greece

Saudi Greek Interconnection study based on Egypt route

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A feasibility study to be conducted by Saudi Greek Interconnection, an SPV established by Greek power grid operator IPTO and Saudi Arabia’s National Grid for a prospective electricity interconnection linking Greece and Saudi Arabia, is widely expected to be based on a longer route via Egyptian territory, bypassing Israel, as a result of frosty relations between Saudi Arabia and Israel that have not shown any signs of improvement for the foreseeable future.

Though a joint announcement released by IPTO and National Grid earlier this week makes no reference to the project’s route or transit countries to be included in the feasibility study, Israel’s exclusion from the plan has become a common secret.

Egypt’s inclusion as an alternative route to Israel makes the project more complex, but it remains feasible from a technical point of view, experts ascertain.

The project’s feasibility studies, expected to be completed in the first quarter of 2025, will be based on HVDC technology, considered ideal for long-distance grid interconnections.

HVDC technology, ensuring consistent power, voltage, and frequency, while enhancing grid stability efficiency, is being used for the Athens-Crete grid link.

It is still too early to make any estimates on the cost of the Saudi Greek Interconnection as the project’s capacity has yet to be specified.

This will depend on the volume of sales agreements Saudi Arabia can establish with end buyers in Europe for the country’s production of renewable energy. Saudi Arabia’s sunny weather conditions all year round promise great solar energy production potential at relatively low prices.

PPAs at levels of roughly 10.4 dollars per MWh, unheard of in the international solar energy market, were signed in Saudi Arabia just months ago, according to recent reports.

Saudi Arabia aims to establish itself as a major exporter of low-cost solar energy to Europe and achieve net zero emissions by 2060.

Grant Thornton takes on Green Aegean cost-benefit analysis

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Greek Power grid operator IPTO has commissioned accountancy and advisory services firm Grant Thornton to conduct a cost-benefit analysis on the Green Aegean electrical grid interconnection project, envisaged to stretch from Greece to Germany’s south and provide a transportation corridor for RES output.

The analysis, an important step towards the project ’s further development, is expected to be completed later this year, by September or October. It will provide detailed information on crucial questions concerning whether the project can be deemed viable or not.

These questions include whether RES output will also be let out in Slovenia and Croatia or just Greece and Germany; as well as whether the project will be equipped with two or four cables.

In addition, the study will provide a template for a regulatory framework needed for the project’s operation; specify the project’s potential benefits for Greece and Germany; and offer an evaluation of the project under various scenarios.

Though an investment decision is still a long way off, IPTO wants specific figures offering investment clarity, based on specifications of similar European projects.

Green Aegean is planned to offer a 3-GW capacity for electricity transmission with potential for a further boost to as much as 9 GW.

The project’s initial budget has been estimated at between 8 and 14 billion euros, depending on the route’s specifics. An Adriatic Sea crossing from Greece to Slovenia, followed by an overland route to Austria and Germany’s south is currently envisaged.

Existing project data suggests energy consumers in Greece stand to benefit. The project’s launch has been slated for 2035.

 

Supply chain promise signaled by Greek-Norwegian RES deal

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Greek steel company Lykomitros Steel has reached an agreement with Norway’s Moreld Ocean Wind, one of the world’s leading offshore floating wind farm designers, for a first order of floats, highlighting the opportunities available to domestic industry.

The two companies have signed an MOU concerning production, at the Greek manufacturer’s facilities, just outside Volos, of batches of floats for offshore floating wind farms to be supplied by the Norwegian company to customers around Europe who are entering this rapidly developing, yet still high-cost, nascent RES technology.

In essence, the Norwegian company has reached an agreement with Lykomitros Steel, already supplying floats for offshore wind projects in Scotland, France and Germany, to “jointly carry out the first floating European projects”, Moreld Ocean Wind’s CEO Wolfgang Wandl noted in a joint statement.

The development demonstrates that Greek industry can play a role in the establishment of a domestic supply chain if it can continue securing orders for floats concerning projects in the North Sea and other regions abroad.

The MOU between Lykomitros Steel and Moreld Ocean Wind was signed earlier this week at the Norwegian Embassy in Athens, in the presence of Norway’s deputy minister of foreign affairs Maria Varteressian, who was in Athens for the 9th edition of the “Our Ocean Conference”.

Government pursuing Egypt carbon emissions storage plan

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The Greek government is pursuing the prospect of transporting and storing CO2 emission quantities beyond the EU, in Egypt, as part of a plan to help local industries reduce their carbon footprint through carbon capture and storage (CCS) solutions.

