Elpedison

Electricity supplier switching by consumers up 89% in 2019

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Consumers switching electricity suppliers increased sharply by 89 percent in 2019, a report by RAE, the Regulatory Authority for Energy, has shown.

A total of 576,436 consumers, 8.5 percent of the 6,783,075 consumers in total, switched suppliers in 2019, up from 4.51 percent in 2018, the report showed.

This sharp rise in consumer switches was attributed to growing consumer confidence in independent electricity suppliers as well as the effectiveness of discounts and various other offers made available by these suppliers to attract customers. Put simply, competition in the Greek electricity market appears to be intensifying.

Household electricity consumers showed the greatest degree of mobility, followed by mid and high-voltage consumers, or businesses and industrial consumers, the RAE report observed.

In the mid-voltage category, 834 business and industrial consumers of 9,071 in total, or 9.19 percent, switched electricity suppliers in 2019, according to the report.

Despite the increased customer mobility, power utility PPC remained dominant in 2019, supplying electricity to 5,694,627 consumers, or 83.95 percent of the 6,783,075 in total, the report showed. In terms of consumption, PPC held a 71.13 percent share, supplying 27.7 million MWh last year.

Independent supplier Protergia, a member of the Mytilineos group, was ranked second in terms of total number of customers in 2019, supplying to 181,232 customers, the report noted.

Elpedison was ranked third with 171,143 customers, followed by Heron (140,812), Watt & Volt (127,364), Zenith (73,968), Volton (69,688), NRG (52,961), Fysiko Aerio (39,881), Volterra (35,748) and KEN (33,997).

A total of 24 independent suppliers are active in Greece’s electricity market.

GEK TERNA set to develop new 660-MW thermal unit

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GEK TERNA is expected to finance its development of a gas-fueled power station with a 660-MW capacity in Komotini, northeastern Greece, through bond funds totaling 500 million euros, sources have informed.

In a company statement, GEK TERNA noted it intends to use 400 million of 500 million euros in bond funds to finance the group’s investment program, which includes gas-fueled power generation.

GEK TERNA is close to reaching an investment decision on this facility, the sources added. It would represent the third thermal unit involving the group.

GEK TERNA, which has the potential to play a key role in renewable energy through Terna Energy, is not overlooking thermal-unit developments.

Greece’s decarbonization strategy and the dominance of natural gas as the main fuel during the energy transition are two factors creating major opportunities for the GEK TERNA group.

Other vertically integrated electricity producers are also preparing new thermal facilities. The Mytilineos group is already constructing an 826-MW gas-fueled power station in the Boetia area, slightly northwest of Athens. This unit is expected to be launched next year.

A licensing procedure by Elpedison, also for an 826-MW facility, in Thessaloniki, is maturing.

In addition, the Copelouzos group is making progress on licensing for a 660-MW facility in Alexadroupoli, northeastern Greece. Company official Kostas Sifneos recently said this facility’s launch is scheduled for 2022.

The country’s big energy players are also continuing to eye Balkan markets for electricity exports, pundits informed.

Universal supply service overcharge set at 12%

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Electricity consumers resorting to the universal supply service, covering the energy needs of households and small businesses shunned by suppliers for failing to be punctual with payments, will face tariff levels 12 percent over the regular market rate, according to a related ministerial decision.

The country’s five biggest electricity suppliers, in terms of retail market share, will need to share the pool of old and new unwanted customers and provide the universal supply service.

Previously, the market leader – consistently PPC – was forced to offer the service alone after suppliers chose not to submit bids to related universal service tenders.

Under the service’s new rules, the highest tariff rate among the top five suppliers will serve as the base for the 12 percent overcharge.

PPC, still dominating Greece’s retail electricity market with a 90 percent share of power meters, Protergia (Mytilineos), Heron, Elpedison – all three control 3 percent each – and NRG (1%) are the top five suppliers who, by law, must offer the universal supply service.

 

 

PPC, majors face 20% sale limit on output for bilateral contracts

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Vertically integrated electricity producers will be permitted to sell up to 20 percent of production through mutual agreements once the target model is launched, RAE, the Regulatory Authority for Energy, has decided, ultimately doubling a 10 percent limited proposed by the Greek stock exchange, energypress sources have informed.

RAE reached its decision to set the limit at 20 percent after considering arguments presented by producers and sector authorities during consultation.

The limit takes into effect power utility PPC, dominating the retail market, as well as all integrated producers with retail market shares of more than 4 percent – namely, as things stand, Protergia, Heron and Elpedison, all with over 4 percent for quite some time now.

This decision by RAE is one of the last pending issues concerning energy exchange markets, recently rescheduled to begin operating on September 17, if all goes according to plan from here on.

ESAI/HAIPP, the Hellenic Association of Independent Power Producers, had proposed a limit of between 5 and 10 percent for PPC’s mutual agreements and forward contracts, and proportional limits for vertically integrated electricity producers with market shares of more than 4 percent.

