HEDNO legally shielded in case of transformer-upgrade effects

The energy ministry is preparing a legislative revision designed to offer distribution network operator DEDDIE/HEDNO legal protection against transformer short circuits.

The revision, likely to be attached to a forthcoming urban planning bill, will oblige medium-voltage consumers to take appropriate action protecting their installations from damage that could be caused by short-circuit level increases.

DEDDIE/HEDNO is currently staging preliminary studies concerning an upgrade of the electrical distribution network’s transformers.

The energy ministry’s legislative revision will ensure that the distribution network operator will be spared of any legal issues should this upgrade have adverse effects on installations of medium-voltage consumers located up to 3 km from respective substations.

The ministry’s legislative revision will require consumers to inspect their electrical installations ahead of the operator’s upgrade of transformers. Should any issues be identified during these checks, consumers will need to replace any necessary equipment at their expense.

According to sector officials, the revision is essentially a precautionary measure as electrical equipment currently being used is relatively modern – less than 20 years old – with specifications to withstand increased short-circuiting levels.

Transformers in areas where investors have expressed interest to install RES facilities will be given priority by the distribution network operator during its upgrade process.

 

Grid fee hike if producers take on 50% of expansion costs

RAAEY, the Regulatory Authority for Waste, Energy and Water, has warned the energy ministry that a decision it has reached to make electricity producers responsible for half the cost of expanding electrical distribution and transmission networks would significantly increase regulated network usage surcharges included in electricity bills.

The authority forwarded a letter to the ministry last Thursday to highlight the dangers of this measure, which has been facilitated by a legislative revision ratified back in the summer of 2022.

Surcharges concerning the country’s transmission network, managed by power grid operator IPTO, would be particularly affected, RAAEY noted in its letter.

However, the distribution network, operated by DEDDIE/HEDNO, the distribution network operator, would be less exposed to surcharge increases as it caters to RES producers and concerns lines that do not serve consumers but are connected to privately owned high or medium-voltage substations, new or existing, as well as network extension projects of less than 100 meters in length for connecting individual generators.

RAAEY green light for network upgrade, five projects rejected

RAEEY, the Regulatory Authority for Waste, Energy and Water, has approved distribution network operator DEDDIE/HEDNO’s network development plan for 2022 to 2026, but, in doing so, has rejected some of the plan’s projects.

DEDDIE/HEDNO submitted a 2.2 billion-euro development plan comprising 139 projects, its objective being to develop “a modern network for all”.

RAAEY rejected five projects, budgeted at a total of 143.9 million euros, from the operator’s five-year development plan, including a 110 million-euro archive digitization project, as well as a 19.8 million-euro cyber security plan.

 

DEDDIE staging tender to upgrade 10 distribution system substations

Distribution network operator DEDDIE/HEDNO is staging a tender for projects to digitally upgrade and reinforce ten of the network’s substations. The projects are budgeted at 7.16 million euros, including VAT, while bidders face a July 11 deadline, following an extension that has been granted.

More specifically, the project concerns the upgrade of circuits and implementation of a digital communication network at ten 150kV/MT substations.

Project details to be taken on by the winning bidder will range from provision of new digital control and protection units, plus a variety of other equipment, for the upgrade of control and protection panels at power supply units, to system trial runs.

DEDDIE/HEDNO has increased its investments by three-and-a-half times over recent years to upgrade the distribution network and make it more resilient, the operator’s CEO Tasos Manos pointed out in a recent article published by energypress.

 

 

HEDNO plans 800-MW network boost to facilitate RES projects

Distribution network operator DEDDIE/HEDNO is planning a series of significant network upgrades to facilitate new RES project additions to the grid through the availability of an additional 800-MW capacity over the next few years.

Many of these network upgrades, set to commence, are investments that will be co-funded by Greece 2.0, the National Recovery and Resilience Facility.

DEDDIE/HEDNO stands to receive 30 million euros from the RRF for capacity upgrades at selected medium and high-voltage substations around the country, either through transformer additions or full replacements.

