NECP investments of €192bn until 2030 promise GDP surge

The revised National Energy and Climate Plan, boosted to include more ambitious targets for 2030, anticipates investments worth 192 billion euros – primarily in transport – which promise to provide unprecedented momentum for the Greek economy.

Of this 192 billion-euro total, an amount of approximately 100 billion euros is expected to be injected into the electromobility sector, for which an NECP target figure of 460,000 electric vehicles has been set by 2030.

This leaves a further 92 billion euros, still an enormous amount, for investments in other sectors. Energy-related modernization of household equipment and appliances, as well as building energy-efficiency upgrades, are seen capturing the biggest share, with nearly 50 billion euros in investments forecast over the next seven years.

Replacement of outdated household equipment with new, more efficient systems is expected to mobilize close to 42.4 billion euros, according to the revised NECP. A further 6 billion euros in spending is expected for energy-efficiency upgrades to buildings.

The numbers are staggering and highlight a prospective boom in construction and related sectors, as long as households are ensured substantial aid and financing.

Subsidy programs supporting home energy-efficiency upgrades and electric vehicle purchases will need to be doubled, even tripled, annually, compared to previous years, as pointed out in the revised NECP, if abounding theories contending that the green transition is costly and financially harmful are to be proven wrong.

The percentage of GDP for spending on all types of energy-related products and services is seen rising from 19.4 percent in 2021 to 21.6 percent in 2030, before sliding to 17 percent.

Investments in all forms of cleaner electricity production, from solar farms to onshore and offshore wind farms, are ranked third. The revised NECP anticipates investments totaling 11.9 billion euros until 2030 in this domain.

Grid development is ranked fourth with anticipated investments of 6.5 billion euros by 2030, followed by much smaller amounts for energy-efficiency improvements in industry, natural gas and oil systems and other alternative fuel-related expenditure.

Revised NECP sets more ambitious targets for 2030

Greece’s revised National Energy and Climate Plan, forwarded to the  European Commission and published on its website, sets new 2030 targets of 23.5 GW for all forms of renewables, 5.3 GW in energy storage, 7.7 GW in natural gas-fueled power stations, zero lignite presence, as well as a fleet of 460,000 electric vehicles.

In the RES sector, the country’s new NECP sets goals for 2030 of 9.5 GW in wind energy capacity, including 1.9 GW in offshore wind farms; 13.4 GW in solar power capacity; and 0.6 GW in other RES technologies.

Onshore wind farm capacity is planned to expected to increase by 12 GW between now and 2030, from 11.5 GW at present to 23.5 GW in 2030. The 2030 capacity goal for hydropower plants has been set at 3.8 GW.

The energy storage goal of 5.3 GW is expected to consist of 3.1 GW in batteries and 2.2 GW in pumped-storage hydropower stations.

Total annual electricity production is expected to reach 64.6 TWh in 2030, while electricity imports are forecast to be slashed to no more than 3 percent of Greece’s overall electricity generation, according to the revised NECP.

Renewables are planned to represent 44 percent of energy consumption by 2030, up from 35 percent in the previous NECP. Also renewables have been set an objective to contribute 80 percent of electricity production by 2030, significantly higher than the current NECP’s level of 61 percent, and close to 95 percent from 2035 onwards.

The revised NECP includes a zero-carbon emissions target in electricity generation from 2035 onwards.

Carbon emissions have already dropped significantly in 2023 as a result of the withdrawal of lignite-fired power stations.

TIF-HELEXPO: Renewable Energy Tech exhibition on renewables, storage, green and smart energy in Thessaloniki March 14-16, 2024

Thessaloniki International Fair (TIF)-HELEXPO’s unique – for exhibition standards in Europe and beyond – venture to expand into the promising green economy field is continuing and being enriched.

The 2nd Forward Green Circular Economy International Exhibition will be held at the Thessaloniki International Exhibition Center March 14 to 16, 2024, while, at the same time, the 1st Renewable Energy Tech, a large-scale, European-standard trade fair exclusively focused on the green and smart energy market, will take place at a separate exhibition space.

As noted in a relevant announcement, Renewable Energy Tech will be staged in collaboration with energypress.gr, the largest news and information portal on energy matters, which also organizes the most important annual conferences on energy, covering all its sub-sectors.

This new exhibition will give the opportunity to dozens of companies, active in Greece and southeast European countries – in the fields of renewable energy, energy storage, hydrogen and “green” gases, electromobility, energy saving, smart management applications and, overall, in the sectors of the green energy economy – to exhibit their products and services and also come into contact with potential partners or competitors.

Renewable Energy Tech, within its framework, will host a major international conference on renewable energy, storage and green technologies, while the exhibition facilities will include specially designed areas for B2B meetings.

The Forward Green and Renewable Energy Tech events promise to serve as the region’s most dynamic exhibition duo for new energy production and consumption standards, as well as for technologies of the future, dramatically changing the economy and everyday life of modern societies.

For further information:

Panagiotis Hatziioannou pc@helexpo.gr

Katerina Benaki kb@helexpo.gr

 

NRG, Hochtief reach deal for EV charging station network

Energy company NRG, a member of the Motor Oil Hellas group, and German construction group Hochtief have formed a 50-50 joint venture for the development and operation of an electric vehicles charging stations network at Greek highways.

Hellenic Fast Charging Services, their joint venture, plans to develop 52 charging spaces at 13 EV charging stations along Olympia Odos, running from Elefsina, west of Athens, the Rio-Antirrio bridge close to Patras, as well as along Autokinitodromos Aigeou, running along the mainland’s east coast. The joint venture has already secured contracts for these projects.

As a first step, Hellenic Fast Charging Services plans to invest 3.5 million euros, an amount expected to double by next summer, as part of a wider effort for the development of 200 new EV charging stations.