Athens has reached out to the European Commission for a revision of its industrial emissions management strategy that could permit storage of captured CO2 in countries outside the EU.

The Greek government supports that the geology in Europe’s south differs from that in the north, meaning that geological structures suitable for CO2 storage in Mediterranean countries are scarce.

The prospect of Greek industries utilizing carbon emissions storage infrastructure to be developed in Egypt has been extensively discussed at recent meetings between the governments of the two countries.

These talks have been constructive and established firm ground for further cooperation between Greece and Egypt in the CCS sector, amongst other fields, sources told energypress.

Greece’s carbon emissions are estimated to total 15 million tons, annually, well above the storage capacity of the prospective Prinos CCS project planned by Energean in the country’s north. This project is expected to offer a carbon storage capacity of between 3 and 4 million tons.

GREGY Interconnector plans split route to also serve Italy

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Elica, a subsidiary formed by the Copelouzos group to promote the Greek-Egyptian GREGY Interconnector, promising transportation of Egyptian renewable energy production to Europe, plans to add Italy as a direct recipient in addition to Greece.

The idea behind this revision, or addition, is to ensure even more promising commercial prospects for the project by making available renewable energy from northeast Africa to a wider part of Europe.

The revised route being considered by Elica would split into two in the sea area southwest of Crete. From there, two subsea lines, each offering a capacity of 750 MW, would carry on for the wider Athens area and a further two subsea lines, also 750 MW each, would reach the sea area off Greece’s northwest and connect with an existing grid interconnection linking Greece and Italy.

This revised route would enable direct export of Egyptian renewable energy to Italy, as an additional recipient, via the GREGY Interconnector. Greece and Italy would each be able to receive capacities of 1,500 MW through the two lines.

Under the original plan for the GREGY Interconnector, four cables beginning from Egypt and possessing a total capacity of 3,000 MW would have all ended up in the wider Athens area.

Elica, the Copelouzos group subsidiary promoting the project, appears to have informed the Greek and Italian governments, as well as Greek power grid operator IPTO and Italy’s power grid operator TERNA of its planned route revision.

RES projects with a total capacity of 9.5 GW are planned for development in Egypt to feed renewable energy into the GREGY Interconnector.

Greek industrial consumers, seeking low-cost energy, are among the main potential recipients of the 1,500 MW to end up in the wider Athens area. A share of the renewable energy brought in from Egypt may also be exported to other Balkan countries through electrical grid links with Greece.

Italy, whose electricity import needs are among the highest in southern Europe, would cover a considerable proportion of these needs through the GREGY Interconnector, at a low cost.

 

 

Greek-Cypriot-Israeli grid link progressing, delays inevitable

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A prospective electrical grid interconnection planned to link Greece, Cyprus and Israel is making progress but delays seem inevitable, it has been determined following talks in Cyprus between Greek and Cypriot officials.

Greek power grid operator IPTO’s chairman and CEO Manos Manousakis and his deputy Giannis Margaris have just held constructive talks with Cypriot officials on the project.

The IPTO officials informed officials of the Cypriot government and the country’s transmission system operator that they have already commissioned a new cost-benefit study, a prerequisite for the Cypriot government ahead of its decision on whether to participate in this project.

Also, IPTO has forwarded, to the Greek and Cypriot regulatory authorities, an agreement it has signed with Cypriot company Euroasia, the project’s previous promoter, to succeed it at the project’s helm, according to sources at the Greek power grid operator.

This action paves the way for IPTO to be officially declared project promoter of the grid interconnection. However, the Greek and Cypriot regulatory authorities still need to recognize this transfer of project control from Euroasia to IPTO.

Meanwhile, IPTO has already formed a special purpose vehicle (SPV) named Great Sea Interconnector as a subsidiary to be assigned rights and responsibilities concerning the project’s development.

IPTO has repeatedly made note of the need for swifter action, both by the Cypriot government in its decision on whether to participate in the project, and by the regulators for their recognition of the project’s transfer of control. The European Commission has also demanded swifter progress from all parties involved – regulators, operators and governments.

Crucially, Israel has warmed to the prospect of co-developing the project’s second segment that would link the Cypriot and Israeli electrical grids and complete the interconnection, maximizing the benefits to be derived from it.

Gov’t troubled by cost of over-ambitious Green Deal targets

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The Greek government, which has stood as one of the staunchest supporters of the European Green Deal, appears to be growing increasingly restless about the additional cost of loftier green-transition objectives proposed by the European Commission.

Aristotelis Aivaliotis, the energy ministry’s General Secretary of Energy and Natural Resources, commenting during yesterday’s opening day of the two-day Power & Gas Forum in Athens, warned that the Green Deal risks losing popular acceptance as a result of its rising cost.

