energy sufficiency

Crete-Athens grid link section sabotaged, IPTO reports

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Equipment for the Crete-Athens grid interconnection, Greece’s biggest and most complex electrical transmission line, has been sabotaged by intruders at an underground cable section just north of Crete’s northern motorway, power grid operator IPTO, whose Ariadne Interconnection subsidiary is developing the project, has reported.

The objective of the intrusion was to disrupt the project’s development, not steal equipment, IPTO believes.

The project’s developer has already filed a complaint with local police and is cooperating with authorities to identify the perpetrators. The project’s point of intrusion and equipment will now be guarded, police have informed.

IPTO is also coordinating with Crete’s regional and municipal authorities to address the situation.

At present, the contractor is assessing the extent of damages caused by perpetrators and how they could impact the timeline of the project’s delivery, crucial for Crete’s energy sufficiency.

The project promises to end the island’s energy isolation and significantly reduce the cost of producing energy on Crete.

IPTO’s Ariadne Interconnection subsidiary plans to complete work on the Crete-Athens grid interconnection by the end of this year and commercially launch the project within 2025.

A smaller-scale electrical grid interconnection linking Crete with the Peloponnese was launched in the summer of 2021.

RAAEY energy sufficiency plan for non-interconnected islands

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The energy ministry is close to finalizing a plan to resolve energy sufficiency issues of Greece’s non-interconnected islands following a series of meetings and exchange of opinions with power utility PPC, power grid operator IPTO, distribution network operator DEDDIE/HEDNO, and RAAEY, the Regulatory Authority for Waste, Energy and Water, energypress sources have informed.

RAAEY, the sources noted, is currently preparing a plan for the ministry that contains details of a required legislative revision, which, when ratified, will enable PPC to proceed with its energy sufficiency plan for the non-interconnected islands.

The power utility has prepared a comprehensive plan designed to meet the needs of these islands until 2030, using everything from power coupling and gas turbines to batteries. The cost of these solutions is expected to range between 200 and 500 million euros, depending on the payback period and whether some units will be purchased, in addition to leases.

PPC has already reached an agreement with Greek construction and energy group GEK-TERNA for the purchase and transfer to Crete of the latter’s 147-MW gas-fired power plant, currently stationed in the Viotia area, northwest of Athens.

PPC, which has undertaken the task of ensuring energy sufficiency on Crete, plans to have the power plant transferred and reinstalled on the island in time for this coming summer, when energy demand typically peaks.

At a meeting chaired by the energy ministry, a decision was reached to cover 75 percent of the power plant’s remuneration through the public service compensation (YKO) account, accumulating related surcharges added to all electricity bills.

PPC agrees to buy GEK-TERNA power plant for coverage of Cretan needs

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Power utility PPC has reached an agreement with Greek construction and energy group GEK-TERNA for the purchase and transfer to Crete of the latter’s 147-MW gas-fired power plant, currently stationed in the Viotia area, northwest of Athens.

PPC, which has undertaken the task of ensuring energy sufficiency on Crete, plans to have the power plant transferred and reinstalled on the island in time for this coming summer, when energy demand typically peaks.

PPC has included Heron I, the GEK-TERNA gas-fired power plant, into its package of solutions for energy sufficiency on Crete, both before and after the completion of a grid interconnection project to link Crete and Athens.

PPC and GEK-TERNA are now expected to complete their agreement imminently so that the the power plant’s transfer and reinstallation procedure can commence as soon as possible.

As reported by energypress earlier this week, the two companies had been engaged in advanced negotiations for quite some time.

An agreement for PPC’s purchase of the power plant was apparently reached by the two sides a while ago, but a remuneration formula for the power utility’s operation of the power plant on Crete, still not fully linked to the mainland grid, had remained pending.

At a meeting chaired by the energy ministry, a decision was reached to cover 75 percent of the power plant’s remuneration through the public service compensation (YKO) account, accumulating related surcharges added to all electricity bills. PPC will cover the other 25 percent.

The European Commission still needs to approve the remuneration formula as it involves state aid.

 

TSOs preparing power sufficiency plans for the islands

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The country’s TSOs are planning a transitional strategy ensuring electricity supply for the country’s non-interconnected islands still not linked to the mainland grid, as well as a second plan that would boost production capacity and serve as back-up once subsea cable interconnections linking non-interconnected islands have begun operating.

