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Enaon EDA plans €61.4m digital upgrade of gas meters by 2028

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Gas distribution network operator Enaon EDA has incorporated a 61.4 million-euro investment plan into its new five-year development plan covering 2024 to 2028 to replace conventional natural gas meters with upgraded digital versions.

Enaon EDA, as the new single distribution network operator under the umbrella of the Italian energy group Italgas has been named, plans to install 568,980 smart meters by 2028 for existing and new connections in various parts of Greece.

The 61.4 million-euro upgrade to smart meters is part of the company’s wider 769 million-euro development plan covering 2024 to 2028.

Enaon EDA, according to the company plan, intends to install just over 184,000 smart meters in the wider Athens area, the budget of this initiative worth 22.45 million euros. It also plans to install just under 270,000 smart meters in the Thessaloniki area at a cost of 26 million euros, as well as nearly 115,000 smart meters in the Thessaly region, this segment of the plan budgeted at 11.4 million euros.

IPTO requests special terms for swifter project development

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Power grid operator IPTO, seeking to counter delays faced by projects of public interest, has requested special terms from the energy ministry that would ensure swifter environmental permitting and expropriation procedures for grid projects as well as, wherever necessary, permission to use seashore, land and marine areas.

IPTO’s time frames for projects and Greece’s wider energy transition are being jeopardized by obstacles, primarily environmental permitting, forcing the operator to regularly update its delivery dates.

IPTO’s new ten-year development plant, covering 2025 to 2034, includes over 80 projects of various scale. Completion dates for many of these projects have been pushed back by one to two years.

The energy ministry’s leadership promised to examine IPTO’s request for special terms that could accelerate the progress of projects during a meeting between the two sides last week, sources informed.

Electrical grid project delays are becoming increasingly urgent as energy transition goals set for 2030 are just six years away and loftier renewable energy targets are being set.

 

Electricity suppliers’ windfall earnings estimated at €250m

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A finalized figure, expected imminently, on windfall earnings gained by electricity suppliers between August, 2022 and the end of 2023, the period during which energy-crisis measures were implemented, is projected to reach roughly 250 million euros, energypress sources have informed.

Virtually all windfall earnings will go towards partially covering amounts owed by municipal water supply and sewerage companies (DEYA) to power utility PPC.

RAAEY, the Regulatory Authority for Waste, Energy and Water, completed its windfall earnings calculations last month and has informed the energy ministry of its results.

Authorities still need to determine and factor in a normalization coefficient, which is expected to produce the aforementioned windfall earnings sum of approximately 250 million euros.

The normalization coefficient is designed to adjust megawatt-hours suppliers are charged monthly – based on their declarations submitted to the Energy Exchange – with actual megawatt-hours they have used.

Once this coefficient is finalized, the energy ministry will be able to validate the windfall earnings sum and proceed with its recovery from electricity suppliers.

 

Inaugural Guarantees of Origin auction expected in June

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RES market operator DAPEEP is expected to stage an inaugural Guarantees of Origin auction in June, following anticipated approval of this competitive procedure’s terms in April by RAAEY, the Regulatory Authority for Waste, Energy and Water. A second round of public consultation was recently completed.

The intermediate period between RAAEY’s expected approval of the auction terms next month and the staging of the inaugural auction will be needed by participants as GO auctions will emerge as a completely new procedure for the Greek electricity market.

Following their launch, GO auctions are planned to be repeated every three months.

DAPEEP, the RES market operator, has yet to decide on the quantity of GOs to be offered to participants through the first auction. The operator will make a decision after discussing details with RAAEY.

Auctioning off green certificates issued in 2023 is believed to be one option under consideration. If implemented, green certificates issued so far in 2024 would be placed for auction from the second GO auction onwards.

GOs representing a total renewable energy capacity of 22.4 TWh were issued in 2023, of which 4.44 TWh can be auctioned off at the upcoming inaugural GO session, Maria Koulouvari, Administrator of Renewable Energy Sources and Guarantees of Origin at DAPEEP, told the recent Renpower Greece 2024 conference.

 

Guarantees of origin market set for growth trajectory, projected to reach €3.7bn by 2030

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Aurora Energy Research projects that the Guarantees of Origin (GO) market will soar to 3.7 billion €in 2030 alone.

• Report underscores significant growth in both demand for and supply of GOs, although the regulatory environment will be a key determinant of how the market evolves.

• Shifting to a system of hourly GOs could increase revenues for renewables assets from GOs by at least 33%.

OXFORD (AURORA ENERGY RESEARCH)—The Guarantees of Origin (GO) market is expected to grow substantially, with estimates projecting reaching a size of 3.7 billion € by 2030 and GO cancellations expected to increase by more than 80% since 2022, a comprehensive study by Aurora Energy Research, the world’s largest dedicated power market analytics provider, suggests. 

While these certificates are primarily sourced by electricity consumers as part of their strategic efforts or green targets, Aurora assesses that GOs will also play a pivotal role in facilitating the transition to green hydrogen. Demand is particularly strong from corporate off-takers in Germany, France, and Italy, which together comprised 50% of total GO cancellations in Europe in 2023.

On the supply side, Aurora identified a persistent undersupply of GOs in key markets including Germany, the I-SEM, Belgium and selected other markets, primarily attributed to local regulations that impose restrictions on subsidised renewable assets, preventing them from issuing and monetising GOs. At the same time, Aurora expects the share of GOs issued by hydropower assets—previously the largest provider of low-cost GOs to consumers across Europe—to drop from around 60% at present to 35% by 2030, as more renewables issuing GOs come online elsewhere in Europe. 

Ryan Alexander, Research Lead at Aurora Energy Research, emphasised:

“We expect GOs to only gain importance over the coming years, as they are the EU’s main instrument to track the origin of electricity, and demand for them is growing. At the same time, there are deep regulatory and commercial uncertainties in this market, which will make it challenging for renewables developers and off-takers alike to navigate over the coming years.”

