There is an advantage that makes investment in a photovoltaics project in Greece particularly attractive.
By Gail Flower
The other day, I started wondering about the ways in which printed electronics could improve the world. On September 27, for instance, the BBC News reported, “Greece prime minister seeks signs of support.” Greek Prime Minister George Papandreou spoke in Berlin, saying that Greece would fulfill its obligations and hoped to be without a primary deficit starting from 2012.
I can almost picture it. German Chancellor Angela Merkel wants to help Greece out of its crisis to keep the support of the International Monetary Fund, the European Central Bank, and the EU Commission. The euro connects all countries in the EU and the weakness of one connects to the rest of the Union. So here is Papandreou in Germany seeking some bailout funds. “We need to combine economic growth with solid public finances,” Merkel said. “The idea that you need to boost growth by taking on ever-greater debt is the wrong idea. I’m deeply convinced of that.”
Most gifts aren’t free. What could Germany loan to Greece that would be backed with guaranteed future growth and return on investment? This would be a lend lease program, sort of like what Franklin D. Roosevelt did during World War II, when England needed ships for its defense. Of course we never got those ships back, but future growth did rely on that type of support.
Photovoltaics could provide that sort of loan—one with guaranteed returns with energy representing just another form of euro. Greece has lots of sunshine and a slowly budding PV industry already. I’m not talking about putting solar panels atop the Parthenon or anything like that; the building on the Acropolis has been around since 438 B.C., and that type of structure just wouldn’t be respectful. But Greece has plenty of room for solar projects, and the electricity could be distributed to loaner nations in payment for the investment.
It doesn’t just have to be a German-led loan, though Germany is way ahead in installations. Why not take the problem to the G-20? Members include the big eight industrialized nations and emerging, smaller, industrialized countries. The G-20 accounts for 90% of global clean-energy finance and investment at present.
If you look at “Who is Winning the Clean Energy Race” (www.pewtrusts.org), the G-20 Clean Energy Factbook put out by the Pew Charitable Trusts, where is Greece even mentioned? Look at page 40 under “Rest of EU” to see it listed under feed-in tariffs and tax incentives. There is an advantage that makes investment in a photovoltaics project in Greece particularly attractive, but it’s a grant by the government. Under the Investment Incentives Law 3299/2004 plus amendment distributed by the Greek government, up to 40% of the investment in photovoltaic projects can be covered by government subsidies. And the possibility of financing much of the total investment sum with a bank loan leads to an investor having to furnish merely 25% of the investment sum as equity. But the Greek prime minister seeks signs of support from Germany.
Germany has extensive expertise in solar power. In the Factbook, 44.3% of Germany’s clean energy went to solar investments. With all of their installed units and expertise, couldn’t Germany boost growth in Greece by lend/leasing solar expertise, investment, printed panels, and products?
I’ve often heard that it’s better to give a fishing pole and supplies than a fish to a person in need. Perhaps this is that type of situation.
As a postscript, I discovered after this editorial piece was published that Greece actually plans to finalize a multibillion-dollar solar project by the end of the year.
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