By covering a significant part of the country, NRG is playing pivotal role in driving and shaping the development of electromobility in Greece, noted Anastasios Lostarakos, General Manager of NRG.

Hochtief, which has secured contracts for EV charging stations in Germany, approached NRG, already a key player in Greece’s electromobility market with a share of over 50 percent.

The Olympia Odos and Autokinitodromos Aigeou operational contracts for EV stations run until 2038 and include an option enabling an extension until 2041.

 

Market players seek maximum benefits from revised NECP

Market players have expressed a range of reservations and concerns about targets set in the country’s revised National Energy and Climate Plan, whose finalization is a step away, following consultation that was completed early this month.

The revised NECP is designed to provide market range and policy guidance rather than to offer precise, pinpointed figures, one inside source has told energypress.

For its part, the industrial sector described the cost of the green transition included in the NECP as “exorbitant”, while at the same time stressing the need for investment support and funding for new technologies, such as hydrogen and renewable gases.

Produc-E Green, a subsidy program budgeted at 199.7 million euros and funded through the Resilience and Recovery Fund (RRF), was launched in May to provide financial support for the development of innovative, green-energy facilities.

Subsidies offered through the Produc-E Green program can reach up to 70 percent of investment cost for domestic companies establishing facilities manufacturing products concerning electromobility, renewable energy and energy saving.

SEF, the Hellenic Association of Photovoltaic Companies, noted the NECP is generally headed in the right direction but proposed greater solar-energy participation in the energy mix and increased targets for battery storage.

The new NECP foresees reduced installed photovoltaic capacity in 2030, compared to an earlier draft of the plan in January, 2023, down to 13.4 GW from 14.1 GW.

ELETAEN, the Greek Wind Energy Association, in a letter to the energy ministry, has noted, among other things, that the target for onshore wind energy units is extremely low and not aligned with the market’s true potential.

Market conditions indicate that the country’s wind-energy capacity will total nearly 6.5 GW within the next three years, meaning that a 7.6-GW target set for 2030 would lead to a major slowdown from 2026 onwards, ELETAEN noted.

Environmental organizations have been highly critical of the revised NECP draft, describing it as a compromise favoring natural gas, compared to the plan’s previous draft.

 

Electric car charging network to exceed 800 MW by 2030

Greece’s electric vehicle charging network is expected to exceed a capacity of 800 MW by 2030, a level that would facilitate the development of electromobility so that one in three new vehicles can be electric by the end of the decade, according to the revised National Energy and Climate Plan.

In practical terms, this means charging stations will need to offer at least 1.3 KW for every purely electric vehicle and 0.8 KW for hybrid models.

Meanwhile, authorities are also promoting the development and use of smart systems for communication with charging infrastructure, their control, and possibilities provided to computer users for easier use of these systems.

The growth of charging infrastructure is expected to be promoted through a comprehensive approach combining tax incentives and subsidies. This strategy will be further bolstered by the implementation of mandatory charging infrastructure in suitable areas.

The integration of these measures with the deployment of intelligent systems promises to not only enhance charging efficiency, but also offers opportunities for domestic business expansion.

 

Electric vehicle penetration target lowered in revised NECP

Greece’s revised National Energy and Climate Plan includes a reduced electromobility penetration target, down to 29 percent of the country’s fleet for 2030 from 32 percent at the beginning of the year, as well as a 19 percent intermediary target for 2025.

The country’s fleet of electric vehicles is expected to increase from approximately 25,000 at present to 85,000 in 2025 and over 750,000 by 2030, according to the revised NECP.

The NECP also favors the maintenance of subsidies and incentives for electric vehicles.

Achieving the revised targets for the reduction of CO2 emissions in the light vehicle sector requires both the continuation of existing policies and the adoption of new policies, as well as the adoption of measures focused on maintaining and improving an appropriate framework for electrification, to a significant extent, of this sector, according to the revised NECP.

Policy measures should include financial incentives for electric vehicle ownership in the form of tax incentives and subsidies, as well as incentives related to the cost of using vehicles, it adds.

NRG striving for leading role in country’s electric car market

Retail energy firm NRG, a member of the Motor Oil group, is aiming for a leading role in Greece’s electromobility market and has set ambitious objectives, including comprehensive in-charge solutions for businesses and households and an increase of the company’s recharging stations around the country from 500 at present to 1,000 by the end of the year.

New recharging station installations, through business-to-business deals, are being planned by NRG for key points, including at hotel facilities, corporate buildings, supermarket chains and shopping centers, followed by households.

NRG has already established agreements with two supermarket chains, My Market and Masoutis. The agreement with My Market involves the installation of 500 recharging stations at 250 points by the end of 2023, while the Masoutis deal entails the installation of 300 recharging stations at 150 points.

NRG has also reached hotel-sector deals with Costa Navarino and the Greco Hotel group, and, to date, has installed recharging stations at over 80 hotel points.

Covering 70 to 80 kilometers with an electric car costs approximately 6.50 euros, well below the fuel cost tallied by a conventional car model, estimated at 16 euros.

At present, approximately 13,000 plug-in hybrid cars are being used in Greece. Some 4,000 electric cars are in use.

 

EU approves end of combustion engine sales by 2035

The European Union has approved a plan to end the sale of vehicles with combustion engines by 2035 in Europe, the 27-member bloc announced in a bid to reduce CO2 emissions to zero.

The measure, first proposed a year ago, will effectively halt sales of petrol and diesel cars as well as light commercial vehicles and facilitate a complete shift to electric engines in the European Union from 2035.

The plan is intended to help achieve the continent’s climate objectives, in particular carbon neutrality by 2050.

At the request of countries including Germany and Italy, the EU-27 also agreed to consider a future green light for the use of alternative technologies such as synthetic fuels or plug-in hybrids.

