Green Aegean entering crucial cost-benefit analysis stage

TSOs of countries that have expressed an interest to participate in Green Aegean, an electrical grid interconnection project envisaged to stretch from Greece to Germany’s south, have begun working on non-disclosure agreements ahead of respective cost-benefit analyses.

According to an initial estimate, the grid interconnection project, to cover roughly 1,400 kilometers, was budgeted at between 7 and 8 billion euros, but the figure is likely to change as more detailed studies are completed.

TSOs of Greece, Germany, Slovenia, Austria and Croatia, a recent addition to the group of countries interested in co-developing the project, are expected to soon commence work on detailed technical and cost-benefit studies.

The studies will include details such as the type of cable technology and converter stations preferred, as well as the cost of each segment.

Greek power grid operator IPTO and its counterparts representing the participating countries – Slovenia’s ELES, Austria’s APG, Croatia’s HOPS, and TenneT, a Dutch TSO operating in a large part of Germany – are expected to each conduct separate preliminary studies before deciding on a final master plan covering the entire grid interconnection project.

The project’s cost estimation, a crucial stage, will be complex as each of these countries have different energy mixes.

IPTO’s chief executive Manos Manousakis held talks Tuesday in Brussels with TenneT’s CEO Mannon van Beek, on the sidelines of a meeting held by ENTSO-E, the European Network of Transmission System Operators for Electricity, for an Offshore Network Development Plan.

Germany has yet to make clear its intentions on the Green Aegean project. The project’s sustainability will be a crucial aspect in the country’s decision. Greek solar energy exports will need to represent a low-cost alternative compared to solar energy production in Germany’s south, the country’s sunniest region.

At present, Greek solar energy production costs between 35 and 40 euros per MWh, compared to roughly 50 euros per MWh in Germany’s south, a price gap resulting from Greece’s sunnier weather and, by extension, lower cost of production.

ENTSO-E: Greece key for harnessing offshore wind potential in southeast Europe

ENTSO-E, the European Network of Transmission System Operators for Electricity, has, amongst other matters, underlined Greece’s importance in the exploitation of offshore wind potential in the Eastern Mediterranean region in its Offshore Wind Farm Interconnection Infrastructure Development Plan for the Eastern Mediterranean.

ENTSO-E held a meeting in Brussels earlier this week, where the development plan was presented. Greek power grid operator IPTO took part.

Italy is the region’s only country to have developed offshore wind farm projects thus far, but ambitious targets, given the current situation, for 2040 and 2050 will be achieved with countries such as Italy and Greece at the forefront, ENTSO-E noted.

The Eastern Mediterranean region’s South and East Offshore Grids will require energy transmission infrastructure totaling 8.7, 19.2 and 28.3 GW in 2030, 2040 and 2050, respectively, ENTSO-E has estimated, adding that investments needed by 2050 could reach 15 billion euros.

Environmental studies ahead of offshore wind farm projects may face fewer challenges and problems than corresponding onshore projects, ENTSO-E pointed out.

The Eastern Mediterranean region possesses strong wind potential and new offshore wind farms can help the electricity sector meet 2050 targets and become a zero-emission industry both in this region and the EU as a whole, ENTSO-E supported.

The development plan for offshore wind farms in the Eastern Mediterranean and Black Sea regions includes Greece, Bulgaria, Croatia, Cyprus, Italy, Romania and Slovenia.

Greece, Cyprus, Croatia, Italy and Romania have all set official offshore wind farm development targets, while Bulgaria and Slovenia have yet to do so.

Manos Manousakis (IPTO): Τime to open debate on the creation of a pan-European HVDC interconnection network

Key speaking points of the Chairman and CEO of Greek power grid operator IPTO at the ENTSO-E event on the Offshore Network Development Plan in Brussels

24/1/2024

“We need a pan-European network of high-voltage direct current (HVDC) electrical interconnections to seamlessly integrate substantial volumes of renewable energy into our power systems. This is essential for harnessing the abundant wind potential in Europe’s sea basins. We need to begin this discussion now if we want to achieve our 2050 climate targets and attain net-zero emissions”. This was stated by the Chairman and CEO of IPTO (Independent Power Transmission Operator) Manos Manousakis during a special event organized by the European Network of Transmission System Operators (ENTSO-E) to unveil the Offshore Network Development Plan, on January 23 in Brussels. High level speakers at the event included Energy Commissioner Kadri Simson and Tinne van der Straeten, the Minister of Energy of Belgium, the country holding the rotating EU Presidency for this semester.