PPC, which, from the outset, pushed for a 20 percent limit, based its argument on a study by global energy consulting company ECCO International, according to which the sale limit on output should range between 10 and 20 percent.

 

Electromobility creating various opportunities, players preparing

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Besides the auto industry and recharging network investments, the country’s push towards electromobility, strongly supported by a draft bill delivered by the government yesterday for consultation, is also creating various other new business opportunities.

Enterprises active in battery and recharging technology, spare parts for electric cars and e-bikes, for example, can expect production opportunities.

Business opportunities are emerging for electricity companies, fuel companies, network owners and operators, recharging technology manufacturers and technology firms.

The government’s draft bill includes provisions enabling fuel stations, shopping centers, super markets, parking lots, as well as municipalities and prefectures to install recharging stations. An extensive, widely accessible recharging network will be pivotal to the country’s overall electromobility effort.

The draft bill also includes a provision for the establishment of electric vehicle charging operators, expected to primarily develop their own recharging stations, at locations either owned by them or prospective partners.

The operators will also be able to collaborate with shopping centers, super markets, municipalities and any other entities wanting to install recharging stations but lacking the size or interest to get too involved with more complex procedures.

Hellenic Petroleum (ELPE) has already announced the establishment of a subsidiary to focus on the energy group’s electromobility interests. Also, Motor Oil has taken its first steps, mainly through NRG, the group’s supply firm.

Both these major energy groups have already installed some recharging stations along highways and at other points. All major fuel companies plan to follow suit.

The country’s major independent electricity suppliers, Heron, Elpedison and Protergia, plus smaller players, have all incorporated electromobility into their strategic plans.

Power utility PPC, aspiring to dominate this sector, has already announced three MoUs, with the AB Vasilopoulos supermarket chain, Beat taxi service, and airport operator Fraport Greece. PPC aims to have installed 1,000 recharging stations around Greece over the next two to three years.

Some electricity suppliers have formed partnerships with car industries. Elpedison has teamed up with Mercedes Benz Hellas, Motor Oil’s NRG with BMW, and Protergia with Kosmocar-Volkswagen.

 

PPC mid-voltage market share tumbles to 30%, competition intense

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Power utility PPC’s market share in the mid-voltage category, where competition has intensified, slid to 30.2 percent in May, well below its 53.72 percent share in January, making way for independent suppliers who have made significant gains since the beginning of the year.

Protergia, a member of the Mytilineos group, ranked second in the mid-voltage market, was the biggest gainer during the five-month period, increasing its mid-voltage market share to 20.02 percent in May, nearly double January’s 12.19 percent.

Heron follows with 13.74 percent, up from 9.24 percent in January. Elpedison is ranked fourth with 9.34 percent, from 6.72 percent in January. NRG is next, closely behind, with a 7.74 percent mid-voltage market share, from 5.16 percent at the beginning of the year.

No major market-share changes have been reported in the high and low-voltage categories.

Overall – high, mid and low-voltage categories – PPC captured 66.27 percent of the market in May, slightly below the previous month’s 67.25 percent.

Protergia is ranked second, overall, with a 7.31 percent share, up from 6.84 percent in April. Heron is in third place with 6.27 percent, gaining from the previous month’s 5.81 percent. Elpedison follows with 4.97 percent, down from 5.06 percent in April.

Top five taking on universal supply service, tender futile

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A tender staged by RAE, the Regulatory Authority for Energy, offering electricity suppliers a two-year contract for universal supply service covering the needs of consumers who have been shunned for not being punctual with payments, has failed to produce a result.

Though the outcome of this procedure remains consistent with results of equivalent tenders in previous years, an imminent change of rules will require the electricity market’s top five suppliers, based on market share, to assume the universal supply service.  Higher tariffs are charged.

Until now, power utility PPC, as market leader, was forced to take on the job alone.

A ministerial decision on the rule change is expected to be delivered by deputy energy minister Gerassimos Thomas within the next few days.

The universal electricity supply service’s two-year contract starts on June 23.

Based on market data for April, the Greek retail electricity market’s top five suppliers are: PPC, Protergia, Heron, Elpedison and Watt+Volt. NRG trails slightly behind in sixth place.

Unlike other European markets, where the universal electricity supply service is a desirable venture, and, as a result, warrants competitive procedures, the equivalent service in Greece is typically neglected by suppliers as it has been abused by non-punctual electricity consumers exploiting the service as a safe haven.

Electricity demand down 12.6% in April, industrial use slumps 23.6%

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Electricity demand slumped 12.6 percent in April compared to the same month a year earlier, the biggest drop registered by high-voltage industrial consumers, forced to suspend or restrict output during the lockdown, power grid operator IPTO’s monthly report has shown.

Industrial electricity consumption in April fell sharply by 23.6 percent, the IPTO report showed.

The drop in electricity consumption linked to mining activity was even sharper, falling 55.5 percent in April. Besides the lockdown, this drop was also attributed to significant operational restrictions implemented at power utility PPC’s lignite-fired power plants.