While approval would be tied to achieving the complete elimination of greenhouse gas emissions, the technologies have been challenged by environmental NGOs.

Environment ministers meeting in Luxembourg also approved a five-year extension of the exemption from CO2 obligations granted to so-called “niche” manufacturers, or those producing fewer than 10,000 vehicles per year, until the end of 2035. The clause will benefit luxury brands in particular.

These measures must now be negotiated with members of the European Parliament.

Second EV subsidies plan, offering bigger amounts, imminent

A second round of subsidies for electric vehicle purchases, offering as much as 8,000 euros per vehicle, is expected to be announced imminently by energy minister Kostas Skrekas, possibly even during the day, ahead of an anticipated launch in April.

According to sources, the second package will offer EV subsidies worth 30 percent more than those making up the first round.

A 6,000-euro upper limit had been set for the first package, but this level is now expected to be increased to 8,000 euros.

The second EV subsidy package is expected to total between 30 and 40 million euros, which, according to sources, will stem from the Energy Transition Fund as well as leftover funds from the first package.

Electric bicycles and tricycles are once again expected to be included in the new EV subsidy package, to be made available for both individuals and companies.

The subsidy support package is also believed to include incentives, worth as much as 2,000 euros per applicant, for the withdrawal of older vehicles.

Energy ministry officials have expressed satisfaction over the public’s response to the first EV subsidy package. A total of 18,000 applications were submitted, generating turnover of 70 million euros in the market, according to the energy ministry’s secretary-general Alexandra Sdoukou.

Subsidy applications for electric bicycles dominated the government’s first EV subsidy package with a 69 percent share, while 22 percent of applications concerned motorbikes and nearly 10 percent were for cars, Sdoukou has informed.

The prospect of a VAT reduction, from 24 to 6 percent, for EVs is being examined, the official has noted.

 

Survey Digital, Alfen establish Field Service partnership

“Survey Digital Photovoltaics SA (Athens, Greece), an expert company in renewable energy and power electronics, and Alfen (Almere, The Netherlands), an expert company in electricity grid and EV charging technology, have announced a Field Service partnership for the Greek territory, starting with Athens and Thessaloniki.

Survey Digital engineers have received technical training from ALFEN in order to execute Field Service activities in accordance with OEM specifications. This will mark the beginning of ALFEN’s ambitious growth throughout Greece in EV charging supported by SD’s extensive experience and knowledge of the Greek market.

“We are thrilled about our new collaboration and we are honored to enter a new era in electromobility, with a company that has such expertise and magnitude”, said Dr. Kostis Daniilidis, Managing Partner of Survey Digital Photovoltaics SA.

“Survey Digital has shown themselves as a reliable partner in this young EV-charging industry. We are looking forward to expanding the market together in Greece providing top customer support towards our Alfen customers”, said Eric Boers, Manager Global Service Operations Alfen Charging Equipment.

Incentive boost for company electromobility upgrades

A series of energy ministry revisions made to boost the appeal of a program subsidizing electromobility purchases is expected to soon be implemented.

To date, subsidies absorbed through the support program, dubbed ‘Moving Electrically’, have reached 13.9 million euros, 31 percent of its total amount.

Under the revised subsidy terms, companies will be entitled to apply for the purchase or lease of up to 10 vehicles, up from three, or six for island regions, at present.

Companies will be entitled to withdraw, with incentives attached, as many vehicles as the number of electric vehicle purchases for which they have submitted subsidy applications.

Also, companies will have the right to submit applications for recharging station purchase and installation subsidies representing unit quantities of up to 50 percent of the number of electric vehicle subsidy applications lodged, under the conditions that these recharging units are exclusively used to cover company needs and not commercial interests.

Furthermore, companies active in the tourism sector, as well as businesses offering home deliveries and courier services will be entitled to subsidies for the purchase of up to ten electric bicycles.

An amount offered as an incentive for the withdrawal of older taxis will be raised to 5,500 euros per vehicle.

Up until early August, a total of 14,990 applications were submitted to the ‘Moving Electrically’ subsidy program, of which 14,005 were processed and 78.5 percent of these, or 11,002, approved, according to energy ministry data.

New energy efficiency subsidies exclude PVs, vehicle rechargers

The latest edition of the “Saving at Home – Becoming Autonomous” program subsidizing energy efficiency upgrades, expected to be announced on Thursday by the energy and environment ministry, will focus on domestic energy efficiency upgrades and not offer subsidy support for domestic installations of photovoltaic systems and electric vehicle recharging units.

Applicants with income levels below the poverty line, deemed, by the ministry, as personal incomes of up to 5,000 euros per annum and family incomes of up to 12,000 euros per annum, will be given priority.

Also, low-income applicants will be entitled to greater subsidy amounts representing 65 percent of efficiency upgrade expenses.

The new subsidy program, planned to be launched in September, is expected to be worth 500 million euros. Successful applicants will each be entitled to subsidy support of up to 50,000 euros, unchanged from the program’s previous edition.

Applications will not be processed on a first-come, first-served basis but, instead, priority will be determined by a combination of the following factors: applicant income level and number of people living in each household; age of building; and regional climate conditions.

Applicants who present plans promising to maximize energy efficiency levels with lower investment amounts will also be given priority.

 

Municipal solar parks to help low-income household energy needs

Municipalities and prefectures will be offered 100 million euros in subsidies, through the recovery fund, for the development of solar energy farms whose resulting earnings will be used exclusively to cover the energy needs of approximately 30,000 low-income household around the country, energy minister Kostas Skrekas has announced in an interview with Greek daily Kathimerini.

These solar parks will offer a total capacity of 120 MW, the minister noted.

The minister also noted, in the interview, that a further 40 million euros from the recovery fund will be used to subsidize the replacement of 2,000 conventional taxis with electric-powered models.

