Ilektor named PPC Renewables partner for geothermal fields

PPC Renewables has named Ilektor, a member of the Ellaktor group, as its strategic partner for development of four geothermal fields in Greece following the completion of an older international tender that had remained stagnant.

Ilektor emerged as the highest bidder, followed by Terna Energy, for the utilization of geothermal fields in Lesvos, the Milos-Kimolos-Polyaigos island complex, Nisyros and Methana to generate electricity.

A license held by PPC Renewables’ parent company, power utility PPC, offering exclusive exploration and production rights for these geothermal fields, was recently extended by the Greek State.

Ilektor, the strategic partner, will be given a majority stake in an SPV formed by PPC Renewables for this project.

The SPV will take on financing, construction and operation of geothermal field-linked power stations with capacities of 8 MW for Lesvos and 5 MW for each of the three other areas.

PPC Renewables aims to begin geothermal exploration activities at the Milos-Kimolos-Polyaigos group of islands by the end of this year, when it is believed local communities will have been informed and offered their consent.

According to the project’s schedule, a power station fed by the Milos-Kimolos-Polyaigos field should be ready to operate by 2025.

Development of the Lesvos, Nisyros and Methana fields will be left for later on.

 

Reference prices for auction-free RES categories lowered

The energy ministry is set to sign a decision adjusting downwards reference prices for renewable energy stations not obliged to participate in competitive procedures.

This category includes small-scale hydropower stations, biomass, biogas and geothermal stations, wind energy facilities under 3 MW (6 MW for energy communities), as well as yet-to-be-launched wind energy facilities over 3 MW for which agreements were signed in 2016.

The new reference prices will apply for projects scheduled for launch and actual price settings following January 1, 2022.

Existing reference prices are based on legislation passed in 2016 and have not been adjusted since, except for wind energy facilities, which were subject to a price reduction following a related decision last year.

The forthcoming ministerial decision will seek to rationalize RES prices compensating the aforementioned RES categories, which, as a result of unique factors, are not required to participate in competitive procedures, as is the case for bigger wind energy projects as well as solar energy projects.

RES installation licenses end to shorten processing by 6 months

A plan to scrap RES project installation licenses, included in a development-focused multi-bill presented last night for public consultation, promises to reduce the overall processing time for renewable energy investments by six months.

This revision will positively impact thousands of mid-scale RES investments in the wind and solar energy domains as well as geothermal, biofuel, biogas and biomass projects, industry experts explained to energypress.

The move is seen as a first step by the government towards simplifying laws for the renewable energy sector, as it has promised, and shortening the time needed for project maturity from seven years, as is the case in Greece at present, to two years, the European benchmark.

The decision to end the need for installation licenses will accelerate procedures for various RES project categories, including wind energy projects below 60 MW with line connections up to 20km; solar energy projects with capacities of at least 2 MW; geothermal projects under 5 MW; biofuel stations under 10 MW; biogas stations under 3 MW; and biomass power stations under 10 MW.

Investment-friendly terms included in new geothermal framework

New legal framework intended to encourage investments in the geothermal sector by reducing bureaucracy through simpler geothermal field categorization procedures and greater clarity of terms and conditions has been incorporated into an energy ministry multibill headed for parliament today.

The geothermal sector’s new legal framework is intended to maximize the country’s potential in this domain.

According to the energy ministry, Greece’s geothermal fields can cover a series of energy needs such as fish farm and greenhouse heating, agricultural product drying, domestic heating and cooling, water desalination, and swimming pool heating. The sector can also play a key role in the energy independence of regions, the ministry added.

The new geothermal framework includes a 10 percent annual fee on geothermal licenses for injection into municipal coffers in regions where geothermal operations are developed.

RES sector a vital growth factor, consultant advises PPC

The main power utility PPC needs to invest in the renewable energy domain as a fundamental growth tool, consulting firm McKinsey has advised in a business plan prepared for its client.

PPC should aim for a RES capacity of 2 GW to 2.5 GW between 2030 and 2035; increase its share in this sector from 3 percent to 10 percent by 2022; represent approximately 25 percent of new RES installations for the grid; boost its EBITDA operating profit stemming from renewable energy by a level of between 73 and 84 million euros by 2022; restructure its PPC Renewables subsidiary in terms of ownership and capabilities; and set up a specialized project development team at PPC Renewables.

PPC Renewables must aim for growth not only through PPC-owned projects but also partnership ventures involving the utility’s subsidiary and other firms, the business plan notes.

