Sub-station upgrades to maximize RES grid connections

Distribution network operator DEDDIE/HEDNO is closely examining the country’s power grid to determine which sub-stations it will choose to upgrade, the objective being to offer grid links to a greater number of RES projects.

The operator also intends to upgrade sub-stations in areas where investment interest for RES installations is high.

Grid capacity limits are already exhausted in areas where RES development has been extensive, especially when concerning RES technologies other than photovoltaics.

As part of the upgrade, the operator intends to modernize all necessary equipment at each substation, the cost of which it considers manageable.

Also, the operator will carry out studies to determine necessary network interventions close to each substation, especially replacement of conductors with small cross sections.

Balkan potential highlighted by IPTO’s interest in MEPSO

Greek power grid operator IPTO’s interest, for some time now, to acquire North Macedonia’s grid operator MEPSO, either through a strategic agreement or a share capital increase, points to the existence of opportunities for energy infrastructure upgrades in the neighboring country as well as the growing role to be played by electricity networks and corridors in the wider region.

As the energy transition progresses, electricity networks and corridors will no longer merely serve as electricity transmission lines, but promise to gradually replace oil and gas pipelines.

Greece, at present, remains sorely absent from the wider Balkan energy-sector activity. IPTO has yet to make any big moves beyond the country’s frontiers.

Though the western Balkans are currently experiencing a green-energy boom with RES investment growth having reached double digits in some countries, regional networks are outdated and insufficient to support this robust investment interest.

Though it is vitally important for Greece to assert itself as an influential energy-sector player in the Balkans, the flow of energy from the region towards central Europe is currently being controlled by Italy.

Italy’s influence, on energy matters, over the Balkans was expanded in recent years with Montenegro as a base and Italian power grid operator in a leading role, as highlighted by its acquisition of a 22 percent stake in Montenegrin power grid operator CGES.

Identifying the pivotal energy role of the Balkans early on, Italy took a strategic decision for the development of a first route linking the western Balkans and Europe in the form of a 445-km line – 423 km of it as an underwater Adriatic Sea crossing – from Pescara, on Italy’s east coast, to Kotor, on Montenegro’s Adriatic coast.

The small Balkan country has since become a bridge of energy exchange between eastern and western Europe as this Adriatic link has interconnected Italy’s network with those of Bosnia and Herzegovina, Serbia, Kosovo, Albania, and, by extension, Bulgarian and Romania.

Italian power grid operator Terna is now examining the prospect of boosting this line’s transmission capacity from 600 MW to 1,200 MW. Giuseppina Di Foggia, CEO at Terna, recently held talks in Rome with Montenegro’s new president, Jakov Milatovic, about this project.

 

IPTO eyeing North Macedonian operator, a Balkan gateway

Greek power grid operator IPTO is eyeing the Balkan market to reinforce its standing, and, in this context, endeavoring to acquire a stake in MEPSO, North Macedonia’s operator.

If an agreement does go ahead, a prospect that requires the active involvement of the Greek government, then the neighboring country could serve as a gateway for IPTO’s entry into the wider western Balkan region, to take on network upgrade and interconnection projects, definitely needed.

IPTO has already submitted an offer for a stake in MEPSO, either through a strategic agreement or a share capital increase, North Macedonian sources informed.

IPTO executives have, for quite some time now, been engaged in talks with North Macedonian government officials, MEPSO and the country’s regulatory authority covering energy for a stake in the operator, the sources added.

Besides strengthening IPTO’s standing, such a move – which would complement Greek power utility PPC’s takeover agreement for Italian group ENEL’s Romanian subsidiary ENEL Romania – promises to also bolster Greece’s geopolitical role in the Balkan region.

MEPSO also stands to benefit from an agreement with IPTO as the North Macedonian operator could make the most of the Greek operator’s stronger credit rating and gain access to EU funds for network upgrades.

 

Significant emission cuts from domestic industry, SEV notes

Greece’s industrial sector is now responsible for 47.5 percent of the country’s total carbon emissions, down from 59 percent in 2010, with plans for more reductions further ahead, SEV, the Hellenic Association of Industrialists, has noted in a special report.

Greek industry has reduced greenhouse gas emissions by 43 percent over the last 10 years, the sixth largest reduction in the EU, SEV highlighted in its report.

Furthermore, the sector’s share of energy consumption is lower than in most European countries, accounting for only 17 percent of consumption, the SEV report noted.

Renewable energy facilities installed by domestic industrial and energy groups are playing a key role in Greece’s transition to cleaner forms of energy, according to the association.

Greek industry is supporting European goals for climate neutrality by 2050 by investing in renewable energy sources and reducing carbon emissions, while also improving efficiency of resource utilization, SEV noted.

