Common EU RES auctions discussed at informal video conference

EU energy ministers discussed the prospect of common RES auctions for all EU member states during an informal video conference staged this week to examine the impact of COVID-19 on the energy sector.

Participants also discussed the need to ensure energy-sector fund access for all EU member states amid the pandemic’s new conditions.

The topic of bank loan terms and credit policies enabling governments and banks to offer support to enterprises for green energy development was also tabled.

Tools and strategies to be implemented should be developed in a spirit of solidarity between EU member states, not only in dealing with emergencies, but also as a preventive measure, according to a report issued following the meeting.

In the report, the EU also urges member states to prepare for various challenges that may arise from now on as a result of the pandemic.

The EU also stressed the need for ambitious energy sector targets to be maintained, while taking into account differences between member states.

PPC collection record improves in April, market still uneasy

Power utility PPC’s reduced electricity bill payment collection record appears to be flattening at a rate of about 10 percent, April data has shown, compared to a far sharper drop of 20 to 25 percent in March.

Though these latest figures, still unofficial, are not a cause for celebration, they do represent a major improvement compared to the activity freeze experienced during the first three or so weeks of the lockdown, initiated in March.

PPC had yet to introduce its payment by telephone service, vital for pensioners trapped at home and unfamiliar with online procedures.

Energy sector officials fear consumers will prioritize other pending matters and leave electricity bill payments for later on once the gradual lifting of restrictive measures begins on Monday. The month of May promises to be crucial for PPC’s electricity bill collection record.

Independent electricity suppliers, who weathered electricity bill collection reductions ranging from 20 to 35 percent in March, are also hoping for payment improvements in the immediate future.

However, like PPC, their fear of retailers going out of business and leaving behind bad debt is a headache. The picture should become clearer as of Monday, when businesses of certain categories will be free to reopen.

Green energy to remain a catalyst for Greek economic growth

Local authorities, in the coming months, will focus on reigniting green energy investment interest expressed by many international funds until February, when the coronavirus outbreak began halting plans.

The restart could be a challenging task as certain funds may hold back following losses on stock exchanges.

Even so, the pandemic’s impact on green energy markets is expected to be far milder compared to other sectors.

Market analysts throughout the continent believe prospective investments in renewable energy, waste management, energy efficiency upgrades for buildings, as well as decarbonization initiatives, will serve as key factors for economic growth in Europe, including Greece.

The European Green Deal, aiming for a climate-neutral EU of zero greenhouse gases by 2050, will not be endangered by the current pandemic-induced crisis as it is a short-term condition that pales by comparison to the grander plan set out for the next 30 years, energy ministry sources told energypress.

However, a slight regression of green energy investment plans is initially anticipated, compared to positions in February.

Between 70 and 80 percent of foreign investors are expected to remain interested in Greece’s green energy sector in the months ahead, analysts believe.

 

 

Argentina oil, gas energy online summit planned for May 12

IN-VR is organizing the ​Argentina Oil, Gas & Energy Summit under the Endorsement of the British Argentine Chamber of Commerce, taking place completely online on May 12, 2020.

The event, gathering key authorities and investors, will focus on Argentina’s plans in the current oil price landscape, the COVID-19 impact on the market, Vaca Muerta, one of the largest shale formations in the world, and Argentina’s LNG plans.

The summit will gather government officials, key IOCs, investors and service providers that will discuss these topics and network with attendees online in sessions and private B2B meeting rooms.

All profits from tickets will be donated to ​NGOs and charities that support doctors combating the coronavirus and groups most affected in Argentina​.

Key topics on the agenda: 

● How will the current oil price landscape affect Argentina?
● How will the coronavirus affect Argentina?
● Argentina’s shale oil government policies
● Identifying E&P opportunities in Vaca Muerta
● Service provider opportunities in Vaca Muerta
● Argentina’s future plans for LNG
● What are the best companies to partner with in Argentina?
● Q&A: How do foreign investors view Argentina’s oil & gas industry?
● Human resources needs in Vaca Muerta and Argentina.

