PPC gains 3% in retail market for November share of 66.3%

Power utility PPC, the retail electricity market leader, gained an entire three percentage points in November, capturing a 66.33 percent share, up from 63.2 percent a month earlier, according to a latest energy exchange report.

The rankings among the market’s independent suppliers remained unchanged but minor market share gains and losses were reported for the month.

Protergia, a member of the Mytilineos group, shed over half a percentage point, dropping from 8.6 percent in October to 7.99 percent in November, but remained at the forefront among the independent suppliers.

Second-placed Heron also retreated slightly, to 6.55 percent in November from 6.97 percent in October, as did Elpedison, ranked third, to 4.67 percent from 5.05 percent.

Next in the rankings, NRG’s market share remained virtually unchanged, ending November at 3.37 percent from 3.38 percent in October.

Watt+Volt followed with a 2.69 share of the retail electricity market, up marginally from 2.67 percent, Volterra was next with 2.37 percent from 2.55 percent, Fysiko Aerio (Attiki GSC) made a slight gain to reach 1.61 percent from 1.48 percent, Zenith upped its share to 1.26 percent from 1.19 percent, Volton improved to 1.13 percent from 1.04 percent, and KEN remained virtually unchanged, at 0.59 percent from 0.6 percent.

Electricity exports increased and imports decreased in November, compared to a month earlier, the energy exchange data showed.

PPC’s business plan for 2021 to 2023 projects a reduction in customers from 6.1 million, last September, to 4.7 million, for a market share of 54 percent.

Local gas-fueled generation up in response to high-cost power imports

Higher electricity prices in neighboring countries, increasing the cost of electricity imports, have prompted power utility PPC to capitalize on the situation and operate its gas-fueled power stations at maximum capacity for satisfactory market prices.

In recent days, PPC’s natural gas-fueled units have covered between 35 and 40 percent of electricity demand.

Yesterday, the power utility’s gas-fueled power stations covered 40 percent of electricity demand at a price of 42.6 euros per MWh for ten hours.

Independent producers covered 19 percent of electricity demand at a price of 64.4 euros per MWh for one hour.

Electricity imports covered 14 percent of electricity demand for a price of 51.7 euros per MWh over 11 hours.

Renewable energy sources covered 24 percent of electricity demand yesterday, while the decreased lignite input continued on its downward trajectory, contributing 3.6 GWh.

In Bulgaria, the wholesale electricity price was 53.14 euros per MWh. In Italy, it was 51.93 euros per MWh. Romania registered a price level of 51.7 euros per MWh. The price in Serbia was 49.91 euros per MWh.

PPC power demand coverage down to 36.8%, lignite savings

Power utility PPC’s lignite-fired electricity production plunged 70 percent in the second quarter of 2020, its generation covered just 36.8 percent of overall electricity demand in the first half, while the corporation’s retail electricity market share has contracted to 69.9 percent, first-half company results have shown.

These shifts highlight the major changes occurring in Greece’s energy market – in terms of energy mix and retail competition.

PPC’s retail electricity market share drop to 69.9 percent followed a 77 percent share reported for the equivalent period a year earlier.

Electricity demand fell just 1.7 percent in the first quarter before sliding 12.7 percent in the second quarter, the PPC results showed.

A significant part of the corporation’s recurring EBITDA figure of 457.3 million euros reported for the first half was attributed to the utility’s diminished reliance on lignite-fired generation, until recently Greece’s dominant energy source. PPC’s lignite units have been kept shut or used minimally, saving the corporation from losses.

However, this is one side of the story for PPC. The company’s reduced reliance on lignite may be saving the power utility considerable amounts, but its coverage of overall electricity demand has dropped to 36.8 percent in the first half, from 46.9 percent in the first half last year. Gas-fired and hydropower generation have been low.

This downward slide at PPC is expected to continue until the corporation’s green energy output rises to between 2,000 and 3,000 MW, a level that would take the company into a new era. A period of at least two to three years will be needed before this can be achieved.

