Crete

Administratively set tariffs for small-PV tariffs ending

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RES and CHP units involved in auctions for tariffs as of May 1, 2024 will be subject to grid-injection restrictions as well as compulsory integration of energy storage systems, according to a draft bill just forwarded by the energy ministry for consultation.

European Commission approval will be required before these new terms can be applied in the Greek market.

The draft bill also includes a provision ending administratively-set tariffs for small-scale PVs as of May 1, 2024. Projects under a Special Program for the Development of Photovoltaic Systems at buildings are planned to be exempted from this revision.

Also, RES projects developed at areas with saturated networks or linked to mainland interconnections servicing the Cyclades islands or Crete will be subject to a December 31, 2024 deadline for administratively set feed-in tariffs.

RES investors behind small-scale PVs projects for which operating terms have already been established or for which complete applications have been submitted to RES market operator DAPEEP until April 30, 2024 will have until August 31 to submit declarations certifying their readiness to operate in order to maintain their administratively set feed-in tariffs.

Reduced 400-MW proposed for Elounda offshore wind farms

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The government has responded to strong local reaction in Crete against the country’s offshore windfarm development plan off Elounda, northeastern Crete, by proposing a smaller area that would host units with a maximum capacity of 400 MW, 57 percent less than the original plan’s capacity; remove a section of the plot facing the islet Spinalonga, in the Gulf of Elounda; and ensure visual disturbances for hotels are eliminated.

These proposed revisions, concerning the Elounda offshore area, one of ten areas included in an initial 2-GW plan for offshore wind farm development around Greece, were tabled by energy minister Thodoris Skylakakis at a meeting Friday involving representatives of EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, local officials, including the mayors of Agios Nikolaos and Sitia, as well as regional hoteliers.

It remains to be seen if the energy ministry’s proposed revisions will be enough to ease the concerns of local officials, hoteliers and residents and quell any further reaction.

The energy minister has lined up an imminent follow-up meeting with mayors and regional authorities. He is expected to offer a more extensive briefing on the potential benefits of offshore wind farm development to local communities at this follow-up meeting.

 

Visual disturbance solution sought for Crete wind farms

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EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, is seeking a technical solution that would minimize the visual disturbance of offshore wind farms off Elounda, northeastern Crete, following strong local reaction against the development of offshore wind farms.

The energy ministry is determined to push ahead with the National Offshore Wind Farm Development Plan as 90 percent of locations proposed have not raised objections. A total of ten areas have been included in an initial plan for offshore wind farm development.

The energy ministry is well aware of the fact that if it starts dropping areas it would be sending a wrong message to the market and investors, who, for some time now, have been keeping a close watch on developments.

The energy ministry intends to soon – possibly this week – engage in talks with local communities and especially in Crete, to make clear that revisions to plans will only be made if objections are justifiable.

Crete only change in offshore wind farm development plan

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A decision to partially relocate an offshore plot marked out for development of offshore wind farms off Elounda in Crete is expected to be confirmed at a meeting today between the energy ministry’s leadership and top officials at EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, following strong local reaction, energypress sources have informed.

Otherwise, the National Offshore Wind Farm Development Plan is expected to proceed without changes.

Local officials in Elounda had lodged complaints to the energy ministry and to a public consultation procedure noting the plan for offshore wind farms off Elounda could impact a number of sectors, including tourism.

A total of ten offshore plots have been included in the country’s offshore wind farm plan, whose Strategic Environmental Impact Assessment is currently being examined.

 

New ExxonMobil talks for energy deputy on Crete plans

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Deputy energy minister Alexandra Sdoukou will be holding talks with a top-ranked ExxonMobil official for the second time in ten days, focused, once again, on Crete’s offshore exploration prospects, when she meets with Dr. John Ardill, Vice President of Global Exploration at ExxonMobil, on the sidelines of the EGYPES energy conference in Egypt.

The event, being staged tomorrow and Wednesday, is expected to attract major players of the international energy market.

Sdoukou held talks on February 9 with Rochdi Younsi, ExxonMobil’s Vice President of International Government Affairs Division, at the company’s Washington office.

At EGYPES, Greece will be represented by Sdoukou, the deputy energy minister; Aristofanis Stefatos, chief executive officer at EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company; as well as Anastasios Vlassopoulos, CEO at Helleniq Upstream.