However, high energy costs, environmental-impact limitations and a lack of investment incentives in the EU, putting European firms at a disadvantage compared to US competitors, are tempting many European enterprises, including Greek, especially energy-intensive companies, to consider moving out of the continent, a development that threatens to bring about a new wave of deindustrialization, SEV warned in its report.

Investments in green or digital technologies, as well as in production of crucial raw materials, to end a reliance on non-EU countries, are needed, the report noted.

Though energy costs have fallen considerably since the summer of 2022, they remain high and stand as one of the biggest challenges faced by the industrial sector, SEV pointed out.

Energy costs in Greece are among the highest in the EU, SEV stressed. Last August, wholesale electricity in Greece was priced at 109.33 euros per MWh, compared to 94.41 euros per MWh in Germany, 90.96 euros per MWh in France, 96.09 euros per MWh in Spain, and 97.91 euros per MWh in Portugal.

SEV, in its report, presented four proposals aimed at protecting the competitiveness of Greek industry.

It called for the implementation of energy cost-restricting mechanisms and tools; reinforcement and expansion of electricity transmission networks, as well as development of new networks that could establish Greece as an energy hub in the wider east Mediterranean; sufficient development of energy networks to support RES facilities in their production of electricity for the industrial sector; and financial support for green-transition investments in new technologies such as CO2 capture and storage.

 

Authorities reject claims linking electricity network with fires

Authorities have ruled out any connection between the country’s electricity network and recent wildfires that ravaged the country, especially Evros in the northeast and Mount Parnitha, north of Athens, as has been claimed, mainly on social media.

Short circuits or damages to the power grid may have occurred as a result of the fires, but confusion over cause and effect has led to false conclusions and may have even encouraged arsonists to set fires at or near utility poles, as suggested by the arrest, in early August, of a man who was found setting fire to dry grass under a distribution pole in Agios Stefanos, authorities have noted.

Greece’s recent wildfire events prompted various claims and reports, which, besides blaming the electricity network, also suggested fires were being set for the development of wind-turbine projects at mountain locations, consequently demonizing a pivotal aspect of the Greek and European energy transition effort.

Europe will need investments worth 584 billion euros in new electricity infrastructure by 2030 so that a high RES penetration rate may be maintained, the European Commissioner for Energy Kadri Simson recently wrote in an article for the Financial Times. Europe’s current electricity network of 11 million kilometers needs to be upgraded as swiftly as possible, she noted.

Athens promoting domestic RES equipment production

The government is promoting support programs for Greek production of RES-sector equipment, from batteries to energy storage systems, production and assembly of solar panels, as well as equipment concerning the hydrogen and electromobility sectors, energy minister Kostas Skrekas revealed to energypress in a wide-ranging interview held as part of the recent Power & Gas Forum in Athens.

In the interview, given to energypress editor-in-chief Thodoris Panagoulis and Capital’s managing editor Haris Floudopoulos, the minister, amongst other things, referred to the finalization of the National Energy and Climate Plan, which, he stressed, will be set within a more realistic framework, based on respective adjustments at European level.

Skrekas also referred extensively to developments in the retail and wholesale electricity markets, noting the supply code must be changed. He also pointed out the government’s imminent support to energy-intensive industry through a program promoting self-production and energy storage.

The minister highlighted the government’s emphasis on green energy, noting Greece, for the first time, has a RES-sector advantage over European countries of the north and must utilize the country’s ample sunshine to the benefit of household and professional energy consumers.

“The strategy we have developed over the past three years, and for going forward, is about the rapid penetration of renewables in our energy mix. Of course, in order to achieve this, reforms were needed and many steps still need to be taken,” the minister noted, adding further development of RES units and storage, as well as networks, must be addressed to reach a point where all energy consumed is derived from renewables.

Greece is playing a leading renewables role on many fronts, the minister said, making note of the country’s greater licensing speed, highlighted by doubled installed RES capacity within three to four years, from 5-5.5 GW in 2018 to over 10 GW in 2022, which, he added, has resulted in doubled electricity generation from renewable sources.

HEDNO decides on voluntary exit plan with €20,000 bonus sum attached

Distribution network operator DEDDIE/HEDNO’s board has decided to offer employees aged 60 and above a voluntary exit package this year that includes bonus compensation pay of 20,000 euros.

This bonus sum will be offered to exiting staff members as long as certain prerequisites are met, in addition to a maximum amount of 15,000 euros required by law.

DEDDIE/HEDNO staff eligible for the bonus compensation amount will need to be aged 61 or over and have acquired pension rights; turn 60 years of age within 2023 and have acquired pension rights; or be aged 67 and backed by at least 15 years of employment at either DEDDIE/HEDNO or its parent company, power utility PPC.