His words of caution came just one day after another leading energy ministry official opposed, at an Energy Council, a European Commission proposal for a 90 percent reduction of greenhouse gas emissions in the EU by 2040. This objective is estimated to require an additional 50 billion euros in national funds.

The EU managed to reduce its greenhouse gas emissions by 30 percent between 1990 and 2021. This essentially means that the EU’s 27 will need to triple this achievement in the time remaining until 2040.

Athens’ reservations indicate that the Greek government is, for the first time, beginning to keep a distance from the EU’s climate policy.

The Greek government, like other administrations in the EU, has begun realizing that the European Commission’s tendency to set over-ambitious green transition targets represents a growing burden for households and could end up backfiring.

Such a development could irreparably undermine the effort to tackle climate change at its most crucial stage.

 

IPTO, Albania’s OST discuss transmission line progress

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The administrations of Greek power grid operator IPTO and the Albanian transmission system operator OST have just held talks in Tirana to discuss the progress of a new 400 kV overhead transmission line being developed between the two countries.

According to an announcement, technical teams of the two operators will work closely to accelerate the project’s development. The need for close cooperation for swifter progress was highlighted during the meeting.

In addition, the meeting’s participants examined ways to increase interconnectivity between the two countries, an issue that also concerns the wider western Balkans region.

The two operators agreed on establishing technical teams to study how increasing RES penetration and the development of domestic and international interconnections are creating further needs for grid capacity boosts.

These technical teams will be expected to start work, in the coming months, on joint studies with a view to adopting a common approach for strengthening existing interconnections and creating new ones in the region.

Great Sea Interconnector drawing US, UAE fund interest

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Latest developments concerning the prospective Great Sea Interconnector, a 1.9 billion-euro project planned to link the power grids of Greece, Cyprus and Israel, indicate that investment interest is growing.

Officials of Greek power grid operator IPTO, promoting the project through an SPV, are expected to hold talks in Nicosia today with representatives of Abu Dhabi-based fund TAQA, one of the key players examining the prospect of becoming a stakeholder in the Great Sea Interconnector.

This UAE fund has been conducting due diligence for months. Today’s meeting between IPTO and TAQA officials in Cyprus suggests TAQA is seriously considering to join the Great Sea Interconnector consortium.

In addition, IPTO is preparing to forward the consortium’s terms to Israeli fund Aluma. The two sides had signed a Memorandum of Understanding last year in view of this fund’s entry into the project.

Without a doubt, growing interest for involvement in the Great Sea Interconnector expressed by US state fund Development Finance Corporation ranks as standout news.

Following up on talks with Greek deputy energy minister Alexandra Sdoukou in Washington last December, DFC’s leadership is believed to have expressed interest to participate in the project by either becoming a stakeholder with a 50 million-euro sum or by contributing to its financing.

Though DFC has not yet gone into details, US state participation in the project would align with American energy security interests in the eastern Mediterranean region and also boost the project’s geopolitical standing.

Retail electricity prices below EU average in first half of ’23

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Retail electricity price levels in Greece were well below the EU average in the first half of 2023, giving the country a 17th place ranking for most expensive low-voltage electricity among member states, Eurostat data has shown.

Greece ended the six-month period with retail electricity prices averaging 233 euros per MWh, compared to the EU average of 289 euros per MWh over the same period.

Calculations for these figures include taxes and other charges, but not subsidies offered to consumers.

The Netherlands topped the list with an average price of 475 euros per MWh in the first half of 2023, while Bulgaria was placed at the bottom end with an average price of 114 euros per MWh.

As for EU member states ranked slightly above Greece, Lithuania averaged 281 euros per MWh, Sweden followed with 269 euros per MWh, Austria was next 265 euros per MWh, Ireland’s average was 248 euros per MWh, and Finland, one place above Greece, ended the first half last year with an average price of 238 euros per MWh.

On the contrary, electricity supply for non-residential consumers in Greece, averaging 213 euros per MWh, was slightly above the EU average of 210 euros per MWh. Even so, Greece’s ranking remained the same, 17th most expensive, for this category.

Romania topped the list of most expensive non-residential electricity with an average of 329 euros per MWh, while Iceland ranked lowest with an average of 78 euros per MWh in the first half last year.

 

IPTO, Nexans discuss Crete-Cyprus grid link details

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An electrical grid interconnection to link the Cretan and Cypriot systems, work on which began last month, was essentially officially launched yesterday at a meeting in Athens between Greek power grid operator IPTO’s leadership and top officials of French multinational cable and optical fiber industry Nexans.

