Greece unblocks billions for renewable projects

ATHENS, GREECE - Greece unblocked renewable energy projects worth 2.1 billion euros US $2.7 billion as the cash-strapped country struggles to attract new investments to boost its ailing economy, the energy regulator said.

The Mediterranean country has offered subsidies to renewable energy firms, but red tape and skewed incentives have led to a huge applications backlog of 40,000 megawatts, rather than to the construction of new units.

Greece's Regulatory Authority for Energy RAE said it approved last week several green energy schemes across the country, with a total capacity of 840 megawatts, and pledged to speed up procedures for the licensing of other projects.

"RAE is doing everything possible and has already opened the way for their projects licensing," the regulator said in a statement.

Although Greece is one of the sunniest and windiest countries in Europe, wind and solar power accounted for just 4 percent of electricity output in 2009, compared with more than 60 percent generated from burning lignite, a polluting form of brown coal.

Greece has pledged to raise the renewables share to 40 percent by 2020.