The pandemic and its downward pressure on energy price levels has helped PPC. Company outlays for fuels, natural gas, CO2 emission rights and electricity purchases fell by 33.7 percent, or 561.3 million euros, in the first half, compared to the equivalent period a year earlier.

PPC saved 95 million euros on fuel costs, 110.2 million euros on natural gas costs, approximately 80 million euros on CO2 emission rights, and 260.2 million euros on electricity purchases, the first half results showed.

Energy products may rebound in the second half, meaning PPC has no other choice but to accelerate its foray into the RES sector.

Despite the encouraging first-half results, there is no room for complacency, PPC’s chief executive Giorgos Stassis stressed.

 

 

PPC CO2 emissions down 71.1%, lignite-fired output fades

Power utility PPC’s CO2 emissions plunged 71.1 percent in the first half, from 1.97 million tons in January to 568,900 tons in June, reflecting the significantly diminished role of lignite in generation.

Lignite’s dominant energy mix role has been taken over by natural gas, supported by rising RES output and electricity imports.

Lignite-based electricity generation slid for most of the six-month period between January and June, dropping to 1.41 million tons in February, 882,240 tons in March, 730,970 tons in April and 564,900 tons in May before edging up to 568,900 tons in June.

CO2 emission right costs have been on an upward trajectory over the past couple of months, rising well over customary levels of about 20 euros per ton to reach as high as 29.66 euros per ton. Current levels appear to have stabilized at between 26 and 27 euros per ton.

Despite these higher CO2 emission right price levels, PPC’s operating costs are not expected to rise as a result of its big cutback on lignite-fired production.

PPC’s share of overall electricity production is projected to keep falling as independent producers and traders move in to fill the lignite void through natural gas and RES generation, plus electricity imports.

Low-cost gas driving down wholesale electricity prices

The abundance of low-cost natural gas, enabling electricity producers operating gas-fired power stations to offer extremely competitive prices, is reshaping the wholesale electricity market.

Highlighting this development, the average level of the System Marginal Price, or wholesale electricity price, today, a day of strong demand, is expected to be contained below 40 euros per MWh, at 39.551 €/MWh.

Today’s electricity demand is expected to peak over 8.3 GW with total consumption reaching 168,674 MWh. The wholesale price during the peak hours will not exceed 38.850 €/MWh.

The market conditions for today are not an isolated incident but part of a wider trend that has developed during the week.

Yesterday’s average SMP was just 35.961 €/MWh despite a peak of 8,105 MW and total electricity consumption of 162,777 MWh.

On Wednesday, when demand peaked at 8,072 MW and overall consumption totaled 162,492 MWh, the SMP was 39.243 €/MWh.

The SMP exceeded the 40 €/MWh level just once this week, on Tuesday, reaching 40.689 €/MWh, a day whose peak was below 8000 MW.

The week started with Monday’s SMP average at 39.277 €/MWh, a lower peak of 7,649 MW, and total consumption for the day of 152,716 MWh.

SMP prices have been falling to even lower levels during weekends. Last Sunday, the average SMP was just 30.629 €/MWh with the peak down to 6,370 MW and the day’s consumption at 134,563 MWh.

The grid relied on just one lignite-fired power station, Agios Dimitris III, last Sunday. Demand was primarily covered by gas-fired generation, as well as renewable energy sources, hydropower units and electricity imports.

Power demand dives 14.61% in June as tourism slumps

Electricity demand slumped 14.61 percent in June, compared to a year earlier, despite the month’s lifting of lockdown measures, latest Greek energy exchange figures have shown.

June’s drop in power demand, attributed to the unprecedented decline in tourism activity, was even bigger than the declines registered in April and May, 13 percent and 9 percent, respectively.

Numerous hotels and other tourism industry units have not opened for business. Also, flight bans were essentially not lifted until the beginning of this month.

Responding to the drop in electricity demand, energy producers have restricted output by 16 percent.

