energy ministry

Electricity suppliers’ windfall earnings confirmed at €250m

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Latest data collected by authorities to determine windfall earnings gained by electricity suppliers between August, 2022 and the end of 2023, the period during which energy-crisis measures were implemented, have confirmed an earlier projection of roughly 250 million euros.

RAAEY, the Regulatory Authority for Waste, Energy and Water, had conducted its windfall earnings calculations in February, informed the energy ministry of its results.

However, distribution network operator DEDDIE/HEDNO still needed to determine and factor in a normalization coefficient before this sum could be confirmed.

The normalization coefficient is designed to adjust megawatt-hours suppliers are charged monthly – based on their declarations submitted to the Energy Exchange – with actual megawatt-hours they have used.

Now that the coefficient has been finalized, the energy ministry can issue a ministerial decision, expected within the next few days, to validate the windfall earnings sum and proceed with its recovery from electricity suppliers.

As previously reported by energypress, virtually all windfall earnings will go towards partially covering amounts owed by municipal water supply and sewerage companies (DEYA) to power utility PPC.

Suppliers turning away from net metering as losses grow

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Many of the country’s electricity suppliers do not intend to offer contract extensions for existing net-metering contracts as this supply category has developed into a loss-incurring service.

The energy ministry held a meeting earlier this week to discuss the issue with suppliers as well as officials from distribution network operator DEDDIE/HEDNO and RAAEY, the Regulatory Authority for Waste, Energy and Water, energypress sources informed.

Policymakers are examining possible revisions that could allow suppliers to recover additional costs more effectively, but no decisions have been reached, the sources added.

The meeting was held as a number of energy communities planning to develop net-metering systems to offset their members’ consumption have not been able to find suppliers for such contracts. It was the second meeting to be held on the matter.

According to suppliers, existing offsetting terms disregard the value of electricity involved, leading to losses for suppliers.

In practice, PV net-metering systems experience production peaks during midday hours, discharging excess production to the grid as a means of storage that enables usage, in accounting terms, during the evening hours, when PVs do not produce.

However, given the fact that consumers have entered into net-metering contracts with suppliers at specific prices, normally costlier energy of evening hours that is drawn from the grid to meet customer energy needs ends up being purchased by suppliers without this additional cost being recovered in any way.

A draft bill proposed by the energy ministry, currently under discussion in Parliament, is poised to bring significant alterations to self-production practices. Net-metering for residential PVs will be terminated May 15 and replaced by net-billing.

 

 

Energy-intensive industry to make ministry’s 1.5-GW PPA cut

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PPAs established by RES producers with industrial consumers for connection-term priority concerning new RES projects developed by the former add up to a total capacity of more than 3.9 GW, but just under half of this capacity, or 1.5 GW, linked to energy-intensive industry, is expected to be approved by authorities.

The energy ministry is still processing PPA applications submitted by RES producers, eager to secure connection-term priority for their projects.

Given the overwhelming response, the ministry has decided to trim the number of applications by 20 percent, through an imminent ministerial decision, in an effort to secure connection terms for a greater number of projects.

However, despite this cut, the capacity will remain elevated, at 3 GW, well over the 1.5 GW in industry-related PPAs the ministry intends to approve.

PPA applications linked to energy-intensive industries represent a total of 1.8 GW, a figure expected to prompt the energy ministry to trim further for a final figure of 1.5 GW.

The ministry’s evaluation process of applications is expected to be completed today. The finalized list of industrial-consumer PPAs will be decided by energy minister Thodoros Skylakakis.

Energy-intensive industries appear most certain to secure PPAs as the energy ministry’s key aim, through this initiative, is to lower industrial energy costs.

According to energypress sources, the list of main PPAs concerning energy-intensive industries is as follows:

Power utility PPC – Viohalko (520 MW), concerning PVs jointly owned by PPC and Motor Oil; PPC – Titan (300 MW), also concerning PVs jointly owned by PPC and Motor Oil; Mytilineos (300 MW) for self consumption; Helleniq Energy (200 MW) for self consumption; AGET – Macquarie (40 MW); Hellenic Halyvourgia – Interphoton (104 MW); and TERNA – Viohalko (360 MW).

