Old Development Law (Law 1892/1990)

The Economic Development Law (“Modernisation, Development and Other Regulations”) provided the framework for the provision of subsidies for productive investments. Subsidy rates depended on the level of development of the region concerned, and were between 40% and 55% of the total budget of the project. The laws principal objective was to modernise, develop and regulate investments for renewable energy production and electricity generation. It provided investment subsidies and tax deductions of up to 40% and 100% respectively. This law was significant to the development of wind energy in Greece. In the framework of this law, twelve wind parks of approximately 90 MW have been approved with an average funding of 40%. Moreover, the installation of central solar systems (especially in hotels) was also promoted by this law. The main incentive was the tax exemption for the investments and the low interest rate loans for the installation of solar systems.