eu

German-French nuclear dispute delaying capacity mechanism

Posted on by admin

Greek government efforts for the establishment of a capacity mechanism concerning gas-fueled power stations have been bogged down, indefinitely, by a long-running dispute between France and Germany over nuclear energy. Paris is seeking to secure a greater role for nuclear energy in the European Union’s energy revamp.

According to reliable sources, this nuclear dispute is the only unresolved issue and one remaining obstacle to the EU adopting a new set of regulations for its electricity market reforms. A text for the reforms was established at an Energy Council of EU energy ministers in June.

The new set of regulations, in the context of capacity availability mechanisms, includes a provision enabling remuneration for gas-fueled power plant availability, if these plants meet required technical specifications. The text also permits the implementation of a mechanism rewarding such power plants for flexibility.

According to the same sources, developments on these mechanisms are expected later this month, under the shadow of the German-French nuclear energy dispute, which has derailed any schedule that may still exist for the EU’s electricity market reforms.

Berlin has expressed a preference for these reforms to be completed following the EU elections next June, while Paris, in response, has demanded no less than a partial agreement before the end of 2023.

 

Brussels forecasts lower gas prices, concerned about oil

Posted on by admin

The European Commission has projected energy prices falling at a slower rate for the remainder of 2023 before rising again in 2024, especially for oil prices.

Brussels made its forecast before OPEC+ announced it would extend production cuts until the end of this year, which pushed the price of Brent up to a level of 90 dollars per barrel.

As for electricity and natural gas prices, the European Commission report notes prices have fallen since spring.

For the third quarter of 2023, the European Commission expects price levels to be 21 percent lower for natural gas and 25 percent lower for electricity, compared to its previous estimates.

Brussels has forecast an electricity price average of 109 euros per MWh in 2023 and 140 euros per MWh in 2024, down from 130 and 160 euros per MWh, respectively, in its spring report. This revision was attributed to a rapid expansion of liquefaction terminals on the continent and full gas storage facilities.

The Brussels report projects economic growth of 0.8 percent this year in the Eurozone and the EU, slightly below a previous 1 percent growth forecast, while economic growth in 2024 is seen reaching 1.3 percent, down from 1.6 percent projected in the spring report.

The German economy, Europe’s biggest, is now seen contracting by 0.4 percent this year, rather than growing 0.2 percent, as was previously projected.

EU industrial production fell by 1.1 percent in the second quarter of 2023, compared with the previous quarter, despite falling energy prices, the Brussels report noted.

Focus on germanium, antimony mining, vital mineral resources

Posted on by admin

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.

Greece among EU’s top 5 RES producers in first half of 2023

Posted on by admin

Greece was among the EU’s top five renewable energy producers in the first half of 2023, while Europe’s solar energy market has experienced a period of significant growth in recent years, a recent study from the energy think-tank Ember has shown.

A total of 17 EU member states achieved record RES energy-mix shares in the first half of 2023, according to the study. RES output in Greece and Romania represented more than 50 percent of the overall energy production levels for both countries, unprecedented for both, the study highlighted.

Also, Denmark and Portugal achieved a significant milestone, with their renewable energy output surpassing the 75 percent mark for the first time, the Ember study revealed.

In another first, wind and solar energy output exceeded 30 percent of the EU’s overall energy production in May and June, according to the study.

As for newly installed RES capacity during the first half of 2023, compared to the equivalent period a year earlier, the Ember study showed an acceleration in RES penetration, particularly notable in the PV sector.

Following 2022’s record performance for PV installations in the EU, which totaled 33 GW, the momentum continued through the first half of 2023. Germany was the EU’s best performer, installing 6.5 GW in PV capacity during the first six months this year, a 10 percent increase. Poland followed with 2 GW, a 17 percent increase, and Belgium ranked third with 1.2 GW, a 19 percent increase.

Electricity subsidies total €9.2bn over past 2 years

Posted on by admin

Electricity consumers in Greece have received over 9.2 billion euros in subsidies over the past two years, the EU’s sixth highest amount, as a percentage of GDP, a support effort that has been instrumental in Greece’s battle to mitigate the impact of rising electricity prices on its population, the energy ministry has informed.

Greece has steadily recorded variable-tariff electricity price levels below the European average, especially since the summer of 2022, when the energy crisis began to take full force, and, subsequently, has ranked as one of Europe’s lowest-cost countries for retail energy, the energy ministry added, referring to regular data published by HEPI, Europe’s Household Energy Price Index.