At the recent Washington meeting, Greece’s deputy energy minister discussed the next steps of a joint plan for procedures to lead to a final investment decision from ExxonMobil for drilling at offshore blocks south and southwest of Crete.

Initial results of 2D seismic surveys conducted by the ExxonMobil-Helleniq Energy consortium at these offshore Cretan plots are expected in March, when the consortium plans to inform the Greek government.

Crete seismic survey results, looking promising, in March

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Initial results of 2D seismic surveys conducted by the ExxonMobil-Helleniq Energy consortium at plots off Crete are expected in March, when the consortium plans to inform the Greek government.

If these early results are promising, the ExxonMobil-Helleniq Energy consortium is expected to seek permission from the Greek government to conduct exploratory drilling.

Back in 2022, Prime Minister Kyriakos Mitsotakis, during a visit to the headquarters of EDEY – now reformed to EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company – had announced that the country needs clarity on whether it possesses exploitable deposits. The time to know is now approaching.

Greece’s hydrocarbon prospects could go either way, though, according to some sources, preliminary results are encouraging enough for the ExxonMobil-Helleniq Energy consortium to seek permission for exploratory drilling.

Interest in EDEYEP’s program, announced over a year ago, for 2D and 3D seismic surveys at a total of six blocks, both onshore and offshore – in Corfu, the Ionian Sea, Ioannina, the Gulf of Kyparissia, and west and southwest of Crete – is now heating up again.

At present, the two offshore Cretan blocks surveyed by the ExxonMobil-Helleniq Energy consortium are attracting most interest. It has been rumored for quite some time now that Chevron, the world’s second-biggest producer of natural gas, is interested in joining this consortium.

Quite clearly, if expectations are fulfilled and rumors of significant recoverable hydrocarbon deposits are confirmed, Greece’s energy landscape will be completely reshaped.

The Cretan offshore blocks are situated at a distance from sea areas claimed by Libya, which, last January, had expressed mild protest against seismic surveys conducted southwest of Crete on behalf of the ExxonMobil-Helleniq Energy consortium.

The Greek Foreign Ministry responded by informing the Tripoli government that these seismic surveys took place in areas under Greek jurisdiction, in accordance with rules of the International Law of the Sea.

PPC’s energy-sufficiency plan for Crete forwarded to Brussels

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An energy-sufficiency plan to cover Crete’s energy needs until an electrical grid-link with Athens is completed for commercial launch, expected within 2025, is now close to being finalized and has been forwarded to the European Commission for approval, energypress sources have informed.

A remuneration formula chosen for the island’s energy-sufficiency plan involves state aid and, as a result, requires Brussels’ approval.

The energy ministry has awarded Crete’s energy-sufficiency project to power utility PPC after alternative solutions involving Heron and Motor Oil failed to make progress.

For its Cretan plan, PPC has reached an agreement with Greek construction and energy group GEK-TERNA to initially lease – for two years, until 2025, and then purchase – the latter’s Heron I, a 147-MW gas-fired power plant, currently stationed in the Viotia area, northwest of Athens.

PPC plans to have the Heron I power plant transferred and reinstalled on Crete in time for this coming summer, when energy demand typically peaks.

A decision was reached, at a recent energy ministry meeting, to cover 75 percent of the power plant’s investment cost, until 2025, through the public service compensation (YKO) account, accumulating related surcharges added to all electricity bills.

The other 25 percent of the investment cost is planned to be covered, between 2025 and 2028, through a remuneration mechanism for emergency reserve units.

The energy ministry is soon expected to bring to Parliament a legislative revision covering the energy-sufficiency plan for Crete.

 

Offshore wind farm plan proving trickier than expected

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Implementation of the national offshore wind farm development program is proving to be trickier than expected, according to competent market sources, as local opposition and a number of constraints have raised questions over the feasibility of the initial plan.

Sites designated to host offshore wind farms are sufficient for the plan’s first wave of facilities until 2030, but the spatial sufficiency for further expansion, beyond 2030, is questionable.

The designation of offshore plots has been made by selecting marine areas situated at least six nautical miles, or 11 km, off coastlines, which, sources told energypress, ends up being inadequate if capacity targets of between 2 and 3 GW are to be achieved beyond 2030. An expansion of marine territory will be needed, the sources noted.

On the other hand, this distance criterion has also raised concerns among various local officials who fear offshore wind farm proximity could have an adverse effect on local economies.