The plan also calls for 1.5 to 2 billion euros of PV investments for roughly 2.2 GW of additional solar capacity; wind energy investments of 1.8 to 2.4 billion euros for a resulting additional capacity of 1.4 to 1.9 GW, biomass investments worth 1.5 to 2.1 billion euros for 0.6 to 0.8 GW, as well as geothermal investments of 2.4 to 3.2 billion euros for 0.5 to 0.7 GW.

Lesvos, Methana the launch pads for geothermal projects

PPC Renewables plans to start developing two of four geothermal fields to which the company holds exclusive exploration and utilization rights with ventures on the island Lesvos and Methana, a peninsula in northeast Peloponnese.

These starting choices, where geothermal exploration work is believed to be imminent, have a purpose. Locals on Milos and Nisyros, two other spots also being eyed, both object to geothermal development. Back in the 1980s, islanders on Milos strongly reacted against a geothermal development plan, fearing its environmental impact. However, PPC Renewables officials are now hoping this resistance of the past will ease once islanders are fully informed of technological advancements in the sector.

Besides Lesvos and Methana, PPC Renewables also intends to develop geothermal fields on Nisyros, as well as the island complex of Milos, Kimolos and Polyaegos, the Aegean Sea’s largest uninhabited island.

PPC Renewables plans to establish a strategic partnership with Helector SA, a member of the Ellaktor group, for these ventures. Helector, the winning bidder in a related tender, is expected to hold a 51 percent stake in its joint venture with PPC Renewables.

A wholly-owned subsidiary of the main power utility PPC, PPC Renewables is anticipating the signing of a ministerial decision by the energy ministry before it proceeds with the formation of its partnership with Helector.

PPC Renewables plans to develop an 8-MW geothermal power station on Lesvos and 5-MW geothermal facilities at each of the other locations.

Ministry responds to geothermal energy impact concerns

Thirty of thirty-two geothermal fields discovered in Greece so far may be utilized to greatly support production and offer significant energy cost reductions in sectors such as farming, fish farming and processing, the energy ministry has pointed out in response to environmental and tourism sector concerns expressed by a main opposition party MP over plans for geothermal development on the island Nisyros.

The energy potential offered by these geothermal fields, whose enthalpy levels are low, can also be utilized to cover household, school and hospital heating needs, the ministry added in its response to intervention by conservative New Democracy party MP Manos Konsolas, representing the Dodecanese islands.

Despite the geothermal sector’s tremendous potential for development as a renewable energy source, just a small fraction is currently being utilized at present, primarily in fields such as alternative medical tourism, as a result of legislative obstacles, according to the ministry.

A new draft bill prepared by the energy ministry promoting geothermal development is now undergoing public consultation and is soon expected to be submitted to parliament for ratification. It includes strict climate change protection regulations intended to gain the trust of local communities for geothermal utilization as a renewable energy source.

Besides Nisyros, efforts are also being made to utilize geothermal fields at Methana – a peninsula in northeast Peloponnese – Lesvos, as well as the island complex of Milos, Kimolos and Polyaegos, the Aegean Sea’s largest uninhabited island.

Officials at PPC Renewables, behind these efforts, believe the reluctance, if not outright opposition, of residents on some of the islands to the geothermal plan will ease once islanders are fully informed of technological advancements in the sector, preventing environmental impact. Locals reacted back in the 1980s against an initiative for the development of a geothermal field on Milos.

 

 

 

Ellaktor, Terna up bids for PPC Renewables geothermal tender

Two investment schemes, Helector SA, a member of the Ellaktor group, as well as a team comprised of Terna Energy and sister company Terna Aioliki Xerovouniou SA, have improved their binding second-round bids in an international tender staged by PPC Renewables for a strategic partner in the installation of power stations to utilize four geothermal fields.

PPC Renewables, which holds the operating rights to these fields, requested increased bids from the tender’s participants. A supervisory committee is expected, within the next few days, to deliver its results to the PPC Renewables board, which will then decide.

PPC Renewables, a wholly-owned subsidiary of the main power utility PPC, is aiming for swift progress in its quest for a strategic partner and the establishment of a finalized partnership agreement as soon as possible.

PPC Renewables is aiming to utilize geothermal fields at Methana – a peninsula in northeast Peloponnese – the islands Lesvos and Nisyros, as well as the island complex of Milos, Kimolos and Polyaegos, the Aegean Sea’s largest uninhabited island.