The future of granular GOs

Granular hourly GOs are crucial for accurate electricity usage tracking and green hydrogen production. EU regulation requires hourly GOs by 2030 as one of three ways in which domestically produced hydrogen can be claimed as green, making their implementation a central component of the energy transition. Jannik Carl, Research Associate at Aurora Energy Research, commented:

“If markets were to shift to a system of hourly and local GOs, revenues for Renewable Energy Systems operators could increase. When modelling Spain in 2030, we found a potential increase of GO revenues across technologies of at least 33% compared to the current annual system.”

In 2030, the Spanish market hourly GO prices are estimated to be 2.5 times as volatile as Day Ahead market prices in the same period, highlighting the risk to off-takers of committing to match 100% of their load profile to green generation on an hourly basis without a proper procurement strategy in place.

The benefits of high hourly GO prices in Spain would accrue to all types of renewables assets but particularly to hydroelectric assets, Aurora assesses, as they can more closely match the average electricity demand profile. As neither wind nor solar assets can flexibly adjust their production patterns, this highlights the role storage technologies could play in a world demanding 24/7 certification of green power consumption to reduce volatility.

Rebecca McManus, Senior Research Associate at Aurora Energy Research, commented: 

“By opening up the GO market to batteries, regulators could create new revenue streams for battery asset owners, while driving costs down for consumers in the transition to 24/7 green power.”

 

Small-scale PVs a risk for grid stability, switch resets needed

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Energy-sector authorities have decided to move ahead with legislation requiring small-scale PV producers to make switch-system adjustments that would prevent their PVs from being disconnected from the distribution network as a result of voltage changes.

Small-scale PVs linked to the distribution network have reached a total capacity of roughly 7.5 GW, making them crucial for grid stability.

Power grid operator IPTO officials have underlined that the matter needs to be dealt with urgently.

At a meeting earlier this week, officials of the energy ministry, RAAEY, the Regulatory Authority for Waste, Energy and Water, power grid operator IPTO, and distribution network operator DEDDIE/HEDNO agreed to push ahead with the legislative revision.

Once implemented, it will require PV producers to have their system switches reset so that their PVs could tolerate voltage changes and not be disconnected from the distribution network.

According to IPTO, switch resetting is a simple procedure that can be performed in just a few minutes by technicians.

Enaon EDA plans €769m in new gas network projects over 5 yrs

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Enaon EDA – formerly the gas distributor DEDA – as the new single distribution network operator under the umbrella of the Italian energy group Italgas has been named, has included 769 million euros worth of investments and just over 113,000 new connections in its new five-year development plan covering 2024 to 2028.

The Enaon EDA plan, through which the company aims to further expand the gas distribution network around the country, was forwarded for public consultation yesterday by RAAEY, the Regulatory Authority for Waste, Energy and Water.

Its projects, promising to add 2,625 kilometers of new networks to the country’s gas grid, concern network expansion projects, interconnection projects, network security and reinforcement projects, energy saving projects, digitalization projects and other investments.

Enaon EDA will allot the biggest proportion of the 769 million euros in investments for projects in the wider Athens area, where a sum of 175.2 million euros in investments is planned. Thessaloniki will follow with projects worth a total of 129.1 million euros. Thessaly comes next with investments worth 105.5 million euros.

DEPA Commercial: LNG truck loading fee inhibiting growth

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Gas company DEPA Commercial has objected to gas grid operator DESFA’s proposal for maintenance, in 2024, of an LNG Truck Loading surcharge at last year’s level of 650 euros per load, preferring, instead, lower fees for this service.

DESFA, defending its price-maintenance position in public consultation conducted by RAAEY, the Regulatory Authority for Waste, Energy and Water, noted that a hike of this surcharge would create more obstacles for the LNG Truck Loading service and possibly destabilize the market, while a reduction jeopardize the recovery of related investment costs.

DESFA, as a result, concluded that maintaining the LNG Truck Loading surcharge’s current level would offer stability to the market by enabling users to further test the new LNG Truck Loading service and enhancing market growth.

Expressing its disagreement, DEPA Commercial called for a reduction of the LNG Truck Loading surcharge, stressing it was introduced as a temporary fee that would become permanent if DESFA’s stance on the matter were adopted.

Elaborating further, DEPA Commercial pointed out that the cost burden on users, which is ultimately passed on to consumers in the retail market, would lead to two adverse effects. Firstly, LNG slot-reservation growth would be inhibited and, secondly, LNG market penetration would become more difficult for industrial consumers and others who are distanced from networks and would prefer to stop using higher polluting fuels.

The LNG Truck Loading service was launched last November following a trial run in spring, 2023 with participation from Blue Grid, DEPA Commercial and Motor Oil Hellas.

Energean announces strong full-year results for 2023

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London, 21 March 2024 – Energean plc (LSE: ENOG, TASE: אנאג) has announced its audited full-year results for the year ended 31 December 2023 (“FY 2023“).

Mathios Rigas, Chief Executive Officer of Energean, commented:

“2023 was another transformational year for Energean. We grew production by 200% year-on-year, reached c. 150 kboed peak production and brought NEA/NI online on time and on budget. Despite the challenging geopolitical environment, all of our operations were managed without any impact from the regional conflicts. Since the year-end, the start-up of Karish North and the second gas export riser mean we are now able to utilise the FPSO’s maximum gas capacity and our production guidance illustrates the next step towards our near-term target of 200 kboed. 

“We also had a strong year financially, generating full-year revenues of $1,420 million and adjusted EBITDAX of $931 million. As a result, we have reduced our leverage ratio by 50% to 3x. These strong results coupled with our long-term gas contracting strategy, which underpins our dividend policy, has seen us return approximately $370 million[1] (210 US$ cents/share) to shareholders since our inaugural payment in Q3 2022.

