Three key factors pivotal for offshore wind farm development

Spatial planning-licensing, grid connectivity and the remuneration formula for investors are three key factors pivotal to the development of the country’s offshore wind farm industry, investors and authorities agree.

Speaking at an event staged yesterday by ELETAEN, the Greek Wind Energy Association, the energy ministry’s secretary-general Alexandra Sdoukou stressed that the right formula for the sector’s development needs to be based on these three factors.

This industry’s course abroad, so far, has shown that a variety of options can be adopted for each of these factors. Fellow European countries have followed a range of paths, often contradictory. Greece’s energy ministry will need to seek solutions that best suit local conditions.

The spatial planning-licensing options range from a liberal model adopted by the UK, offering offshore wind farm investors maximum freedom to develop their investment plans, as they deem best, including in choice of appropriate location for maximum commercial potential, and, at the other end, a state-regulated model, as practiced in countries such as Denmark and the Netherlands. In this latter case, state regulatory authorities are responsible for determining installation locations and capacities, through studies of their own, before staging auctions.

ELETAEN’s proposal favors a mixed approach, through which the state would initiate the process by allotting wider areas for offshore wind farm development.

The wind energy association also favors a mixed approach for network connectivity that would require power grid operator IPTO to develop main lines in areas designated by the state for offshore wind farm installations.

Local authorities and players still appear to disagree on whether non-auction fixed tariffs will need to be offered to investors as a catalyst for this industry during its early stage of development.

Sdoukou, the energy ministry’s secretary-general, did not rule out such an approach at yesterday’s ELETAEN event. But, regardless of whether a preliminary stage of non-auction fixed tariffs will be offered, all sides seem to agree that tariffs, later on, will be exclusively made available to offshore wind farm investors through auctions.

 

Danish waste-to-energy model, China offers examined by PPC

Electricity production through virtually zero-emission waste combustion, a method adopted in Denmark, is one of a number of options being examined by the Greek power utility PPC as part of the country’s decarbonized future.

PPC’s existing coal generators, headed for closure, imminently, could be transformed into waste-to-energy plants.

PPC has received proposals from Chinese companies. Cost and environmental matters will be key factors in any decisions made by Greek officials.

Joint ventures could be formed to utilize the output of waste management PPPs (Public Private Partnerships) in Greece. Three such facilities currently exist in the country but more are expected to open in the near future.

The positions of local communities in lignite-dependent regions, such as west Macedonia, in the country’s north, and the price of waste-generated electricity will be pivotal.

Denmark’s Copenhill waste-to-energy plant, possibly the world’s most advanced such facility, was launched last month. It is situated in the heart of Copenhagen.

Designed as a lush downhill slope to host skiing and other recreational activities, the Copenhill facility processes the waste of 550,000 homes and 45,000 businesses, providing electricity and heating for 150,000 homes. The unit is designed to take in approximately 400,000 tons of waste annually for combustion.