The transitional plan, the most urgent of the two initiatives, is the responsibility of distribution network operator DEDDIE/HEDNO and concerns providing energy coverage for islands to be interconnected as part of the fourth phase of the Cyclades interconnections, plus the Dodecanese and northeast Aegean islands, until power grid operator IPTO has completed its interconnection projects linking all these regions with the mainland.

Development of these projects will need to be synchronized with power utility PPC’s gradual withdrawal of old power plants it operates on islands, when they experience functional issues. Spare parts for these units, now outdated, are difficult to find.

PPC intends to gradually withdraw 32 old power plants with a total capacity of approximately 50 MW from non-interconnected islands. The power utility will do likewise with old facilities on Crete.

Support mechanism needed for old gas-fueled power stations

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A support mechanism preventing premature withrawals of older natural gas-fueled power stations, as a result of commercial viability issues, will be necessary to avoid energy insufficiency issues, authorities have underlined in Greece’s revised National Energy and Climate Plan.

The revised NECP anticipates a further 700-MW capacity for natural gas-fueled electricity generation, slightly higher than the plan’s objective set in January.

Developments over recent years concerning the decarbonization effort, combined with the energy crisis and market volatility, have brought new conditions for power generation in Europe and Greece, resulting in a revision of various constants.

One of these is the role of the older gas-fueled power plants, which can no longer be taken for granted, as they may face commercial viability issues in the new environment, especially when facing competition from new gas-fueled power plants that are expected to be installed in Greece over the next few years, as these new units will be better equipped and more efficient to meet the grid’s specific needs.

The revised NECP takes this prospect into account. It simulates hypothetical scenarios entailing early withdrawals of old gas-fueled plants for economic reasons.

Premature withdrawal of two or three older, less energy-efficient gas-fueled power stations would have minimal impact on energy sufficiency, but the withdrawal of a greater number of units would endanger the country’s energy sufficiency, the revised NECP notes.

 

Elevated reservoir levels offer positive outlook for summer

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The country’s grid is entering the summer in sound shape regarding energy sufficiency, aided by the absence of issues at main power plants, an accumulation of lignite stockpiles at power plant yards and mines, the imminent addition of 1,500 MW in July, when two new power plants developed by the Mytilineos group and power utility PPC begin operating at full scale, and, above all, abundant water levels at hydropower facilities.

Reservoir water levels, usually the biggest concern for the power grid operator at this time of the year, are above last year’s level and currently offer 3,000 GWh compared to 2,940 GWh a year ago.

This rise is the result of increased rainfall in May and early June, as well as the operation of power utility PPC’s pumped-storage facilities at two dams, Sykia (Haliacmon river) and Thisavros (Nestos river).

Pumped-storage facilities operate as hydroelectric energy storage, based on a configuration of two water reservoirs at different elevations that can generate power as water moves down from one to the other, passing through a turbine. The system also requires power as it pumps water back into the upper reservoir.

The news is also favorable in terms of wholesale electricity prices, currently down to a two-year low. Wholesale electricity was priced at 83 euros per MWh in June, 2021, skyrocketed as high as 436 euros per MWh in August, 2022, and has now fallen, between June 1 and 6, to an average price of around 80 euros per MWh.

It still remains unclear if such a low level can be maintained throughout June. Cool early-summer weather conditions at present are helping subdue electricity demand and, in turn, keeping wholesale electricity prices down.

Energy sufficiency safe for summer, operators inform

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The energy sector’s market operators are confident the country faces no energy insufficiency issues going into summer, their optimistic outlook shaped by satisfactory hydropower station reservoir levels, maintained at last year’s levels, ample lignite stockpiles, as well as a bigger-than-ever addition of new RES units to the grid this year.

Moreover, the Mytilineos group and power utility PPC plan to fully launch new power stations over the next couple of months, to result in an extra capacity of 1,500 MW.

At a meeting yesterday, market operators informed RAAEY, the Regulatory Authority for Waste, Energy and Water, of their positive outlook for summer, after having already updated the caretaker government’s energy minister Pantelis Kapros.

