electricity interconnections

PV growth rate readjustment to 1 GW, annually, expected

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New PV installations are expected to reach a lofty level of nearly 2 GW this year before adjusting to an annual growth rate of about 1 GW thereafter.

Energy consultant Stelios Psomas, speaking at the recently staged Renewable Energy Tech event staged by energypress, noted he expects a robust readjustment, close to annual levels of 1 GW, in the forthcoming years as a result of prevailing market conditions and an increase in RES grid-injection cuts.

An annual PV installation growth rate of approximately 1 GW would still make Greece a major European market, the official noted.

“The market is currently surviving as a result of major projects that secured connection terms in the past and are currently under construction,” Psomas told the Renewable Energy Tech event. “We are a small country with relatively low demand and we still don’t have sufficient interconnections. The market will inevitably calm down a bit from now on, but it will continue growing at a rate of 1 GW, which is still a very good figure,” he added.

 

 

GREGY gaining momentum, investment decision early ’25

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Elica, a subsidiary of Greece’s Copelouzos group established to promote the Greek-Egyptian GREGY Interconnector, is preparing to push ahead with studies that will determine the project’s cost and also establish sites and partners for the development of 9.5 GW in RES projects.

All these aspects are crucial factors ahead of a final investment decision, expected to take a year. GREGY Interconnector, initially budgeted at 4.2 billion euros, promises to facilitate renewable energy exports from Egypt to Europe via Greece.

Greek Prime Minister Kyriakos Mitsotakis and Egyptian President Abdel Fattah Al Sisi in El Alamein focused on the GREGY Interconnector at a recent meeting that was also attended by Dimitris Copelouzos, chairman and managing director of the Copelouzos group, which has encouraged all parties involved to move faster.

At the meeting, the Egyptian President stressed that cooperation should be accelerated and procedures streamlined, while noting any obstacles that may arise must be cleared.

The Egyptian leader’s words essentially encourage closer ties between Egypt’s electricity and renewables ministry, the Egyptian power grid operator EETC, and the Copelouzos group for swift progress on the project’s studies, expected to be awarded in February and completed, barring unexpected developments, towards the end of the year.

A total of four studies – a technical study; environmental impact study; geophysical-geotechnical study; and seabed mapping, the most challenging of the four, to be conducted at a depth 954 km in the East Mediterranean – are needed. Their total cost is estimated at between 35 and 40 million euros. Investors will seek to cover half this cost through EU funding support.

The Copelouzos group should be ready to announce a final investment decision on the GREGY Interconnector in early 2025.

Italy has corresponding plans with the Italian-German Green Vein project for a line facilitating renewable energy transmission from Egypt to Italy.

This project’s planned capacity matches that of the GREGY Interconnector, at 3 GW, but Green Vein’s subsea cable would be three times longer than that of the GREGY Interconnector’s 954 km. This will definitely weigh heavy on the Green Vein’s cost, still not announced.

Plans for a detailed feasibility study concerning Green Vein were announced by UAE’s K&K Group, Italy’s CESI and the Prysmian group, and Germany’s Siemens Energy at the recent COP28 in Dubai.

 

Second Greek-Bulgarian grid link set for pre-summer launch

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A second Greek-Bulgarian power grid interconnection, promising to boost transboundary trade and bolster supply security, is scheduled to be completed before summer.

The project, whose Bulgarian section has already been completed, will connect a 200-MVA capacity transmission line running a 151-km distance from Nea Santa in northeastern Greece to Bulgaria’s Maritsa area. The majority of the project’s distance, approximately 121 km, lies within Bulgarian territory.

The interconnection project promises to boost transmission potential at the Greek-Bulgarian border to 1400 MW in a direction from Greece to Bulgaria and 1700 MW from Bulgaria to Greece.

Furthermore, the project will facilitate further RES development in Greece’s north and also enable two Greek power station projects currently being developed to export their production with greater ease.

