Energy transition cost a ‘risk for EU industrial competitiveness’

The possibility of European industry facing persistently higher energy costs compared to the US and other global and regional players as the energy transition proceeds could become a bigger threat  than the energy crisis itself, according to a study on EU competitiveness conducted by Brussels-based think tank Bruegel.

The study, presented yesterday to the EU’s 27 finance ministers during a Eurogroup meeting, gives rise to a range of issues, from taxation and regulated tariffs to competition between big and small countries, while also making note of considerable energy quantities required to develop green technologies.

The first and main question raised by the study enquires whether the recovery of energy-transition costs should continue to be made through electricity tariffs or via general tax policies of EU member states.

A second question considers whether the tax distribution balance between households and industry should be altered. The study also explores the need for a tax redistribution between energy-intensive and non energy-intensive enterprises.

It also notes that, in the context of the single market, energy-consumption increases by large countries come at the expense of countries with smaller energy needs.

A fifth main point raised by the Bruegel study questions whether it makes sense to invest in renewable energy technologies such as solar panels, for example, when the production of polysilicon, a key component in the production of solar panels, requires extremely large amounts of energy.

According to the study, the anticipated prevalence of renewables will lead to a decrease in electricity prices but part of the decline will be offset by cost increases concerning a range of tariffs, fees and various policies.

PM, ministry deputy to discuss energy transition at Davos

Prime Minister Kyriakos Mitsotakis and Deputy Minister of Environment and Energy Alexandra Sdoukou will be presenting their views on where the energy transition currently stands in Greece at the upcoming World Economic Forum in Davos, scheduled for January 15 to 19.

The Greek PM will participate in a discussion on the EU’s Green Deal with Maros Sefković, Executive Vice-President of the European Commission for the European Green Deal, according to the event’s agenda.

Also taking part in this discussion will be Ester Baiget, President and CEO of Denmark-based biotechnology company Novozymes, and Maxim Timchenko, head of DTEK Group, a leading private investor in Ukraine’s energy sector.

The European Commission is promoting investments totaling one trillion euros in the current decade for sustainability, the ultimate goal being zero emissions by 2050.

Sdoukou, the deputy minister of environment and energy, will participate in a discussion with Surendra Patawari, Founder and Chairman of the Gemini Foundation, a company engaged in sourcing and distribution of recyclable and reprocessed plastics, paper, metal and rubber, on the energy transition in Greece and the wider region. Gemini is one of the largest solar energy producers in the US.

Support plan for Greek-made energy transition equipment

A special support scheme for domestic industries active in the production of equipment concerning the country’s energy transition is expected to be included in a new development law to be announced in the near future by the Ministry of Development and Investment.

This new provision in the development law, to follow a “Produce e-Green” initiative launched by the previous leadership of the energy ministry, will aim to support and encourage domestic industry to become active in the energy transition sector, producing equipment and products for the country’s green transformation.

A number of companies have already shown interest for such an initiative, development and investments minister Kostas Skrekas told the recent 5th Renewable & Storage Forum in Athens. The minister mentioned Elefsina Shipyards, capable of manufacturing floating wind turbine bases, as an example.

The development ministry is determined to take significant steps in linking research and innovation with industry for production of equipment used for the country’s energy transition.

Greek pavilion for first time at upcoming COP28 conference

Greece will have its own national pavilion at a UN climate change conference for the very first time when officials meet for a 28th edition, COP28, in Dubai November 30 to December 12, sources have informed.

Over 25 events are planned by the energy ministry to promote Greek energy projects contributing to the energy transition, the sources noted.

The country’s presence at the conference with an independent pavilion comes following intensive efforts since last year. The Greek pavilion will provide a platform for crucial Greek energy projects.

At the preceding event, COP27, the then-Secretary General of Energy and Mineral Resources, Alexandra Sdoukou, now the deputy energy minister, had presented a GR-Eco Islands initiative, involving small islands that can serve as examples, models and case studies for green sustainability as a whole.

At COP28, the energy ministry will be organizing – with Sdoukou at the helm – a series of events showcasing, internationally, the country’s initiatives on sustainable development, green energy and energy transition. DESFA, the gas grid operator, IPTO, the power grid operator, and SEV, the Hellenic Association of Industrialists, will be involved, as will Enterprise Greece, the official investment and trade promotion agency of the Greek State.

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.

 

 

Significant emission cuts from domestic industry, SEV notes

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

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

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

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

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

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

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

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

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

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

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

 

Focus on germanium, antimony mining, vital mineral resources

The Greek government, along with its Ministry of Environment and Energy, is placing significant emphasis on harnessing the potential of the country’s mineral resources, with particular attention directed towards the utilization of germanium and antimony elements, both vital for industry and the energy transition.

Rockfire Resources plc, a UK-based exploration company focusing on precious metals, base metals, and critical minerals – its subsidiaries include Hellenic Minerals I.K.E. – revealed last year that it had identified germanium deposits at the Molaoi mine in southeastern Peloponnese. The company is currently awaiting EU funding to progress with the development and utilization of these resources.

The European Union’s Environment Agency has identified germanium as one of the top 20 raw materials considered critical metals by the European Commission, given the potential risk of supply shortages.

Germanium is an important semiconducting material, while its compounds are used, among other things, for telecommunications optical fibres, as polymerization catalysts and in photovoltaics, while it is also widely used in various sectors of the chemical industry and metallurgy.