Municipal and regional committees, tourism industry associations, hoteliers and a number of environmental groups are all on high alert and are even considering to take legal action in order to challenge the development of offshore wind farms. Strongest reaction, so far, has come from officials in Crete’s northeast, Ikaria and Corfu.

According to a preliminary national plan, an offshore wind farm target of 1,900 MW has been set for 2030, while a 6,200-MW target has been set for 2035. Further ahead, this plan’s goal for 2050 is 17,300 MW.

 

Ministry set to table bill for Crete’s energy sufficiency plan

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The energy ministry is set to submit to Parliament a legislative revision covering Crete’s energy sufficiency plan, both before and after the island’s electrical grid interconnection with Athens, which is scheduled for commercial launch in the summer of 2025, energypress sources have informed.

The revision will pave the way for power utility PPC, which has undertaken the task of ensuring Crete’s energy sufficiency, to proceed with its plan.

PPC has reached an agreement with Greek construction and energy group GEK-TERNA to initially lease, until 2025, and then purchase the latter’s Heron I, a 147-MW gas-fired power plant, currently stationed in the Viotia area, northwest of Athens.

PPC plans to have the power plant transferred and reinstalled on Crete in time for this coming summer, when energy demand typically peaks.

A decision was reached, at a recent energy ministry meeting, to cover 75 percent of the power plant’s investment cost, until 2025, through the public service compensation (YKO) account, accumulating related surcharges added to all electricity bills.

The other 25 percent of the investment cost is planned to be covered, between 2025 and 2028, through a remuneration mechanism for emergency reserve units.

The support formula for Crete will need to be approved by the European Commission as it is regarded as state aid. The energy ministry will begin related procedures with Brussels as soon as its legislative revision is ratified in Greek Parliament.

PPC needs to take swift action to ensure Crete’s energy sufficiency for this coming summer, when the island’s energy deficit is projected to reach 190 MW.

 

RAAEY energy sufficiency plan for non-interconnected islands

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The energy ministry is close to finalizing a plan to resolve energy sufficiency issues of Greece’s non-interconnected islands following a series of meetings and exchange of opinions with power utility PPC, power grid operator IPTO, distribution network operator DEDDIE/HEDNO, and RAAEY, the Regulatory Authority for Waste, Energy and Water, energypress sources have informed.

RAAEY, the sources noted, is currently preparing a plan for the ministry that contains details of a required legislative revision, which, when ratified, will enable PPC to proceed with its energy sufficiency plan for the non-interconnected islands.

The power utility has prepared a comprehensive plan designed to meet the needs of these islands until 2030, using everything from power coupling and gas turbines to batteries. The cost of these solutions is expected to range between 200 and 500 million euros, depending on the payback period and whether some units will be purchased, in addition to leases.

PPC has already reached an agreement with Greek construction and energy group GEK-TERNA for the purchase and transfer to Crete of the latter’s 147-MW gas-fired power plant, currently stationed in the Viotia area, northwest of Athens.

PPC, which has undertaken the task of ensuring energy sufficiency on Crete, plans to have the power plant transferred and reinstalled on the island in time for this coming summer, when energy demand typically peaks.

At a meeting chaired by the energy ministry, a decision was reached to cover 75 percent of the power plant’s remuneration through the public service compensation (YKO) account, accumulating related surcharges added to all electricity bills.

PPC agrees to buy GEK-TERNA power plant for coverage of Cretan needs

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Power utility PPC has reached an agreement with Greek construction and energy group GEK-TERNA for the purchase and transfer to Crete of the latter’s 147-MW gas-fired power plant, currently stationed in the Viotia area, northwest of Athens.

PPC, which has undertaken the task of ensuring energy sufficiency on Crete, plans to have the power plant transferred and reinstalled on the island in time for this coming summer, when energy demand typically peaks.

PPC has included Heron I, the GEK-TERNA gas-fired power plant, into its package of solutions for energy sufficiency on Crete, both before and after the completion of a grid interconnection project to link Crete and Athens.

PPC and GEK-TERNA are now expected to complete their agreement imminently so that the the power plant’s transfer and reinstallation procedure can commence as soon as possible.

As reported by energypress earlier this week, the two companies had been engaged in advanced negotiations for quite some time.

An agreement for PPC’s purchase of the power plant was apparently reached by the two sides a while ago, but a remuneration formula for the power utility’s operation of the power plant on Crete, still not fully linked to the mainland grid, had remained pending.