 “We are looking beyond our near-term targets and this is reflected in our new Morocco country entry project and in Italy, where we see a new era for the industry following the annulment[2] of prohibitive laws, thereby releasing previously restricted acreage. We also remain alert to opportunities that fit our key business drivers (paying a reliable dividend, deleveraging, growth, and our commitment to Net Zero[3]) and can move quickly to take advantage when they arise. 

“On sustainability, we are contributing to Israel’s transition away from coal as well as its, and the wider region’s, energy security – helping to meet the growing demand for natural gas. We further reduced our emissions intensity and have now delivered an 86% reduction from our original 2019 baseline. We are also now rated AAA by MSCI[4]. Our Prinos Carbon Storage (“CS”) project will add another pillar and help decarbonise heavy industries in Southeast Europe, in line with our commitment during COP28. 

“Our ongoing success is due to the entire global team working together during what has been a challenging period in the East Mediterranean. I am proud to lead such a diverse and dedicated team and as we continue to grow, our commitment to integrity, corporate sustainability and operational excellence will remain.” 

Operational Highlights

  • First major step-up in production achieved.
    • FY23 production of 123 kboed (83% gas), up 200% year-on-year, primarily as a result of a full-year of production from Karish (Israel).
    • Day-to-day production in Israel continues to be unimpacted by the ongoing geopolitical developments.
    • FPSO uptime (excluding planned shutdowns) was 99%[5] in Q4 2023.
  • Key growth projects complete.
    • The NEA/NI development (Egypt) was completed in December 2023.
    • Karish North and the second gas export riser were brought online in February 2024.
  • Confirmed year-end 2P reserves of 1,115 mmboe, stable year-on-year before produced 2023 volumes and demonstrating material reserves life of around 19 years[6].
  • New gas contract signed in Israel in February 2024.
    • Adds circa $2 billion of revenues over the life of the contract and is in line with the Group’s strategy to secure long-term reliable cash flows.
  • Morocco country entry through farm-in to Chariot Limited’s Lixus and Rissana licences, expected to complete imminently.

Financial Highlights

  • Strong financial performance, underpinned by a full-year of production from Karish.
    • 2023 sales and other revenues of $1,420 million, representing a 93% increase (2022: $737 million).
    • 2023 adjusted EBITDAX of $931 million, representing a 121% increase (2022: $422 million).
    • 2023 profit after tax of $185 million was a significant improvement versus the previous year (2022: $17 million). Profit after tax was negatively impacted by $100 million of deferred tax charges.
    • Group cash as of 31 December 2023 was $372 million (including restricted amounts of $26 million) and total liquidity was $607 million.
    • 50% reduction in Group leverage to 3x (FY 2022: 6x).
    • No immediate debt maturities following Energean Israel’s bond refinancing in July 2023.
  • Q4 2023 dividend of 30 US$cents/share declared on 22 February 2024 and scheduled to be paid on 29 March 2024[7].
    • A total of 210 US$cents/share (approximately $370 million), including the Q4 2023 dividend1, returned to shareholders since maiden payments began.
  • 42% year-on-year reduction in carbon emissions intensity to 9.3 kgCO2e/boe and an 86% reduction since our original baseline year[8], ahead of schedule with the Group’s stated 2019-2025 target.

Outlook

  • 2024 production guidance reiterated at 155 – 175 kboed (production to end-February was 144 kboed; 82% gas), a significant step up towards Energean’s near-term targets.

Production is second-half weighted due to:

  • Peak gas demand during the summer driving maximum gas output from the Energean Power FPSO.
  • Cassiopea (Italy) first gas expected in the summer of 2024.
  • Focused on backfilling the Energean Power FPSO and meeting growing gas demand in Israel and the region.
    • The start of the Katlan (Israel) development will extend the gas production plateau and has potential for exports.
  • New areas of development underway to grow the current business base:
    • Morocco farm-in expected to complete imminently; appraisal well planned for Q3 2024.
    • In March 2024, a court ruling annulled the PITESAI plan and its associated acts in Italy. This ruling[9] has unlocked previously restricted acreage in addition to those already identified and highlighted by Energean.
  • Quarterly dividend payments intended to be declared in line with previously communicated dividend policy.
  • Evaluating all opportunities, with continued capital discipline, that are dividend accretive, meet Energean’s deleveraging targets, achieve its growth objectives and contribute to the Group’s Net Zero target. 

Financial Summary

    FY 2023 FY 2022 % Change
Average working interest production Kboed 123 41 200%
Sales and other revenue $ million 1,420 737 93%
Cash Cost of Production $/boe 11 19 (42%)
Adjusted EBITDAX[10] $ million 931 422 121%
Profit after tax $ million 185 17 988%
Cash flow from operating activities $ million 656 272 141%
Development and production expenditure $ million 487 729 (33%)
Exploration expenditure $ million 57 140 (59%)
Decommissioning expenditure $ million 19 9 111%
31 December 2023 31 December 2022 % Change
Cash (including restricted amounts) $ million 372 503 (26%)
Net Debt $ million 2,849 2,518 13%
Leverage (Net Debt / Adjusted EBITDAX) $ million 3x 6x 50%

 [1] Amounts shown after payment of Q4 2023 dividend, scheduled for 29 March 2024, which is the date upon which payment is to be initiated by Energean.

[2] Unless successfully appealed by the Ministry.

[3] Net Zero by 2050 commitment is for scope 1 and 2 emissions.

[4] Morgan Stanley Capital International.

[5] Uptime is defined as the number of hours that the Energean Power FPSO was operating; the Q4 2023 figure excludes the scheduled 6-day shutdown that occurred in December.

[6] Based upon mid-point of 155-175 kboed 2024 production guidance.

[7] Payment date is stated as the date upon which payment is to be initiated by Energean.

[8] Original baseline year was 2019. In 2023, this was revised to 2022.

[9] Unless successfully appealed by the Ministry.

[10] 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.