1.5 GW in RES projects with industrial PPAs set for approval

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The energy ministry intends to soon issue a ministerial decision that will result in connection-term priority for roughly 1.5 GW in RES projects that have established PPAs with industrial consumers.

Applications by investors behind RES projects seeking connection-term priority through industrial PPAs have reached a total capacity of approximately 3.8 GW.

At this stage, the ministry’s main aim is to offer local industries benefits lowering their energy costs rather than to promote new RES projects through fast-track procedures.

Projects included in a top-tier category will be given connection-term priority through the ministerial decision, while remaining capacity will be offered to second-tier projects.

Island RES project support of at least €1.59bn via new fund

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The energy ministry is planning distribution details of proceeds to be collected by the forthcoming Island Decarbonization Fund through auctions, in 2024 and 2025, of 25 million CO2 carbon emission rights that have been allocated to the fund.

These rights are expected to raise between 1.5 and 3 billion euros through auctions over the two-year period.

Proceeds raised by the CO2 carbon emission rights allocated to the fund will be used to offer subsidy support for island projects such as new RES and battery installations, grid interconnections, offshore wind farms, as well as island infrastructure development facilitating greater RES penetration.

The Island Decarbonization Fund’s launch, now imminent, will be officially launched with the signing of an agreement by the European Commission’s Directorate-General for Climate Action (DG CLIMA) and the European Investment Bank.

As part of its planning for the new fund, the ministry is dividing prospective projects into two tiered groups, the first of which will be given priority status to secure 1.59 million euros from the Island Decarbonization Fund, roughly the minimum sum expected to be raised by CO2 carbon emission rights.

 

RES projects given conditional reference price extensions

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RES projects will be entitled to extensions for tariff reference prices obtained either administratively or through auctions, but, in exchange, investors behind these projects will need to accept lower tariffs, according to a legislative revision submitted to Parliament.

RES projects for which investors have secured tariff reference prices through auctions will be entitled to extensions of up to 12 months.

In order to secure this additional time, investors will need to have submitted procurement agreements concerning equipment for their projects to RAAEY, the Regulatory Authority for Waste, Energy and Water, one month before project launch deadlines.

Investors behind RES projects that have obtained tariff reference prices administratively will be given three additional months to submit declarations of readiness or activation requests to the operator.

An August 31, 2024 deadline included in a previous draft of the now-finalized terms has been extended to November 31, 2024.

Energy multi-bill submitted to Parliament, no major changes

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An energy ministry multi-bill submitted to Parliament yesterday includes a model for the country’s next wave of RES auctions that offers renewable-energy producers operating support based on incentives for electrical-grid capacity savings.

RES projects currently being developed and already holding connection terms will be offered premiums as incentives encouraging their respective investors to accept greater grid-injection restrictions, or to equip their projects with batteries.

Other multi-bill details include terms for an SPV to be established by EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, for offshore wind farms; floating PV provisions; as well as revised action on electricity theft and the universal electricity supply service provided to black-listed consumers no longer accepted by electricity suppliers.

No major changes have been made to the multi-bill’s content following consultation and the procedure’s numerous comments.

Special parliamentary committees will begin discussing the multi-bill’s details tomorrow. The energy ministry aims to have it ratified by the middle of next week.

Multi-bill terms abolishing RES grid-injection limits

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An energy ministry multi-bill includes a provision abolishing grid-injection upper limits imposed on RES units to maintain a balance between production and demand and help counter local grid congestion. Consultation on the multi-bill ended this morning.

Limits imposed on RES units through legislation ratified in 2022 subjected their grid injections to 5 percent limits of annual production capacity.

According to this limit’s details, the grid operator was not required to offer compensation to RES producers regarding grid-injection restrictions. However, compensation details still need to be clarified.