Employees belonging to the first of these three categories will receive a bonus compensation amount of 20,000 euros if they voluntarily resign by July 31, 2023. As for the second and third categories, workers will receive the bonus compensation amount if they exit the company by December 31, 2023.

DEDDIE/HEDNO plans to soon begin procedures to recruit 1,400 new employees by June, the company’s chief executive, Anastasios Manos, has informed.

The employee renewal program is needed as the operator has undertaken network development projects for the coming years to support the country’s RES objectives, Manos has explained.

Just one staff renewal program has been carried out by DEDDIE/HEDNO between 2012 and 2019, which has resulted in 158 hirings but remains unfinished, the chief executive said.

Brussels looking to revise network expenses formula for operators

The European Commission, in conjunction with ACER, Europe’s Agency for the Cooperation of Energy Regulators, has begun preparing market revisions that, amongst other things, will change how market operator expenses are calculated.

The initiative’s aim is to establish new market rules that will support energy demand management, energy storage and also lift regulatory obstacles.

A related European Commission document points out that although existing legislation enables operators to provide flexibility services such as demand management, regulatory frameworks in most EU member states separate the capital cost (CAPEX) of operators from their operating expenses (OPEX), ultimately restricting investments and standing as a disincentive.

An approach through which both capital cost and operating expenses would be taken into account for a so-called TOTEX sum is now being looked at by the authorities.

This would help operators move more freely when committing capital to develop their networks and provide flexibility services, especially demand management, the ultimate goal being to increase renewable energy penetration.

 

HEDNO €2.2bn investments for 2022-26 feature 139 projects

Distribution network operator DEDDIE/HEDNO’s five-year investment plan for 2022 to 2026, budgeted at 2.2 billion euros, will focus on digital transformation and modernization, as well as an upgrade of the electricity distribution network and its services, the operator has announced in a text just posted by RAE, the Regulatory Authority for Energy, for consultation.

The investment plan includes a total of 139 sub-projects, including 71 worth 255.71 million euros for network reinforcement work.

Other entries include 32 sub-projects with a total budget of 437.91 million euros for network replacement and restoration work, as well as 525.22 million euros for the installation of telemetry systems.

Also, a sum of 481 million euros is planned to be used for projects such as the construction of new transmission and distribution sub-stations required, as well as reinforcement of existing such units, prompted by new grid-user connections or a shift in the requirements of existing users, both producers and consumers, following related applications. This category also includes street lighting projects.

 

PPC takeover of ENEL Romania would establish utility in region

Power utility PPC has entered exclusive talks with Italy’s ENEL for the acquisition of the latter’s portfolio in Romania, a lucrative prospect offering networks in three Romanian regions, three million customers in the country’s retail electricity market, 550 MW in RES projects already operating, as well as 2,000 MW in RES projects at an advanced stage.

Completion of the deal would take PPC to another level and establish it as a regional force in southeast Europe’s energy market.

Market experts have put a price tag of between 1.3 and 1.4 billion euros on the possible deal.

Late last night, PPC and ENEL signed a confidentiality agreement obliging ENEL officials to only discuss a possible deal with PPC, which is conducting due diligence until January 23, in preparation for a deal that appears increasingly likely, as long as the two sides can agree on a price.

ENEL controls Romanian networks in the Muntenia region, surrounding Bucharest, the industrial zone of Timisoara, as well as Dobrota’s tourism section. The three networks offer a total capacity of 16 TWh.

PPC business plan well received by US, European funds

Power utility PPC’s business plan has been well received by major international funds at a London roadshow co-organized by the Athens bourse and Morgan Stanley and involving 29 Greek companies, ten of which are from the energy sector.

PPC’s administration has held over 30 meetings with American funds such as Sandglass and Manulife, as well as European funds, including the UK’s Senvest, Polygon and TFG Asset management, which were informed on PPC’s business potential. Emphasis was placed on decarbonization, new RES projects, growth prospects in foreign markets, and digitization.

The meetings have included one-on-one meetings between PPC’s chief executive Giorgos Stassis and CEOs of foreign funds, who were offered detailed presentations of PPC’s business plan.

Some of these funds are already familiar with PPC’s activities and objectives, while others have only just begun showing interest, either through thoughts of purchasing company shares or participation in two PPC bond issues, a 775 million-euro bond maturing in 2026 and a 500 million-euro bond maturing in 2028.

PPC, emerging from the energy crisis unscathed and implementing its business plan without deviations, despite the challenging international environment, expects its EBITDA figure this year to reach between 800 and 900 million euros, approximately the same as last year, with a similar or improved performance next year.

PPC’s business plan foresees investments worth 9.3 billion euros over the next four to five years, 55 percent of the investment sum in renewable energy, 20 percent in electricity distribution networks, 7 percent in conventional energy sources, 4 percent in waste-to-energy production, and 3 percent in retail energy.