Presenters:

● Daniel Dreizzen, ​Former Secretary of Energy Planning, Argentina
● Jimena Blanco, Head of Americas, ​Maplecroft
● Gabriela Aguilar, General Manager, ​Excelerate
● Diego Garcia, Partner, ​Bain
● Claudio Spurkel, Global Sales Business Development Manager, ​Agira
● Mark LaCour, Oil & Gas Expert & Editor in Chief, ​Oil and Gas Global Network

For further information visit:
https://www.in-vr.co/argentina-online

Or contact:
felix@in-vr.co

 

 

 

Sale of further stake in IPTO delayed by pandemic’s impact

A privatization procedure for the sale of an additional stake in power grid operator IPTO will not be able to resume for at least another two to three months as a result of the coronavirus pandemic’s negative impact on international markets, highly ranked energy ministry officials have told energypress. The ministry will wait for conditions to recover, the sources noted.

A legislative revision is needed to lift a restriction imposed by the country’s previous leftist Syriza government in 2016 not permitting the Greek State’s stake in IPTO to fall below 51 percent, the current stake held by the Greek State.

Though an amendment ending this restriction has been included in a draft bill covering environmental and RES matters, now headed to parliamentary committees for discussion ahead of ratification, considerable road lies ahead before the sale of a further stake in IPTO can take place.

IPTO’s strategic partner State Grid Corporation of China (SGCC), holding a 24 percent stake in the Greek operator, has expressed interest to boost this share. The Chinese company maintains first-offer rights in the event of a further sale.

Following his election victory last July, Prime Minister Kyriakos Mitsotakis, leader of the conservative New Democracy party, had announced a further stake of IPTO would be sold.

An official visit to Athens by Chinese president Xi Jinping last November added further impetus to the plan and earlier this year, deputy energy minister Gerassimos Thomas was planning to visit China for related talks.

However, talks between Athens and Beijing have remained stalled as a result of the pandemic.

 

PPC boss: Oil cost benefits outweigh pandemic’s damage

Benefits offered by the sharp drop in oil prices promise to outweigh the negative impact of pandemic-related tariff discounts offered to customers and lower revenues, power utility PPC’s chief executive Giorgos Stassis highlighted to analysts and investors during a two-hour virtual conference held yesterday.

Company financial figures for 2020 and the first half of 2021 have needed to be revised but the coronavirus lockdown measures imposed until now do not appear to have negatively impacted the corporate group, the CEO informed.

On the contrary, operating profit has risen as a result of a significant reduction of energy costs, Stassis explained, noting this gain is greater than reduced turnover figures prompted by lower energy consumption during the pandemic as well as the consequences of electricity bill payment delays by customers.

PPC’s energy expenses rose by 425 million euros in 2019, according to yesterday’s presentation.

The state-controlled corporation’s decarbonization schedule, or withdrawal of lignite facilities, will not be postponed by the pandemic, Stassis noted, responding to related questions.

PPC plans to soon withdraw its Amynteo facility from the grid, while the corporation’s lignite-based electricity generation has been significantly reduced, according to recent company announcements.

Lignite-based production at PPC has dropped by 65 percent compared to last year, according to a monthly report released by the Greek energy exchange in March.

PPC’s lignite facilities financially burden the corporation by 200 to 300 million euros per year, analysts were told yesterday.

The power utility’s retail electricity market share is expected to keep falling in 2020 but an attempt will be made to limit this slide through a new commercial policy, Stassis told analysts.

The company’s renewable energy portfolio will grow to 650 MW from a current capacity of 160 MW over the next three years, he noted.

Suppliers dread bad debt of permanent business closures

Electricity and gas suppliers, fearing a new wave of bad debt that could balloon should retailers and enterprises currently in lockdown fail to reopen, have expressed their concerns to deputy energy minister Gerassimos Thomas in a virtual conference.

Consumers of all categories, including households, have increasingly struggled to pay their energy bills during the coronavirus pandemic. Overdue energy bills have increased by levels ranging from 20 to 35 percent, according to data forwarded by suppliers to RAE, the Regulatory Authority for Energy, and the energy ministry.