“The time has come for vertical and horizontal electricity transmission corridors to take center stage in the public debate as they are a prerequisite for greening the energy mix, enhancing energy independence and improving the reliability of Europe’s electricity supply,” said Mr. Manousakis, noting that HVDC technology is essential due to its significant technical advantages, ensuring consistent power, voltage, and frequency, while enhancing grid stability and efficiency of the grid.

“In order to fully exploit the huge wind potential of Greece, the South of France, the North Sea, we need this infrastructure. And we need Transmission System Operators to communicate to governments the necessity of cooperation at European level to implement this infrastructure. It is time to plan the projects of the electricity corridors and the necessary interconnections between offshore wind farms in the framework of a holistic approach, considering their viability and cost-benefit ratio from a European perspective as Projects of Common European Interest, rather than bilateral projects between two states. We need to create solutions that support this policy” he said.  “Just as in Greece it is necessary to have vertical energy transmission axes from north to south, the same is required in Europe.” He cited as an example the Green Aegean Interconnector project to transfer the surplus wind potential of the Aegean Sea to the industrial centres of Central Europe.

The National Energy and Climate Plan of Greece foresees production capacity from offshore wind at 2 GW by the end of the decade and 17.3 GW by 2050. “However, our technical wind potential is much greater, and we can increase our ambition if we work together. That is why we need an integrated strategy that provides clear guidelines and appropriate tools for the planning and implementation of Europe’s electricity corridors,” concluded  IPTO’s Chairman.

IPTO submits Green Aegean proposal to ENTSO-E

Greek power grid operator IPTO has submitted a Green Aegean grid interconnection plan, envisaged to run from Greece to Germany’s south, to the ten-year development plan of ENTSO-E, promoting closer cooperation across Europe’s TSOs to support the implementation of EU energy policy and achieve Europe’s energy and climate policy objectives.

The project’s inclusion in the development plan of ENTSO-E, representing operators from all of the EU’s 27 member states, would represent a significant first step towards PCI/PMI status for the project, securing EU funding, as planned by IPTO.

IPTO prefers a HVDC-technology subsea route for the Green Aegean grid interconnection that would pass through the Adriatic Sea to Slovenia, followed by an overland route to Austria and Germany’s south.

IPTO recently held related talks with TenneT, Germany’s biggest power grid operator, and Slovenian operator ELES.

TenneT has expressed strong interest in the Green Aegean grid interconnection and the prospect of collaborating with IPTO on the project’s development for a link with Germany’s grid in the southern part of the country.

HVDC-technology enables transmission of large quantities of electricity over long distances via submarine cables, as well as fast and accurate control of power flow, enhancing grid stability.

 

IPTO seeks Green Aegean grid link’s entry into ENTSO-E plan

Greek power grid operator IPTO intends, within the next few days, to submit a Green Aegean grid interconnection plan, envisaged to run from Greece to Germany’s south, to the ten-year development plan of ENTSO-E, promoting closer cooperation across Europe’s TSOs to support the implementation of EU energy policy and achieve Europe’s energy and climate policy objectives.

The project’s inclusion in the development plan of ENTSO-E, representing operators from all of the EU’s 27 member states, would represent a significant first step towards PCI/PMI status for the project, securing EU funding, as planned by IPTO.

The Green Aegean grid interconnection project is seen as vital for channeling, further north in Europe, huge quantities of green energy that are expected to enter Greece in the coming years from the Middle East and Asia through projects such as the Saudi Greek Interconnection. The project would also allow Greece to export some of its excess domestically-produced energy.

Greek and Saudi delegations met yesterday to establish a 50-50 joint venture for the Saudi-Greek Interconnection, with IPTO and Saudi Arabia’s National Grid as shareholders.