Electricity generation in April fell by 3.2 percent, to 2,893 GWh compared to 2,990 during the same month a year earlier, according to the data.

This reduction was mild compared to major shifts observed in sources of generation. Lignite-based generation fell by 62.7 percent year-on-year, confirming, most emphatically, the commencement of PPC’s decarbonization effort.

High costs for lignite-based generation severely reduced the operational time of PPC’s lignite-fired power plants, limiting lignite’s share of the electricity production mix to just 10 percent in April.

On the contrary, the production share of interconnected RES facilities, benefiting from favorable conditions, rose sharply by 33.9 percent, year-on-year, to capture a market-leading 36 percent share of overall electricity generation in April.

Natural gas-fired power plants followed with a 30 percent share following an 11 percent year-on-year rise in output.

Electricity imports (grid interconnections) contributed 18 percent, while hydropower facilities increased their output by 19.8 percent to capture a 6 percent share in April.

PPC provided 951 GWh, or 56.6 percent of the production, while independent producers covered 43.4 percent.

Among the independent producers, Mytilineos led the way with 228.1 GWh, followed by Elpedison (210.4 GWh), Korinthos Power (154.1 GWh) and Heron II (136.3 GWh).

The IPTO data on generation highlights an increasing shift towards cleaner energy sources.

 

 

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

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

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

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

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

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

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

Energy groups pressing ahead with natural gas-fired unit plans

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The country’s major energy groups are pushing ahead with investment plans for new gas-fired power stations despite the pandemic’s unprecedented impact on the economy and electricity market.

Mytilineos, a vertically integrated group at the forefront of electricity production and supply, began constructing an 826-MW energy center at Agios Nikolaos in the Viotia area, slightly northwest of Athens, last October and is continuing to press ahead with this project.

Investment plans by other players are also maturing. GEK-TERNA is moving ahead with licensing procedures for a 660-MW unit in Komotini, northeastern Greece. The Copelouzos group is paving the way for a 660-MW facility in Alexandroupoli, also in the northeast, while Elpedison is carrying on with procedures for an 826-MW power station in Thessaloniki.

Copelouzos could partner with an investor for the group’s Alexandroupoli project, sources informed.

All the aforementioned corporate groups are positioning themselves in a new energy landscape being shaped by the dominant role of natural gas in the transition towards renewable energy and cleaner energy sources.

This trend became very apparent during the lockdown in Greece. Natural gas and the RES sector covered 60 percent of domestic electricity demand in March.

Power utility PPC is pushing ahead with its decarbonization program without any backtracking, despite the crisis. This is creating a need for new and modern gas-fired power stations.

Furthermore, Greek energy groups are continuing to eye Balkan markets for prospective electricity exports. Electricity generation in the neighboring region has not been satisfactorily upgraded in recent decades, market officials pointed out.

Vertically integrated groups are also eagerly anticipating a new permanent CAT mechanism.

Natural gas bill payments down 30% in last two months

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Natural gas bill payments have plunged by 30 percent over the past two-month period following a milder single-digit decline a month earlier, latest market data has shown.

Consumers have resorted to installment-based payback plans in far greater numbers during this two-month period of deterioration.

Suppliers, fearing a rise in unpaid receivables, are not hesitating to cut gas supply to customers who were already battling against energy debt prior to the pandemic and are now in deeper trouble. However, this supply-cut threat concerns a small percentage of customers.

Gas suppliers have yet to turn to the government for support measures, as was the case in the electricity sector. However, they may end up needing help in the form of low-interest loans, support mechanisms and other financial tools if the country’s tourism industry suffers a major setback this coming summer, as is feared.

Zenith and EPA Attiki (Fysiko Aerio) hold an 85.39 percent overall share of the country’s retail gas markets equipped with distribution networks – wider Athens area, Thessaloniki and Thessaly – data processed by energypress showed. Zenith leads with 46.14 percent and EPA Attiki follows with 39.25 percent.

EPA Thess, a former monopoly covering Thessaloniki and Thessaly, has lost approximately 15 percent of its market share to newly emerged rivals, the data showed. KEN, the biggest gainer, has captured 5.25 percent and is followed by Protergia (3.1%), Elpedison (1.91%), NRG (1.35%), Heron (1.05%), Watt+Volt (0.75%) and EFA (0.76%).

Revythoussa at full capacity in May, 10 LNG orders scheduled

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A total of nine LNG shipments are scheduled to be delivered to the Revythoussa islet terminal just off Athens in May, taking the facility to full capacity for yet another month, data provided by gas grid operator DESFA has shown.

Three LNG tankers are scheduled to bring in three big orders for a total of ten recipients in May.

The inflow has already begun. Last week, the Maran Gas Ulysses, a tanker belonging to the Aggelikousis group, imported 149,254 cubic meters for four buyers, Motor Oil, Heron, gas utility DEPA and Mytilineos, whose share, 74,627 cubic meters, was the biggest.