Besides fearing an eventual financial collapse of many retailers and businesses amid a protracted lockdown, authorities suspect some survivors could opt to relaunch their businesses under new tax file numbers in an effort to escape accumulated energy bill debt obligations.

The energy ministry is now seeking to establish a clearer picture on the energy bill collection records of suppliers as a means of shaping appropriate cash flow support measures.

A ministerial decision offsetting debt between energy suppliers and market operators will soon be signed, Thomas, the deputy energy minister, informed.

PPC financial results for 2019 seen reflecting moves late last year

Power utility PPC’s financial results for 2019, expected to be released this afternoon, should favorably reflect measures taken by the state-controlled corporation’s administration and the government during the final four months of the previous year, analysts have forecast.

The results, expected once the day’s trading has ended at the Athens bourse, are also expected to include an initial assessment of the impact, so far, of the coronavirus pandemic-induced lockdown on the corporate group.

Also expected is an update on new initiatives, including investment plans, for the rest of 2020, following a forced revision of plans prompted by the pandemic.

PPC’s administration has set an operating profit objective of between 420 and 470 million euros for 2019, up from 150 million euros in 2018.

EBITDA figures of 240 million euros for the fourth quarter of 2019 and 337 million euros for 2019, overall, have been forecast by Pantelakis Securities.

During the final few months of 2019, PPC revised tariffs and abolished NOME auctions, described by company and government officials as a loss-incurring measure for the firm.

PPC expects even greater clarity on its financial standing in the immediate future. The corporation is waiting for more appropriate market conditions to securitize unpaid receivables worth 1.5 billion euros and issue a company bond.

Proceeds from these initiatives are expected to enable PPC to move ahead with an ambitious investment plan.

WTI may plunge again, local market indirectly impacted

Monday’s unprecedented collapse on the US market of May oil futures, driven down to negative territory by a pandemic-induced evaporation of demand that left the world with an oil oversupply and not enough storage capacity — meaning producers were willing to paying buyers to take it off their hands – could be repeated towards the end of May for June oil futures, analysts have noted.

Besides this week’s price collapse of oil futures in the US, the biggest day-to-day price drop in the history of oil trading was also recorded Monday.

Output, especially by small-scale producers, will gradually be wound down for market equilibrium, or a production correction reflecting the dive in demand prompted by these extraordinary times. However, this process will require some time and may be achieved slightly before June, according to a Goldman Sachs estimate.

The below-zero prices have mostly affected holders of futures contracts, the majority of these being traders, not actual buyers of oil. Actual buyers, namely refineries, make oil purchases at average price levels determined over extended time periods.

The Greek oil market is not directly influenced by the US market’s WTI index, but, instead, primarily takes its cue from Brent prices. Their fall was less acute, dropping to a level of 19 dollars per barrel when the WTI had fallen into negative territory. Brent prices then rose to levels of between 20 and 25 dollars per barrel the following day, yesterday.

The current oil market volatility has created conditions for lower price levels but the lockdown does not permit consumers to take full advantage.

 

Energy ministry examining prospect of RES auction postponements

The energy ministry is examining current wind and solar energy market data to decide on whether to stage RES auctions for new project installation capacities in June or July, as was originally planned, or to postpone these sessions for the final quarter of the year.

The ministry would rather stick to the original plan as it wants to avoid creating an impression of a wider freeze by the coronavirus pandemic on plans.

A successful mixed RES auction on April 2 was heralded by the ministry as solid proof of a market still operating in proper fashion.

However, the extended lockdown has necessitated a reexamination of market data by ministry officials as project maturation in the RES sector has been impacted by the pandemic’s consequent conditions.

At the distribution network operator DEDDIE/HEDNO, examination and processing procedures of investor applications for new connection terms have slowed down considerably.

The same goes for municipal authorities and other public agencies involved in the licensing process of new RES projects.

It is feared this overall slowdown could diminish the number of projects investors will be prepared to take to the RES auctions, staged by RAE, the Regulatory Authority for Energy.