Taxi owners will be entitled to 22,500 euros in subsidies for each vehicle replaced, the minister said, while adding that a variety of criteria, including car age, will be taken into account.

Support is also planned for energy communities, according to the minister.

“Energy communities are important when they serve their purpose and not merely promote capital-intensive investment. That is why we will support energy communities that will benefit those in need,” Skrekas explained.

Responding to a question regarding widespread resistance of local communities against wind energy installations and criticism faced by the ministry for being too cooperative with investor plans in this domain, the minister remarked: “We don’t license everything. Investor proposals currently exceed 100 GW, but we, through the National Energy and Climate Plan (NECP), estimate that, realistically, approximately 10 GW will be installed – in other words, one in ten.”

Revisions to a revised, and stricter, RES spatial plan will be completed by the end of the year, the minister told.

Subsidy plan for electric vehicle recharging units in the making

The energy ministry has begun preparing a support facility, as part of the country’s recovery plan, for the development of electric vehicle recharging infrastructure.

A total of 220 million euros in recovery fund subsidies will be made available for the development of electric vehicle recharging infrastructure and replacement of public transportation buses covering the Athens and Thessaloniki areas.

The ministry’s subsidy plan for recharging stations will apply throughout Greece, covering locations such as airports, highways, as well as petrol stations.

The ministry has already agreed to receive support from JASPERS, a technical assistance facility prepared by the European Commission to help with preparations for major infrastructure projects.

According to sources, the ministry intends to announce the subsidy program in the second half of the year.

Legislative priority for energy storage, offshore wind farms

Legislative action will soon be taken by the energy ministry for the RES sector and energy storage systems, as well as offshore wind farm development, the key pillars of the country’s energy transition plan, energy minister Kostas Skrekas has told an online event staged by research and policy institute diaNEOsis on “The Energy Sector in Greece and the Climate Crisis”.

“We are preparing an institutional framework for energy storage. RES units cannot operate without storage,” the minister told the event, referring, once again, to a plan for power purchase agreements (PPAs) between industrial enterprises and RES producers.

An institutional framework for offshore wind farms, the energy transition’s second main component, is also being prepared to cover spatial matters and utilization of sea areas as an energy source, Skrekas noted.

Energy efficiency project support programs worth between 4 and 4.5 billion euros are planned to be offered over the next few years for building upgrades, the minister also told the event.

Commenting on electromobility, Skrekas praised the success of recent incentives offered for electric vehicle purchases, noting that 10 percent of new vehicle registrations in 2021 concern electric and hybrid models.

Recovery plan eyes €270m for e-car part facilities, rechargers

National recovery plan features will aim to lay the foundations for an electric vehicle industry in Greece through 200 million euros in subsidies for the establishment of production facilities making batteries and parts for electric vehicles, sources have informed.

The national plan, to be fed by the European Commission’s Recovery and Resilience Plan, once approved in Brussels, is designed to create jobs where they are needed most, including in parts of west Macedonia, in Greece’s north, and Megalopoli, in the Peloponnese, whose lignite-dependent economies require restructuring as a result of the country’s decarbonization strategy.

The national recovery plan will also seek to offer a further 70 million euros in subsidies for the installation of approximately 8,500 recharging posts for electric vehicles, both regular and fast chargers, much higher in cost. Regular recharging units cost between 3,000 and 5,000 euros while fast chargers cost about 20,000 euros each.

Given the aforementioned subsidy plans, Greece’s electromobility effort could enjoy financial backing totaling more than 300 million euros, as, besides the 270 million euros being anticipated through the national recovery plan, an amount of between 30 and 40 million euros has already been secured through other financing programs.

The government plan aims for one in three vehicles circulating in Greece by 2030 to be electric.

 

RES spatial plan to be delivered within 2021, Action Plan notes

The completion of a RES sector spatial plan within the current year has been included in an energy ministry Action Plan for 2021, just published along with the respective action plans of all other ministries.

The energy ministry’s action plan lists interventions planned for 2021 in nine areas under its authority, including energy-sector privatizations, energy market reforms, support for decarbonization and recycling, adoption of circular economic principles, greenhouse gas emission reduction, the tackling of climate change effects, as well as green energy transition.

RES sector measures this year will help cut down the time needed by new RES projects for licensing procedures to two years, the ministry anticipates in its action plan.

It also expects the installation, by the end of the year, of at least 2,000 recharging units for electric vehicles in public areas, including along highways, and at private properties, including domestic and commercial.

On the privatization front, the energy ministry expects all seven energy privatization plans to have been completed or reached an advanced stage by the end of the year.

On energy market reforms, the adoption of a remuneration mechanism for grid sufficiency, to replace a transitional mechanism remunerating flexibility, is a standout feature.

The energy ministry also intends to adopt, as Greek law, an EU directive promoting energy storage and demand response systems.

The ministry’s action plan also anticipates the signing of agreements this year for distribution network development and RES penetration support. It also expects DEDDIE/HEDNO, the distribution network operator, to announce a tender for the installation of smart power meters within the current year.

Taking into account plans by DEDDIE/HEDNO and power grid operator IPTO, the ministry expects investments in distribution and transmission networks to reach one billion euros this year.

Investments for gas network upgrades and expansion are expected to reach at least 300 million euros, primarily driven by projects planned by gas distributor DEDA, covering all areas around the country except for the wider Athens, Thessaloniki and Thessaly areas.

On international projects, the action plan notes that a Greek-Bulgarian gas pipeline project, the IGB, promising to significantly diversify Greece’s gas sources, will be completed by the end of 2021.

A latest edition of the Saving at Home program subsidizing energy efficiency upgrades of properties, budgeted at one billion euros, will stimulate work on 80,000 buildings in 2021, according the energy ministry’s action plan.

