Mytilineos secures €400m EIB loan for swifter RES growth

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

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

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

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

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

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

HAEE’s roundup of COP28 climate conference in Dubai

 

HAEE proudly and actively participated in #COP28 by powering up the future at Greece’s first-ever Pavilion, organizing the Side Event “Outlook of the Greek Energy Sector towards 2030”. We would like to thank our esteemed panel speakers, visionary leaders and guests who graced us with their presence or watched online and shared their insights on Greece’s accelerated transition away from fossil fuels, analyzed the latest reoriented policies, practices and investment priorities to deliver outcomes, protecting people, livelihoods, and ecosystems.

Let us share a roundup of what we witnessed on the ground at COP28:

On 13/12/2023, at the United Nations Climate Change Conference COP28 in Dubai, after intense overnight negotiations on whether the outcome would include a call to “phase down” or “phase out” fossil fuels, almost 200 nations reached an Agreement, to transition away from fossil fuels, while the negotiators set their commitments to triple renewables capacity and double energy efficiency by 2030, so as to achieve net zero by 2050.

COP28 adopted a decision on the outcome of the first global stocktake, which is a two-year process to assess progress on mitigation, adaptation and climate finance, and design the way forward. The parties recognised that, by 2030, global greenhouse gas (GHG) emissions have to be reduced by 43% below 1990 levels to restrict global warming to 1.5 °C, and committed to accelerating action in the current decade.

The Draft decision of COP28 – CMA.5 “Outcome of the first global stocktake” is now available here

An Agreement on the operationalisation of the Loss and Damage Fund was also decided. The fund will initially be hosted by the World Bank and It has received over US$700 million in pledges, with Germany and the United Arab Emirates offering US$100 million each .

The involved parties further adopted a framework adaptation, accompanied with 2030 targets for all parties to: conduct impact, vulnerability and risk assessments; adopt and implement adaptation plans and policy instruments; and set up monitoring, evaluation and learning systems for their national adaptation efforts.

After two weeks of intense discussions, the Deal that was reached in Dubai sends a strong statement to investors and decision-makers alike about the global community’s intention to move away from fossil fuels, something scientists say is the best chance to prevent a global warming disaster.

Let’s keep pushing boundaries and working towards a sustainable and brighter future!

Key uptakes of HAEE’s Side Event, at COP28

Let’s now deep dive into a micro-level and the insightful discussion we enjoyed on the 5th of December under the topic “Outlook of the Greek Energy Sector towards 2030” at HAEE’s Side Event that took place in the Greek Pavilion. The dynamic dialogue between esteemed speakers and visionary leaders was focused on the global, European, and Greek energy landscapes, the energy industry innovation, the impacts of Energy Transition and the ways of communicating the energy transition in a new climate narrative.

As Ms. Ditte Juul Jørgensen, Director General for Energy, European Commission, mentioned, the international community has prioritized the exponential deployment of renewables and energy efficiency improvements by 2030 to meet the collective goal of the Paris Agreement to keep warming well below 2°C and phase down or even phase out fossil fuels by mid-century. To that end, and after the initiation of the EU, 123 countries have signed the Global Renewables and Energy Efficiency Pledge, underlying the close link between the climate and energy objectives. As we step into the future, Greece has already re-introduced its goals and position to achieve or event to overcome EU’s climate obligations and emission target reductions, aiming to decarbonize its economy and transform itself into an energy hub in Southeastern Europe and the Western Balkans.

In the wake of the Russo-Ukrainian war and as the EU is decoupling from Russia’s energy supply, Greece is playing a critical role in securing Europe’s energy resilience through the Southern Gas Corridor, the TAP pipeline and other infrastructure projects such as the expansion of the Revithousa Terminal, the completion of the IGB pipeline and the commissioning of Alexandroupolis FSRU.

On top of that, as H.E. Geoffrey Pyatt, Assistant Secretary, Bureau of Energy Resources, U.S. Department of State, highlighted the overhaul of Alexandroupolis FSRU into a Western Balkans’, regional, emblematic Project. Greece’s connectivity moves in two strategic directions; one is to the Western Balkans, by helping the EU-aspiring countries to reduce their dependence on Russian energy and to the Mediterranean through the US, Greece, Cyprus, Israel and Egypt cooperation, to build a regional connection on gas, electricity through the interconnectors or even green hydrogen, aiming to build a future energy system which is not vulnerable to one supplier, which is economically competitive but also meet the climate targets.

