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Power usage in February falls for 8th month in a row, down by 2.25%

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Electricity usage in Greece fell for an eighth successive month in February, dropping by 2.25 percent, compared to the equivalent month a year earlier, data in a latest report from power grid operator IPTO has shown.

However, the February drop was far milder than the 13.78 percent electricity usage decline recorded in January.

Consumers in Greece used an electricity amount of 4,069 GWh in February, down from 4,163 GWh in February, 2022.

Monthly electricity usage in the country has not stopped declining since an initial fall registered last July.

Renewable energy dominated February’s energy mix, capturing a 41.2 percent share, followed by gas-fueled power stations, with 22.5 percent, and lignite-fired power stations, at 15 percent.

As for retail electricity market shares, power utility PPC, the dominant player, gained 2.5 percent in February. compared to the previous month, for a 62.58 percent market share.

Among the independent suppliers, Protergia, a member of the Mytilineos group, remained at the forefront in February with a 7.44 percent retail market share, down from 10.53 percent a month earlier.

The country’s two other vertically integrated energy groups followed. Heron ended January with a 7.03 percent market share, up from 6.83 percent, and Elpedison captured a 5.91 percent market share, down from 6.02 percent.

Elsewhere, NRG captured a 4.82 percent retail electricity market share in January, up from 4.55 percent, followed by Aerio Attikis at 2.78 percent, marginally above the previous month’s 2.66 percent; Zenith registered 2.23 percent (2.17%); Watt & Volt was at 2.09 percent (2.06%); and Volterra captured 1.81 percent (1.8%). The remainder of suppliers shared a total of 3.3 percent.

 

German-Spanish systems for local exchange’s PPA platform

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The Greek energy exchange plans to shape its prospective PPA (power purchase agreement) trading platform based on German and Spanish systems, deemed as positive examples as they ensure greater liquidity and attract more investment interest, the Greek energy exchange’s new CEO, Alexandros Papageorgiou, told the recent Power & Gas Forum in Athens.

PPA platforms are digital markets that bring together RES producers with energy consumers interested in purchasing green energy.

These platforms highlight the most important aspects of respective green portfolios, such as power, technologies and production, providing potential buyers with information they need to choose from available options before signing bilateral contracts.

The Greek energy exchange also intends to significantly expand its gas trading platform by offering a range of new products, its CEO informed.

“It is important to know the needs of market participants,” Papageorgiou noted.

The local energy exchange is following a wider European direction taken by energy exchanges across the continent, which are increasingly relying on use of relevant tools available to reduce costs for consumers and offer smoother functioning markets.

 

Athens promoting domestic RES equipment production

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The government is promoting support programs for Greek production of RES-sector equipment, from batteries to energy storage systems, production and assembly of solar panels, as well as equipment concerning the hydrogen and electromobility sectors, energy minister Kostas Skrekas revealed to energypress in a wide-ranging interview held as part of the recent Power & Gas Forum in Athens.

In the interview, given to energypress editor-in-chief Thodoris Panagoulis and Capital’s managing editor Haris Floudopoulos, the minister, amongst other things, referred to the finalization of the National Energy and Climate Plan, which, he stressed, will be set within a more realistic framework, based on respective adjustments at European level.

Skrekas also referred extensively to developments in the retail and wholesale electricity markets, noting the supply code must be changed. He also pointed out the government’s imminent support to energy-intensive industry through a program promoting self-production and energy storage.

The minister highlighted the government’s emphasis on green energy, noting Greece, for the first time, has a RES-sector advantage over European countries of the north and must utilize the country’s ample sunshine to the benefit of household and professional energy consumers.

“The strategy we have developed over the past three years, and for going forward, is about the rapid penetration of renewables in our energy mix. Of course, in order to achieve this, reforms were needed and many steps still need to be taken,” the minister noted, adding further development of RES units and storage, as well as networks, must be addressed to reach a point where all energy consumed is derived from renewables.

Greece is playing a leading renewables role on many fronts, the minister said, making note of the country’s greater licensing speed, highlighted by doubled installed RES capacity within three to four years, from 5-5.5 GW in 2018 to over 10 GW in 2022, which, he added, has resulted in doubled electricity generation from renewable sources.

EDA Attikis and EDA THESS’ online workshop with the Supply Companies

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In the context of fostering effective cooperation, a constructive working meeting was held between the Distribution Network Operators, EDA ATTIKIS and EDA THESS, and the Supply Companies (Distribution Users) operating on the natural gas networks of Attica, Thessaloniki and Thessaly, with the aim of optimizing the services provided to end consumers and fully complying with the regulatory framework.

The agenda of the meeting included, among others, issues related to market development, increasing the penetration rate, consumer service, as well as the development of new networks in the License Areas of the Distribution Network  Operators.

The participating Supply Companies put forward their proposals and expressed their optimism for the joint and timely management of the issues addressed, prioritizing the strengthening and upgrading of the interoperability of the Operators’ online electronic information exchange tools (portals), always in accordance with the current regulatory framework and with a view to the equal treatment of Supply Companies and End Consumers.

On the part of EDA ATTIKIS and EDA THESS – which hold 99.5% of the total gas meters nationwide – special emphasis was placed on the actions to be taken in order to regain trust in natural gas, as it is the cleanest, most cost-effective, efficient and environmentally friendly fuel.