Natural gas and renewables dominated electricity generation in June. Natural gas-fueled generation covered 36.56 percent of demand, while RES production covered 26.43 percent, the energy exchange’s June report showed. Electricity imports covered 23.93 percent, hydropower 7.43 percent and lignite-fired production 5.64 percent.

 

 

Natural gas, electricity imports most influential for Greek SMP levels

Natural gas and electricity imports are playing an increasingly important role in shaping System Marginal Prices, or wholesale prices, while the influence of more traditional energy sources is waning, latest monthly data provided by the Greek energy exchange has shown.

Natural gas’s influence on SMP levels grew between January and May this year, compared to other fuels and electricity imports and exports, the data showed.

Throughout the five-month period, natural gas-fueled power stations consistently ranked first in number of hours used for SMP levels, peaking in May with 491 hours. Electricity imports consistently followed as a the second most influential factor for all five months.

Lignite-fired power stations, previously a key factor for SMP levels, are now limited to a marginal role, their lowest contribution, one hour in an entire month, recorded in April, the January-to-May figures showed.

Greece’s international grid interconnections are playing an increasingly influential role in shaping the country’s SMP as well as covering energy demand, the data showed.

Power grid operator IPTO has increased capacities for electricity imports via Greece’s grid interconnections in the north.

Natural gas provides half of domestic generation in May, RES also on the rise

Natural gas’ share of overall electricity generation in Greece reached 50.1 percent in May, a 29 percent increase compared to the same month a year earlier, highlighting that the country’s energy transition is well and truly in motion.

Renewable energy output is also on the rise, increasing by 30 percent between May this year and last May.

On the contrary, lignite-fired electricity production plummeted 87 percent year on year.

Gas-fueled power station generation covered 38.5 percent of the grid’s needs in May, RES production captured a 29.62 percent share, electricity imports contributed 23.14 percent, hydropower output provided 6.07 percent and lignite units just 2.66 percent.

In the RES sector, wind energy led the way with a 49.82 percent share of this sector’s grid contribution in May, solar energy followed with 40 percent, small-scale hydropower facilities were next with 4.68 percent, biomass-biogas was represented with a 3.68 percent share, and CCHP (combined cooling, heat and power) with 1.81 percent.

Electricity imports and exports are an emerging sector with an increasingly important role in balancing national grids, a prospect that is attracting market players, data covering the year’s first five months has shown.

Electricity imports into Greece via the interconnection shared with Italy captured a 42.38 percent share of overall imports in May, a sharp rise from the previous month’s 32.35 percent share through this link.

Electricity imports from Bulgaria fell to 8.38 percent of the overall amount in May from 23.1 percent in April. Minor changes, between April and May, were registered for Greek imports from interconnections with Albania, North Macedonia and Turkey.

Greek electricity exports to Italy fell sharply to 7.56 percent of the overall total in May from 49.51 percent in April.

The country’s electricity exports to Turkey and Bulgaria rose significantly. Exports to Turkey represented 39.47 percent of Greek power exports in May, up from 17.38 percent a month earlier. Electricity exports to Bulgaria represented 25.69 percent of Greece’s total in May, much higher than April’s 6.17 percent through this interconnection.

 

Wholesale electricity prices rising, up to €47.30/MWh today

Wholesale electricity prices, determined by the System Marginal Price, are rebounding following a significant drop over the past few weeks.

The rise is being fueled by an anticipated increase in demand. A sidelined 600-MW line linking Greece with Bulgaria, depriving the system of electricity imports via this route, as well as a disruption in operations at an Elpedison power plant in Thessaloniki are two other contributing factors.

In addition, the Revythoussa LNG terminal just off Athens is not under any pressure, a factor subduing gas-fired unit bids and subsequently lowering the SMP.

Based on grid orders placed for today, the SMP has climbed to 47.30 euros per MWh, up from a level of around 30 euros per MWh five days earlier and 14.20 euros per MWh on May 1. Bidding by units has gradually risen since early May.