Ms. Alexandra Sdoukou, Deputy Minister of Environment and Energy, Hellenic Republic confirmed that over the last years, Greece has transitioned into an exporting country of gas—mainly from the US— new interconnections are in progress, and RES have the potential to dominate the future energy mix, increasing the attractiveness of the Greek energy sector to potential investors, shaping sustainable business strategies and fostering a resilient future for the country.

Mr. Bertrand Piccard, Initiator and Chairman, Solarimpulse Foundation pointed out that the momentum to change the narrative of the economies’ and energy system’s decarbonization is now. There is a climate emergency, but also an economic emergency to switch to renewable energy and implement the necessary policy measures to save natural resources. The goal of authorities, academics, policy-makers and the relevant stakeholders has not to be the decarbonization with the sacrifice of the future generation, but to modernize the world, by making it efficient and profitable for the current generation. In that case, decarbonization will be the result of modernization.

Mr. Roman Kramarchuk, Head of Future Energy Analytics, S&P Global – Commodity Insights, commented that S&P energy markets’ “Green Rule Scenario” involves cooperation, cross-country support, and sharing of technologies as prerequisites, to achieve three times renewable. Market mechanisms such as PPA or corporate voluntary carbon markets are driving the change since corporate buyers are now willing to be able to demonstrate that they can operate sustainably and become policy-makers of their own right, supported by governments. This is a paradigm of multiple actors initiating for a common goal, the goal of achieving net-zero.

The political will exists, the technology exists, and the market mechanisms are ready to be implemented. Our focus should be on informing, motivating, engaging people and communities toward the energy transition.

HAEE is looking forward to next year’s event, COP29 which will take place in Baku, Azerbaijan, in November 2024 with the hope of a much more optimistic climate outlook!

Presenting our Chart of the Month Vol. 20, in the Side Event organized by the HAEE team and the Hellenic Ministry of Environment and Energy at the Greek Pavillion in COP28, is the epitome of ending the year on a high note! This special edition gives a more detailed outlook of the Greek energy market towards 2030 and 2050 through various topics encircling energy.

Based on the revised Greek NECP, key milestones and targets for the energy transition of the Greek energy market are presented across specific subtopics such as the future RES and energy storage developments, the Natural Gas landscape in Greece, the future outlook of the interconnections, as well as opportunities in innovative technologies like CCUS and Hydrogen production.

Special focus is placed on important topics that form the pillars of Greece’s strategy for the energy transition. One such topic is the development of offshore wind parks in the Aegean and Ionian Seas. The first such pilot project was recently announced in Alexandroupolis with capacity of 600 MW. Additionally, in Alexandroupolis, another interesting project, the FSRU terminal, is expected to become operational in 2024.

Finally, we explore the investment landscape of Greece which is thriving with a recently upgraded investment grade and forecasts of surpassing EU growth rates. Significant funding inflows via RRF and REPowerEU promise a bright future for the sector. Favorable conditions for both traditional and emerging renewable energy technologies, alongside pivotal infrastructure developments, position Greece as a key player in Europe‘s energy independence, with the overall ambition of transforming Greece into an energy hub for Europe.

IEA: Green transition progress made but long way to go

Greece has made remarkable progress in its effort to end the country’s reliance on fossil fuels but still has a long way to go to achieve goals set, according to an International Energy Agency report due to be published tomorrow.

The IEA report, focused on Greece and the government’s effort to end the country’s reliance on fossil fuels, includes a series of recommendations and practices that have been implemented in other countries.

It highlights Athens’ progress towards a green transition and complete decarbonization and also provides a set of energy-policy recommendations and practices to help Greece reach its targets faster.

Greece has set a target to reduce greenhouse gas emissions by 55 percent by 2030 and reach zero emissions by 2050.

The measures proposed in the forthcoming IEA report are intended to offer guidance making Greece’s transition towards an efficient and flexible zero-carbon energy system as smooth as possible.

The effort will need to include a further significant reduction in the country’s reliance on lignite and also set a binding target ending lignite-based energy production by 2028, at the latest, according to the IEA report.

Significant progress has been achieved in renewable energy installations, which covered 20 percent of the country’s energy demand in 2021 and rose even higher in 2022, but much remains to be done, the report will note.

According to a global analysis published by IEA report a month ago, energy-related emissions around the world rose by 0.9 percent last year, reaching 36.8 billion tons. Carbon dioxide emissions increased by 1.6 percent, while diesel emissions rose by 2.5 percent but remained at pre-pandemic levels.

European effort for energy cost solutions well underway

European discussion for electricity market reforms that could lead to permanent solutions for lower-cost energy by detaching the cost of electricity from natural gas is well underway.