Hydropower station capacity currently stands at 2,800 MW, RES unit additions offer 1 GW, lignite stockpiles exceed 3 million tons, while the 1,500 MW to be offered by the imminent arrival of the Mytilineos group and PPC power stations will further reinforce the country’s energy sufficiency.

Market operators and RAAEY held yesterday’s meeting to discuss moves already made, outstanding action still needed to fully protect the grid going into summer, and to resolve any pending energy-related issues concerning the Greek islands, where demand multiplies due to tourism activity.

IPTO confident of energy sufficiency this coming summer

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Greek power grid operator IPTO, contrary to officials in other parts of Europe fearing drought periods will affect their electricity sufficiency, is confident current local conditions are favorable enough to get the country through the high-demand summer season.

Reservoir water levels at Greek power utility PPC’s hydropower facilities have just about been maintained at last year’s levels, more RES units have been connected to the grid this year than ever before, while the country’s lignite stocks are also currently high, at three million tons, following a concerted energy-crisis effort made since last year.

In addition, Greece’s grid is set to be reinforced, within the next couple of months, by the addition of two new power stations – a Mytilineos group unit and PPC’s Ptolemaida V – to offer an extra generation capacity of 1,500 MW.

Reservoir water levels at PPC’s hydropower plants currently offer 2,720 MW and are expected, over the next few days, to rise to 2,850 MW, levels recorded last year, primarily as a result of increased flow at northern Greece’s Haliacmon river.

Ptolemaida V power station’s full-scale launch just weeks away

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Power utility PPC is just weeks away from commercially launching its new Ptolemaida V power station, a 660-MW facility in the country’s north now undergoing a final stage of trial runs.

Prime Minister Kyriakos Mitsotakis, scheduled to visit the area next week, is expected to highlight the significance of this project, including its role in the country’s anticipated post-lignite era.

Ptolemaida V, to initially operate as a low-emitting lignite-fired power station before eventually converting to natural gas, promises to greatly contribute to the grid’s energy sufficiency.

According to a latest estimate provided by power grid operator IPTO, in an energy sufficiency study, the facility may operate as a lignite-fired power station until the end of 2028 before being withdrawn for a two-year period and relaunched, at the beginning of 2031, as a 1,000-MW gas-fueled power station.

However, the power station’s switch to natural gas at a sooner date cannot be ruled out if gas prices de-escalate in the long-term and remain stable at lower price levels.

Turbine installed at GEK TERNA-Motor Oil gas-fueled power station

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A Siemens HL-class gas turbine, the first to be used in Greece, has been installed at a prospective 877-MW state-of-the-art combined cycle, gas-fueled power station being developed by GEK-TERNA and Motor Oil Hellas in Komotini, northeastern Greece, planned to be launched in early 2024, Motor Oil Hellas has announced.

The project, Thermoilektriki Komotinis, an investment estimated to be worth 375 million euros, promises to be one of the most efficient power plants in Greece. Once operational, it will emit 75 percent less CO2 than lignite-fired power plants.

Thermoilektriki Komotinis is the second gas-fueled power station that has undergone development in Greece over recent years, following the construction, by the Mytilineos group, of an 825-MW unit in Viotia, northwest of Athens, whose commercial launch is imminent.

Construction of a third gas-fueled power station, in Alexandroupoli, northeastern Greece, as a joint venture by power utility PPC, gas utility DEPA and the Copelouzos group, is scheduled to officially commence this Saturday.

The country requires at least three additional power stations to secure energy sufficiency, according to a recent study conducted by power grid operator IPTO for 2025 to 2035.

PPC aims to launch pivotal Ptolemaida V unit in March

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Power utility PPC is aiming to launch its new and pivotal Ptolemaida V power station, a 660-MW facility undergoing a final stage of trial runs, by late March.

Trial runs at Ptolemaida V were interrupted by technical issues that arose in December, but the facility is expected to resume operating around January 22 for continual tests over a one-and-a-half-month period before its full-scale commercial launch.

This facility, to initially operate as a low-emitting lignite-fired power station before eventually converting to natural gas, promises to greatly contribute to the grid’s energy sufficiency.

If this winter’s weather conditions deteriorate and prompt a spike in energy demand, the energy sufficiency effort will greatly depend on PPC’s lignite reserves amassed at its lignite-fired power stations.

PPC has accumulated roughly three million tons of lignite at its lignite-fired power stations, close to its target of 3.5 million tons.

