emissions

PPC announces strong results, dividends after 10 years

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Power utility PPC has posted robust annual financial results for 2023, including a liquidity figure of 5.4 billion euros, 2.8 billion euros of this amount in cash reserves, as well as operational profitability of 1.5 billion euros.

The performance, which has prompted PPC to announce a dividend payout to shareholders for the first time in ten years, offers the company protection for precarious times, gives it the ability to expand further in Greece and abroad, acquire new RES portfolios, and keep pursuing plans.

PPC shareholders will receive a dividend of 0.25 cents per share, the company announced. The Greek state stands to receive 32 million euros in dividends through Greek privatization fund HRADF/TAIPED’s 34.12 percent stake in PPC.

The dividend payout could be interpreted as a declaration, by PPC, of its complete financial comeback following years of turmoil. PPC has made a gradual return to solid ground since 2019, under the leadership of CEO Giorgos Stassis.

PPC now needs to mitigate any risks entailed in implementing its business plan covering 2024 to 2026, which includes new investments worth 9 billion euros, of which 44 percent concerns renewables.

The power utility has already secured nearly 70 percent of its renewable energy capacity target for 2026, the chief executive explained to analysts yesterday.

Last year, PPC managed to restrict the role of lignite in its energy production to just 22 percent, a contraction that saved the company a lot of money.

Once regarded as one of the EU’s worst polluters, PPC reduced its CO2 emissions by 24 percent in 2023, down to 9.7 million tons from 14.8 million tons a year earlier.

 

Significant emission cuts from domestic industry, SEV notes

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

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

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

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

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

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

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

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

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

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

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

 

Country’s first climate-change law headed for parliament

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The country’s first climate-change draft bill, carrying binding 2030 and 2040 carbon emission targets, as well as a climate neutrality commitment by 2050, is expected to be submitted to parliament within the next few days after having adopted many comments forwarded during consultation.

Deadlines that had been set for the use of heating fuel boilers as well as vehicles with internal combustion engines appear set to be granted extensions of a few years.

A ban on the installation of heating fuel boilers in areas equipped with sufficient natural gas networks will now probably not come into effect until 2024 or 2025, instead of 2023, as was intended by the draft bill prior to revisions.

A plan for the withdrawal of all carbon-emitting taxis in Athens and Thessaloniki by early 2025 also appears set to be given an extension, of two years. The same applies for new rental cars and new company cars.

It remains unclear if the draft bill will include revisions to binding targets for industrial activity emissions, especially energy-intensive enterprises subject to the EU’s Emissions Trading System (EU ETS).

EVIKEN, the Association of Industrial Energy Consumers, during consultation, supported that this category of enterprises must be exempted from a 30 percent emission reduction target between 2023 and 2030, as stated in the original draft bill.

 

RES generation in EU captures record share of energy mix

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Renewable energy generation captured a record-high 35 percent share of the EU’s energy mix in the fourth quarter of 2019, up from 31 percent a year earlier, primarily as a result of record generation levels registered by the hydropower and wind energy sectors, latest European Commission data has shown.

Hydropower production rose significantly, by over 16 TWh year to year, while major gains were achieved by the wind energy sector, whose onshore wind farms grew by 9 TWh, or 9 percent year to year, and offshore wind farms registered a record year-to-year increase of 3.3 TWh, 18 percent.

Overall RES generation in December totaled 105 TWh, a new record level for the month, as a result of favorable conditions for wind farms and record hydropower production levels.

On the contrary, the energy mix share of fossil fuel fell to 39 percent in the fourth quarter of 2019, down from 42 percent a year earlier.

Greenhouse gas emissions in EU electricity generation fell by approximately 12 percent in 2019 as a result of the increase in RES production and a turn from coal to gas.

CO2 emission right costs increased by 57 percent year to year, to 25 euros per ton, according to the European Commission data.

 

 

Energy savings a key factor for new NECP’s ambitious objectives

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Energy savings, or, more specifically, a reduction of the environmental footprint of buildings and vehicles, will be a key factor in the government’s ambitious objectives included in the new National Energy and Climate Plan (NECP).

The plan, to be presented to market officials today at a Bank of Greece event, reduces a 2030 energy consumption reduction target set in 2007 by 38.5 percent.

The country’s previous Syriza-led administration had initially set a reduction target of 27 percent before revising this figure to a more aggressive – yet non-binding – 30 percent and finally accepting a European Commission decision last year for 32.5 percent. This was the target officially adopted for the previous NECP by former energy minister Giorgos Stathakis.

Seen, at the time, as highly ambitious for the standards of a country such as Greece, the NECP’s energy consumption reduction target has now been pushed even higher, by six percentage points.

Approximately 600,000 buildings will need to be made more energy efficient by 2030 if the target is to be achieved. Also, at least 82,000 new electric cars must enter the country’s fleet by 2030, from a mere 315 last year. Generous incentives will need to be offered if these numbers are to be reached.

 

CO2 Challenge enters next stage, project partners announce

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The CO2 Challenge, seeking to find and scale technologies capable of reducing vessel greenhouse gas emissions by ten per cent, is gaining momentum and moving into the second stage, project partners Cargill, Rainmaking and DNV GL announced at the recent SMM trade fair in Hamburg.

The first in-person meetings with start-ups providing innovative technologies were conducted at the stand maintained by DNV GL, a global quality assurance and risk management company.   