Under the new terms, the existing 5 percent grid-injection limit will only be maintained for permanent restrictions, as is the case with PVs linked to the grid, facing a 72 percent restriction, and wind energy facilities, permitted to inject 80 percent of capacity between 8am-11am, 65 percent between 11am-3pm, and 80 percent between 3pm-5pm.

 

Brussels’ approval sought for revised RES auction framework

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The energy ministry aims to secure the European Commission’s approval of a new RES auction framework it is preparing by revising an existing plan that would result in new RES projects becoming eligible for operating support if subject to greater grid-injection restrictions and/or possessing behind-the-meter batteries.

Authorities see the next wave of RES auctions as a means of creating more electrical space for RES investments by requiring projects with connection terms to incorporate storage units.

According to early estimates, some 2 GW in RES facilities with batteries behind the meter are expected to qualify for operational support through a new wave of RES auctions.

A project management team assembled by the energy ministry will propose an optimal size for this portfolio of RES units with storage systems to be deemed eligible for state support, based on the maximization of benefits to the system, taking into account the economic viability of investments involved.

The energy ministry’s intention is to ensure clarity for investors on RES units and batteries, as was stressed by deputy energy minister Alexandra Sdoukou at the recent Power & Gas Forum in Athens.

Ministry strives for May auction supporting battery usage

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An upcoming RES auction offering investment support to standalone batteries representing a total capacity of 175 MW comes as the next step in the energy ministry’s effort promoting batteries at RES projects, and, by extension, increased usage of storage units in the country’s electrical system.

The ministry is striving to stage this auction, whose investment support stems from the European Commission’s REPowerEU program, as early as May.

A preceding auction had offered RES projects energy-storage investment support of 200,000 euros per MW, but this level has now been halved to 100,000 euros per PW, the intention being to make the support package available to more RES units.

A sum of 85 million euros has been marked out for energy-storage system support from the country’s REPowerEU allocation, worth a total of 795 million euros. The REPowerEU package has come to bolster Brussels’ preceding RRF initiative.

The upcoming RES auction will concern batteries with two-hour durations. It will be followed by an auction offering investment support for batteries with four-hour durations, planned to be installed at former lignite-dependent areas.

To date, two auctions have been staged for investment support to standalone batteries representing a total capacity of roughly 700 MW.

Besides these two auctions and the forthcoming auction, possibly in May, a further two auctions offering investment support to standalone batteries with a capacity of between 700 and 800 MW are planned to be held by the end of this year, bringing the support effort’s overall tally to approximately 1,675 MW.

Tougher electricity theft measures, 4-month limit on universal service

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Electricity-theft rackets are being targeted through tougher measures prepared by the energy ministry, including loss of professional licenses for electricians bribed to offer their services for such practices.

The energy ministry has just forwarded a related bill containing tougher rules for consultation as part of its effort to clamp down on electricity theft.

Electricity theft has been on the rise, reaching roughly 13,000 cases, annually, while the majority of offenders stem from the business sector, energy ministry Thodoris Skylakakis has noted.

Electricity theft has been estimated to represent 4.8 percent of the electricity market for an annual loss of nearly 400 million euros, a sum ultimately covered by lawful consumers, the minister has pointed out.

Under the new rules, electricians will need to sign affidavits certifying that their installations are lawful and in accordance with safety regulations.

Electricity supply to properties will only begin once DEDDIE/HEDNO, the distribution network operator, has been informed that affidavits have been submitted by electricians.

Other measures included in the energy ministry’s bill include a four-month limit on the use of the country’s universal electricity supply service by black-listed household and business consumers who have been shunned by suppliers over payment failures.

At present, black-listed consumers no longer accepted by electricity suppliers can rely on the universal electricity supply service for unlimited periods.

Provided collectively – by law – by the electricity market’s top five suppliers, based on market share, the universal electricity supply service has grown to become a key supplier.

 

Gov’t lowering NECP goals to avoid economic slowdown

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The government has decided to slow down its energy-transition drive through revisions that will set more realistic objectives and more conservative policies, in accordance with the country’s fiscal margins and the public’s ability to cope.