European Commission authorities, institutions, major enterprises and other electricity market players are currently putting forward proposals until December, when Brussels is expected to issue its own proposal for consultation, as has just been noted by Mechthild Wörsdörfer, deputy director general for the European Commission’s Directorate-General for Energy.

Discussion for longer-term reforms is planned to continue in February and March. Reforms will need to be approved by the European Parliament, as well as by the Energy Council of Ministers, in order to become binding.

The overall approach is based on a proposal forwarded by Pantelis Kapros, Professor of Energy Economics at the National Technical University of Athens, supporting the need for remuneration of renewable energy, as well as electricity production generated by other low-emission technologies, such as nuclear, to be based on actual cost through long-term agreements rather than through the day-ahead market, whose levels are determined by wholesale market prices.

According to Kapros’ proposal, wholesale market prices should be used to determine remuneration levels for fossil fuel-based energy production technologies (coal, lignite, natural gas) as well as hydropower facilities with water reserves and energy storage units.

Big 2030 RES, energy storage target boosts for revised NECP

The energy ministry is preparing to set even more ambitious renewable energy and storage targets for 2030 through the country’s National Energy and Climate Plan, currently being revised as part of national and EU plans aiming to diminish reliance on fossil fuels, especially Russian natural gas.

The energy ministry is expected to set a total RES capacity target of between 25 and 30 GW for 2030, an objective that could be achieved with new wind and solar energy installations, as well as development of hydropower stations.

At present, RES facilities already operating in Greece offer a total capacity of 10 GW, meaning renewable energy projects producing an additional overall capacity of up to 20 GW will need to be developed over the next eight years if the energy ministry’s anticipated RES target boost in the revised NECP for 2030 is to be achieved.

Greece’s revised NECP will also include a major energy storage capacity boost to between 5 and 8 GW by 2030, well above the present target of 1.5 GW, through a portfolio comprising batteries and pumped storage stations.

Also, the 2030 target for the RES sector’s share of the country’s energy mix is expected to be increased to 80 percent from the current NECP target of 65 percent.

‘Repower EU’ plan aims for RES growth in place of Russian gas

Repower EU, the European Commission’s roadmap for ending the EU’s reliance on Russian natural gas, features a key role for renewable energy, now not only expected to reduce fossil fuel-based electricity generation but to also significantly contribute to green hydrogen production, which is planned to replace natural gas in a wide range of uses.

The European Commission intends, through Repower EU, to accelerate the EU’s existing Fit for 55 plan, aiming for a 55 percent reduction of carbon emissions by 2030, compared to 1990 levels. Green electricity generation units incorporated into this framework are expected to offer annual natural gas consumption savings of 170 bcm.

Brussels plans to boost the EU’s installed wind and solar facilities by 80 GW to support green hydrogen production.

“Twenty million tons of hydrogen can replace 50 bcm of Russian natural gas,” noted Frans Timmermans, Executive Vice President of the European Commission for the European Green Deal, during the presentation of the Repower EU roadmap.

Licensing procedures will need to be simplified for the development of new RES projects, the Repower EU plan stresses.

Fossil fuel subsidies exceed amount for renewables in 2019, EC report shows

Greece spent one percent of GDP on fossil fuel subsidies in 2019, exceeding the 0.9 percent level allotted for renewable energy subsidies, a European Commission report published yesterday has shown.

However, fossil fuel subsidies in Greece are on a downward trajectory whereas subsidies for the RES sector and energy efficiency are steadily rising, the report added.

Of 1.6 billion euros made available for fossil fuel subsidies in 2019, the biggest percentage concerned diesel and petroleum products, the remainder going to the natural gas and lignite sectors.

Energy source subsidies in the EU totaled 176 billion euros in 2019, up 8 percent from 2015, the report noted.

Subsidies for energy efficiency increased during this period by 43 percent to 5 billion euros while subsidies for energy production increased by just 4 percent to 3 billion euros, primarily for renewables, the Brussels report showed.

 

 

 

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.

Brussels fears electricity prices could reignite Euroscepticism

The European Commission is pressing for an antidote to counter the sharp rise in electricity prices around Europe, fearing a prolonged period of escalated prices could spark a new wave of Euroscepticism that would put EU citizens at odds with the continent’s energy transition plan, a key Brussels climate-action strategy.

Allegations of market manipulation and doubled CO2 emission right prices since the beginning of the year, at 59.43 euros per ton yesterday, have reinforced the overall reaction against the EU’s energy policy, placing governments under pressure and fueling unrest.