In addition, the Operators informed the attendants that meetings will soon be held with the Technical Entities and Municipal Authorities to inform them about the implementation of the 2023 Development Programs in the License areas. The Operators are committed to providing access to natural gas to all consumers, by ensuring connection to the existing gas network – also in Attica – within 35 days, with the aim of increasing penetration.

Concluding the workshop, Mr. Leonidas Bakouras pointed out that, as Distribution Network Operators, the recognition of our networks’ potential to channel green energy to thousands of consumers, offering an easy and cost-effective decarbonisation pathway, lays solid foundations for a sustainable future, creating added value for the benefit of all stakeholders.

 

Halki residents producing the electricity they consume

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For the first time in Greece, the residents of a municipality are actually producing the energy they consume.

The residents of the small island of Halki, in collaboration with the municipality, can fully cover their energy needs and reduce their electricity bills to virtually nil, as a result of the operation of the island’s photovoltaic park, created as part of the GRecoIslands programme.

The GR-ecoIslands initiative with the state-of-the-art photovoltaic park of Halki, with a power of 1MW, covers the local energy needs of the residents, giving them the possibility to zero the bills for the electricity they consume, through “Virtual Net-Metering.”

Thus, 34% of the one-year PPC electricity bills were actually negative, 40% were under 100 euros, and 26%, mostly businesses, paid up to 800 euros.

The total savings exceeded 200,000 euros in the last year.

At the same time, the photovoltaic park has contributed to the reduction of carbon dioxide emissions in the atmosphere by 2,246 kg.

Halki was the first island to pave the way for GREcoislands, the national initiative aimed at the comprehensive green transition of small islands. It is part of the Greek government’s effort to combat climate change, while promoting sustainable development and the empowerment of the green economy and cutting-edge technologies.

Power supply cuts up modestly in 2022 despite energy crisis

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Power supply cuts executed by distribution network operator DEDDIE/HEDNO in 2022 increased by roughly 6,000 compared to 2021, a subdued rise given the ongoing energy crisis and increased energy costs for households.

The operator commended consumers for their ability to adjust to the extreme market conditions.

The number of consumers shifting suppliers in 2022 rose only slightly, to 588,000 customers, up from 555,000 in 2021, despite expectations of greater mobilization in 2022.

However, unrestricted usage, by consumers, of the country’s universal electricity supply service, covering the electricity needs of black-listed consumers who have been shunned by suppliers over payment failures, is a problem for the market, Dimitris Vranis, Director of the Network Users Department at DEDDIE/HEDNO told last week’s Power & Gas Forum in Athens.

The universal service’s current framework, offering consumers usage over limitless periods, has been loss-incurring for suppliers.

Consumer reliance on the universal electricity supply service, up 12 percent this year alone, has grown considerably in recent years. It is provided collectively – by law – by the electricity market’s top five suppliers, based on market share.

 

Asso.subsea joins forces for GAP Interconnection

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ATHENS – March 28, 2023 – The GAP Consortium and Asso.subsea have announced the signing of a Memorandum of Understanding (MoU) for cooperation on the two-gigawatt (2 GW) electrical interconnection between Greece and Egypt (Greece-Africa Power Interconnector – GAP).

GAP project, founded by the Eunice Energy Group, is leading the transnational consortium between Greece and Egypt that aims to contribute to regional energy security and stability by facilitating intercontinental clean energy transfer. As part of the consortium, Asso.subsea, a leader in submarine cable installation, protection, repair, and support operations, has established a constantly updated long track record of participations, not only in domestic, but also in worldwide projects. It will be providing expertise in design and construction guidance for the project.

Andreas Borgeas, Greece-Africa Power (GAP) CEO said: “This is a partnership that significantly strengthens the international consortium for the construction of GAP. The memorandum of understanding (MoU) between Asso.subsea and the Consortium is a step further to ensure energy independence for Greece and Europe.” 

Alexandros Tziotakis, General Manager of Αsso.Subsea Limited added: “We are delighted with the opportunity to work with the GAP Consortium and to contribute together to the effective implementation of a critical infrastructure for the wider region. The subsea interconnector is considered to be vitally important for the Greek and European energy market.”

About Αsso.subsea

Asso.subsea Limited is a subsea utilities’ installation contractor offering offshore solutions on a worldwide basis with more than 40 years of experience in the offshore industry market. It is the technical and engineering division of the Greek-owned ASSO Group of Companies. The latter wholly owns a fleet of specialized in offshore works vessels and equipment and a technical base in Attica, Greece with an in-house R&D for the design and production of tools.  The ASSO Group of Companies provides for an in-house engineering offering tailor-made solutions as well as specialized personnel for the offshore execution and support during operations. Asso.subsea with a plan for major investments in assets and manpower is a key player in the offshore energy market aiming to a continuously increased capacity and capabilities.  www.assogroup.com.

Greece to back gas usage cut extension at Energy Council

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Greek energy minister Kostas Skrekas is expected to back a European Commission proposal for a 12-month extension of a measure supporting a 15 percent reduction of natural gas usage at today’s Energy Council of EU energy ministers.

The group of 27 energy ministers will seek to reach a political agreement on the measure’s proposed extension, from April 1, 2023 to March 31, 2024, so that Europe may also be prepared for next winter should EU member states face gas supply issues or even disruptions.

This measure, first introduced on August 1, 2022, is set to expire in a few days’ time, on March 31. It called for a 15 percent reduction of gas usage during this period, compared to the previous five-year average during the equivalent eight-month periods. Greece exceeded the measure’s target by reducing its natural gas usage by 20.9 percent.

