Reduced 400-MW proposed for Elounda offshore wind farms

The government has responded to strong local reaction in Crete against the country’s offshore windfarm development plan off Elounda, northeastern Crete, by proposing a smaller area that would host units with a maximum capacity of 400 MW, 57 percent less than the original plan’s capacity; remove a section of the plot facing the islet Spinalonga, in the Gulf of Elounda; and ensure visual disturbances for hotels are eliminated.

These proposed revisions, concerning the Elounda offshore area, one of ten areas included in an initial 2-GW plan for offshore wind farm development around Greece, were tabled by energy minister Thodoris Skylakakis at a meeting Friday involving representatives of EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, local officials, including the mayors of Agios Nikolaos and Sitia, as well as regional hoteliers.

It remains to be seen if the energy ministry’s proposed revisions will be enough to ease the concerns of local officials, hoteliers and residents and quell any further reaction.

The energy minister has lined up an imminent follow-up meeting with mayors and regional authorities. He is expected to offer a more extensive briefing on the potential benefits of offshore wind farm development to local communities at this follow-up meeting.

 

Biomethane production draft bill to be presented in first quarter

The energy ministry plans to present, for public consultation, a draft bill covering biomethane production in the first quarter of 2024 before having it ratified in parliament in the second quarter of next year.

As part of a private consultation, the ministry organized a meeting last week with all entities involved to discuss the new sector’s legal framework and key aspects such as securing raw material for biomethane production, connecting production units to the network, and establishing a support scheme, energypress sources informed. Participants will need to submit their comments by Wednesday.

Over 150 officials took part in the meeting, held last Thursday, including biogas producers, gas transmission and distribution network operators, gas suppliers, relevant ministries, public organizations, RAAEY, the Regulatory Authority for Energy, Environment, and Water, and consumer representatives.

According to sources, the energy ministry is currently promoting a support scheme similar to a model chosen for the incorporation of batteries at RES units. It would combine investment and operating support for new biomethane production units.

As for the cost of connecting new biomethane production units or existing biogas facilities  that will be converted to biomethane plants to the distribution or transmission networks, the ministry favors a formula that would require the operator to assume the entire cost if production units are located less than kilometer from connection points; evenly divide the connection cost between operator and producer if production units are between one and ten kilometers from the network; or require producers to cover the entire connection cost if their units are located over ten kilometers from the network.

Electrical heating subsidies platform nearing launch

A platform accepting subsidy applications for electrical heating should be launched before the year is out or, at the very latest, in early January, energy minister Thodoris Skylakakis has told an OT (Oikonomikos Tahydromos) Forum.

The subsidy support, intended to offer energy-cost relief to lower-income households relying on electrical appliances for heating, will range between 50 and 480 euros for the winter season, depending on income and property criteria, and will be offered within the first three months of the new year, the minister informed.

The subsidy will be directly factored into electricity bills as a discount on electricity costs.

Its criteria for eligible parties are expected to be much like those of subsidies offered for other heating fuels – oil, natural gas, LPG, firewood and pellets.

Income upper limits of 16,000 euros and 24,000 euros per annum apply for singles and married couples or single-parent families, respectively, for subsidies concerning these other heating fuels.

Eligible parties must also meet property criteria. Property values must not exceed 200,000 euros for singles and 300,000 euros for married couples and single-parent families.

New minister outlines sector issues ahead of policy speech

The reelected conservative New Democracy party government’s newly appointed energy minister Theodoros Skylakakis has, in recent days, been preparing a list of energy market problems and pending matters, with emphasis on major issues, such as new tariffs, RES production cuts – needed during periods of low demand to avoid grid overloading – as well as development plans for offshore wind farms and hydrocarbon exploration, ahead of his parliamentary speech in Parliament tomorrow, when key policies by the new government will be outlined by Prime Minister Kyriakos Mitsotakis and his associates.