The next shipment, scheduled to be delivered to the Revythoussa terminal on May 20 by the Gaslog tanker belonging to the Livanos group, will deliver 147,710 cubic meters of LNG for Elpedison and power utility PPC, taking the bigger share of the two buyers, 127,031 cubic meters.

A third and final LNG shipment for the month is scheduled to arrive May 31 on the British Saphire tanker, owned by BP. This vessel will bring in 121,123 cubic meters of LNG for DEPA and Elpedison, the bigger of the two buyers with a 64,993 cubic-meter order.

A total of five big LNG shipments are expected in June for orders placed by Mytilineos, Elpedison and DEPA.

Continual flow of LNG imports reshaping gas market

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LNG is continuing to enter the Greek market through gas grid operator DESFA’s Revythoussa terminal just off Athens at a continual and elevated flow that is reshaping the overall gas market.

The Mytilineos group was the market leader in the first quarter, capturing a market share of more than 40 percent of gas imported into Greece either via the Revythoussa LNG terminal or pipeline infrastructure.

Gas utility DEPA, a more subdued LNG player in the first quarter as a result of take-or-pay costs linked to the company’s pipeline gas orders with Russia’s Gazprom and Turkey’s Botas, registered a first-quarter market share of approximately 30 percent.

Elpedison, propelled by the increased use of its gas-fueled power stations, captured a higher share of 15 percent.

The Greek gas market’s remaining 15 percent was shared by Prometheus Gas, power utility PPC and Heron.

PPC’s gas market share is expected to increase over the coming months as it has placed LNG orders via the Revythoussa terminal.

 

DEPA Trade sale’s PPC-Motor Oil union, Shell return surprise

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The privatization of DEPA Trade – a new entity established by gas utility DEPA – offering the Greek State’s 65 percent stake in a procedure whose deadline for first-round offers expired yesterday, produced two surprises. Firstly, Shell reemerged in the country’s gas market following a withdrawal less than two years ago. Secondly, in an unanticipated move, power utility PPC teamed up with Motor Oil for a joint bid.

Shell departed from the Greek natural gas market in July, 2018 by selling its 49 percent stakes in gas supplier EPA Attiki and gas distributor EDA Attiki, both covering the wider Athens region, to DEPA.

Shell received a total of 150 million euros, 39 million for its 49 percent stake in EPA Attiki and 111 million euros for its 49 percent stake in EDA Attiki.

The company’s reemergence can be primarily attributed to an interest in DEPA’s long-term contracts with Gazprom, Sonatrach and Botas, with an eye on the wider Balkan and southeast European regions, sources said.

PPC and Motor Oil decided to join forces for the DEPA Trade sale as a result of the failure of both to secure slots for 2020 at gas grid operator DESFA’s LNG terminal on the islet Revythoussa, just off Athens. PPC holds a 30 percent stake in its partnership with Motor Oil, sources informed.

Following its Revythoussa failure, PPC has been more aggressive in a market test for the Alexandroupoli FSRU, expiring today. PPC wants to secure a capacity at this prospective unit in the country’s northeast as the company is determined to have LNG access. A successful bid in the DEPA Trade sale would bolster this position.

Hellenic Petroleum (ELPE) and Edison did not submit a joint bid for DEPA Trade through Elpedison, their joint venture for Greece’s retail energy market, as had been speculated. Instead, they are believed to have made separate bids. The two had not shaped a common action plan in the event of a successful DEPA Trade bid, sources said. However, the establishment of a new joint venture by the two firms at a latter stage, specifically for DEPA Trade, cannot be ruled out.

The country’s planned privatizations, including DEPA Trade, face likely delays as a result of the coronavirus pandemic’s repercussions. The progress of these sales will depend on the course of the pandemic.

DEPA Trade’s first-round bidders forwarded their offers on-line and must follow up with deliveries of official documents by April 24. The evaluation of first-round offers is not expected to begin any sooner than April 25.

DEPA Trade offers due today, at least 7 players interested

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Five Greek and two international investment groups are expected to submit bids for the DEPA Trade privatization, whose first-round deadline expires today at 5pm.

DEPA Trade was established as a new gas utility DEPA entity for the privatization, offering the Greek State’s 65 percent stake.

Bidders may also submit their expressions of interest online, via email, as a result of restrictive measures prompted by the coronavirus crisis, but will need to follow-up with official documents by April 24. The evaluation of first-round offers is not expected to begin any sooner than April 25.

The local bidders expected to submits bids, all leading energy players, are Mytilineos, GEK Terna, Motor Oil, Hellenic Petroleum (ELPE) and the Copelouzos group.

ELPE plans to submit a joint bid in partnership with Edison, possibly through Elpedison, their joint venture for Greece’s retail energy market, sources informed.

The Copelouzos group is also working on delivering a joint offer, with Czech firm KKCG.

Shell is among the foreign companies looking interested, despite its sale, two years ago, of stakes in DEPA gas supply and distribution companies.

