Revisions needed by June for next installment of RRF funds

Recovery and Resilience Facility milestones set by the European Commission for Greece this year were the focus of discussions between deputy energy minister Alexandra Sdoukou and Brussels officials at a meeting in the Greek capital as the government prepares to submit its application for a fourth installment of RRF funds.

The European Commission’s RRF task force has held a series of meetings in Athens over the past few days with all ministries involved.

Greece’s list of projects seeking financial support through REPowerEU, bolstering the preceding RRF initiative, is worth a total of 795 million euros and includes Exikonomo, a 560 million-euro subsidy program for energy-efficiency upgrades of buildings; a 75 million-euro support plan for hydrogen and biomethane development; a further 75 million euros for a CCS supply chain; and 85 million euros for energy storage systems.

However, revisions, part of the milestones set for the second quarter of this year, will need to be finalized and ratified in Greek Parliament by June before these sums can be extended.

The RRF, a Brussels support initiative introduced during the pandemic, has now reached its midway mark and is scheduled to be completed by August, 2026. Greece is expected to submit its application for a fourth installment of RRF funds in April.

Extra subsidized standalone batteries at 500-700 MW

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.

Bidders take low profit-margin risk in second storage auction

Bidders in a second auction for standalone battery operating support have once again settled for low profit margins, taking significant risks to secure an advantage in the country’s emerging energy storage market, Aurora Energy Research company has noted in an analysis covering the procedure.

Bids submitted to the first auction, held last summer, were equally low. Clearly, participants are prepared to take risks to establish their places in the energy storage market as early movers, even if the viability of their investments is put at risk.

With a price ceiling of 115,000 euros per MW for a year, the average winning bid was below 50,000 euros per MW for a year, indicating fierce competition.

The current maturity of energy storage technology results in CAPEX figures of around 600,000 euros per MW, leading to IRR levels marginally below 5 percent.

Basic market assumptions regarding the IRR rating in the standalone battery category define as viable an investment with an IRR of at least 10 percent, equally viable yet with relatively low returns if ranging between 5 and 10 percent, and unsustainable below 5 percent.

The second auction attracted an estimated 55 bids representing a total capacity of 1,668 MW, of which 48 were deemed valid.

Last summer’s first auction attracted a total of 93 bids representing a total capacity of 3.5 GW, with 90 of these bids deemed valid and officially accepted.

Ministry determined to ensure PPAs for industrial consumers

The energy ministry appears determined to ensure renewable-energy PPAs for industry and intends to incorporate all required measures into an overall plan being developed for the liberalization of grid space.

However, the ministry has a conundrum to resolve as it must combine increased grid-injection restrictions for RES units obtaining connection terms from now on with the need to keep prices low for PPAs involving RES producers and industry.

These increased grid-injection restrictions for RES units come as a challenge for renewable-energy PPAs already established, among them agreements between power utility PPC with metal processing company Viohalco and cement producer Titan.

Besides modifying RES output, these restrictions also affect data used by parties involved in PPAs to reach agreements on electricity purchase prices.

To offset negative impact, the ministry is considering to subsidize behind-the-meter battery additions to projects. This would enable RES producers to meet the energy needs of industries at latter dates should PV production exceed upper limits.

A subsidy-support solution would require the European Commission’s approval as it is considered a form of state aid.

 

PVs of 300-500 MW needed for farming PPA energy-cost cuts

Development of a solar-energy portfolio between 300 and 500 MW will be required so that farmers participating in cooperatives and farmers active in contract farming may establish PPAs offering electricity prices at least 30 percent lower than current levels over a ten-year period, the energy ministry has estimated.

Photovoltaic systems to be developed for this purpose will include batteries, thereby enabling part of their production to cover energy needs during nighttime hours for irrigation and other needs.

Sizeable state subsidies for integration of energy-storage systems into PVs are expected, ministry sources informed.

The extent of this subsidy support will be determined through a study to be conducted by the ministry in order to calculate the total energy-storage capacity required to secure electricity-cost cuts of at least 30 percent for farmers, the sourced noted.