With fears growing of a resurgence in France’s yellow vest movement, the European Commission is seeking to convince citizens that the Emissions Trading System (ETS), a cornerstone of the EU’s green-energy transition policy, is not the cause of the electricity price rises, instead laying the blame on natural gas and fossil fuels.

European Commission president Ursula von der Leyen, in her State of the Union Address, delivered yesterday, was clearly distressed by the situation, offering strong support for the European Green Deal. But, judging by the overall response, she has not appeased the concerns about rising energy prices.

The president’s thinking was reiterated by her deputy Frans Timmermans, in charge of the European Commission’s climate action portfolio, according to whom, only one-fifth of the electricity price increases can be attributed to the elevated CO2 emission rights prices.

 

 

EU’s ‘Fit for 55’ package to spike heating, auto fuel costs

The EU’s new, more ambitious climate-change package, “Fit for 55”, aiming for a 55 percent reduction of carbon emissions by 2030, compared to 1990 levels, will prompt sharp price increases in diesel heating fuel costs as well as fossil-fuel powered transportation.

The prospective package, announced yesterday in the form of twelve legislative proposals, has already raised the question as to who will cover its cost – consumers, producers, or both.

The package will lead to wider implementation of the ETS for buildings and transportation.

Inevitably, less affluent households and smaller enterprises whose heating and transporation needs are exclusively covered by fossil fuels will face even greater pressure.

The European Commission has proposed a 61 percent reduction of carbon emissions from sectors covered in the EU’s existing Emissions Trading System (ETS), compared to 2005 levels, up from the previous target of 43 percent.

PPC turn to renewable energy backed by BNEF report findings

Wind and solar energy production costs will be lower than those of existing natural gas-fueled power stations by 2025, according to a BloombergNEF analysis on Greece’s electricity market.

The projection vindicates the power utility PPC’s decision to turn to renewable energy, the corporation’s head has indicated.

“The conclusions of the BNEF report are in full agreement with the key pillars of our new strategy,” PPC’s chief executive Giorgos Stassis said.

Installed wind and solar energy capacity will have quadrupled by 2025 compared to present levels, and renewable energy sources will have captured an energy mix share of nearly 50 percent, toppling fossil fuel from its dominant position, even if RES subsidies are not offered for existing technologies such as solar and wind, according to the BNEF analysis.

“The ever-increasing competitiveness of renewable energy sources also confirms, from an economic point of view, our choice to restructure our portfolio and transition our production towards renewable energy sources,” Stassis noted. “By focusing on clean energy, we can achieve a decarbonization of our activities in electricity generation and also reduce the cost of electricity for consumers.”

In addition, the report highlights the important role of consumers as key players in the future energy system, the PPC chief noted.

This supports PPC’s decision to develop a new customer-oriented approach and offer a reinforced portfolio of products and services, using new technologies and digital systems, according to Stassis.

Utilizing lower generation costs offered by wind and solar energy production, PPC will be well positioned for leading roles in other energy sectors, beginning with electromobility, the PPC head supported.

According to the BNEF report, Greece can establish itself as one of the EU’s energy transition leaders.

Lower-cost solar and wind energy production, as well as storage systems, plus increased CO2 emission right costs, are all radically transforming the country’s energy system, the BNEF report noted.

Greece is expected to gain an additional 18 GW in generation capacity by 2030, 67 percent of this increased output represented by wind and solar energy.

RES generation in EU captures record share of energy mix

Renewable energy generation captured a record-high 35 percent share of the EU’s energy mix in the fourth quarter of 2019, up from 31 percent a year earlier, primarily as a result of record generation levels registered by the hydropower and wind energy sectors, latest European Commission data has shown.

Hydropower production rose significantly, by over 16 TWh year to year, while major gains were achieved by the wind energy sector, whose onshore wind farms grew by 9 TWh, or 9 percent year to year, and offshore wind farms registered a record year-to-year increase of 3.3 TWh, 18 percent.

Overall RES generation in December totaled 105 TWh, a new record level for the month, as a result of favorable conditions for wind farms and record hydropower production levels.

On the contrary, the energy mix share of fossil fuel fell to 39 percent in the fourth quarter of 2019, down from 42 percent a year earlier.

Greenhouse gas emissions in EU electricity generation fell by approximately 12 percent in 2019 as a result of the increase in RES production and a turn from coal to gas.

CO2 emission right costs increased by 57 percent year to year, to 25 euros per ton, according to the European Commission data.