In geographical terms, 85 percent of PPC’s investments are planned for within Greece, the other 15 percent planned for the Balkans, primarily in Romania and Bulgaria.

PPC plans to invest 2.3 billion euros in 2023, 2.5 billion euros in 2024, 1.7 billion euros in 2025 as well as 2026.

These investments are expected to contribute to Greece’s improved energy self-sufficiency, reducing electricity imports to 10 percent in 2026 from 18 percent in 2020.

 

 

SPEF: PV costs up 30-75%, tariff reduction thoughts must be abandoned

Solar panel prices were up 30 percent for orders placed in March compared to a year earlier, while prices for AC cables, also used for solar panel installations, are as much as 75 percent higher compared to levels in 2019 and 2020, Dr. Stelios Loumakis, president of SPEF, the Hellenic Association of Photovoltaic Energy Producers, has pointed out.

In response to these higher costs, the SPEF president called on authorities to abandon any thoughts of reduced tariffs for new solar energy projects currently being developed.

Installation costs for XT/MT substations have also risen considerably, up by 20 percent over the past year, according to Dr. Loumakis.

In addition, power grid operator IPTO’s connection term costs have also risen to levels double those of a few years earlier.

These connection term increases are not exclusively linked to higher-priced equipment but also to network upgrades being carried out by IPTO in order to boost capacity, projects whose cost is passed on to investors.

Changes at HEDNO, Macquarie 49% acquisition taking effect

Administrative restructuring has begun taking place at distribution network operator DEDDIE/HEDNO as Australian company Macquarie Asset Management’s 49 percent acquisition of the operator from Greek power utility PPC is set to take effect at the end of this month.

Macquarie officials commence work on February 28, when the shareholders’ agreement signed with PPC comes into effect.

According to sources, HEDNO’s seven-member board, which includes a workers’ representative, will step down, as part of the agreement. Company president Nikolaos Bakatselos informed of his intention to resign from his HEDNO post at the operator’s most recent board meeting, the sources added.

However, the current chief executive Anastasis Manos is expected to be reappointed for the operator’s top administrative post, sources said.

According to the shareholders’ agreement, a new eleven-member board will be established, with Macquarie holding four seats. PPC, controlling six seats, will maintain the right to appoint the chief executive, while a workers’ representative will occupy the new board’s eleventh seat.

Bakatselos, also president of the Hellenic-American Chamber of Commerce, has decided to hasten his departure as a result of additional commitments at the Pyramis group and its upcoming relaunch of a new Pitsos home appliances production facility in Oinofyta, northwest of Athens, sources informed.

PPC officials have spoken highly of their collaboration with Bakatselos as HEDNO president.

 

 

Operator identifies 4 issues after latest snowstorm lessons

Distribution network operator DEDDIE/HEDNO has identified four areas requiring action following its battle, last week, to restore power supply in many areas impacted by a heavy snowstorm, whose effects were particularly felt in the northeastern section of the wider Athens area.

A more aggressive tree-cutting policy, in cases posing a threat to power lines, is one of the four necessary moves named by the operator, who had recently cleared trees close to grid infrastructure in 18 parts of the wider Athens area prior to last week’s extreme weather system.

The operator was only given authority recently, on December 23, to cut trees deemed to pose a threat to the grid.

The operator also believes its telecommunication system requires a further upgrade, while also pointing out the need for better coordination between municipal and regional authorities, as well as the notable absence of real-time monitoring and swift identification of trouble spots, which would have been possible had smart meters been installed to households around the country.

Outages that lasted as long as several days for thousands of households would have been limited to just a few hours had smart meters replaced conventional power meters still being used in Greece.

DEDDIE/HEDNO announced a new tender in mid-December for the procurement and installation of digital power meters and related systems around the country after its previous tender, launched several years ago, was eventually brought to a standstill as a result of legal battles between rival bidders.

 

Number of households without electricity now down to 1,000

The number of households still without electricity following a heavy snowstorm earlier in the week has been narrowed down to less than 1,000, according to a latest update from energy minister Kostas Skrekas in a television interview.

Distribution network operator DEDDIE/HEDNO’s response to network damages, mostly in the wider Athens area’s northeastern section, has been far more effective than the effort made last winter to fix extensive damages following a heavy snowstorm, the energy minister told Antenna TV.

Households without electricity are now down to less than 1,000 from 200,000 on Monday, the minister noted, acknowledging the problems people have needed to persevere, while adding that all issues should be entirely resolved by midday today.

Coordination between DEDDIE/HEDNO and municipalities has been effective, which helped resolve 95 percent of issues over a 48-hour period, the minister noted.

