Solar power offers a ray of hope to stricken Greek economy

Renewable energy could play a significant role in helping Greece to recover from the deepest recession it has faced in decades, following the publication of a new national plan designed to deliver a 10-fold increase in solar energy capacity by 2020.

Energy minister George Papaconstantinou yesterday presented the so-called Project Helios initiative at an energy conference in Hamburg, Germany, predicting the country's solar industry could attract €20bn of investment over the coming decades.

According to Reuters, Papaconstantinou suggested Greece has the potential to become a leading player in the fast-expanding global solar market, given it enjoys 300 days of sunshine a year – almost 50 per cent more sunshine than the world's current largest solar market, Germany.

Greece already boasts 206MW of solar capacity, but is now aiming to increase capacity to 2,200MW by 2020, rising to 10,000MW by 2050.

The government hopes the plan could attract up to €20bn of investment and help establish the country as a net exporter of solar power that assists other countries in meeting their EU renewables targets.

However, the success will depend on attracting foreign investors, which could prove difficult given the country's current economic crisis, and streamlining Greece's complex planning regulations.

The proposal represents a further boost to Europe's solar sector after a new report from the European Photovoltaic Industry Association predicted that solar power would become as cost effective as coal power by 2020, with some regions achieving cost parity as early as 2013.

The report predicted that countries such as Italy, which boast a Mediterranean climate, would be among the first to achieve cost parity.