During the session – the first major meeting between IPTO’s leadership and Nexans’ chief operating officer Mathias Bruneau, who led a ten-member team – the cooperation’s principles, as well as project fundamentals, including when deep-sea surveys would commence, the interconnection’s routing and schedule, were all discussed in detail.

Installation of the project’s cable is planned to begin in 2026 and be completed in 2029. The Crete-Cyprus grid interconnection, a project budgeted at 1.2 billion euros, will cover a distance of 898 kilometers.

Just days ago, IPTO, the Greek power grid operator, reached an agreement with its Israeli counterpart to assemble technical teams for a cost-benefit analysis concerning the project’s next stage, to link the Cypriot and Israeli electrical grids.

Energy regulators of both countries will rely on the results of the CBA to divide costs that will be recovered through regulated revenues.

The wider project’s two sections, dubbed the Great Sea Interconnector, planned to link the Greek, Cypriot and Israeli electrical grids, will cover a total distance of 1,208 kilometers and is budgeted at 2.4 billion euros.

 

EU energy-crisis concerns over Ukraine corridor ‘manageable’

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European fears of further energy-crisis woes that could result from the nearing end of a five-year pipeline gas transit agreement between Kyiv and Moscow for Russian gas supply to Europe via Ukraine, appear to be manageable, as long as a series of specific measures are implemented, most EU ministers responsible for energy agreed at an Energy Council in Brussels yesterday.

The bilateral agreement between Ukraine and Russia expires at the beginning of 2025. Ukraine has declared it does not intend to renew this agreement.

Further energy-crisis concerns as a consequence of this agreement’s conclusion, expected to reduce the EU’s total gas imports by 5 percent, can be prevented if EU member states speed up their development of roughly 20 LNG facilities planned from Europe’s north to south; renewable energy investments gain further momentum; energy-savings measures are continued; natural gas consumption reductions continue at the current rate; and LNG imports are increased to make up for reduced Russian gas imports, energy ministers of most EU member states agreed at the Brussels meeting.

Last year, approximately 14 bcm of Russian gas was transported through the Ukrainian corridor to countries such as Austria, Hungary and Slovakia.

Numerous EU member states achieved renewable energy production all-time highs last year. In Portugal, renewables covered 61 percent of the country’s energy needs in 2023. RES coverage of Greece’s energy needs reached 57 percent. In Germany, RES units met 52 percent of the country’s energy needs, while in Belgium the figure reached over 30 percent.

Activity abounding for €1.9bn Great Sea Interconnector

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Greek power grid operator IPTO, project promoter of the Great Sea Interconnector, a 1.9 billion-euro project planned to link the power grids of Greece, Cyprus and Israel, is engaged in talks with the European Investment Bank for a loan of approximately 500 million euros.

IPTO plans to soon stage a teleconference with EIB in order to provide additional information supporting this project as an optimal solution for Cyprus’ energy sufficiency in an effort to remove feasibility reservations expressed by the bank in the past.

Also, IPTO’s chief executive Manos Manousakis and associates have scheduled a series of meetings in Nicosia tomorrow, including with Cyprus’ finance minister Makis Keravnos, for the Cypriot state’s entry into the GSI project with an equity amount of up to 100 million euros. These meetings will be the latest of regular meetings agreed to with Cyprus for talks on the project’s progress.

Besides Israel fund Aluma and Abu Dhabi-based fund TAQA, other investors, both from the wider region as well as the USA, are believed to be interested in becoming project stakeholders.

In addition to the 500 million-euro loan for the GSI being discussed with EIB, a further 500 million euros in loans is expected to be extended by Greek banks, currently in talks with IPTO, while 657 million euros in EU funding is also anticipated.

Adding to the overall activity concerning the GSI’s development, a team of leading officials from Norwegian company Nexans is scheduled to visit Athens on March 13 for talks with IPTO’s leadership. Nexans has begun manufacturing work for the project’s cable.

Next step taken for gas system upgrade’s market test

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Gas grid operator DESFA is preparing to take a next step towards a binding stage for a market test concerning an upgrade and expansion of the Greek gas transmission system by putting the procedure’s guidelines to public consultation, energypress sources have informed.

Based on the foreseen procedure, the guidelines, along with all project proposals, will be submitted to RAAEY, the Regulatory Authority for Waste, Energy and Water, for approval ahead of the beginning of the market test’s binding stage, planned for May.

The market test’s overall procedure began last year with a non-binding stage that attracted grid-capacity requests covering 2024 to 2050 from a total of 27 companies.