The Greek-German Green Aegean grid interconnection; the Saudi-Greek interconnection; along with Euroasia Interconnector, planned to connect the Greek, Cypriot and Israeli grids; as well as the Greek-Egyptian GREGY grid link, all represent parts of a green-energy intercontinental axis running several thousands of kilometers and involving many individual interconnections and special purpose companies. All these initiatives share one common goal, to transport, via Greece, renewable energy from Asia and the Middle East to green energy-hungry markets of Europe’s north.

 

Greece promoting power corridors linking Europe’s north and south

Greek Prime Minister Kyriakos Mitsotakis is pushing for an expanded and reinforced European grid that would facilitate the transfer of RES-generated electricity northwards from the continent’s south, energy minister Kostas Skrekas and the Greek leader’s special adviser for energy, Nikos Tsafos have revealed at the ongoing Power & Gas Forum organized by energypress in Athens.

The plan entails developing European energy networks for the transfer of RES-generated electricity from north African and southeastern Mediterranean countries to Europe via Greece and other southern European countries.

Electricity interconnections from Egypt and Tunisia are in the pipeline but their effectiveness would depend on the development of a greater number of higher-capacity transmission lines by EU member states.

The Greek proposal is based on data provided by ENTSO-E, the European Network of Transmission System Operators, according to which an additional overall capacity of 64 GW can be added at 50 cross-border electricity interconnections in Europe between 2025 and 2030, a development that would boost the European grid’s efficiency by 55 percent.

The Greek initiative, placing emphasis on the development of electricity corridors linking the continent’s north and south, would enable more consistent green energy supply all over Europe throughout the year. At present, scattered and differing RES yields generated by wind and solar technologies in various parts of the continent have limited reach.

An upgrade of the continent’s grid would enable continual flow of RES-generated energy between European countries of the north and south, maximizing RES efficiency.

 

Ten Greek grid link, storage projects on ENTSO-E list

A total of ten Greek grid interconnection and storage projects have been included in development plans set by ENTSO-E, the European Network of Transmission System Operators for Electricity, for up to 2030 and 2040.

They include an extension to the line running to Italy, the Euroafrica and Euroasia grid interconnections, an interconnection project for the south Aegean and its possible extension to Africa, new lines connecting Greece with Bulgaria and Turkey, a pumped-storage station in Amfilohia, northwestern Greece, two Cretan interconnections, as well as the GREGY north African interconnection.

In addition to 23 GW in transboundary grid interconnections being planned in the EU by 2025, authorities have also identified the need for a further 64 GW in projects, including storage units, at 50 European borders by 2030 and 132 GW by 2024.

Overall, the ENTSO-E plan includes 141 grid interconnection projects and 23 energy storage projects.

 

Grid insufficiency issues from 2022 to 2024, ENTSO-E warns

Greece is not expected to encounter grid insufficiency issues from 2025 to 2030 but the period between 2022 and 2024 could be a concern, ENTSO-E, the European Network of Transmission System Operators for Electricity, has warned in a latest report covering Europe.

Greece has decided to withdraw most of the country’s lignite-fired power stations by 2023, ahead of the arrival of the new Ptolemaida V facility, for which finalized fuel decisions have yet to be taken, the ENTSO-E study pointed out.

The grid entry of new natural gas-fueled power stations in the second half of the decade is expected to offer equilibrium to any grid sufficiency issues, the report added.

Independent energy groups are currently planning and developing natural gas-fueled power stations, but, for the time being, a Mytilineos group unit is the only upcoming addition, planned for a launch in late 2022. All other investments are not expected to operate before 2024.

This could cause grid sufficiency issues between 2022 and 2024, if lignite-fired power stations are withdrawn without being replaced by natural gas-fueled power stations, the ENTSO-E report noted.

It also made note of Greece’s dependency on electricity imports during periods of shortages, highlighting the country’s grid is highly susceptible to extreme weather conditions. Greece will no longer be able to fully depend on electricity imports, the reported noted.

Also, the installation of batteries and pumped storage stations should not be considered a given as such investments will depend on regulatory framework conditions, ENTSO-E noted.

 

 

 

Greek market coupling with Bulgaria scheduled for May 11

Greece’s next market-coupling step, a day-ahead market link with Bulgaria, following an equivalent step with Italy in December, is scheduled to take place on May 11 as part of a wider effort by Europe’s Nominated Electricity Market Operators and Transmission System Operators for a single European day-ahead market.