The government’s electricity subsidies policy has continued to produce tangible results for consumers in Greece, protecting society and the economy, the ministry noted.

A subsidy-funding mechanism withholding windfall earnings of power producers in the wholesale market, and the suspension of indexation clauses in electricity bills, have both been extended until December 31 in order to assess the situation in international energy markets over the coming months and decide accordingly on the necessity of emergency measures, the ministry noted.

During this period, the ministry will also establish a suitable framework enabling suppliers to better inform consumers on products, while also promoting transparency and price-comparing ability, it added.

Greece’s greenhouse gas emissions down 8.3% in Q1

Posted on by admin

Greece’s greenhouse gas emissions fell by 8.3 percent in the first quarter of 2023, the fourth-largest drop in the EU, according to data published by Eurostat.

Bulgaria registered the EU’s biggest greenhouse gas emissions reduction in the first quarter, down 15.2 percent, followed by Estonia (14.7%) and Slovenia (9.6%).

The biggest increases in greenhouse gas emissions were registered by Ireland, up 9.1 percent, Latvia (7.5%) and Slovakia (1.9%).

Overall, the EU’s greenhouse gas emissions fell by 2.9 percent in the first quarter, dropping to 941 million tons from 969 million tons.

Households were the biggest polluters as they were responsible for 24 percent of the EU’s greenhouse gas emissions in the first quarter, followed by the industrial sector (20%), electricity and natural gas sectors (19%), agriculture (13%) and transportation (10%).

Revised Nabucco pipeline hopes fade, Sofia drops pro-Turkish stance

Posted on by admin

A Russian initiative to establish Turkey as a central gas hub, through a revival of a revised version of the old Nabucco project plan, as the transitional government in Bulgaria had attempted to do last spring, appears to have hit an impasse and is unlikely to progress further.

Under the leadership of Bulgarian Prime Minister Nikolai Denkov, who assumed office in June, the new government in Sofia has veered away from the pro-Turkish stance of its predecessor. Instead, it has embraced a more pro-Western orientation in the realm of energy policy.

Also, the European Commission has not shown any interest to financially support the project, dubbed Solidarity Ring.

The ambitious plan had received the backing of certain political circles in Bulgaria keen to exploit Azerbaijan President Ilham Aliyev’s intention to more-than-double his country’s gas exports to the EU from 11 to 27 bcm by 2027.

Bulgaria, Romania, Hungary and Slovakia signed an MoU in Sofia in early May, in the presence of Aliyev, for increased gas supply to central Europe via the Solidarity Ring route.

However, talks in support of this gas pipeline project have ceased, despite its supposed intention to help end Europe’s energy reliance on Russia, EU sources have informed.

Athens, along with other major international energy players, contributed to this impasse. In a letter forwarded to the European Commission in May, Athens noted the project would degrade Greece’s role on the international energy map, upgrade Turkey’s, and serve Russia’s efforts to regain access into the European market, indirectly, by supplying Russian gas as Azeri gas.

This is possible as the Solidarity Ring would bypass Greece and follow a Turkish-Bulgarian-Romanian-Hungarian-Slovakian route into central Europe, meaning Ankara could use Turk Stream, the Russian pipeline running through Turkey, to feed Solidarity Ring.

 

Eurogas: Energy crisis threat not yet over for Europe

Posted on by admin

The energy-crisis threat on the continent has not yet passed, despite lower prices, according to Didier Holleaux, chairman of Eurogas and vice-president of France’s Engie, who has warned that the risks will remain for at least the next four winters, and, in doing so, advised authorities, governments and organizations to avoid complacency.

EUROGAS is a European organization involving the participation of a significant number of major energy companies from all over the EU.

Europe managed to overcome the threat of energy shortages last winter, while a sharp fall in natural gas prices over the past six months has provided a welcome respite for consumers.

European contracts at the Dutch TTF hub are currently being established at levels of between 20 and 30 euros per MWh, just a fraction of last August’s peak of 340 euros per MWh, prompted by a drastic cutback in supply of Russian pipeline gas.

Over the past year, EU officials have adopted a series of measures to reduce natural gas prices. Holleaux, in comments to Natural Gas World, warned that last year’s unusually mild winter was the catalyst behind the price reductions.

He acknowledged the European Commission’s gas storage requirements for EU member states also played a role in subduing prices in Europe, adding, however, that current prices remain considerably higher than levels that were regarded as normal prior to the pandemic.