Germanium holds significant importance as a semiconducting material. Its compounds find application in diverse areas, including telecommunications optical fibers, photovoltaics, and serve as polymerization catalysts. Furthermore, germanium plays a crucial role in various sectors of the chemical industry and metallurgy.

As for the country’s antimony deposits, Greece possesses great potential, Theodoros Skylalakis, the Minister of Environment and Energy, highlighted at a recent EU energy council meeting.

The EU is willing to support European antimony extraction efforts as 87 percent of the world’s production of this mineral resource hails from China.

Antimony is used in the production of refractory materials, dyes, as well as in the glass industry, batteries and semiconductors.

Deputy Minister of Environment and Energy Alexandra Sdoukou, speaking at a recent conference titled “Greek specific issues: new raw materials industrial projects in Greece”, announced the launch of a tender for the lease of a mining site in order to determine the existence and exploitation of antimony, a mineral included in all EU lists from 2011 to date as a critical strategic metal.

Europe falling behind North America in energy transition race

Despite taking the initiative, back in 2010, for action against the climate crisis, Europe has since lost plenty of ground and now lags behind North America in the energy transition race as a result of a lack of measures and incentives to attract related investments.

Evangelos Mytilineos, president and CEO at the Mytilineos group, as well as president of Eurometaux, Europe’s association for non-ferrous metals producers and recyclers, has pointed out this widening gap that separates Europe and North America.

The USA is subsidizing the cost of energy transition projects at a level of 20 percent, while Canada’s subsidy support reaches 30 percent.

Such investment support for energy transition projects is sorely lacking in Europe, more focused on setting goals and proposing actions such as the Critical Raw Material Act, intended to ensure the EU’s access to a secure, diversified, affordable and sustainable supply of critical raw materials.

Europe’s approach is failing to attract investors, and, even more crucially, energy-intensive industries, Mytilineos pointed out. Many are relocating their headquarters to Asia and the USA.

Energy cost is a key factor behind such decisions. Even now, natural gas prices in the EU, which have de-escalated, remain five times higher than in the USA.

Europe was particularly fortunate last winter as a result of lower temperatures, energy savings, the absence of China from markets, and restricted energy demand in the Far East. However, this fortune has begun changing as energy prices in the Far East are now beginning to exceed European prices. LNG tankers are heading back to Asia in increasing numbers.

The Mytilineos group’s chief forecast the USA would recover from the energy crisis sooner than Europe. Canada, also recovering faster, recently lured the Mytilineos group for a 1.16 billion-euro solar energy portfolio acquisition.

Delayed European decisions, held back by greater bureaucracy and the time-consuming need for approvals by all member states, will leave the continent well behind North America in the energy transition race, Mytilineos noted.

‘National interests dominating global energy transition’

National interests continue to dominate the energy transition on a global level, the World Energy Council’s (WEC) latest World Energy Pulse, surveying more than 700 energy leaders and decision-makers from nearly 80 countries for updated snapshots of current attitudes, trends and needs, has shown.

Almost half, or 46 percent, of the survey’s participants cited national priorities and the risk of an out-of-control green technology race as the biggest obstacles to a smooth and fair transition to a zero-emission economy.

Offering his interpretation, Haris Doukas, Associate Professor at the National Technical University of Athens (NTUA), member of the WEC Program Committee and head of the WEC office in Greece, described the dominance of national interests expressed in the survey as aftershocks linked to COVID-19, the ongoing war in Ukraine, and an international race to boost domestic industry, intensified by US President Joe Biden’s recent Inflation Reduction Act.

Though 54 percent of the survey’s respondents agreed that energy independence is vital to their countries’ climate and energy security agenda, an overwhelming 84 percent of participants accepted that energy interdependence is the new global reality.

RES sector opposes Brussels proposal for price cap on power production

European renewable energy associations SolarPower Europe and WindEurope have expressed their opposition to any moves by the European Commission for a lower maximum electricity price on renewables than on fossil fuel energy, noting this would endanger the energy transition.

EU member state energy ministers are meeting today in search of emergency measures to protect bill payers.

Speaking earlier this week, European Commission president Ursula von der Leyen announced the EU executive’s desire to cap wholesale electricity prices as separate measures for low-carbon and fossil fuel generators.

Von der Leyen set out revenue limits for renewables and nuclear power companies as the second of five energy crisis measures put forward by the commission, with a similar move for fossil fuel companies labeled the third measure.

This implies that the proposed income ceilings could be set at different levels for low-carbon and conventional power generators. That prospect was opposed by SolarPower Europe, which called for any limit on energy company revenue to be applied “after market clearing.”

 

Decarbonization fund €4bn boost for island energy transition

The energy transition plan concerning the Greek islands could receive as much as 4 billion euros in support from the decarbonization fund, authorities participating at an event staged by HAEE, the Hellenic Association for Energy Economics, have indicated.

The HAEE event, titled “Green Transition Cost and Island Decarbonization”, involved the participation of leading authorities, including the energy ministry’s secretary-general Alexandra Sdoukou.

A change in the energy production model of islands is fundamental for the decarbonization effort concerning the islands, Sdoukou pointed out.

The government is aiming to incorporate as many RES facilities as possible on islands, either in the form of hybrid projects with energy storage or as independent solar and wind energy units, wherever grid interconnections are available, Sdoukou told the event.

