VZCZCXRO1752
OO RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV
DE RUEHTH #1504 3051551
ZNR UUUUU ZZH
O 311551Z OCT 08 ZDS
FM AMEMBASSY ATHENS
TO RUEHC/SECSTATE WASHDC IMMEDIATE 2704
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY
RHMFIUU/DEPT OF ENERGY WASHINGTON DC PRIORITY
RHMFIUU/HQ EPA WASHINGTON DC PRIORITY

UNCLAS ATHENS 001504 
 
C O R R E C T E D   C O P Y - CAPTION ADDED 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR EUR/ERA FOR BEH/NELSON, EUR/PGI FOR TESSLER, 
OES/PCI FOR FITE/HUDAK, OES/EGC FOR FENDLEY, OPIC FOR 
PEARCE/HANSLEY 
 
E.O. 12958: N/A 
TAGS: EINV ENRG KGHG SENV TRGY GR IS
SUBJECT: RENEWABLES MARKET IN GREECE - OPIC-SUPPORTED 
INVESTMENT FUNDS 
 
REF: A. SECSTATE 103210 
     ¶B. ATHENS 001411 
     ¶C. ATHENS 001457 
     ¶D. ATHENS 001481 
 
¶1.  (SBU) Post believes that at this time Greece is not yet 
ready for investment in the renewables sector given 
bureaucratic hurdles and a substantial backlog of projects. 
(See reftel d for details on the renewables sector in 
Greece.)  Despite strong growth potential and a high priority 
given to stimulating market conditions, Post believes that 
the Government of Greece (GoG) still faces considerable 
challenges to building capacity and facilitating investment 
in the sector.  At present, although Greece is a member of 
the European Union, it continues to be ranked low in the 
areas of investment climate and ease of doing business in 
renewables. 
 
¶2. (SBU) Greece's energy markets continue to be dominated by 
a few players, particularly in the wind renewables sector. 
Although Greece is attempting to deregulate its energy 
markets, these efforts have not yet yielded results.  In the 
area of solar energy, the GoG is trying to revamp its 
legislative structure to attract investment.  The GoG offers 
either a capital or a feed-in subsidy to prospective 
investors; however, the financial incentives must be 
restructured so that the GoG can afford this ongoing 
financial obligation in the long-term. (reftel d) 
 
¶3.  (SBU) At the present time, the GoG has over-extended its 
financial obligations and is attempting to scale down the 
price to which it has committed a fixed forward rate for the 
purchase of electricity.  In addition, the GoG does not have 
the capacity to review and administer increasing levels of 
investment in renewables.  There exists a substantial backlog 
of applications and the request for proposals was 
oversubscribed by five times in the last year.  As a result, 
Post does not believe that such an investment fund would be 
able to realize gains over the short-term; however, if Greece 
is able to straighten out its legislative framework in order 
to ease bureaucratic hurdles, it could face success in the 
long-term. 
SPECKHARD