Seventeen of the 27 requests were submitted by companies from abroad, mainly central and southeast Europe, as well as the USA. This turnout highlights Greece’s upgraded role on the regional energy map. The other ten requests were submitted by Greek companies.

Authorities are less confident of a solid turnout by investors in the binding phase as demand for natural gas has been on the decline.

 

Electricity exports surge in January, driven by lower prices

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Lower wholesale electricity prices in Greece led to a surge in electricity exports in January, up 323.17 percent compared to a month earlier.

Wholesale electricity prices have been on a downward trajectory in Greece since the beginning of the year, making the country Europe’s 8th most expensive, in this specific market, from 3rd most expensive in 2023.

Integrated energy markets enable energy to flow from lower-cost to higher-cost markets. The majority of Greece’s electricity exports have headed to Italy.

Up until the energy crisis, Italy was Europe’s most heavily dependent country on natural gas. Though this exposure has since been limited, the neighboring country’s electricity prices are still influenced by natural gas prices.

Interestingly, the current month provided a snapshot of the future as, according to official data, renewables covered 68 percent of Greece’s day-ahead market load on February 11, the second highest coverage rate since the launch of the target model three years ago.

The all-time high was recorded on September 10, when renewables covered 70.75 percent of the country’s load.

 

PPC, a regional player, turning into an energy ambassador

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Power utility PPC’s strategic moves into southeast European markets are becoming a powerful tool of economic diplomacy for Greece and the country’s interests in the wider region as control of energy corridors and resources is equivalent to geopolitical power.

PPC’s chief executive Giorgos Stassis and his associates have been making more regular and intensified contact of late with government officials in the wider region and across the Atlantic.

Stassis’ meeting with Geoffrey Pyatt, the US’s Assistant Secretary of State for Energy Resources, in Washington just over a week ago, followed by a meeting earlier this week with Romanian Prime Minister Marcel Ciolacu, highlight the important diplomatic role now been played by PPC.

During their Washington meeting, Stassis and the US’s Assistant Secretary of State for Energy Resources discussed how PPC could play a more active role through east Europe’s major energy corridors and the US-backed Three Seas initiative, involving 13 Baltic Sea, Black Sea and Adriatic Sea countries and aiming to offer protection against the threat of Russia.

The US sees Greece’s initiatives in the wider region as moves that are aligned with America’s geostrategic interests, especially at a time when Russia’s war in Ukraine has turned arming eastern Europe against Russian influence into a priority.

New meeting in March for west Balkans energy integration

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Next steps to be taken for the interconnection of electricity markets in the western Balkans are expected to be discussed during a new teleconference involving regulators from Greece, Albania, Kosovo and North Macedonia in March, energypress sources have informed.

The meeting is part of an initiative launched last November with the aim of interconnecting Balkan electricity markets through a process involving regulators, operators and energy exchanges from the respective countries.

In the lead-up to the March meeting, RAAEY, the Regulatory Authority for Waste, Energy and Water, has called a teleconference for next week with power grid operator IPTO and the Greek energy exchange so that a Greek position on the west Balkans grid interconnection initiative may be established.

According to well-informed sources, the timetable, at least for now, can only be roughly defined given the immaturity of markets concerned. However, there is considerable interest in seeing this market integration initiative through, while involvement of US authorities is crucial, the sources added.

The initiative is being guided by direct and indirect involvement of US authorities such as the US National Association of Regulatory Utility Commissioners (NARUC), the US Energy Association (USEA), research institute RTI International, and the US Agency for International Development (USAID).

The west Balkans energy integration process is expected to be based on a model adopted for Greece’s market coupling with Italy and Bulgaria.

 

 

 

 

Greek PM’s India visit to once again raise IMEC corridor plan

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The war in Gaza may have stalled India’s ambitious project for a trade and energy corridor to the Middle East and, from there, to Europe, but the world’s most populous country has not stopped looking for trade routes to the West.

The prospect of Greece playing the role of European gateway for India, as geographically, Greece is the EU’s closest member state to India, is expected to be raised once more during meetings between Greek Prime Minister Kyriakos Mitsotakis and his Indian counterpart Narendra Modi in New Delhi this Wednesday and Thursday.

India’s PM had discussed the matter at a meeting with the Greek leader in Athens last August, and is expected to do so again, even though the plan’s prospects have weakened as the war in Gaza has changed the geopolitical balance and ruptured crucial Israel-Saudi relation without any signs of normalization in the foreseeable future.

Everything concerning the India-Middle East-Europe Economic Corridor (IMEC) will depend on the outcome in Gaza and the stance of Israel, refusing to discuss an independent Palestinian state, as Saudi Arabia is demanding in order to establish diplomatic relations with Israel.