Energy-intensive electricity demand down in Europe

Posted on by admin

The International Energy Agency has issued a report projected a drop in global electricity demand this year, especially in Europe, where demand is seen falling for a second consecutive year to a two-decade low.

The agency expects electricity demand in the EU to drop by 3 percent in 2023, the rate at which it had also fallen in 2022.

IEA’s anticipated electricity demand reduction for the EU indicates Europe’s energy-intensive industries have yet to make a recovery following last year’s drop in production levels, as highlighted by a 6 percent slump in the EU’s overall electricity demand during the first half of 2023.

The IEA report notes that a drop in high-voltage industrial electricity demand, not milder weather conditions, is the main factor behind the EU’s reduction in power demand.

Many industrial producers reduced or stopped production in 2022, the IEA report noted. Primary aluminium (-12%), crude steel (-10%), paper (-6%) and chemicals (-5%) were among the energy-intensive sectors that significantly reduced production in 2022 due to plant closures and production cuts, according to the IEA report.

Declining domestic chemical production led to Europe becoming a net importer of chemicals in 2022, as key industry players such as BASF and OCI reduced production in the region.

The fertilizer industry is also experiencing a sharp decline with major European producers such as Yara and Grupa Azoty cutting back production of ammonia, urea, nitrates and NPK (nitrogen, phosphorus and potassium) fertilizers.

Steel production in Europe has fallen significantly as companies such as ArcelorMittal have temporarily closed furnaces in France, Poland, Spain and Germany.

Aluminium producers have been severely affected by increased electricity prices given the industry’s electricity intensity, with several companies such as Speira GmbH and Alro reducing production.

 

Motor Oil, Titan CCS grants step towards value chain

Posted on by admin

Energy group Motor Oil and cement producer TITAN have been selected for EU Innovation Fund grants, supporting innovative low-carbon technologies, for respective carbon capture and storage (CCS) initiatives taken by the two corporate groups.

Their selections promise to create opportunities for synergies and the development of a domestic value chain in the CCS sector.

For example, an annual sum of 1.9 million tons of CO2 to be captured at TITAN’s production facility in Viotia’s Kamari area, slightly northwest of Athens, will benefit Energean’s CCS project at its depleted offshore oil fields in the northern part of the Aegean Sea.

The Prinos CCS also stands to gain from Innovation Fund selection for cement industry Holcim’s production facility in Croatia, as Prinos is the nearest CCS facility. On a larger scale, the Prinos CCS can develop into southeast Europe’s first CCS facility catering to industry.

Motor Oil’s Iris project, concerning carbon capture at the energy group’s Oil’s refinery in Corinth, west of Athens, has been selected for a 127 million-euro Innovation Fund grant, it has just been announced.

This development gives Motor Oil the opportunity to greatly reduce its carbon footprint, produce 56,000 tons of blue hydrogen annually, and prepare the groundwork for e-fuel production, through the development and operation of a new low-carbon synthetic methanol production plant.

TITAN’s Ifestos carbon capture project, also just selected for an Innovation Fund grant, will enable the group to produce approximately 3 million tons of zero-carbon cement on an annual basis.

EuroAsia Interconnector funds threatened by project delays

Posted on by admin

EU authorities appear to have issued a strict warning to Cyprus over major delays in binding scheduling terms for EuroAsia Interconnector, a project of strategic importance planned to interconnect the Greek, Cypriot and Israeli power grids.

According to sources, the EU has warned the Cypriot government that if appropriate decisions are not taken immediately to ensure that the project can be put back on track, then a decision offering 657 million euros worth of Connecting Europe Facility (CEF) funding for the PCI-listed project would need to be reviewed.

In response, Cypriot president Nikos Christodoulides held an emergency meeting last Friday with Nasos Ktorides, CEO of the EuroAsia Interconnector consortium, and the country’s energy minister George Papanastasiou.

Though no official announcements have been made, Cypriot press has reported that the government intends to engage directly and vigorously at the highest political level to secure the planned funding for the project.

Delays include Greek power grid operator IPTO’s entry into the EuroAsia Interconnector consortium with a 25 percent stake. A strategic agreement was announced at the end of June but the matter has not progressed further as due diligence remains unfinished.

The EU has insisted on IPTO’s participation as, on the one hand, the project will be connected to the Greek operator’s networks in Crete, and on the other, IPTO, it is believed, would ensure the project’s technical integrity and operational viability.