RES auction dates have been postponed in most other European countries in recent times.

 

US oil futures collapse to below-zero price, unprecedented

US oil price futures collapsed to unprecedented below-zero prices in New York trading yesterday as a result of the coronavirus pandemic’s evaporation of demand that has left the world with excess oil and not enough storage space, meaning producers are paying buyers to take it off their hands.

The price of crude scheduled for delivery in May collapsed by 55.90 dollars, or 306 percent, to -37.63 dollars per barrel. This means that US traders will need to be paid to forward crude to the country’s main delivery point of Cushing, Oklahoma.

The previous record low figure, 10.42 dollars per barrel, was reached on March 31, 1986.

Considerably higher prices for June, registering approximately 21 dollars per barrel last night, indicate slightly better trader expectations concerning the supply and demand balance as the second half of the year.

 

RAE starts target model delay investigation, hearing possible

RAE, the Regulatory Authority for Energy, has launched an investigation seeking to pinpoint the causes behind the delay of the target model’s first stage.

An April 10 deadline was missed for trial runs of all market systems in a procedure involving power grid operator IPTO, the energy exchange and EnexClear.

IPTO was unable to complete the development of a balancing market platform needed for the trial runs. The operator attributed its delay to a coronavirus-related inability by General Electric to deliver required software on time. This delay has now clocked up some 60 days.

The energy authority wants to determine whether any other factors, besides the coronavirus pandemic’s inevitable effect, have played a role in the delay of the trial run.

RAE also wants to examine the impact of the delays until now on the target model’s next stages. A full-scale launch scheduled for June 30, when day-ahead, intraday and balancing markets are expected to begin operating, now appears to be out of the question, while a delay beyond summer is feared.

The authority could summon all parties involved to a hearing to determine whether penalties need to be imposed.

Market support measures worth €550m may prove insufficient

A number of electricity market support measures planned by market authorities and firms for the next few months are estimated to be worth 550 million euros, but this may not be enough.

The effectiveness of the measures will depend on the depth and duration of the pandemic-related recession, still in the making.

Should the Greek economy contract by 10 percent this year, as projected by the IMF in a report announced yesterday, and the effects spill over into 2021, as is feared, then the current measures will prove insufficient.

Authorities yesterday announced an initiative offering lighter terms to electricity suppliers for surcharge payments to market operators.

Electricity suppliers will be able to pay 30 percent of their regulated charges marked out for the power grid operator IPTO, distribution operator DEDDIE/HEDNO and RES market operator DAPEEP for the two-month period of April and May over four monthly installments, according to an energy ministry plan. This measure, alone, is estimated to be worth about 200 million euros.

Also, power utility PPC and distribution operator DEDDIE/HEDNO, its subsidiary, appear to have secured European Bank for Reconstruction and Development (EBRD) loans, for next month, totaling between 180 to 200 million euros.

PPC considering €100-200m EBRD loan as recession aid

Power utility PPC may seek a loan from the European Bank for Reconstruction and Development (EBRD) worth between 100 and 200 million euros to cover extraordinary needs seen emerging for both the utility and its subsidiary firm DEDDIE/HEDNO, the distribution network operator, as a result of the pandemic and consequent recession, still in the making.

The extent of the pandemic-related recession cannot yet be determined. Financial support from the EBRD, which has extended loans to PPC in the past, would bolster the power corporation’s cash flow and also provide a safety net for its subsidiary during these uncertain times.

PPC fears the distribution operator’s earnings, resulting from surcharges included in electricity bills, will drop by approximately 30 percent. A growing number of consumers are not meeting payment deadlines for electricity bills.

PPC is also preparing to launch a securitization initiative for unpaid receivables.

 

 

Fuel demand dives, heating fuel sales supported by low prices

Fuel consumption, down to unprecedented levels as a result of the lockdown, has produced a nationwide gasoline sales drop of 70 percent this month. The slide in gasoline sales has been even steeper in urban centers, falling by as much as 80 percent.

The reduction in demand for diesel has been milder, limited to levels of far less than 50 percent as a result of ongoing agricultural activities around Greece.