Energy groups, industry agree on energy transition issues

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Support for industry expressed by Greek power utility PPC and other major European energy utilities through the recent Antwerp Declaration illustrates a common understanding of existing energy-transition problems, or common acceptance that zero-carbon goals in Europe may be right but roads leading to their achievement are not.

PPC is one of many signatories backing the Antwerp Declaration for a European Industrial Deal. It was presented in February following an agreement between seventy-three industry leaders and has since been endorsed by nearly 570 companies representing twenty industrial sectors, as well as 803 organizations and 186 associations and unions.

Besides PPC’s CEO Giorgos Stassis, the Antwerp Declaration has also been endorsed by CEOs of other energy utilities and companies, including Patrick Pouyanné of TotalEnergies, Luc Rémont of EDF, and Adriano Alfani of the ENI group.

The declaration underlines the commitment of industry to Europe and its transformation and outlines urgent industry needs to make Europe competitive, resilient, and sustainable in the face of dire economic conditions.

Industry’s concerns are justified as, despite the sector’s willingness to invest in new clean technologies, European bureaucracy often acts as a deterrent, forcing some industries to consider establishing new bases beyond the continent.

The declaration has brought together major players across Europe who agree that energy costs on the continent are too high and exacerbated by too many regulatory burdens. The consensus expressed by these signatories highlights that Europe is right in pursuing zero carbon targets, but doing so by de-industrializing is wrong.

IPTO lists updated completion dates for grid links in 10-yr plan

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Power grid operator IPTO has revised its time frames for the completion of a series of international grid interconnections, as well that of a project to connect Crete and Athens, in a draft of its new ten-year development plan covering 2025 to 2034, forwarded for public consultation yesterday.

Revisions included in the plan’s draft include the addition of a further two years for the delivery of a second Greek-Turkish electrical grid interconnection, previously set for completion in 2029 but now pushed out to 2031.

The completion target for a second Greek-Albanian grid interconnection was changed to 2031 from 2030.

Delivery of an additional Greek-Italian grid interconnection has been set for 2031. IPTO’s previous development plan did not include a completion date for this project, which indicates significant progress was achieved during the intermediate period.

A project to interconnect the Greek, Cypriot and Israeli grids has been set a 2029 completion date for its Greece-Cyprus segment, an 898-km stretch, from 2027 in the previous plan. IPTO was placed at the helm of this project only last year.

All required studies have been completed for this project’s Greece-Cyprus segment with 657 million euros in support funds provided by the Connecting Europe Facility.

The completion date for an upgrade of the Greece-North Macedonia grid interconnection has remained unchanged at 2030.

The IPTO development plan’s international section also includes two new projects, a Greek-German grid link dubbed the Green Aegean Interconnector, and a Greek-Saudi Arabian grid link named the Saudi Greek Interconnector.

New RES units total 1.5 GW over just 5 months; NECP target exceeded

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Renewable energy facilities representing a capacity of 1.5 GW were launched over a period of just five months between early June and November last year, data provided by power grid operator IPTO data has shown.

RES facilities in operation totaled 12.2 GW in early November, 2023, up from 10.65 GW in early June, 2023, the IPTO data showed.

The November tally included 5.06 GW in wind farms and 6.55 GW in solar energy farms. As had been anticipated, solar energy farm launches recorded a bigger increase, which reached 1.28 GW, compared to five months earlier.

Wind farm capacity growth recorded a more modest rise of 261 MW. The remaining 35 MW in increased RES capacity resulted from biomass-biogas, small-scale hydropower and CHP installations.

RES facilities possessing connection terms totaled roughly 15.5 GW in November, 2023, which, combined with 12.2 GW in RES facilities already operating by that month, results in an overall RES portfolio capacity of 27.7 GW.

This figure greatly exceeds the country’s 2030 target for installed RES capacity, set at 23.5 GW in the revised National Energy and Climate Plan.

 

Ministry multi-bill filled with energy sector initiatives

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An energy ministry multi-bill to be forwarded for consultation imminently, possibly this Friday, following numerous revisions, includes at least twenty energy-sector provisions.

These include a new legal framework for boosting grid capacity; Apollo, a 20-year RES support program envisaged to offer solar-energy output to low-income households and local government organizations; a revision facilitating a new combined heat and power (CHP) plant planned by power utility PPC at a former lignite-fired facility in Kardia, northern Greece; an SVP for floating solar farms as a pilot project, beginning with 10 MW at sea and 8 MW in lakes and reservoirs; as well as an SVP for the development of offshore wind farms, an effort overseen by EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company.

The multi-bill also includes pending issues announced last year, such as a new electricity theft framework; and a revised universal electricity supply service – currently offered by the top five electricity suppliers, based on market share, as a last-resort service to non-punctual consumers who have been blacklisted by suppliers – to be limited to four months.

Ministry, RAAEY, IPTO discuss grid-connection cost coverage

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Officials of the energy ministry, RAAEY, the Regulatory Authority for Waste, Energy and Water, and power grid operator IPTO held a meeting yesterday to discuss details concerning a ministry plan requiring electricity producers (RES producers, gas-fueled power stations) to cover half the amount of their grid connection costs.

The focus of the meeting was on IPTO as distribution network-related amounts, which concern DEDDIE/HEDNO, the distribution network operator, are minimal.

RAAEY officials reiterated concerns that the energy ministry’s formula could force IPTO to significantly increase network usage surcharges.

However, according to the ministry, a formula requiring grid users to cover 50 percent of grid connection costs does require further examination as this approach may end up being regarded as incorporating state aid and could trigger complaints to the European Commission, which has not approved the plan.

The energy ministry will submit a related enquiry to KEMKE, the finance ministry’s Central State Aid Unit. Should this agency deem that the energy ministry’s formula represents a form of state aid, the ministry could inform Brussels for clarity on whether its plan breaches EU law.