Construction company GEK-TERNA and energy group Motor Oil have joined forces to develop an 877-MW power station in Komotini, northeastern Greece, while power utility PPC and gas company DEPA Commercial have teamed up for an 840-MW power station in Alexandroupoli, also in the northeast.

Project of national importance status for interconnection in north

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The government has declared a new 400-kV electrical interconnection being developed by power grid operator IPTO from Filippoi to Nea Sanda in northern Greece as a project of national importance, a move promising unhindered development as the classification limits any potential obstacles that may arise in terms of licensing or environmental issues.

The electrical interconnection, to run a length of approximately 140 kilometers, was declared a project of national significance by the energy ministry as well as the development and investment ministry.

A number of factors were taken into account, including the objective of IPTO, owner and operator of the country’s grid, to ensure adequate, continuous, secure, efficient and reliable electricity supply to the country.

Balancing market interests as well as cross-border trade, based on principles of transparency, equality and free competition, were also taken into account.

So, too, was the potential offered by the project to increase storage capacity and distribution of electricity production, especially that of renewables, mainly large-scale wind farms, plus conventional power stations in the wider region.

PCI application in making for Greek-Austrian-German grid link proposal

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Austria and Germany are considering a Greek proposal for a 3-GW electricity grid interconnection, a project that would directly transport green energy produced in Greece to the two countries.

Energy minister Kostas Skrekas unveiled this project plan during a speech yesterday at the Renewable & Storage Forum, a two-day conference organized by energypress, continuing today.

Germany is believed to be seeking alternative green energy sources as, according to the minister’s comments at the conference, the country cannot develop RES projects in its south as a result of environmental measures protecting the Black Forest.

Sources informed that officials are working on an application for PCI classification concerning this grid interconnection.

Power grid operator IPTO, the sources added, has prepared plans for two alternative routes, one crossing Albania, Montenegro, Croatia and Slovenia, before reaching Austria and Germany’s south, the other a subsea route from Albania’s coastline to Slovenia followed by an overland crossing to Austria and Germany’s south.

Framework established for energy cooperation with Saudi Arabia

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Greece and Saudi Arabia have reached an agreement for the installation of a subsea data cable that will connect Europe with Asia and also discussed the prospect of linking their power grids to supply Europe with lower-cost green energy.

A memorandum of understanding for cooperation related to the energy sector was signed during an official visit of Crown Prince Mohammed bin Salman Al Saud with his delegation.

The MoU was signed by Prince Abdulaziz bin Salman, Saudi Arabia’s Minister of Energy, and Nikos Dendias, Greece’s Minister of Foreign Affairs.

It establishes a framework for cooperation between the two countries in fields including renewable energy, electrical interconnection, exporting electricity to Greece and Europe, clean hydrogen and its transfer to Europe, energy efficiency, and the oil, gas and petrochemical industry.

RAE to cut extra WACC for electricity interconnections

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RAE, the Regulatory Authority for Energy, will eliminate any extra weighted average cost of capital (WACC) concerning electricity interconnection projects, the authority’s president, Athanasios Dagoumas, has informed a parliamentary committee.

RAE is basing its decision on a cost-benefit analysis study conducted by the authority, while latest European approaches have also been taken into account, the aim being to converge with European WACC standards, the chief executive noted.

The president of RAE stressed that the role of the authority is to control operator expenditures, which, he added, is public money. “We’re cutting expenses – what is not substantiated as an expense will be cut,” he underlined.

The RAE president also protested that market operators are presenting financial data to RAE for approval with great delay, forcing the authority’s staff to work overtime to meet schedules.

RAE has moved swiftly to offer its approval of a series of projects, such as the IGB, the Alexandroupoli FSRU, and a pipeline link with North Macedonia, the chief official noted, adding that the authority’s role is to protect public interest. “We ask you to recognize and support this,” Dagoumas told the parliamentary committee.