The measure’s gas usage restrictions are voluntary but would become binding should higher-alert conditions come about.

Europe’s natural gas savings stand to reach 60 billion cubic meters over the next twelve months if the EU’s 27 energy ministers agree on a one-year extension of the measure for an annual 15 percent reduction of natural gas usage.

Skrekas, Greece’s energy minister, also plans to present, at today’s Energy Council, the country’s proposal for an EU power grid capacity boost and expansion to facilitate electricity flow from south to north, as part of a wider plan envisaging RES flow from north Africa to Greece and the rest of Europe, via the western Balkans.

 

PM Mitsotakis: The general elections will be held on May 21

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Prime Minister Kyriakos Mitsotakis announced on Tuesday that the general elections will be held on May 21. Mitsotakis added that a second round of elections, if needed, will take place in early July at the latest.

Prime Minister Kyriakos Mitsotakis made the announcement in his opening remarks to a cabinet meeting, during which Interior Minister Makis Voridis and Alternate Finance Minister Theodoros Skylakakis are to present actions relating to public administration.

IPTO facing grid-sufficiency challenge this coming Easter

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Current energy market conditions, combining reduced electricity demand and deeper penetration of the energy mix by renewables, have emerged as a grid-security challenge for power grid operator IPTO, raising fears of power outages.

Output by RES units is generally on the rise and periods of low energy demand, such as the present, oblige the operator to manage a grid that is highly reliant on green energy, representing over 50 percent of the energy mix.

A sharp rise in energy demand expected during the upcoming Easter period and the subsequent dip pose an even greater challenge for the operator, required to manage the RES-dominated grid without support from energy storage units, still not part of the energy market picture but expected to figure more prominently in coming years.

Officials at RAE, the Regulatory Authority for Energy, note IPTO has fully informed the authority on the challenges it faces and action it plans to take to remedy the situation.

IPTO may choose to cut back on RES reliance. A second measure may entail limiting electricity imports through a freeze on interconnection rights.

Ioannis Margaris, Deputy Chairman at IPTO, highlighted the tricky situation faced by the operator at last week’s Power & Gas Forum in Athens.

“Our operations are on edge,” he noted, describing high-risk periods when low demand is combined with high RES penetration and mass withdrawal of conventional power stations, adding the problem will be exacerbated as Easter approaches. “Easter will be a big test.”

Revised universal electricity supply service, after general elections

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The energy ministry is considering to revise the country’s universal electricity supply service, which covers the needs of black-listed consumers who have been shunned by suppliers over payment failures, deeming changes are necessary as reliance on this service, up 12 percent this year alone, has grown considerably over recent years.

Provided collectively – by law – by the electricity market’s top five suppliers, based on market share, the universal electricity supply service has grown to become the country’s sixth-largest electricity supplier, serving over 210,000 power meters, up from roughly 22,500 a decade ago, Vassilis Zouvias, Director of Regulatory Affairs at energy company NRG, highlighted during last week’s 4th Power & Gas Forum in Athens.

Just 9 percent of consumers using the universal electricity supply service pay their energy bills on time, while over 60 percent end up not paying their bills at all, the official noted.

Also speaking at last week’s forum, Dimitris Tsalemis, Director General for Energy at the energy ministry, noted these figures do not reflect the goals of the universal electricity supply service, adding “something needs to be done.”

New energy ministry proposals will aim to reshape the universal electricity supply service so that it offers attractive tariffs for participating suppliers through a competitive procedure organized by RAE, the Regulatory Authority for Energy, rather than administratively by the energy ministry, Tsalemis pointed out.

However, changes to the universal electricity supply service would previously require revising the retail electricity market code and, therefore, a legislative amendment, expected to take place following the forthcoming general elections, to be held in May, according to a latest update offered just days ago by Prime Minister Kyriakos Mitsotakis.

 

 

Short-term measures sought to contain any new energy crisis

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Energy minister Kostas Skrekas, who believes that recent European Commission proposals to further counter the energy crisis are on the right track but remain too timid, intends to call for firmer, more immediate action aimed at containing any new crisis at tomorrow’s Energy Council of EU energy ministers.

The energy minister is expected to express support of Brussels’ approach at tomorrow’s Energy Council but also underline major challenges faced by Europe, especially next winter, when, according to many analysts, a sharp rise in energy demand will not be able to be covered by existing LNG supply levels, and, as a result, bring about a new round of sharp price rises.

In a recent report, Goldman Sachs reminded that the structural deficit in European gas balances caused by the interruption of Russian gas supply has not yet been addressed.

Any sharp increase in energy demand during the lead-up to next winter, when Russian gas quantities that filled European energy storage facilities last year will have to be covered by the LNG market, could, according to Goldman Sachs, double current wholesale gas prices back up to levels of at 100 euros per MWh, as supply remains limited.

International projects currently being developed to boost global LNG supply are not expected to emerge and offer results before 2025.

Greek officials are seeking the establishment of a new European fund that could provide state guarantees for CfDs and other possible measures included in the European Commission’s set of proposals, such as hedging.

Athens believes that, without some form of support, prospective benefits of measures proposed by the European Commission will be limited to EU member states possessing fiscal leeway and marginalize the rest.

 

Green Pool talks for PPA price containment enter third round

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Local authorities are striving for imminent approval, by the European Commission, of the Green Pool, intended to contain price levels of prospective green-energy power purchase agreements (PPAs) established between industrial producers and energy producers, so that it may be implemented early in 2024.