According to an initial estimate, battery installations will need to represent roughly one-third of the total capacity of solar farms if this electricity-savings target is to be achieved.

Ministry pushes for energy-storage project progress

Deputy energy minister Alexandra Sdoukou has made clear her determination to remove obstacles that could delay investments concerning the installation of standalone batteries by companies that submitted successful bids to a first energy-storage auction.

Swift development of energy-storage projects is seen as crucial by the energy ministry so that the need for RES output cuts, performed to prevent grid overloading, may be restrained.

Earlier in the week, the deputy minister chaired a meeting involving various sector officials for an update on the progress of standalone battery projects, equipment orders, plans and timetables.

Aristotelis Aivaliotis, the energy ministry’s General Secretary of Energy and Natural Resources, officials from power grid operator IPTO and RES market operator DAPEEP, as well as the heads of renewable energy and storage projects all took part in the meeting.

Sdoukou appeared determined to speed up procedures concerning the issuance of connection terms for energy storage projects and to also establish a system for monitoring their progress. Investors were asked to send monthly reports on the progress of projects.

At the meeting, IPTO ensured that all RES projects with standalone batteries will have received connection terms by the end of February. Also, the deputy energy minister asked DAPEEP, the RES market operator, to prepare operational contract details.

A total of twelve energy-storage projects developed by seven companies secured the first auction’s entire capacity of 411 MW at an average price, for a year, of 49,748 euros per MW.

Helleniq Energy and Intra Energy (Intrakat) submitted successful bids for three projects each, PPC Renewables secured operational support for two projects, while Aenaos (Mytilineos), Energiaki Techniki, Energy Bank and the Agapi Ilios energy community submitted successful bids for one project apiece.

Stricter RES project timeline considered to free up capacity

The energy ministry is considering to introduce stricter timelines for the completion of RES projects possessing connection terms, the initiative’s aim being to free up grid capacity.

As part of the effort, the energy ministry has asked for power grid operator IPTO’s opinion on whether existing RES project development timelines should be made tighter in order to eliminate projects that have stalled for a variety of reasons.

The ministry believes that a proportion of grid space that would become available through the implementation of a tighter development schedule for RES projects should be allocated to the distribution network for the development of small-scale photovoltaics. Priority would be given to self-consumption applications.

Deputy energy minister Alexandra Sdoukou presented the fundamentals of the overall plan at a recent event staged by SEF, the Hellenic Association of Photovoltaic Companies. Releasing grid space and distributing this capacity to new projects are the plan’s two key aspects, she explained.

Greater grid-injection restrictions for renewables and the addition of batteries to RES projects with connection terms are paramount in the effort to broaden available capacity, Sdoukou reiterated.

RES project battery-addition feasibility sought by investors

Investors generally view battery additions to RES projects as beneficial as, despite ongoing RES sector ambiguities, these upgrades ensure greater IRR figures, market officials have told energypress.

Market players are now working on taking crucial sustainability-related decisions concerning battery additions to RES projects ahead of forthcoming auctions and as a result of increased grid-injection limits being imposed in the market.

Investors, in collaboration with consulting companies, are engaging in calculations to assess the revenues resulting from integrating batteries into RES projects. This process includes identifying various factors that impact revenues and determining the extent of their influence.

RES investors are also making an effort to establish more specific information on variable costs that may arise, even though the sector’s regulatory framework is not yet entirely clear and concrete.

In conducting their calculations, investors are assuming that RES units will, from now onwards, operate under conditions of greater grid-injection restrictions and production cuts.

Standalone battery interest surges to 12 GW, data shows

Investment interest in standalone batteries has surged, as highlighted by applications submitted by investors, to power grid operator IPTO, seeking grid access for roughly 230 standalone battery projects representing 11,970 MW, or just under 12 GW.

This capacity greatly exceeds energy-storage objectives included in a revised 2030 National Energy and Climate Plan that has been forwarded to the European Commission for approval.

According to the revised NECP, Greece’s energy-storage target for 2030 is not expected to exceed 3.1 GW. This target includes standalone batteries as well as batteries linked to RES units.

