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

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.

Older industrial PPAs to be given connection-term priority

A legislative revision promising connection-term priority to RES projects whose output is intended for long-term PPAs with industrial and agricultural consumers will apply only to older agreements going back two years, such as those established between power utility PPC and metal processing company Viohalko and cement producer Titan, energypress has been informed by sources at the energy ministry, preparing to submit the revision to Parliament today.

The legislative revision will be attached to a finance ministry bill concerning a 15 percent minimum tax rate on multinationals.

Market players who rushed to establish PPAs in the lead-up to this legislative revision will not be entitled to connection-term priority rights.

The number of PV projects – in terms of capacity – to be granted connection-term priority rights as a result of the legislative revision will be decided through a ministerial decision at a latter date, when the energy ministry has a precise figure on the number of PPAs energy-intensive consumers have established with RES producers.

However, it is already considered certain that roughly 500 MW in PV projects to be developed for lower-cost electricity to the agricultural sector will benefit from the legislative revision.

The overall capacity of RES projects – for agricultural and industrial energy consumption – linked to this legislative revision may be below a 1,300-MW capacity initially reported.

 

RES units without priority to be given 50% battery subsidies

The energy ministry is working on offering an alternative form of support, through subsidies for battery installations, to RES projects linked with PPAs for industrial consumers should these projects miss out on priority status for appraisals of their connection-term applications.

RES units placed in Group B, in terms of priority, and not granted priority status for appraisals of their connection-term applications will, as a form of compensation, receive subsidies covering 50 percent of battery installations, the energy ministry has decided.

These batteries will be permitted to absorb energy from the grid, in addition to their respective RES units, thereby decreasing their investment cost.

The energy ministry has decided to grant priority status for connection-term applications concerning Group B RES projects whose output is intended to contribute to energy needs entailed in power utility PPC’s existing PPAs with metal processing company Viohalco and cement producer Titan.

RES projects planned to secure lower energy costs for farmers will also be granted priority status for their connection-terms procedures. A related legislative revision is expected to soon be submitted to Parliament.

 

Stricter RES project timeline considered to free up capacity

The energy ministry is considering to introduce stricter timelines for the completion of RES projects possessing connection terms, the initiative’s aim being to free up grid capacity.

As part of the effort, the energy ministry has asked for power grid operator IPTO’s opinion on whether existing RES project development timelines should be made tighter in order to eliminate projects that have stalled for a variety of reasons.

The ministry believes that a proportion of grid space that would become available through the implementation of a tighter development schedule for RES projects should be allocated to the distribution network for the development of small-scale photovoltaics. Priority would be given to self-consumption applications.

Deputy energy minister Alexandra Sdoukou presented the fundamentals of the overall plan at a recent event staged by SEF, the Hellenic Association of Photovoltaic Companies. Releasing grid space and distributing this capacity to new projects are the plan’s two key aspects, she explained.

Greater grid-injection restrictions for renewables and the addition of batteries to RES projects with connection terms are paramount in the effort to broaden available capacity, Sdoukou reiterated.

Grid injection limitation for new PVs to be revised to 50%

A grid injection limitation for new PV projects will be revised to 50 percent as a connection term condition for RES projects seeking to secure grid capacity, while certain PV categories, still undetermined, will also be required to incorporate batteries into their systems, the energy ministry has decided, according to sources.

A previous grid injection limitation of 72 percent applied for new PVs which, up until July 4, 2022, had either not established connection term agreements or not submitted completed requests for connection term contracts.

Projects needing to be equipped with batteries will need to meet minimum technical specifications concerning choice of battery.

As for PV projects that will not be required to be equipped with batteries, it remains uncertain if they could secure financial viability with a grid injection limitation at a level of 50 percent.

RES producers will certainly be taking into consideration the course of battery costs over the next few years, while projects mature in terms of licensing and are ready to be developed, before reaching decisions on whether to incorporate batteries into their projects or not.

No grid injection limitation revisions are expected for wind energy facilities.

HEDNO to legally challenge RAAEY fine imposed for PV auction issues

Distribution network operator DEDDIE/HEDNO plans to take legal action challenging a fine of one million euros imposed by RAAEY, the Regulatory Authority for Waste, Energy and Water, for problems concerning how two auctions offering connection terms for solar power units in the Peloponnese and Crete were conducted, the operator’s top official has noted in a statement addressed to parliament.

The operator does not accept the RAAEY decision and will challenge it in the legally prescribed manner, stated Anastasios Manos, chief executive officer of DEDDIE/HEDNO, in response to a question posed by the main opposition leftist Syriza party.