EuroAsia Interconnector has also been held back by the consortium’s delay in signing a contract with Norwegian company Nexans, to manufacture the project’s subsea cable.

This delay threatens to deprive EuroAsia Interconnector of its intended production slot at Nexans because the manufacturer faces high demand for cables from countries such as Germany and the Baltic countries as a result of Russia’s war in Ukraine.

 

 

 

GEK Terna, Copelouzos join forces for offshore wind farm studies

Posted on by admin

GEK Terna and the Copelouzos group are joining forces for common survey work concerning two respective pilot-project offshore wind farms close to Alexandroupoli, in the country’s northeast, energypress sources have informed.

The two corporate groups have decided to merge their survey efforts for these projects as their respective production licenses concern the installation of offshore wind facilities in Alexandroupoli’s same wider offshore area, marked out by the government, following a recommendation by the relevant authority, EDEYEP, the the Hellenic Hydrocarbons and Energy Resources Management Company.

The pilot offshore wind farms to be installed off Alexandroupoli will offer a total capacity of 600 MW, slightly below the sum of two separate production licenses held by GEK Terna and the Copelouzos group, for 485 MW and 216 MW, respectively.

The synergy between the two groups concerns geophysical and geotechnical studies on the composition of the seabed, collection of wind data, as well as studies related to the logistics chain and an electrical interconnection that will be built in order to transfer energy produced to the land and the transmission grid.

The two groups expect their joint survey effort to be completed within 12 to 16 months from now. They aim to launch both offshore wind farms before the end of this decade.

The projects will be developed through an EU go-to-areas scheme designed to accelerate green-energy project development as a means of ending Europe’s reliance on natural gas as soon as possible.

Minor revisions to new NECP, aligned with European targets

Posted on by admin

Greece’s new National Energy and Climate Plan, passed on by the caretaker government’s energy minister Pantelis Kapros to the re-elected conservative New Democracy party’s new energy minister Theodoros Skylakakis, includes mild adjustments aligning the plan to EU targets but no major changes, energypress sources have informed.

“Together, with Mrs. [Alexandra] Sdoukou, [the ministry’s secretary general, in the previous and new energy ministry] and the other officials, we assembled a team and drafted a pending NECP plan. The work, of course, had been done during the ministerial term of Konstantinos Skrekas. An initial text was authored, as the deadline is on June 30,” Kapros noted.

Minor revisions to a draft originally announced in January have been made, without any change of direction, including for the role of natural gas in the energy mix, or distribution of RES technologies, the sources noted.

The amendments were prompted by revised EU targets seeking greater RES penetration and energy savings, the sources added.

The EU energy-mix target for the RES sector has been raised to 42.5 percent from 40 percent, still lower than a 45 percent target ratified by European Parliament.

The European Commission, driven by Russia’s war on Ukraine, had proposed a European energy savings target of 14 percent, up from 9 percent, before European Parliament ratified a target of 13 percent and an agreement for 11.7 percent was finally set.

It remains unclear if Skylakakis, Greece’s newly appointed energy minister, will move swiftly to forward the revised NECP draft to Brussels by the June 30 deadline or opt to hold on to it for a few more days.

 

EU member states not ready to abandon emergency measures

Posted on by admin

Most, if not all, EU member states are troubled by a European Commission decision reached earlier this month to not permit extensions of emergency energy-crisis measures beyond March, 2024, as they still do not feel secure enough to be left without market protection, despite the drop in natural gas prices at the TTF index to relatively normal levels.

A number of EU member states, among them Spain, Portugal and Romania, have already decided to extend their emergency measures until the end of 2023. Greece has extended its emergency measures until September.

Meanwhile, European energy companies are applying pressure on their respective governments, as well as the EU’s leadership, to lift the range of energy-crisis protection measures introduced over the past year to year-and-a-half in order to rid themselves of market distortions and side effects.

Electricity companies feel that prices have returned to satisfactory levels and are convinced measures such as a price cap on the remuneration of electricity producers are now proving detrimental.

EU member states are not expected to reach any new decisions during summer but will reassess their respective situations as of September. Their governments generally believe energy prices remain susceptible to the slightest of market adversities, as was the case recently, towards mid-June.

 

EU adopts Greek proposals for price protection, flexibility

Posted on by admin

The Energy Council of EU energy ministers, which convened yesterday, has adopted two Greek proposals, a mechanism offering protection against energy price increases as well as a flexibility mechanism for gas-fueled power plants, the Greek energy ministry has announced.