An investment plan worth 192 billion euros, the equivalent of Greece’s GDP, that had made up the National Energy and Climate Plan forwarded to the European Commission in December will now be greatly toned down.

It will essentially be replaced by a new and far more reserved NECP of more accurate projections, as well as changes to all energy-transition technologies, except for renewables, which have already achieved 2030 targets as of last year.

Energy minister Thodoris Skylakakis offered an indication of changes in the making at an event yesterday staged by CRES, the Center for Renewable Energy Sources and Savings, locally acronymed KAPE.

CRES/KAPE will be involved in the preparation of the revised NECP, planned to be delivered to the European Commission by June.

If the current NECP’s targets were left unchanged for electromobility, energy savings at buildings, subsidies promoting the replacement of old household appliances with new systems, hydrogen projects, and other technologies, then the Greek economy would grow at an average rate of just 0.6 percent until 2050, officials pointed out at yesterday’s CRES/KAPE event.

Net-metering, roof-mounted PV subsidies ending early May

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The energy ministry plans to place energy RES self-consumption under a net-billing framework through a forthcoming bill that will include an amendment abolishing net-metering and prematurely ending “PV Stegi”, a subsidy program for roof-mounted solar panel installations, sources have informed.

The legislative revision, sources added, is expected to be ratified around late April, meaning that net-metering will be abolished by early May, along with the “PV Stegi” subsidy program that had been planned to accept applications until June 30.

Market players, including SEF, the Hellenic Association of Photovoltaic Companies, have already expressed concerns about this prospect, warning it would severely impact growth in the sector.

The ministry’s approach, sources noted, is based on objections raised in the past by the European Commission concerning net-metering as well as its resulting increased cost for energy suppliers.

Brussels considers net-billing to be the most appropriate formula for self-consumption. The European Commission has raised objections against “PV Stegi” subsidy program for roof-mounted solar panels, noting the program has been  subsidizing a spread of net-metering in the household sector.

Under the new rules, farmers will be an exception as both net-metering and net-billing systems will continue to apply for small-scale solar systems inducted into a forthcoming “PVs on farmland” subsidy program supporting PV installations by farmers seeking to meet their energy needs through self-production.

PV systems with a capacity of up to 30 KW will be regulated under a net-metering system, while photovoltaic systems with capacities ranging from 31 to 50 KW will be regulated under the net-billing system, energypress sources informed.

Both net-metering and net-billing compensate solar-system owners for transferring electricity to the grid when their panels overproduce, but the ways the two systems compensate differs.

Net metering credits equal the retail electricity rate paid by customers for electricity. On the contrary, net billing credits equal the wholesale rate electricity companies pay for electricity.

Fast-track renewable energy PPAs sparking activity

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A recent legislative revision by the energy ministry securing connection-term priority for RES projects that have established PPAs with industrial consumers within a specified 35-day limit has sparked heightened activity between the two sides seeking to gain from this fast-track offer.

PPA applications for RES projects representing a total capacity of between 800 and 1,000 MW are estimated to have so far been submitted to both energy ministry and power grid operator IPTO divisions, as is required. The influx of applications is expected to rise.

RES investors seeking connection-term priority for their projects are required to submit affidavits naming their projects, while the off-takers, in this case, industrial consumers, must also submit affidavits, for the process to be completed.

PPA levels are currently being set at highly competitive prices for energy consumers. Large-scale industries are negotiating PPAs at price levels of between 50 and 52 euros per MWh, while smaller producers are securing prices of between 55 and 60 euros per MWh, sources informed.

However, certain RES project investors, especially from abroad, are expressing concerns over the amendment’s impact on market conditions. Some RES investors fear the revision’s resulting de-escalation in PPA price levels is jeopardizing the viability of their projects, while others are believed to even be considering exiting the Greek market.

 

IPTO requests special terms for swifter project development

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Power grid operator IPTO, seeking to counter delays faced by projects of public interest, has requested special terms from the energy ministry that would ensure swifter environmental permitting and expropriation procedures for grid projects as well as, wherever necessary, permission to use seashore, land and marine areas.