Negotiations between Greece’s energy ministry and the European Commission’s Directorate-General for Competition, launched roughly a year ago, have now entered a third round of talks.

It began early this year and is now taking place as talks between local industrial players and RES producers for the country’s first ever PPAs have ripened.

The process continued this month with a Greek response to a new set of questions forwarded by Brussels.

A recent exemption of bilateral contracts from wholesale market caps has paved the way for the establishment of PPAs.

Authorities are striving for Brussels’ imminent approval of the Green Pool so that it may be implemented early in 2024, a year during which the pool is expected to be eased into the system as a pilot program before green-energy quantities supplied to industrial energy users become considerably bigger.

‘Incentives for battery additions to PVs would free up grid space’

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Power grid operator IPTO’s Deputy Chairman, Ioannis Margaris, participating in a panel discussion at yesterday’s second and final day of the Power & Gas Forum in Athens, proposed incentives for behind-the-meter energy storage unit additions to still-unelectrified solar panel installations as a means of making available extra grid capacity for new RES projects.

Efficient use of the grid’s limited capacity is crucial. Authorities have already warned that unless drastic action is taken, the country’s grid capacity is headed towards exhaustion in the coming years.

At present, occupied grid capacity totals 25 GW, 11 GW concerning RES projects already operating and 14 GW concerning active final connection offers, the IPTO deputy noted.

Margaris stressed that grid access in many parts of the country will soon become unavailable given the large number of RES project connection applications submitted by investors to IPTO.

Stricter terms limiting the duration of connection offers for stagnant projects, a measure that was recently ratified in Parliament as part of a multi-bill submitted by the energy ministry, will help free up valuable grid capacity, the IPTO deputy stressed.

Also taking part in the forum’s panel discussion, Dr. Stavros Papathanasiou, Professor at the National Technical University of Athens (NTUA), agreed that a solution concerning the addition of energy storage units to RES projects will, sooner or later, need to be adopted.

Adding behind-the-meter batteries to solar panel systems, either under development or already operating, is the only option to avoid big project cuts as the objective is to accommodate as many RES units as possible into the grid’s limited capacity, the professor stressed.

Battery additions will, of course, increase the cost of solar energy projects, but this increase should not add more than 15 to 20 euros per MWh to the cost of electricity produced by each project, assuming batteries with a duration of between 0.5 and one hour are installed, Papathanasiou informed.

 

Residential tariff subsidies of 1.5 cents per KWh for April

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Standard electricity subsidies for residential tariffs in April have been set at 1.5 cents per KWh, while the month’s subsidies concerning social residential tariffs (KOT), offered to low-income households, are 5.4 cents per KWh, the overall cost of this support package for the month being 24.4 million euros, energy minister Kostas Skrekas has just announced.

This subsidy outlay, for the month, greatly reduced compared to previous months, has been made possible by lower wholesale electricity prices that enabled retailers to announce, earlier this week, lower tariffs for April.

The government has been providing subsidies throughout the energy crisis to subdue residential tariffs to levels of between 15 and 16 cents per KWh.

Based on recent law, electricity retailers in Greece are required to announce their tariffs for each forthcoming month by the 20th of every preceding month.

The energy minister has also just announced two new subsidy programs for energy efficiency upgrades of buildings. One of the two support programs will be made available to young adults, while the other is the third edition of the “Saving at Home” program.

The government has offered over nine billion euros in subsidies over the past 20 months to support Greek society amid the unprecedented energy crisis, Skrekas, the energy minister, noted.

Seventy percent of these funds have been generated by a windfall tax on excess earnings of electricity companies, as well as CO2 right auctions, minimizing the state budget’s contribution for electricity subsidies, the minister stressed.

“The energy crisis is continuing. We will continue offering support for as long as it takes,” Skrekas said.

Subsidy package enhanced for roof-mounted PVs with storage

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A subsidy package supporting roof-mounted solar panel installations with energy storage units, whose terms and conditions were announced yesterday, has been enhanced on a number of fronts.

The capacity limit for solar panel installations eligible for this support program has been raised to 10.8 kW from 7 kW. Also, besides households, the package will also be offered to farmers. This latter category’s inclusion into the program had been in doubt over beliefs that funding availability was insufficient. However, the subsidy package’s budget has now been boosted to 200 million euros from a previously reported total of 150 million euros.

The support program’s increased budget was bound to happen as 35 million euros would have been required for low-income families, while a 10 percent subsidy bonus was also added to the offering for persons with disabilities, single-parent families and multi-member families.

Authorities were prompted to deliver a more generous support package as a result of strong interest expressed by prospective applicants.

The capacity limit boost, to 10.8 kW per roof-mounted solar panel installation, also required a capacity lift for incorporated energy storage units, from 7 kW to 10 kW.

Households stand to receive subsidies covering as much as 75 percent of the cost of roof-mounted solar panel installations with energy storage units, while farmers will be subsidized for up to 60 percent of their cost.

This means households stand to qualify for subsidies worth as much as 16,000 euros and the package’s support for farmers may reach 10,000 euros.

 

 

 

Energean plc: 2022 Full-Year Results  

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London, 23 March 2023 – Energean plc (LSE: ENOG, TASE: אנאג) has announced its audited full-year results for the year ended 31 December 2022 (“FY 2022“).