Many of the operator’s prospective network upgrades are expected to be completed over the next 12 months, energypress sources have informed. All operator upgrades inducted into the RRF are planned to be completed by the fourth quarter of 2025.

The capacity of substations in the Peloponnese and Epirus regions is planned to be boosted by 250 megavolt-amperes, the wider Athens area will get a 100-MVA boost, substations in central Greece are expected to receive a 200-MVA lift, while substations in the country’s Macedonia and Thrace regions are headed for a 250-MVA capacity boost.

DEDDIE plans 650 MW network capacity boost for RES units

Distribution network operator DEDDIE/HEDNO has announced a tender for the procurement of 15 transformers needed for a 650-MW network capacity boost that would facilitate new RES units, a project budgeted at 21.24 million euros.

According to sector officials, the installation of transformers to existing substations represents a solution that would offer the distribution network an immediate capacity increase and enable the addition of new RES units.

It is estimated that no more than 12 months would be required to install the needed transformers, whereas the replacement of substations with new, upgraded facilities would take far longer and cost significantly more. Also, the licensing procedure for environmental permits concerning installation of transformers is far swifter that it used to be.

Substations in northern Greece’s west Macedonia region will be given priority, sources informed.

 

HEDNO executive bonuses excluded from operating costs

RAE, the Regulatory Authority for Energy, has forbidden the operating-expense inclusion of bonus amounts offered by distribution network operator DEDDIE/HEDNO to its executives, a decision reached through the authority’s approval of the operator’s allowed regulatory income for 2021 to 2024 and required revenue for 2021.

The bonus amounts set aside by the operator for executives are worth a total of one million euros, for one year.

RAE rejected the inclusion of this amount in HEDNO’s operating expenses by pointing out that bonus payments for executives do not offer any benefits to users of the distribution network.

Operator network boost for 1,750 MW in new RES entries

Distribution network operator DEDDIE/HEDNO will use Recovery and Resilience Facility (RRF) funds to cover a considerable proportion of an investment for capacity boosts at certain existing low and medium-voltage substations around the country to facilitate the entry of new RES units.

The capacity boost at these substations, it is estimated, will enable grid entry for new RES units with a total capacity of approximately 1,755 MW.

This prospective RES addition represents nearly 40 percent of the 4,640 MW in new RES unit entries planned for the achievement of National Energy and Climate Plan (NECP) RES penetration goals.

This DEDDIE/HEDNO investment will cost close to 30 million euros, of which 12 million euros will stem from the RRF.

Substations in the Peloponnese and Epirus, northwestern Greece, will be boosted by 250 MVA. Substations in the wider Athens area will be boosted by 100 MVA, such facilities in central Greece will be boosted by 200 MVA, and Macedonia and Thrace units in the north will be boosted by 250 MVA.

All project contracts are expected to have been finalized by the fourth quarter of 2023, while the projects are scheduled to be completed by the fourth quarter of 2025.

 

PPC’s distribution network transfer to DEDDIE to pave way for 49% sale

The energy ministry is preparing a legislative revision for the transfer of power utility PPC’s distribution network-related assets to subsidiary DEDDIE/HEDNO, the distribution network operator, required for the sale of a 49 percent stake in the latter.

The board at PPC recently reached a decision on the matter, paving the way for the energy ministry to prepare the legislative revision.

As previously reported, PPC has commissioned professional services company Grant Thorton for the asset evaluation, expected in August.

The legislative revision for the transfer of distribution network-related assets to HEDNO/DEDDIE is required as, until now, PPC, by law, has been  permitted to incorporate the subsidiary’s financial results into the group results and also make balance-sheet entries of EBITDA figures concerning the operator.

According to the privatization’s schedule, the nine participating bidders, leading international funds, will submit binding offers within the first week of August.

Dates will then immediately be set for a general shareholders’ meeting for approval of the transfer of assets and the board’s approval of the preferred bidder.

Assuming procedures are not delayed, the sale of DEDDIE/HENO’s 49 percent should be completed within the third quarter of this year.

PPC’s board plans to focus on its international expansion strategy once this sale has been completed.