 

Lignite-fired power stations still operating despite elevated cost

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Despite their increased operational cost, power utility PPC’s lignite-fired power stations remain essential, on an occasional basis, to ensure electricity supply security by countering various concerns that may arise, including voltage instability at the grid’s northern section.

Power grid operator IPTO needed to bring into the system one or two lignite-fired power stations throughout most of May, despite the high cost entailed, which would normally keep these units sidelined.

No lignite-fired power stations needed to be used for grid sufficiency on May 13 and 16, as is also the case for today.

The northern section of the country’s grid can be susceptible to voltage instability as a result of the international grid interconnections in the wider area, facilitating exports.

Until recently, northern Greece’s west Macedonia region was the country’s energy epicenter, courtesy of PPC’s extensive lignite portfolio in the area.

Regular use of higher-cost lignite-fired generation has increased price levels in the day-ahead and balancing markets, which, by extension, is increasing costs for suppliers.

PPC’s increased CO2 emissions, when the utility’s lignite-fired power stations are brought into operation, is also directly impacting industrial consumers, who are burdened by the resulting additional cost, passed on by the utility.

CO2 costs have risen sharply of late as a result of rallying carbon emission right costs.

EuroAsia project moving again, Egypt present with EuroAfrica

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Development of the wider region’s two major electricity grid interconnections, the EuroAsia Interconnector, to link Greece, from Crete, with Cyprus and Israel, and EuroAfrica Interconnector, a complementary project to link Cyprus with the African continent via Egypt, was discussed at a meeting in Nicosia yesterday between Greece’s energy minister Costis Hatzidakis and his Cypriot counterpart Natasa Pilides.

Progress at EuroAsia Interconnector, whose launch is scheduled for late in 2023, was held back by a Greek-Cypriot dispute prompted by Greek power grid operator IPTO’s withdrawal of the wider project’s Crete-Athens segment from EuroAsia Interconnector, a consortium of Cypriot interests.

The Crete-Athens segment is now being developed as a national project by IPTO and subsidiary Ariadne Interconnection.

EuroAsia Interconnector and EuroAfrica Interconnector promise to develop Cyprus into an electricity hub. A 310-km cable from Israel and a 498-km line from Egypt will converge at coastal Kofinou, in Cyprus’ south. From this hub, an 898-km cable is planned to link Cyprus with Crete before reaching Athens.

At yesterday’s meeting, the Greek and Cypriot energy ministers primarily focused on EuroAsia Interconnector, the Crete-Cyprus-Israel project, at a more mature stage.

Budgeted at 2.5 billion euros, this project, regarded as an EU Project of Common Interest, will promote regional energy security and further RES penetration in all three participating countries, Hatzidakis noted. The EU, it is estimated, will need to contribute at least half the project’s value.

Cyprus is the only EU member state without electricity grid interconnections.

Germany’s Siemens was awarded a procurement contract last May for EuroAsia Interconnector’s HVDC converter stations, budgeted at 623 million euros.

EuroAsia Interconnector was initially planned to offer 2 GW but this capacity has been halved, for the time being, as the other 1 GW will be used for the Crete-Athens grid interconnection.

EuroAsia Interconnector’s Israel-Cyprus segment is budgeted at 900 million euros while the cost of the bigger Cyprus-Crete section is estimated between 1.6 and 1.8 billion euros.

 

IPTO island links over next 10 years to offer 2.6 GW capacity

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Power grid operator IPTO’s interconnections planned for the next decade will prepare the ground for new island-based RES projects representing a total capacity of 2.6 GW.

The operator’s ten-year national electricity grid development plan for 2021 to 2030, forwarded to RAE, the Regulatory Authority for Energy, for approval, offers major investment opportunities in the renewable energy sector.

Wind and solar energy farms operating on islands will be able to transmit their output to the mainland via underwater cables.

The IPTO ten-year plan offers a RES project installation capacity of 2,442 MW for Crete, the Cyclades, the Dodecanese and the northeast Aegean islands. This capacity represents potential investments estimated at 2.6 billion euros.