India’s envisaged trade and energy corridor, a 4,800-km corridor planned to link the ports of Mumbai and Haifa, already controlled by Indian investors, remains on the table, but is at the mercy of geopolitical developments due to Gaza.

 

US sees American interests in PPC’s southeast Europe plans

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Greek power utility PPC’s aspirations to establish itself as a key energy market player in the Balkans and southeast Europe is being embraced by US investors who, through such a development, see further potential for interests of their own, given the excellent standing of Greek-US bilateral ties.

Protecting the region’s energy sufficiency from the threat posed by Russia remains a top priority for the US, which also sees potential for American interests in PPC’s plans to penetrate markets in the Balkans and beyond with large quantities of renewable energy.

PPC’s chief executive Giorgos Stassis made note of the power utility’s plans for southeast Europe, and also referred to the wider Three Seas Initiative in an announcement made yesterday following a meeting with Geoffrey Pyatt, US Assistant Secretary of State for Energy Resources.

The Three Seas Initiative, presently covering 13 countries between the Baltic Sea, Black Sea and Adriatic Sea, aims to attract major investments from the EU and the US in the areas of road and rail transport, economy, energy infrastructure for transmission of renewable energy, fiber optic development and everything needed to launch 5G telecommunication networks.

Greece, Austria, Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia are all included in the Three Seas Initiative, while Ukraine and Moldova were granted membership rights last September.

US state fund DFC’s Great Sea Interconnector entry a catalyst

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The apparent interest of US state fund DFC becoming a stakeholder in the Great Sea Interconnector, planned to link the power grids of Greece, Cyprus and Israel, would serve as a catalyst for the project as such a development would not only offer an additional funding source to the 1.9 billion-euro project but also boost its geopolitical clout as a result of the US state’s participation.

DFC, the Development Finance Corporation, only supports and promotes projects around the world that are in line with US interests, its recent funding to Onex for the acquisition of the Elefsina Shipyards, west of Athens, being an example.

Planned to stretch 1,200 km and offer 2-GW power transmission capacity, the Great Sea Interconnector, the most mature of interconnection projects envisaged between Europe and the Middle East, certainly meets the regional interests of the US.

This project promises to greatly contribute to energy supply security in the eastern Mediterranean, diversification of supply sources and, above all, development of infrastructure capable of connecting different continents.

DFC, it is being reported, could enter the Great Sea Interconnector as a 10 percent stakeholder. If the American state fund does become part of the project, it would join Greek power grid operator IPTO, the project promoter through its special purpose vehicle; the Cypriot State; Israel fund Aluma; and Abu Dhabi-based fund TAQA.

 

Further step taken for Greek-Saudi grid link, routing an issue

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Greek power grid operator IPTO and the National Grid Saudi Electricity Company have taken a further step for the development of an electrical interconnection linking Greece with Saudi Arabia by establishing a special purpose company.

The Greek-Saudi project, to stretch over 2,000 km, is planned to serve as a segment of a bigger corridor for transportation of renewable energy from the Middle East and Africa to central Europe.

As a next step, Saudi Arabian Greek Electrical Interconnection, the special purpose company just established by IPTO and National Grid, is expected to conduct environmental, technical and feasibility studies for a High Voltage Direct Current (HVDC) interconnection. However, a series of Greek and Saudi Arabian ministerial approvals are still needed.

The two sides had reached a preliminary agreement in Athens last autumn, following a visit to Greece in the summer of 2022 by Crown Prince Mohammed bin Salman Al Saud, Crown Prince of Saudi Arabia, for talks with Prime Minister Kyriakos Mitsotakis.

The formation of a special purpose company indicates that both sides are eager to push ahead with a Greek-Saudi electrical interconnection, despite fears that the Israel-Gaza war could lead to delays and revisions.

The Greek-Saudi interconnection’s eventual route, a crucial factor in the outcome of the project’s feasibility study, stands as a major challenge and will greatly depend on the condition of bilateral ties between Saudi Arabia and Israel.

Though this relationship appeared to be improving, the Hamas attack on Israel on October 7 and its resulting Israel-Gaza war has impacted ties between Saudi Arabia and Israel.

If current conditions do not change, Saudi Arabia, a Sunni Islam kingdom, will choose a longer route for the project that bypasses Israel and instead runs through Egypt’s Suez Canal to Greece. Should Saudi-Israeli ties improve, the Greek-Saudi interconnection will take a route running from Saudi Arabia to Jordan, Israel and on to Greece, possibly via Cyprus.