Mathios Rigas, Chief Executive of Energean, commented:

“2022 was a year of transformation for Energean – where a long-held vision became an operational reality. It was a year of positive delivery. We commenced production from the only FPSO in the strategically vital Eastern Mediterranean region, paid dividends to our shareholders, and laid the foundation for our future growth through the discovery and de-risking of new natural gas resources adjacent to our infrastructure. Energean was the sole owner-operator of five deepwater wells, which drove a 20% increase in our reserve base, and marked the 15th consecutive year of reserve and resource base increases for Energean. We are proud to be on track to deliver between 4.5 and 5.5 bcm of gas into the Israeli domestic gas market this year, contributing towards the security of energy supply of the region and improving the living conditions of the Israeli public through the reduction of emissions from the displacement of coal-fired power generation.

“The first quarter of 2023 has continued the positive trend. Production from Karish is in line with our expectations, and in February we supplied the first Israeli hydrocarbon liquids export cargo to international markets. In Egypt, we achieved first gas at NEA/NI with three further wells due to come onstream during the year. In Italy, we are the third largest producer of natural gas and look forward to increasing our contribution towards the country’s energy supply. And in Greece, we are continuing our efforts to explore the untapped resources of the country.

“The remainder of 2023 will see us present the development concept for the Olympus Area, offshore Israel, and increase the capacity of the Energean Power FPSO to 8 bcm/yr. This is alongside delivery of production in line with guidance and deliver on-target returns, as promised, to our shareholder base. Through our gas contracting strategy we are in a unique position to have a very predictable and stable cashflow despite turbulence and challenges in the international financial markets.

“We are committed to investing in projects where we can create value for all stakeholders. The global energy crisis is not over – the global gas market remains dangerously tight and benefitted from a mild European winter, but thousands of industrial jobs are now at risk not just to price but also to availability. We therefore hope that governments understand the value of enhanced domestic and regional energy production, that can only be delivered through long-term investment.”

Highlights

  • Delivered first gas from Karish in October 2022
    • Production and ramp up in line with expectations
    • Energean is now sequentially notifying gas buyers that the commissioning period under the gas sales and purchase agreements (“GSPAs”) has ended and the start date for commercial obligations has commenced. It expects to have completed this process for all gas buyers by the end of March 2023
  • Initiated hydrocarbon liquid exports from Karish field to international markets
  • Delivered first production from NEA/NI, Egypt, in March 2023
  • On track to deliver 200 kboed production target in 2H 2024
  • Confirmed year-end 2P reserves of 1,161 mmboe (+20% increase versus end-2021) representing a reserve replacement ratio of 1400%
    • Including the addition of 31 bcm (approximately 206 mmboe) of 2P reserves in the Olympus Area, offshore Israel, that have now been certified by Energean’s reserve auditor, Degolyer and McNaughton (“D&M”)
  • Delivered strong financial performance, underpinned by strong commodity prices
    • 2022 revenues of $737.1 million, represented a 48.3% increase (2021: $497.0 million)
    • 2022 EBITDAX of $421.6 million, represented a 98.8% increase (2021: $212.1 million)
    • 2022 profit-after-tax of $17.3 million, was an improvement on last year’s loss (2021: $(96.2) million). Profit after tax was negatively impacted by $119.4 million of windfall taxes in Italy[1], which are expected to have been applied on a one-off basis
    • Group cash as of 31 December 2022 was $502.7 million (including restricted amounts of $74.8 million) and total liquidity was $720.0 million. In March 2023, Energean signed a $350 million term loan providing additional financial flexibility
  • Announced dividend strategy and initiated dividend payments
    • Cumulative dividends paid of 60 US$ cents with a further $30 US$ cents declared and not paid, representing an annualised yield of approximately 9%[2].
  • Carbon Disclosure Project (“CDP”) rating increased to A- (from B), outperforming the global average for E&Ps of C

Outlook

  • 2023 production guidance confirmed at 131 – 158 kboed, including 4.5 – 5.5 bcm of gas from Karish
  • Mid-term targets now considered near-term: on track to achieve production, financial targets, and leverage targets in 2H 2024[3] through execution of key development projects
    • Karish growth projects to increase the capacity of the Energean Power FPSO are on track for year-end 2023, following which Israel production is expected to be more than 140 – 155 kboed
    • Three additional wells to be brought onstream at NEA/NI by year-end 2023, following which production in Egypt is expected to be more than 40 kboed
    • Cassiopea expected to deliver first gas in 2024, following which production in Italy is expected to be approximately 20 kboed
  • Communication of development concept for the Olympus Area expected in the coming months
  • Orion X1 well, Egypt, (Energean 30%, expected to farm down to 18%) expected to spud in late 2023, slightly delayed due to rig availability
  • Declaration of quarterly dividends in line with previously communicated policy
    • $50 million per quarter initially, rising to $100 million per quarter following achievement of near-term targets
    • Cumulative dividends of at least $1 billion by end-2025
    • Post-2025 target to maintain a progressive dividend policy, underpinned by existing reserve volumes

Financial Summary

 

    FY 2022 FY 2021 % Change
Average working interest production kboed 41.2 41.0 0.5%
Sales and other revenue $ million 737.1 497.0 48.3%
Cash Cost of Production $ million 284.3 261.6 8.7%
Adjusted EBITDAX[4] $ million 421.6 212.1 98.8%
Profit/(loss) after tax $ million 17.3 (96.2) 118.0%
         
Capital expenditure $ million 728.8 403.5 80.6%
Exploration expenditure $ million 141.0 48.7 189.5%
Decommissioning expenditure $ million 8.9 2.7 229.6%
         