Dutch firm Vitol is the other foreign player believed to have been drawn to the DEPA Trade sale. Vitol had reached the final stage of an ELPE sale with Algeria’s Sonatrach as a bidding partner, but the pair ended up not submitting a binding offer.

Expressions of interest in DEPA Trade may also come from Swiss-based Hungarian firm Met Energy Holding, active in natural gas wholesale trade. This firm is already present in Hungary, Croatia, Italy, Serbia, Slovakia, Spain, Turkey and Ukraine. Qatar’s Power Global is another possibility.

DEPA Trade’s portfolio includes 409,000 customers – households and businesses.

 

Rising LNG imports reshaping gas market, led by Mytilineos

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The drastic reduction of LNG price levels in recent times has not only boosted the amount of LNG imports into Greece but also reshaped market shares held by domestic gas traders.

Last year, natural gas consumption rose to a new record level of more than 60 TWh, up from 52.4 TWh in 2018 and 53.7 TWh in 2017.

LNG imports rose sharply to 30.92 TWh in 2019 from 11.59 TWh in 2018 and 15.54 TWh in 2017.

Overall gas consumption increased by approximately 15 percent last year while LNG import levels nearly tripled compared to two years earlier.

For the first time ever, LNG represented half of the country’s total gas consumption in 2019.

In 2019, a total of six traders imported LNG to the Revythoussa terminal, close to Athens, some of these for the first time.

Mytilineos made the most LNG shipments for a 50.2 percent share. Gas utility DEPA followed with a 26.1 percent. Elpedison was next with a 12.4 percent market share, trailed by power utility PPC (7.6%), Heron (2.4%) and Motor Oil (0.4%).

Market leader Mytilineos imported a total of ten LNG shipments to the Revythoussa terminal in 2019, some of these originating from the US, via Shell and BP, managing US shale gas exports.

A total of six LNG shipments to Greece in 2019 carried American shale gas. This trend is continuing this year. A 140,000 cubic-meter shipment of American LNG arrived at the Revythoussa terminal on January 25.

Mytilineos also chartered large-scale Q Flex tankers to Revythoussa in 2019, a development enabled by the completion of upgrade work at the LNG facility.

The Q Flex tankers, built in Qatar and offering a 201,000 cubic-meter capacity, were previously unable to approach the Greek terminal.

 

Improved Gazprom deal raises DEPA in the eyes of investors

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Lower-price deals sealed or about to be sealed between gas utility DEPA and its international suppliers are among the factors the government is relying on for a successful privatization procedure of the gas utility, a procedure launched yesterday, beginning with DEPA Trade, one of DEPA’s two new entities formed for the sale.

DEPA is believed to have renegotiated a far more favorable supply deal with Russia’s Gazprom, the Greek utility’s biggest supplier.

Forty percent of DEPA’s natural gas orders from Gazprom will no longer be pegged to fluctuating international oil prices. Instead, this percentage of DEPA’s Gazprom orders will be linked to price levels of Dutch gas trading platform TTF, one of Europe’s biggest hubs. Just days ago, prices at TTF were about half those of pipeline gas. The other 60 percent of DEPA’s orders with Gazprom will remain oil indexed.

This development promises to make DEPA’s supply deals with Gazprom far more competitive. Prospective bidders already appear to be warming to the prospect.

Major Greek corporate groups such as Mytilineos, Hellenic Petroleum (ELPE) – already holding a 35 percent stake in DEPA and considering teaming up with its Elpedison partner Edison for the DEPA sale – GEK Terna and Motor Oil are believed to be gearing up for bids. The Copelouzos group’s involvement in the DEPA Trade sale is considered certain – in a partnership with Czech entrepreneur Karel Komarek, holding a key stake in Greek lottery OPAP.

RAE to change LNG terminal rules following congestion

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RAE, the Regulatory Authority for Energy, has decided to shape a new regulatory framework for gas grid operator DESFA’s LNG terminal on the islet Revythoussa, just off Athens, attributing recent congestion problems at the unit that have left companies without slots for 2020 to an outdated legal framework from 2011 no longer serving new market needs, energypress sources have informed.

The authority is expecting proposals from DESFA before it starts shaping a new regulatory framework for the LNG terminal. The new framework, whose details remain unknown, will not apply in 2020 but is planned for 2021.

Lawmakers behind the set of rules shaped nearly a decade ago viewed LNG as a supplementary fuel, but it has taken on a far more significant role in the Greek energy market over the past few years, the sources noted.

Stronger LNG demand expressed by major-scale consumers and energy groups has been driven by increased global LNG output and significantly lower prices compared to pipeline gas.

Companies left without slots on DESFA’s finalized unloading plan for 2020, just announced, will eventually secure places during the year as other qualifiers have overstated their slot requirements and will make resulting vacant capacities available, the sources said.