Projects for which investors are currently seeking connection terms even suffice for the achievement of energy-storage objectives at the end of the next decade.

This surge in energy-storage interest is expected to continue, further extending the waiting list of applicants. As has already become clear, a large proportion of these project applications will not be materialized.

A total capacity of between 1,500 and 1,700 MW for standalone batteries will be offered through three auctions, the second of which is now in progress. RAAEY, the Regulatory Authority for Waste, Energy and Water, intends to complete its appraisal of offers on February 8 before announcing a list of successful bids on February 15.

 

Mytilineos now an established player in UK energy market

Greek-based industrial conglomerate Mytilineos has developed into an established player in the UK energy market’s renewable energy sector and, more recently, the domains of conventional electricity production and grid projects, since entering this market in 2014.

The company, active in mettalurgy, energy and EPC, has just held a special event in London to mark its tenth anniversary of business activity in the UK as well as its recent signing of a one billion-euro contact for a subsea grid interconnection linking England and Scotland. Numerous guests from the business and financial sector, plus partners, attended the event.

Mytilineos has just inaugurated its new premises in central London, to serve as a springboard for the coming years and new projects.

In the UK, Mytilineos has taken on 82 projects worth a total of 2.5 billion euros in renewable energy, energy storage, electricity production and grid interconnections.

In the RES sector, Mytilineos maintains a UK solar energy portfolio with a 1.25-GW capacity, its 373-MW Cleve Hill project being the standout facility as the country’s biggest licensed solar park. In addition, Mytilineos owns 650 MW in RES facilities at various stages of development.

As for energy storage, Mytilineos ranks as one of the UK’s biggest players with projects totaling 1.1 GWh, a 30 percent share of the country’s market.

In addition, Mytilineos has undertaken complex and demanding thermal energy projects and is currently developing four open-cycle gas-fired power plants, each possessing a capacity of 299 MW.

Mytilineos has also taken on procurement and installation of a modern capacitor for RWE Generation UK, one of the UK’s leading electricity companies. This project represents part of the National Grid Stability Pathfinder Program covering England and Wales.

 

RES auction for PVs with batteries in March

An inaugural RES auction offering 200 MW for photovoltaics with batteries, scheduled to take place March, will require successful bidders to accept greater grid-injection limits.

The starting price for this auction, still unknown, will be set at a higher level than usual as the cost of incorporating batteries to photovoltaics will be factored in.

It will serve as a pilot procedure that will help shape new auctions to be established by the energy ministry for RES installations.

Current RES auction terms and conditions are expected to soon undergo major changes, which, as a result, will include limiting participation to bidders committing to electrify their projects by specific dates.

The energy ministry plans to announced the March auction in February. Besides its starting price, to be set by a special committee established by the ministry to oversee matters concerning RES penetration, other auction details that remain pending include battery-type and battery-duration standards.

It is already considered certain that investors behind older projects possessing connection terms will need to commit to accepting higher grid-injection restrictions than the current 28 percent level, set in 2022. The aforementioned committee will also be setting these new rates, possibly at levels of between 40 and 50 percent.

Measures freeing grid space headed for Parliament

The energy ministry, seeking to encourage further RES investment, plans to soon submit to Parliament a comprehensive package of measures designed to free electrical grid space and make available capacity for new RES units.

These interventions will enable power grid operator IPTO to increase the number of new connection terms granted to RES investors.

The ministry’s package of measures, which could be submitted to Parliament before January is out, are expected to include initiatives such as greater grid-injection restrictions as well as terms promoting battery installations at RES facilities without batteries.

The measures will be implemented at a latter stage, as part of a second wave of efforts, by a project management group established by the ministry. This group has been tasked with finding solutions for greater RES penetration and optimal management of the grid’s limited capacity.

The group will need to address and fine-tune details that determine the extent of grid-injection restrictions; specify which RES units will be subjected to these new restrictions; and also inform which RES units may install batteries and under what terms.

The group’s effort will be aligned with the National Energy and Climate Plan’s goals set for 2030.