In the lead-up, Skylakakis has held meetings with top officials representing key market players such as RAAEY, the Regulatory Authority for Waste, Energy and Water; power utility PPC; power grid operator IPTO; distribution network operator DEDDIE/HEDNO; gas grid operator DESFA; RES market operator DAPEEP; and EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, to discuss and take note of energy-sector problems and pending issues ahead of tomorrow’s speech in parliament.

The energy minister has also noted views expressed by RES sector officials on the new National Energy and Climate Plan. According to sources, Skylakakis’ predecessor, Pantelis Kapros – who served a short stint as energy minister in the caretaker government that held office between two rounds of voting, in May and June – has passed on a RES mix plan entailing a 60-40 share between wind and solar energy units, respectively.

Also, the new energy minister prefers to stick to a schedule that would terminate energy-crisis support measures at the end of September, rather than offer extensions, sources added.

 

Caretaker energy minister confident all is in place

The caretaker government’s energy minister Pantelis Kapros has assumed his post feeling confident that all has already been put into place by previous officials to ensure energy sufficiency as summer approaches.

His predecessor, Kostas Skrekas, the country’s market operators and power utility PPC have taken all necessary initiatives to ensure energy sufficiency, even under high temperatures.

Kapros, professor of energy economics and operational research at the School of Electrical and Computer Engineering of the National Technical University of Athens (NTUA), has made this confidence clear during a first round of talks with market operators and regulators.

He will remain in charge of Greece’s energy portfolio until a new government is sworn in following a second round of voting, possibly late next month.

Reservoir water levels at PPC’s dams have been maintained at levels comparable to last year, lignite reserves are high, while the number of new RES units connected to the grid this year has reached unprecedented heights.

The country’s hydropower facilities currently offer a capacity of 2,800 to 2,900 MW, lignite stocks measure 3 million tons, and more than 1 GW in new RES unit connections have been made.

Furthermore, two new power stations, a Mytilineos group facility and PPC’s Ptolemaida V, promising an overall capacity of 1,500 MW, are now close to being launched.

New NECP at Interministerial Committee on Monday

The revised National Energy and Climate Plan, a strategy of greater ambition aiming for 24 GW in wind and solar energy installations, 4 GW in hydropower and pumped-storage stations, as well as energy storage projects totaling 8 GW, all by 2030, is scheduled to be presented at the Interministerial Committee on Monday.

As a next step, the road map of the NECP, now completed according to energypress sources, will be officially announced by the energy ministry before undergoing consultation.

The RES sector’s share of the energy mix has been increased to 80 percent in the revised NECP, up from a 65 percent target set in the previous edition.

The existing NECP’s RES and hydropower target had been set at 19 GW. The revised version’s target has been boosted to 28 GW.

The RES installation target of 24 GW, it should be noted, includes offshore wind farms of 2 to 2.5 GW, indicating that the NECP is, for the first time, committing to the development of this new green energy technology.

Last year ended with operating wind and solar facilities of 10.2 GW, meaning installations representing a total capacity of 13.8 GW for the two RES technologies will need to be installed over the next eight years if the NECP’s 24-GW target is to be achieved.

Gas price cap agreement unlikely at EU Energy Council

EU officials failed to make any progress over the weekend on a natural gas price cap plan whose foundations were established by the bloc’s 27 leaders nearly two months ago, strongly suggesting an agreement will not be reached at tomorrow’s meeting of EU energy ministers but, instead, be deferred until the EU summit on Thursday.

A German-led group including Austria, Denmark, Estonia, Luxembourg and the Netherlands, now also backed by the European Central Bank, wants to avoid a natural gas price cap at 220-euro per MWh, as proposed by the European Commission, or any alternative of equal worth, in an effort to subdue gas prices and wild fluctuations, as was the case in August, despite signs of yet another surge in gas and electricity prices.

The group of six opposes Brussel’s gas price cap proposal, warning it could backfire and result in even higher natural gas prices as the measure could repel major gas suppliers from the European market. The group of six appears to prefer a gas price cap level well above the level proposed by Brussels.

Greece, Belgium, Italy and Poland are the biggest supporters of the the European Commission’s proposal.

