PPC results for 2020 out today, analyst projections disagree

Power utility PPC’s financial results for 2020, set to be announced later today, are seen confirming the corporation’s ongoing positive course.

The company is expected to report robust 4Q results for 2020, including an EBITDA figure of 238 million euros, according to Pantelakis Securities, given its performance for the nine-month last year.

Operating expenses have been contained, fuel prices plunged, wholesale electricity prices fell, and the utility’s reliance on its loss-incurring lignite units was further diminished during the nine-month period.

For 2020 as a whole, the analyst projects PPC’s EBITDA will reach 938 million euros, a 180 percent increase compared to the 336.6 million euros posted in 2019, as a result of higher tariffs, lower energy purchase costs and reduced CO2 emission right expenses.

The extraordinary market conditions last year were favorable for PPC, the analyst pointed out, as the pandemic-related reduction of electricity demand enabled the utility to stop operating its high-cost lignite-fired power stations for extended periods.

PPC is currently phasing out its lignite facilities, until 2023, as part of the country’s decarbonization effort. CO2 emission right costs have begun rebounding since December.

Pantelakis Securities expects PPC’s sales to fall by 10 percent in 4Q to a level of 1.191 billion euros, while net profit for the fourth quarter is estimated at 39 million euros.

For 2020 as a whole, total turnover is expected to fall by 4 percent, year-on-year, to 4.71 billion euros and net profit is anticipated to be 53 million euros.

PPC’s net debt for 2020 is seen slipping to 3.5 billion euros from 3.68 billion euros at the end of 2019.

Optima Bank sees a less favorable picture for PPC’s 2020 results, projecting losses of 79 million euros, well below losses of 1.68 billion euros in 2019, and a total turnover reduction of 5.5 percent, to 4.655 billion euros.

 

PPC compensation mechanism, market test talks at crucial stage

The European Commission is expected to show its cards next week on Greece’s quest for lignite compensation mechanisms supporting power utility PPC and the results of a market test concerning the utility’s availability of lignite-produced electricity to third parties.

These issues are expected to be discussed in detail by energy ministry and Directorate-General for Competition officials during a virtual meeting next week, following correspondence as well as a virtual meeting, on March 8, between energy minister Kostas Skrekas and the European Commission’s Vice-President Margrethe Vestager, also Brussel’s Commissioner for Competition.

State-controlled PPC has requested a strategic reserve mechanism for its lignite-fired power stations, still needed but nowadays loss-incurring as a result of higher CO2 emission right costs, as well as compensation for its premature closures of these units, currently being phased out until 2023.

All still appears to be vague on PPC’s market test for third-party access to its lignite-based electricity. The test was completed some time ago, failing to attract any real interest from rival suppliers.

The percentage of lignite-based electricity made available by PPC, initially set at 50 percent of total lignite-fired output and then lowered to 40 percent, is viewed, by third parties, as too small for any real gains.  Brussels has yet to comment on the market test’s result.

 

Emission rights over €42/ton, costing PPC €1.4m per day

Carbon emission rights have risen sharply to record-high levels, reaching 42.28 euros per ton at the end of trading yesterday, an ascent of more than 80 percent compared to last October’s levels of approximately 23 euros per ton.

This relentless upward drive is costing power utility PPC extraordinary amounts. The corporation, maintaining lignite-fired power stations and related mines to ensure grid sufficiency, has spent a total of 152 million euros on carbon emission rights between November, when the target model was launched, and March, according to market data.

Market officials have forecast that carbon emission right prices will rise even further, possibly to levels beyond 100 euros per ton.

PPC’s daily outlay on carbon emission rights, estimated at 1.4 million euros, would increase further if these projections prove to be accurate.

The ascent of carbon emission rights has driven up the cost of lignite-based electricity to levels of approximately 130 euros per MWh.

Despite the participation of lignite units in the Greek market, their elevated operating cost has not been reflected in price levels. Paradoxically, even though the cost of electricity exports exceeds 120 euros per MWh, these exports are being invoiced at a little over 40 euros per MWh, benefitting traders, who are making the most of these low price levels.

 

IPTO study backing PPC lignite compensation bid soon to EC

The energy ministry is preparing to forward to the European Commission a power grid operator IPTO study that underlines the ongoing necessity of the country’s lignite-fired power stations for grid sufficiency.

The IPTO study was requested by energy minister Kostas Skrekas to bolster a compensation request submitted to Brussels by state-controlled power utility PPC as a result of the grid’s ongoing need for lignite units, nowadays loss-incurring facilities due to elevated CO2 emission right costs.