The price protection mechanism, supported by Greece, Spain and allies, on the matter, represents the continuation of a windfall earnings recovery mechanism in the wholesale electricity market. If triggered, amounts collected through the mechanism would be used to subsidize consumer electricity bills.

This mechanism had been adopted by the European Commission last year, based on a Greek model, before it was applied by member states with some variation.

Also, within the framework of the EU’s capacity availability mechanisms, energy ministers included a provision allowing availability-related fees for gas-fueled power stations if they meet required technical specifications. This provision will enable a flexibility mechanism to be applied.

Spain, Greece want windfall recovery mechanism continued

Posted on by admin

Greece and Spain, part of a group of EU member states seeking to reestablish a common front against any new energy crisis, intend to call for the continuation of a windfall earnings recovery mechanism in the wholesale electricity market when EU energy ministers meet on June 19 to discuss a new structure for the bloc’s energy market.

The European Commission last year adopted a windfall earnings recovery mechanism that was essentially based on a Greek model before it was applied by member states with some variation.

The Spanish government and the country’s energy minister Teresa Ribera want a recovery mechanism included in the European electricity market’s new structure and activated whenever any price crisis breaks out.

The proposal has already received support from Greece, to be represented at next Tuesday’s meeting by the interim government’s energy minister Pantelis Kapros, and a number of other EU member states.

This group of member states is now working on establishing a united stance on the recovery mechanism ahead of next week’s meeting.

It remains to be seen if the alliance will be strong enough to convince Brussels to include the mechanism in its plan for the new market structure.

Some EU member states remain concerned about the possibility of a new energy crisis despite EU gas storage facilities being 60 percent full and a  continual inflow of LNG at European ports.

 

 

PCI/PMI list preliminary ratings out, GREGY a borderline case

Posted on by admin

The European Commission’s Directorate-General for Energy, preparing a shortlist of electricity projects for a sixth PMI/PCI list, including Projects of Mutual Interest and Projects of Common Interest, has just staged a teleconference with representatives of projects vying for a place on the list.

As for the PMI list, the Brussels officials, in addition to preliminary ratings for candidate projects, also presented their criteria and formula applied for appraisals.

The presentation of these details was necessary as, under the revised TEN-E Regulation, new PMI selection criteria are being used for the first time for projects also involving non-EU members.

According to energypress sources, the GAP Interconnector, an Egyptian-Cretan power grid interconnection project plan been promoted by the Eunice group, was not appraised, as had been expected, because it has not secured Letters of Support from the Greek state.

GREGY, another Greek-Egyptian grid interconnection plan, which is being promoted by the Copelouzos group, was given a preliminary rating of 9.3, just below the 10-level score required for inclusion on the PMI list.

GREGY project officials have until June 30, when the PMI shortlist will be announced, to enhance their project’s dossier with additional details that could boost its rating and secure a place on the PMI shortlist. Copelouzos group officials are confident this can be achieved.

The Euroasia Interconnector, planned to link the Israeli, Cypriot and Greek power grids, has amassed the points needed to secure its inclusion on the PMI shortlist.

A total of five European projects, two of these with Greek interests, have achieved preliminary scores offering places on the PCI shortlist.

One of the two Greek projects, Terna Energy’s pumped-storage station project plan for Amfilohia, northwestern Greece, was included on the EU’s PCI list in 2013, while all indications suggest it will retain its place on the list’s sixth edition.

The Eunice group’s Ptolemaida BESS, a 250-MW energy storage facility planned for Ptolemaida, northern Greece, has scored highly for a place on the revised PCI shortlist.

Temporary solution for DESFA tariffs, new WACC level still not set

Posted on by admin

Gas grid operator DESFA’s WACC figure for the next regulatory period, covering 2024 to 2027, remains undetermined, while, furthermore, a final decision by the operator on its tariffs for this four-year period will be subject to two outstanding issues, DESFA’s operating expenses and the socialization cost-coverage percentage at its Revythoussa LNG terminal.

RAAEY, the Regulatory Authority for Waste, Energy and Water, has requested additional information from DESFA concerning its operating expenses for the next regulatory period in order to calculate the operator’s allowed revenue.

As for the socialization rate at DESFA’s Revythoussa LNG terminal, RAAEY has proposed keeping it unchanged at 50 percent for the 2024-2027 regulatory period.