Cash (including restricted amounts) $ million 502.7 930.5 (46.0%)
Net debt – consolidated $ million 2,518.2 2,016.6 24.9%
Net debt – plc excluding Israel $ million 143.8 102.6 40.2%
Net debt – Israel $ million 2,374.4 1,914.0 24.1%

 [4] During 2022, Italy introduced: 1) a windfall tax in the form of a law decree which imposed a 25% one-off tax on profit margins that rose by more than 5 million euros between October 2021 and April 2022 compared to the same period a year earlier. The amount of the windfall tax paid by Energean Italy was $29.3 million and 2) In November 2022, Italy introduced a new windfall tax that imposed a 50% one-off tax, calculated on 2022 taxable profits that are 10% higher than the average taxable profits between 2018-2021. This amount has a ceiling equal to 25% of the value of the net assets at end-2021. Based on this, Energean would be required to pay an additional one-off tax of €87 million in June 2023.

[4] Based on 21 March 2023 share price of GBp 11.00

[4] On an annualised basis

[4] Adjusted EBITDAX is calculated as profit or loss for the period, adjusted for discontinued operations, taxation, depreciation and amortisation, share-based payment charge, impairment of property, plant and equipment, other income and expenses, net finance costs and exploration and evaluation expenses.

Time to lift energy crisis measures, market players tell Power & Gas forum

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Extraordinary measures implemented during the energy crisis must now be lifted as they are hampering competition and leading to increased costs for producers and suppliers, energy company representatives stressed during yesterday’s opening day of the Power & Gas Forum in Athens, an event organized by energypress.

Producers and suppliers highlighted that extraordinary measures were introduced as temporary intervention and need to be lifted as they violate the market’s ability to function normally, are affecting competition and also harming market clarity.

Energy firms are operating amid a heavily regulated market with strong state intervention, Dimitris Christou, Director of Legal and Regulatory Affairs at energy supplier Zenith, told the the Power & Gas Forum.

Anastasios Lostarakos, General Manager of energy retailer NRG, echoed these thoughts, telling the forum that extraordinary measures adopted by EU member states to address adverse energy market conditions in 2021 and 2022 should be lifted as soon as possible as the way out of the energy crisis has already begun.

Crete unable to take on more grid links, IPTO informs GAP Interconnector

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The Cretan grid cannot take on any further interconnections as power grid operator IPTO’s Crete-Peloponnese and Crete-Athens grid links, plus the Cyprus-Crete subsea cable connection planned by EuroAsia Interconnector have exhausted the island’s capacity, IPTO officials have underlined.

IPTO officials, at a recent meeting with representatives of the Eunice Group, heading the effort for development of the GAP Interconnector (Greece-Africa Power) project, informed of Crete’s inability to take on any further interconnections, according to IPTO sources. An alternative route for the GAP Interconnector not involving Crete will, as a result, be needed, the IPTO officials have asserted.

GAP Interconnector officials want to develop their project as a means of importing RES-generated energy from Egypt to mainland Greece via Crete.

The plan entails installing two subsea cables, offering a 2,000-MW capacity, from coastal Matruh in Egypt to Crete’s Atherinolakko, a distance of approximately 450 kilometers.

Any new major grid interconnection involving Crete would hamper the local grid’s ability to operate safely and reliably, while also endangering the grid, itself, and interconnections, IPTO officials warned.

Greece promoting power corridors linking Europe’s north and south

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Greek Prime Minister Kyriakos Mitsotakis is pushing for an expanded and reinforced European grid that would facilitate the transfer of RES-generated electricity northwards from the continent’s south, energy minister Kostas Skrekas and the Greek leader’s special adviser for energy, Nikos Tsafos have revealed at the ongoing Power & Gas Forum organized by energypress in Athens.

The plan entails developing European energy networks for the transfer of RES-generated electricity from north African and southeastern Mediterranean countries to Europe via Greece and other southern European countries.

Electricity interconnections from Egypt and Tunisia are in the pipeline but their effectiveness would depend on the development of a greater number of higher-capacity transmission lines by EU member states.

The Greek proposal is based on data provided by ENTSO-E, the European Network of Transmission System Operators, according to which an additional overall capacity of 64 GW can be added at 50 cross-border electricity interconnections in Europe between 2025 and 2030, a development that would boost the European grid’s efficiency by 55 percent.

The Greek initiative, placing emphasis on the development of electricity corridors linking the continent’s north and south, would enable more consistent green energy supply all over Europe throughout the year. At present, scattered and differing RES yields generated by wind and solar technologies in various parts of the continent have limited reach.

An upgrade of the continent’s grid would enable continual flow of RES-generated energy between European countries of the north and south, maximizing RES efficiency.

 

Overdevelopment danger for LNG terminals in Europe, IEEFA warns

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Major LNG terminals being developed in various parts of Europe, including Greece and Germany, in response to reduced Russian gas supply, could fail to achieve full commercial potential as the continent may end up possessing a far greater number of such facilities than required by 2030, the Institute for Energy Economics and Financial Analysis (IEEFA) has warned.

If REPower EU objectives are attained and Turkish gas demand remains steady, then European demand for LNG will be restricted to a level of just 150 billion cubic meters in 2030, down from 175 bcm in 2022, IEEFA pointed out. At such a level in 2030, LNG terminals in Europe would operate at less than 40 percent of capacity.

IEEFA also stressed that European gas operators have an incentive to over-expand their infrastructure and asset base in order to deliver profits to shareholders, even if projects do not end up being fully utilized.