IPTO’s time frames for projects and Greece’s wider energy transition are being jeopardized by obstacles, primarily environmental permitting, forcing the operator to regularly update its delivery dates.

IPTO’s new ten-year development plant, covering 2025 to 2034, includes over 80 projects of various scale. Completion dates for many of these projects have been pushed back by one to two years.

The energy ministry’s leadership promised to examine IPTO’s request for special terms that could accelerate the progress of projects during a meeting between the two sides last week, sources informed.

Electrical grid project delays are becoming increasingly urgent as energy transition goals set for 2030 are just six years away and loftier renewable energy targets are being set.

 

Electricity suppliers’ windfall earnings estimated at €250m

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A finalized figure, expected imminently, on windfall earnings gained by electricity suppliers between August, 2022 and the end of 2023, the period during which energy-crisis measures were implemented, is projected to reach roughly 250 million euros, energypress sources have informed.

Virtually all windfall earnings will go towards partially covering amounts owed by municipal water supply and sewerage companies (DEYA) to power utility PPC.

RAAEY, the Regulatory Authority for Waste, Energy and Water, completed its windfall earnings calculations last month and has informed the energy ministry of its results.

Authorities still need to determine and factor in a normalization coefficient, which is expected to produce the aforementioned windfall earnings sum of approximately 250 million euros.

The normalization coefficient is designed to adjust megawatt-hours suppliers are charged monthly – based on their declarations submitted to the Energy Exchange – with actual megawatt-hours they have used.

Once this coefficient is finalized, the energy ministry will be able to validate the windfall earnings sum and proceed with its recovery from electricity suppliers.

 

Small-scale PVs a risk for grid stability, switch resets needed

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Energy-sector authorities have decided to move ahead with legislation requiring small-scale PV producers to make switch-system adjustments that would prevent their PVs from being disconnected from the distribution network as a result of voltage changes.

Small-scale PVs linked to the distribution network have reached a total capacity of roughly 7.5 GW, making them crucial for grid stability.

Power grid operator IPTO officials have underlined that the matter needs to be dealt with urgently.

At a meeting earlier this week, officials of the energy ministry, RAAEY, the Regulatory Authority for Waste, Energy and Water, power grid operator IPTO, and distribution network operator DEDDIE/HEDNO agreed to push ahead with the legislative revision.

Once implemented, it will require PV producers to have their system switches reset so that their PVs could tolerate voltage changes and not be disconnected from the distribution network.

According to IPTO, switch resetting is a simple procedure that can be performed in just a few minutes by technicians.

Ministry multi-bill filled with energy sector initiatives

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An energy ministry multi-bill to be forwarded for consultation imminently, possibly this Friday, following numerous revisions, includes at least twenty energy-sector provisions.

These include a new legal framework for boosting grid capacity; Apollo, a 20-year RES support program envisaged to offer solar-energy output to low-income households and local government organizations; a revision facilitating a new combined heat and power (CHP) plant planned by power utility PPC at a former lignite-fired facility in Kardia, northern Greece; an SVP for floating solar farms as a pilot project, beginning with 10 MW at sea and 8 MW in lakes and reservoirs; as well as an SVP for the development of offshore wind farms, an effort overseen by EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company.

The multi-bill also includes pending issues announced last year, such as a new electricity theft framework; and a revised universal electricity supply service – currently offered by the top five electricity suppliers, based on market share, as a last-resort service to non-punctual consumers who have been blacklisted by suppliers – to be limited to four months.

Ministry, RAAEY, IPTO discuss grid-connection cost coverage

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Officials of the energy ministry, RAAEY, the Regulatory Authority for Waste, Energy and Water, and power grid operator IPTO held a meeting yesterday to discuss details concerning a ministry plan requiring electricity producers (RES producers, gas-fueled power stations) to cover half the amount of their grid connection costs.

The focus of the meeting was on IPTO as distribution network-related amounts, which concern DEDDIE/HEDNO, the distribution network operator, are minimal.

RAAEY officials reiterated concerns that the energy ministry’s formula could force IPTO to significantly increase network usage surcharges.

