Greek authorities are moving closer to launching the country’s first offshore wind auction framework, according to a proposal prepared by EDEYEP, the state agency responsible for hydrocarbon and energy resource management. The draft sets out rules aimed at attracting investment while supporting financial stability and preserving a competitive market structure. It also defines principles intended to shape future tenders.
The proposal covers bidder eligibility criteria, long-term revenue support mechanisms, investor protection measures, and safeguards designed to prevent market concentration. It establishes the basis for how developers would participate in offshore wind auctions under the new framework. The approach is focused on creating a structured process for awarding offshore wind capacity.
Contracts for Difference and inflation-linked pricing
A central element of the framework is the introduction of Contracts for Difference (CfD), intended to provide developers with predictable long-term revenue streams. Under the proposed model, contract prices would be indexed to inflation. This indexing is designed to align revenues with changes in construction, financing, and operational costs over time.
The CfD component is presented as part of the long-term revenue support mechanism within the tender rules. It is linked to how contract prices would adjust as inflation changes. The proposal positions this as a key feature of the offshore wind auction design.
Eligibility requirements for offshore zone participation
Participation in offshore wind auctions would require developers to demonstrate project readiness at a high level. Requirements include holding a research permit for the designated offshore zone. Developers would also need to submit at least one year of site measurement data along with other technical documentation for project evaluation .
The eligibility conditions are intended to ensure that projects entering auctions have sufficient technical basis for assessment. The framework specifies both permitting and data submission elements as part of the qualification process. These requirements are tied to how bids would be evaluated under future tenders.
Grid constraints, curtailment risk, and capacity limits
The proposal addresses grid constraints and curtailment risk, which can affect renewable energy profitability. EDEYEP recommends a partial compensation mechanism intended to protect investors from financial losses caused by system balancing actions or output restrictions . This mechanism is included within the investor protection measures described in the draft.
Developers would be allowed to compete for multiple offshore wind zones under the framework. At the same time, limits are introduced to prevent dominant market positions. Where several areas are auctioned simultaneously, a single investor would not be permitted to secure more than two-thirds of the available capacity.
EDEYEP says these measures are meant to support a stable, transparent, and competitive investment environment while providing 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.