The power utility’s current lignite quantity would suffice to keep its lignite-fired power stations, seven in total, running continuously over one month, PPC officials noted.

PPC is aiming to double its overall lignite-fired electricity production this year, from 5 TWh to 10 TWh.

 

IPTO: At least 3 new gas-fired power stations will be required

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At least three new gas-fired power stations will be needed to ensure energy sufficiency within the next few years, but these new facilities will require a support mechanism to remain sustainable, a study conducted by power grid operator IPTO, looking ahead to the period between 2025 and 2035, has determined.

This IPTO study, whose findings have been unofficially handed over to the energy ministry, is essentially transitional as its outlook regarding the increase in RES and energy storage installations falls short of announcements made recently by energy minister Kostas Skrekas for the country’s updated National Energy and Climate Plan.

IPTO will make related revisions to the study once an upgraded NECP is officially approved.

Even so, two fundamental issues raised by the IPTO study appear unlikely to change. Firstly, the growing presence of wind and solar energy units in the energy system will need to be accompanied by the installation of more thermal plants, especially gas-fired power stations, given the existing capabilities of energy storage technology, in order to ensure electricity sufficiency.

Besides the new Ptolemaida V power station, now gearing up for a full-scale launch by the end of February – initially as a low-emitting lignite-fired power station before eventually converting to natural gas – at least three big gas-fired power stations will also be needed.

The IPTO study’s second fundamental finding unlikely to change concerns the need for support mechanisms to ensure the sustainability of both new and old power stations, given the concurrent installation of new RES units, energy storage facilities and gas-fired power stations. The energy ministry, as a result, will need to seek European Commission approval of Capacity Remuneration Mechanisms (CRM).

The IPTO study takes into account two RES penetration scenarios, one based on the existing NECP, established in 2019, forecasting RES installations of 15.5 GW and energy storage installations of 1.8 GW by 2030. The other scenario, more ambitious, assumes RES installations of 24 GW and energy storage installations of 3 GW by 2030.

Achlada mine set to reopen, ministry revokes older decision

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Energy minister Kostas Skrekas has revoked an older decision terminating the Greek State’s lease contract with Achlada Mining S.A. for the exploitation of a lignite mine in northern Greece’s Achlada area.

This decision will enable the mine’s reopening and ensure the nearby Meliti lignite-fired power station operates at full capacity to help the country secure energy sufficiency amidst the energy crisis.

Achlada Mining S.A. had had its Achlada mine license terminated after failing to meet lease contract payments.

In the lead-up to the minister’s decision to revoke the termination of Achlada Mining S.A.’s lease contract with the State, the company covered just over 10 percent of its 5.69 million-euro debt owed to the Greek State, making a payment of 659,867 euros in September.

The energy ministry has given Achlada Mining S.A. a 60-day period to deliver the rest of the amount, approximately 5 million euros. This debt concerns older lease amounts from 2017.

September LNG quantities lower but still considerable

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Natural gas quantities to be shipped to the Revythoussa islet LNG terminal just off Athens will total 562,000 cubic meters in September, below the 609,000 cubic meters tallied in August, but equally important for the country’s energy sufficiency effort.

A total of six LNG tankers will moor at the Revythoyssa facility this month, bringing in 13 separate orders.

More specifically, Bulgaria’s MET energy has ordered four shipments for 104,000 cubic meters, Motor Oil is expecting one shipment carrying 36,900 cubic meters, Bulgargaz is awaiting two shipments for a total of 110,00 cubic meters, Mytilineos has placed an order for one shipment carrying 147,700 cubic meters, Elpedison has placed an order for three shipments totaling 62,00 cubic meters, and DEPA is expecting two shipments totaling 100,000 cubic meters.

These orders have been placed to support the country’s gas-fueled power stations during these challenging times, and also to cover energy needs in neighboring Bulgaria, which has stopped receiving Russian gas for some months now.

Bulgaria’s caretaker government is seeking to increase LNG quantities received through Greece to take advantage of the Greek-Bulgarian IGB pipeline’s upcoming launch, expected imminently.

The neighboring country is also in talks with Azerbaijan for increased imports. Sofia has not ruled out new gas supply negotiations with Russia’s Gazprom should other solutions prove insufficient.