Over the past few months, the price cap issue has gone around in circles, passed on by the EU’s 27 leaders to their respective energy ministers, who, in turn, have relayed it to their permanent representatives in Brussels, and back again.

Energy minister and EU peers to push for lower gas price cap

Energy minister Kostas Skrekas and a number of EU peers are expected to push for a lower gas price cap at tomorrow’s Council of energy ministers, believing the European Commission’s proposed level of 275 euros per MWh will not offer any solutions.

The European Commission, through the introduction of a price cap on gas, is seeking to address enormous discrepancies, as was the case in August, between the market price of derivatives and physical LNG deliveries.

Besides the group of EU energy ministers, Eurometaux, the European industry association, as well as other European agencies, have also expressed concern over the level of Brussels’ proposed price cap level for natural gas.

Briefing its members yesterday, Eurometaux estimated that a big price surge, well over current levels of between 110 and 120 euros per MWh, would be needed for the proposed price cap to be activated. A price cap of 275 euros per MWh would hardly ever be triggered, the association noted.

Eurometaux, in its briefing, also enquired whether the European Commission is proposing such an elevated gas price cap level because it foresees a new and far more severe gas crisis in 2023.

Big 2030 RES, energy storage target boosts for revised NECP

The energy ministry is preparing to set even more ambitious renewable energy and storage targets for 2030 through the country’s National Energy and Climate Plan, currently being revised as part of national and EU plans aiming to diminish reliance on fossil fuels, especially Russian natural gas.

The energy ministry is expected to set a total RES capacity target of between 25 and 30 GW for 2030, an objective that could be achieved with new wind and solar energy installations, as well as development of hydropower stations.

At present, RES facilities already operating in Greece offer a total capacity of 10 GW, meaning renewable energy projects producing an additional overall capacity of up to 20 GW will need to be developed over the next eight years if the energy ministry’s anticipated RES target boost in the revised NECP for 2030 is to be achieved.

Greece’s revised NECP will also include a major energy storage capacity boost to between 5 and 8 GW by 2030, well above the present target of 1.5 GW, through a portfolio comprising batteries and pumped storage stations.

Also, the 2030 target for the RES sector’s share of the country’s energy mix is expected to be increased to 80 percent from the current NECP target of 65 percent.

Recovery mechanism for supplier windfall earnings

The energy ministry is moving ahead with a windfall earnings recovery mechanism for electricity suppliers in an effort to counter retailer pricing inaccuracies resulting from fluctuating wholesale electricity prices.

Electricity retailers are required to set their prices each month, by the 20th of the preceding month.

Contrary to August, a month for which suppliers set retail electricity prices that underestimated wholesale electricity price levels, supplier prices set for September overestimated wholesale electricity price levels. As a result, suppliers earned excessive amounts last month. .

The new recovery mechanism will be designed to retrieve excess earnings resulting from such retail pricing inaccuracies. According to the plan, it will be applied once a year, every November, to calculate a net annual result for all electricity suppliers.

Energy minister Kostas Skrekas yesterday informed that the new mechanism will be come into effect next month.

‘Virtual net metering law for businesses by Christmas’

Legislative action to utilize technology enabling virtual net metering through solar energy installations for medium and high-voltage voltage consumers have been announced by energy minister Kostas Skrekas.

The minister said legislation for medium and high-voltage voltage virtual net metering would be ratified by Christmas to enable enterprises to use self-produced electricity generated by off-site PV systems.

The minister, who was speaking at the Professional Chamber of Athens (EEA), addressed the energy crisis and responded to related questions by members on government intervention and actions.

Skrekas told the chamber’s members that energy sufficiency has been secured through government measures but stressed energy waste will need to be restricted.

Recent data showed an electricity consumption reduction of 13 percent in early September and a 40 percent drop in demand for natural gas over the past three months, the minister noted.

Athens to seek one exemption, revision at crucial EU meeting

Greece will seek one exemption as well as a revision to three European Commission proposals intended to raise funds from the energy market to help households and businesses cover costlier electricity bills when the EU’s energy ministers stage a crucial meeting this Friday.