DEDDIE/HEDNO also believes the RAAEY fine does not annul the auctions and intends to continue and complete its processing of applications for the Peloponnese and Crete networks, both saturated, the CEO noted.

The operator considers that it has taken all possible measures to ensure the auction’s platform functions properly, stressing it has fully complied with a relevant circular issued.

 

Incentives, through auction, planned for PVs with batteries

The energy ministry is considering to offer incentives to PV facility investors for behind-the-meter battery installations as a means of freeing up grid capacity, a solution that would enable power grid operator IPTO to resume offering new connection terms, currently on hold as a result of grid-capacity restraints.

According to the ministry’s plan, incentives would be offered in the form of tariffs secured by PV producers through auction.

Essentially, these auctions would only be open to PV projects possessing finalized grid connection term offers and equipped with batteries. The auctions would offer higher tariffs taking into account the increase in investment cost.

At present, RES projects under development and already possessing finalized grid-connection term offers represent a total capacity of 15 GW. If a portion of these projects are equipped with batteries behind the meter, then a significant amount of grid capacity could be saved to facilitate new green-energy investments.

 

 

 

Connection-term priority for RES projects with storage units

The energy ministry is planning to revise the process for licensing renewable energy projects by giving connection-term priority to projects that include energy storage batteries. This move is driven by the need to address grid capacity shortages resulting from the rapid increase in RES projects in recent years.

The promotion of energy storage promises to complement the effectiveness of an enormous amount of ongoing investments in grid upgrades, energy minister Theodoros Skylakakis noted during a TV interview while commenting on the country’s grid capacity issues.

Both solar and wind energy projects would be given priority status for connection terms if batteries are incorporated into their plans, an addition minimizing their usage of grid capacity, the minister clarified.

Energy ministry officials have already begun work on a formula for the connection-term priority plan.

At present, operating RES projects are estimated to represent a total capacity of 26 to 27 GW, meaning grid capacity for new RES units is expected to be fully taken by 2030, if taking into account that approximately 2 GW will also be needed for offshore wind farms planned to be developed by the end of the decade.

RES investors adding storage units for grid connection priority

A considerable number of RES investors are opting to add energy storage units to their prospective renewable energy projects in order to gain priority status for grid connections, following incentives offered by authorities.

Since a ministerial decision was signed three and a half months ago by the energy ministry for revisions to a connection terms framework, RES investors have submitted applications for energy storage additions to prospective RES projects representing a total capacity of 1,380 MW.

According to the ministerial decision, RES projects combining storage units that do not absorb energy from the grid will be given priority status for connection terms offered by IPTO, the power grid operator. RES units must not exceed 250 MW to be valid for priority connection status.

 

Freeze on new RES connection terms throughout Greece

An energy ministry draft bill for a second round of RES licensing simplification measures will freeze, throughout Greece, RES grid connection applications accepted as well as connection terms that would otherwise be offered by distribution network operator DEDDIE/HEDNO for pending new RES projects until RAE, the Regulatory Authority for Energy, has approved the operator’s plan for a grid capacity increase.

However, even when this grid capacity boost is approved by RAE, very few RES projects will be able to make progress as a minimal number of existing substations currently have minimum capacities of 10 MW, a draft bill prerequisite for distribution of capacity percentages concerning grid connections of small and medium-sized projects.

RAE does not face any time limits for its approval of the grid capacity boost. Officials fear the delay could last months. Until RAE’s approval, DEDDIE/HEDNO will only accept RES project applications and offer connection terms for net-metering systems, virtual net-metering as well as roof-mounted solar panels.

Swifter guarantee payment for RES connection terms

RES project investors granted connection terms, old and new, for projects are likely to be required to pay guarantees within a two-month period, a shortened period that is expected to filter out idle, undeveloped project plans occupying capacity.

The details of this revision will be finalized once consultation on a related draft bill prepared by the energy ministry has been completed.

The draft bill will cover the next round of RES licensing simplification measures and a framework for the development of energy storage units.

 

 

 

 

Operators coordinate for swifter RES connection terms

Power grid operator IPTO and distribution network operator DEDDIE/HEDNO have begun coordinating by exchanging information on available grid transmission and distribution network capacities, respectively, in an effort to accelerate connection terms offered to RES facilities.

At present, IPTO and DEDDIE/HEDNO are struggling to keep up with a flood of applications submitted by RES investors for connection terms.

The two operators have formed a working group which has already held one session involving the participation of RAE, the Regulatory Authority for Energy.

It was agreed that the two operators need to establish better pictures of available capacities concerning the grid transmission and distribution networks.