On the contrary, heating fuel demand has stood firm against the wider downward trend, supported by extremely attractive prices that have encouraged consumers to stock up as early as now for next winter.

Heating fuel prices have registered a 24 percent drop since the beginning of the year, falling to 0.815 euros per liter from 1.07 euros per liter.

The heating fuel price reduction in Greece is far smaller than that of international oil prices because a considerable percentage of the local retail price is comprised of taxes.

The heating fuel season ends at the end of April, meaning consumers have about two more weeks to place orders at the current prices.

An OPEC agreement reached last week for a 10 percent reduction in output considerably increases the likelihood of a price rebound. The production cutback puts an end to the Saudi-Russian price war.

Security fund initially limited to operators, suppliers must wait

A security fund being established by the energy ministry as financial protection for electricity market players from the pandemic’s repercussions will, for the time being, be limited to covering the needs of market operators.

A wider package also including protection for suppliers, as was initially intended, will need to be examined later on as its cost, estimated anywhere between 600 million and one billion euros, is considered too substantial by authorities.

Limiting the security fund’s coverage for market operators will require an amount of between 100 and 200 million euros, it has been estimated.

The security fund’s sum promises to compensate power grid operator IPTO, distribution network operator DEDDIE/HEDNO and RES market operator DAPEEP for regulatory surcharges not expected to be received under the current conditions.

Consumer electricity bill payments, which include regulatory surcharges, are projected to fall by approximately 30 percent over the next two to three months.

 

 

Target model schedule’s first major deadline hit by coronavirus

Trial runs of energy exchange market systems, the target model’s first major deadline, were officially scheduled to commence today but have been postponed as a result of coronavirus-related delays, power grid operator IPTO has informed.

IPTO, the energy exchange and EnexClear were scheduled to start system tests today.

General Electric, citing the period’s extraordinary conditions, has explained it is not in a position to deliver finalized version of a platform needed for the balancing market.

The company estimates a 50-day delay in the delivery of the related software, based on current data.

This delay will have a knock-on effect on the schedule mapping out an energy exchange launch on June 30.

According to law, RAE, the Regulatory Authority for Energy, will need to begin an investigation process on the matter and determine responsibilities for the delay. Presumably, IPTO and the energy exchange will need to offer explanations.

A new official date will then need to be set once the investigation has been completed. Now set to be dragged into the summer period, the energy exchange launch may be further delayed, beyond August.

 

PPC eagerly awaiting right time to launch securitization plan

Power utility PPC is ready to pounce on the first opportunity it will get to launch its securitization plan for unpaid receivables owed by customers.

Extraordinary market conditions resulting from the coronavirus pandemic’s wider impact have delayed the plan, whose various technical details and negotiations with investors have been completed.

The terms of the securitization effort would be too costly for PPC if the utility were to launch the plan under the present conditions.

PPC’s electricity bill collections have dropped by a level estimated between 25 and 30 percent over the past 20 days, latest company data has indicated.

However, the extent of the coronavirus-related impact on this reduction in electricity bill payments is unclear as Hellenic Post (ELTA) has experienced delays in posting hundreds of thousands of bills to customers during this same period.

A clearer picture on the pandemic’s impact on PPC’s unpaid receivables is expected towards the end of this month.

RAE, the Regulatory Authority for Energy, and the energy ministry have both requested updated collection figures from all the country’s power supply companies.

Mitsotakis discusses effects of coronavirus on tourism with representatives of the sector

