Grid capacity for net metering, energy community projects

Investor application rights for new solar energy projects will continue to remain suspended for an indefinite period, but existing distribution network capacity will be made available to investors submitting applications for net metering and energy community-related projects, highly ranked energy ministry officials have informed energypress.

The ministry is determined to offer as much grid capacity as possible for projects aiming to reduce the cost of energy for a wide range of consumers, the energy ministry officials noted.

Grid capacity totaling 2.5 GW has been reserved for roof-mounted photovoltaics concerning net metering projects. This reservation is expected to enable the installation of approximately 250,000 solar energy systems of up to 10 KW in the household, small business and farming categories.

RES project links up 60% in ’22, better grid utilization needed

RES projects ended 2022 having recorded one of the best performances in recent years in terms of new unit connections to the transmission system, adding a green energy capacity of 583 MW, up from a total of 370 MW in 2021, an increase of approximately 60 percent in a year.

This spectacular increase highlights the tremendous level of interest expressed by investors for the development of new RES projects in Greece. It puts the country on the right track towards achieving ambitious green energy targets set for 2030.

According to the revised National Energy and Climate Plan, Greece is striving for a RES energy-mix share of 80 percent by the end of the decade.

Against this backdrop, priority now needs to be given to better utilize the existing network through legislative initiatives that will free up reserved electricity space from stagnant RES projects.

Also, RES project licensing procedures need to be further simplified so that grid projects included in power grid operator IPTO’s 10-year investment program may proceed even faster.

IPTO connection term offers reach 3 GW, clear-out needed

Power grid operator IPTO has offered connection terms to new RES projects representing a total capacity of 3 GW since August, when a priority system was implemented to put in line applications submitted as far back as early 2021.

IPTO has moved at a fast rate. The 3-GW capacity in connection terms offered by the operator to RES project applicants over the past four months, following the signing of a related ministerial decision, would have taken an entire year to accumulate not too long ago.

IPTO, market officials estimate, has already covered 44 percent of grid capacity available for green energy priority groups, meaning roughly just 3 GW is still available for prospective projects.

Older RES projects still not developed despite having received connection terms quite some time ago need to be cleared out in order to prevent saturation of the grid’s diminishing capacity, market officials have pointed out, echoing a message delivered by Prime Minister Kyriakos Mitsotakis at September’s Thessaloniki International Fair.

Sector officials estimate the grid’s maximum capacity to be available in 2030 will be 28 GW.

 

 

Grid input limits for new RES and storage units discussed

Market operators have launched a consultation procedure to define energy grid input restrictions on new wind and solar energy parks, as well as energy storage units, both stand-alone and behind-the-meter, in order to make optimal use of available grid capacity and enable grid entry for as many new projects as possible.

Energy input limits were officially introduced through a legislative revision made to facilitate a second round of measures simplifying the licensing procedure for green energy investments.

Renewable energy units already operating, or either scheduled to operate or be officially declared ready-to-operate by December 31, will not be subject to the new grid input restrictions.

Power grid operator IPTO has proposed a grid input restriction representing 72 percent of full capacity for large-scale solar energy projects.

According to the proposal, wind farms installed or planned to be installed in south Evia, Crete, as well as interconnected Cyclades islands should be exempted from grid input restrictions.

Grid input restrictions for wind energy parks elsewhere should apply between 9am and 5pm, an eight-hour period when solar farms are producing at maximum levels, the operator has proposed. Penalties could be set for infringements.

Over 20% of older RES applications no longer valid

Between 20 and 30 percent of older RES project applications submitted to power grid operator IPTO have been cancelled as a result of the failure of project investors to deliver letters of guarantee by a November 4 deadline.

This deadline has essentially served as a filter removing abandoned RES projects for which grid capacity bids had been submitted by investors.

The cancelled RES applications represent a total capacity of 4 to 6 GW, while investors behind RES projects representing between 14 to 16 GW reconfirmed their interest.

Authorities estimate that available grid capacity for these older RES applications will total 6.5 GW, meaning grid capacity will still be insufficient to host all these projects.

 

 

 

‘Stricter enforcement of RES project development plans’

Stricter enforcement of project development schedules for prospective RES units holding connection terms is required, while licenses need to be revoked if project deadlines are not met, power grid operator IPTO deputy president Giannis Margaris has underlined at an energy storage event in Athens.

The official also stressed the need, from now on, for RES units with integrated energy storage facilities, a combination that would enable a greater number of renewable energy projects to be installed and increase the grid’s ability to absorb their output.

As for energy injection restrictions that will be imposed on RES stations and energy storage stations, the IPTO deputy revealed that a relevant study and proposal by the operator will be submitted to the energy ministry within the next few days.

Margaris reiterated the problem of potential saturation faced by the grid, noting Greece’s current installed RES capacity totals 10 GW (5.5 GW – distribution network operator DEDDIE/HEDNO, 4.5 GW – IPTO), plus 11.5 GW in connection term offers.

The resulting total sum is nearly 22 GW, while IPTO’s ten-year development plan envisages 28 GW by 2030, including capacity being created on islands through interconnection projects, Margaris explained, adding that the National Energy and Climate Plan puts the grid capacity objective at 25 GW by 2030, meaning just 3 GW of available capacity remains, despite the strong level of investor interest.