Greek authorities are moving closer to launching the country’s first offshore wind auction framework. The proposed rules are intended to attract investment while supporting financial stability and maintaining a competitive market structure. The framework is based on a proposal prepared by EDEYEP, the state agency responsible for hydrocarbon and energy resource management.
The draft outlines key principles for future tenders, including bidder eligibility criteria, long-term revenue support mechanisms, investor protection measures, and safeguards aimed at preventing market concentration. It also sets out conditions intended to shape how developers participate in offshore wind auctions.
Contracts for Difference and inflation indexation
A central element of the proposal is the introduction of Contracts for Difference (CfD). The mechanism is expected to provide developers with predictable long-term revenue streams under the auction framework. Under the proposed model, contract prices would be indexed to inflation.
The inflation indexation is designed so that revenues adjust over time alongside rising construction, financing, and operational costs. This approach links long-term payments to changes in inflation rather than fixing revenues at a single level.
Eligibility requirements for offshore wind auction participation
To take part in offshore wind auctions, developers would need to demonstrate a high level of project readiness. The proposal includes requirements such as holding a research permit for the designated offshore zone. Developers would also need to submit at least one year of site measurement data.
In addition to site measurement information, applicants would provide other technical documentation required for project evaluation. These elements are set out as part of the bidder eligibility criteria within the tender framework.
Grid constraints, curtailment risk, and capacity concentration limits
The proposal addresses grid constraints and curtailment risk, which can affect renewable energy profitability. EDEYEP recommends a partial compensation mechanism intended to help protect investors from financial losses caused by system balancing actions or output restrictions.
Developers would be allowed to compete for multiple offshore wind zones under the framework. At the same time, limits are included to prevent dominant market positions; if several areas are auctioned simultaneously, a single investor would not be permitted to secure more than two-thirds of the available capacity.
According to EDEYEP, the package of measures is meant to establish a stable and transparent investment environment with sufficient certainty for developers to commit capital. The offshore wind sector is expected to become a key pillar of Greece’s renewable energy transition in the coming years.