This activity will contribute to a National Energy and Climate Plan objective for an improvement, by 2030, of energy efficiency at buildings by 38 percent, reducing energy consumption to levels below those registered in 2007, the action plan notes.

 

Suppliers target electromobility, smart home and city markets

Domestic energy suppliers, targeting the electromobility, smart home and smart city markets, are closely following rapid technological developments, internationally, company executives told an industry event, the 4th Ecomobility conference, held yesterday.

Elpedison, anticipating electromobility market growth, is offering related services for homes and businesses through its DriveGreen package, which includes electricity tariffs below night rates on a 24-hour basis and free-of-charge kilowatt hours every month for electric vehicle usage, the company’s chief executive, Nikos Zahariadis told the event.

A National Energy and Climate Plan projection on the auto market penetration of electric vehicles by 2030 is too ambitious as a result of high price tags on electric vehicles, lack of infrastructure and lofty taxes, Zahariadis noted. Revisions are needed if the NECP’s electromobility objective is to be achieved, he added.

Aristidis Grammatikopoulos, product development manager at energy supplier Fysiko Aerio, informed of the company’s participation in the development of recharging infrastructure. Fysiko Aerios has also prepared special packages and services for supply and installation of smart recharging units for domestic use, he added.

The Fysiko Aerio official also announced new smart-tech services, via mobile phone, offering customers optimal energy packages though an algorithm linked to individual energy consumption patterns.

Greek market data in 2020 show potential for the electromobility sector, despite difficulties, energy supplier NRG’s strategic manager Ilias Petris asserted.

The development of recharging infrastructure is the most pivotal factor for electromobility market growth, the NRG official stressed, adding that a current focus on the wider Athens area requires adjustment for a widespread approach.

The Motor Oil group, owner of NRG, has been a pioneer in electromobility through the installation of recharging networks along national highways as far back as two years ago, Petris noted.

 

EBRD reports close to €800 million investment in Greece in 2020

The European Bank for Reconstruction and Development (EBRD) stepped up its investments in Greece in 2020 to address immediate needs caused by the coronavirus pandemic and to create the foundations for a recovery with a focus on building back better economies.

Continuing its support for the Greek economy in 2020, the Bank made €797 million new investments in 17 projects, compared to €571 million in 13 projects in 2019, putting Greece in the EBRD’s top five countries of investment last year. 

Andreea Moraru, EBRD Director for Greece, said: “We are very proud to contribute to the robust response of the Greek economy to the crisis, supporting the recovery, helping local businesses with their needs and facilitating the transition to greener economic activities.” 

The Bank provided a senior unsecured loan of up to €160 million power utility PPC. The facility will support PPC’s working capital needs at a time of customer payment volatility following the outbreak of the crisis. It will also strengthen the resilience of the electricity sector as a whole by ensuring the stability of essential utility supplies and maintaining the momentum towards decarbonization. 

The EBRD also stepped up its efforts to help the Greek private sector by investing €57.5 euros in GEK TERNA’s successful issuance of a seven-year €500 million bond. GEK TERNA S.A. is the holding company for a group active in concessions, renewable energy, thermal energy and construction, incorporated in Greece. 

This issuance was the largest bond transaction to be listed to date on the Athens Stock Exchange and the first corporate issuance in the country since the outbreak of the pandemic. The proceeds will be used to refinance secured commercial loans with longer tenors and reduced financing costs, enabling a corporate transformation that will optimize the capital structure of GEK TERNA. 

Facilitating the transition from fossil fuels to renewable sources of energy, EBRD launched its just transition initiative linking the transition to a low-carbon economy with inclusive economic development. One of the first projects under this approach was the Bank’s €75 million investment in the successful Eurobond tap issuance by Hellenic Petroleum (ELPE), in support of a new solar photovoltaic plant in Greece, the largest solar energy project in south-eastern Europe to date. 

The total funds of €100 million raised will enable ELPE to finance the construction of 18 solar photovoltaic (PV) plants with a total installed capacity of 204 MW in Kozani, western Macedonia, the country’s most coal-dependent region. The solar park will be built close to existing coal-fired power plants that are being phased out and is expected to reduce CO2 emissions by 320,000 tons annually.

In addition, the EBRD invested €50 million in the first senior preferred (SP) green bond issuance by the National Bank of Greece (NBG), combining support for capital market development and for the green economy in Greece. It was the first green bond issuance by a Greek bank and the first SP instrument to be issued by a Greek financial institution. 

Together with other investors, the EBRD invested in a €186.4 million securitization transaction of automotive leases, originated by Olympic Commercial and Tourist Enterprises S.A. (Avis), the leading car leasing company in Greece and master franchisee of the global car rental company Avis Budget Group.  

The transaction was an important milestone for the Greek securitization market as it was the largest issuance by a non-bank originator and the first auto lease asset-backed security transaction in the country with a sustainable and green element. 

Part of the proceeds will be used by Avis for the replacement of its existing fleet with lower CO2 emissions, electric and hybrid vehicles, helping the company to reduce its diesel footprint.

In late 2020, the EBRD joined forces with the Ministry of Development and Investments of Greece to establish a new public-private partnership (PPP) preparation facility cooperation account, following a request from the Greek authorities. 

The EBRD will manage the facility, which will provide high-quality, client-oriented project preparation, training and advisory services, policy support and institutional strengthening activities related to the infrastructure sector in Greece. The Ministry will fund the activities of the facility with €20 million. The project pipeline will mostly be in the social infrastructure sector (education and health), sustainable urban infrastructure, and water and waste management.