However, according to the ministry, a formula requiring grid users to cover 50 percent of grid connection costs does require further examination as this approach may end up being regarded as incorporating state aid and could trigger complaints to the European Commission, which has not approved the plan.

The energy ministry will submit a related enquiry to KEMKE, the finance ministry’s Central State Aid Unit. Should this agency deem that the energy ministry’s formula represents a form of state aid, the ministry could inform Brussels for clarity on whether its plan breaches EU law.

Great Sea Interconnector drawing US, UAE fund interest

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Latest developments concerning the prospective Great Sea Interconnector, a 1.9 billion-euro project planned to link the power grids of Greece, Cyprus and Israel, indicate that investment interest is growing.

Officials of Greek power grid operator IPTO, promoting the project through an SPV, are expected to hold talks in Nicosia today with representatives of Abu Dhabi-based fund TAQA, one of the key players examining the prospect of becoming a stakeholder in the Great Sea Interconnector.

This UAE fund has been conducting due diligence for months. Today’s meeting between IPTO and TAQA officials in Cyprus suggests TAQA is seriously considering to join the Great Sea Interconnector consortium.

In addition, IPTO is preparing to forward the consortium’s terms to Israeli fund Aluma. The two sides had signed a Memorandum of Understanding last year in view of this fund’s entry into the project.

Without a doubt, growing interest for involvement in the Great Sea Interconnector expressed by US state fund Development Finance Corporation ranks as standout news.

Following up on talks with Greek deputy energy minister Alexandra Sdoukou in Washington last December, DFC’s leadership is believed to have expressed interest to participate in the project by either becoming a stakeholder with a 50 million-euro sum or by contributing to its financing.

Though DFC has not yet gone into details, US state participation in the project would align with American energy security interests in the eastern Mediterranean region and also boost the project’s geopolitical standing.

Suppliers pressured by partial recovery of public service sums

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Distribution network operator DEDDIE/HEDNO has, since April last year, been partially covering monthly public service compensation (YKO) reimbursments entitled by the country’s electricity suppliers, a shortfall putting their budgets under pressure.

This deficit is expected to widen further over the coming months without any specific solution yet in place.

Electricity suppliers are recovering an average of between 60 and 65 percent of amounts they should be receiving, energypress sources have informed.

The public service compensation special account’s revenues have decreased as a result of a drop in wholesale electricity prices and retail electricity tariffs, but outlays subsidizing electricity used by consumers on the country’s non-interconnected islands and by low-income households have remained steady.

The country’s public service compensation special account entered deficit territory for the first time in April last year, and, as a consequence, as foreseen by sector regulations, DEDDIE/HEDNO has, over the past 11 months, been asking electricity retailers to partially cover amounts they should be receiving for public services. This essentially means electricity suppliers are financing public services with their own capital.

Consequently, respective amounts owed to suppliers are adding up to tens of millions of euros, a significant additional burden on their finances.

The public service compensation special account ended 2023 with a deficit of roughly 300 million euros, a level expected to be repeated this year.

The energy ministry is promoting a plan to divide this deficit into three sections so that it may be dealt with over as many years, beginning this year until 2026. The state budget would take on the biggest share, according to this plan, being discussed by the energy and national economy and finance ministries.

 

Producers’ even share of grid-connection costs unchanged

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The energy ministry intends to keep unchanged a formula limiting power grid operator IPTO’s cost coverage of projects connecting electricity producers to the grid to 50 percent of the cost, ministry officials have told energypress.

In doing so, the ministry has backed IPTO following a challenge by RAAEY, the Regulatory Authority for Waste, Energy and Water, over the formula evenly splitting the cost of grid-connection projects between the operator and electricity producers.

IPTO contends the ministry has opted for a 50-50 formula as part of its effort to accelerate RES investments, increase the energy-mix share of renewables, and achieve national energy-transition targets.

The energy ministry plans to implement a stricter cost-control monitoring system for these projects, as they are carried out by the users, themselves. A formula designed to objectively determine the cost of grid-connection projects is expected to be introduced as a key tool in this monitoring plan.