Preceding trial runs, started on March 16 and planned to take place until April 30, must be successfully completed before the Greek-Bulgarian day-ahead market link is given the green light for its launch.

Automatic energy flow from the more expensive to the less expensive electricity market is expected to initially prompt a slight reduction in domestic wholesale electricity prices.

Greater price convergence between the Greek and Bulgarian markets is expected to be achieved with the introduction of a second transmission line running from Nea Santa, northeastern Greece, to Bulgaria’s Maritsa area in the south. This second line promises to greatly boost transmission potential between the two countries.

The additional transmission line was originally slated for launch in 2023, but swift progress from the Bulgarian side has increased the likelihood of an earlier delivery, mid-way through 2022, according to Greek power grid operator IPTO’s ten-year development plan (2022-2031), forwarded for public consultation at the beginning of this year.

Until now, Bulgaria has clearly been the dominant electricity exporter in trading with Greece, but this role is expected to be reversed as of 2023 because Greek electricity prices will be relatively lower, according to ICIS, a specialized news portal covering energy and related domains.

IPTO, Terna plan Greek-Italian link boost of up to 1,000 MW

Power grid operator IPTO is taking initiatives to upgrade Greece’s interconnections with neighboring countries, acknowledging transboundary grid link insufficiencies are having a negative impact whose consequences include market functional disorders and higher electricity prices.

The operator has formed working groups with all of Greece’s neighboring countries to examine the prospect of constructing or reinforcing existing interconnections.

These associations include cooperation with Italian operator Terna. The two sides, prepared to consider both an upgrade of the existing system or the development of a new one, estimate that the Greek-Italian grid interconnection requires a capacity increase of between 500 and 1,000 MW.

According to sources, IPTO and Terna have agreed to proceed with related studies for an optimal solution as soon as possible. The operators intend to reach a decision within the next few months. Any selection will need to be approved by the Greek and Italian regulatory authorities of energy.

IPTO intends to include this project in its ten-year development plan covering 2022 to 2031, expected to be presented at the end of the year.

The existing Greek-Italian electricity grid interconnection, a 163km subsea cable with a 500-MW capacity in operation since 2002, will be used to facilitate the target model’s next stage, market coupling, beginning on December 15 with the aim of harmonizing the energy markets of the two countries.

ENTSO-E, the European Network of Transmission System Operators for Electricity, has pointed out that a Greek-Italian grid interconnection boost will be needed for an effective bridging of prices between the two countries.

ENTSO-E pledges for climate-neutral, resilient, innovative European recovery

The Green Deal represents an unprecedented energy and societal transition with a massive deployment of large-scale renewable sources, innovative low carbon technologies, deeper electrification, new electrical uses, and energy system integration. ENTSO-E welcomes the European Commission’s strategy to gear all policies towards achieving a climate-neutral, resilient and innovative EU. The European TSOs stand ready to do their part to help the green recovery.

During the COVID-19 crisis, TSOs have demonstrated their unfailing solidarity and entire commitment to deliver electricity to all EU consumers and vital services. This unprecedented crisis should not deter EU and national Governments to deliver on the Green Deal as it is core to the European economic recovery. For the green recovery to be a success, ENTSO-E recommends EU policy makers to:

1/ recognize the key-enabling role of electricity TSOs in the energy system integration. As system operators, grid planners & developers, and as market facilitators, TSOs can drive Europe’s energy ecosystem towards a “system of interconnected systems” starting with the development of a multi-sectorial approach to grid planning and anticipatory investment for both onshore and offshore networks.

2/ put electrification at the heart of EU decarbonization policies. Electricity is the dominant vector for clean energy and the electricity transmission network will play a central role in achieving climate neutrality by 2050.

3/ invest in low-carbon and fit-for-purpose infrastructures and their digital “twins”. Investing in the adequate extension of the transmission network and in the “cyber physical” power system delivers value for the whole society in terms of competitiveness, resilience and sustainability. Innovation is essential and especially in areas that will help most the transformation materialize.

4/ ensure a smooth recovery of the whole electricity value chain. The lockdown measures impacted the whole electricity sector. Risk of shortage in strategic value chains and of critical materials should be monitored and addressed. This is also about strengthening Europe’s industrial and strategic autonomy.