PPC, Greece’s sole operator of lignite units, plans to phase out its lignite units over the next three years as part of the country’s decarbonization strategy.

The energy ministry expects to forward the IPTO study to the European Commission within the next fortnight. Greece is seeking compensation for PPC through a support mechanism for as long as these lignite units remain in use.

Last week, the European Commission began examining whether a similar German compensation request complies with EU rules and should be approved.

European Commission Executive Vice-President Margrethe Vestager suggested that the German plan theoretically complies with Europe’s green energy agreement and its goals.

“Within this context, our role is to safeguard competition by ensuring that compensation for premature withdrawal [of lignite units] is kept to a minimum,” Vestager commented. “The information available at this point is not sufficient to judge.”

EU hesitation to the German plan concerns a number of aspects, including the duration of the compensation period.

PPC to hold back on CO2 cost clause until at least March 31

Power utility PPC, facing rising CO2 emission costs, will not activate a related clause included in low-voltage supply agreements for protection until at least March 31, energypress sources have informed.

Otherwise, the overwhelming majority of the country’s households would soon be subject to significant electricity cost increases as CO2 emission costs have been on the rise over the past four months or so.

State-controlled PPC’s low-voltage supply agreements have included a CO2 emission clause since November 1, 2019.

Yesterday, carbon emission futures were priced at 32.78 euros per ton, slightly below a level of 35.14 euros per ton in mid-January.

CO2 emission costs have risen consistently since first hitting levels of 29 euros per ton in November, 2020.

According to recent forecasts by ICIS, specializing in commodity pricing, the upward trajectory of carbon emission costs will continue over the next three years, averaging 39.24 euros per ton in 2021, before skyrocketing to levels of 46 euros per ton in 2022 and 50 euros per ton in 2023.

PPC’s CO2-cost clause has already been activated for its medium and high-voltage supply.

The corporation plans to reexamine its CO2 clause freeze for low-voltage consumers beyond March 31.

Contrary to PPC, independent suppliers have incorporated wholesale market price clauses, not CO2 emission cost clauses, into their supply agreements.

Independent suppliers have activated their clauses as a result of higher balancing market costs. Their low-voltage consumers have consequently faced electricity bill increases ranging from 7 to 30 percent.

Athens ending PPC lignite monopoly, rival suppliers to gain

Newly appointed energy minister Kostas Skrekas has reached an agreement with European Commission authorities to gradually end power utility PPC’s monopoly of lignite-based electricity production, but a Greek effort aiming to secure compensation for the state-controlled electricity company as a result of its need to keep operating lignite-fired power stations for grid sufficiency will now be treated as a separate issue, reducing the probability of a successful compensation request.

The ministry, under Skrekas’ predecessor, Costis Hatzidakis, had bundled the compensation request with the lignite antitrust case, insisting Athens would only move ahead with the PPC lignite monopoly case – by staging a market test as a first step towards offering independent players access to PPC’s lignite-based electricity production – if compensation money was awarded to the power utility.

Greece appears to have sought 180, 150 and 200 million euros in compensation for 2021, 2022 and 2023, respectively.

The country’s lignite antitrust case has dragged on for 14 years. During this time, lignite has lost its advantage as a lower-cost energy source as result of high CO2 emission right costs. Even so, Brussels has kept the issue on the negotiating table, often attaching tough proposals to the matter.

Under the lignite monopoly agreement just reached between the energy ministry and Brussels, the power utility, through bilateral contracts, will offer rival suppliers small percentages of its lignite-based electricity production at prices slightly below day-ahead market prices over a three-year period.

These electricity amounts will gradually diminish over the three-year period as PPC plans to phase out virtually all of its lignite-fired power stations by 2023 as part of the country’s decarbonization effort.

The percentage of lignite electricity amounts to be made available to independent suppliers will be based on previous-year production. In 2021, PPC will sell 50 percent of its lignite-based electricity produced in 2020, while in 2022 and 2023, the utility will offer 40 percent of production in the respective previous years.

Given these terms, independent suppliers will be able to purchase a combined total of close to 3 TWh in lignite-based electricity this year and between 2 and 3 TWh in 2022.

Independent suppliers should benefit from the agreement given the wholesale electricity market’s higher price levels of late.

CO2 right prices up 39% in 45 days, adding to wholesale market price ascent

CO2 emission right prices have hit new records, trading at levels of over 30 euros per ton in recent days for a rise of 39 percent over the past month and a half that has contributed to the wholesale market price ascent.