According to the finalized unloading plan, the Mytilineos group will import a total of 22 LNG shipments in 2020, beginning January 1, Elpedison has planned an equivalent number of shipments, gas utility DEPA has scheduled 14, including Algerian contracts, while Heron has scheduled five shipments.

Power utility PPC and Motor Oil Hellas, both importing LNG shipments through the Revythoussa terminal in 2019, have been left out.

 

No changes to LNG unloading plan for 2020, PPC, Motor Oil both miss out

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Gas grid operator DESFA has announced a finalized unloading plan for 2020 at the Revythoussa LNG terminal without any changes to a temporary plan as participating players did not make any revisions to their initial requests for slots.

According to the finalized unloading plan, the Mytilineos group will import a total of 22 LNG shipments in 2020, beginning January 1, Elpedison has planned an equivalent number of shipments, gas utility DEPA has scheduled 14, including Algerian contracts, while Heron has scheduled five shipments.

Power utility PPC and Motor Oil Hellas, both importing LNG shipments through the Revythoussa terminal in 2019, have been left out of the facility’s unloading plan for 2020 as they failed to secure slots. Both companies have reacted firmly.

Players requesting bigger capacities are given priority, according to a DESFA formula, which remained largely unchanged, except for one revision, introducing tougher penalties for importers should they cancel capacity reservations.

Elpedison makes dynamic gas market move for 2020, Balkans also eyed

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Elpedison’s strong turnout for gas grid operator DESFA’s annual reservation of LNG slots at the Revythoussa terminal just off Athens highlights the company’s strategic decision aiming for a leading role in the wholesale gas market, which it entered last year.

Elpedison has reserved 22 slots, roughly one-third of a total of 65 slots offered by DESFA for the terminal in 2020.

Mytilineos, the country’s biggest LNG importer, also booked 22 slots. Gas utility DEPA reserved 14 slots, while Heron booked seven slots.

Elpedison considers its involvement in the wholesale and retail gas markets just as important as its activities in the electricity market, chief executive Nikos Zahariadis underlined in comments to energypress. Elpedison will bolster its gas market presence in 2020, he added.

Storage and gasification capacity increases at the Revythoussa LNG terminal have played an instrumental role in helping liberalize Greece’s gas market. This development, along with lower-priced LNG, compared to pipeline gas, has created market prospects and opportunities. Elpedison operates two gas-fueled power plants.

Besides the Greek market, Elpedison, just like all other corporate groups importing and trading gas, also sees opportunities in Balkan markets. The company already sells modest gas quantities in Bulgaria and Romania but is aiming for a significant increase in 2020.

Greece is developing into a gas hub for supply to the wider southeast European region, Zahariadis, Elpedison’s chief executive, noted. Major international gas infrastructure projects such as the TAP, IGB, Alexandroupoli FSRU and underground gas storage facility in the offshore South Kavala region are expected to be completed within the next few years, he stressed.

 

Ministry closing in on Kavala underground gas storage model

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The energy ministry is close to deciding on a business model for a prospective underground gas storage facility in the offshore South Kavala region, the objective being to ensure the investment’s sustainability without overburdening consumers.

Numerous alternatives have been examined so far but a model applied in France and Italy appears to be the most favored, energypress sources informed.

The content of an upcoming joint ministerial decision is now at a mature stage following efforts that have now lasted nearly two years, energy ministry officials noted.

The ministerial decision will determine the licensing, development and exploitation terms for the project, 30km south of Kavala, where a depleted natural gas field is planned to be converted into an underground gas storage facility.

Swift progress is needed as Greece will need to request EU financing for the project, on the PCI list, in 2020. If the request is delayed until 2021 then the available funds could be severely diminished and absorbed by other European PCI-status projects.

The underground gas storage facility is vital for Greece’s electricity grid given the anticipated increase of gas consumption to be prompted by the planned development of combined cycle power plants. Five market players, Mytilineos, Elpedison, GEK TERNA, Elval Halkor and Karatzis, have expressed interest to develop such units.

Privatization fund TAIPED will take over proceedings for a tender once the project’s business model has been decided. The investment is expected to reach between 300 and 400 million euros. Its storage capacity is estimated at between 360 and 720 cubic meters.

Greece is the only EU member without an underground gas storage facility. All other member states maintain facilities covering at least 20 percent of their annual gas consumption needs. Many more similar facilities are currently being planned around Europe.

Independent energy players rushing to fill PPC lignite void

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The country’s major independent energy groups are forging ahead with well anticipated plans to cover prospective electricity generating voids that will be created by power utility PPC’s withdrawal of lignite-fired units, now expected sooner following a government plan for a swifter withdrawal of all lignite-fired power stations, monopolized by the state-controlled power utility.

Speaking at the UN Climate Action Summit in New York last week, Prime Minister Kyriakos Mitsotakis declared full decarbonization would be achieved in Greece by 2028.

The Prime Minister’s pledge for a lignite-free Greece in less than a decade has not taken domestic independent energy groups by surprise. As early as three to four years ago, they had foreseen an approaching end of the lignite era in Greece and around Europe.