Investing in the transmission grid helps move the energy transition forward and concretely supports Europe’s economic recovery by generating direct and indirect revenues throughout the planning and building phase, and by reducing price differentials between regions and the overall energy costs. Policy makers’ and stakeholders’ support is needed to overcome barriers to the needed extension and upgrading of the transmission power network, notably when it comes to facilitating the permitting process.

ENTSO-E and its members are committed to put their expertise at the service of decision makers to turn the EU Green Deal into reality and believe that these recommendations will contribute to the climate-neutral, resilient and innovative recovery of the European economy.

IPTO: Thessaloniki RSC headquarters for southeast Europe in July

A Regional Security Coordinator (RSC) role for Thessaloniki planned by Greek power grid operator IPTO with its Romanian and Bulgarian peers, Transelectrica and ESO-EAD, respectively, will be ready for launch, from its headquarters in the northern Greek city, in the first week of July, energypress sources have informed.

IPTO chief executive Manos Manousakis has declared the headquarters for southeast Europe’s RSC will be in Thessaloniki.

The Thessaloniki RSC plan was established by the Greek, Romanian and Bulgarian operators following years of negotiations with ENTSO-E, the European Network of Transmission System Operators for Electricity.

According to EU law, all European operators must, as of 2020, hand over a list of responsibilities to one regional security coordinator with headquarters at an EU member state.

These responsibilities include capacity calculation coordination, common network model development and regional security coordination.

Thessaloniki RSC autonomy threatened by ACER plan

A Regional Security Coordinator (RSC) for electricity in southeast Europe formed by Greece’s power grid operator IPTO with its Romanian and Bulgarian peers, Transelectrica and ESO-EAD, respectively, before Italy’s grid operator also joined and a decision was reached to establish Thessaloniki as its headquarters, is in jeopardy of losing is independence and operating as a subsidiary of a centralized unit covering all of Europe.

This plan has been proposed by ACER, Europe’s Agency for the Cooperation of Energy Regulators, energypress sources have informed.

More specifically, ENTSO-E, the European Network of Transmission System Operators for Electricity, had proposed a plan entailing the establishment of four regional centers, prompting the partnership between Greece, Bulgaria and Romania.

However, ACER now supports that new regulations call for a more coordinated solution that considers all of Europe as one security operational region. Particular regional needs could be dealt with through subsidiaries, according to ACER.

A decision is expected in April. The ACER proposal has alarmed Greek authorities as its adoption would undermine efforts made by IPTO, Greece’s power grid operator, the energy ministry and RAE, the Regulatory Authority for Energy, to establish an independent center.

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

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.

ENTSO-E releases updated electricity demand forecasts for Greece

An updated ENTSO-E (European Network of Transmission System Operators for Electricity) report anticipating Greek electricity demand levels for the next ten years offers differing results compared to a ten-year forecast presented earlier this year by IPTO, Greece’s power grid operator.

The IPTO report forecast total electricity demand in Greece would reach 52,600 GWh this year, 57,100 GWh in 2020 and 60,930 GWh in 2025.

The ENTSO-E forecast expects demand to reach 55,903 GWh in 2020 and 68,421 GWh in 2025.

As for natural gas demand, the European network forecast a steady trajectory in Greece until 2020.

EFET files complaint against Greek, Bulgarian operators

The European Federation of Energy Traders (EFET) has filed a complaint to the European Network of Transmission System Operators (ENTSO-E) against the Greek and Bulgarian power grid operators, noting that the two are restricting trans-boundary trade between the two countries.

EFET described the conduct of IPTO, Greece’s power grid operator, and ESO, its Bulgarian counterpart, as abuse of their dominant positions in natural monopolies.

The complaint filed by EFET was prompted by IPTO’s decision to ban electricity exports on January 11 and 12 and ETO’s ensuing electricity export ban, which began on January 13.

EFET noted that the trans-boundary trade restrictions imposed led to the violation of guaranteed rights concerning interconnection access.

In its complaint, the federation also pointed out that the export ban negatively impacted market players who do not have access to alternative electricity sources, prompting significant financial damages for certain producers.

This EFET complaint is the first to be filed as a result of the developments prompted by the energy crisis in early January. As a result, both IPTO and ETO are now both being closely watched by European authorities.