Based on EU terms, DESFA’s tariffs ought to have been set by June 5, ahead of international tenders, on July 3, to offer capacities at three gas grid interconnections.

Consequently, in order to meet this deadline, DESFA has set provisional tariffs based on the WACC level it has proposed, 9.14 percent.

These tariffs have been uploaded onto the platform for national grid users so that they can have a rough idea on network usage fees when preparing bids for capacity reservations.

Europe falling behind North America in energy transition race

Posted on by admin

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.

Coal-fired power plants rank as EU’s biggest polluters

Posted on by admin

Greenhouse gas emissions rose by 6 percent in the EU’s ETS in 2022, compared to 2021, but remained lower than levels recorded in pre-pandemic 20219, a new study by energy thinktank Ember has shown.

Though coal-related emissions are on a downward trajectory, coal was responsible for over 60 percent of emissions in EU electricity generation last year, according to the study.

The EU’s ten biggest polluters are coal-fired power plants – most of these are located in Poland and Germany – and were responsible for 25 percent of the energy sector’s emissions in 2022, according to the Ember study.

Greece recorded a marginal 0.1 percent increase in overall greenhouse gas emissions, while the country’s lignite-fired power plant emissions increased by 1.1 percent in 2022.

Greece was ranked low in terms of green energy’s share of the energy mix, which reached 43 percent in 2022. Lignite-fired electricity production’s share of the energy mix reached 10.4 percent in Greece last year, the study showed.

Over the past six years, three energy companies have ranked as the EU’s biggest greenhouse gas emitters, these being Germany’s RWE, Poland’s PGE and the Czech Republic’s EPH, the study showed.

RWE topped this list in 2022 with 75 Mt CO2e, a 3 percent increase compared to 2021. Greek power utility PPC emitted 15.9 Mt CO2 in 2022.

EU’s RES installations in ’22 climb to record level

Posted on by admin

Wind and solar energy installations reached a record level in the EU last year, adding 57 GW to the continent’s grid, a 16 percent year-on-year rise, according to a European Commission report for the fourth quarter in 2022.

These increased RES installations helped renewable energy capture an increased share of the EU’s energy mix in 2022, rising 39 percent, up from 38 percent in 2021, the Brussels 4Q report showed.

Solar energy output rose by 26 percent in 2022, offering an additional 41 TWh, onshore wind farm generation increased by 10 percent, or 33 TWh, while offshore wind farm production grew by 4 percent, delivering an additional 2 TWh to Europe’s grid.

Solar and wind energy’s combined output in 2022 rose by 14 percent, offering an additional 76 TWh, according to the report.

Hydropower generation fell by 17 percent, or 61 TWh, as a result of dominant drought periods in a number of European countries during 2022.

Nuclear energy generation was also down in the EU last year, falling 17 percent, or 118 TWh, as a result of disruptions and facility maintenance delays in France.

The European Power Benchmark, the continent’s average wholesale baseload electricity price, rose 121 percent in 2022 compared to a year earlier, reaching 230 euros per MWh, the 4Q report showed.

Italy recorded Europe’s highest average wholesale electricity price in 2022, at 304 euros per MWh, followed by Malta, at 294 euros per MWh, Greece, at 279 euros per MWh, and France, at 275 euros per MWh, the European Commission report noted.

Europe favorably placed ahead of next winter’s gas storage refill

Posted on by admin

Favorable conditions last winter have placed Europe in an advantageous position of being able to fill, to full capacity, its natural gas storage facilities even if Russian supply is completely cut off.

Europe needs to store away approximately 35 billion cubic meters of natural gas between now and the end of October, well below the average figure of roughly 55 bcm over the past decade, in order to fill its energy storage facilities at 90 percent of capacity, the European goal set for next winter.

A year ago, Europe needed to purchase approximately 70 bcm of natural gas to fill its storage facilities. This was one of the factors that pushed prices up to all-time highs.

Fortune went Europe’s way last winter as temperatures remained mostly mild, significantly subduing energy usage, while China’s zero-Covid policy enabled the continent to import substantial LNG quantities which, otherwise, would not have been available.

As a result of these factors, Europe’s gas storage facilities were left 55 percent full by the end of last winter, well above the previous decade’s average of 33 percent.

Despite the favorable news for Europe, the market remains susceptible to dangers as a result of increased natural gas usage in the industrial sector and revitalized demand in Asia, factors that have led analysts to forecast a wholesale gas price rebound that could exceed 100 euros per MWh.