These elevated CO2 right levels peaked on Tuesday, at 32.02 euros per ton, well over a price of 23.05 euros per ton recorded just weeks ago, at the end of October.

The upward trajectory of CO2 emission right costs is also contributing to even higher prices in Greece’s wholesale electricity market.

Last Wednesday, the day-ahead market’s average price exceeded 80 euros per MWh, rising further to 93 euros per MWh hour yesterday.

If CO2 emission right trading prices persist at levels of more than 30 euros per ton, power utility PPC will activate a related wholesale price clause incorporated into its supply agreements.

Besides the increase in CO2 emission right costs, the Greek day-ahead market has followed the upward trajectory of other European markets, where the combination of higher demand and deteriorating weather conditions is pushing price levels higher.

According to Greek energy exchange data for today’s day-ahead market, the price will average 82.31 euros per MWh, peaking at 114.1 euros per MWh and dropping as low as 44.38 euros per MWh.

 

Consumers hit with tariff hikes of over 20% in low, mid-voltage

Sharply higher wholesale electricity prices registered over the past five weeks or so in the energy exchange’s new target model markets have, to a great extent, been quietly passed on by suppliers to consumer tariffs in the household, business and industrial categories, without any related announcements  from suppliers.

Price hikes by electricity suppliers have applied to approximately 35 percent of total electricity consumption, during this period, while tariff hikes have exceeded 20 percent in the low and mid-voltage categories.

In the low-voltage category, suppliers have activated clauses enabling tariff increases when wholesale price levels exceed certain levels.

Very few independent electricity suppliers, both vertically integrated and not, carry fixed-tariff agreements in their portfolios, exposing most consumers to wholesale electricity price fluctuations.

On the contrary, power utility PPC, representing roughly 65 percent of overall consumption, does not include wholesale price-related clauses in its supply agreements, meaning its tariffs have remained unchanged over the past few weeks.

Instead, PPC includes clauses linked to emission right prices in international markets. These have remained relatively steady in recent times.

Even if wholesale electricity prices happen to deescalate in the next few weeks, a likely prospect, some latency should be expected in any downward tariff adjustments by suppliers.

Numerous consumers have lodged complaints with RAE, the Regulatory Authority for Energy, over the tariff hikes by suppliers. Complaints by suppliers against energy producers setting excessively high prices in target model markets have also been made.

PPC energy outlay falls €886m, key to strong 3Q results

A decreasing reliance on lignite-fired power stations, nowadays an extremely costly generation option as a result of high-priced CO2 emission rights; lower wholesale electricity prices; and a drop in diesel and natural gas prices reduced power utility PPC’s energy expenses by 885.6 million euros in the nine-month period, to 1.4 billion euros from approximately 2.1 billion euros in the equivalent period a year earlier, the power utility has reported.

This cost reduction, spearheaded by chief executive Giorgos Stassis and his administration, played an important role in favorable results announced yesterday.

PPC’s liquid fuel expenses fell by 33 percent to 357.5 million euros during this year’s nine-month period as a result of the corporation’s lower liquid fuel-based generation as well as lower mazut and diesel prices.

The nine-month natural gas outlay for PPC also fell significantly, by 41.8 percent, to 206 million euros from 353.7 million euros, as a result of a 42.4 percent drop in natural gas prices.

PPC’s CO2 emission right expenses fell to 263.1 million euros in the nine-month period, from 406.9 million euros in the equivalent period of 2019, as a result of the company’s reduced emission levels, down to 10.9 million tons from 17.9 million tons.

The power utility’s lignite-based generation during the nine-month period dropped by 50.6 percent year-on-year.

PPC appears to have given space to rival electricity producers in the nine-month period, while increasing its operating profit, despite a retail market share contraction to 69.3 percent from 76 percent a year earlier.

Fast action needed for industrial emission cost offsetting tool

Greek authorities need to act fast in the coming months if industrial producers are to keep receiving CO2 emission-right cost offsetting support as of January 1, 2021 through a European Commission mechanism.

The European Commission has just announced new state aid directives concerning greenhouse gas emissions beyond 2021. EU member states will need to soon forward their offsetting mechanism plans to Brussels.

Certain revisions have been made. Copper has been added to the list of industrial sectors eligible for emission cost offsetting mechanisms, while the textile and fertilizer sectors have not been included.

Besides copper, the steel, aluminium and paper production sectors have also been included on the list.