At a meeting chaired by the energy ministry, a decision was reached to cover 75 percent of the power plant’s remuneration through the public service compensation (YKO) account, accumulating related surcharges added to all electricity bills. PPC will cover the other 25 percent.

The European Commission still needs to approve the remuneration formula as it involves state aid.

 

PPC’s Crete energy sufficiency plans include GEK-TERNA unit

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Measures planned by power utility PPC to help cover the energy needs of Crete, Greece’s biggest island, before and after the completion of a grid interconnection project to link Crete and Athens, include Heron I, a 147-MW gas-fired power plant currently owned by Greek construction and energy company GEK-TERNA.

PPC, which has undertaken the task of ensuring energy sufficiency on Crete, has reached advanced negotiations with GEK-TERNA to purchase the Heron I power plant and transfer it from its current Viotia location, northwest of Athens, to Crete.

The power plant’s installation on Crete could be completed in time for 2025’s summer season, a period when energy demand typically soars on the Greek islands as a result of tourism.

Heron I’s launch on Crete in the summer of 2025 would help safeguard the island from any energy insufficiencies should the commercial launch of the Crete-Athens grid interconnection, scheduled for the same summer, be delayed by a few months. Such a delay would leave Crete short of 220 MW, energypress sources informed. Heron I is also equipped to run on diesel.

In the meantime, PPC needs to take swift action to ensure Crete’s energy sufficiency for this coming summer, when the island’s energy deficit is projected to reach 190 MW.

Small-scale Cyclades PVs nearing readiness to operate

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Small-scale RES projects of up to 400 kW that had undergone a bidding process for tariffs through a RES auction organized by the distribution network operator DEDDIE/HEDNO to cover the Cyclades, along with equivalent auctions for projects in the Peloponnese and Crete, are nearing readiness for operation.

A follow-up procedure offering finalized connection terms to these Cyclades RES projects has begun and is expected to be completed next week, when all 51 projects for which successful bids had been submitted to the Cyclades auction should have received their connection terms, energypress sources informed. These 51 projects represent a total capacity of 18 MW, the sources added.

The energy ministry, as previously reported, has decided to end administratively-set tariffs for small-scale RES projects a year ahead of schedule. A relevant bill is expected to soon be submitted to Parliament.

Under the resulting system, investors behind new RES projects will need to participate in RES auctions to secure their tariffs, which will be lower compared to administratively-set tariffs.

However, small-scale RES projects in the Cyclades will be exempted from the new system and will still be able to secure administratively-set tariff agreements with DAPEEP, the RES market operator. These projects will also be exempted from substantial grid-injection cut rules.

The outcome of RES auctions concerning small-scale projects in the Peloponnese and Crete has been put on hold in anticipation of a court ruling following charges filed by plaintiffs alleging foul play.

TSOs preparing power sufficiency plans for the islands

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The country’s TSOs are planning a transitional strategy ensuring electricity supply for the country’s non-interconnected islands still not linked to the mainland grid, as well as a second plan that would boost production capacity and serve as back-up once subsea cable interconnections linking non-interconnected islands have begun operating.

The transitional plan, the most urgent of the two initiatives, is the responsibility of distribution network operator DEDDIE/HEDNO and concerns providing energy coverage for islands to be interconnected as part of the fourth phase of the Cyclades interconnections, plus the Dodecanese and northeast Aegean islands, until power grid operator IPTO has completed its interconnection projects linking all these regions with the mainland.

Development of these projects will need to be synchronized with power utility PPC’s gradual withdrawal of old power plants it operates on islands, when they experience functional issues. Spare parts for these units, now outdated, are difficult to find.

PPC intends to gradually withdraw 32 old power plants with a total capacity of approximately 50 MW from non-interconnected islands. The power utility will do likewise with old facilities on Crete.

Two-year extension sought for Cretan power market model

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The energy ministry has forwarded a two-year extension request to the European Commission for its Cretan electricity market model.

Brussels had approved the model until the end of 2023, but the ministry now needs an extension until the end of 2025 as a result of delays in the development of the Crete-Athens grid link. Its delay has been attributed to licensing delays and pandemic-related restrictions.

The project’s delays have made it necessary to extend the current model, which was launched November 1, 2021 to coincide with the commercial launch of the Crete-Peloponnese link, the first segment of the Crete-Athens link.

Greek power grid operator IPTO expects work on the Crete-Athens link to be completed at the end of 2024 and be ready for its commercial launch in mid-2025, following testing.