Greek energy minister Kostas Skrekas will strive for the continuation of a revenue recovery mechanism without a lifting of a price cap on natural gas-fueled power stations.

The European Commission has proposed a maximum price for all electricity generation technologies (RES, nuclear, hydropower without storage, lignite, biofuels and geothermal), with the exception of gas. However, the Greek model has featured a price cap on gas-fueled units since July.

According to sources, if Greece is unable to keep its price cap on gas-fueled units, then a surcharge of 10 euros per thermal MWh of natural gas quantities used by electricity producers will be imposed. This measure, announced last week, would raise 400 million euros annually, market officials have estimated.

Greece is also expected to seek revisions to a Brussels proposal aiming for a reduction in  electricity demand. Athens, sources informed, wants Brussels’ proposal for a 5 percent electricity consumption demand to be optional, not compulsory, as the European Commission has proposed. Major Greek industrial players have reacted against this measure, citing reduced competitiveness abroad.

Greece will adopt an extraordinary 33 percent tax on windfall profits earned by Greek refineries in 2022, Brussels’ third measure, the energy minister informed during a SKAI TV interview on Saturday.

 

July power subsidies 20 cents per KWh for all households

Electricity bill amounts for all households will be subsidized at a rate of 20 cents per KWh for consumption in July, without any upper limits and regardless of income levels, energy minister Kostas Skrekas has announced.

The total value of the government’s subsidy package for July is expected to reach 722 million euros, a 300 million-euro increase compared to June.

Besides the universal amount to be offered to all households, July’s electricity consumption for low-income households eligible for social support will be subsidized 240 euros per MWh, a rate fully absorbing the month-to-month increase.

In addition, electricity consumption concerning businesses with 35-kVA connections will be subsidized at a rate of 192 euros per MWh, while all other businesses and industries will be supported with subsidies worth 148 euros per MWh for July.

Furthermore, natural gas subsidies for industrial consumers will be subsidized at a rate of 30 euros per thermal MWh, according to the government’s support package.

Commenting on the government’s energy-security plan should Russian gas supply to Greece be disrupted, Skrekas, the energy minister, noted that the capacity of the Revythoussa LNG terminal on the islet just off Athens will be doubled with the installation of an FSU, expected to be ready to operate by the end of this month.

LNG imports will be increased, the minister noted, adding that power utility PPC’s new lignite-fired power station Ptolemaida V will be ready to operate in September. This facility will convert to gas later on. Also, five diesel-fueled units are ready to be used, if necessary, the minister informed.

PM calls for European unity to counter impact of energy crisis

Prime Minister Kyriakos Mitsotakis has called for the establishment of a single line of defense by the EU as protection against the impact on energy prices by Russia’s invasion of Ukraine.

This proposed stance, expressed by Mitsotakis during a meeting in Bucharest yesterday with Romania’s leadership, as well as during an extraordinary summit of the European People’s Party, is expected to be reiterated at today’s emergency European Council meeting.

Europe must establish a common response to rising energy prices as a means of protecting consumers and businesses and limiting the continent’s exposure to gas price fluctuations, through a diversification of energy sources, the Greek Prime Minister supported during yesterday’s meetings.

According to sources, Mitsotakis will go into today’s European Council meeting with a specific proposal believed to entail utilization of the EU Emissions Trading System’s Market Stability Reserve that could lead to energy crisis support worth as much as 100 billion euros.

Last month, energy minister Kostas Skrekas presented a similar proposal at a meeting of EU energy ministers in France.

The Greek proposal could gain wider acceptance this time around given the grim forecasts of even higher energy costs.

Athens to discuss plan should Russian gas supply be cut

The Greek government is on high alert fearing the entry of Russian troops into two rebel-held regions in Ukraine’s east could disrupt Russian natural gas supplies to Europe and prompt energy insufficiencies, including in Greece.