Keeping vital trade flows going, the Bank provided a €20 million factoring facility to ABC Factors under its Trade Facilitation Program (TTP). Building on the EBRD’s cooperation with Alpha Bank, the parent company of ABC Factors, the facility will enable the factoring subsidiary to further expand its portfolio of small and medium-sized enterprises (SMEs) and local corporate clients by providing funding for domestic and international factoring transactions. Greece remains the EBRD’s most active country under TFP, with close to €320 million trade transactions in 2020.  

In 2020, the EBRD started 41 new advisory projects with Greek SMEs in various areas, such as strategic and business planning, marketing and e-commerce, operational efficiency, financial management and digitalization, and delivered five online export training seminars to more than 100 participants. Donor funding from Greece, as well as from the European Union through the European Investment Advisory Hub of the European Investment Bank, has been crucial. 

Papoutsanis, a leading Greek manufacturer of soap and liquid cosmetics, became the first Greek firm to join the EBRD’s Blue Ribbon program, which combines business advice and finance for companies that stand out for their market leadership and high-growth potential. 

Furthermore, the Board of Directors of the EBRD approved a new strategy for Greece, which will guide the bank’s investment and policy engagement in the country during the next five years. 

The EBRD responded to the coronavirus pandemic with record investment of €11 billion in 2020 through 410 projects. This represents a 10 per cent increase in annual business investment relative to 2019, when the bank provided €10.1 billion to finance 452 projects.

PPC, RWE agreement near, aiming for RES joint venture by summer

PPC Renewables, a power utility PPC subsidiary, and RWE, Germany’s biggest power producer, are striving to launch a joint venture by next summer for RES investments in Greece.

The two companies, which signed a Memorandum of Understanding last March in Berlin for exchange of technical knowhow and RES development in Greece, are looking to equally contribute for the establishment of a joint RES portfolio totaling 2 GW.

State-controlled PPC is expected to offer its approval of the agreement between the two companies within the next few days, development and investment minister Adonis Georgiadis told an online New Year event staged yesterday by the Hellenic-German Chamber of Commerce and Industry.

However, the details of the PPC Renewables-RWE joint venture deal are not expected to be finalized until early February, according to sources.

The two sides have already agreed on the fundamentals of their partnership agreement, RWE’s local representative Giorgos Paterakis confirmed at the aforementioned event, adding that the two companies will soon have further, and more specific, details to announce.

Georgiadis, the development and investment minister, described the forthcoming partnership as one of the country’s two biggest green-energy developments, also naming a pilot electromobility investment planned by another German company, VW, on the Greek island Astypalea.

The two companies are also looking to collaborate on decarbonization.

Enel X signs deal with Weltmeister for electric car export boost

Enel X, the Enel Group’s business line dedicated to advanced energy services and products, has signed an agreement with Weltmeister, the electric vehicle (EV) brand part of WM Motor Technology Co Ltd, a Shanghai-based automotive company specialized in the creation of battery electric vehicles (BEVs), the company announced in a statement.

Following the earlier launch of its first commercial office dedicated to e-Mobility in China, Enel X will support the development of Weltmeister’s charging infrastructure at global level, thus promoting the export of EVs as well as accelerating the development of overseas markets.

The two companies will work together in order to promote high quality and sustainable development of the EV market and the first project is scheduled to be launched in China in the first quarter of 2021.

Thanks to Enel X’s market expertise and extensive ecosystem of electric mobility solutions, Weltmeister will be able to meet the needs of international customers alongside continuously deepening its internationalization process based on the accumulated experience in promoting smart electric car products in overseas markets and on its profound insight into the needs of users as well as the application of big data.

The two sides will carry out multi-dimensional and in-depth strategic cooperation in areas such as smart electric car export and after-sales service, charging infrastructure matching and charging experience improvement as well as V2G technology application. They will work together to promote the high quality and sustainable development of the smart new energy car industry and build a new ecology of green, smart travel.

“This partnership is yet another confirmation for Enel X’s transition towards a fully sustainable business model, as the company is constantly seeking to collaborate globally with companies that promote long-lasting development and that are mutually creating shared value for all stakeholders,” said Francesco Venturini, CEO of Enel X. “The cooperation between the two companies in charging equipment, software and hardware, V2G and other aspects is a powerful alliance, which will accelerate the e-Mobility revolution.”

Under the agreement, Enel X and Weltmeister will carry out an in-depth electric mobility cooperation as Enel X will be providing smart charging solutions and one-stop after-sales services for Weltmeister Auto products exported to overseas markets, such as the European Union and Southeast Asia, as well as ensuring that relevant charging facilities meet the requirements of local charging standards, policies, and regulations. Furthermore, the two companies will explore the integration of V2G technology in Europe, allowing customers to lower the cost of ownership of an electric vehicle while offering a potential backup power source.

Enel X is a leading provider of electric mobility infrastructure and network solutions, with more than 170,000 public and private smart EV charging points available around the globe and is committed to participating in the energy transition through decarbonization of electricity generation and the electrification of energy consumption. Through this strategic partnership, the company continues to increase value creation and to contribute positively to more rapid achievement of the UN Sustainable Development Goals, placing SDG 13 for the fight against climate change at the center of its strategy.

 

 

Enel X is Enel’s global business line dedicated to the development of innovative products and digital solutions in sectors where energy is showing the greatest potential for transformation: cities, homes, industries, and electric mobility. The company is a global leader in the advanced energy solution sector, managing services such as demand response for over 6 GW of total capacity at global level and around 116 MW of storage capacity installed worldwide, as well as a leading player in the electric mobility sector, with more than 170,000 public and private EV charging points made available around the globe. Innovation and sustainability are at the heart of Enel X’s strategy since its inception, with circular economy being the perfect combination of these two elements, applied in many of Enel X’s products and services.

Vestas signs deal with Enel X for electrification of corporate fleet

Vestas Wind Systems A/S, a world leader in sustainable energy solutions, has signed a partnership with Enel X, the Enel Group’s advanced energy services business line, to accelerate the electrification of its company fleet, the companies have announced in a statement.