“We’ve had a positive response to the CO2 Challenge,” said George Wells, Global Head of Assets and Structuring at Cargill. “We had the opportunity to meet some of the start-ups in person at SMM and are impressed with the technologies and new ideas. As the CO2 Challenge continues, we are confident that we will continue to see interesting options. We launched the CO2 Challenge because our industry must innovate to improve our environmental performance. The solutions are there – we just need to uncover and implement them.”

Since the project was announced in June 2018, the CO2 Challenge has received some 70 applicants from 20 different countries; the scouting process uncovered a further 68 start-ups. The project team, which consists of representatives from DNV GL, Cargill and Rainmaking, is in the process of interviewing applicants. The CO2 Challenge has received a wide variety of technical applications, including wind propulsion, engine optimization, digital, air lubrication, hull optimization and more.

“DNV GL is very proud to be working with a partner like Cargill, who are demonstrating their vision for more efficient and environmentally responsibility maritime operations,” noted Trond Hodne, DNV GL – Maritime Sales and Marketing Director. “The SMM in Hamburg is the perfect venue for moving the CO2 Challenge onto the next stage. With its emphasis on innovation, technology and sustainability, the SMM shows how our industry is moving forward on these issues. But for sustainability to be realised, we need to make sure that new solutions are grounded in solid engineering and meet required safety standards. DNV GL, as a trusted and impartial technical expert, will work with Cargill to make sure that we meet this challenge.”

The CO2 Challenge is still open to new applicants until 17 September 2018.

(Pictured are, left to right: Trond Hodne, DNV GL – Maritime Sales and Marketing Director; George Wells, Global Head of Assets and Structuring at Cargill; and Alex Farcet, Partner, Rainmaking.)

For further information, visit www.co2-challenge.com

 

European Parliament proposes 550g rule exceptions

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Energy committee officials, meeting in European Parliament to revise an electricity market directive, have delivered a new proposal whose implementation would subject conventional power plants to a CO2 emission limit of 200 kilograms per KWh per year, as long as these plants belong to a category of back-up units that would contribute to the system only when necessary.

A decision has already been reached to exclude any plants that emit more than 550g of CO2 per KWh from public money, through eligibility for support mechanisms.

The latest proposal would offer some leeweay to plants exceeding this 550g limit, as long as they have qualified for the back-up reserve category.

The energy committee MEPs noted that power plants belonging to this back-up category are entitled to different emission limits as they will remain sidelined and called to action only if capacity mechanisms have proved to be insufficient. Subsequently, these back-up units will not cause the type of market distortions that could be caused by capacity mechanisms, officials agreed.

This additional proposal, offering some leniency, comes as an effort to bridge gaps between EU member states. Poland, for example, has reacted strongly against the 550g limit, noting it will affect the country’s electricity production.

IEA: Greater energy demand to offset RES penetration emission benefits

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RES penetration in the global energy mix stands to experience rapid growth but, even so, CO2 emissions will rise slightly, compared to current levels, as a result of an increase in primary energy demand over the next 25 years, according to an IEA World Energy Outlook 207 report covering 2016 to 2040.

This essentially means current CO2 emission concerns will remain an issue in the years ahead and obstruct climate change objectives from being reached, unless far more ambitious policies, an unlikely prospect, are applied.

Over the next 25 years, the world’s growing energy needs will first be met by renewables and natural gas, as fast-declining costs turn solar power into the cheapest source of new electricity generation, the IEA report notes.

Global energy demand is expected to be 30 percent higher by 2040, half as much as it would have been without efficiency improvements, according to the report.

It added that the boom years for coal are over — in the absence of large-scale carbon capture, utilization and storage (CCUS) — and rising oil demand will slow down but not reversed before 2040 even as electric-car sales rise steeply.

Solar PV is set to lead capacity additions, pushed by deployment in China and India, while, in the EU, wind stands to become the leading source of electricity soon after 2030, according to the IEA report.

“Solar is forging ahead in global power markets as it becomes the cheapest source of electricity generation in many places, including China and India,” noted Dr Fatih Birol, the IEA’s executive director. “Electric vehicles (EVs) are in the fast lane as a result of government support and declining battery costs but it is far too early to write the obituary of oil, as growth for trucks, petrochemicals, shipping and aviation keep pushing demand higher. The US will become the undisputed leader for oil and gas production for decades, which represents a major upheaval for international market dynamics.”

These themes – as well as the future role of oil and gas in the energy mix, how clean-energy technologies are deploying, and the need for more investment in CCUS – were among the key topics discussed by the world’s energy leaders at the IEA’s 2017 Ministerial Meeting in Paris last week.

 

EU council meeting on emissions underway in Luxembourg

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Sokratis Famellos, deputy minister for the environment and energy, is taking part in a meeting of the European Council for the Protection of the Environment, now underway in Luxembourg.

Among the items on the agenda are emissions of gases into the atmosphere and implementation of the Paris Agreement.

“The ministers will discuss two legislative proposals to reduce greenhouse gas emissions in sectors that are not covered by the ETS regulation system. In addition, the Council will take decisions on the Paris Agreement before the 23rd session of the COP23 in Bonn,” the European Council announced.

 

EU carbon discharge limit plan could backfire, Eurelectric warns

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A European Commission proposal that would impose a carbon discharge limit of 550 grams per kilowatt on power generators may backfire as a result of high costs, failure to achieve decarbonisation objectives, and its disproportionately large impact on east and southeast European countries, Eurelectric, a group representing power generators across the European Union, has warned.

The European Commission’s 550 grams per kilowatt limit for power generators is intended to allow them to take part in capacity mechanisms.

This law would begin applying five years after its implementation for existing units and take immediate effect for new power generating facilities.