In response to the development, energy minister Kostas Skrekas has been asked to attend an emergency meeting of the Government Council for Foreign Affairs and Defense (KYSEA), to be headed by Prime Minister Kyriakos Mitsotakis, and present a detailed update on the strategy he could implement to avert a natural gas shortage in Greece should Russia disrupt its gas supply to Europe or the EU imposes economic sanctions on Russia, including its gas exports.

Russian president Vladimir Putin has recognized Donetsk and Luhansk as independent states.

The fundamentals of the Greek energy minister’s plan had been presented at a recent government meeting on February 14.

According to sources, the worst-case scenario would entail a disruption of Russian natural gas supply via the TurkStream pipeline, which supplies Bulgaria and then Greece.

In this event, Greece would need to utilize gas grid operator DESFA’s LNG terminal, on the islet Revythoussa just off Athens, to its fullest, as well as the TAP pipeline supplying natural gas from Azerbaijan.

The Revythoussa LNG terminal is currently filled to capacity and would remain so with two shipments each month for as long as the Ukraine crisis continues, sources have informed.

However, the big question for Greece, and Europe as a whole, is whether LNG shipments will be available, and at what price.

Milder weather conditions, resulting in less gas consumption, would help ease the pressure on grids throughout Europe.

Bids for Volterra in March, company continuing RES development

Prospective bidders for the partial or full sale of energy company Volterra, a subsidiary of the AVAX construction group, have been informed to prepare for binding bids within March, according to an update delivered by a major consulting firm commissioned by AVAX for the sale procedure.

This information emerged during a series of meetings staged last week by energy minister Kostas Skrekas and RAE, the Regulatory Authority for Energy, with the country’s energy suppliers, behind in their relay of energy-bill surcharge amounts to market operators and municipalities.

In accordance with standard company policy, AVAX always considers every possible option, depending on market conditions and its broader strategy, in order to to best utilize its assets and stakes, the construction group has announced.

Besides its activity in the retail energy market, Volterra is also continuing to develop its investment plan in renewables, a sector in which the company holds a strong RES portfolio with a capacity of 285 MW, comprising ten projects at various stages of maturity.

Authority working on retail electricity market monitoring tool, expected April

RAE, the Regulatory Authority for Energy, is developing a market monitoring tool for the retail electricity market, to enable more effective monitoring of actions by suppliers.

According to sources, this mechanism, to monitor the pricing policies of electricity suppliers, including their discount policies, as well as clause activation, should be ready by April.

RAE officials informed energy minister Kostas Skrekas, at a recent meeting, on the details and progress of the retail market monitoring tool currently being developed.

During the session, the RAE officials also updated the energy minister on the wholesale electricity market’s course, basing their findings on a monitoring tool designed for the wholesale market.

According to sources, no attempts, by producers, at market manipulation or other distortions have been identified to date. The reports presented to the minister covered the month of January.

Number of households without electricity now down to 1,000

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

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

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

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

‘Second recovery fund for green investments around the country’

Funds worth 16 billion euros are being made available for green development and climate change action from the recovery fund and the National Strategic Reference Framework until 2027, while a further 5 billion euros is expected to be added to the effort from the island decarbonization fund and the modernization fund, all of which essentially creates a second recovery fund for green investments throughout the country, energy minister Kostas Skrekas has noted in an energypress new year feature.

In his appraisal of 2021, the minister noted that the government responded to challenges, as much as is possible amid highly destabilized international conditions, faster and more efficiently than Europe’s bigger economies.

“We have established a solid foundation for a sustainable future, with strong growth potential. We have created unparalleled impetus for green investments, which we expect to exceed 44 billion by 2030, creating 150,000 new jobs,” the minister noted, adding that, in the face of the international energy crisis and its price surge, the government’s support measures for consumers will exceed 1.3 billion euros in 2021.

Results of push for improved Russian gas deal seen today

A meeting today in Sochi between Greek Prime Minister Kyriakos Mitsotakis with Russian President Vladimir Putin – their first as heads of state – will made clear if preceding negotiations between officials of the two countries have come to anything for an improved Gazprom gas supply contract for Greek gas utility DEPA in 2022.

