that its advantages to the Greek-German business forum in comparison with similar investments in Germany, stressing that Greece has 50 percent more sunny days and therefore greater return on investment. 

The project envisages the production of electricity for export. And this is where problems begin. The Environment Minister admitted that the network of the National Electric Company (DEH) allows transfer of up to 2 GW, which prevents the transmission of additional power from “Helios”. Therefore, in addition to the infrastructure with parks, new investments and the strengthening of distribution networks will also be required.