Also, the milder weather conditions could have negative impact in the long run. Low rainfall and snowfall in many parts of Europe could lead to a hot and dry summer, increasing energy demand for cooling purposes, and prices. This could make Europe’s energy-storage refilling effort slightly more challenging.

Ministry preparing updated, more ambitious NECP draft

Posted on by admin

The energy ministry is preparing a Brussels-bound draft of an updated National Energy and Climate Plan to include more ambitious RES and energy savings targets, based on loftier goals agreed to by the EU, energypress sources have informed.

The ministry intends to soon forward its draft of Greece’s revised NECP to the European Commission for any observations and resulting adjustments. The resulting updated version of the NECP will then be presented for consultation.

Greece’s revised NECP will include a higher RES target, lifted to 42.5 percent of total energy consumed, the new European target, which is above a previous target of 40 percent but below a 45 percent target that had been overwhelmingly approved in European Parliament.

The country’s updated NECP will also include an energy savings target of 11.7 percent, the European goal that was eventually agreed to following negotiations to raise a previous goal of 9 percent to 14 percent and a European Parliament vote proposing a 13 percent target.

Greek-Egyptian GREGY grid link prospects face crucial period

Posted on by admin

A Memorandum of Understanding for the entry of Greek power grid operator IPTO into the equity make-up of Elica, a subsidiary of the Copelouzos group established to promote the 3.5 billion-euro Greek-Egyptian GREGY Interconnector, along with a corresponding move expected from the Egyptian operator EETC, undoubtedly represent votes of confidence for the project.

The interest shown by the two operators to become stakeholders in the GREGY Interconnector project boosts its development prospects ahead of an EU announcement, in June, of a shortlist of projects seeking PCI/PMI list inclusion for the next two years.

Three studies crucial to the development of the GREGY Interconnector, promising to transmit green energy to Europe, are planned to be commissioned over the next couple of months.

One of the three studies will focus on technical details, a second will examine the project’s financial aspects, while a third study, a challenging seabed mapping procedure to scan the project’s underwater setting over a distance of 954 kilometers, will take no less than six months to complete. Weather conditions will play a big role in this third study’s duration.

If all goes according to plan, a final investment decision sanctioning the project’s development is expected within 2024.

1st Hydrogen & Green Gases Forum, an energypress event, June 23

Posted on by admin

The widespread promotion of Renewable Gas and especially green Hydrogen by the European Union, which has taken the form of legislative and regulatory decisions, while also resulting in funding tools, converges with the sector’s business activity and rapid technological developments.

Greece, at present, is in the process of developing a national strategy for Hydrogen, while many scientific and business initiatives aspire to play a role in the future, which, in some cases, is already here.

Within this context, the energypress team is organizing the 1st Hydrogen & Green Gases Forum on June 23, 2023, at the Wyndham Grand Athens hotel, an event aiming to become the annual benchmark for the industry.

As is the case with all other Forums organized by energypress, the Hydrogen & Green Gases Forum will essentially serve as a working conference rather than a “celebratory” event. This means that a group of politicians from Greece and abroad, sector officials, scientists, academics, as well as representatives of institutions and businesses will seek to delve deep into all issues arising in connection with the present and future of Hydrogen and Green Gases, a crucial sector.

Forum’s main themes:

  • EU policies and decisions
  • Adjustment initiatives in Greece
  • Hydrogen readiness – Networks
  • Hydrogen mobility – Transportation
  • Industry – Flagship investment plans in Greece
  • Technological developments and challenges

The forum will take place with in-person speakers (online participation is also possible) and conference participants. 

For further information and the event’s sponsorship program contact: Maria Delli, 2108217446, mariadelli@energypress.gr

 

Local firms move with caution ahead of joint EU gas purchases

Posted on by admin

Local electricity producers, suppliers and traders are examining final details in preparation for a first round of joint EU natural gas purchases ahead of next winter, through a related platform launched today.

The platform, AggregateEU, a joint purchasing service designed to facilitate common natural gas purchases as a means of keeping prices lower by preventing bidding rivalry between companies based in fellow EU member states, will remain open to applications for a week, until May 2.

In comments to energypress, officials of companies intending to place orders through the platform said they remain cautious and are seeking clarification on various details, including commitments and the extent of potential benefits, or more specifically, price levels that can be achieved through joint orders compared to prices if ordering alone.

In any case, local companies will seek to contribute to the initiative’s common European gas orders.