EU states without gas storage must use facilities of fellow members

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EU member states without natural gas storage facilities, such as Greece, will be required to store gas quantities representing 15 percent of annual consumption at existing gas storage facilities maintained by fellow member states by November 1, the European Commission has just announced.

In the lead-up, Brussels had issued an order requiring all EU member states with gas storage facilities to fill these at 90 percent of full capacity by November 1, in preparation for next winter. The EU is now taking steps to drastically reduce its reliance on Russian gas.

Governments in respective member states are responsible for the achievement of this objective and can impose fines and sanctions, according to the announcement.

The European Commission has notified it will conduct inspections to determine whether intermediate storage-capacity goals have been achieved. Warnings will be issued if discrepancies are found to be over two percent, followed by related talks with the respective member states. Lack of action a month after these talks have taken place will result in decisions from the European Commission, which the member states in question will need to adopt.

 

Athens to discuss plan should Russian gas supply be cut

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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.

Minister calls meeting on winter energy sufficiency challenge

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Energy authorities are expected to focus on the challenge of assuring energy sufficiency over the winter season at a meeting of today, called by energy minister Kostas Skrekas as a result of production capacity concerns at the country’s lignite facilities.

Maintenance level cutbacks at the country’s lignite-fired power facilities, in anticipation of their decarbonization-related withdrawals, may end up affecting the performance of some units, but their contribution to the grid could be crucial as a result of the wider impact of the energy crisis on the market.

The energy minister called today’s meeting in response to a letter forwarded by power utility PPC, controlling the country’s lignite facilities, to power grid operator IPTO, in which current problems faced by lignite-based electricity generation were stressed.

Authorities confident of energy sufficiency this winter

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Energy authorities are confident the country is sufficiently equipped to meet energy demand this coming winter, suggesting that it would take a perfect storm, or combination of a number of unfavorable factors, to cause problems.

Energy minister Kostas Skrekas chaired a meeting earlier this week for an update on the winter preparations from officials at power grid operator IPTO, gas grid operator DESFA, as well as RAE, the Regulatory Authority for Energy.

An extremely cold winter would need to be combined with a sharp rise in electricity demand in neighboring countries, technical issues at Greece’s lignite-fired power stations, subdued RES participation due to weather-related conditions, electricity import difficulties and low water reserves at the country’s hydropower facilities for an energy shortage, authorities have suggested.

At this stage, the country’s natural gas-fueled power stations are running smoothly, but their rising operating costs are a concern.

Greece’s lignite-fired power stations do face occasional technical issues as their maintenance is nowadays less thorough in anticipation of a full withdrawal of these units by the end of 2023 as part of the country’s decarbonization plan.

Hydropower, RES units and electricity imports are all variable factors. The contributions to the grid of the first two depend on weather conditions, while electricity imports will depend on how Greece’s wholesale electricity prices compare with those of neighboring countries. If prices are relatively higher in Greece, the country will import. If price levels here are lower, electricity will be exported.

IPTO warns PPC against Megalopoli III closure this year

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Power utility PPC’s Megalopoli III lignite-fired power station must not be withdrawn within 2021 – let alone about now, as the utility had initially planned – for reasons of grid sufficiency, the power grid operator IPTO has advised in a letter forwarded to PPC and RAE, the Regulatory Authority for Energy.

IPTO, in its letter, warns against the consequences of two PPC plans, the first, an intention to shut down Megalopoli III by the end of March, and, the second, premature withdrawal of its entire portfolio of lignite-fired power stations by the end of this coming August, or to the extent that is feasible, given grid sufficiency requirements.

Premature withdrawal, this summer, of all the lignite units would result in a capacity shortage measuring approximately 1,000 MW, which would need to be covered by electricity imports, IPTO has warned.

PPC’s chief executive Giorgos Stassis refenced the IPTO letter during yesterday’s Power and Gas Supply Forum, an online event staged by energypress, while commenting on the need to maintain lignite-fired power stations for grid stability, even if these units are now loss-incurring because of elevated CO2 emission right costs.

IPTO does not consent to any lignite unit withdrawals that would be ahead of schedule – based on a PPC plan for 2021 to 2023 – the power utility’s boss stressed during yesterday’s forum.

As a result, Stassis added, PPC will need to be compensated by the European Commission, through a support mechanism proposed by Greek officials, for needing to maintain loss-incurring units.