The European Commission aims to counter non-EU competition, including Chinese, and prevent industry shifts to locations outside the EU.

Pending issues crucial for industrial energy cost savings

A series of issues concerning prospective industrial energy cost savings that have surfaced either as industrial-sector requests or government announcements remain unresolved, creating insecurity within industrial circles.

New industrial electricity tariffs, currently being negotiated but with much ground still to cover for convergence, are at the very top of this list for industrialists.

One energy-intensive industrial producer has already abandoned power utility PPC after rejecting the industrial electricity tariff prices the utility had to offer.

Industrialists also want a public service compensation (YKO) surcharge reduction.

On another front, the sector expects a special consumption tax rate for mid-voltage industrial consumers with annual consumption levels of more than 13 GWh to be equated with the special consumption tax rate offered to high-voltage industrial enterprises. This revision, concerning approximately 170 factories, has been announced by Prime Minister Kyriakos Mitsotakis.

Another matter for the industrial sector concerns exempting major-scale industrial units from a series of additional electricity supply surcharges, in accordance with European Commission directives.

Industrialists also want a special consumption tax exemption on electricity used for mineral processing in cement and glass production, which would align Greek law with an EU directive from 2003.

The industrial sector is also anticipating a new mechanism to offset CO2 emission right costs.

PPC CO2 emissions down 71.1%, lignite-fired output fades

Power utility PPC’s CO2 emissions plunged 71.1 percent in the first half, from 1.97 million tons in January to 568,900 tons in June, reflecting the significantly diminished role of lignite in generation.

Lignite’s dominant energy mix role has been taken over by natural gas, supported by rising RES output and electricity imports.

Lignite-based electricity generation slid for most of the six-month period between January and June, dropping to 1.41 million tons in February, 882,240 tons in March, 730,970 tons in April and 564,900 tons in May before edging up to 568,900 tons in June.

CO2 emission right costs have been on an upward trajectory over the past couple of months, rising well over customary levels of about 20 euros per ton to reach as high as 29.66 euros per ton. Current levels appear to have stabilized at between 26 and 27 euros per ton.

Despite these higher CO2 emission right price levels, PPC’s operating costs are not expected to rise as a result of its big cutback on lignite-fired production.

PPC’s share of overall electricity production is projected to keep falling as independent producers and traders move in to fill the lignite void through natural gas and RES generation, plus electricity imports.

Rising CO2 right prices signal irreversible post-lignite course

Higher CO2 emission right costs, forecast to rise even further over the next few years, and this trend’s growing cost for power utility PPC’s lignite-fired power stations, highlight the country’s irreversible course towards the post-lignite era.

CO2 emission right costs have climbed to levels of about 30 euros per ton, the highest since 2006, Nikos Mantzaris, policy analyst at The Green Tank, an independent, non-profit environmental think tank, noted yesterday during a presentation of a new report, by the think tank, on Just Transition, the EU policy to end lignite dependence in Europe.

CO2 emission right prices will increase further over the next five years to reach levels of 35 to 40 euros per ton, sector experts have projected, Mantzaris said.

Stricter CO2 emission right regulations to be implemented by the European Commission in 2021 will push prices even higher, Mantzaris supported.

This upward trajectory of CO2 emission right costs is weighing heavy on PPC. Energy minister Costis Hatzidakis has estimated that PPC’s CO2-related costs in 2020 will amount to at least 300 million euros, a repeat of last year.

PPC has already made moves to restrict its lignite-fired generation for the grid. “The downward trend became even steeper following a full decarbonization decision announced [by the government] in September, 2019, which led, in May, 2020, to lignite covering just 6 percent of electricity demand on the grid, a historic low,” according to the latest Green Tank report.

For the first time in seven decades, not a single lignite-fired power station in Greece’s west Macedonia region operated on May 20 this year, while, between June 7 and 9, all the country’s lignite-fired power stations did not operate for 40 hours, the report noted.

 

 

RES generation in EU captures record share of energy mix

Renewable energy generation captured a record-high 35 percent share of the EU’s energy mix in the fourth quarter of 2019, up from 31 percent a year earlier, primarily as a result of record generation levels registered by the hydropower and wind energy sectors, latest European Commission data has shown.

Hydropower production rose significantly, by over 16 TWh year to year, while major gains were achieved by the wind energy sector, whose onshore wind farms grew by 9 TWh, or 9 percent year to year, and offshore wind farms registered a record year-to-year increase of 3.3 TWh, 18 percent.

