Significant renewable energy (RE) investments have to be realized in order to achieve the ambitious RE targets set in the EU for 2020 and beyond. Moreover, a great amount of capital has to be leveraged, as these projects are followed by high investment and financing costs. Main aim of this paper is the provision of a comprehensive assessment of the existing risk elements of RE investments in relation to the respective policies and the evaluation of their impact on the weighted average cost of capital (WACC) in Greece. A significant consultation with key national energy stakeholders took also place, including policy makers, project developers, investors, equity providers, bankers and energy analysts in the Greek RE market, in order to provide a validation of the respective results. It has been concluded that the policy design risk represents the risk element with the greatest impact on the cost of capital and, thus, the level of RE investments' deployment. Moreover, based on the cost of capital valuation process followed, the WACC was estimated to reach approximately 12% for onshore wind and little lower values for solar PV projects in Greece.

Massive deployment of renewables is considered as a decisive step in most countries’ climate efforts. However, at the local scale, it is also perceived by many as a threat to their rich and diverse natural environment. With this perspective, we argue that this green versus green pseudo-dilemma highlights how crucial a broad societal buy-in is. New, transparent, participatory processes and mechanisms that are oriented toward social licensing can now be employed. A novel, integrative research agenda must orbit around co-creation to enable and promote resource co-management and co-ownership where possible, with increased consensus.

Greece has historically been one of the most lignite-dependent countries in Europe, due to the abundant coal resources in the region of Western Macedonia and the municipality of Megalopolis, Arcadia (region of Peloponnese). However, a key part of the National Energy and Climate Plan is to gradually phase out the use of lignite, which includes the decommissioning of all existing lignite units by 2023, except the Ptolemaida V unit, which will be closed by 2028. This plan makes Greece a frontrunner among countries who intensively use lignite in energy production. In this context, this paper investigates the environmental, economic, and social state of Megalopolis and the related perspectives with regard to the energy transition, through the elaboration of a SWOT analysis, highlighting the strengths, weaknesses, opportunities, and threats of the municipality of Megalopolis and the regional unit of Arcadia. The analysis is based on four main pillars, namely “clean energy”, “smart agricultural production”, “sustainable tourism”, and “other (e.g., industry, technology, and education)”. The integration of the “Energy Efficiency First” principle, the mitigation of household energy poverty (especially in a region with district heating installations), and collectively driven energy actions for engaging and empowering younger generations (e.g., in the form of next-generation energy communities) are among the solutions that are expected to have a significant contribution towards Megalopolis’ just energy transition.

Capacity markets, as a means to address the capacity adequacy issue, are constantly becoming an important part of the European internal electricity market. The debate focuses on how the capacity markets will be smoothly integrated in one Pan-European power market, without resulting in multiple national fragmentations and consequently in economic efficiency losses. Cross-border participation and regional cooperation are considered as two sine qua non conditions in this respect. The present paper provides a coalitional game theoretical approach aiming to facilitate the cooperation of neighboring countries, when it comes to the security of electricity supply and the necessity of establishing a capacity market. Such an approach can support respective decisions about capacity markets cooperation as well as stress-test the benefits considering all cooperation possibilities.

The present paper analyses the evolution of the capacity markets within the context of the European electricity markets. Specifically, it analyses the history of European capacity markets and the new challenges that the emergence of these markets brings to the process of the European internal market.