Power utility PPC plans to withdraw 41 power plants operating on non-interconnected islands by 2028. Nine of these power plants are on Crete. PPC intends to withdraw five of its Cretan power plants, offering a capacity of approximately 60 MW, by 2025.

 

Great Sea Interconnector development to begin in 2024

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Preliminary work on the Greece-Cyprus-Israel electricity interconnection, whose Cyprus-Israel segment has been named the Great Sea Interconnector, is planned to commence in 2024.

Development of a segment stretching from Crete to Cyprus is soon expected to get underway, while the development prospects of the project’s section from Cyprus to Israel are approaching readiness.

Also, as noted by Greek power grid operator IPTO’s chief executive Manos Manousakis in recent comments to Cypriot media, the Greek power grid operator plans to sign an agreement with Siemens late in 2024 for the construction of two converter stations required by the Cypriot and Cretan grids as part of the project’s development.

IPTO and Siemens have already signed an agreement concerning preliminary studies for these converter stations, Manousakis informed.

The IPTO chief, responding to a journalist’s question, informed that, based on the company’s Crete-Athens grid link experience, the Crete-Cyprus section of the project would require between four and five years to be completed from the date a final investment decision has been taken, essentially meaning a 2029 delivery date is likeliest.

The Cypriot and Israeli regulatory authorities still need to reach an agreement so that the Cyprus-Israel segment of the project can be considered sustainable through secured revenue.

The Cypriot State is expected to enter the Great Sea Interconnector, an IPTO subsidiary, with an initial sum of approximately 100 million euros.

The project is budgeted at 1.9 billion euros, with 657 million euros secured through the Connecting Europe Facility.

Crete-Athens power grid link ‘to be launched mid-2025’

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Development of an electrical grid interconnection to link the Cretan and Athenian systems is expected to be completed a year from now, while the project’s commercial launch is slated for mid-2025, following testing, Greek power grid operator IPTO’s chief executive Manos Manousakis has told an OT (Oikonomikos Tahydromos) Forum.

Also, two sections of a grid interconnection being developed at the Cyclades islands, one linking Naxos and Santorini, the other Milos, Folegandros and Serifos, are expected to progress at the aforementioned rate, the IPTO chief executive informed the event.

Once the two Cyclades segments are completed, all the Cyclades islands will be interconnected with the Greek mainland.

An interconnection project to link the Dodecanese islands with the mainland is planned to follow. Work is expected to begin with a segment from the Dodecanese to the Peloponnese, though other options are also being considered, the IPTO head noted.

Greece-Cyprus-Israel power grid link nearing development

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The Greece-Cyprus-Israel electricity interconnection, now named the Great Sea Interconnector, is nearing development, its prospects driven by new investors and, above all, increased funding.

The project’s next big steps will develop along three fronts. Firstly, Norwegian company Nexans will install the cable section of the Crete-Cyprus interconnection, which, according to Manos Manousakis, CEO of Greek power grid operator IPTO, is imminent.

Secondly, the Greek operator will hold discussions with three prospective investors, namely the Cypriot State, Israeli fund Aluma, and TAQA, the Abu Dhabi National Energy Company, for their participation in the project.

Thirdly, funding details needs to be shaped. These details remain unclear at this stage as the project’s shareholders, and their stakes, have yet to be finalized.

The consortium could feature the three aforementioned candidates, along with IPTO, but it is still too early to tell if this could result in respective 25 percent stakes for all four.

A 657 million-euro sum from the project’s 1.9 billion euro has been secured through the Connecting Europe Facility. The remaining 1.3 billion euros will be raised through bank loans, both through the EIB and commercial banks, as is customary for this type of project.

Nexans is expected to begin installing the project’s cable for the Crete-Cyprus section as soon as a deposit is provided by CINEA, the European Climate, Infrastructure and Environment Executive Agency, managing decarbonization and sustainable growth.

Inaugural offshore wind farm auctions in ’27, 6 areas likeliest

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Greece’s first auctions for offshore wind farm areas are expected to take place in 2027 with six areas off Crete, Gyaros, Rhodes and Evia considered the likeliest to be offered to investors as part of the country’s efforts for an offshore energy portfolio of 1.9 GW by the end of the decade, energy ministry officials have informed.

EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, overseeing the effort, also set, late last year, 2027 as the inaugural year of these auctions.