HEDNO relaunches delayed tender for smart meters

A new tender for the procurement and installation of digital power meters and related systems around the country, essential for monitoring and swift pinpointing of technical problems, as the latest extreme weather conditions have highlighted, is being prepared for launch by distribution network operator DEDDIE/HEDNO after its previous tender, launched several years ago, was eventually brought to a standstill as a result of legal battles between rival bidders.

The operator has now started the procedure from scratch and prepared a new tender for the procurement and installation of 7.7 million smart meters, to gradually replace the country’s existing conventional meters over a five-year period.

DEDDIE/HEDNO invited prospective bidders to express interest in an announcement released in mid-December, energypress sources have informed.

The contract will include procurement and installation of point-to-point communication technology, an advanced metering infrastructure (AMI) system, as well as a meter data management (MDM) system.

The new tender will consist of two stages, a preliminary stage shortlisting bidders and a second stage for submission of financial and technical offers by participants.

Contracts for the smart meters and AMI system will be offered to up to three winning bidders, while the MDM system contract will be offered to one of these three.

 

Thousands still without power, smart meters a notable absence

Some 3,000 households, mostly in the wider Athens area’s northeastern section, are estimated to remain without electricity following a heavy snowstorm that peaked in the region Monday, leaving approximately 200,000 households powerless, according to a latest estimate this morning.

Distribution network operator DEDDIE/HEDNO crews are continuing repair work on four main lines, pending issues mainly concerning supply to the capital’s northeastern areas Kato Souli, Grammatiko, Schinia and Pikermi, as well as a smaller number of isolated cases.

Late last night, between 5,000 and 10,000 households were still without electricity, while, early yesterday, approximately 200,000 households were powerless. In some cases, residents in areas just 12 kilometers from the center of Athens needed to persevere without power for at least 36 hours.

Consumers have, understandably, lodged numerous complaints. Besides faulty planning and the responsibilities of authorities, the absence of smart meters was sorely missing, once again, as was the case with a heavy snowstorm last winter.

Smart meters offer a real-time picture on damages, serving as a type of radar that pinpoints network damages that enables technical crews to immediately focus on trouble spots rather than search and work haphazardly.

This explains why DEDDIE/HEDNO, the distribution network operator, relies on consumer updates to locate areas without low-voltage supply, a backwards need in the digital era.

Following many delays, the installation of smart meters at households around the country is now estimated to begin late this year.

 

Operator batting to restore power supply after snowstorm

Distribution network operator DEDDIE/HEDNO’s entire workforce is working around the clock to restore energy supply to areas without power or experiencing outages as a result of network damages caused by a heavy snowstorm that hit many parts of the country from early yesterday, including the wider Athens area.

The operator is striving to restore supply by tonight in affected areas in order to limit outages for households, including vulnerable groups, and avoid a second night without electricity.

It is a challenging task as access to some affected areas, especially in remote areas, has been limited by roads covered in snow.

A snowstorm that hit Greece last winter, during the month of February, had left a considerable number of households without power for as many as five days. Such drama cannot yet be ruled out on this occasion.

Last night, numerous electricity supply cuts were reported in many parts of Athens, especially the north and areas on the northern outskirts.

DEDDIE/HEDNO has urged the public to stay away from any network damages spotted, such as fallen power lines and broken utility poles, and instead immediately inform the operator via the hotlines 11500, 2111900500, the MyDEDDIE app on Android and iOS on mobile phones, or the deddie.gr website.

 

Fast-track procedures in place for power line undergrounding

The energy ministry, striving to replace overhead power lines with underground networks for the infrastructure’s protection following recent fire-related damages, preceded by snowstorm damages last winter, has taken measures to clear the way of any possible bureaucratic delays and is also seeking to secure additional funds for the undergrounding work.

Legislative revisions recently ratified in Parliament include a measure facilitating fast-track power line undergrounding by operators through forest land without them having to wait for approval from forestry officials, which has been customary practice.

As a result, distribution network operator DEDDIE/HEDNO and power grid operator IPTO can now proceed with power line undergrounding projects without delay or cancellation risks. This applies for both new power line networks and replacement of older ones.

The country has, at its disposal, EU Recovery and Resilience Facility (RRF) money totaling 187 million euros for power line projects.

However, given the average cost of power line network undergrounding, estimated at 85,000 euros per kilometer, the aforementioned RRF amount would suffice for the development of about 2,200 kilometers, just a tiny fraction of the country’s existing overhead power lines.

Besides the RRF, the energy ministry is also considering to exhaust funding support possibilities through the National Strategic Reference Framework (NSRF) for the power line undergrounding expansion projects, now regarded as essential due to the growing impact of the climate change crisis.