Any improvement for DEPA is regarded as a challenging task and would represent a major surprise if pulled off, given the unfavorable conditions, internationally.

The Greek Prime Minister is seeking an improved gas supply deal from Russia, the country’s main supplier, in an effort to boost support offered to Greek households and industry, struggling in the energy crisis, through further energy cost discounts.

Russia currently supplies 45 percent of natural gas consumed in Greece as well as nearly 10 percent of the country’s crude oil.

DEPA’s agreement with Russia’s Gazprom Export, its main supplier, expires in 2026 but is subject to annual talks concerning pricing formula and take-or-play clause revisions.

The Russian side has pushed for the 2022 agreement with DEPA to be fully indexed to the Dutch TTF gas index, but this index has risen 500 percent since last year, prompting Greek officials to resist.

According to energypress sources, Russia has maintained a tough stance in its negotiations with Greek officials, as was highlighted at a meeting yesterday in Saint Petersburg between Greek energy minister Kostas Skrekas and Gazprom’s chief executive Alexey Miller over the pricing formula to apply for Russian gas supply to Greece in 2022.

Greek officials want to avoid a DEPA-Gazprom agreement that is fully indexed to the Dutch TTF gas index and are believed to be aiming for a TTF pricing coefficient of between 60 and 70 percent, which would enable an oil-indexed price for the other 30 to 40 percent.

Crucial Gazprom pricing formula talks in St. Petersburg

Energy Minister Kostas Skrekas is scheduled to meet Russian gas company Gazprom’s chief executive Alexey Miller in Saint Petersburg today for crucial talks over the pricing formula to apply for Russian gas supply to Greece in 2022.

Russia currently supplies 45 percent of natural gas consumed in Greece as well as nearly 10 percent of the country’s crude oil, making today’s talks pivotal for the competitiveness of Greek industry and living standards of households amid the energy crisis.

Gazprom, aiming to capitalize on the sharp rise in natural gas prices, wants the pricing formula to be fully indexed with the Dutch TTF gas hub index, which the Greek side says it cannot accept, according to comments offered by a senior official to energypress.

Greek gas utility DEPA’s agreement with Gazprom is currently entirely oil-indexed. The two sides had agreed to an extraordinary revision for 2020 and 2021 indexing prices with the TTF gas index as oil prices were considerably higher. The opposite is now the case, with LNG prices well above oil prices in recent months. Gazprom officials now prefer prices to not be fully indexed to oil.

DEPA’s pending agreement with Russia’s Gazprom Export, its main supplier, expires in 2026 but is subject to annual talks concerning pricing formula and take-or-play clause revisions.

Industry may be spared of public service compensation cost

Energy minister Kostas Skrekas has, for the first time, in public comments, left open the possibility of industrial enterprises being spared of paying public service compensation (YKO) amounts for a five-month period covering November to March, as part of an effort to reduce industrial energy costs.

“We will assess the public service compensation account’s revenues and, if deemed necessary following the five-month period, will gradually impose these charges,” the minister noted at an event focused on industrial energy cost.

Speaking at the same event, Giorgos Xirogiannis, deputy general manager of SEV, the Hellenic Association of Industrialists, underlined the problems faced by industrial producers as a result of the sharp rise in energy costs.

Greek industry is currently 20 to 30 percent less competitive than European industrial enterprises, the SEV deputy noted.

He raised a series of energy cost-related issues that need to be addressed, including the YKO surcharge added to electricity costs, distribution costs and energy taxes.

Investments in renewable energy infrastructure and networks need to be accelerated in coming years for the achievement of a favorable energy mix balance, the SEV official added.

Also, the impact on the cost of energy of the EU’s “Fit for 55” package, aiming for a 55 percent reduction of carbon emissions by 2030, compared to 1990 levels, needs to be discussed, the SEV deputy added.

 

Grid priority for units functioning purely as energy storage stations

Revisions enabling grid connection priority only for facilities functioning purely as energy storage stations dominated the legislative revisions presented by energy minister Kostas Skrekas at a cabinet meeting yesterday.