Existing legislation provides operators with guaranteed revenues collected through tariffs, IEEFA pointed out. Evidence strongly suggests the Russian attack on Ukraine has accelerated Europe’s energy transition by dramatically boosting the penetration of green technologies that reduce demand for gas and LNG, the institute added.

 

GAP Interconnector promising additional Greek-Egyptian grid link

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The GAP Interconnector project, planned to link Egypt with Greece, via Crete, promises to serve as a further step towards transforming Greece into an exporter of green energy to the rest of Europe, officials of the Eunice Group, heading the project, budgeted at 1.3 billion euros, have highlighted at a news conference.

It represents an additional Greek-Egyptian grid interconnection project, following the GREGY Interconnector, a 3.5 billion-euro project being promoted by Elica, a subsidiary of the Copelouzos group.

The GAP Interconnector project promises to reinforce Greece’s geostrategic role, making it a transmission hub to the rest of Europe for RES-generated electricity from Egypt, Andreas Borgeas, the project’s chief executive and a former California Senator, told journalists.

A feasibility study has already been conducted for the GAP Interconnector, as have oceanographic studies to map the areas concerning the project’s route, the Borgeas informed.

Two cables to offer a 2,000-MW capacity and run from coastal Matruh in Egypt to Crete’s Atherinolakko, a distance of approximately 450 kilometers, will serve as the project’s backbone. Converter stations will be installed at both these locations.

The project, whose subsea cable installations will reach as deep as 4,445 meters off Crete and 3,500 meters off Egypt, was described as “challenging” by Borgeas, the project chief, who added advanced deep-sea cable installation technology is now available.

The aim is to establish a multinational consortium for the GAP Interconnector project and induct, as a first step, the US company McDermott, one of the world’s biggest developers of subsea projects, Borgeas informed. French, Greek and Italian companies are also expected to soon join this consortium, the official added.

The GAP Interconnector project and the GREGY Interconnector are not rival projects but they will compete for points concerning PCI-PMI lists, Borgeas pointed out.

A direct, straight-line connection from Egypt to Crete planned for the GAP Interconnector offers it a comparative advantage as it is shorter and subsequently lower in cost, Borgeas noted, adding the project lies entirely within the boundaries of the Greek-Egyptian exclusive economic zone (EEZ).

It is planned to be complemented by the Southern Aegean Interconnector (SAI), a 1.5 billion-euro project to connect Athens, the Dodecanese islands, and Crete.

Record-level solar panel installations in 2022 reach 1,362 MW

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Solar panel installations in 2022 reached an all-time high of 1,362 MW, exceeding the previous record capacity of 838 MW tallied in the previous year, preliminary data provided by SEF, the Hellenic Association of Photovoltaic Companies (HELAPCO), has shown.

Last year’s surge in solar panel connections to the grid took the country’s portfolio of installed PVs to 5,488 MW.

The number of solar panel systems that were connected to the grid also rose sharply last year, reaching 341 MW.

Net-metering installations also rose considerably in 2022, reaching a total capacity of 110 MW, approximately triple the capacity amassed in 2021, when the installed net-metering capacity totaled 38 MW, the preliminary SEF figures showed.

The net-metering boost in 2022 was almost exclusively linked to system installations made for commercial purposes.

A forthcoming subsidy program for roof-mounted solar panel installations is expected to lift solar panel installations to a new record figure in 2023.

Energypress holds Power & Gas Forum: See agenda, speakers

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As the energy crisis evolves into the new normal and power & gas markets are seeking new rules, Energypress organizes for a fourth year the annual Power & Gas Forum on March 22-23 in Wyndham Grand Athens Hotel.
The conference will take place with physical presence and can also be viewed online both in Greek and English.
You can see the conference’s agenda and the speakers list here.

https://powergassupplyforum.gr/

 

Live coverage of energypress Power & Gas Forum here

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The Power & Gas Forum, organized by energypress for a fourth year and taking place March 22 and 23, 2023 at the Wyndham Grand Athens hotel, offers a rich agenda over its two days. The entire range of energy-sector topics will be covered with participation from over 70 prominent speakers. Simultaneous interpretation from Greek to English will be offered.

Watch the conference through this link:

“https://services.livemedia.gr/embed/live/7992?start=0”

 

 

 

Ministerial decision imminent for RES-related standalone battery support

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The energy ministry is believed to be just weeks away from finalizing a ministerial decision needed to establish a competitive procedure concerning investment and operational support for RES-related standalone batteries.

The energy ministry is expected to announce its required ministerial decision in April, ahead of a first auction planned to take place no later than June.

The ministerial decision will detail the number of auctions to be held and their scheduling, as well as the type of auction to be adopted, among other key matters.

They include the starting price of auctions; prerequisites, including minimum capacity requirements, that will need to be met by RES projects in order to seek investment and operational support for RES-related standalone batteries; as well as the stage of licensing maturity that will be required of auction participants.

As has already become known, auction participants will submit, as their bids, expected annual revenues of projects (in terms of euros per MW of storage capacity). Investors seeking lowest tariffs for their projects will prevail.

An upper capacity limit of 100 MW per project is expected to be set. Also, companies and any of their subsidiaries will be limited to project support not higher than 25 percent of the overall capacity being auctioned.

Short-term EU action curbing crisis effects sought by Greece

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European Commission proposals for electricity market reforms as well as gas supply security measures ahead of next winter will be the focus of attention at a European Council summit of EU leaders later this week, planned for March 23 and 24, as well as at an upcoming EU Energy Council, scheduled for March 28.