Great Sea Interconnector drawing US, UAE fund interest

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Latest developments concerning the prospective Great Sea Interconnector, a 1.9 billion-euro project planned to link the power grids of Greece, Cyprus and Israel, indicate that investment interest is growing.

Officials of Greek power grid operator IPTO, promoting the project through an SPV, are expected to hold talks in Nicosia today with representatives of Abu Dhabi-based fund TAQA, one of the key players examining the prospect of becoming a stakeholder in the Great Sea Interconnector.

This UAE fund has been conducting due diligence for months. Today’s meeting between IPTO and TAQA officials in Cyprus suggests TAQA is seriously considering to join the Great Sea Interconnector consortium.

In addition, IPTO is preparing to forward the consortium’s terms to Israeli fund Aluma. The two sides had signed a Memorandum of Understanding last year in view of this fund’s entry into the project.

Without a doubt, growing interest for involvement in the Great Sea Interconnector expressed by US state fund Development Finance Corporation ranks as standout news.

Following up on talks with Greek deputy energy minister Alexandra Sdoukou in Washington last December, DFC’s leadership is believed to have expressed interest to participate in the project by either becoming a stakeholder with a 50 million-euro sum or by contributing to its financing.

Though DFC has not yet gone into details, US state participation in the project would align with American energy security interests in the eastern Mediterranean region and also boost the project’s geopolitical standing.

Variable yellow tariffs also lower-cost option in February

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Variable yellow tariffs offered by electricity suppliers through the country’s new color-coded tariff system, introduced January 1 to simplify price comparisons, were lower-cost options than their variable green-tariff alternatives in February, as was the case a month earlier – with the exception of one supplier.

Yellow and green tariffs are both variable tariffs, but the former represent a lesser risk for suppliers as their levels are set at the end of each month.

Variable yellow tariffs offered by electricity suppliers in February ranged between 10.9 cents and 13.43 cents per KWh, averaging 11.86 cents per KWh.

Variable green tariffs were 10 percent higher in February, averaging 13.1 cents per KWh. They ranged between 11 cents per KWh and 14.65 cents per KWh.

As a result of this price gap between green and yellow variable tariffs, the majority of consumers establishing new supply agreements are opting for yellow tariffs.

Consumers were given until the end of 2023 to choose tariff category or be automatically placed in the green tariff category on January 1, when the new color-coded tariff system was introduced. A fixed blue tariff category was also introduced.

Despite the slightly lower cost of yellow variable tariffs, green tariffs have remained low enough to keep consumers settled.

Copelouzos holds Balkan, Italy talks for GREGY Interconnector

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Copelouzos group president Dimitris Copelouzos has been involved in a series of meetings with leading energy-sector officials in the Balkans and Italy to explore the level of interest by energy groups and funds for investments concerning the Greek-Egyptian GREGY Interconnector and development of 9.5 GW in RES projects in Egypt, sources have informed.

Meetings held by the Greek entrepreneur with the energy ministers of Bulgaria, Romania and Serbia in their respective capitals, as well as in Italy with Italian Deputy Prime Minister Matteo Salvini and top-ranked officials of Italian energy company Enel, have indicated a strong interest by all for renewable energy production from Africa’s north, as well as the establishment of PPAs.

The Copelouzos group recently founded a subsidiary named Elica to  promote the Greek-Egyptian GREGY Interconnector, a link that would facilitate transportation of Egyptian RES production to Europe.

The next few months will be crucial for GREGY Interconnector’s progress on a technical level as documents for related tenders are currently being prepared. Tenders will be staged to select consultants and designers who will undertake four main studies estimated to cost between 35 and 40 million euros, of which 50 percent will be sought through EU funds.

The series of tenders, expected to begin in April and May, will include a technical study, a geophysical and geotechnical study, as well as a seabed mapping study, the most challenging of all, covering a 954-km route in the eastern Mediterranean.

Highlighting the significance of the GREGY Interconnector and RES projects to be facilitated by this link, the EU and Egypt have issued a joint statement.

“Given the new energy and geopolitical reality, the EU and Egypt recognize the need to strengthen energy security, and, therefore, have agreed to intensify their cooperation with a focus on renewable energy, energy efficiency, as well as other low-carbon technologies, building on Egypt’s significant potential for more efficient expansion of renewable electricity generation through projects such as the GREGY Interconnector,” the joint statement noted.

Consumer switching measures forwarded for consultation

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New measures designed to restrict consumers with unfavorable payment records from switching electricity suppliers are scheduled to be forwarded for public consultation this week by RAAEY, the Regulatory Authority for Waste, Energy and Water.

Consumers, both residential and non-residential, identified as being responsible for overdue electricity bills by at least two suppliers would be denied the right to switch supplier, according to one of the measures.

The other measure to be forwarded for public consultation would enable power suppliers to instruct the network operator to deactivate consumer power meters as a result of overdue electricity bills.

LEITWIND: Wind Repowering and Custom Solutions

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LEITWIND, a brand owned by LEITNER Spa and part of the prestigious HTI Group (High Technology Industry), stands as a leader in the Megawatt-class wind turbine sector (from 250 to 3,000 kW). Its specialization extends to custom design of wind farms for small-scale installations, as well as community self-consumption projects and small/medium enterprises, with the aim of reducing energy consumption costs.

Thanks to its constant customer-oriented approach and its range of products with proven technological efficiency, LEITWIND boasts over 400 wind turbines worldwide and has twenty years of experience in the sector. This approach has also allowed the company to develop consolidated expertise for installations on islands and remote sites, as evidenced by the repowering project on the island of Guadeloupe in the Caribbean. Four years ago, in this picturesque location, six LEITWIND LTW80 turbines of 1.65 MW each, belonging to the Typhoon class designed to withstand Caribbean hurricanes, were installed, representing a technological and logistical challenge for the company’s technicians.

