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.
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.
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.
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.
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.