PPC Renewables plans to establish a joint venture with its prospective strategic partner to develop geothermal power stations of at least 8 MW on Lesvos and 5 MW at each of the other locations.

PPC Renewables intends to soon launch exploratory drilling procedures at its own expense. These drilling endeavors are planned to run concurrently with the ongoing selection process for a strategic partner.

Officials at PPC Renewables believe the reluctance, if not outright opposition, of residents on some of the islands to the geothermal plan will ease once islanders are fully informed of technological advancements in the sector, preventing environmental impact. Locals reacted back in the 1980s against an initiative for the development of a geothermal field on Milos.

 

 

 

 

Ellaktor, Terna left in PPC Renewables geothermal tender

Two investment schemes, Helector SA, a member of the Ellaktor group, as well as a team comprised of Terna Energy and sister company Terna Aioliki Xerovouniou SA, have submitted binding second-round bids to an international tender staged by PPC Renewables for a strategic partner in the installation of power stations to utilize four geothermal fields.

The tender’s deadline for second-round offers expired on June 1. A total of six teams had expressed first-round interest.

Besides Helector and the Terna Energy-Terna Aioliki Xerovouniou team, Enel Green Power Hellas, France’s Storengy, KS Orka from Singapore, as well as Zorlu-Turboden, a Turkish-Italian joint venture, also participated in the first round.

PPC Renewables, a wholly-owned subsidiary of the main power utility PPC, is aiming for swift progress in its quest for a strategic partner and the establishment of a finalized partnership agreement as soon as possible.

PPC Renewables plans to establish a joint venture with its prospective strategic partner to develop geothermal power stations of at least 8 MW on Lesbos and 5 MW at each of the other locations.

PPC Renewables intends to soon launch exploratory drilling procedures at its own expense. These drilling endeavors are planned to run concurrently with the ongoing selection process for a strategic partner.

Officials at PPC Renewables believe the reluctance, if not outright opposition, of residents on some of the islands to the geothermal plan will subside once islanders are fully informed of technological advancements in the sector, preventing environmental impact. Locals reacted back in the 1980s against an initiative for the development of a geothermal field on Milos.

 

 

PPC Renewables aiming for development of 700 MW in 2018-19

Looking forward to RES auctions scheduled for this coming April, PPC Renewables aims to develop 700 MW in RES capacity over the next two years, primarily in the wind and photovoltaic energy domains.

PPC Renewables intends to begin with 18 wind and small hydropower projects totaling 90 MW and budgeted at 114 million euros. Their financing was secured just weeks ago by the European Invetsment Bank.

PPC Renewables will be taking part in the energy ministry’s upcoming RES auctions backed by a strong portfolio comprised of wind and photovoltaic projects in various parts of Greece. These include 30 MW in Karditsa, 10 MW in Kefalonia and 4.5 MW in Tinos.

PPC Renewables is also currently examining buying stakes in existing licenses, locally and especially abroad, to develop projects with partners. Albania, Kosovo and Ukraine appear to be the foreign markets being targeted for projects with capacities ranging between 1 and 2 MW to begin with. The EBRD and World Bank, financing green projects in developing markets, appear likely to participate in these investments.

Besides its plans to develop mature projects, PPC Renewables is also considering working on projects of medium maturity, for completion by 2020. These projects, which include investments in the wind, geothermal and biomass sectors, possess a total capacity of 244 MW and are budgeted at 430 million euros in total.

PPC Renewables is also in the process of gaining a license for a 200-MW photovoltaic project budgeted at 160 million euros, which the firm expects to develop by 2020.

The firm is also planning to develop geothermal facilities on the island Santorini as joint projects with the local municipality. A tender staged by PPC Renewables in search of a strategic partner to co-develop geothermal fields in Methana, Lesvos, Nisyros, Milos, Kimolos and Polyaigos is currently in progress. Six participants face an end-of-January deadline to submit their binding offers. PPC Renewables is expected to have named its strategic partner by March.

Ilias Monaholias, the head official at PPC Renewables, admitted feeling perplexed by a concern over geothermal development expressed on the islands Nisyros and Milos. “It is difficult for me to understand why other islands fear geothermal development when Santorini does not,” Monaholias remarked.

PPC Renewables planning 7 subsidiaries to cover RES field

PPC Renewables, a wholly owned subsidiary of main power utility PPC, plans to establish seven new specialized subsidiaries with the aim of developing various types of RES projects. Private investors will be given the opportunity to acquire stakes of as much as 51 percent in these ventures.