The effects of the coronavirus crisis on tourism and the prospects for a dynamic restart when conditions allow dominated a video conference between Prime Minister Kyriakos Mitsotakis, government officials and representatives of the tourism industry on Thursday.
During the video conference, they evaluated the situation in the tourism sector, which was described as unprecedented, and examined the prospects for tourism after the end of the pandemic.
“We know very well that the effects of this crisis on tourism will be significant. Our goal for 2020 is to reduce, as much as possible, the negative repercussions, given that our product has a specific characterestic, the largest volume of visitors comes to Greece in July, August and September,” said the prime minister.
Mitsotakis said it was extremely important that “the country has managed and built, during the face of this health crisis, a significant reserve of confidence, which will allows us, I believe, to formulate the best possible strategy to rescue as much as possible from this season, but also to lay the foundations for a much better season in 2021.”
Referring to the government’s policy for tackling the problems in the economy, he said that the government acted quickly to support companies.
He also referred to “Greece From Home” (the online platform that “takes” Greece to the world via YouTube) and congratulated all its contributors, saying that it was truly a global innovation, which highlights Greece’s ingenuity in dealing with this crisis, while adding that ” our goal is to reach some concrete conclusions for policies that will have a direct effect on the tourism industry.”

Eurogroup agrees on a 540 billion-euro package of measures to combat coronavirus economic fallout

European Union finance ministers agreed late on Thursday on a 540 billion-euro package of measures to combat the economic fallout of the coronavirus pandemic.
“The decision reached by the Eurogroup should be the starting point for even more ambitious – in the future – European initiatives on dealing with the effects of coronavirus, but also the return to normalcy,” Finance Minister Christos Staikouras said describing this decision as “a satisfactory agreement that offers new financial tools to deal with the unprecedented social and economic consequences of the coronavirus spread.”
According to Staikouras, this is a new package of measures, both for tackling the current health crisis and for the subsequent reorganization of European economies.
*The package provides for increased funding for companies through the European Investment Bank, the implementation of a temporary program to protect jobs, and the activation of the precautionary credit line of the European Stability Mechanism (ESM) adapted to the current health conditions.
The aim of this package of measures, totaling more than 500 billion euros, is to strengthen health systems, boost liquidity in the real economy, reduce unemployment and boost social cohesion.
* As for the necessary restart of the economy, a recovery plan is about to be launched, financed by “innovative financial instruments”, as well as the use of European funds, through the rearrangement of the next Multiannual Financial Framework.
This agreement, Staikouras said, comes to complement the very positive recent decisions of the finance ministers for fiscal flexibility and the European Central Bank’s decision to boost liquidity.

“Today we agreed on three safety nets and a plan for the recovery to ensure we grow together and not apart once the crisis is behind us,” Eurogroup president Mario Centeno told reporters after the teleconference.

(ANA-MPA)

RES auctions postponed throughout Europe

Governments throughout Europe are postponing RES auctions as a result of the coronavirus pandemic’s impact on markets.

Germany, France and Ireland have already taken steps back to protect new RES projects, currently at various development stages, according to a Green Tech Media report.

Germany had planned seven RES auctions for this year. The country has so far offered 400 MW for solar energy projects and 675 MW for wind farms, while a further 2.9 GW for onshore wind farms and 1.4 GW for solar energy facilities remain pending. Strong investment interest had been expressed prior to the postponements.

In France, a RES auction for solar energy projects has been postponed by two months. In Ireland, a session that had been planned for April 2 has now been rescheduled for April 30. Portugal has also postponed a RES auction offering 700 MW for solar energy projects.

On the contrary, Dutch authorities intend to press ahead with a RES auction at the end of this month, offering 700 MW for wind farms. Swedish multinational power company Vattenfall’s Dutch subsidiary has announced it will not participate.

 

 

 

Greek upstream investments suspended, oil crisis hits hard

The current oil crisis, prompted by a Saudi-Russian price war and lower demand amid the coronavirus pandemic, comes as the latest setback for the upstream sector. The oil price slide, during which prices have plummeted to levels as low as 25 dollars per barrel, had added to the strain already felt by investors as a result of excessive bureaucracy in the Greek market.

Upstream players, troubled by the overall uncertainty, are believed to have suspended their investment plans despite a mild market rebound over the past few days, lifting oil prices to levels between 33 and 34 dollars per barrel.

Energean Oil & Gas’ Katakolo license off western Peloponnese and the Gulf of Patras license, co-owned by Hellenic Petroleum (ELPE) and Energean, rank as Greece’s two most mature upstream projects.