 

 

Mytilineos secures €400m EIB loan for swifter RES growth

Mytilineos Energy & Metals has secured 400 million euros in European Investment Bank (EIB) funding for the purpose of accelerating renewable energy production across Greece and other EU member states.

The Mytilineos group has shaped a strategy to develop, by 2027, a portfolio of solar energy projects and battery energy storage systems (BESS) enabling additional production capacity of approximately 2.6 GW.

The investment’s overall cost is estimated at 2.5 billion euros. All projects will be developed within the EU.

The EIB financing, linked to the EIB’s support for new investments in convergence regions where per capita income is lower than the EU average, confirms the bank’s commitment to equitable growth and convergence of living standards in the EU.

EIB Managing Director and Head of Operations Jean-Christophe Laloux and Hristos Gavalas, Chief Treasury & IR Officer and Executive Board Member at Mytilineos, signed a ten-year loan agreement in Athens on December 21.

This new financing agreement stems from an EIB support package for RepowerEU, the EU’s ambitious and lucrative plan aiming to reduce dependence on fossil fuel imports, accelerate the green transition, and help Europe achieve zero-carbon emissions by 2050.

Competition remains strong for second storage auction

A total of 55 applications representing standalone batteries with 1,668 MW in capacity have been submitted by RES investors to a second auction offering investment and operational support for standalone batteries, a solid turnout ensuring the strong competition registered at the first auction will be maintained.

Investment and operational support will be offered to projects totaling 288.21 MW, meaning applications for participation have oversubscribed this capacity by 5.7 times.

The field of contestants will be finalized at noon today, when a deadline for letters of guarantee expected from participants is set to expire.

According to sources, most participants have already submitted their letters of guarantee with applications. As a result, the number of participants is not expected to diminish.

All participants face 100-MW capacity limit totals for projects submitted to the first two auctions. Helleniq Energy, power utility PPC and Intrakat already exhausted this limit through the first auction and, as a result, cannot participate in the follow-up procedure.

Virtually all other major energy groups with a market presence in Greece have applied to  participate in the second auction, sources informed. These include, TERNA Energy, Mytilineos, the Copelouzos group, Elpedison, MORE, Enel, EDF, EDPR, BayWa, KiEFER and Faria.

A total of 12 projects were successful in the first auction, securing guaranteed revenues of between 34,000 and 64,100 euros per MWh for a year. A starting price of 115,000 euros per MWh, for a year, has been set for the second auction. Bidding is not expected to drop below 45,000 euros per MWh, for a year, market officials have projected.

 

Tumbling battery costs boost gov’t energy storage plans

A steep drop in the price of lithium, the key component for batteries, down 30 percent compared to last month and 80 percent year-on-year, promises to boost the government’s ability to free up more grid capacity through greater installation of energy-storage units.

The plunge in the cost of battery production, a sector dominated by China with a global market share of over 50 percent, will certainly enhance a new RES plan being prepared by the Greek energy ministry. Its details are expected to be announced within the first two months of 2024.

Energy minister Thodoris Skylakakis will be able to plan more ambitiously for the development of roof-mounted solar panels, solar farms and incorporation of batteries behind the meter to such projects.

The new RES plan will include, as a key feature, a section promoting the availability of low-cost renewable energy to industry through bilateral contracts.

Lithium prices have fallen to 97,000 yuan per ton, down from 300,000 yuan in July and 500,000 yuan in January. The price of a lithium battery has dropped to an all-time low, close to 139 US dollars per kWh, according to a BloombergNEF (BNEF) survey published in November.

Several months ago, the Greek energy ministry, driven by the continual drop in battery prices, halved its energy-storage investment support offered through auction by RAAEY, the Regulatory Authority for Energy, Environment, and Water, to 100,000 euros per MW at a second auction. Support of 200,000 euros per MW had been offered at a first auction.

This reduced requirement for state investment support will enable the ministry to stage energy-storage auctions on a more regular basis, enhancing RES penetration around the country.

 

Local solar energy project on EU Innovation Fund support list

An innovative solar energy project being developed in Greece by German-based Protarget is among seventeen small-scale pilot projects selected for funding support through the European Commission’s Innovation Fund.