So, too, had PPC’s leadership. But the corporation’s lignite monopoly, lignite dependence of local economies in lignite-rich areas, especially Greece’s west Macedonia region, as well as perpetual political interests attached to PPC over the years, have all played roles that have prevented the utility from turning to other energy sources such as natural gas and renewables.

Over the past year or so, major energy groups in Greece such as Mytilineos, GEK-TERNA, Copelouzos and Elpedison, as well as enterprises such as Elvalhalcor and Karatzis, have taken decisions to seek licenses for the development of new gas-fired power stations. The foundation stone of a Mytilineos unit in Boetia (Viotia), northwest of Athens, will be placed by the Greek Prime Minister at a ceremony scheduled for tomorrow.

A planned decarbonization process in neighboring Bulgaria, electricity needs in North Macedonia, and Greek power grid operator IPTO’s imminent upgrade of grid interconnections with Balkan neighbors, especially the aforementioned countries, are all creating further electricity export opportunities for Greek market players.

 

 

Flurry of activity at Revythoussa LNG terminal over next two months

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A flurry of LNG import activity planned through the Revythoussa islet terminal, just off Athens, in September and October, highlights the strong interest maintained by Greek energy companies in this energy source.

The country’s total of five players have all made arrangements to import large and small LNG shipments via Revythoussa during this two-month period, gas grid operator DESFA has announced.

Mytilineos has placed the biggest order, an LNG shipment of approximately 0.5 bcm, expected in October.

The second-biggest LNG order was made by gas utility DEPA, a 0.282-bcm quantity resulting from the utility’s long-running association with Sonatrach for Algerian supply.

Elpedison and Heron have each programed LNG shipments of 148,000 cubic meters, their respective arrivals scheduled for September 12 and 24.

Prometheus Gas has ordered 45,000 cubic meters of LNG for  September 27.

New gas-fired units reshaping electricity generation sector

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Independent electricity producers, sensing opportunities, are reshaping the sector by planning the development of new gas-fired power stations to replace the power utility PPC’s outgoing lignite-fired units. The independent producers are even replacing power stations of their own, launched about 15 years ago, as part of the overall drive.

The country’s required withdrawal of old lignite-fired power stations operated by state-controlled PPC, as well as the implementation of the target model, beginning in the summer of 2020 with a link of the Greek and Italian electricity markets, followed by a Bulgarian link as a second stage, have been cited as the two main factors bringing about this change of scene in the electricity production sector.

The independent producers GEK TERNA (Heron), Mytilineos (Protergia) and Elpedison, as well as new arrivals such as the Copelouzos and Karatzis groups, have all expressed an interest to acquire licenses for the development of new power stations.

PPC, heavily reliant on lignite-based production, is gradually losing grip of its dominance in the electricity generation sector.

Pushed higher by the EU’s environmental policy, rising CO2 emission right costs, now nearing 30 euros per ton after being worth approximately 5 euros per ton a year-and-a-half ago, are a key factor in the developments.

PPC’s CO2-related costs rose to 279.5 million euros in 2018 from 141.6 million euros a year earlier.

Elpedison enters race for new gas-fueled power station

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Elpedison has submitted an application to RAE, the Regulatory Authority for Energy, for an electricity production license concerning an 826-MW combined cycle gas-fueled unit in the Thessaloniki area, next to an existing company unit.

The investment plan, estimated to be worth 400 million euros and requiring about two years to complete, is the fifth application submitted by as many companies for a gas-fueled power station.

The companies still need to make final business decisions to proceed with these investment plans. The country’s grid capacity is believed to have space for one or two new gas-fueled power stations over the next few years.

Production licenses have already been granted by RAE for some of the other four applications while the processing of the others is believed to have reached an advanced stage.

The Mytilineos group has applied for a 650-MW unit at the corporation’s energy hub at the Viotia (Boeotia) area’s Agios Nikolaos location, slightly northwest of Athens. The Copelouzos group submitted an application for a 660-MW unit Alexandroupoli, northeastern Greece; Gek-Terna is looking to develop a 660-MW gas-fueled power station in Komotini, in the north; and the Karatzis group, owner of the KEN electricity company, aims to develop a 665-MW in the country’s mid-north, in Larissa.

Elpedison reapplies for license capacity increase, this time to 1,000 MW

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Energy retailer Elpedison has submitted a new license application to RAE, the Regulatory Authority for Energy, for an electricity supply capacity increase of 150 percent after a previous bid for a smaller increase, submitted roughly a year ago, remained unanswered by the authority.

If approved, the latest license application will increase Elpedison’s supply capacity to 1,000 MW from 400 MW, a reflection of the firm’s plans for further growth in the retail electricity market.

“This higher capacity covers approximately 10 percent of the market, an appropriate level for the size and position of a firm such as Elpedison,” a company official told energypress.

The official also expressed discontent over RAE’s failure to respond to Elpedison’s previous application a year ago.