The debut in Italian islands began in the summer of 2021, when LEITWIND installed its first wind turbine in Sardinia: the LTW77 plant (configured as 0.95 MW hh65m) is located in Luras (SS), northeast of the region.

This year will bring the installation of the first small wind farm consisting of 3 LTW90 model wind turbines with a nominal power of 1 MW in Sicily, the largest of the Italian and Mediterranean islands. Investments in Italy’s islands continue: another contract has just been signed for an installation in Sardinia, also in the province of Sassari. In this case, it involves the LTW90 model, which represents the company’s flagship product. The LTW90 model, available in configurations from 500 to 2,000 kW, is the flagship of the LEITWIND product range because, thanks to its large rotor surface, this model ensures high energy production even in areas characterized by low wind speeds.

Renpower Greece 5th edition to be held March 21

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The fifth edition of Renpower Greece – Powering Ahead with BIG RES & Storage Plans, will be hosted by Euroconvention Global in Athens on 21 of March. The conference will focus on the importance of further developing and understanding the potential of the Greek renewable energy market and the innovative technologies that will enable the energy transition.

As a cornerstone of the Greek energy conferences calendar, RENPOWER Greece will continue to gather key stakeholders to discuss and learn the flourishing landscape and plenty of opportunities to succeed in the Greek energy market.

Greece claimed the spot number 5 in the European PPA Market Outlook 2024 of Pexapark, a market intelligence company specialized in renewable energy, entering for the first time ever in the top 10 for contracted capacity. Positioning itself as an attractive market for renewables with high solar exposure and favorable wind patterns, Greece presents significant potential for harnessing these renewable energy sources while its strategic location within the EU opens opportunities for cross-border energy trade and collaboration.  

Agenda & topics: Key-Drivers Leading the Greek Energy Transition – Regulatory Framework & Tenders –  Project Development – Power Generation and Related Technology – Energy Storage Systems (ESS) – Carbon Capture, Utilization and Storage (CCUS) –  Green H2 Production and Role of Natural Gas as a Transition Fuel – Access to Capital to back RES & Storage Projects

Amongst the invited speakers, include:

-Stefanos Manias, Member of the Board, Regulatory Authority for Energy, Waste & Water (RAEWW)

-Vasilis Gregoriou, Chief Executive Officer, Advent Technologies

-Maria Koulouvari, Director, Renewable Energy Sources Operator & Guarantees of Origin (DAPEEP)

-George Daskalakis, Head of New Technologies, Directorate General of Strategy, Motor Oil

-Lucia Dólera, Business Development Manager BESS, Jinko Solar

-Stelios Loumakis, President, Hellenic Association of Photovoltaic Energy Producers (SPEF)

-Panos Kefalas, Lead Expert for SEE, Aurora Energy Research

-Miltos Aslanoglou, Director-General, Hellenic Association of Energy Suppliers

-Petra Zelenická, Market Analysis Manager, JA Solar

-Thomas Stavrou, Country Manager, Valorem Greece

-Goran Erceg, Industry Service Line Manager, Bureau Veritas

-Spyridon N. Economou, Director General, Eunice Hydrogen Technologies

-Panagiotis Panousos, Energy Transition Senior Manager, Hellenic Gas Transmission System Operator (DESFA)

-Emmanouil Kalaitzakis, Strategy and Business Development Director, Hellenic Energy Exchange – EnEx

For more information, please contact the organizers at: administration@euroconventionglobal.com

Event website: https://euroconventionglobal.com/event/renpower-greece-2/

Block 2 license, west of Corfu, granted 12-month extension

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EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, has granted a 12-month extension, until March, 2025, to a hydrocarbon exploration license held by Energean and Helleniq Energy, formerly Hellenic Petroleum (ELPE), for offshore Block 2, west of Corfu and reaching the marine border with Italy.

The extension was granted following a request submitted by Energean, head of the two-member consortium exploring Block 2, to allow more time for the establishment of a land-based logistics base.

Meanwhile, processing of 3D data collected at Block 2 by geophysical services company PGS on behalf of the consortium is nearing completion, energypress sources informed. Signs to date are promising, indicating that drilling at the designated marine area is highly likely.

The two consortium members are expected to decide on whether to explore the offshore plot further over the next 12 months. If not, Energean and Helleniq Energy will be required to return their license to the Greek State.

Hydrogen, CCS development concerns expressed by officials

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The country’s planned regulatory framework and financial support for development of the hydrogen sector and a CCS supply chain lack realism and flexibility, market players have protested.

These complaints were directed towards the Greek government and the European Commission as a Brussels task force and top-ranked energy ministry officials continue talks on pending issues ahead of Greece’s application for a fourth installment of Recovery and Resilience Facility funds.

Giorgos Alexopoulos, deputy CEO at Helleniq Energy, formerly named Hellenic Petroleum, told an annual RRF conference that EU policy on the regulatory framework for hydrogen development is flawed, making production of hydrogen almost impossible beyond 2030.

He attributed this concern to a green hydrogen regulation requiring RES participation in national grids to be at a level of over 90 percent.

“This requirement places in doubt green hydrogen production almost anywhere in Europe, except for the Nordic countries,” Alexopoulos supported, calling on the European Commission to show more flexibility on the matter, a stance that was backed by Johannes Luebking, head of the visiting RRF task force.

Failure to resolve the issue will delay the hydrogen sector’s development and its penetration of natural gas networks, Alexopoulos warned.

Greece has committed to having prepared a regulatory framework for hydrogen by June, one of the requirements set if the country Greece is to secure 795 million euros in financial support for energy projects through REPowerEU, bolstering the preceding RRF initiative.

Retail electricity prices below EU average in first half of ’23

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Retail electricity price levels in Greece were well below the EU average in the first half of 2023, giving the country a 17th place ranking for most expensive low-voltage electricity among member states, Eurostat data has shown.

Greece ended the six-month period with retail electricity prices averaging 233 euros per MWh, compared to the EU average of 289 euros per MWh over the same period.