Kostas Andriosopoulos, professor at the Audencia Business School and CEO of Akuo Energy Greece, estimated that funds to be made available from the decarbonization fund for the island energy transition may reach 4 billion euros, beginning with 2 billion euros, based on current emission right prices.

New KINAL leader: Transition needs to be fair for society

The energy transition towards full decarbonization needs to be sustainable for the economy and fair for society, a strategy that must be adopted by Greece, as has been by Europe’s social democrats, Nikos Androulakis, 42, just elected the new leader of the center-left Movement for Change (KINAL) party, after serving as European Parliament lawmaker, has declared.

Androulakis faced former PM George Papandreou, 69, in a runoff yesterday for the party’s leadership, winning the contest with 68.4 percent of the vote.

Network investments and innovation are needed for swift and balanced growth in renewable energy and storage, Androulakis stressed following his victory.

A better network right now would have enabled the establishment of hundreds of energy communities for the support of the primary sector, reducing energy production cost, a major issue, the new KINAL leader noted.

This winter, 34 percent of Europeans cannot afford full heating, Androulakis said. He questioned why Greece is not pursuing a more gradual energy transition like other EU member states, as well as the motives behind this rush.

The goal is to build resilient societies, where the changes brought about by climate change will not undermine people’s living standards in the short or long-term and will protect both humans and the natural environment, Androulakis had noted in the lead-up to the KINAL party’s leadership race.

SEEPE: Energy transition cost significant for petroleum sector

The energy transition is being made at a high cost for the European market as well as market distortion dangers that need to be addressed, officials of SEEPE, the Hellenic Petroleum Marketing Companies Association, have stressed at a news conference.

It is extremely crucial that government policy packages do not allow for exclusions, while also paying attention to the petroleum sector’s sustainability, aligned with the idea of a truly fair and smooth transition, SEEPE officials pointed out.

Close coordination is needed, even internationally, as climate change is a global problem, the association noted, adding that the European market cannot bear the cost of the green transition without significant support in a globally competitive environment.

The petroleum sector will face challenges as a result of the gradual reduction in the number of fuel-powered vehicles by 2035, given the European Commission’s climate change objectives, SEEPE officials noted.

Despite the energy transition challenges, Greek petroleum companies are embracing the energy transition towards carbon neutrality, they added.

Investments will be needed while the petroleum sector’s new commercial strategy, to enable a transition from conventional fossil fuels to eco-friendly fuels, is vital, the SEEPE officials stressed.

NTUA study surveying energy price effect on green objectives

The European Commission has commissioned the National Technical University of Athens’ E3 Modelling department with the task of examining scenarios on the EU’s ability to achieve ambitious green energy goals in the event that natural gas, fuel and CO2 emission prices remain high.

The NTUA had also been commissioned to conduct research that served as the basis for most of the twelve legislative proposals forwarded by Brussels for its Fit-for-55 climate-change framework, aiming for a 55 percent reduction of carbon emissions by 2030, compared to 1990 levels.

Early findings produced by the latest NTUA survey have shown that the swiftest possible market penetration of renewable energy sources will not cause further problems linked to the higher energy prices at present but, instead, create favorable conditions for a return to market equilibrium, energypress sources informed.

Swifter market entry of RES units and their full induction into the private-sector market as an energy supply base for customers represents a positive response to the higher natural gas prices, Pantelis Kapros, Professor of Energy Economics at NTUA pointed out in a recent article. The impact of a faster RES entry, however, will not be felt immediately but will require two to three years to produce results, he added.

EDA THESS chief: 64% of Thessaly, Thessaloniki population has contributed to energy transition

“In our 20 years of operation, 64% of the population in Thessaloniki and Thessaly has been engaged in energy transition, when in Europe it took 25 years for the 50% of the population to do so,” underlined Mr. Leonidas Bakouras, General Manager of EDA THESS, speaking at the Thessaloniki International Fair’s Oikonomikos Tachydromos (OT) stand.

The full interview, filmed, with English subtitles, follows:

Interview of the General Manager, Mr. Leonidas Bakouras on ot.gr

 

EU ministers to meet on carbon emission costs, causing alarm

The EU’s energy ministers plan to meet in Ljubljana Wednesday in search of a solution to counter the relentless rise in carbon emission right costs, which, for some time now, have reached elevated levels that hang as a dark cloud over energy consumers, hundreds of suppliers and Europe’s energy transition strategy, breeding increasing Euroscepticism.

Carbon emission rights have been stuck at levels of no less than 60 euros per ton, prompting allegations of manipulation.

Last week, the European Commission submitted to European Parliament the EU’s more ambitious climate-change package, “Fit for 55”, aiming for a 55 percent reduction of carbon emissions by 2030, compared to 1990 levels. It is planned to lead to ETS mechanism revisions.

In response to accumulating messages of alarm from energy consumers and industrial enterprises from all over the continent, European MPs, at Wednesday’s meeting, are expected to push for stricter ETS rules.

Until now, governments of EU member states have been left to act independently for support measures whose extent is being determined by the capabilities of state budgets.

In Italy, the government, facing electricity cost increases of 40 percent, is lowering taxes linked to electricity bills. In France, low-income households stand to receive increased energy-cost coupon amounts, currently worth 150 euros annually.