The project, named Sunbrewed, concerns the development of a customized solar thermal system in combination with a steam accumulator at a brewery, the initiative’s aim being to fully cover the facility’s fluctuating energy needs for production and preserve the availability, at all times, of thermal energy through storage technology.

In addition, as stated in the project’s analysis, renewable and decarbonized heat generated by the system promises to enable a reduction in heavy fuel oil consumption and CO2 emissions.

The project is one of seven selected for the Innovation Fund’s renewable energy category. These seven projects will receive an overall sum of 24.4 million euros from the Innovation Fund, supporting a total of 17 projects with provisions totaling 65 million euros.

Each of the 17 projects is expected to receive funding ranging from 1.6 million to 4.5 million euros, funds stemming from the EU Emission Trading System. Exact amounts to be awarded to each project will be established once the selection procedure has been finalized.

The selected projects cover a wide range of sectors with a particular focus on the manufacture of materials and equipment related to renewable energy, glass, ceramics and building materials. The list also includes projects in the domains of energy storage, iron, steel, refineries, chemicals, cement, lime and hydrogen.

This financial support, the European Commission has noted, will help companies in Europe, including small-scale enterprises, bring innovative technologies to market for energy-intensive industries, renewable energy and energy storage.

Protarget is active globally in the field of innovation with a range of applications concerning industrial-scale solar thermal technology.

Concerns over Greek auction model for standalone batteries

The Greek auction model for standalone batteries is continuing to raise concerns within the business community ahead of a forthcoming second auction.

Market skepticism is focused on the possibility of a recurrence of low bids at levels that would raise questions about the viability of projects and the very nature of the Greek model, which features aid for both longer-term capital expenditure and operating expenses.

The main debate, both in Greece and beyond, about the Greek auction model for standalone batteries is focused on this provision of investment and operational support for projects.

Critics of the Greek model contend that aid for operating expenses is not in line with free-market logic and inevitably leads to market distortion.

A key concern for the Greek auction model, given low bids submitted in the first auction, is whether projects can be viable under the current costs of storage and battery technology, its critics are pointing out.

Many market players have expressed preference for the Spanish model, whose aid is limited to capital expenditure and project revenues are generated purely through market participation, as a more appropriate model.

This offers projects incentive to fully integrate into the market and optimize their revenues, market players have noted.

As a result, projects would be developed faster and also have better viability rates, supporters of the Spanish model note.

RES cuts more cost-efficient than battery installations

RES cuts, to prevent grid overloads, appear to be the most competitive option available to small and medium-sized photovoltaics given the current cost of installing batteries behind the meter.

In the majority of cases, battery systems capable of providing stored energy to the grid over two-hour periods end up doubling the CAPEX cost of RES projects.

This essentially means that, at an operational level, without any state support for battery costs, tariffs would need to be doubled, especially in the cases of non-vertically integrated players, as was recently pointed out by Stelios Loumakis, president of SPEF, the Hellenic Association of Photovoltaic Energy Producers, during a presentation.

On the other hand, cutting RES grid input by 50 percent would result in annual PV park production losses of 20 percent, which could be compensated through a 25 percent tariff increase, a SPEF study showed, making this a more cost-efficient solution, the association’s president noted.

RES cuts, the SPF chief stressed, do not constitute a long-term viable solution as they restrict renewable energy supply, a pivotal factor if green energy is to further penetrate the system.

 

 

Business PV and battery support program details soon

The energy ministry is finalizing the details of a support program for business-sector solar panel and battery installations, which are expected to be officially announced soon, most likely within the next few days, and definitely within the current month, energypress sources have informed.

The ministry had made an initial announcement on this PV support program for businesses months ago, but has yet to deliver its details.

Businesses will need to incorporate batteries into their PV installations in order to be eligible for the support program, the sources informed. Subsidies will be offered for both PVs and batteries through this support program, but the subsidy rate for batteries will be considerably greater, the sources added.

In the lead-up, ministry officials had intended to also offer subsidies to PVs without batteries, but this prospect is now off the table.