IPTO, in its letter, reiterated the findings of recent grid sufficiency study, noting that the two-year period from 2021 to 2022, especially the current year, will be crucial. The grid would be particularly exposed to deficiencies if generating capacity is reduced without replacement, the operator warned.

The Mytilineos group plans to launch a new 826-MW combined cycle gas turbine (CCGT) plant next year. Testing is expected to begin in the fourth quarter this year. Also next year, PPC plans to launch its Ptolemaida V unit, initially as a lignite-fired power station.

Weather effects lend credibility to PPC lignite compensation bid

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The impact of last week’s heavy snowfall around Greece, prompting power outages in various areas, northern parts of Athens being hardest hit, has added credibility to state-controlled power utility PPC’s compensation bid to the European Commission for its need to keep using lignite-fired power stations.

Had IPTO, the power grid operator, not ordered the grid entry of PPC’s lignite-fired power stations, nowadays a high-cost option, widespread blackouts amid the adverse weather conditions would have been inevitable, making matters far worse, including at economic and political levels.

IPTO officials have stressed the country continues to need PPC’s lignite-fired power stations until their production capacity is gradually replaced by cleaner gas-fueled power stations. These are: PPC’s Ptolemaida V; a unit being developed by the Mytilineos Group in Viotia, northwest of Athens; and Terna’s prospective unit in Komotini, northeastern Greece, still at the planning stage.

The period between 2021 and 2024 will be crucial for the country’s power generating sufficiency as a result of the planned withdrawal of existing lignite-fired power stations, a related IPTO study has shown. The system’s sufficiency will depend on how swiftly the aforementioned gas-fueled power stations, totaling 2,150 MW, can be up and running.

If the planned completion dates for these three projects are maintained then there will be no reason to delay the withdrawal schedule of lignite-fired power stations, sources pointed out. The grid entry of PPC’s Ptolemaida V and Mytilineos’ Viotia unit, without the Terna unit, would suffice to cover the capacity gap to be left by the withdrawn lignite units, these sources added.

However, any delays in the completion of the new power stations could prompt Greek officials to request more time from the European Commission for the withdrawal of lignite-fired units, the sources said.

PPC using extra 58-MW unit on Crete for safety despite weak tourism data

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Power utility PPC plans, next week, to begin operating 58-MW capacity generators leased and to be installed at a company power station even though electricity demand on the island is expected to be far lower than usual this summer.

The island will still need this generation boost to meet local energy requirements despite the pandemic’s anticipated negative impact on tourism, authorities have estimated.

Crete’s energy sufficiency situation will not be resolved until the island’s grid interconnection with Athens is completed.

The generators, to be installed at PPC’s power station at Atherinolakkos, southeastern Crete, are scheduled to begin operating on July 1.

PPC has received a production permit for the generators between July 1 and August 31. Depending on the conditions, this license could be stretched to also cover September.

Under normal circumstances, electricity demand on Crete typically reaches 700 MW during the summer as a result of major tourism development on the island. Power outages, both short and long-lasting, are a common summer occurrence on Crete.

 

Gov’t moves promise progress for Athens-Crete grid link

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The government has taken key initiatives to facilitate progress of the Crete-Athens electricity grid interconnection project, vital for the island’s energy sufficiency following the compulsory withdrawal of high-polluting power stations.

A decision was reached yesterday at a cabinet meeting headed by Prime Minister Kyriakos Mitsotakis to induct this project into a code making the expropriation of property compulsory.

Prior to this, early in April, government officials delivered the project’s environmental terms.

The latest move, offering expropriation rights, enables work to progress before compensation amounts have been determined and paid out to displaced property owners.

However, in return, the Greek State must apply for temporary or final determination of compensation within one month.

Officials at power grid operator IPTO, developing the project, have embraced the government decisions as they promise to prevent delays for this ambitious and challenging grid interconnection.

Large-scale projects such as the Crete-Athens grid link cover areas administrated by successions of local authorities. Subsequently, overall project progress greatly relies on the swift issuance of licenses by local authorities.

As the next step, the winning bidders of cable installation work are expected to sign project contracts in May. The signing of contracts for the development of terminal stations is anticipated in the first half of June.