According to energypress sources, Greek officials are approaching these sessions with a mostly favorable view of the European Commission’s proposed framework of measures, while pointing out, however, that they do not offer solutions but rather set defense strategies in the event of further crises.

Given this stance, Greek officials, at both upcoming meetings, intend to support the need for short-term measures aimed at curbing the effects of the energy crisis and contend that the European proposals are too timid.

As for the segment of upcoming talks to focus on European electricity market reforms, Greek officials will promote the establishment of a European fund, which they believe is necessary to provide state guarantees for CfDs and other European Commission proposals such as hedging.

The absence of such support would limit the benefits of measures proposed by Brussels to EU member states possessing sufficient fiscal leeway and marginalize all other member states, Greek officials believe.

The possibility of extending, into next winter, a voluntary objective for reducing gas demand will be among the topics to be discussed at next week’s EU Energy Council. The European Commission has proposed extending this voluntary goal to March, 2024. It was originally set to run from August 1, 2022 to March 31, 2023.

Suppliers cut prices for April, PPC rate at 16.5 cents/KWh

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The country’s electricity suppliers have announced a latest round of tariff reductions for April, power utility PPC, the market’s dominant player, leading the way with a greater-than-expected 16 percent price reduction.

PPC set an April rate of 16.5 cents per KWh for monthly consumption of up to 500 KWh, down from 19.5 cents per KWh for March, as well as a rate of 17.7 cents per KWh, down from 20.7 cents per KWh in March, for monthly usage exceeding 500 KWh.

Based on recent law, electricity retailers in Greece are required to announce their tariffs for each forthcoming month by the 20th of every preceding month.

The retail price reductions for April, which had been anticipated as a result of falling wholesale electricity prices of late, will essentially not lower energy costs for users, but the government, which has been providing subsidies throughout the energy crisis to limit residential tariffs to levels of between 15 and 16 cents per KWh, will be able to greatly decrease, or even zero out, its outlay on subsidies and keep tariffs at a level it desires.

Independent supplier Heron announced an April price rate of 15.68 cents per KWh, including a punctuality discount, for its Generous Home package. The supplier’s rate without the discount was set at 19.6 cents per KWh.

Elpedison announced a price of 19.5 cents per KWh for its Electricity HomeDay package as well as a 12.5 cents per KWh for its Elpedison Economy offer.

Protergia set an April rate of 19.98 cents per KWh, regardless of usage level, for its residential Energy Save offer, as well as a price of 13.98 cents per KWh for its residential MVP Reward package, including a punctuality discount, or 19.98 cents per KWh without this discount.

Elsewhere, NRG’s rate for its On Time offer was set at 13.94 cents per KWh, when factoring in a punctuality discount, or 16.4 cents per KWh without the discount.

Volton’s rate for April is 16.4 cents per KWh with a punctuality discount and 17.26 cents per KWh without.

Fysiko Aerio set an April price of 10.4 cents per KWh, including a punctuality discount, for its Maxi Free package, whose rate is 13.9 cents per KWh without the discount.

Volterra set a rate of 18.8 cents per KWh. Watt & Volt announced a price of 19.95 cents per KWh, regardless of consumption level, for its Zero package, as well as a rate of 14 cents per KWh, plus a fixed charge of 3 euros per month, for its Value package.

Zenith set an April rate of 16.4 cents per KWh for its Power Home Basic package. Elin set a rate of 14.8 cents per KWh for its Power On! Home Comfort offer.

Akunis to ANA: Greek-Israeli relations are ‘strategic and stronger than ever’

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Greece and Israel are preparing a new Memorandum of Understanding designed to encourage private-sector collaboration in finding innovative solutions to issues that are becoming urgent for the Mediterranean region due to the climate crisis, Israeli Minister for Science and Technology Ofir Akunis revealed in an interview with the Athens-Macedonian News Agency released on Sunday.
He said that such collaborations between the scientific and business communities of the two countries, focusing particularly on agri-technology, food technology and water management, were the purpose of his visit to Greece.
Referring to the broader context of Greek-Israeli bilateral relations, he noted that these were “strategic and stronger than ever” and said that cooperation between the two countries will be excellent, regardless of which government is elected, as it has been for the last decade with all governments.
Akunis also referred to his plans to visit the northern Greek city of Thessaloniki and participate in a memorial march for the Holocaust held on Sunday, expressing the Israeli side’s gratitude for the creation of a Holocaust Museum in the city.

Greek mining enterprises to invest 300-400 million euros in 2023

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Greek mining enterprises are planning investments worth 300-400 million euros for this year, focusing on sectors such as digitization of production, the supply of new machinery equipment and security, President of the Association of Mine Enterprises Athanasios Kefalas said on Tuesday.

Addressing a special event in Athens, Kefalas noted, however, that problems such as energy cost, regulatory hurdles and lack of workers create obstacles in the further development of the sector in a period when a Green Deal leads to an increase of demand in mineral sources offered by Greece.

He said that in 2022, the cost of electricity power grew by 160% and the cost of liquid fuel by around 40%, raising production costs by 25-50%. Kefalas urged the lifting of regulatory and technical hurdles for the implementation of a stable electricity price for the mining industry, and introducing a 50% return on a special fuel tax. He reiterated there were several-year delays in environmental licensing, and repeated a demand for completing a special land framework for mineral raw materials.