Beijing already owns 24% of Greece’s electricity transmission system operator and has pledged to back a new Greece-EU funded interconnector to Crete which is set to open up more possibilities for solar on the island. The arrival of two of China’s biggest lenders also offers the prospect of new investment in renewables.

Xi Jinping’s state visit could herald significant investment for renewables.

This week it was the turn of Chinese president Xi Jinping to visit Greece, following a trip by counterpart Kyriakos Mitsotakis the other way last week, as a delegate at the China International Import Expo 2019 where the two leaders met up.

With China keen to expand its influence in Europe as part of its continent-spanning Belt and Road infrastructure project, and with Chinese state-owned shipping company Cosco owning a majority stake in the major shipping port of Piraeus, Xi’s two-day visit heralded the signing of 16 trade deals and memoranda of understanding.

Though PV was absent from the list of subjects directly addressed by representatives from the two nations’ business communities, the solar industry is expected to be among the beneficiaries from two developments that emerged from the state visit.

Grid investments

The State Grid Corporation of China, the world’s biggest utility, signed a commitment to back a new electricity interconnector between the Greek mainland and Crete that is expected to unlock more solar capacity on the island as well as helping Greece vary its electric loads as it aims to phase out coal by 2028.

Beijing’s interest in the 134km subsea and 42km underground AC cable – described as “the longest submarine-underground AC cable interconnection in the world” by Greek transmission grid company Admie – is linked to China’s holding of a 24% stake in the grid company since 2017.

Grid restraints on sun-drenched Crete limit the amount of solar capacity which can be deployed there for anything other than self-consumption but the promised interconnector – which is supported by EU funding and expected to be operational next year – will offer more opportunity for exporting excess solar electricity back into the grid.

50 MW CSP investment

The arrangement appears to have already borne dividends with London-based solar developer Nur Energie committing to a 50 MW concentrating solar power (CSP) facility on the island, during Xi’s visit.

The Nur Energie deal included an agreement with the Industrial and Commercial Bank of China, as well as with China’s Energy Engineering Group to collaborate on development of the Cretan CSP plant.

Bank of China to open branch in Greece

The CSP project is indicative of the potential benefits for the Greek renewables industry of the arrival of two of China's‘Big Four' state-owned banks in the nation.

Bank of China, the world’s fourth largest lender, agreed to establish a branch in Greece during the trade visit and world number one the Industrial and Commercial Bank of China will establish a representative office. It is expected both institutions will invest in renewable energy to give Beijing ownership of a significant proportion of Greece’s clean energy infrastructure.

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