The Greek energy ministry held a related meeting towards the end of January to discuss the initiative with market players. Energy company officials representing power utility PPC, DEPA Commercial, Mytilineos, Elpedison, Heron and Prometheus Gas, as well as EVIKEN, the Association of Industrial Energy Consumers, took part.

EU authorities plan to stage common gas purchases every two months over the next year.

 

 

Gas firms requested to store away 7.5 TWh total this year

Posted on by admin

RAE, the Regulatory Authority for Energy, has requested natural gas suppliers to start storing away gas quantities ahead of next winter, based on EU energy-security provisions, energypress sources have informed.

The authority aims to encourage companies to make the most of current favorable terms in international gas markets. Gas price levels are currently far lower than they have been during the energy crisis, so quantities required for storage can be secured at competitive prices.

RAE is believed to have informed gas companies that a total of 7.5 TWh will need to be stored away in 2023. The country’s gas importers, DEPA Commercial, Mytilineos, Elpedison, Heron, power utility PPC and Prometheus Gas will need to take on the responsibility of securing this 7.5 TWh quantity.

An EU regulation set last year requires member states without – or without sufficient – domestic gas storage facilities to store away gas quantities representing 15 percent of the previous five-year average of annual gas usage by November 1 at existing storage facilities maintained by fellow member states.

Bulgaria’s underground Chiren gas storage facility appears to be short of space to accommodate Greek gas orders, meaning Greek importers will need to turn to costlier Italian and French alternatives, along with the FSU on the islet Revythoussa, just off Athens.

Annual gas usage in Greece averaged 61.1 TWh between 2018 and 2022, meaning that a 15 percent proportion works out to 9.2 TWh. RAE deducted 1.7 TWh for alternate purposes, resulting in its 7.5-TWh figure set for this year.

Contrary to last year, companies are not expected to be compensated for any leftover gas quantities. Also, gas companies will need to assume all gas transportation and storage costs, to ultimately be passed on to consumers.

Gas companies have already expressed complaints, calling the storage requirement and its related obligations an unfeasible, high-cost plan. They are seeking revisions.

 

Short-term EU action curbing crisis effects sought by Greece

Posted on by admin

European Commission proposals for electricity market reforms as well as gas supply security measures ahead of next winter will be the focus of attention at a European Council summit of EU leaders later this week, planned for March 23 and 24, as well as at an upcoming EU Energy Council, scheduled for March 28.

According to energypress sources, Greek officials are approaching these sessions with a mostly favorable view of the European Commission’s proposed framework of measures, while pointing out, however, that they do not offer solutions but rather set defense strategies in the event of further crises.

Given this stance, Greek officials, at both upcoming meetings, intend to support the need for short-term measures aimed at curbing the effects of the energy crisis and contend that the European proposals are too timid.

As for the segment of upcoming talks to focus on European electricity market reforms, Greek officials will promote the establishment of a European fund, which they believe is necessary to provide state guarantees for CfDs and other European Commission proposals such as hedging.

The absence of such support would limit the benefits of measures proposed by Brussels to EU member states possessing sufficient fiscal leeway and marginalize all other member states, Greek officials believe.

The possibility of extending, into next winter, a voluntary objective for reducing gas demand will be among the topics to be discussed at next week’s EU Energy Council. The European Commission has proposed extending this voluntary goal to March, 2024. It was originally set to run from August 1, 2022 to March 31, 2023.

NECP adjusted to meet loftier EU aim for energy usage drop

Posted on by admin

The Greek government has adjusted its National Energy and Climate Plan (NECP), setting a loftier energy consumption reduction goal that aligns the plan with an even more ambitious EU target just set.

Greece has now set a loftier 8 percent energy consumption reduction goal, compared to 2020, by the end of the decade, while the EU, through a provisional agreement reached by the European Council Presidency and Members of the European Parliament, is aiming for an overall 11.7 percent drop by 2030, compared to 2020, above the target of a 9 percent reduction that was set in 2021.

The 11.7 percent reduction goal, at EU level, is a binding target and means EU consumers will need to limit annual energy usage to the equivalent of 763 million tons of oil by the end of this decade.

The EU reduction target is not proportionally shared by member states but, instead, takes into account their capacity to limit respective consumption, a realistic approach offering a certain degree of flexibility.

Greek authorities intend to intensify the country’s energy-efficiency drive concerning buildings, further promote smart management of energy consumption, and maintain efforts aiming to reshape consumer behavior for an overall reduction of energy demand.