The provision of long-term financing of up to €75 million to Hellenic Petroleum for the construction of a portfolio of photovoltaic (PV) plants with total installed capacity of 204MW in Western Macedonia, Greece. The project will be presented under the Greek Renewable Energy Framework.
The project will contribute to climate mitigation by increasing the share of privately owned renewable energy generation in Greece and add 204MW solar PV generation capacity to the national energy system. It will be key to Greece's decarbonisation plans that envisage the decommissioning of the country's lignite-fired generation plants by 2028.
ETI score: 60
The project will target the "Green" quality by supporting the construction of 204MW of solar PV generation capacity. This capacity will replace coal-fired plants in the generation mix with expected associated CO2 savings of approximately 187,000 tonnes annually.
Hellenic Petroleum SA
Founded in 1998, Hellenic Petroleum is one of the leading energy groups in South East Europe, with activities spanning across the energy value chain and presence in 6 countries. Its shares are primarily listed on the Athens Exchange with a secondary listing on the London Stock exchange.
EBRD Finance Summary
The EBRD offers a large volume instrument that fills a market funding gap.
Environmental and Social Summary
Category B (ESP 2019). Environmental and social due diligence has been undertaken by an independent consultant in line with the rules and regulations governing such transactions. The Project consists of a large solar farm covering an area of circa 440 ha located in a rural area of Greece, and is away from sensitive environmental receptors such as protected areas. The closest settlement to the project are 1.2 km and 1.8 km respectively. Permits have been obtained in 2014 based on local EIA's for a number of sub projects and associated infrastructure. Environmental and social issues associated with the development of a large PV solar farm can be readily assessed and mitigated based on an independent Environmental and Social Due Diligence (ESDD).
The ESDD has allowed for adequate assessment of risks and compliance with the Banks PRs and the outstanding issues can be resolved post approval. The ESDD has confirmed that the Project is being developed in line with National and EU requirements and the Client has the institutional capacity to implement the Banks PRs. Key environmental and social risks are associated with land ownership and use (mainly for grazing by a limited number of herders); cumulative impact of the co-development of the sites; visual impacts on the landscape; as well as contractor management during construction.
ESDD has confirmed that existing land users are limited in number and that the client has previously consulted with project affected stakeholders. The Company will acquire the land based on an open auction basis and the client has committed to ensure that any economic displacement and livelihood restoration will be addressed on a structured but, ultimately, voluntary and amicable basis. Notwithstanding, appropriate provision have been included in the ESAP to ensure compliance with the Bank's PRs and that the principles of PR5 for economic displacement will be followed. Post approval, additional social baseline will be obtained to further confirm current land use and an entitlement matrix will be developed.
An Environmental, Health and Safety Advisor to be retained by the Client to supervise the construction process and to ensure EHS issues are adequately addressed by the Contractors and in compliance with the Bank's PRs. The ESAP includes specific actions to engage with neighbouring communities and other stakeholders to solicit feedback and grievances, reduce risk of soil erosion, contractor management in terms of H&S and labour, livelihood restoration mainly of herders who may not have access to the land, as well as cumulative impacts from the solar farm. The Company has committed to implement best practice and structure the Project in line with the Bank's Performance Requirements (PRs). Based on the ESDD an ESAP, NTS and SEP has been finalized and agreed with the Company. The NTS can be downloaded below (please see link in related material section).
The Bank will monitor the implementation of the Project
Technical Cooperation and Grant Financing
Company Contact Information
+30 210 6302 399
+30 210 6302 256
8A Chimarras Street, 151 25 Maroussi, Athens, Greece
PSD last updated
16 Sep 2020
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Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.
More information on the EBRD’s practices in this regard is set out in the ESP.
Integrity and Compliance
The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to firstname.lastname@example.org. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.
Access to Information Policy (AIP)
The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
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Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requesters’ identities may be kept confidential, upon request.