Grant Thornton

Energy exchange PPA platform proposal by end of the month

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A Greek energy exchange proposal for the formation of a platform facilitating green-energy power purchase agreements is expected to be delivered to the energy ministry within the next two to three weeks, energypress sources have informed.

The energy exchange’s proposal will be forwarded to the ministry once joint research with professional services firm Grant Thornton is completed and the study’s findings have been considered. The search for a standardized format for PPAs is a key issue of the research.

Banks have also expressed preferences and become involved in the process.

The European Federation of Energy Traders long ago established a template for corporate PPAs, but, according to Greek energy exchange sources, this model contains several issues that need to be addressed.

Once a finalized format has been prepared, it will be rediscussed with banks, to play a crucial role in the success of the PPA platform and PPAs, in general.

Grant Thornton: Aggressive bidding likely in BESS tender

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Very low, aggressive bids are highly likely, without being the dominant feature, in an ongoing tender for battery energy storage systems (BESS), according to a Grant Thornton report on the process, the first of three segments.

Most participants will operate within reasonable and expected limits based on the existing data, the Grant Thornton report, just published, noted.

RAAEY, the Regulatory Authority for Waste, Energy and Water, is expected to publish a provisional list of selected and excluded tender participants on August 3, ahead of a finalized list of successful bidders by August 10.

The ongoing tender for energy storage systems has turned out to be a challenging exercise as participants have been called upon to solve and financially model complex issues, the Grant Thornton report pointed out.

Auction participants who can achieve economies of scale or benefit from a centralized sourcing strategy will establish a significant cost advantage over smaller participants, the report noted.

Also, many participants can be expected to break their bids into smaller projects in order to secure a place on the shortlist, it added.

Most revenue will come from the balancing market and the Ancillary Services Market in the early years of battery operation, the report noted.

In addition, strong competition and technological improvements will lead to a reduction in system costs in the medium term, the Grant Thornton report projected.

A total of 96 bids representing a total capacity of 3.3 GW have been submitted to the tender’s first phase.

 

Energy exchange platform for PPAs standardized with some flexibility

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Procedures leading to the establishment of an Energy Exchange platform hosting green-energy power purchase agreements (PPAs) have restarted following a short break of a few weeks.

Though still at a preliminary stage, the procedure has already indicated that the PPA platform being prepared by an energy exchange working group will offer largely standardized terms as a means of fostering agreements, especially during the platform’s early stage, while also offering some degree of flexibility, as too much rigidity could hamper agreements.

As a next step, the working group intends to focus on two other key aspects, one concerning aggregation details and the other whether bids submitted should be binding or not. Further ahead, tools related to risk management and clearing capability will be looked at.

The energy exchange’s leadership, newly appointed, is now examining a related recommendation delivered by Grant Thornton, serving as the exchange’s consultant on the new platform.

The energy exchange is also looking at comments and observations provided by participants of a related consultation procedure staged by RAE, the Regulatory Authority for Energy.

In addition, the energy exchange is preparing to distribute a questionnaire to prospective PPA platform participants, the aim being to cater to market needs as best as possible.

Once finalized, the PPA platform must be approved by RAE. If given the green light, the energy exchange’s administration will need to proceed with the search for an information system provider, a major stage in the process of setting up the PPA platform.

Crete added to first-round list of offshore wind farm areas

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Crete will be included on a list of regions selected for first-round development of offshore wind farms, planned to offer an installed capacity of 2 GW by 2030, joining Alexandroupoli, in northeastern Greece, already chosen by the energy ministry through a legislative procedure, Alexandra Sdoukou, the ministry’s secretary-general, has revealed at an industry conference.

No further details were given on the Cretan offshore area to be chosen for the first-round development of offshore wind farms, through licenses offered at auction.

One or two more offshore areas, already identified, will be added to the list of Organized Offshore Wind Farm Development Areas (POAYAP), Sdoukou informed the event. However, the energy ministry official did not name these areas, noting she could not elaborate as related talks with respective local authorities were still in progress.

Sdoukou noted the 2030 target will be to mobilize private investment of 6.3 billion euros, when referring to the results of research conducted by consultancy group Grant Thornton on the added value for the national economy to result from this new RES sub-sector.

Of these funds, 4.3 billion euros will flow directly into the domestic economy, creating up to 8,220 new jobs by the end of this decade, she added.

During the creation of an institutional framework for offshore wind farms, Sdoukou commissioned a team of experts to survey the Greek seas, as a covert operation, with assistance from the foreign affairs, defence and tourism ministries, she told the conference.

It was organized by the Hellenic Hydrocarbons and Energy Resources Management Company (HEREMA/EDEYEP), the Greek Wind Energy Association (ELETAEN), and Grant Thornton, under the auspices of the energy ministry.

 

 

At least four binding bids seen in HEDNO 49% privatization

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Four consortiums have been established involving most, if not all, of the nine participants through to the second round of a sale offering a 49 percent stake in distribution network operator DEDDIE/HEDNO, a subsidiary of power utility PPC, indicating that at least four binding offers can be expected, when these are submitted within August, sources monitoring the procedure have informed.

All nine qualifiers have been assessing DEDDIE/HEDNO’s technical and financial data, the sources said.

At its most recent session, PPC’s board approved a plan for the transfer of the group’s electricity distribution assets to DEDDIE/HEDNO.

Also, PPC has commissioned professional services company Grant Thorton for the asset evaluation process, expected in August.

The privatization’s nine second-round qualifiers are:

ARDIAN Infrastructure Funds

BCI – British Columbia Investment Management Corporation

BLACKROCK – BlackRock Alternatives Management, L.L.C

CVC Capital Partners – Advisers Company, S.a.r.l

F2i – Fondi Italiani per le Infrastructure SGR S.p.A

First Sentier Investors EDIF III GP S.a.r.l

KKR – Kohlberg Kravis Roberts & Co. L.P.

MACQUARIE Group Limited

OHA – Oak Hill Advisors LLP

Grant Thornton Hellas developing Greek offshore wind farm framework

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Business adviser Grant Thornton Hellas, commissioned and funded by the European Bank for Reconstruction and Development, has taken on the development of an institutional, legal and regulatory framework for offshore wind farms in Greece, in support of an overall effort being made by the energy ministry, energypress sources have informed.

Grant Thornton Hellas has already received an assortment of proposals, including on spatial and licensing matters, from interested parties, among them ELETAEN (Greek Wind Energy Association), ESIAPE (Greek Association of Renewable Energy Source Electricity Producers), EDEY (Greek Hydrocarbon Management Company), and IPTO (power grid operator).

Grant Thornton Hellas intends to also examine frameworks developed by other countries for their offshore wind farm sectors.

The energy ministry is striving to finalize the Greek framework’s key sections by June, as has been announced by ministry officials, or, at the very latest, within the summer, ahead of legislative procedures by the government.

A high-level plan, the framework’s nucleus, is planned to be completed within May so that legislative procedures can take place in June, sources said.

To serve as a road map, the high-level plan will need to provide details on: the selection criteria to be applied when choosing offshore areas to host initial projects; licensing steps for investors; the agency to be given responsibility of the licensing and project maturity processes; and the timing of auctions for tariffs.