The situation is far more dramatic in the UK. To date, seven electricity suppliers, under growing market pressure, have disrupted their operations, forcing over 600,000 customers to seek new suppliers. Bulb, one of the UK’s biggest electricity suppliers, serving 1.7 million customers, is on the verge of bankruptcy. A merger with a rival player is seen as the likeliest solution for this company.

 

Listed players plan 16 GW in RES projects worth €16bn

Greece’s listed energy groups, alone, plan to invest a total amount of 16 billion euros over the next decade for the development of green energy projects representing over 16 GW, big figures highlighting the anticipated dominance of the green energy market in the years to come as the country transitions to cleaner energy sources and decarbonizes.

Investments are already anticipated in mature RES technologies, namely wind and solar energy facilities, while, once market and regulatory conditions allow, major investments will be made in energy storage as well as offshore wind farms.

Terna Energy, market leader in Greece’s RES market, plans to reach an installed capacity of 3,000 MW in the next five years. The company, the biggest wind energy player in Greece and southeast Europe, is currently developing wind energy projects representing 400 MW while a further 63 projects are nearing maturity.

Power utility PPC is making impressive RES market progress through its subsidiary PPC Renewables. PPC, according to the company’s updated business plan, will make investments totaling 3.4 billion euros until 2023, 34 percent of this amount concerning RES investments.

Green energy is also a key aspect in the Mytilineos group’s investment plans over the next few years. Its solar energy projects portfolio, representing 1,480 MW, is one of the biggest in Greece. The company possesses 300 MW in RES projects either operating, under construction or set for construction, as well as a further 100 MW headed for final investment decisions by the end of 2021. Mytilineos also plans to develop 20 energy storage projects, each with a 50-MW capacity.

Hellenic Petoleum (ELPE), both acquiring and developing RES projects, is aiming for a 2-GW RES portfolio by 2030.

Motor Oil Hellas recently acquired 11 operating wind farms with a total 220-MW capacity as well as a 20-MW facility still under construction from private equity fund Fortress. MOH is aiming for an operating RES capacity of 364 MW by the end of 2022 as well as a medium-term RES goal of between 500 to 600 MW.

Ellaktor is planning investments worth 1 billion euros for the development of 900 MW through its partnership with Portugal’s EDPR.

Contractor Intrakat also aims to push ahead with a one billion-euro RES investment plan. The company has joined forces with Gaia Anemos, possessing wind and PV production licenses representing approximately 1 GW, plus RES expertise.

RF Energy has reached an investment decision to develop an offshore wind farm with a capacity of 498.15 MW northeast of the island Limnos. The project is budgeted at two billion euros, according to the company.

 

 

 

Energy transition proving to be expensive, 30% price hike seen

Unprecedented price rises in the wholesale electricity market, up by as much as 80 percent between July 1 and August 8 and tripled since the beginning of the year, will inevitably impact consumers with imminent increases of approximately 30 percent, market officials have told energypress.

The average wholesale electricity price for this year has been estimated at between 80 and 90 euros per MWh, up 30 percent compared to levels in 2019, used as the base year as price levels in pandemic-hit 2020 were distorted by the unprecedented conditions.

Households and businesses should soon expect elevated electricity bills as a result of wholesale-related clauses triggered by suppliers in response to the sharp wholesale electricity price increases recorded since early July.

These developments, largely attributed to European Commission policies implemented to combat climate change, have prompted comments by key energy market officials, including Evangelos Mytilineos, chairman and chief executive of the Mytilineos group, who recently warned “the energy transition will be expensive.” Another official noted this is a “new era of higher-priced electricity.”

CO2 emission right costs have more than doubled since the beginning of the year, reaching levels, at present, of between 54 and 55 euros per ton.

Natural gas prices have doubled since January at the TTF Dutch trading platform, to 42 euros per MWh.

Greek market officials widely acknowledge the country has no other option but to gradually end its reliance on lignite and fossil fuels, while stressing, however, the need for swifter legislative revisions facilitating quicker RES penetration and energy storage development.

 

 

Strategic reserve necessary, exchange reacts satisfactorily

The end of the Greek energy system’s reliance on lignite, being phased out to help the global climate change effort, needs to be accompanied by a strategic reserve mechanism, which would maintain certain generation capacities outside the electricity market for operation during emergency cases until the ongoing transition to cleaner energy sources has been completed, the extreme heatwave conditions around the country over the past few days have highlighted.

Record-level electricity consumption, combined with power line damages caused by major fires, pushed the grid to the limit, raising fears of widespread power outages.

The government, currently seeking the establishment of a strategic reserve mechanism as part of a Capacity Remuneration Mechanism (CRM), needing European Commission approval, will need to highlight the heatwave-related events that have occurred in Greece over the past ten days.

Sidelined lignite-fired power stations needed to be brought back into action to help the grid meet electricity demand. They offered crucial production contributions representing between 14 and 18 percent of the energy mix.

Lignite-generated output also played a key part in the effort to maintain energy sufficiency last winter, in February, during heavy snowfall that damaged power infrastructure.

The energy exchange has performed rationally during the heatwave conditions, proving its ability to respond to the market’s demand and supply. Day-ahead market price levels rose sharply during the heatwave’s peak and are now subsiding.

 

 

NSRF offering €5.2bn for green transition, decarbonization

Nearly one quarter, or 5.2 billion euros, of the new National Strategic Reference Framework (NSRF) amount allotted to Greece, covering 2021 to 2027, will be used to support the country’s green-energy transition and decarbonization efforts.