RAE renews call for ministry’s help on Crete sufficiency plan

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RAE, the Regulatory Authority for Energy, has reiterated a request for energy ministry support needed for the execution of a plan that is expected to resolve energy sufficiency concerns on Crete until the island’s major-scale interconnection with Athens is completed.

The authority, which has resent a package of Crete-sufficiency proposals to the energy ministry, is essentially seeking permission from the ministry to recruit consultants so that it can proceed with necessary tenders.

The RAE plan, comprised of four basic actions, is based on a related study conducted by the National Technical University of Athens. Besides ensuring energy sufficiency for the island, the proposals also meet environmental standards.

The conversion of a diesel-fueled power station into a 100-MW natural gas-fueled facility is one of the four RAE proposals.

Another entails the installation of a new 100-MW power station, preferably natural gas-fueled.

A third action involves a RES capacity addition of roughly 200 MW, evenly split between wind and solar facilities.

RAE’s fourth proposal concerns the installation – and introduction to the Greek grid – of energy storage systems, or high-tech batteries, representing a capacity of between 30 and 40 MW.

The first and second proposals depend on LNG supply to Crete. Subsequently, a tender will need to be staged for the installation of an FSRU as well as a 100-MW power station.

The additional RES capacity will also require tenders. In addition, RAE proposes a tender for the energy storage systems it envisions for the island.

These batteries could also be used on other Greek islands in the future if they are eventually no longer needed on Crete.

 

RAE close to energy plan for Crete in busy summer months

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RAE, the Regulatory Authority for Energy, is close to finalizing a plan designed to ensure energy sufficiency on Crete during the busy summer months through an overall capacity boost of approximately 90 MW.

The authority is expected to secure 60 MW of this required additional capacity through a leasing arrangement of power generators at the island’s Atherinolakkos location. This has represented a standard solution in recent years.

It is still unclear how the remaining amount of between 25 and 30 MW will be generated to ensure energy sufficiency throughout the summer for the entire island.

Authorities had previously decided to have a power utility PPC wind turbine relocated from Rhodes to Xylokamara in the Hania prefecture. However, PPC and distribution network operator DEDDIE/HEDNO eventually asked for this turbine system to remain on Rhodes this summer, despite the addition of a new unit on the island.

A leased wind turbine for installation at the Hania prefecture is a solution now being seriously considered. This option’s cost is estimated between five and six million euros, roughly the amount it would cost to have the Rhodes turbine transported to Crete and then back to Rhodes. This option’s electricity generation cost is high.

RAE is also considering shipping in a vessel with three or four units on board.

ENTSO-E: Greece in good position to meet energy demands this winter

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Greece is in a good position to meet its energy demands this coming winter, even under unfavorable conditions, without import needs for most of the season, ENTSO-E, the European Network of Transmission System Operators for Electricity, has noted in its annual report.

The second half of December and January will be the most crucial period, the report noted, adding that RES curtailment is not expected to be needed in Greece.

Overall, the EU is ready to meet the winter’s energy demands, barring extraordinary conditions, according to the ENTSO-E report.

Temperatures 10 degrees Celsius below normal levels, combined with unanticipated capacity losses and low RES output, would create problems in Belgium and France in January, the report forecast. If so, these member states will need to depend on energy imports and possibly need to take emergency measures, it added.

Gas conversion of Cretan plants added to island sufficiency plan

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The conversion of power utility PPC’s oil power plant facilities in Crete’s Atherinolakos location into gas-fueled units appears to be the latest addition to a package of solutions intended to ensure electricity sufficiency on the island as of 2020, when high-polluting units, in their current form, will need to have been withdrawn from the system as part of the EU’s environmental policy.

The Atherinolakos units, offering a 100-MW capacity, were granted lifetime extensions a few days ago by energy minister Giorgos Stathakis, unilaterally, without European Commission approval, for continued operation until a grid interconnection project linking Crete with the Peloponnese is completed.

These PPC units have already been given an extension by the European Commission until the end of this year.

The energy minister’s plan intends to keep the Atherinolakos units running until the Crete-Peloponnese interconnection, Crete’s small-scale link, is completed. A large-scale interconnection linking Crete with Athens is also in the making.

The Atherinolakos units could end up becoming part of a long-term solution for Crete that will depend on LNG shipments to Crete.