Elpedison’s share of electricity supply has recorded gradual increases over the year’s first four-month period, from 3.39 percent in January to 3.83 percent in April.

Edison, ELPE preparing offer for Ellaktor’s Elpedison stake

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Hellenic Petroleum (ELPE) and Edison, holding an equally divided 75.78 percent share of electricity producer and supplier Elpedison, are preparing to make an offer for a 22.74 percent share held by construction firm Ellaktor.

Ellaktor has announced a decision to withdraw from Elpedison. ELPE and Edison, both holding preferential buying rights for Ellaktor’s stake, would want to buy it and prevent any rival from become part of Elpedison’s equity line-up.

ELPE and Edison have a limited time period to prepare an acceptable offer. It will need to be made within the summer. If the duo’s offer fails to satisfy Ellaktor, the latter will have the right to seek another buyer.

The current talks between the three companies have been described as positive.

Halcor, the copper tubes division of copper producer ElvalHalcor, holds Elpedison’s remaining 1.48 percent.

Elpedison, whose retail electricity market share was last measured at 3.73 percent, in March, operates two gas-fueled power stations offering a combined production capacity of at least 810 MW. The investment cost for the two units exceeded 500 million euros.

Ellaktor’s decision to withdraw from Elpedison was prompted by a revised business plan shaped by its new administration, whose new focus includes renewable energy.

 

 

RES-focused Ellaktor in talks for sale of its Elpedison stake

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The Ellaktor group has reached an advanced stage in talks with foreign investors interested in acquiring its 22.74 percent stake in electricity producer and supplier Elpedison, sources have informed, a reflection of the corporate group’s intensifying focus on the renewable energy sector.

Last December, the Ellaktor group took over listed wind energy subsidiary El. Tech. Anemos, Greece’s second biggest renewable energy company, as part of a strategy to bolster its position in the RES domain and better adjust to the EU’s decarbonization policy aiming for a drastic reduction of CO2 emissions by 2030 and elimination by 2050.

The corporate group’s takeover of El. Tech. Anemos promises to provide additional cash flow supporting the subsidiary’s investment plan.

The brothers Anastasios and Dimitris Kallitsantsis, who took over the Ellaktor group’s helm last July following a tumultuous battle between the group’s major shareholders, had committed themselves, as a key strategy, to not selling the group’s stake in El. Tech. Anemos but, on the contrary, strengthen the group’s standing in the renewable energy sector.

ELPE (Hellenic Petroleum) and Edison – acquired by EDF – hold a 75.78 stake in Elpedison as a joint venture, Ellaktor holds 22.74 percent, and Halkor has the other 1.48 percent.

 

Elpedison set to begin importing gas via Bulgarian link in 2019

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Energy firm Elpedison has finalized all details, including grid capacity reservations, to begin importing natural gas into Greece as of 2019 via the Greek-Bulgarian interconnection, according to sources.

The company’s move, promising to add Elpedison to a growing number of major domestic energy players engaging in cross-border natural gas trade, aims to improve the firm’s supply mix and bolster its portfolio.

Elpedison is expected to begin importing at levels of 500 MWh with a view to increasing amounts.

Besides the gas utility DEPA, three private-sector players, Promitheas – a member of the Copelouzos group – Mytilineos and Heron, are already importing natural gas through the Greek-Bulgarian border.

The Greek-Bulgarian border was opened for natural gas trade in 2017 following agreements signed by the respective gas grid operators of the two countries.

Elpedison’s turn to natural gas follows its already heightened level of cross-border electricity trading activity, reaching as far as central Europe and Hungary.

Elpedison, on a positive course, is expected to end 2018 with favorable EBITDA results.

 

ELPE discontent with electricity market, upbeat on gas prospects

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ELPE’s (Hellenic Administration) administration expressed disappointment over the electricity market’s operating conditions and, on the contrary, optimism regarding the opportunities offered by the natural gas market, during its presentation of 9M results.

ELPE officials noted the petroleum group’s performance was subdued in ventures concerning its electricity production and natural gas supply interests.

ELPE, whose listed joint venture Elpedison operates two gas-fueled power stations, reported a 58 percent 9M EBITDA profit drop for the venture, to 7 million euros from 18 million euros for the equivalent period last year.

Net electricity production at Elpedison’s two gas-fueled power stations, in Thisvi, slightly northwest of Athens, and Thessaloniki, fell by 14 percent, to 1.46 million MWh from 1.91 million MWh.

ELPE’s administration reportedly attributed these results to regulatory issues in the local electricity market. Elpedison power stations are not being  remunerated for sufficiency security offered to the grid, officials noted, while admitting the Greek electricity market is currently undergoing a transition, from lignite to natural gas.

These factors also impacted the results at gas utility DEPA, in which ELPE holds a 35 percent stake, the administration noted. DEPA’s 9M EBITDA dropped by 25 percent in a year, to 167 million euros from 223 million euros. Its 9M profit after tax fell to 79 million euros from 135 million euros.