The support program, budgeted at 160 million euros, a sum to stem from the Recovery and Resilience Facility (RRF), will be implemented by TAIPED, the Greek privatization fund.

 

First support auction for PVs with batteries by February

The energy ministry is working to complete plans by the end of this year for a first auction, no later than February, 2024, offering investment and operational support to mature-level solar energy projects possessing connection terms and planned to incorporate batteries, energypress sources have informed.

According to the sources, the upcoming first auction will offer investors support for a total capacity of between 200 and 300 MW, as part of the ministry’s wider plan to aid a 2-GW portfolio of solar energy farms with batteries behind the meter.

The ministry’s objective is to preserve as much grid capacity as possible. The addition of batteries to solar energy projects, even if small-sized with capacity to store just one hour’s worth of energy, offers a 50 percent reduction in grid capacity occupied by projects.

A considerable number of projects are expected to take part in the series of support auctions, power grid operator IPTO’s development program data for 2024 to 2033, published last June, has indicated.

According to this data, 10,590 MW of photovoltaics have connection terms for the transmission system and 1,141 MW for the distribution network.

As previously reported by energypress, RES projects taking part in these auctions will face strict electrification deadlines, the objective being to limit participation to truly feasible RES projects with batteries.

As a result, IPTO will know when grid capacity will be released by photovoltaics and be in a position to offer investors precise information on connection-term delivery.

Revised NECP sets more ambitious targets for 2030

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

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

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

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

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

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

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

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

Second auction for battery support announced next week

A second auction offering state investment support for standalone battery installations at RES facilities is set to be announced following the imminent publication in the government gazette of a joint ministerial decision halving the inaugural auction’s support level of 200,000 euros per MW to 100,000 euros per MW.

The board at RAAEY, the Regulatory Authority for Waste, Energy and Water, is expected to approve this support-level reduction tomorrow, paving the way for its publication in the government gazette, which will be followed by the announcement of the second auction, probably next week.

Once the second auction is officially announced, interested parties will be given four weeks to submit applications, down from the inaugural session’s six weeks, energypress sources informed. Given the schedule being shaped, the second auction’s deadline should expire within the second half of December.

A list of successful applicants is expected to be finalized towards the end of January, after RAAEY has appraised offers submitted. A temporary list will initially be announced, giving any dissatisfied applicants several days to raise objections, before it is finalized.

The second auction’s halved state support level of 100,000 euros per MW will also result in a reduction of fees associated with letters of guarantee, down to 150,000 euros per MW from 200,000 euros per MW, the first auction’s level.

The total capacity to be offered at the second auction will remain unchanged at 300 MW.

According to the joint ministerial decision, a third auction offering state investment support for standalone battery installations at RES facilities will be staged during the first quarter of 2024.

European energy storage startups on rise despite costs

Energy storage, a key factor in the effort for a green, carbon-free transition, entails high cost as most current storage solutions depend on lithium-ion batteries, which are powerful but relatively expensive.

This high cost, as pointed out by the Financial Times’ sifted.eu, has restricted the ambitions of some companies, but others are putting energy-storage technology to good use.

For example, Polarium – a startup in Sweden’s booming battery industry – provides lithium-ion backup power to the telecom and commercial sectors. The company notes its ability to efficiently convert DC power generated by solar panels into AC power required by most devices is its unique selling point.

Dozens of companies are looking beyond lithium, according to the sifted.eu report. This trend has increased since last year’s sharp rise in raw materials for lithium.

Investment in new batteries in Europe is forecast to reach 30 billion euros by 2030 as the continent prepares for a renewable energy future.

The search for a stable, cost-effective lithium alternative is widespread. Startups including France’s Tiamat are making salt-based batteries. Sodium, next to lithium on the periodic table of the elements, is not only similar, but more abundant and cheaper.

On the other hand, the energy density of sodium is relatively low, which means that batteries using salt need to be larger and heavier than their lithium counterparts.

Europe faces tough opposition in the energy storage sector. China dominates lithium-ion production and is making efforts to dominate the sodium-ion supply chain.

