Climate change impacting energy output of sources, networks

There has been much debate of late on the ability of Greece’s grid to operate up to standard amid extreme conditions, the talk prompted by last month’s deadly flash floods in the country’s northern region Halkidiki, as well as the current heatwave throughout the country.

Rising air and water temperatures impact both conventional and nuclear energy production, Europe’s biggest energy source, in a number of ways. Water temperatures need to be at optimal levels for nuclear stations to function properly. Operations at nuclear energy facilities in France have needed to be interrupted this year, as well as in the past, as a result of unsuitable water temperatures.

High air temperatures impact, for various reasons, the output levels of gas and fuel-fired power stations, renewable energy sources, as well as nuclear energy facilities, while coal and biomass units are less affected.

Natural gas-fired power station production levels drop by 0.1 percent for every one-degree Celsius increase in air temperature. The production drop is greater for nuclear units, reaching 0.5 percent. A further one-percent production drop is caused by every 5-degree Celsius increase in water temperature.

Hydropower facilities are affected as a result of greater evaporation and lower water levels.

Solar energy systems also produce less amid extremely hot temperatures, the drop estimated at between 0.4 and 0.5 percent for every one degree Celsius increase in temperature, according to an older study.

Though alternative sources are brought into action to ensure energy sufficiency when certain electricity production units are under-performing, networks, also susceptible to heatwaves, do not have such flexibility.

Higher temperatures affect the production levels of transformers and cables,  overland and underground. Network yield losses increase by one percent for every three-degree Celsius rise in temperature. The increased threat of fires, as was experienced in the worst possible way in California last year, only makes matters worse.

Energy system adjustments are urgently needed in various parts of the world, including Greece, as grids were shaped under certain assumptions and factors that reflect past conditions, not more recent developments, namely global warming and climate change.

Over the past decade or so, certain countries, including France, have made energy system revisions and implemented these changes. However, the speed at which the climate has destabilized may require follow-up revisions.

 

 

DEDDIE to recover €115m network revenue shortfall, authority notes

Distribution network operator DEDDIE/HEDNO’s expected revenues for the past few years have fallen short of forecasts by an accumulated amount of 115 million euros as a result of subdued electricity demand amid the Greek recession, authorities have noted.

Given the fact that operators cannot suffer losses of regulated amounts, this 115 million-euro amount shortfall will need to be recovered by DEDDIE through network tariffs to be set by RAE, the Regulatory Authority for Energy, for the next few years.

The tariff’s implementation will be spread over time to avoid overburdening consumers, sources informed.

DEDDIE’s robust financial standing is essential for the electricity network’s operation, development and maintenance.

The operator’s role is also of pivotal importance for the country’s energy transition, placing emphasis on renewable energy and decentralized production, explained RAE official Nektaria Karakatsani.

New minister set to present PPC recovery plan details

Hydropower units belonging to the power utility PPC will not be sold; NOME auctions will be abandoned; and electricity costs for consumers will not rise, the newly appointed energy minister Costis Hatzidakis is expected to announce later today when the New Democracy party presents its wider  policy program.

The minister is also expected to present details of a plan to seek strategic investment into distribution network DEDDIE once control of the network is transferred from PPC to the subsidiary with the permission of creditor banks.

Prime Minister-elect Kyriakos Mitsotakis is expected to make a general announcement on this network sale plan before his energy minister follows up with further details. The procedure will offer full protection for PPC’s interests, including compensation for the sale, the government officials are expected to stress.

The minister’s plan for an end of NOME auctions, launched about three years ago to offer independent parties access to the power utility’s lower-priced lignite and hydropower sources, was approved by the country’s lenders last week at a meeting between the two sides in Athens.

A transition plan leading to the launch of the target model, to offer market coupling, or harmonization of EU wholesale markets, is expected to be reached between the minister and the lenders when they next return to Athens for official talks in September. The transition plan will be designed to ensure that supply markets remain fully operational ahead of the target model’s launch.

The energy minister’s promise of no electricity cost increases for consumers will be accompanied by details of the state-controlled power utility’s more ruthless handling of unpaid receivables owed by consumers believed to be able, even affluent, but unwilling to cover their power bill debts. PPC is under financial pressure.

The government intends to reshape PPC along the lines of the transformation of telecommunications company OTE, a corporation in which the Greek State now holds just 5 percent, Deutsche Telekom being the main shareholder with a 45 percent stake.

Besides preventing a systemic crisis posed by PPC’s current financial woes, a rebound by the power utility would also send out a positive message for the Greek market to domestic and foreign institutional investors.

 

 

 

Grid on edge, new energy ministry notes, fearing blackouts

The newly elected conservative New Democracy government’s energy ministry fears repeats of recent blackouts experienced in Athens and Crete’s Lasithi region, in the event of protracted heatwaves, contending the grid’s powers are insufficient.

The new energy minister Costis Hatzidakis is taking every opportunity to warn that the country’s grid would find itself under severe pressure should weather conditions hit extreme situations for extended periods. Blackouts are the worst nightmare for any newly appointed energy minister.

“The grid has reached its limits,” Hatzidakis told local media over the weekend.

The system has faced additional pressure over the past few days as a result of severe storms in Halkidiki, northern Greece, which killed 7 persons.

HEDNO/DEDDIE, the operator managing the mainland’s distribution network, has decreased its investments by 39 percent over the past three years.

The operator is also believed to be severely understaffed, in terms of technical personnel, and short of spare parts needed for the grid’s security. These factors have contributed to delays in repair work, new connections and required upgrades of old infrastructure.