The funding will be divided into two programs, one for Environment, Energy and Climate Change, worth 3.61 billion euros, and the other for Fair Developmental Transition, worth 1.63 billion euros.

The two programs will offer support for investments promoting RES penetration, environmental protection, a circular economy, the climate change defense, while also supporting the decarbonization effort in the western Macedonia and Megalopoli regions, both lignite-dependent local economies, as well as the islands.

The Environment, Energy and Climate Change section of the NSRF funding package, presented in Athens yesterday, has been designed to lead to: “A greener and more resilient Europe with low carbon emissions, through the promotion of clean energy, green and blue investments, a circular economy, climate change mitigation and adjustment, risk prevention and management, and sustainable urban mobility.”

 

Clean Energy for EU Islands Secretariat on Crete event

The Clean Energy for EU islands secretariat is looking forward to participating in the 5th Cretan Energy Conference – International Energy Exhibition of Greece and share our experience in supporting European islands in their clean energy transition.

In cooperation with the European Parliament, the Commission set up a Secretariat to deliver the objectives of the Clean Energy for EU Islands Initiative in 2018. The Secretariat acts as a platform of exchange of best practice project examples for islands’ stakeholders and provides dedicated capacity building and advisory services. The secretariat mainly covers topics related to clean energy such as energy production, Energy efficiency, Heating and cooling, Transport to and from the island, and transport on the island

The Clean Energy for EU islands secretariat was created to facilitate the clean energy transition on EU islands with a bottom-up approach. It is built on the vision that to assure the best environment for change, and to benefit all members of the island communities, a balanced collaboration between public and private stakeholders is essential. For this reason, the Secretariat is using the quadruple helix approach, helping citizens, local authorities, local businesses, and academic institutions work together to advance the clean energy transition on their island.

To facilitate the islands’ transition to renewable energy and encourage them to act, the secretariat is organising various events and activities like workshops, forums, calls for technical assistance or video calls. It not only supports islands in planning and getting funding for projects, but also helps them to promote their projects through its social media channels, newsletters, or events. Connecting islands and giving agency to people who want to transfer their island towards a clean energy future, is one of the secretariat’s goals. Its events provide islands with a chance to explore, shape, and act. They can explore other islands’ ongoing projects or agendas to draw inspiration for their own ambitions. Islands have the opportunity to engage in workshops and in turn finalise or pitch their projects and find investors. During these events and regardless of events, the secretariat provides support to apply for financing or finding investors.

It is especially difficult for islands to create and import energy since they are often not connected to continental electricity grids. This makes energy more expensive than in other regions. Switching to renewables is an important step, not only for the environment, but also for the energy security of islands. There are various possibilities to use an island’s potential for renewable energy technologies such as wind turbines, solar farms, or wave energy.

The secretariat hopes to motivate even more islands to take the first step towards their clean energy transition during the 5th Cretan Clean Energy Conference – International Energy Exhibition of Greece

 

 

 

Energy investment activity rising, focus on RES projects, energy transition

Investment activity in the domestic energy sector is rising with major deals being negotiated, the main focus being on renewables and the energy transition, participants at yesterday’s Delphi Economic Forum made clear.

This activity promises significant growth for all RES technologies, even the more innovative, such as offshore wind farms and energy storage units.

Major energy players are moving to capitalize on opportunities that are emerging as the country pushes ahead with its decarbonization effort. Also, investor talks concerning domestic and international partnerships, the latter promising to secure expertise in sectors such as offshore wind farms, are in progress.

Power utility PPC, moving ahead with RES investments, aims to have launched projects with a total capacity of 1.5 GW by 2023. The utility’s redevelopment plan for the country’s two lignite-dependent regions, Ptolemaida, in the north, and Megalopoli, in the Peloponnese, is in progress.

PPC plans to invest 3.4 billion euros on RES project development in these regions, and an upgrade of their distribution networks, Konstantinos Mavros, chief executive of PPC Renewables, a PPC subsidiary, told the forum.

PPC is also expected to establish partnerships facilitating its entry into the offshore wind market. In addition, the company also aims to have formed a joint venture with German power company RWE by the end of summer for development of RES projects totaling 2 GW.

Elsewhere, energy company Mytilineos is also preparing a strategic alliance with a major international group for its entry into the offshore wind farm sector.

Mytilineos is also close to completing, this year, a major post-lignite investment in natural gas-fueled electricity generation. In addition, the company plans to develop 300 MW in wind farms and 1.5 GW in solar farms over the next two years.

Furthermore, Mytilineos plans to develop 20 energy storage projects, each with 50 MW capacity, by utilizing its immense knowhow gained in this field through involvement in such projects abroad.

Hellenic Petroleum (ELPE) is preparing RES and digital transition projects and will concurrently focus efforts to reduce carbon emissions and develop more eco-friendly products, including biofuels and hydrogen.

The Copelouzos group is nearing an investment decision on the development of a natural gas-fueled power station in Alexandroupoli, northeastern Greece. A decision is expected this summer. The group is currently engaged in talks with neighboring North Macedonia’s power utility for its possible entry into this project as a minority partner.

As for networks, power grid operator IPTO has planned numerous projects as part of a ten-year investment plan worth five billion euros. The operator anticipates new RES project penetration of 17 GW, a forecast exceeding the National Energy and Climate Plan’s goals.