Overall RES generation in December totaled 105 TWh, a new record level for the month, as a result of favorable conditions for wind farms and record hydropower production levels.

On the contrary, the energy mix share of fossil fuel fell to 39 percent in the fourth quarter of 2019, down from 42 percent a year earlier.

Greenhouse gas emissions in EU electricity generation fell by approximately 12 percent in 2019 as a result of the increase in RES production and a turn from coal to gas.

CO2 emission right costs increased by 57 percent year to year, to 25 euros per ton, according to the European Commission data.

 

 

Natural gas, LNG, CO2 right, wholesale power prices down

Besides lower oil prices in international markets over the past few days as a result of the coronavirus spread and price war between Saudi Arabia and Russia, energy commodities across the board are under great pressure, which has led to price reductions for natural gas, CO2 emission rights and electricity.

Lower oil and gas prices are offering relief for the economy and enterprises. However, there are two sides to this story, positive and negative. On the one hand, the price drops are creating opportunities for suppliers and consumers, while, on the other, natural gas futures indicate a decline until the end of the third quarter this year, meaning markets anticipate a downward trajectory in Chinese consumption and no sign of an economic rebound until at least September.

Prices at the Dutch trading platform TTF, a key index for LNG, slid to a three-month low on Monday, registering 8.627 dollars per MMBTU, before edging up to 8.993 dollars per MMBTU yesterday. This index has fallen 39.4 percent since the end of December’s three-month peak of 14.2 dollars per MMBTU.

Besides shaping LNG prices, according to new pricing formulas adopted at Gazprom, the TTF also greatly influences the rise of Russian pipeline gas.

CO2 emission right prices have fallen by 13.6 percent between December and early February, from 26.74 euros per ton to 23.11 euros per ton. A slight rise has been registered this week, to 23.25 euros per ton on Monday and 24.07 euros per ton on Tuesday. Lower prices on this front are favorable for lignite-fired power stations as well as energy-intensive industries.

Prices have also fallen in Greece’s wholesale electricity market. In the day-ahead market, the System Marginal Price (SMP) fell from 49.2 euros per MWh on Friday to 41.42 euros per MWh on Monday before edging up to 43.12 euros per MWh yesterday. A rise to 50.44 euros per MWh is expected today.

 

Authority wants to end virtually all power bill price clauses

RAE, the Regulatory Authority for Energy, has prepared a plan aiming to abolish all price-related clauses included in electricity bills except for one linked with fluctuations of the System Marginal Price (SMP), or the wholesale electricity price, sources have informed.

The overall objective of this plan, which could be forwarded for public consultation within the next few days, is to offer full transparency to consumers on procedures determining their electricity bill costs.

An existing clause enabling electricity suppliers to revise prices in accordance with CO2 emission cost levels would need to be abolished if the plan is implemented. Power utility PPC has already triggered this clause in reaction to rising CO2-related costs.

The existing SMP clause, currently triggered by all suppliers except for PPC, will be subject to strict rules, enabling consumers to know the cost of their bills with simplicity and precision by  factoring the SMP price into a formula for an immediate result, according to the RAE plan.

The complexity of the current billing system makes it difficult for consumers to make safe comparisons of supplier offers.

RES sector seen dominating electricity generation by 2050

The renewable energy sector is forecast to be in a clearly dominant position by 2050, especially in electricity generation, projections involving various scenarios agree.

The RES sector’s share reaches levels of 82 percent in 2050, driven by favorable policies anticipated for the sector, according to projections.

A reduction of renewable energy investment costs combined with a continual increase in CO2 emission right costs, within the ETS framework, is anticipated in all projections, justifying the spectacularly increased presence of the renewable sector in electricity generation over the coming decades.

Projections for considerably higher CO2 emission right costs between 2030 and 2050 result from the Market Stability Reserve (MSR), implemented automatically until 2050, according to EU law.

The anticipated ascent of the renewable energy sector in electricity generation is also expected to sharply boost other RES domains concerning heating, cooling and transport.

 

 

Higher-cost lignite sidelining gas units a Greek market paradox

Greece’s wholesale electricity market is still adjusting as, despite sharp rises in CO2 emission right costs, lignite continues to play a leading market role. Contributions from lower-cost gas-fueled generators remain subdued.

A recent drop in temperatures around the country has led to wholesale electricity market demand peaks of more than 7,500 MW since the beginning of December, up from previous demand peaks ranging from 6,000 to 6,100 MW.