Taking into account all grid expansion projects included in the ten-year investment plans of IPTO and DEDDIE/HEDNO, as well as national and transboundary grid interconnection plans, plus anticipated energy storage projects, the country’s RES capacity will reach a maximum of 28.5 GW in 2030. RES investor applications submitted so far are estimated to already exceed this sum by 10 GW.

RES project applications over 2030 limit, halt considered

RES investor applications submitted to power grid operator IPTO for connection terms concerning wind and solar energy facilities already greatly exceed the grid’s planned capacity for 2030, by 10 GW, taking into account prospective grid infrastructure upgrades.

This excess capacity has prompted the energy ministry to consider suspending the submission of any new applications until authorities have found solutions to manage the accumulation of project applications already submitted.

IPTO has completed its assessment of applications concerning 2020 and has offered connection terms to successfully applicants.

The operator is now preparing to process applications lodged in 2021 and during the first quarter of 2022.

The current total capacity of RES projects, either already operating or which have received connection terms up until the end of 2020, is 19.6 GW.

Applications submitted in 2021 and so far in 2022, all of which need to be evaluated, represent a total capacity of 19 GW.

Greece’s updated National Energy and Climate Plan has projected an installed RES capacity of 25 GW by 2030.

Taking into account all grid expansion projects included in the ten-year investment plans of IPTO and DEDDIE/HEDNO, the distribution network operator, as well as national and transboundary grid interconnection plans, plus anticipated energy storage projects, the country’s RES capacity will reach a maximum of 28.5 GW in 2030.

 

IPTO, HEDNO form working group for RES connection term coordination

Power grid operator IPTO and distribution network operator DEDDIE/HEDNO have agreed to form a working group, with participation from RAE, the Regulatory Authority for Energy, following a meeting initiated by the authority to seek solutions for further acceleration of connection terms offered to new RES stations through better coordination between the operators.

The three entities agreed that each operator must have a clearer picture of total available network capacity, both for transmission and distribution.

At the meeting, both IPTO and DEDDIE/HEDNO stressed that they have been working at a faster pace over recent years, in response to an increased inflow of RES connection applications.

In 2021, IPTO offered connection terms to 1,346 prospective RES projects representing a total capacity of 3,046 MW, five times more the total capacity of 620 MW it offered for RES connection terms concerning 43 RES projects in 2015.

Also, RES stations given the green light to enter the transmission network in 2021 increased by 310 percent, compared to the previous year.

Between 2015 and 2021, 1,673 RES stations representing a total capacity of 7.86 GW have secured access to the grid, data has shown.

 

Big wave of RES group applications continues in 2021

Group applications for small-scale solar energy systems have remained high in 2021, the number of group requests so far submitted to power grid operator IPTO for finalized connection terms reaching 70 for a total of 2,696 units representing a capacity of 2,260 MW, energypress sources have informed.

These figures essentially mean that applications representing approximately 25 percent of the capacity planned to be installed in Greece by 2030 were submitted during the first ten months or so of the current year.

IPTO is currently offering finalized connection terms for successful group RES applications made until December 31, 2020. To date, the operator has offered connection terms for 20 group applications submitted in 2020, representing a capacity of approximately 705 MW.

IPTO begins offering connection terms for group RES applications

Power grid operator IPTO has begun offering connection terms to group applicants behind small-scale solar energy projects, a development that enables direct transmission system access for these groups, sparing them of the need to enter via the distribution network.

According to sources, a first group application received connection terms from IPTO about three weeks ago, while a further two groups of small-scale PV units had secured their direct access to the transmission system by the end of last week.

More small-scale group applicants are expected to soon be given their connection terms.

 

Connection terms list topped by PPC Renewables, key projects

Power grid operator IPTO has released a list of pending finalized connection terms for RES and combined heat and power (CHP) projects, prioritizing strategic investments and RES projects planned for lignite-dependent areas being phased out as part of the country’s decarbonization effort.

At the top of the list is an application for a 40-MW solar energy park project in Larissa, central Greece, listed under the strategic investments category.

It is followed by applications submitted by PPC Renewables for RES units planned in northern Greece’s west Macedonia area, until now a lignite-based local economy.

These applications submitted by PPC Renewables, a subsidiary of power utility PPC, concern 19 projects promising a capacity of approximately 1.9 GW, planned for the provincial cities Kozani and Florina. They include a 550-MW solar energy park in lignite-dependent Ptolemaida.

Also on the list are a further 76 connection-term applications for RES projects representing a total capacity of approximately 2.5 GW.

Overall, the list includes 96 applications for projects totaling 4.5 GW. Of these, 92 are PV projects, 2 are wind-energy projects, one is a combined PV and wind energy project, while the remaining application is for a small-scale hydropower station.