Grid saturation forcing operator to block RES term applications

The grid’s medium-voltage capacity has reached its limit in many parts of the country, according to related information published by DEDDIE/HEDNO, the distribution network operator, forcing it to reject the overwhelming majority of new RES project connection-term applications.

Medium-voltage grid capacity is currently fully saturated in areas covering 40 percent of the country, including western Macedonia, in the country’s north, a lignite-dependent area planned for decarbonization.

RES connection-term applications in these areas lacking grid capacity are all being rejected. In other parts of the country, where limited grid capacity remains available, nine in ten RES applications are being rejected by DEDDIE/HEDNO, creating issues for prospective investors.

The problem primarily concerns smaller-scale RES investment plans not possessing the capacity to connect to the grid via IPTO, the power grid operator.

The saturation problem’s extent is even preventing the installation of roof-mounted solar panels in some parts of the country, according to one source.

The subdued potential, at present, of the latest Saving at Home program offering subsidies for energy efficiency upgrades at properties has been partially attributed to the grid’s lack of capacity for new RES installations.

 

Network damages estimated at €25m, operator well stocked

Damages to electricity infrastructure caused by extensive fires in various parts of the country have, according to an initial estimate, reached between 20 and 25 million euros, but the cost could rise as fires are still burning in northern Evia, one of the hardest hit areas, sources at DEDDIE/HEDNO, the distribution network operator, have noted.

The estimate includes sub-stations, utility poles and power lines. The operator is stocked with all the equipment needed to replace damaged infrastructure, the sources added.

The operator has been stocking up over the past year and a half, covering any equipment shortages, according to the sources.

Even so, the cost of the fire-related damages is not negligible. It represents approximately 14 percent of last year’s total investments at DEDDIE/HEDNO, which reached 175 million euros.

Up until Saturday, 2,150 utility poles, 120 sub-stations and 109 kilometers of low and medium-voltage power lines in the wider Athens area, Evia and the Peloponnese were reported to have been damaged, but these figures are expected to increase.

Tender relaunch for €1.6bn nationwide distribution network upgrade

Distribution network operator DEDDIE/HEDNO has relaunched a mammoth tender worth a total of 1.6 billion euros for the reinforcement and upgrade of the distribution network throughout Greece over a five-year period.

The tender was initially announced several months earlier but then withdrawn to take into account and adopt certain observations made by interested parties.

The relaunched tender concerns 37 contracts around Greece, 8 of these in the wider Athens area, 9 in the Macedonia-Thrace region, 7 in the Peloponnese and Epirus, 6 in central Greece and 7 at island locations.

DEDDIE/HEDNO aims to reinforce the distribution network for its role in the energy transition, while also protecting it against extreme weather conditions.

Pivotal IPTO substation returning to full capacity after repair work

Power grid operator IPTO’s pivotal Koumoundourou high-voltage substation, serving the wider Athens area, will be ready to counter elevated electricity demand levels of the summer season as the installation of a new autotransformer, required following an explosion and fire at the unit in February, has been completed, enabling the facility to return to full capacity, expected within the next few days.

Since the accident, the substation has operated below full capacity, following temporary adjustments.

The Koumoundourou substation’s return to full capacity promises to reinforce the country’s grid security, especially in the Peloponnese, as the summer’s power-demand peaks draw nearer.

Besides the fire-related repair work, the Koumoundourou substation is also undergoing an overall revamp, budgeted at 46 million euros. Work on this upgrade, scheduled to require a total of two and a half years to complete, is expected to be completed in September, 2023.

Once completed, the upgrade will enable the substation to take on a significant proportion of the electricity load needed in the wider Athens area, while it will also serve as the connection point for the Crete-Athens grid interconnection, expected to be completed within 2023.

The substation will also serve as a terminal for the Eastern Corridor (400 kV) from the Peloponnese to the mainland, whose completion is expected in 2024.

 

HEDNO boosting substation capacities for RES connections

Distribution network operator DEDDIE/HEDNO is installing new transformers at existing substations in an effort to exhaust the technical potential of existing infrastructure and boost capacity for new RES connections, primarily solar energy, as well as other technologies.

Over the past few weeks, the operator has been installing additional transformers at existing substation units in northern Greece’s west Macedonia region, as a pilot stage,  energypress sources have informed.

This reinforcement approach cannot be implemented at all substation facilities as some are not big enough to host additional transformers, technical staff at the operator explained.

Once the reinforcement effort has been completed in the west Macedonian region, DEDDIE/HEDNO crews will also begin working on networks in other parts of Greece.

 

IPTO to challenge RAE’s €5m fine for west corridor line delay

Power grid operator IPTO will legally challenge a 5 million-euro fine imposed by RAE, the Regulatory Authority for Energy, for delays in the development of a “west corridor” transmission line in the Peloponnese, from Patras to Megalopoli, operator sources have informed energypress.