The Greek government recently reduced the National Energy and Climate Plan’s 2030 capacity target for offshore wind farms to 1.9 GW from 2.7 GW.

EDEYEP has scoured Greek waters for locations suitable for development of offshore wind farms. Areas making the grade have been included in a National Offshore Wind Farm Development Program, presented just days ago by the company, along with a Strategic Environmental Impact Assessment.

Flora Karathanasi, an EDEYEP consultant, named six of ten prospective offshore areas for initial development that would contribute to the 2030 target. The six areas are located northeast of Rhodes; around Gyaros, in the northern Cyclades; off Agii Apostoli in eastern Evia; off northeastern Crete, between Agios Nikolaos and Sitia; and off eastern Crete.

According to the National Offshore Wind Farm Development Program, five of these areas are planned to host floating wind turbines, while only one, off northeastern Crete, will host fixed-foundation wind turbines.

The program’s presentation coincides with a heightened level of international RES investment interest in Greek offshore areas.

Swedish-headquartered Hexicon’s Head of Business Development, Henrik Baltscheffsky, recently told energypress that Greece can become a European focal point for floating wind energy, a view he reiterated days later at the 5th Renewable & Storage Forum in Athens.

Also, the Greek subsidiary of Denmark’s Copenhagen Offshore Partners is scheduled to launch its Athens office this Thursday. COP is partnering with the fund management company Copenhagen Infrastructure Partners (CIP), with which Greece-based industrial and energy group Mytilineos shares an alliance.

In addition, Corio Generation, a subsidiary of Australian global financial services group Macquarie, has also expressed an interest to enter Greece’s nascent offshore wind sector. It has announced the formation of a joint venture with Greek company Globalsat.

These moves come following a series of like-minded announcements by domestic companies with major international players (Terna Energy – Ocean Winds; Helleniq Energy – RWE; Intrakat – Parkwind; Motor Oil – Masdar).

Ruptured Israeli-Turkish ties to reshape regional energy map

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The rupture in Israeli-Turkish ties, vanishing any hope of Turkish president Recep Tayyip Erdogan’s unlikely proposal for the transfer of Israeli gas to Europe via a Turkish transit route, threatens to rebalance ties in the wider region and reshape the east Mediterranean’s energy map. Hydrocarbon exploration plans and major projects in the east Mediterranean will be impacted.

As an initial consequence, Erdogan’s open support for Hamas in the Israel-Gaza war ends any hope of Turkish collaboration with Israel on energy interests for a very long time.

Up until the outbreak of the Israel-Gaza war earlier this month, the Turkish president had seized on every opportunity to claim a role for Turkey as a constructive player on the east Mediterranean’s energy map.

Erdogan had proposed a closer energy partnership with Israel during a meeting with Israeli prime minister Benjamin Netanyahu in New York last month, even though such a prospect would have been highly improbable, given Israel’s mistrust of Turkey.

The latest deterioration in Israeli-Turkish ties provides Cyprus and Greece with an opportunity to establish themselves as trusted transit partners for transportation of Israeli natural gas to Europe.

Turkey could now reemerge as an aggressive player in the region, which could prompt Ankara to engage in illegal hydrocarbon exploration and drilling at undefined areas, as was the case in 2020, or even obstruct exploration and drilling plans by ExxonMobil consortium off Crete, testing Greek-Turkish ties.

Operator HEDNO fined €1m by RAAEY for PV auction issues

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Distribution network operator DEDDIE/HEDNO has been handed a fine of 1 million euros by RAAEY, the Regulatory Authority for Waste, Energy and Water, over irregularities at PV auctions offering connection terms for the networks of the Peloponnese and Crete, which, the authority noted, were caused by the operator’s failure to ensure bidders conditions of equality and transparency during the auction, held online between October 21 and 25 last year.

The operator has the right to appeal within a 30-day period of publication or notification of the decision.

The energy ministry now faces the task of needing to manage this potentially contentious issue, as investors are believed to be preparing to take legal action against the operator.

EastMed pipeline project still viable, Edison CEO says

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ROME (Reuters) – A project to build a 2,000 km pipeline to bring natural gas from East Mediterranean fields to Europe is still alive, the CEO of Italian energy group Edison (EDNn.MI) said on Friday.

Edison CEO Nicola Monti said that the group, which is one of the promoters of the pipeline, was actively talking with Cyprus and Israel about the project.

