Green Aegean

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.

 

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.

Manos Manousakis (IPTO): Τime to open debate on the creation of a pan-European HVDC interconnection network

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Key speaking points of the Chairman and CEO of Greek power grid operator IPTO at the ENTSO-E event on the Offshore Network Development Plan in Brussels

24/1/2024

“We need a pan-European network of high-voltage direct current (HVDC) electrical interconnections to seamlessly integrate substantial volumes of renewable energy into our power systems. This is essential for harnessing the abundant wind potential in Europe’s sea basins. We need to begin this discussion now if we want to achieve our 2050 climate targets and attain net-zero emissions”. This was stated by the Chairman and CEO of IPTO (Independent Power Transmission Operator) Manos Manousakis during a special event organized by the European Network of Transmission System Operators (ENTSO-E) to unveil the Offshore Network Development Plan, on January 23 in Brussels. High level speakers at the event included Energy Commissioner Kadri Simson and Tinne van der Straeten, the Minister of Energy of Belgium, the country holding the rotating EU Presidency for this semester.

“The time has come for vertical and horizontal electricity transmission corridors to take center stage in the public debate as they are a prerequisite for greening the energy mix, enhancing energy independence and improving the reliability of Europe’s electricity supply,” said Mr. Manousakis, noting that HVDC technology is essential due to its significant technical advantages, ensuring consistent power, voltage, and frequency, while enhancing grid stability and efficiency of the grid.

“In order to fully exploit the huge wind potential of Greece, the South of France, the North Sea, we need this infrastructure. And we need Transmission System Operators to communicate to governments the necessity of cooperation at European level to implement this infrastructure. It is time to plan the projects of the electricity corridors and the necessary interconnections between offshore wind farms in the framework of a holistic approach, considering their viability and cost-benefit ratio from a European perspective as Projects of Common European Interest, rather than bilateral projects between two states. We need to create solutions that support this policy” he said.  “Just as in Greece it is necessary to have vertical energy transmission axes from north to south, the same is required in Europe.” He cited as an example the Green Aegean Interconnector project to transfer the surplus wind potential of the Aegean Sea to the industrial centres of Central Europe.

The National Energy and Climate Plan of Greece foresees production capacity from offshore wind at 2 GW by the end of the decade and 17.3 GW by 2050. “However, our technical wind potential is much greater, and we can increase our ambition if we work together. That is why we need an integrated strategy that provides clear guidelines and appropriate tools for the planning and implementation of Europe’s electricity corridors,” concluded  IPTO’s Chairman.

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.

 

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.

 

PM prioritizes south-north link in talks with German leader

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Green Aegean, a electricity supply corridor envisaged, by Athens, to run from Greece to Germany’s south, dominated talks between Prime Minister Kyriakos Mitsotakis and German Chancellor Olaf Scholz in Berlin yesterday, sources close to the Greek leader have informed.

Mitsotakis, determined to promote this project, prioritized Green Aegean over the European migrant crisis and the Middle East conflict at yesterday’s meeting.

The German side, no longer appearing worried about the Greek economy, was keen to listen to the Greek leader’s views on the south-north corridor, but, despite agreeing with Mitsotakis on most points raised, refrained from expressing any clear position, either because of other priorities or because Berlin remains unconvinced about the project’s financial sustainability.

Mitsotakis presented Green Aegean as an important plan for both countries, noting Germany’s energy needs are high in winter, and have become even more acute ever since low-cost Russian gas supply stopped flowing as a consequence of Moscow’s war in Ukraine, while energy demand in Greece is high during the summer.

Berlin is well aware of the fact that additional green-energy sources will be needed, beyond large-scale offshore wind farms in the North Sea, if German industry is to become carbon-neutral by 2050.

For its part, Athens knows very well that problems will arise in the future if RES output does not reach central Europe. Greek RES output is already many times over the country’s needs and grid capacity. Also, green energy the country aspires to import from Egypt and the Middle East will require a new electricity corridor to Europe’s north. Without such an export corridor, north African and Middle Eastern producers will surely look elsewhere for pathways to Europe.

PM to seek German leader’s support for south-north link

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Prime Minister Kyriakos Mitsotakis will seek to gain political support from German Chancellor Olaf Scholz’s administration for Green Aegean, an electricity supply corridor envisaged to run from Greece to Germany’s south, when the two leaders meet in Berlin today.

The project is listed high on the agenda of their meeting, topped by the Middle East crisis and Greece’s long-term fiscal program.

Mitsotakis will reiterate to Chancellor Scholz that Germany’s needs for low-cost green energy, expected to rise over the coming years, could, to a great extent, be covered via a south-to-north supply corridor, which would begin with a 3-GW capacity and gradually rise to 9 GW.

The Greek leader, who had presented the project at an EU summit last March and has since remained well informed on its prospects, believes its development prospects are feasible.

The Green Aegean project is envisaged to run from Greece, through the Adriatic Sea, across Slovenia and Austria, all the way to Germany’s south.

Mitsotakis may also discuss the Green Aegean project at an additional meeting, later in the day, with Friedrich Merz, leader of Germany’s main opposition Christian Democrats (CDU), as well as during public discussion tonight at a Konrad Adenauer Foundation (KAS) event.

IPTO submits Green Aegean proposal to ENTSO-E

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Greek power grid operator IPTO has submitted a Green Aegean grid interconnection plan, envisaged to run from Greece to Germany’s south, to the ten-year development plan of ENTSO-E, promoting closer cooperation across Europe’s TSOs to support the implementation of EU energy policy and achieve Europe’s energy and climate policy objectives.

The project’s inclusion in the development plan of ENTSO-E, representing operators from all of the EU’s 27 member states, would represent a significant first step towards PCI/PMI status for the project, securing EU funding, as planned by IPTO.