An environmental study for the Katakolo license has not yet been approved by the energy ministry. Even if it had, Energean would not move ahead with the venture under the existing market conditions. Current oil price levels would simply not cover investment costs.

Just before Christmas, investors behind the Gulf of Patras license were given an 18-month extension to begin drilling at this project, taking the date to June, 2021. Regional port facilities had been deemed insufficient by the consortium. All activity for this investment has also been suspended, sources informed.

Electricity market security fund gradually being pieced together

A security fund intended to offer protection to the electricity market against an extended period of tightened liquidity is gradually being pieced together amid great difficulties and continual consultation with European Commission authorities.

An amount totaling between 500 and 600 million euros has been secured for the market’s security fund so far, according to sources.

This figure will not be enough to get the electricity market’s players through the coronavirus pandemic’s devastating financial impact, seen continuing until autumn or even the end of this year. If so, an amount of over one billion could be needed to cover electricity supplier deficit figures.

It is too big an amount to be lifted from the national budget, limited and vulnerable following a decade of recession in Greece. As a result, government officials are looking for complementary support from EU funds to establish a security fund worth a total of about one billion euros.

Deputy energy minister Gerassimos Thomas and deputy finance minister Theodoros Skylakakis are heading this task.

Electricity bill collections have fallen by 30 percent, a trajectory seen costing suppliers an overall sum of 650 million euros if the trend continues for a further three months, electricity suppliers pointed out a fortnight ago.

 

Energy Min Hatzidakis: The effort is in May to be able to return to normality

The government is gearing its efforts toward a return to normality in May but no guarantees can be given, stated Environment and Energy Minister Kostis Hatzidakis speaking to SKAI TV on Tuesday.
“The return to normality can’t be done thoughtlessly or just because we want it but will depend on the implementation of the measures and on the data,” he explained.
“We made this effort with so much discipline that nobody would have believed it so why should we ease off now? We will continue to listen to the scientists as we have done up until now,” he added.
Referring to the measures to support businesses and workers, Hatzidakis underlined that these were above the EU average, adding that the government’s aim to “save its strength” for next October and November, because the virus may return.
Asked about the “corona-bonds”, he said that the discussion is not over yet and that there are voices in this direction even within Germany. “It is  not only a matter of solidarity but it is in their own interests, because if the South collapses they won’t have any place to export to,” he said.

(ANA-MPA)

Officials forced to reexamine Crete’s energy sufficiency plan for summer

Power utility PPC and RAE, the Regulatory Authority for Energy, are currently reexamining data concerning Crete’s energy demands for this coming summer as the coronavirus pandemic is expected to severely impact tourism activity.

In response to the closure of old, high-polluting power stations on Crete, energy authorities have been planning a number of energy units to meet higher tourism-related electricity demand in the summer.

However, a revision to the plan will now probably be needed as a result of the coronavirus pandemic’s negative impact forecast for the tourism sector.

Prior to the pandemic’s outbreak, RAE, basing its calculations on data provided by distribution network operator DEDDIE/HEDNO, had concluded Cretan electricity generation needed to be bolstered by a level of between 80 and 85 MW.

PPC has already completed a tender for a 58-MW facility. RAE has also requested PPC to stage a second tender for a further 25 MW. But revisions may now be necessary.

The additional units on Crete are intended to help cover the island’s energy needs until a grid interconnection with the mainland, all the way to Athens, is completed. The grid interconnection project’s completion is scheduled for 2023.

Industrial slowdown seen impacting electricity demand

Electricity consumption level forecasts are bleak as the coronavirus pandemic is now also impacting the country’s energy-intensive industrial sector after devastating the economy’s tourism and retail sectors.

The widening problem will inevitably affect overall demand and the financial results of retail electricity suppliers.

A number of industrial enterprises have suspended their operations. These include steel company Sidenor, which has put a halt on production at five units, as well as four textile firms.

More industrial companies are likely to follow suit as the ongoing lockdown keeps much economic activity grounded. As a result, overall electricity demand is expected to drop considerably over the next few months.