Demand, today, for domestic consumption and exports is estimated to reach 127 GWh, 40 percent of which is planned to be covered by natural gas-fired power stations, 30 percent by RES and hydropower plants, 23 percent by electricity imports, and 7 percent by lignite-fired power stations.

The SMP level will be determined by gas-fired power stations for 22 hours today, lignite-based generation will shape the price for one hour and imports for the remaining hour.

Electricity imports up, gas-fueled power stations running non-stop

A significant drop in gas prices, especially LNG, as well as the availability of particularly lower wholesale electricity prices in neighboring countries have prompted major changes to the country’s Day Ahead Schedule.

Electricity imports via interconnections with Bulgaria, Italy, North Macedonia and Turkey have risen to represent just under 30 percent of overall consumption.

Demand for an even greater level of imports during certain time periods has not been met as a result of infrastructure capacity limits.

Renewable energy generation, also making considerable contributions to the grid’s needs, has, at times, exceeded 30 percent of total consumption.

Gas-fueled power stations operated by independent producers are now operating around the clock, not just during peak hours, as had previously been the case. Offers by these units are now very competitively priced.

Gas-fueled power stations are currently covering over 30 percent of total consumption and lowering wholesale prices.

On the contrary, power utility PPC’s production is covering smaller amounts of daily electricity consumption. The utility’s contribution, currently slightly over 10 percent, primarily stems from its lignite-fired power stations.

Domestic natural gas consumption strikes new high of 290,000 MWh

Natural gas consumption in Greece struck an all-time high yesterday to reach 290,000 MWh from a previous high of 260,000 MWh set in 2017. The new record was driven by full-capacity operations of electricity producers and natural gas companies.

Gas consumption is expected to remain high today, estimates putting the figure at 270,000 MWh.

Energy market authorities have assured the country does not face any energy security concerns, noting the important sufficiency roles played by the Revythoussa LNG terminal’s increased gasification capacity and the increased ability of the Kipous gas grid interconnection in Evros, at Greece’s northeastern tip, to cover the country’s needs through inflow measuring 48,000 MWh per day.

Despite the reassurances, Greece’s grid has been stretched to its limits over the past couple of days. The country’s lignite and natural gas-fueled power stations have needed to operate at full capacity to meet the elevated electricity demand – along with crucial hydropower, electricity import and RES injections during peak hours.

Highlighting the system’s strain, the main power utility PPC’s lignite-fired power station, still operating despite the expiration of a European Commission time limit, is among the facilities contributing to cover the higher electricity demand.

 

Expired Amynteo, RES units, imports vital for grid sufficiency

Renewable energy output, electricity imports and the main power utility PPC’s lignite-fired Amynteo power station, still operating despite the expiration of a European Commission time limit, are all proving crucial for the system’s sufficiency amid the high demand prompted by freezing weather conditions around Greece over the past few days.

All available energy sources are being resorted to in an effort to cover the  elevated demand. Hydropower output, electricity imports and RES production are providing vital energy injections during peak hours, which once again, once again highlighting the fact that the Greek system is stretched to its limits under such conditions.

The situation validates a recent IPTO power grid operator study noting grid sufficiency is presently not achievable without grid contributions from PPC’s Amynteo unit as well as the power utility’s Kardia facility, headed for closure.

Virtually all the country’s thermal power stations will be operating to meet a demand peak of 9,024 MW at 1pm today, according to the energy exchange’s day-ahead market figures. State-controlled PPC’s Agios Dimitrios IV and V, the Kardia unit, two Megalopoli units, two Amynteo units, Meliti, as well as private-sector gas-fired power stations operated by Heron, Enthes, Thisvi, Protergia and Korinthos Power will all be called into action.

Even so, 1,914 MW in RES production, 44 MW in net imports as well as 140 MW of hydropower production will also be needed to meet demand.

The System Marginal Price (SMP), or wholesale electricity price, is set to reach 82.52 euros per MWh during peak demand.