DEDDIE/HEDNO, the distribution network operator, has put together a 3 billion-euro investment plan for the two next regulatory periods, each four years long. Projects include network undergrounding, service upgrades and improvement, new technologies, as well as grid digitalization projects.

Legislative priority for energy storage, offshore wind farms

Legislative action will soon be taken by the energy ministry for the RES sector and energy storage systems, as well as offshore wind farm development, the key pillars of the country’s energy transition plan, energy minister Kostas Skrekas has told an online event staged by research and policy institute diaNEOsis on “The Energy Sector in Greece and the Climate Crisis”.

“We are preparing an institutional framework for energy storage. RES units cannot operate without storage,” the minister told the event, referring, once again, to a plan for power purchase agreements (PPAs) between industrial enterprises and RES producers.

An institutional framework for offshore wind farms, the energy transition’s second main component, is also being prepared to cover spatial matters and utilization of sea areas as an energy source, Skrekas noted.

Energy efficiency project support programs worth between 4 and 4.5 billion euros are planned to be offered over the next few years for building upgrades, the minister also told the event.

Commenting on electromobility, Skrekas praised the success of recent incentives offered for electric vehicle purchases, noting that 10 percent of new vehicle registrations in 2021 concern electric and hybrid models.

PANTERA, EIRIE platform in support of R&I in EU for energy transition

Dr. Venizelos Efthymiou, FOSS Chairman, Cyprus, writes for IEEG/CEC2021 

The smartening of the electrical grid infrastructure has taken by storm over the last decade the traditionally slow-moving electrical industry and work done up to now by the related stakeholders can be considered mammoth. Although, effort spent in this process is considered extensive, the achieved results are considered one dimensional as far as involvement, expenditure and benefits achieved. For this reason, the Commission has seen the need of supporting low activity countries in building on their potential and raising their R&I activities in the energy transition to capture the benefits that this transition will undoubtedly bring.

For this reason, a call was put out and PANTERA Coordination and Support Action project was entrusted with this responsibility starting on 1st January 2019. Working closely with stakeholders from the low activity countries the PANTERA team promises to give answers to burning questions through an innovative approach that will stimulate participation from all involved actors in the field and provide the EIRIE (European Interconnection For Research Innovation & Entrepreneurship) dynamic interactive platform through which actions / benefits will be inviting and pleasing (for more details visit the website: https://pantera-platform.eu/)

What are we delivering through PANTERA and the EIRIE platform?

  • A participatory governance that will bring on board all active stakeholders in Europe under the same umbrella for collaboration, collective thinking and actions thus avoiding duplication, repetition and limited innovation in work plan and developing the roadmap forward. Collaborative work is pivotal in the development work that the consortium is delivering through the PANTERA project. The EIRIE platform that is being delivered through the PANTERA project, aims to bring together the attractiveness of successful partnerships being national, regional or European building through them the will for enhanced adaption to areas and partnerships that can broaden active participation for mutual benefit (see the drawing with the initial results of this constantly growing activity).

Deliver the EIRIE platform as a pan-European multi-dimensional collaborative platform, capable of leveraging coherence and trust as a pull towards enhanced R&I in energy systems centered around an integrated grid, active and responsive. Easy access, readymade tools, real data from projects with results build in case studies for exploitation / utilization, building of future scenarios and equally important an attractive environment for generating the vision of tomorrow through innovative tools and methods to be tailored for wider understanding and use. It is our ambition to deliver the collaborative platform that will lay the seeds for growth with tangible benefits to the wider industry partners that currently underspend in R&I in the field of smart energy systems. Based on pan-European entities that are active in the PANTERA process, the envisaged platform strives for long term solidarity to build the required trust capable of delivering the much-wanted benefits of sharing results and knowledge and learning from best practice activities in related fields. Working closely with the services of the Commission the sustainable future of the developed platform will only go stronger making the ambition of single point of access for related work, a reality.

  • Specific attention is given for supporting local energy systems accessing real data through ready-made tools for analysing and designing utilization scenarios that will benefit the integrated grid and local communities.

The PANTERA Consortium is a partner to the “International Energy Exhibition of Greece 2021” under the Cretan Energy Conferences series organised in Crete of Greece and is organising an interactive workshop “The key role of the R&I unified approach across EU for boosting smart grids investments: The EIRIE platform”, during which real evidence will be presented of the strengths of the EIRIE platform and how its rich content and functionalities will be a constant support to your endeavours in the years ahead. In July 2021 when we will meet in Heraklion Crete for the conference, the EIRIE platform will be up and running and we will be in the happy position of making real all our promises. Come and join us and we are sure that you will stay tuned and connected in the years ahead benefiting from the constantly growing wealth of EIRIE.

Dr. Venizelos Efthymiou is the chairman of the FOSS Research Center for Sustainable Energy, University of Cyprus, coordinator of the PANTERA project and f. Executive Networks Manager, EAC and Operational Manager of the Distribution System Operator of Cyprus (DSO).

 

 

 

 

 

 

 

EBRD: Green projects in Greece a priority, RES-based economic recovery

The European Bank for Reconstruction and Development (EBRD) is strongly interested in Greek energy market investments, Andreea Moraru, the bank’s head of Greece and Cyprus, has stressed in an interview with energypress.

The EBRD official spoke extensively on significant investment opportunities being created by the energy transition.