 

New power demand record set yesterday, forecast exceeded

A new winter season electricity consumption record was set by the grid yesterday, exceeding levels reached during the energy crisis in the winter of 2017.

Power grid operator IPTO’s forecast of 178,000 MWh for yesterday ended up reaching 185,000 MWh, setting a new record for one day’s demand during the winter.

IPTO’s miscalculation prompted lower day-ahead market levels and a lower System Marginal Price (SMP) of 75.70 euros per MWh. This wholesale price level would probably have been higher had the operator’s electricity demand forecasts been more accurate.

The operator’s miscalculation has been attributed to a misjudgement of the impact on electricity demand of the return to normal work and production schedules following the festive season.

The winter weather conditions were milder yesterday compared to Tuesday but the return to full-scale operations at most schools, businesses and industrial enterprises was underestimated. January 6, Epiphany (Theofania), is a public holiday in Greece.

IPTO had forecast a demand level of 7,770 MW for midday yesterday but the actual level reached 8,996 MW. The forecast for 1 pm was 7,750 MW but ended up reaching 8,936 MW, while the forecast for 2 pm, 7,670 MW, was also less than the resulting 8,904 MW figure.

The additional electricity amounts needed by the grid prompted greater distribution difficulties. Solar energy output was diminished due to the weather conditions but wind energy levels were up for a number of hours.

All available thermal and hydropower facilities needed to be called into action, while industrial enterprises were placed on stand by for implementation of the demand response mechanism if the pressure on the grid worsened. This alert ended up not being triggered as temperatures registered sharp rises of more than five degrees Celsius between 11 am and 1 pm.

 

Local resistance against substation ‘to blame for power issues on Tinos’

Local resistance by islanders that ended up blocking the installation of a new electrical substation on Tinos is the reason behind functional issues at the island’s desalination facilities late last summer, DEDDIE/HEDNO, the Hellenic Electricity Distribution Network Operator, has responded to extrajudicial action taken by the Tinos municipality following frequent voltage fluctuations.

The functional issues at the desalination facilities impacted water supply on Tinos.

The design and maintenance standards of the island’s mid-voltage power supply lines are based on Greek and international specifications, DEDDIE/HEDNO noted in its response to the Tinos municipality’s extrajudicial action.

The operator explained that extreme weather conditions experienced on the island in late August, a factor whose effects on electricity grids can never be ruled out, impacted mid-voltage supply.

Realizing Tinos needed a power grid revamp prior to the summer’s voltage fluctuations and consequent issues, DEDDIE/HEDNO as well as IPTO, the Greek power grid operator, had scheduled the development of a new substation with a high-to-medium voltage transformer, which would have significantly improved the quality of power supply on Tinos. However, plans for a new substation were thwarted by legal action taken by islanders.

Greek power supply service improving, still behind top EU performers

A report assessing the overall quality of Europe’s power grids and related services ranked Greece 10th for 2016 in terms of the number of planned and unplanned electricity supply cuts, which represents an improvement compared to previous years.

The countries listed above Greece in the planned and unplanned frequency of power cuts category were Slovenia, Malta, Romania, Croatia, Latvia, Ireland, Lithuania, Poland and the Czech Republic.

Greece was listed among nine of 26 EU member states not resorting to incentives and penalties for operators in terms of damage category, frequency and repair time.

On the contrary, Belgium, Bulgaria, the Czech Republic, Denmark, Finland, France, Germany, the UK, Hungary, Ireland, Italy, the Netherlands, Norway, Portugal, Slovenia, Spain and Sweden were listed as the countries offering incentives to operators.

Incentives and penalties offered vary from country to country. Most countries do not apply any supply continuity plan at present, while Greece, along with Austria, Luxembourg and Romania, do not plan to do so.

Greece is also missing from the list of EU member states conducting power supply quality inspections.

Certain countries, including the Netherlands, offer consumers compensation amounts that are determined by the duration of unexpected power supply cuts. According to the Dutch compensation system, limited supply cut periods are permitted, but consumers are entitled to compensation for durations exceeding these limits. Other countries, such as Estonia and Romania, go a step further and even compensate preplanned power supply cuts.

Regulations in Greece limit power supply cut compensation to mid-voltage consumers if interruptions exceed 12 hours. Compensation amounts of 120 euros are automatically awarded to consumers in such cases.

 

Development of smart digital grid a key strategy at HEDNO, chief tells

The country’s electricity distribution network, to be modernized, will play a key role in the transformation and successful changes taking place, on all levels, in the local electricity market, Nikos Hatziargyriou, the head official at HEDNO/DEDDIE, the Hellenic Electricity Distribution Network Operator, noted in an interview for local business news channel SBC’s Energy Week show, hosted by energypress journalist Thodoris Panagoulis.

The official, who offered an analysis of the operator’s plans during the interview, explained that electricity markets in Europe and around the world are undergoing drastic changes as a result of climate change, development of dispersed energy sources, such as small-scale solar facilities, as well as moves being made to transform consumers into market players. The distribution network is a vital factor for all these developments, Hatziargyriou stressed.

The Greek electricity market faces additional changes as new suppliers entering the market are seeking to increase their market shares, while small production units are growing in numbers, all of which will rely on the distribution network, the official noted.

HEDNO/DEDDIE plans to modernize the country’s distribution into a high-tech smart grid in order to cater to all these changes and new technologies, Hatziargyriou said.

The digitization of networks represents a major challenge for all operators, the official highlighted, adding that HEDNO/DEDDIE’s new strategic plan is comprised of 12 specific projects intended to upgrade the network by offering improved control, more effective monitoring, automated systems and, ultimately, better customer services.