Big interest in Greece-North Macedonia gas pipeline tender

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A tender offering a contract for the construction of a gas pipeline linking the Greek and North Macedonian systems has attracted considerable interest, including companies from abroad and the neighboring country, energypress sources have informed. Interested parties had until yesterday to submit offers.

Officials expect work on the gas pipeline’s development to begin this coming spring, while the project’s delivery is anticipated within 2025.

The gas pipeline is planned to cover a total distance of 125 kilometers. Its Greek segment will stretch 57 kilometers, beginning from Nea Mesimvria in the country’s north, while the North Macedonian segment’s 68 kilometers will reach Negotino.

The pipeline’s initial capacity will be 1.5 billion cubic meters, annually. It will be built according to technical specifications enabling transportation of renewable gas, entirely.

Greek gas grid operator DESFA and its North Macedonian equivalent, Nomagas, signed an agreement for the project in September, 2023 as a follow-up to a bilateral agreement reached between the Greek and North Macedonian governments in March, 2021.

The European Investment Bank plans to extend funds worth 2.48 billion euros for the Greek-North Macedonian gas pipeline through the EU’s Western Balkans Investment Framework (WBIF).

 

Doubled TAP capacity by 2030, not 2027 as initially planned

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A Trans Adriatic Pipeline (TAP) plan to double the pipeline’s capacity to 20 billion cubic meters by 2027 now appears likely to be delayed until 2030, Stefano Venier, CEO of Italian energy infrastructure company Snam, one of the TAP consortium shareholders, has indicated.

The ability to double the pipeline’s capacity depends more on the availability of gas in Azerbaijan than on demand, the Snam chief executive noted during a presentation of the company’s business plan until 2027.

The aim is to increase capacity gradually so that the pipeline can operate at full capacity sometime between 2027 and 2030, the latter being most probable, the official noted.

In previous announcements, the TAP consortium, in which Snam holds a 20 percent stake, had said the pipeline’s capacity would be doubled by 2027.

Participants in a market test being staged to measure whether demand is sufficient face a January 31 deadline to submit binding bids.

TAP, an 878-kilometer link crossing Greece, Albania and the Adriatic Sea to Italy, is developing from a pipeline of strong Italian and Greek interests to one with a crucial pan-European role as a result of the energy crisis of the last two years, a condition that has further highlighted the importance of energy security and gas supply, Snam noted.

 

Green Aegean entering crucial cost-benefit analysis stage

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Cretan grid set for revamp to enable 2 GW in RES projects

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The imminent completion of an electrical grid interconnection to link Crete with Athens, a prospect now just months away, will pave the way for a full transformation of Crete’s network through upgrades of existing cables and development of new lines which, once ready, will enable the island’s grid to host just over 2 GW in renewable energy projects.

Power grid operator IPTO’s deputy chief Giannis Margaris discussed project details on Cretan TV during a visit to the island to oversee work on the grid interconnection with Athens.

The choice of the Damasta area, located in the island’s mid-north, as the finishing point of the Athens-Crete cable, is strategically positioned to facilitate power distribution to the rest of the island, the IPTO deputy noted during the interview.

IPTO’s planning takes into account Crete’s grid interconnection with the Peloponnese and – its extension to – Athens; a plan to link the Greek electrical grid, from Crete, with those of Cyprus and Israel; development of new RES units on Crete; as well as the energy security factor, or the ability to reverse energy flow should any emergency arise due to technical issues.

IPTO’s ten-year development plan covering 2024 to 2033, which has been submitted to RAAEY, the Regulatory Authority for Waste, Energy and Water, for approval, includes projects designed to reinforce the Cretan grid.

These are budgeted at 12.9 million euros, until 2024, and 12.79 million euros, until 2025, with a completion target set for 2027.

Croatia keen to join Greece-Germany electrical grid link

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Croatia has expressed an interest to join a group of countries engaged in advanced talks for the development of Green Aegean, an electrical grid interconnection project envisaged to run from Greece to Germany’s south.

Besides Greece and Germany, Slovenia and Austria are already involved in the talks for this project.

Greek deputy energy minister Alexandra Sdoukou appears to have been informed of Croatia’s interest to become a fifth member of this group on the sidelines of last week’s ministerial conference staged by the Central and South-Eastern European Gas Connectivity Group (CESEC) in Athens.

Croatia’s interest to join the Green Aegean project has been linked to the country’s plans to develop offshore wind farms in the Adriatic Sea.

A Croatian action plan presented last year indicated the country could develop offshore wind farms with a 25-GW capacity in the Adriatic Sea, a level of output that would establish Croatia as a major European player in this domain.