In July, 2022, the government ratified legislation requiring electricity producers to cover 50 percent of the cost of their grid-connection projects.

This 50 percent cost-coverage requirement concerns renewable energy projects, development of transmission lines connecting thermal power plants, energy storage units, as well as high-voltage consumers.

Extra budget sum needed for special a/c’s widened deficit

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Lower natural gas price levels in recent times and the subsequent drop in wholesale electricity prices have reduced retail electricity tariffs but widened the deficit of the Public Service Compensation (YKO) special account, meaning additional state budget money will be needed to fill the gap.

This special account’s revenues have decreased, while outlays subsidizing electricity used by consumers on the country’s non-interconnected islands and by low-income households have remained steady.

Just weeks ago, energy ministry and finance ministry officials determined, during talks, that a sum of roughly 300 million euros would need to be drawn from the state budget to partially cover the Public Service Compensation (YKO) special account’s deficit. However, given latest conditions, an additional sum of at least 100 million euros in budget money will be needed.

The two ministries reached an initial agreement on the state-budget sum required in mid-February, but ensuing calculations following a significant drop in wholesale electricity prices revealed that the Public Service Compensation (YKO) special account’s deficit has widened further.

The additional state-budget sum of at least 100 million euros needed for this account may require officials to revise an earlier plan dividing its deficit, estimated at 700 million euros, into three parts for gradual coverage between this year and 2026.

HEDNO legally shielded in case of transformer-upgrade effects

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The energy ministry is preparing a legislative revision designed to offer distribution network operator DEDDIE/HEDNO legal protection against transformer short circuits.

The revision, likely to be attached to a forthcoming urban planning bill, will oblige medium-voltage consumers to take appropriate action protecting their installations from damage that could be caused by short-circuit level increases.

DEDDIE/HEDNO is currently staging preliminary studies concerning an upgrade of the electrical distribution network’s transformers.

The energy ministry’s legislative revision will ensure that the distribution network operator will be spared of any legal issues should this upgrade have adverse effects on installations of medium-voltage consumers located up to 3 km from respective substations.

The ministry’s legislative revision will require consumers to inspect their electrical installations ahead of the operator’s upgrade of transformers. Should any issues be identified during these checks, consumers will need to replace any necessary equipment at their expense.

According to sector officials, the revision is essentially a precautionary measure as electrical equipment currently being used is relatively modern – less than 20 years old – with specifications to withstand increased short-circuiting levels.

Transformers in areas where investors have expressed interest to install RES facilities will be given priority by the distribution network operator during its upgrade process.

 

Many energy-sector provisions in urban planning multi-bill

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The energy ministry has included a host of provisions that essentially constitute a mini energy bill into its urban planning multi-bill, which includes over 120 articles and is expected to be submitted to Parliament by the end of this week.

The series of energy-sector provisions, more than 20 in total according to energypress sources, include legislative revisions concerning floating PV systems; an SPV for offshore wind farm preliminary research; Apollo, an energy-cost offsetting program aiming to cover a significant proportion of farmers’ energy needs; and CHP units planned by power utility PPC.

The addition of extra energy-sector provisions ahead of the multi-bill’s delivery to Parliament has not been ruled out. They are expected to be divided into six categories.

The revisions will include terms enabling the installation of RES and CHP units – with or without integrated electricity storage batteries for self-consumption – on non-interconnected islands.

Also included are terms for the development of ten offshore solar farm pilot projects with capacities of between 0.5 MW and 1 MW for a total capacity of 10 MW. These will be exempted from competitive procedures for their operating contracts.

Based on the revisions, EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, will be able to establish subsidiaries and an SPV for commissioning wind and seabed studies at marine areas to be allocated for a first wave of offshore wind farms.

Greece, according to the National Energy and Climate Plan, aims to have begun developing 1.9 GW in offshore wind farms by 2030.