According to the energy exchange’s day-ahead market data, virtually all of the power utility’s coal generators are contributing to distribution without operating at full capacity. Instead, they are running at minimum levels. This is reducing the need for gas-fueled generators.

Yesterday, PPC’s Agios Dimitrios III, IV and V, Kardia III and IV, Amynteo I and Meliti all operated at minimum levels, while the contribution of gas-fueled generators was kept to a minimum. Sidelined units included Heron, ENTHES, Aliveri and Komotini, while Protergia and Korinthos Power units contributed only during peak demand hours.

The picture for today remains unchanged with the System Marginal Price (SMP), representing the wholesale price, at 63 euros per MWh, as was the case yesterday. Before the recent increase in demand, SMP levels ranged between 50 and 55 euros per MWh.

Power grid operator IPTO, offering an explanation for the ongoing dominance of coal over gas, despite the rising demand in the wholesale market, noted that turning off and withdrawing a lignite-fired power station – except for telethermal units – costs more than leaving a gas-fired power station sidelined without distribution input.

For PPC, the objective is to maintain the SMP at low levels as the utility is required to purchase energy from the pool given its big market share in supply and smaller share in production.

PPC implements CO2 cost clause, tariffs still unchanged

Power utility PPC has implemented a clause enabling tariff hikes if CO2 emission right costs exceed limits, and vice versa, beginning November 1, as had been announced by state-controlled corporation and the energy ministry.

Even so, no tariff hikes are seen in the next few months, according to sources at PPC and the ministry, but cost increases cannot be ruled out after winter.

For the time being, PPC’s tariff prices remain unchanged at levels set on September 1.

Meanwhile, RAE, the Regulatory Authority for Energy, is soon expected to reach decisions on various cost-related clauses adopted by electricity suppliers. Public consultation was staged last Spring to examine the level of transparency of surcharges included on electricity bills.

The authority is expected to soon decided on a standard formula for CO2-related clauses, sources informed.

RAE is also examining whether PPC’s CO2 clause breaches any supply code rules, sources added.

Additional energy costs a big concern for mid-voltage manufacturers

CO2 emission cost charges have developed into a major concern for mid-voltage manufacturers following recent market changes such as electricity tariff hikes and a reduced punctuality discount, offered when bills are paid on time.

The operating details of a CO2 emission cost adjustment mechanism, prompting charges that do not reflect actual costs, are seen as the main problem by manufacturers.

These charges are revised when CO2 emission right cost increases are greater than 10 percent and remain unchanged when the emission charge change is less than 10 percent.

As a result, the current system is leading to charges that do not reflect actual costs.

Electricity tariff changes for medium-voltage manufacturers, especially the termination of a CO2 emission cost discount, have increased their energy costs by 11 to 12 percent, making them less competitive.

The majority of these manufacturers are exporters and risk losing foreign markets, which would decrease production levels and place jobs at risk.

The issue is a concern for some 30 Greek manufacturers employing thousands and needing to overcome energy costs that represent between 30 and 40 percent of total production cost.

“Authorities need to understand that a measure prompting 10 percent electricity price increases or decreases is of little significance to an enterprise whose electricity cost represents just 2 percent of production cost, for example, but, on the other hand, is huge for an enterprise whose electricity cost represents 40 percent of production cost,” a leading industrialist told energypress.

Expanded NECP committee set for inaugural meeting Thursday

An expanded special committee formed late last month and tasked with preparing a new National Energy and Climate Plan, expected to feature more ambitious RES targets, is scheduled to hold its first official meeting this Thursday.

The committee will need to complete its task swiftly so that Greece’s revised NECP can be forwarded to the European Commission following official approval from KYSOIP, the Government Council for Economic Policy, by the end of the year.

Besides ministerial secretary-generals, the expanded committee, headed by deputy energy minister Gerassimos Thomas, now also includes the chief official at RAE, the Regulatory Authority for Energy, as well as civil, chamber and specialized energy and climate representation.

The new NECP, to feature the government’s energy policy priorities, will also take into account European Commission recommendations forwarded in June, in response to an initial plan submitted by Greece to Brussels early this year.

Promising guidance to the public and private sectors for energy and climate initiatives up to 2030, the new plan will incorporate national commitments announced by Prime Minister Kyriakos Mitsotakis at the recent UN climate action summit in New York.

Greece’s decarbonization, required as a result of new market conditions prompted by increased CO2 emission right costs; utilization of the country’s RES potential; and energy efficiency improvement will constitute the main aspects of the new NECP, Thomas, the deputy energy minister, has noted.