Through the agreement, Enel X will be providing Vestas with the required charging infrastructure to electrify its corporate fleet across its most prominent service markets.

“This new agreement marks another fruitful step in the collaboration between Vestas and the Enel Group,” said Francesco Venturini, CEO of Enel X. “Enel X’s key role as a technology leader in the electric mobility sector keeps on boosting the e-Mobility Revolution, and will support Vestas on the journey towards its ambitious sustainability goals, as well as further promoting electric mobility as one of the true enablers of the zero-emission future towards which the two companies have been working together for a long time.” 

“If we are to succeed with the energy transition across a global scale, industry leaders have a duty to implement the change we want to see,” said Anders Nielsen, Chief Technology Officer at Vestas. “One of our key goals at Vestas is to enable more sustainable energy systems by supporting the increased deployment of renewable energy beyond power and into the transport sector. By joining forces with Enel X, we can proudly demonstrate this process of deployment across our own global footprint, and help pave the way for a more sustainable future.”

Enel X will provide Vestas with a cloud-based charging platform solution, and 370 charging stations. The charging stations will be comprised of JuiceBoxes, enabling mobile e-vehicle charging, and JuicePoles, enabling the charging of two vehicles at the same time through an RFI card or App.

The charging network will support Vestas’ service and benefit car fleets across workplace locations in 15 of Vestas’ largest markets, spanning Europe and the Americas.

The collaboration marks a key step in Vestas’ journey towards retiring conventional vehicles by 2025, and forms part of Vestas’ commitment to becoming carbon neutral, without the use of offsets by 2030, as part of its broader sustainability ambitions.

Once the transition to electric vehicles is complete, Vestas anticipates more than one third of its scope 1 and 2 carbon emissions to be displaced. 

In addition, Vestas and Enel X have committed to leveraging their extensive resources as industry leaders in a joint effort to explore new innovations that will advance the energy transition. Both companies will begin an effort to identify opportunities to collaborate on developing innovations across e-mobility, grid integration and sector coupling.

 

 

 

Conditions set for new energy efficiency category subsidies

Four new categories included in the latest Saving at Home program subsidizing energy efficiency upgrades at existing properties (photovoltaic systems with net metering; energy storage systems; vehicle recharging units; energy management systems) will only be made available for program applicants if older energy-saving categories (window frame replacement; external wall insulation; heating-cooling systems; hot water supply) are incorporated into applications and, in addition, elevate the energy status of residencies by at least three categories, according to a guide just released by the energy ministry.

The new program will feature offer energy efficiency upgrade subsidies of up to 85 percent and will be made available to virtually all property owners as income-related criteria will be relaxed. For example, families with annual income totals of as much as 120,000 euros will be eligible.

Greater subsidy amounts will also be made available for applicants following an increase of a previous 25,000-euro upper limit to 50,000 euros.

VW to develop Astypalea €30m green-energy transformation

German auto industry Volkswagen has agreed to develop a 30 million-euro investment plan on the Greek island Astypalea, in the southeast Aegean, that will transform the location into a green-energy island capable of fully covering its energy needs.

Prime Minister Kyriakos Mitsotakis and the VW chief executive Herbert Diess are scheduled to stage a teleconference tomorrow, possibly with the participation of the Astypalea municipality’s leadership, during which they are expected to officially announce the investment plan.

Astypalea promises to become the country’s second self-sufficient green-energy island following Agios Efstratios, a small island close to Limnos in the northeast Aegean. A tender was recently completed for necessary RES and telethermal projects on Agios Efstratios.

Besides the installation of RES systems and energy storage facilities, the VW plan for Astypalea will also incorporate testing of autonomous, or self-driving, vehicles.

VW is investing heavily in self-driving vehicles, particularly buses and trucks, as part of its effort to compete against rival car manufacturers in the electromobility sector and also achieve ambitious green-energy company goals set to help counter climate change.

Greece’s deputy foreign minister Kostas Fragogiannis, who has maintained close contact with VW over the past year in an effort to convince the German car maker to pursue its investment plan on a Greek island, will coordinate all necessary interministerial actions.

VW officials had visited the island Thassos, in the north Aegean, early this year before opting to pursue their plan on Astypalea.

The German company plans to replace the island’s existing fleet of municipal vehicles, including public transport buses and trucks, with equivalent electric models and also install recharging facilities.

Enel X Financial Services launches Enel X Pay

Enel X Financial Services, an Enel Group company that is fully owned by Enel X, has entered the digital financial services and mobile banking sector with Enel X Pay, an online banking account which, through a partnership with Mastercard, enables users to make fully secure payments and transfers in real time directly via smartphone app, to have a digital or physical card and monitor the transactions and spending of the whole family.

Enel X Pay was presented yesterday through a web press conference attended by Francesco Venturini, CEO of Enel X, Giulio Carone, CEO of Enel X Financial Services and Matteo Concas, Head of Financial Solutions of Enel X.

“Through Enel X Pay, we are expanding our platform of offers and products to financial services; a digital tool to easily manage financial transactions by relying on an innovative and trusted partner like Enel X,” said Francesco Venturini, Enel X CEO. “The disintermediation from traditional financial services give us the option of entering a highly competitive sector, bringing our ability to innovate and develop new solutions, from advisory and financial management services to insurance services.”

“With the launch of Enel X Pay we are bolstering our position in the fintech sector, contributing to the dissemination of digital payments and the development of financial services integrated with Enel’s ecosystem,” said Giulio Carone, CEO of Enel X Financial Services. “The business model we are looking at is that of a Big Tech firm, which makes available to customers its ability to innovate, counting on strategic partnerships with leading technology players, in order to offer high value-added solutions.”