The completion of all four phases of the Cyclades interconnections, scheduled for the second half of 2024, will offer 332 MW for this region. Andros and Tinos will have a RES installation capacity of 72 MW, the capacity for Syros, Paros, Mykonos and Naxos will total 160 MW, while Santorini, Folegandros, Milos and Serifos will be offered a 100-MW installation capacity.

The completion of Crete’s small-scale mainland interconnection to the Peloponnese, scheduled for the second half this year, will offer a RES installation capacity of 160 MW. A further 600 MW will be added once the island’s major-scale interconnection to Athens is completed in 2023, when Crete’s wind and solar energy capacity total of new and existing RES projects is expected to reach 1,080 MW.

The RES expansion capacity on the Dodecanese and northeast Aegean islands will reach 1,030 MW, according to the IPTO ten-year plan. Samos, Chios and Lesvos will be offered a 360-MW share of this total; Limnos, Kos, Rhodes and Karpathos will get 570 MW, while Skyros will be offered the remaining 100 MW.

The grid interconnections in the island regions will be developed over three phases to be respectively completed in 2027, 2028 and 2029, according to the IPTO plan.

 

Network operator’s privatization may offer less than 49% limit

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The government has set a 49 percent limit for the planned privatization of distribution network operator DEDDIE/HEDNO but the stake to be offered may end up being smaller.

A DEDDIE/HEDNO stake of up to 49 percent and increased rights for investors will be placed for sale, while the operator’s majority and management will remain under the control of power utility PPC, the operator’s parent company, the group’s chief executive Giorgos Stassis noted in an interview published by Greek daily Ta Nea over the weekend.

The size of the DEDDIE/HEDNO stake to be offered to investors will, on the one hand, depend on the amount of cash required by PPC to resolve financial matters for a path towards recovery, and, on the other, the ability of potential buyers to meet the price-tag demands of a major privatization.

DEDDIE/HEDNO’s assets are estimated to be worth 3.2 billion euros, meaning a 49 percent stake should cost potential buyers over 1.5 billion euros.

PPC has commissioned Goldman Sachs and Eurobank as the privatization’s consultants. The power utility’s administration would like to find a DEDDIE/HEDNO buyer by the end of the year.

An ambitious ten-year business plan for DEDDIE/HEDNO, one reflecting the lofty demands of the National Energy and Climate Plan, is being prepared for presentation to RAE, the Regulatory Authority for Energy, in about two months’ time.

DEDDIE/HEDNO will face the challenge of developing projects worth billions by 2030, including new interconnections and nationwide installation of smart meters.

 

Greek, North Macedonian operators working on gas, power links

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Greek gas grid operator DESFA and its state-controlled North Macedonian counterpart MER plan to upgrade a memorandum of cooperation signed in 2016 for the construction of a 120-kilometer gas pipeline from Thessaloniki’s Nea Mesimvria area to the northern neighbor.

Heading a Greek delegation, Prime Minister Alexis Tsipras and his North Macedonian peer Zoran Zaev have agreed to sign a series of bilateral agreements and memorandums of cooperation in Skopje today.

The project, to interconnect the Greek and North Macedonian gas transmission systems, is regarded as one of the most significant energy investments being prepared by the two countries.

It is planned to offer an annual transmission capacity of about 3 billion cubic meters and also enable an interconnection with the TAP route – to supply Azerbaijan gas to European markets via Greece – for a diversification of sources.

The DESFA-MER association promises to be further enhanced by the North Macedonian operator’s moves for gas system interconnections with Kosovo and Montenegro.

Subsequently, the Greek-North Macedonian natural gas pipeline, once constructed, promises to offer a new supply route to Balkan markets.

DESFA is preparing to stage a market test for the Greek-North Macedonian pipeline during the second half of this year, sources have informed.

Meanwhile, Greece’s power grid operator IPTO and its North Macedonian counterpart MEPSO are discussing preliminary studies intended to lead to an upgrade of electricity interconnections between the two countries.