 

 

Net-billing seen replacing net-metering following EC reaction

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The energy ministry is believed to be considering to abolish net-metering for self-production and replace it with a net-billing formula following objections raised by the European Commission, promoting the latter approach as most appropriate for self-consumption.

Greece’s ongoing PV support program subsidizes further penetration of net-metering systems in the domestic sector.

The energy ministry, currently examining market details in order to decide on how to react to the Commission’s criticism of the country’s support plan, is likely to abolish net-metering imminently and instead extend net-billing to domestic self-consumption systems with a production capacity of up to 10 KW, as well as commercial and agricultural PVs with capacities of up to 100 KW.

Should this direction be taken, the ongoing PV Stegi support program for roof-mounted PVs will soon be discontinued, March 31 believed to be a date under consideration. It would be followed by the announcement of a corresponding support program based on a net-billing formula.

Both net-metering and net-billing compensate solar-system owners for transferring electricity to the grid when their panels overproduce, but the ways the two systems compensate differs.

Net metering credits equal the retail electricity rate paid by customers for electricity. On the contrary, net billing credits equal the wholesale rate electricity companies pay for electricity.

Brussels has taken the side of protesting suppliers, including in Greece, as, under the net-metering formula, energy offsetting is essentially being conducted at their expense given that excess generation is injected into the grid at nighttime hours of low wholesale prices, well below higher energy prices in the evening hours, when customers meet most their energy needs.

Extra subsidized standalone batteries at 500-700 MW

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Battery-based RES facilities (both standalone units and behind-the-meter projects) will total 3,100 MW, greatly contributing to the country’s energy-storage targets, according to a draft of the revised National Energy and Climate Plan.

The energy-storage support package will result in a portfolio of standalone batteries with an overall capacity of as much as 1,500 to 1,700 MW, deputy energy minister Alexandra Sdoukou told a recent event staged by SEF, the Hellenic Association of Photovoltaic Companies (HELAPCO).

These levels represent an additional capacity of between 500 and 700 MW in standalone batteries eligible for subsidy support as a result of a reduction in investment support to be offered, it has been estimated.

Energy-storage projects representing roughly 700 MW have qualified for subsidy support through two auctions.

As for the portfolio’s allocation, the energy ministry is considering dividing it into two-hour and four-hour batteries, in place of an initial plan that had envisaged 700 MW of two-hour batteries and 300 MW of four-hour batteries.

Visual disturbance solution sought for Crete wind farms

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EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, is seeking a technical solution that would minimize the visual disturbance of offshore wind farms off Elounda, northeastern Crete, following strong local reaction against the development of offshore wind farms.

The energy ministry is determined to push ahead with the National Offshore Wind Farm Development Plan as 90 percent of locations proposed have not raised objections. A total of ten areas have been included in an initial plan for offshore wind farm development.

The energy ministry is well aware of the fact that if it starts dropping areas it would be sending a wrong message to the market and investors, who, for some time now, have been keeping a close watch on developments.

The energy ministry intends to soon – possibly this week – engage in talks with local communities and especially in Crete, to make clear that revisions to plans will only be made if objections are justifiable.

Three-stage plan for public service account deficit

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The public service compensation (YKO) special account’s deficit, estimated to have reached roughly 700 million euros, will be dealt with over three stages from this year until 2026, the state budget taking on the biggest share, according to a formula being discussed by the energy and national economy and finance ministries.

The plan’s first of three stages concerns an amount of about 250 million euros in debt owed to suppliers, which ministerial officials will seek to have settled this year.

If all goes according to plan, members of ESPEN, the Greek Energy Suppliers Association, should start receiving, this year, payments for public service compensation-related debt accumulated between April and November, 2023.

A second stage of the plan concerns roughly 400 million euros and will be included in the 2025 state budget.

The third stage, worth roughly 100 million euros, is planned to be offset by a surplus anticipated in 2026 as a result of the Crete-Athens grid interconnection, a project expected to be completed in 2026. It promises to greatly reduce public service compensation costs.

The overall plan is expected to turn around the public service compensation (YKO) special account’s deficit for a surplus of between 100 and 150 million euros in two years’ time.