The minister left aside matters concerning RES licensing simplification, pumped storage stations and other energy-storage forms.

RES units combining energy storage facilities will be regarded as RES units and not be given grid connection priority, according to the draft bill.

Brussels hesitant on hedging mechanism for energy prices

A Greek proposal for the EU’s adoption of a temporary hedging mechanism as a means of easing the burden of sharply risen energy costs on consumers, to be tabled at a Eurogroup meeting of EU finance ministers today, will be met with hesitancy as the European Commission would not want to bring to the negotiating table issues linked to the Emissions Trading System, fearing any potential need of a compromise with member states opposed to the ETS, such as Poland, well-informed sources anticipate.

The European Commission has fought hard to establish the ETS as a means of combating climate change.

The temporary hedging mechanism would draw funds from the Emissions Trading System’s auctions of CO2 emission rights.

The hedging mechanism was proposed several weeks ago by Greek energy minister Konstantinos Skrekas and will be officially presented by Greek finance minister Hristos Staikouras to his European counterparts at today’s Eurogroup meeting.

The EU finance ministers will be focusing on the alarming increase in energy prices, prompted by a combination of international factors, though finalized decisions at this session are considered unlikely.

Minister calls for swifter Brussels support on new RES auctions plan

Energy minister Kostas Skrekas has requested swifter support from the European Commission, in the form of a comfort letter, on a plan concerning Greece’s new RES auctions, as well as auctions for the installation of hybrid stations on islands.

The minister made the request to European Commission deputy Margrethe Vestager, also Brussel’s Commissioner for Competition, during an online meeting between the two officials on Friday.

During the session, Vestager is believed to have expressed satisfaction over Athens’ implementation of a plan offering third parties access to state-controlled power utility PPC’s lignite-fired power production, an issue that had remained unresolved for many years.

PPC sold a first electricity package at a discount price on Friday, as part of the government’s agreement with the European Commission.

Greece’s energy minister also urged for efficient cooperation with the Directorate General for Competition on an ongoing effort aiming for the introduction, by the end of the year, of a Strategic Reserve mechanism.

The mechanism is planned to compensate PPC for its maintenance, as grid back-up, of lignite-fired power stations headed for withdrawal. The availability of these units is still needed to ensure grid sufficiency and stability.

 

 

Independent suppliers react to gov’t handling of subsidy plan

Independent electricity suppliers, especially the non-vertically integrated, have expressed strong disapproval of the manner in which the government presented a subsidy plan aiming to offer energy-cost relief to consumers, noting the presentation of the measures offered promotional support to state-controlled power utility PPC, the market’s dominant supplier.

The complaints, which focused on the subsidy plan’s presentation, not the actual measure, were expressed at a meeting yesterday between energy minister Kostas Skrekas and representatives of the country’s electricity suppliers.

During the government’s presentation of subsidies to be offered to counter rising electricity costs – wholesale and retail – pushed up by a combination of unfavorable factors in international markets, attention was also placed on an additional discount to be offered by PPC, to supplement the subsidies.

Independent suppliers perceived this latter detail as inappropriate market intervention by the government and an effort to give PPC a competitive edge over rival suppliers.

At the meeting, the energy minister called upon electricity suppliers to contribute to the energy-cost containment effort by utilizing the subsidy plan and offering discounts. Independent suppliers stressed they are currently operating with the slightest of profit margins.

The subsidies, to offer suppliers 30 euros per MWh, will be distributed by November, the minister informed.

Vertically integrated independent suppliers, which now have a clearer picture on PPC’s latest pricing policy, have already begun shaping strategies of their own, sources informed.

 

 

 

Independent players set to offer discounts, awaiting PPC clarity

Independent suppliers are set to offer discounts and tariff reductions to consumers, their effort focusing on consumption levels ranging between 300 and 600 kWh, not covered by state subsidies, according to latest updates.