The seven new subsidiaries, or Special Purpose Vehicles (SPVs), will each focus on specific categories such as projects abroad, wind farm installations, biomass and geothermal electricity production, the board at PPC has decided. The plan is expected to be approved at an upcoming PPC Renewables shareholders’ meeting.

Through these SPVs, PPC Renewables will seek to benefit from the greater capacity enjoyed by private-sector enterprises in financing, construction and exploitation of energy project opportunities.

Depending on the nature of each project, PPC Renewables will – when it deems necessary –  establish joint ventures with private-sector partners to be offered stakes of as much as 51 percent.

Business prospects being considered by PPC Renewables through the prospective subsidiaries include development of RES projects in Kosovo and and Turkey; wind farms with, for example, firms already holding licenses; construction of a major 100-MW wind farm – budgeted at 160 million euros – in the Rodopi area, northeastern Greece; as well as the development of biomass, biogas and geothermal faciilities.

 

PPC Renewables geothermal tender draws 7 major bidders

An international tender staged by PPC Renewables in search of a strategic partner to assist in the development, for electricity generation, of geothermal fields in Lesbos, Nisyros, Milos, Kymolos (Polyaigo) and Methana has drawn a total of seven major local and foreign bidders to the competition’s first round.

PPC Renewables, a wholly owned subsidiary of the main power utility PPC, holds exclusive exploration and explotation rights to these fields.

Enel Green Power Hellas, the Greek subsidiary of major Italian renewable energy company Enel; Ilektor, a member of the Ellaktor group; Terna Energy; France’s Storengy; Zorlu-Turboden, a Turkish-Italian joint venture; Turkey’s Maren; and KS Orka from Singapore, all submitted first-round bids.

PPC Renewables is aiming for a swift selection procedure and will strive to have signed an agreement with its strategic partner within the current year.

A partnership will be established with the preferred bidder for the development of a geothermal station on Lesbos possessing a capacity of at least 8 MW, while 5-MW stations are planned for each of the other aforementioned geothermal fields.

If upcoming exploration activities – to be conducted independently by PPC Renewables, concurrently with the tender – indicate that greater potential exists, then station capacities will be boosted.

PPC believes that the reluctance, if not outright opposition, of residents on some of the islands to the geothermal plan will be overcome once islanders are fully informed on technological progress made in the sector, preventing environmental impact. Locals revolted back in the 80s when an effort was made to develop a geothermal field on Milos.

Meanwhile, earlier this week, PPC Renewables signed a Memorandum of Understanding with China’s Sumec Group, a member of the China National Machinery Industry Corporation (Sinomach), for collaboration in Greece and the wider Balkan region.

Besides taking on projects in Greece, this agreement could enable the Chinese firm to enter Balkan markets for various projects, including development of wind farms and PV facilities. The first signs of this collaboration may emerge before the end of this year.

 

Geothermal energy development pivotal in PPC Renewables plan

Bad moves by PPC Renewables in the past have limited the company’s RES market share to just 3 percent, Manolis Panagiotakis, chief executive at parent company PPC, the main power utility, has pointed out.

A recently appointed new board at PPC Renewables appears determined to rectify the firm’s faults committed in the past and establish better prospects for the subsidiary.

As was recently reported by energypress, the fresh PPC Renewables board aims to triple the renewable energy firm’s installed capacity over the next three years.

A business plan is currently being worked on to establish a strategic objective that may elevate PPC Renewables as a key player, if not the market leader, in Greece’s RES market, PPC’s chief executive Manolis Panagiotakis recently told Greek Parliament, while stressing the energy sub-sector’s future prospects.

The development of geothermal technology is expected to play a pivotal role, the PPC boss noted, while also pointing out the major prospects in this field for the Cyclades islands and, possibly, further south.

The energy supply model in the region promises to be reshaped, Panagiotakis noted, adding that geothermal technology, combined with other measures, could end the region’s high-cost dependence on fuel, diesel and mazut for electricity generation.

The PPC boss pointed out the utility’s unsuccessful investment of 62 million euros on geothermal technology research in previous decades, while adding that, despite the setback, he remains optimistic on the domain’s prospects for the Cyclades and possibly beyond.

Major foreign corporations, including Enel, Ormat and Mitsubishi, have expressed an interest in helping develop the country’s geothermal energy potential.