US battery manufacturers, meanwhile, can receive significant tax credits – up to 30 percent of system installation costs, courtesy of the Inflation Reduction Act (IRA) supporting climate investment. Manufacturers can also benefit from a 20 percent bonus available if certain requirements are met, such as the use of household components.

Regulatory stability is critical to ensure the scaling up of capital-intensive energy storage projects. However, vague definitions of energy storage have led to some confusion about whether it is a consumer or producer of electricity. And this often leads to double taxation.

On the positive side, this sector offers tremendous potential and is attracting investors. Venture Capital funding in European energy storage is up 7 percent in 2023 compared to 2022.

 

 

Investment interest soars for RES units with batteries

Investment interest has soared for renewable energy projects equipped with storage units. A total of 81 producer-certificate applications concerning such projects and representing a total capacity of 2.44 GW were submitted to an October cycle, held by RAAEY, the Regulatory Authority for Waste, Energy and Water.

Solar energy projects dominated the October cycle, numbering 48 in total. Wind energy projects followed, totaling 29.

If these October applications are approved, RAAEY’s registry of RES projects will increase to represent a total capacity of 7.73 GW.

Without a doubt, investors are being driven by an energy ministry announcement offering priority status to RES investments with batteries as a means of addressing a shortage in grid capacity.

RES output cuts, seen rising to protect the grid from overloading, is another key factor prompting investors to equip their projects with storage units.

Business plans for renewables with batteries are excessive and completely disproportionate to the needs of the grid, sector officials have noted.

Incentives, through auction, planned for PVs with batteries

The energy ministry is considering to offer incentives to PV facility investors for behind-the-meter battery installations as a means of freeing up grid capacity, a solution that would enable power grid operator IPTO to resume offering new connection terms, currently on hold as a result of grid-capacity restraints.

According to the ministry’s plan, incentives would be offered in the form of tariffs secured by PV producers through auction.

Essentially, these auctions would only be open to PV projects possessing finalized grid connection term offers and equipped with batteries. The auctions would offer higher tariffs taking into account the increase in investment cost.

At present, RES projects under development and already possessing finalized grid-connection term offers represent a total capacity of 15 GW. If a portion of these projects are equipped with batteries behind the meter, then a significant amount of grid capacity could be saved to facilitate new green-energy investments.

 

 

 

Registration underway for Renewable & Storage Forum, an energypress event

The registration process for the Renewable & Storage Forum, an energypress event that ranks as the country’s biggest and most influential conference on renewables and energy storage, is now underway (https://renewablestorageforum.gr).

This year’s event, taking place at the grand ballroom of the InterContinental Hotel in Athens, is scheduled for November 2 and 3. 

The event comes at a time when the renewable energy and storage sector faces an increasingly complex and demanding institutional and regulatory environment, rapid technological developments, as well as heightened investment interest.

Besides the main agenda, the conference will also offer a two-day supplementary session, over a number of hours, to be held concurrently at an adjacent room, where specialized technical and corporate presentations will be held.

The conference will be livestreamed, in Greek and English, through the energypress websites, linked websites, as well as social media.

For further information, including the event’s Sponsorship Program, contact Maria Delli, 2108217446, mariadelli@energypress.gr 

 

Standalone battery investment support halved for 2nd auction

State investment support to be offered at a second of three auctions supporting standalone batteries, a date for which remains pending, has been halved to 100,000 euros per MW, compared to the inaugural auction’s level of 200,000 euros per MW, reliable sources have informed.

RAAEY, the Regulatory Authority for Waste, Energy and Water, has yet to announce the second auction as the energy ministry still needs to sign a ministerial decision specifying the revised state support level.

Should the pending ministerial decision be issued early next week and the authority immediately follows up by announcing the next auction, its bidding deadline can be expected to be set for late November. This effectively means the list of successful bidders will not be finalized until early next year, once RAAEY has reviewed all bids.

The reduction of state investment support for standalone batteries is intended to facilitate an expanded portfolio of projects linked to the support program. According to an initial plan, standalone battery investment support is planned to be offered for a total capacity of 1,000 MW, over three auctions.