Since 2015, the EBRD has invested over four billion euros in Greece, participating in numerous major projects, Moraru informed, noting its recent support for power utility PPC, an investment worth 160 million euros, one of the bank’s largest, to cover customer payment volatility following the outbreak of the pandemic, exemplifies EBRD’s strong support for Greece.

The full interview follows:

What is the role of the EBRD compared to that of other banking institutions? 

The EBRD is a development bank committed to furthering progress towards ‘market-oriented economies and the promotion of private and entrepreneurial initiative. Our role is to be complementary to the commercial banks, to work alongside them and to support them.

Αdditionality is among the founding principles underlying our work and the particular support and contribution that the EBRD brings to an investment project which is not available from commercial sources of finance. Alongside transition and sound Banking, it is one of the three founding principles underlying our work. By ensuring that we are additional in everything we do, we ensure that our support for the private sector makes a contribution beyond that available on the market and does not crowd out other private sector actors.

Whenever we consider financing a project, we analyze whether similar financing can be obtained from private sector local banks or non-banking institutions.

Many of our markets are relatively high risk, and the private sector will only lend for short periods of time or at such high rates as to make the project unfeasible. For major new projects in the field of infrastructure, for example, longer-term financing may not be available on reasonable terms or conditions. This is where the EBRD fits in.

Additionality can also be non-financial in nature, where EBRD’s interventions contribute to better project outcomes that would not have been required or offered by commercial financiers. This can include the provision of comfort to clients and investors by mitigating non-financial risks, such as country, regulatory, project, economic cycle or political risks. Additionality may also be derived from the EBRD’s involvement in helping projects and clients achieve higher standards than would have been required by the market, such as through sharing its expertise on better corporate governance or above ‘business as usual’ environmental or inclusion standards.

Do you consider the energy sector in Greece to be suitable to contribute to the development and reconstruction of the Greek economy? For what reasons?

Absolutely. In general, the EBRD’s vision for the energy sector is of a partnership between industry, governments and consumers that delivers the essential energy needs of societies and economies in a manner that is sustainable, reliable and at the lowest possible cost.

In Greece the energy sector is embarking upon its biggest transformation yet, moving away from its reliance on lignite (c. 20% of total electricity production in 2019) to renewables and a smaller fleet of significantly less carbon intensive gas generating units. The NECP aims to achieve reduction in greenhouse gas (GHG) emissions by more than 55% by 2030 compared to 2005, planned to be achieved through: (i) decommissioning of all 4 GW of lignite-fired generation capacity by 2028 (3.4GW by 2023), (ii) 8.7 GW of new renewable generation capacity to added by 2030, reaching a total of 19 GW, and (iii) 2 GW of new gas generation capacity added for system support and security. The country remains committed to implementing the NECP as planned despite the negative impacts the CV19 crisis is expected to have on the Greek economy in 2020 and beyond.

Greece’s withdrawal from coal is a fundamental transformation that will create substantial sector and social challenges with the following broad implications: (1) constructing large volumes of low carbon generating capacity in order to ensure energy security in an increasing electrified economy, (2) reengineering the country’s transmission and distribution networks to reflect the additional penetration of distributed, intermittent renewable energy, and (3) addressing the social and economic impacts of the closure of a major part of its existing energy infrastructure, i.e. ensuring a just and inclusive transition.

We have supported many energy projects so far, especially renewables, working together with leading companies, such as GEK Terna, Mytilineos and HELPE among others.

A recent milestone is our support for the largest renewable energy project in Greece and the largest solar energy project in south-eastern Europe to date, the new solar park in Kozani. In 2017, we also approved a framework committing up to €300 million to finance renewable energy investments in the country.

The main reasons why this sector is important for the development of the Greek economy and thus our participation, is first to help the decarbonization of the country and the transition to a greener economy, as well as to strengthen local linkages and regional integration.

What is the EBRD’S philosophy about its presence in the Greek economy and especially in the energy sector?

In Greece in particular, supporting sustainable energy and infrastructure is among our top priorities. In fact supporting sustainable energy and infrastructure is one of the pillars of the newly approved country strategy. Our investment strategy in the energy sector going forward will aim at further liberalization and diversification of the energy market focusing on renewables and increased renewable energy capacity and a more diversified energy mix to promote decarbonization of the economy. EBRD could support a second phase of feasible renewable energy projects with project preparation / technical assistance and financing (biomass and biogas plants, use of waste heat in greenhouses for high value-added agriculture, electricity storage facilities, green hydrogen production plants and other forms of energy storage.

We see that it’s challenging to meet EU climate goals in Greece and our goal is to support the country with that. Our approach and philosophy is in line with the National Energy and Climate Plan and we are very glad the Greek government is committed to close all lignite plants. We need to keep this momentum, despite the current Covid-19 crisis, and turn the country greener.

One good example is our recent support for PPC (DEI). This has been one of our largest investments (€160 million) and the first time we supported the public sector in Greece. This facility supports PPC’s working capital needs at a time of customer payment volatility following the outbreak of the crisis. It also strengthens the resilience of the electricity sector as a whole by ensuring the stability of essential utility supplies and maintaining the momentum towards decarbonization.

What are the characteristics of private companies that could apply to be supported by the EBRD?

When we consider financing a project we analyze different aspects, such as how it supports the green economy, if it promotes women or youth inclusion, if it can enhance the competitiveness and resilience of the Greek economy etc. We look at the financial strength of the project as we operate according to sound banking principles. We cannot finance companies in certain sectors like defence-related activities, tobacco, substances banned by international law or gambling facilities.  As I have already mentioned, we also need to be additional.