Calculations for these figures include taxes and other charges, but not subsidies offered to consumers.

The Netherlands topped the list with an average price of 475 euros per MWh in the first half of 2023, while Bulgaria was placed at the bottom end with an average price of 114 euros per MWh.

As for EU member states ranked slightly above Greece, Lithuania averaged 281 euros per MWh, Sweden followed with 269 euros per MWh, Austria was next 265 euros per MWh, Ireland’s average was 248 euros per MWh, and Finland, one place above Greece, ended the first half last year with an average price of 238 euros per MWh.

On the contrary, electricity supply for non-residential consumers in Greece, averaging 213 euros per MWh, was slightly above the EU average of 210 euros per MWh. Even so, Greece’s ranking remained the same, 17th most expensive, for this category.

Romania topped the list of most expensive non-residential electricity with an average of 329 euros per MWh, while Iceland ranked lowest with an average of 78 euros per MWh in the first half last year.

 

Registrations for 5th Power & Gas Forum, March 28, 29, nearing full capacity

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Registrations for the upcoming 5th Power & Gas Forum, a highly influential energypress event scheduled for March 28 and 29, in Athens, at the Wyndham Grand Athens Hotel, are nearing full capacity.

Registrations for the event’s few remaining places may be submitted to https://5opowergasforum.eventsadmin.com/Register.

As always, the event will feature the energy ministry’s leadership and prominent speakers. Sponsorship support by energy-sector companies has been strong, highlighting the event’s stature.

The event’s list of confirmed speakers includes: Thodoros Skylakakis, Energy and Environment Minister; Alexandra Sdoukou, Deputy Energy and Environment Minister; Aristotelis Aivaliotis, the Energy and Environment Ministry’s General Secretary of Energy and Natural Resources; Nikos Tsafos, the Greek PM’s special adviser on energy matters; Athanasios Dagoumas, president at RAEEY, the Regulatory Authority for Energy; Dimitris Fourlaris, RAAEY Vice President for the energy sector; Professors Theodoros Tsakiris, Pantelis Kapros, Pantelis Biskas, Stavros Papathanasiou and Antonis Metaxas; Alex Papalexopoulos, president at ECCO International and key designer of the target model; Alexandros Papageorgiou, CEO at the Greek energy exchange; Manos Manousakis, President and CEO at IPTO, the Greek Power Grid Operator; Giannis Margaris, IPTO Vice President; Anastasios Manos, CEO at DEDDIE/HEDNO, the distribution network operator; Giannis Giarentis, President at DAPEEP, the RES market operator; Maria Rita Galli, CEO at DESFA, the gas grid operator; Barbara Morgante, CEO at Enaon; and Aristofanis Stefatos, CEO of EDEYEP, the Hellenic Hydrocarbon Management Company.

Also taking part are: Victor Papaconstantinou, president at ESAI, the Hellenic Association of Independent Power Producers; Konstantinos Xifaras, CEO of DEPA Commercial; Antonis Kontoleon, president at EVIKEN, the Association of Industrial Energy Consumers; Giannis Mitropoulos, President at ESPEN, the Greek Energy Suppliers Association; Irodotos Antonopoulos, President at ESEPIE, the Hellenic Association of Electricity Trading & Supply Companies; Georgios Kouvaris, President at Heron; Elena Giannakopoulou, Chief Strategy Officer at Greek power utility PPC; Tasos Lostarakos, chief executive at NRG; Dionysis Tsitos, General Manger at Volton; Katerina Sardi, Managing Director and Country Manager for Greece at Energean Oil and Gas; as well as Giannis Karydas and Kostis Sifnaios, both officials at the Copelouzos group.

Panagiotis Ladakakos, President at ELETAEN, the Greek Wind Energy Association, and Panagiotis Papastamatiou, this association’s General Manager; Stelios Loumakis, President at SPEF, the Hellenic Association of Photovoltaic Energy Producers; as well as a host of other participants representing operators, the energy sector’s regulatory authority, agencies, as well as the entrepreneurial and academic worlds also feature on the event’s agenda.

The conference will be held with speakers and participants at the venue. All proceedings will be broadcast live, in Greek and English.

For more on participants, sponsors, the event, plus a rich archive of information from previous Power & Gas Forum events, go to https://powergassupplyforum.gr/

For further information and sponsorship details, contact Maria Delli (2108217446, mariadelli@energypress.gr)

Revisions needed by June for next installment of RRF funds

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Recovery and Resilience Facility milestones set by the European Commission for Greece this year were the focus of discussions between deputy energy minister Alexandra Sdoukou and Brussels officials at a meeting in the Greek capital as the government prepares to submit its application for a fourth installment of RRF funds.

The European Commission’s RRF task force has held a series of meetings in Athens over the past few days with all ministries involved.

Greece’s list of projects seeking financial support through REPowerEU, bolstering the preceding RRF initiative, is worth a total of 795 million euros and includes Exikonomo, a 560 million-euro subsidy program for energy-efficiency upgrades of buildings; a 75 million-euro support plan for hydrogen and biomethane development; a further 75 million euros for a CCS supply chain; and 85 million euros for energy storage systems.

However, revisions, part of the milestones set for the second quarter of this year, will need to be finalized and ratified in Greek Parliament by June before these sums can be extended.

The RRF, a Brussels support initiative introduced during the pandemic, has now reached its midway mark and is scheduled to be completed by August, 2026. Greece is expected to submit its application for a fourth installment of RRF funds in April.

RES units with new PPAs also eligible for fast-track grid links

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An energy ministry legislative revision submitted to Parliament yesterday promises absolute grid-connection priority to RES producers who have established green-energy PPAs with domestic energy-intensive industrial producers and farmers as well as RES projects for which PPAs will be established after the legislative revision has been ratified.

Also, one group of RES units will not be subjected to grid-injection limitations for their output.