The authority’s decision is legally baseless and does not serve interests for optimal functionality in the energy market, the sources noted.

The RAE fine imposed on IPTO encourages local reaction in general and is detrimental to the effort being made for swift development of infrastructure projects around Greece, the operator’s sources added.

IPTO has never kept concealed delays it has faced to develop a small fraction of work remaining for the west corridor’s completion as a result of resistance raised by a regional monastery in the Kalavryta area, the operator sources asserted.

As soon as legal action was taken, late last year, against this project’s completion, IPTO informed RAE in writing about the initiative’s repercussions on the development plan, the sources said.

Also, IPTO does not accept any responsibility for balancing market cost increases, which have risen since last November’s target model launch, and will support its position by providing facts and evidence to RAE as well as other Greek and European authorities, the sources told.

 

Energy investment activity rising, focus on RES projects, energy transition

Investment activity in the domestic energy sector is rising with major deals being negotiated, the main focus being on renewables and the energy transition, participants at yesterday’s Delphi Economic Forum made clear.

This activity promises significant growth for all RES technologies, even the more innovative, such as offshore wind farms and energy storage units.

Major energy players are moving to capitalize on opportunities that are emerging as the country pushes ahead with its decarbonization effort. Also, investor talks concerning domestic and international partnerships, the latter promising to secure expertise in sectors such as offshore wind farms, are in progress.

Power utility PPC, moving ahead with RES investments, aims to have launched projects with a total capacity of 1.5 GW by 2023. The utility’s redevelopment plan for the country’s two lignite-dependent regions, Ptolemaida, in the north, and Megalopoli, in the Peloponnese, is in progress.

PPC plans to invest 3.4 billion euros on RES project development in these regions, and an upgrade of their distribution networks, Konstantinos Mavros, chief executive of PPC Renewables, a PPC subsidiary, told the forum.

PPC is also expected to establish partnerships facilitating its entry into the offshore wind market. In addition, the company also aims to have formed a joint venture with German power company RWE by the end of summer for development of RES projects totaling 2 GW.

Elsewhere, energy company Mytilineos is also preparing a strategic alliance with a major international group for its entry into the offshore wind farm sector.

Mytilineos is also close to completing, this year, a major post-lignite investment in natural gas-fueled electricity generation. In addition, the company plans to develop 300 MW in wind farms and 1.5 GW in solar farms over the next two years.

Furthermore, Mytilineos plans to develop 20 energy storage projects, each with 50 MW capacity, by utilizing its immense knowhow gained in this field through involvement in such projects abroad.

Hellenic Petroleum (ELPE) is preparing RES and digital transition projects and will concurrently focus efforts to reduce carbon emissions and develop more eco-friendly products, including biofuels and hydrogen.

The Copelouzos group is nearing an investment decision on the development of a natural gas-fueled power station in Alexandroupoli, northeastern Greece. A decision is expected this summer. The group is currently engaged in talks with neighboring North Macedonia’s power utility for its possible entry into this project as a minority partner.

As for networks, power grid operator IPTO has planned numerous projects as part of a ten-year investment plan worth five billion euros. The operator anticipates new RES project penetration of 17 GW, a forecast exceeding the National Energy and Climate Plan’s goals.

DEDDIE/HEDNO, the distribution network operator, has put together a 3 billion-euro investment plan for the two next regulatory periods, each four years long. Projects include network undergrounding, service upgrades and improvement, new technologies, as well as grid digitalization projects.

RAE incentives-based plan for IPTO as part of new policy for operators

RAE, the Regulatory Authority for Energy, is set to forward a package of incentives for power grid operator IPTO designed to influence the operator’s annual earnings when specific objectives are achieved or missed.

This move by the authority comes as part of its wider effort offering incentives to electricity and gas market operators.

RAE, at its latest board meeting, approved a first set of incentives proposed for IPTO by an external consultant, energypress sources have informed. This set of incentives is expected to be forwarded to IPTO within the next few days for observations and comments.

The regulatory authority is aiming to forward the package of IPTO incentives for public consultation towards the end of this month, before it is endorsed by the board and published in the government gazette by the end of June, and implemented six months later.

The authority is essentially aiming for the package to be implemented by January 1, 2022, as part of a new framework covering 2022 to 2025.

The same external consultant was hired for a similar-minded set of incentives concerning the electricity distribution network operator DEDDIE/HEDNO.

RAE’s chief executive Thanassis Dagoumas recently told a news conference that the authority intends to adopt an incentives-based strategy for all operators with the aim of improving their services.

The authority will intensify its monitoring of operator projects in development and ultimately hand out bonuses or penalties, depending on the degree of progress, he noted.