Last month, the energy minister of Cyprus told Reuters the country was proposing a shorter pipeline to bring gas from Israel’s East Mediterranean fields to the island where the gas could be partially liquefied to be transported to the European markets.

The shorter connection could be seen as an alternative to the more ambitious EastMed pipeline.

“A link between Israel and Cyprus can be a first portion of the (EastMed) pipeline we are promoting. Because from Cyprus we could then connect with Crete and Greece,” Monti said, speaking with journalists on the sidelines of a meeting of energy industrial lobby Confindustria Energia.

He said he believed that the total costs of building the EastMed pipeline would be lower than the investment needed to build a shorter Israel-Cyprus connection, a liquefaction plant and the expenses of shipping the gas to European markets.

Reporting by Francesca Landini Editing by Keith Weir

Offshore wind farms plan among first tasks for new gov’t

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A national plan for the development of offshore wind farms is one of the first tasks that will need to be taken on by the next energy ministry, to be appointed following the upcoming second round of voting in Greece’s legislative election.

Prior to the election’s first round on May 21, the ruling center-right New Democracy party had prepared this plan’s fundamentals, marking out five areas to host Greece’s first phase of offshore wind farms, in the north and central Aegean, as well as off Crete.

Also, discussion on the plan with the Hellenic National Defence General Staff had reached an advanced stage.

As a next step, the new administration’s energy ministry must approve the national plan for offshore wind farms, and a related joint ministerial decision will need to be issued by numerous ministries involved, so that authorities can start preparing a Strategic Environmental Impact Assessment.

The area off Alexandroupoli is planned to host pilot projects offering a total capacity of 600 MW. The Copelouzos group has already secured a 216-MW production license for offshore parks in this area. In addition, it appears that three areas have been marked out east of Evia, close to the mainland and in the wider Dodecanese area, while a fifth area is situated off eastern Crete, between Sitia and Xerokampos.

The plan’s first stage involves offshore wind farms promising to offer a total capacity of 2.1 GW.

 

PPC gas turbine plants on Crete given permit extensions

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Power utility PPC has received production license extensions until the end of the year for two gas turbine power plants with a total capacity of 27.95 MW on Crete, at Linoperamata, west of Heraklion, and Chania.

The decision, by RAAEY, the Regulatory Authority for Waste, Energy and Water, was made following a request submitted by PPC on the grounds of ensuring uninterrupted energy supply to Crete until the completion of a second electrical interconnection linking the island with Athens.

In granting production license extensions for the two PPC power plants, RAAEY presumes this second Crete-Athens grid interconnection will have been completed by the second half of this year.

Crete’s installed net capacity of thermal plants currently stands at 600 MW, while demand on the island in the coming years is expected to create serious electricity supply security issues, RAAEY noted.

The need for production capacity availability on Crete depends on the completion of the two phases of the island’s interconnection with the mainland, representing a finalized solution for the long-term security of the island’s electricity supply, the authority noted.

This interconnection’s first phase, linking Crete with the Peloponnese, was completed in 2021.

 

Crete set for hybrid RES station installations offering 120 MW

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An energy ministry decision, either imminent or already signed, will pave the way for the installation of hybrid RES stations on Crete offering a total capacity of 120 MW, energypress sources have been informed.

This ministerial decision comes as a follow-up to legislation for a support framework concerning the development of RES facilities equipped with energy storage units on the Greek islands, a plan endorsed by the European Commission.

It is divided into three sections. Crete belongs to the framework’s second section, while the plan’s first section includes small islands, such as Gavdos, not planned to be incorporated with the mainland grid through power grid operator IPTO’s interconnection program. The third section of the plan concerns islands now undergoing interconnection procedures.

The 120 MW in hybrid stations to be installed on Crete will receive tariffs determined administratively rather than through auctions, as the island needs to secure energy sufficiency as soon as possible, leaving no time for competitive procedures.

Of Crete’s 120 MW in prospective hybrid stations, four projects offering a total capacity of 84.45 MW lead the race for securing tariffs, as their licensing procedures have reached an advanced stage.

Five areas selected for first stage of offshore wind farms

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Five areas marked out to host Greece’s first phase of offshore wind farms, planned to offer a total capacity of 2.1 GW, are located in the north and central Aegean, as well as off Crete.

The area in the north is situated off Alexandroupoli, three areas are close to mainland Greece and the wider Dodecanese area, while a fifth spot is off eastern Crete, at an area between Sitia and Xerokampos.