Standalone batteries totaling 400 MW secured investment support at the first auction, while an initial plan to offer support for a further 300 MW through the second auction is expected to remain unchanged.

Any extra capacity that would exceed the initial plan for a total of 1,000 MW is expected to be made available at the third auction, intended to cater to projects situated at ex-lignite areas.

 

Combining PVs with batteries essential, AKUO boss stresses

Combining PV facilities with batteries needs to be made mandatory, while an upgrade of the country’s grid and interconnections is crucial for the energy transition, Eric Scotto, president of French renewable energy giant AKUO has stressed in an interview with energypress.

Backed by decades of experience in agrivoltaism, combining solar energy production and agricultural development of territories, AKUO, the company president noted, aims to establish Greece as Europe’s leader in this sector.

The French energy group’s extensive experience in agrivoltaism will enable the company to offer solutions that fit the needs and challenges of the Greek landscape, Scotto pointed out.

He saluted a recent decision by the Greek energy ministry to promote hybrid RES systems combining PVs with energy storage, noting that, otherwise, the problem of RES output cuts, carried out to avoid grid overloading, could not be countered.

Scotto, in the enegypress interview, also underlined the importance of sufficient grid interconnections, especially in the case of Greece, as they represent a key to further growth in green energy output, which, inevitably, will greatly exceed domestic needs.

Emphasis needs to be placed on green-energy PPAs between companies and RES producers, Scotto noted, while also expressing confidence that AKUO will reach its goals in Greece through prospective projects totaling 1.5 GW.

AKUO was founded in 2007 and has grown to develop PV, wind energy and storage projects in approximately 30 countries.

RAAEY deciding on terms of second storage auction

The board at RAAEY, the Regulatory Authority for Waste, Energy and Water, is expected to meet this week to finalize terms for the country’s second auction for standalone batteries.

RAAEY will announce the finalized terms for the second auction once the energy ministry has issued a ministerial decision.

Though a final decision still needs to be reached on the starting price to be offered at this next auction, a level of just over 100,000 euros per MW, for a year, well below the starting price of 200,000 euros per MW, for a year, offered to successful bidders in the first auction, staged in August, appears likeliest. Bidding competition at the first auction was intense.

Questions still remain about the total storage capacity to be offered to investors at the next session. This offer could depend on the extent of the remuneration cut, even though some RAAEY sources have noted the capacity to be offered could well remain at about 300 MW, as originally planned.

The energy ministry is aiming for approximately 1,700 MW in installed standalone batteries by 2027.

A total of 12 RES projects with storage units, for which successful bids were submitted in the first auction, secured tariffs averaging 115,000 euros per MW, for a year, or 57 percent below the starting price.

 

Significant cut in energy storage tariffs at next auction

The energy ministry has decided to significantly cut tariffs to be offered at a second auction for standalone batteries, prompted, in its decision, by investors’ lofty expected revenues, as reflected by bidding at a first auction in August.

Tariffs for RES projects with standalone batteries are expected to drop well below the starting price of 200,000 euros per MW, for a year, offered to successful bidders in the first auction.

According to sources, levels may even be halved, the likeliest level expected to range between 100,000 and 120,000 euros per MW.

The follow-up auction will be held with the aim of expanding the country’s supported energy storage portfolio, initially planned to reach 1,000 MW.

The tariff cut, whose extent is expected to be clarified this week, through a ministerial decision, will enable officials to offer a greater capacity through the second auction.

This additional capacity, expected to exceed 300 MW, promises to pave the way towards an installed energy storage total capacity of more than the 1,000 MW that had been originally planned, through three auctions.

Besides the tariff starting price to be offered to RES projects with standalone batteries at the next auction, the ministerial decision will also offer financial details on letters of guarantee required of successful bidders.

RAAEY, the Regulatory Authority for Waste, Energy and Water, will announce the next auction once the ministerial decision has been issued.

A total of 12 RES projects with storage units for which successful bids were submitted in the first auction, secured tariffs averaging 115,000 euros per MW, for a year, or 57 percent below the starting price.