The pandemic’s impact on low-voltage electricity demand has, for the time being, remained subdued. Considerably lower consumption levels in the retail and trade sectors have been offset by higher household demand driven by the government’s stay-at-home orders.

Low-voltage electricity demand in March fell by a level of between one and two percent, according to power grid operator IPTO sources. A sharper decline of approximately five percent is expected in April.

However, sharper drops over the next few months cannot be ruled out, as has been the case in other parts of Europe.

In recent weeks, electricity demand in Italy was down by 20 percent. Belgium recorded a drop of 17 percent, French electricity demand fell by 12 percent and Spain’s drop registered at 10 percent.

 

 

PPC’s deficit haunts of last July may return, support needed

Power utility PPC is in danger of falling back into a potentially devastating financial hole the company was in just over a year ago, in July, 2019, when a financial gap of approximately one billion euros needed to be covered.

Until just weeks ago, the company was moving on with an effort to wipe out this deficit figure, which had reached 957 million euros to be exact, by the end of this year. But it could now worsen as a result of the coronavirus pandemic’s impact.

Access to state guarantees worth hundreds of millions of euros will be needed if such a scenario is to be avoided.

The government has already announced a one billion-euro support package for the sector as a whole, but details remain pending. This delay is intensifying the concerns at PPC.

Electricity bill collections are expected to fall by levels of between 25 and 30 percent as a result of the coronavirus lockdown, PPC and market officials have projected.

Such a reduction over a three-month period – assuming the lockdown lasts this long – would collectively deprive Greece’s electricity suppliers of revenue worth approximately 650 million euros.

As the market leader with a retail electricity market share of 70 percent, the cost for PPC would be between 350 and 400 million euros.

Last July, PPC took a number of measures worth a total of 490 million euros for some cash flow relief, including increased tariffs.

 

Target model’s June 30 launch date headed for delay, extent unclear

The target model and energy exchange launch date, scheduled for June 30, is no longer possible, unless unforeseeable changes occur, the main issue now being the extent of the expected delay, officials agreed during a virtual conference staged on Wednesday by RAE, the Regulatory Authority for Energy.

Energy exchange and power grid operator IPTO officials took part in the session, held to evaluate preparations of the launch.

Officials admitted the target model’s delay could be over one month long. Given the August summer break, its launch may need to be made even later, they noted.

Similar thoughts were expressed during a preceding European Commission conference, on Monday, to check the target model’s progress.

Despite the extraordinary period’s accumulation of difficulties, the energy ministry still considers the existing target model launch date as official and contends it will make all efforts to achieve it.

General Electric, citing the unforeseeable coronavirus circumstances, has stated it cannot deliver a finalized platform for IPTO’s balancing market over the next few days, as had been planned.

Consequently, a trial run of market systems officially scheduled for April 10 is no longer possible, according to the energy exchange.

On the contrary, IPTO believes trial runs can still be performed without the balancing market’s finalized platform.

PPC Renewables moving ahead with investment plans despite crisis

PPC Renewables, a subsidiary of power utility PPC, has, for the time being, remained unperturbed by the extremely adverse investment conditions prompted by the coronavirus pandemic and moved ahead with green energy project plans.

The company has completed tenders offering development contracts for a 5-MW hydropower facility in Karditsa, mainland Greece, as well as the first 15-MW stage of a 230-MW solar park in Ptolemaida, northern Greece.

The winning bidders of both contracts should be announced around late April or early May, barring unexpected developments.

PPC Renewables has already launched a second tender for the Ptolemaida solar park, once again offering a development contract for 15 MW, ahead of the 230-MW project’s main tender, for 200 MW, expected in mid-April.

The company secured a price of 49.11 euros per MWh for its Ptolemaida project at an auction staged today by RAE, the Regulatory Authority for Energy.

During its construction stages, the Ptolemaida project is expected to create at least 300 jobs, while, when completed, the facility should generate 390,000 MWh, enough to cover the needs of 290,000 persons.

PPC Renewables is expected to be among the first companies to induct projects into the Target Model, in other words, contracts with consumers whose prices will no longer be determined at auctions staged by RAE, the Regulatory Authority for Energy.