Power grid operator IPTO is expected to offer fast-track connection terms to a considerable number of RES facilities.

According to sources, RES projects representing an overall capacity of up to 1,600 MW could secure swifter grid connection terms as a result of the legislative revision.

As noted in the legislative revision, the capacity of RES projects to be given fast-track access to the grid will be determined by a ministerial decision to be issued by the energy ministry 60 days after the legislative revision has been ratified.

Leftover grid capacity for wind and solar energy projects not securing fast-track grid access will be drastically reduced.

This diminished capacity is expected to increase again once measures designed to free up grid capacity have been implemented.

However, these measures, to include greater RES grid-injection cuts and battery additions to mature RES projects with finalized connection terms, are not expected for quite some time, meaning connection terms will be handed out bit by bit to RES units not given fast-track connection terms through the new legislative revision.

Industrial PPAs, offering faster RES connections, in demand

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Industrial PPAs are in demand as a new legislative revision submitted to Parliament yesterday by the energy ministry promises swifter connection terms for RES producers.

The ministry’s proposed amendment includes provisions giving connection-term priority to RES projects that have established, or are set to establish, PPAs for their production with energy-intensive industrial consumers.

Taking into account the grid’s capacity limitations highlights how coveted PPAs have become for RES producers as, once the legislative revision has been ratified, capacity available to these producers is expected to further diminish and make even more challenging their ability to connect new RES projects to the grid.

In comments offered to energypress, a number of market officials admitted no clarity exists as to how easy or not it could become for RES producers to ensure connection terms beyond the legislative revision.

Power grid operator IPTO’s deputy chief Giannis Margaris recently informed that 12.5 GW in RES facilities are currently operating, adding that leeway exists for an additional 6 GW without any saturation issues.

Concerns being considered at present are about the future, as connection terms already issued, along with RES projects in operation, total nearly 30 GW, the IPTO deputy pointed out. The ongoing discussion has to do with the ability to offer connection terms in the future, he pointed out.

 

 

 

IPTO, Nexans discuss Crete-Cyprus grid link details

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An electrical grid interconnection to link the Cretan and Cypriot systems, work on which began last month, was essentially officially launched yesterday at a meeting in Athens between Greek power grid operator IPTO’s leadership and top officials of French multinational cable and optical fiber industry Nexans.

During the session – the first major meeting between IPTO’s leadership and Nexans’ chief operating officer Mathias Bruneau, who led a ten-member team – the cooperation’s principles, as well as project fundamentals, including when deep-sea surveys would commence, the interconnection’s routing and schedule, were all discussed in detail.

Installation of the project’s cable is planned to begin in 2026 and be completed in 2029. The Crete-Cyprus grid interconnection, a project budgeted at 1.2 billion euros, will cover a distance of 898 kilometers.

Just days ago, IPTO, the Greek power grid operator, reached an agreement with its Israeli counterpart to assemble technical teams for a cost-benefit analysis concerning the project’s next stage, to link the Cypriot and Israeli electrical grids.

Energy regulators of both countries will rely on the results of the CBA to divide costs that will be recovered through regulated revenues.

The wider project’s two sections, dubbed the Great Sea Interconnector, planned to link the Greek, Cypriot and Israeli electrical grids, will cover a total distance of 1,208 kilometers and is budgeted at 2.4 billion euros.

 

Suppliers pressured by partial recovery of public service sums

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Distribution network operator DEDDIE/HEDNO has, since April last year, been partially covering monthly public service compensation (YKO) reimbursments entitled by the country’s electricity suppliers, a shortfall putting their budgets under pressure.

This deficit is expected to widen further over the coming months without any specific solution yet in place.

Electricity suppliers are recovering an average of between 60 and 65 percent of amounts they should be receiving, energypress sources have informed.

The public service compensation special account’s revenues have decreased as a result of a drop in wholesale electricity prices and retail electricity tariffs, but outlays subsidizing electricity used by consumers on the country’s non-interconnected islands and by low-income households have remained steady.

The country’s public service compensation special account entered deficit territory for the first time in April last year, and, as a consequence, as foreseen by sector regulations, DEDDIE/HEDNO has, over the past 11 months, been asking electricity retailers to partially cover amounts they should be receiving for public services. This essentially means electricity suppliers are financing public services with their own capital.

Consequently, respective amounts owed to suppliers are adding up to tens of millions of euros, a significant additional burden on their finances.

The public service compensation special account ended 2023 with a deficit of roughly 300 million euros, a level expected to be repeated this year.

The energy ministry is promoting a plan to divide this deficit into three sections so that it may be dealt with over as many years, beginning this year until 2026. The state budget would take on the biggest share, according to this plan, being discussed by the energy and national economy and finance ministries.

 

Grid injection cuts to sharply increase over next two years

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Grid-injection cuts of renewable energy production offered to the grid will increase considerably over the next couple of years as a result of a greater presence of operating renewables combined with relatively slower incorporation of energy storage units to the grid, formulas applied to calculate prospective cuts have shown.

RES grid-injection cuts totaled 228 GW in 2023 but are expected to more than double this year, reaching over 500 GW, before skyrocketing to more than 1.5 TWh in 2025, according to projections, which is unfavorable news for RES producers and consumers, who would both benefit if this output were fully utilized.

A first wave of energy storage units is not expected to be linked to the grid until early 2026, meaning grid operators will have no choice but to dump excess renewable energy production made available over the next two years.

At present, RES facilities in operation offer a total production capacity of between 11.5 and 12 GW, while the market penetration rate of new units entering the grid totals 2 GW, annually, and consists mostly of PVs.

At this rate, RES facility additions to the country’s grid are expected to total roughly 16 GW by 2026.

Over this period, electricity demand is projected to grow modestly, from 49 TWh in 2023 to 49.5 TWh in 2024 and 51 TWh in 2025. Such demand levels will be insufficient to fully absorb the additional RES output expected to be made available over the same period.