IPTO prefers 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.

TenneT has expressed strong interest in the Green Aegean grid interconnection and the prospect of collaborating with IPTO on the project’s development for a link with Germany’s grid in the southern part of the country.

HVDC-technology enables transmission of large quantities of electricity over long distances via submarine cables, as well as fast and accurate control of power flow, enhancing grid stability.

 

IPTO favors subsea route, HVDC for Green Aegean

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Power grid operator IPTO has settled on proposing a subsea route for the Green Aegean grid interconnection, a pivotal project envisaged to run from Greece to Germany’s south, which, according to the operator’s preferred route, would pass through the Adriatic Sea to Slovenia, followed by an overland route to Austria and Germany’s south.

The operator has abandoned an alternative overland western Balkans route for the project, through Montenegro, Croatia and Slovenia, over cost-related concerns. This route would entail upgrading pylons at outdated networks in these countries, making the venture financially unfeasible.

As a result, IPTO is now holding talks with TenneT, Germany’s biggest power grid operator, for its proposed underwater route, a more independent passage that would not require the usage of networks at any neighboring countries and be equipped with HVDC technology.

If IPTO’s envisaged route is finally adopted, then Prime Minister Kyriakos Mitsotakis’ proposal for the establishment of a European Grid Facility to fund upgrades of outdated Balkan networks and, subsequently, enable a Green Aegean crossing, will no longer apply. Mitsotakis presented his proposal during an EU summit last March.

Usage of HVDC technology for such projects is crucial as it enables transmission of large quantities of electricity over long distances via submarine cables; fast and accurate control of power flow, enhancing grid stability; and the interconnection of incompatible networks.

 

IPTO seeks Green Aegean grid link’s entry into ENTSO-E plan

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Greek power grid operator IPTO intends, within the next few days, to submit a Green Aegean grid interconnection plan, envisaged to run from Greece to Germany’s south, to the ten-year development plan of ENTSO-E, promoting closer cooperation across Europe’s TSOs to support the implementation of EU energy policy and achieve Europe’s energy and climate policy objectives.

The project’s inclusion in the development plan of ENTSO-E, representing operators from all of the EU’s 27 member states, would represent a significant first step towards PCI/PMI status for the project, securing EU funding, as planned by IPTO.

The Green Aegean grid interconnection project is seen as vital for channeling, further north in Europe, huge quantities of green energy that are expected to enter Greece in the coming years from the Middle East and Asia through projects such as the Saudi Greek Interconnection. The project would also allow Greece to export some of its excess domestically-produced energy.

Greek and Saudi delegations met yesterday to establish a 50-50 joint venture for the Saudi-Greek Interconnection, with IPTO and Saudi Arabia’s National Grid as shareholders.

The Greek-German Green Aegean grid interconnection; the Saudi-Greek interconnection; along with Euroasia Interconnector, planned to connect the Greek, Cypriot and Israeli grids; as well as the Greek-Egyptian GREGY grid link, all represent parts of a green-energy intercontinental axis running several thousands of kilometers and involving many individual interconnections and special purpose companies. All these initiatives share one common goal, to transport, via Greece, renewable energy from Asia and the Middle East to green energy-hungry markets of Europe’s north.

 

Talks for Green Aegean link, from Greece to Germany, gain momentum

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A prospective Green Aegean grid interconnection project, planned to run from Greece to Germany’s south, facilitating exports of significant amounts of green energy as part of a wider effort to transport energy from Europe’s south to north, is gaining momentum through ongoing communication between Greek power grid operator IPTO and four German electricity transmission operators. Additionally, the international policy offices of the Greek and German energy ministries are becoming more actively involved in the project.

Though, quite clearly, the green transition stands no chance of succeeding without the development of major international interconnections for exports of colossal green energy quantities from south to north, coordinating such a transboundary project is a highly complex task, as efforts to date have shown.

From a technical point of view, an initial Greek proposal envisions a cable with a total transmission capacity of approximately 3 GW. This capacity would be boosted to 6 GW through a second round of work and eventually be further upgraded to 9 GW, according to the Greek proposal.

IPTO has worked on two alternative cable routes, both involving Albania. One proposal concerns an overland route across Montenegro, Croatia, Slovenia and Austria before concluding in Germany’s south. The Greek power grid operator’s other proposed route, which includes an underwater crossing, would run alongside the Albanian coast to Slovenia and then follow a n overland route to Austria and southern Germany.

IPTO is currently engaged in talks with each of Germany’s four transmission system operators (TSOs) – Transnet, Tenne, Amprion and 50 Hertz – covering separate German regions, to determine the extent of Berlin’s support for the Green Aegean project.

Greece and Germany, Europe’s biggest consumer of green energy, will need to reach an agreement on the project before an application can be lodged to the European Commission. If the effort moves ahead, PCI/PMI status will be sought for the project.

At present, there is no clarity on the project’s financing plan. Last March, Greek Prime Minister Kyriakos Mitsotakis told an EU Summit that the project would require funding from a variety of European programs. A European Grid Facility needs to be established to fund new multi-billion budget networks that will be able to support additional green energy, he noted.

As yet, no moves been made to modernize outdated grid infrastructure, especially in the western Balkans, lying between Europe’s south and north. This infrastructure will require a revamp in order to carry enormous amounts of green electricity stemming from the east Mediterranean, Egypt and Africa’s north.

Greece is now at a critical crossroads in terms of its green production potential, which will increasingly exceed domestic demand. On September 10, a new record of green electricity production was set, renewables covering up to 140 percent of domestic demand. Surplus amounts were exported, indicating what lies ahead and highlighting the need for solutions.