For the time being, the incentives-based strategy applies for DEDDIE/HEDNO, as well as the gas distribution operators (DEDA, EDA Attiki, EDA THESS), offering extra WACC for the achievement of objectives concerning gas market penetration and distribution cost reduction for consumers.

 

HEDNO VDR opening Tuesday, bidders in partnership talks

Power utility PPC plans to open a virtual data room concerning the sale of a 49 percent stake in subsidiary firm DEDDIE/HEDNO, the distribution network operator, on Tuesday, once confidentiality agreements with nine second-round qualifiers, and other documents, have been approved by the utility’s board, expected a day earlier.

All documents necessary for the sale procedure will be forwarded to the nine bidders for observations.

The VDR will offer bidders access to technical and financial data concerning DEDDIE/HEDNO.

As of next week, PPC and each of the nine second-round qualifiers, preparing to make binding bids, will begin separate talks, correspondence and negotiations that are expected to run for months, for the finalization of a shareholders agreement.

Given the width of second-round qualifiers, this privatization’s completion is anticipated towards the end of autumn.

The buyer’s board representation will reflect the minority 49 percent stake to be acquired, with 5 members on an eleven-member board, or 4 members if a nine-member board is chosen.

Some board members will be given reinforced managerial roles for the PPC subsidiary. Proposals for the chief financial officer and chief operating officer posts will be made by the buyer, according to sources.

Though the road ahead towards the DEDDIE/HEDNO sale’s completion is long, the nine second-round qualifiers have already begun talks for possible partnerships, between themselves and beyond.

One of the nine qualifiers, the US fund CVC Capital Partners – whose Greek portfolio is continuously growing, investments including three hospitals, Metropolitan, Iaso General and Ygeia, as well as imminent deal completions for food production conglomerate Vivartia, dairy company Dodoni, and insurance company Ethniki Asfalistiki – is engaged in talks with fellow US fund KKR and Australia’s Macquarie for the establishment of a consortium that would bid as one for a 49 percent stake in DEDDIE/HEDNO. KKR and Macquarie are among the nine second-round qualifiers in the DEDDIE/HEDNO sale.

HEDNO sale bids to be delayed by 2 months, for September

The privatization plan for distribution network operator DEDDIE/HEDNO, whose sale is offering investors a 49 percent stake, is expected to be delayed by approximately two months as a result of the need for greater preparation time prompted by the large buyer turnout.

The operator’s parent company, PPC, the power utility, will now aim for a binding-bids deadline and finalization of the sale around September.

According to the sale’s original schedule, candidates were set a July deadline for binding bids.

Nine funds have qualified for the second, and final, round. They could be joined by energy market operators ahead of their binding bids.

PPC chief executive Giorgos Stassis plans to table the distribution network operator’s privatization at the parent company’s next board meeting.

Stassis will, yet again, inform the PPC board on the level of suitability of second-round qualifiers in terms of their energy infrastructure track records and, even more crucially, ability to meet the demands of DEDDIE/HEDNO’s investment plan, requiring 3 billion euros until 2028.

Separate talks are currently being held by the seller with representatives of each of the nine funds, in the process of signing confidentiality agreements for access to the operator’s virtual data room, containing technical and financial data.

Minority role for HEDNO buyer of 49%, cooperation promised

The prospective buyer of a 49 percent stake in distribution network operator DEDDIE/HEDNO is expected to be given minority rights, reflecting the acquired stake, in the company’s new management and board.

The ongoing privatization’s nine second-round qualifiers will be provided full details on the precise administrative model to be adopted and the sale procedure’s next steps in letters to be forwarded by state-controlled power utility PPC, the operator’s parent company, possibly on May 10.

The buyer is expected to be represented by five members in an 11-member board or four members should a nine-member board be favored. Some of the buyer’s board members are expected to have bolstered managerial roles.

In its forthcoming letters to the second-round qualifiers, PPC, to maintain majority control of DEDDIE/HEDNO, is expected to ensure that the eventual buyer will not face obstacles in crucial investment issues as the power utility will be a cooperative chief partner.

Once they have been updated on details by PPC, through its forthcoming letters, the nine second-round qualifiers are expected to sign confidentiality agreements offering access to the operator’s virtual data room.

A series of private meetings between bidder representatives and PPC will follow, ahead of their binding offers, expected to be submitted by September.

All nine qualifiers are believed to be considering partnerships ahead of their binding bids. In recent weeks, a well-known foreign fund already possessing a strong presence in Greece’s food market, as well as other sectors, has been involved in talks, for a minority role, with one of the US or Australian funds through to the second round.

Collectively, the second-round qualifiers in the DEDDIE/HEDNO sale manage over 10 trillion euros, while most have interests in utilities around the world.