The Croatian government is well aware that the country’s anticipated excess renewable energy to be generated from mid-way next decade onwards would need to be exported as the domestic system will not be able to absorb the entire output. Greece faces a similar problem.

Green Aegean would benefit all parties involved. Germany needs to find ways to cover huge energy demand increases in the winter, whereas, at the opposite end, Greece faces greater energy demand in the summer.

EU support funds are serving as an incentive for related projects. The European Commission has made available 584 billion euros for electrical grid development in the EU, Brussels announced last November.

Greek power grid operator DESFA’s chief executive Manos Manousakis is scheduled to hold talks in Brussels tomorrow with Mannon van Beek, the CEO at Dutch TSO TenneT, operating in a large part of Germany.

Manousakis recently also met with Germany’s newly appointed ambassador to Greece, Andreas Kindl, to promote the Green Aegean grid interconnection plan.

 

EU support sought for half of Vertical Corridor’s €450m budgeted cost

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The Vertical Corridor, a European gas-pipeline system now planned to involve TSOs of seven countries – Greece, Bulgaria, Romania, Hungary, Slovakia, Moldova and Ukraine – will require an estimated 450 million euros in investments, energypress sources have noted.

Greek gas grid operator DESFA’s share of this sum will be minimal as a compressor station at Komotini, northeastern Greece, is all it will need to contribute to the project. All other upgrades to Greece’s gas grid, which, once completed, would enable the country to serve as a Vertical Corridor entry point, are already under development.

Officials of the six other countries participating in the project through initiatives taken by local TSOs believe that 50 percent of the project’s budgeted cost would need to be covered by EU funds if Vertical Corridor is to be materialized.

Project participants will push for political commitment from the European Commission by March as the upcoming European elections and any leadership changes would result in delays.

This issue was raised during a two-day ministerial conference staged by the Central and South-Eastern European Gas Connectivity Group (CESEC) in Athens last week, a gathering attended by European Commissioner for Energy Kadri Simson, but no indications of Brussels’ stance were offered.

Vertical Corridor project members are now expected to intensify their call to the European Commission for political support regarding the project’s development.

Following an initiative taken by Slovakia, an MoU was signed at the CESEC meeting in Athens to bring Moldova and Ukraine into the Vertical Corridor project.

Besides TSOs from the seven participating countries, Gastrade, a consortium established by the Copelouzos group for the imminent Alexandroupoli FSRU at Greece’s northeastern port of Alexandroupoli, and ICGB, the consortium behind the Greek-Bulgarian IGB gas pipeline, are also involved in the Vertical Corridor initiative.

IPTO pitches Green Aegean to new German ambassador

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Greek power grid operator IPTO’s chief executive officer Manos Manousakis has held a meeting with Germany’s newly appointed ambassador to Greece, Andreas Kindl, to promote the operator’s proposal for a Green Aegean grid interconnection plan, envisaged to run from Greece to Germany’s south.

To date, German officials have remained reserved, as was highlighted by a meeting last November between Greek Prime Minister Kyriakos Mitsotakis and German Chancellor Olaf Scholz. The Greek leader made note of the Green Aegean project, describing it as a step towards independence from Russian energy, without reciprocation.

The Chancellor’s lack of expression on the project does not necessarily indicate that Germany is opposed to the Greek plan. It promises to be mutually beneficial for both countries. Germany encounters bigger energy needs during winter while Greece must deal with greater energy demand in the summer.

The meeting between Manousakis, IPTO’s CEO, with Germany’s new ambassador to Greece, could end up generating momentum for further talks between officials and convergence.

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

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

 

Talks with Libya for energy ties, grid link, despite Turkish pact

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The prospect of a Greek-Libyan electrical interconnection appears to have been tabled for discussion between Greek officials and Libya’s provisional Government of National Unity, led by Abdul Hamid Dbeibeh, despite issues between the two sides over a Libyan-Turkish pact signed in 2019.

Greece’s Chargé d’Affaires in Libya, Agapios Kalognomis, held a meeting with Osama Al-Darrat, the Libyan Prime Minister’s adviser for electricity and renewable energy, around mid-December, the electrical interconnection being at the heart of the talks on strengthening cooperation between the two sides in the energy sector, energypress sources have informed, confirming Libyan media reports.

Greek power grid operator IPTO appears to have been informed on the development and raised it for consideration, within its competence.

It remains unclear if discussions so far have included a proposed route for the interconnection, in order to determine whether issues could arise regarding the Libyan-Turkish pact and, if so, how these may be addressed.

As for renewables, the prospect of collaboration with Libyan state-owned Renewable Energy Holding appears to have been discussed in greater detail, according to certain sources.