Enel X Pay is a native digital account, involving a card and an Italian IBAN, which allows users to perform multiple types of transactions: from payment of bills, taxes and duties of the Public Administrations signed up to Italy’s pagoPA circuit, to SEPA transfers, from the peer-to-peer transfer of money with no additional costs, to donations aimed at solidarity initiatives to third sector associations like Save the Children, Food for Soul and Doctors without Borders.

With Enel X Pay, users can pay for the charging of electric cars in the infrastructures within the Hubject circuit. Hubject is the e-mobility joint venture involving the BMW Group, Bosch, EnBW, Enel X, Innogy, Mercedes Benz AG, Siemens and the Volkswagen Group, which boasts over 750 business partners and 250,000 interoperable charging points all over the world.

Users can manage the Enel X Pay banking account directly from the app bundled with a digital and physical card. The card is made out of plant-based bio-plastic and is linked to Mastercard, the key international payment circuit with over 52 million points of acceptance around the world.

In addition, courtesy of the Enel X Pay “family” option, a dedicated account can be activated for children between the ages of 11 and 18, providing them with a prepaid card while allowing them to make peer-to-peer transfers, withdrawals from ATMs as well as payments on e-commerce sites. Parents can rely on a useful tool which, on the one hand, offers children the freedom to manage their own funds and, on the other, allows the monitoring of their balance and transactions, while setting spending limits and fixing the amount of the prepaid card’s automatic top-ups.

The launch of Enel X Pay is a milestone in a process that the Enel Group has been engaged in for the last two years, accomplishing a series of strategic transactions. These include: the purchase of a majority stake in Paytipper, an institution with which the initial offering of online and offline payment services was created as well as the recent agreements with partners SIA and Tink which, through their highly secure and reliable technology platforms, will enable all Enel X Pay services, allowing for the development of additional open banking solutions tailored to customer needs.

Enel X Pay is available on the Google Play Store (Android) and, in the coming days, on the Apple App Store.

 

Energy ministry seeks recovery fund support for many domains

The energy ministry, seeking to ensure EU recovery-fund support for mature projects in key energy-related domains, has proposed their inclusion in a national plan whose first draft will be submitted by the government to the European Commission this month.

Greece is entitled to approximately 32 billion euros from the EU recovery fund, worth a total of 750 billion euros (390bn in subsidies and 360bn in loans) and established to counter the impact of the global pandemic.

Approximately 37 percent of the recovery funds will be used for green-energy development.

Energy efficiency upgrades of buildings; grid interconnections and RES initiatives, including energy storage; electromobility; nature protection; decarbonization; spatial planning for RES development; solid and liquid waste management; and smart power meter installations, a severely delayed project in Greece, are among the domains the energy ministry wants included in the national plan for EU recovery funds.

The energy ministry has previously sought support for some of these domains through the National Strategic Reference Framework.

A total of 130,000 efficiency upgrades of buildings have so far received subsidy support over a decade-long period through Greece’s Saving at Home program. The ministry is looking to significantly increase this rate to 60,000 upgrades per year through the recovery funds program.

Greece’s energy ministry will also seek recovery fund support for two major electricity interconnections – Crete’s major-scale interconnection,  to link the island’s grid with Athens; and the fourth phase of the Cyclades interconnection – both being developed by power grid operator IPTO.

 

First look at new ‘Saving at Home’ program imminent, launch long way off

A first impression of the latest Saving at Home subsidy program, supporting energy efficiency upgrades of existing properties, is expected within the next few days, possibly by the end of this week.

The energy ministry is preparing to announce details on categories eligible for the subsidy program, sources said.

Even so, the finalized plan is still be a long way off, the sources added, as numerous details need to be resolved before the subsidy platform can be launched.

Roof-mounted PVs, energy storage systems, smart home systems and electric vehicle recharging facilities will be added to the new program.

It will offer energy efficiency upgrade subsidies of up to 85 percent and be made available to virtually all property owners as income-related criteria will be relaxed. For example, families with annual income totals of as much as 120,000 euros will be eligible.

Greater subsidy amounts will also be made available for applicants following an increase of a previous 25,000-euro upper limit to 50,000 euros.

In addition, home owners with more than one property will be able to submit multiple subsidy applications. In such cases, a subsidy limit of 100,000 euros is expected to be imposed.

The new subsidy package will also include bonus amounts of 10 percent as COVID-19 premiums.

 

Gov’t plans 11 decarbonization investments worth €2.5bn

The government plans to facilitate the post-lignite transition of Greece’s west Macedonia and Megalopoli areas by promoting 11 big investments totaling 2.5 billion euros and also making available, through a six-year plan, national and EU support funds in excess of three billion euros.

This plan, already presented to west Macedonia working groups earlier this week, will be discussed today by a government committee before being presented to media by energy minister Costis Hatzidakis.

Besides the 11 major-scale investments, the plan, intended to reshape the production models of both regions, will also feature tax and financing incentives.

For decades, both the west Macedonia and Megolopoli areas have depended on lignite for economic growth.

The new plan will be based on five key pillars – clean energy; industry, small-scale industry, commerce; smart agricultural production; sustainable tourism; technology and education – for growth and utilization of comparative advantages.

Investment plans include the development of solar farms in west Macedonia and Megalopoli with a total capacity of 2.3 GW; a state-of-the-art gas-fueled power station in west Macedonia; as well as the establishment of electromobility industrial parks in both areas.

The government’s decarbonization plan for the two areas is expected to create 5,100 jobs, directly, and a further 6,400, indirectly.

The government expects to deploy national and EU support funds worth 3.2 billion euros for the overall effort over six years, with the majority of this total, 2 billion euros, to be made available over the first three years (2021-2023).

The plan is expected to be forwarded for public consultation in mid-September.