Independent suppliers are awaiting the outcome of a meeting today involving energy minister Kostas Skrekas, during which state-controlled power utility PPC’s discount strategy will be clarified, before they take specific decisions, including for the consumption category of up to 300 kWh, applying to the majority of households.

Besides an across-the-board discount of 30 percent for all consumers, including the category up to 300 kWh, PPC has also promised an additional discount of between 3 and 4 percent for the 301-600 kWh category.

It still remains unclear how much the price gap between PPC and independent consumers offering lower tariff prices could be narrowed by this move.

Independent suppliers know well that they will need to keep offering lower tariffs than PPC, the dominant player, to remain competitive.

The government plans to adopt an Energy Transition Fund to offer electricity subsidies to households and small and medium-sized enterprises, heating fuel subsidies, and a range of other initiatives as a tool to contain the surge in wholesale energy costs, prompted by a combination of factors in international markets.

 

Energy minister calls emergency meeting, heatwave set to peak

Energy minister Kostas Skrekas is due to visit power grid operator IPTO’s control center in Athens today for an emergency meeting he has ordered to deal with grid sufficiency issues raised by the prolonged heatwave conditions, expected to become even more acute during the week.

Prime Minister Kyriakos Mitsotakis will participate in the emergency meeting along with the head officials of RAE, the Regulatory Authority of Energy, power grid operator IPTO, distribution network operator DEDDIE/HEDNO, and power utility PPC.

The grid is expected to face unprecedented conditions in coming days as electricity demand peaks to reach record levels, prompted by the extreme weather conditions.

The energy ministry has already urged the public to exercise restraint in electricity consumption over the next few days as a means of helping the pressured grid cope with the heatwave’s demands.

The energy minister also staged an emergency meeting yesterday morning with officials of the aforementioned energy sector companies.

Electricity demand today is expected to peak at 9,600 MW, at around 9pm, well over the average peak of 8,115 MW in the first half of 2021.

Suppliers unimpressed by plan ending PPC lignite monopoly

Independent electricity suppliers have remained unimpressed by measures taken to end stare-controlled power utility PPC’s exclusive access to lignite, noting resulting lignite-generated electricity amounts offered to third parties are too small to bring about changes to competition.

The country’s independent suppliers had until yesterday to respond to a 15-question questionnaire forwarded by the European Commission as part of a market test on the effectiveness of the measures, recently agreed on between Brussels and new energy minister Kostas Skrekas.

Certain respondents explained that low-priced lignite electricity purchases, even at levels well below day-ahead market price levels, would not offer benefits as they cannot offset extremely higher wholesale electricity prices, pushed up by increased balancing market costs.

Some of the vertically integrated suppliers, not facing problems by the wholesale price shifts, noted the measures would end the prospects of a futures market operating at the energy exchange any time soon.

PM to visit stalled Mesohora dam project, completion ‘near’

Prime Minister Kyriakos Mitsotakis and his energy minister Kostas Skrekas are scheduled to visit power utility PPC’s slow-moving Mesohora hydropower project in west Thessaly on Saturday as part of a wider visit to the area, for an update on its progress.

The Mesohora dam, along with the E 65 highway project in central Greece, will be the main topics of discussion at meetings, a few hours later in Trikala, between the PM, energy minister and regional authorities.

The Mesohora dam, close to completion since 2001, has been delayed by a series of setbacks, including, most recently, November’s nullification of the project’s environmental terms by the Council of State, Greece’s Supreme Administrative Court.

PPC is being deprived of revenue worth 30 million euros annually as a result of the project’s delay.

Efforts now being made to put the project’s completion back on track include PPC’s ongoing preparation of a new environmental impact study, which should pave the way for the dam’s new environmental terms.

The project’s new environmental license could be a swift procedure, enabling a restart of work for completion and trial tests of the new dam by the end of 2023, according to the most optimistic of forecasts.

The Mesohora hydropower facility, an investment exceeding 400 million euros, is designed to have a 160-MW capacity and produce eco-friendly electricity amounts of 360 GWh, annually.