The area off Alexandroupoli is planned to host pilot projects offering a total capacity of 600 MW. The Copelouzos group secured a 216-MW production license for offshore parks in this area back in 2012. Contracts for their development will not undergo any competitive procedures as these projects have been classified as pilot projects.

The three areas chosen to host offshore wind farms in the central Aegean will each host wind farms with respective capacities of 300 MW for a total of 900 MW.  It has not yet been determined if these offshore wind farms will be located close to the mainland or in the wider Dodecanese area.

The wind farm off Crete, near the northeastern shoreline, is planned to offer a total capacity of 600 MW.

Environmental, spatial, social, economic and geopolitical criteria, along with wind intensity, a decisive factor determining the degree of return on investment, were taken into consideration when selecting the aforementioned areas.

Power grid operator IPTO has already delivered precise data on the grid absorption potential at each of these clusters. However, the plan still needs to be approved by the Hellenic National Defence General Staff.

Wholesale power price weekly average drops to 84-week low

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The country’s wholesale electricity price weekly average dropped considerably last week to a level just over the psychological barrier of 100 euros per MWh, at 106.49 euros per MWh, an 84-week low, reflecting a downward trajectory in electricity demand.

Last week’s market clearing price fell by 17.13 percent compared to a week earlier, peaking at 186.55 euros per MWh and registering a low of 7.71 euros per MWh. Last week’s highest market clearing price average, for a day, was registered on Sunday, April 2, reaching 127.50 euros per MWh.

Electricity prices in Europe last week ranged between 54 and 133 euros per MWh, while prices yesterday swung from 62 to 142 euros per MWh.

Warmer weather last week led to a reduction in electricity demand, which, along with elevated RES output, pushed prices lower.

In Greece, weekly electricity demand fell last week but remained slightly above a level of 0.8 TWh, at 813 GWh. The energy exchange recorded total electricity demand for the week at 899 GWh, a figure taking into account export outflow of 86 GWh.

RES units averaged a daily output of 58 GWh last week for a higher share of the energy mix, which reached a weekly average of 52 percent. RES units produced a total of 405 GWh last week, a 55 percent increase compared to a week earlier.

Natural gas-fueled electricity’s share of the energy mix last week was 20 percent, net imports followed at 15 percent, lignite-fired generation represented 11 percent and major-scale hydropower units represented 2 percent.

Low-voltage electricity demand, including households, represented 54 percent of overall demand in Greece last week. Medium-voltage demand represented 19 percent of demand and high-voltage demand represented 18 percent. Demand concerning the Cretan grid represented 6 percent and grid losses reached 3 percent.

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

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

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

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

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

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

GAP Interconnector promising additional Greek-Egyptian grid link

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

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

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

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

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

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

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

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

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

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

Wholesale electricity prices up over past week

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Wholesale electricity price levels rose over the past week, the average market clearing price rising by 4.76 percent compared to the previous week to 151.95 euros per MWh, with upper and lower levels reaching 218.35 and 80.16 euros per MWh, respectively.

The past week’s highest average market clearing price was recorded on March 2, reaching 160.60 euros per MWh.

During the same period, wholesale electricity price levels in other parts of Europe ranged from 136 to 195 euros per MWh, while prices yesterday ranged from 141 and 167 euros per MWh.

Electricity demand remained low, for this time of the year, while lower RES and hydropower unit output led to a slight increase in prices at the Hellenic Energy Exchange, according to an analysis by IENE, the Institute of Energy for Southeast Europe.

RES units averaged a daily output of 36 GWh for an energy-mix share of 29 percent over the past week, official data showed. RES output totaled 251 GWh for the week, an 11 percent reduction compared to a week earlier.

Hydropower facilities covered 2 percent of demand, injecting just 16 GWh into the grid, 14 percent less than a week earlier. Natural gas-fueled power stations generated 286 GWh over the past week, covering 33 percent of demand, while lignite-fired power stations produced 145 GWh to cover 17 percent of electricity demand.

Electricity demand remained virtually unchanged over the past week, at 897.131 MWh, compared to 897.306. It peaked at 138.128 MWh last Thursday, while the week’s low was recorded on February 27, at 107.471 MWh.

The low-voltage category, including households, represented 56 percent of electricity demand over the past week, the medium-voltage category represented 19 percent of demand, the high-voltage category, or energy-intensive industry, represented 17 percent, 5 percent concerned the Cretan grid, while electricity losses of 3 percent were also recorded.