We work in a wide range of sectors, from energy, infrastructure, manufacturing, property, tourism, agriculture to trade and financial institutions. We also support SMEs with business advice, know-how transfer and trainings.

What are your conclusions from your cooperation so far with Greek companies and institutions?

We’re very proud of all our projects in Greece so far. Since commencing our operations in 2015, the Bank has invested more than €4 billion in the country, helping respond to the financial crisis. Against a turbulent political and economic backdrop, the EBRD helped stabilize the financial sector, support private companies through export-oriented growth and lay the foundations for greater private sector participation in critical energy and infrastructure projects that have also strengthened regional integration.

We faced several challenges because of the financial crisis, but this was expected and was exactly the reason why we came to the country. Our main conclusion is that Greek companies have strong potential and very talented workforce, who we’re glad to be working with. The COVID-19 pandemic has abruptly interrupted Greece’s steady recovery, but we’re confident that the country can build back better.

We have an excellent cooperation with the Greek Government whom we are supporting on a number of initiatives.  In late 2020, the EBRD joined forces with the Ministry of Development and Investments of Greece to establish a new public-private partnership (PPP) preparation facility cooperation account, following a request from the Greek authorities. We are also working close with the Ministry of Finance on development of a capital market strategy, a project supported by DG Reform.

What are your plans for the new year?

We will focus on supporting the recovery of the Greek economy, by helping with the immediate needs of the Greek businesses because of coronavirus, as well as with their long-term growth plans. Green projects, including in the energy sector, will be our priority, but we’ll also be active in other sectors. We’ll continue supporting the banking sector, too.

Do you consider the investment risk in our country increased after the great economic crisis and in the light of the current crisis due to a pandemic?

The financial crisis had a strong impact on Greece, but we recognize that the Greek economy had started recovering and growing in the recent years. It’s true that COVID-19 containment measures are likely to depress economic output and cause particular disruption to the tourism industry, reversing the economic recovery and hindering investments in the near term, not only in Greece, but also in most countries. There are still many things that need to be improved in the country to attract more investors, but we don’t consider the investment risk much higher than it used to be. The Greek economy can recover after the pandemic.

 

Preliminary talks for 9th post-bailout review begin today

Power utility PPC’s lignite monopoly ordeal, the effort to ensure proper functioning of target model markets, the progress of privatization plans, and Greece’s decarbonization master plan for the lignite-dependent local economies of west Macedonia, in the country’s north, and Megalopoli, Peloponnese, are the key issues on the agenda of the ninth post-bailout review set to be conducted by the European Commission.

Preliminary review talks are scheduled to commence today between energy ministry officials and Brussels technocrats. These will be followed by higher-level talks involving technocrat chiefs and Greece’s newly appointed energy minister Kostas Skrekas.

Though his predecessors faced plenty of pressure, especially over PPC’s dominance, the new minister could be in for a hard time if pending energy-sector issues are not directly dealt with.

RAE, the Regulatory Authority for Energy, and power grid operator IPTO are still seeking solutions to tackle problems faced by the target model’s new markets. They got off to a problem-laden start in November, prompting a sharp rise in balancing market costs during the first few weeks.

As for energy-sector privatizations, the plan to offer a 49 percent stake in distribution network operator DEDDIE/HEDNO appears to be making sound progress and attracting strong interest, as exemplified by the participation of 19 participants in December’s market test.

On the contrary, the privatization plan for gas supplier DEPA Commercial could be destabilized by the company’s ongoing legal battle with ELFE (Hellenic Fertilizers and Chemicals) over an overcharging claim made by the latter. This battle could delay and affect the DEPA Commercial sale.

The Just Transition Plan for Greece’s decarbonization effort is now beginning to make some progress, but this unprecedented endeavor’s degree of complexity cannot be overlooked. Vast amounts of land controlled by PPC need to be repurposed, Brussels must approve investment incentives, and licensing matters need to be resolved, amongst other matters.

Natural gas-fueled generation reaches energy-mix record share of 56.64%

The energy mix contribution of natural gas increased to a record-level share of 56.64 percent in October, a latest energy exchange monthly report has shown.

This significant rise in the energy-mix share of natural gas – to a level never before reported since the full liberalization of Greece’s electricity market – has been attributed to a major slowdown of power utility PPC’s lignite-based generation.

Natural gas-fueled power stations operated by power utility PPC and independent producers further consolidated their place in the energy mix standings, stretching further ahead of other fuel categories.

October’s 56.64 percent energy-mix share captured by natural gas broke this fuel’s previous record of 53.76 percent, registered in August. The natural gas energy-mix share had dipped slightly to 51.74 percent in September before rebounding for October’s record-breaking result.

A year earlier, the natural gas energy mix share was below 50 percent, at 49.86 percent, while lignite’s share was at approximately 22 percent.

Returning to the latest energy-mix figures, natural gas was followed by the RES sector, capturing 33.86 percent, lignite’s share shrunk further to 4.25 percent, and hydropower followed with a 3.21 percent share.

PPC’s lignite-based generation could rise slightly in coming months to cover telethermal needs.

The role of natural gas in the ongoing energy transition towards renewable energy dominance is expected to play a pivotal role for the grid’s sufficiency and security.