Demand to reach 10 GW today, officials confident on grid

Domestic electricity demand could reach 10 GW today, a record level for 2023, amid heatwave temperatures, but sector authorities are confident the grid is well prepared and equipped to handle the challenge.

Overall, the grid is in sound state, while any issues that may have emerged at some locations, especially areas affected by fires that have broken out in recent days, have been swiftly resolved to prevent a spread of grid problems in wider areas, sources at power grid operator IPTO have informed.

However, given the extensive fire fronts and high risk of new outbreaks in coming days, combined with elevated, heatwave-related electricity demand, IPTO officials are remaining vigilant, monitoring events for swift action if necessary.

According to an IPTO schedule for today, electricity demand is projected to peak at 1 pm, reaching 9,956 MW, over the highest level reached so far this year, 9,950 MW, recorded on July 14.

Solar panels are expected to cover over 40 percent of demand, delivering 4,300 MW, during today’s midday hours, when electricity demand will be highest.

Higher electricity demand will push prices higher on the energy exchange today, the average wholesale electricity price expected to rise by 6.62 percent to 135.58 euros per MWh, up from yesterday’s level of 127.17 euros per MWh.

 

Network damages estimated at €25m, operator well stocked

Damages to electricity infrastructure caused by extensive fires in various parts of the country have, according to an initial estimate, reached between 20 and 25 million euros, but the cost could rise as fires are still burning in northern Evia, one of the hardest hit areas, sources at DEDDIE/HEDNO, the distribution network operator, have noted.

The estimate includes sub-stations, utility poles and power lines. The operator is stocked with all the equipment needed to replace damaged infrastructure, the sources added.

The operator has been stocking up over the past year and a half, covering any equipment shortages, according to the sources.

Even so, the cost of the fire-related damages is not negligible. It represents approximately 14 percent of last year’s total investments at DEDDIE/HEDNO, which reached 175 million euros.

Up until Saturday, 2,150 utility poles, 120 sub-stations and 109 kilometers of low and medium-voltage power lines in the wider Athens area, Evia and the Peloponnese were reported to have been damaged, but these figures are expected to increase.

Athens outage risk still high as fires burn close to key facility

Authorities remain on edge as the southern front of a fire in Kryoneri, northeast of Athens, could impact a pivotal high-voltage facility in the nearby Agios Stefanos area and severely lessen power supply throughout the capital.

Should the Agios Stefanos unit be damaged by the fires, the wider Athens area will fully depend on another facility, Koumoundourou, for power supply, but it would not suffice to cover electricity demand for the entire city.

Three key grid circuits in Athens are functioning, preventing extensive power outages or scheduled regional disruptions, but the Kryoneri fire is keeping power grid operator IPTO on alert, sources at the operator have informed in a latest update provided today.

Athens has faced elevated power-outage risk this week amid the persisting heatwave conditions. Generation has been sufficient to cover extraordinarily high electricity demand, but fires north of the capital regained momentum yesterday, raising fears of infrastructure damage and prompting authorities to evacuate towns.

Windy weather forecast for today, following numerous days of extreme heat, adds to the challenge as fires could spread.

The directions the fires could take, if they are not subdued, will determine whether authorities will implement a schedule disrupting electricity supply in specific regions to ease the pressure on the grid.

Over fifty fire fronts were burning in various parts of the country late last night.

 

Grid faces new challenge today as heatwave persists

The country’s grid stands to face yet another major challenge today as electricity demand could climb to a new record level, driven up by the sustained heatwave conditions, projected to reach levels of between 40 and 42 degrees Celsius.

Power grid operator IPTO projects electricity demand will reach 10,835 MW, which would be a new all-time high, following yesterday’s level of 10,662 MW.

Natural gas-fired power stations operated by power utility PPC and independent producers will once again contribute dominantly, exceeding 43 percent, according to energy exchange data.

PPC’s combined-cycle Lavrio IV will return to action today following the replacement of technical components at the unit, according to IPTO’s schedule for the day.

The overall input of renewable energy units is expected to rise marginally today, compared to previous days, and cover 16.5 percent of demand.

Electricity imports are also expected to cover 16.5 percent of demand today.

Lignite-fired power stations, including Megalopoli IV, back following repairs, are expected to represent 14.46 percent of the energy mix.

Major-scale hydropower facilities should cover a little over 9 percent of electricity demand.

The government’s crisis management team expects generation will reach required levels and, furthermore, could be boosted by greater output at wind-energy facilities as a result of stronger winds that have been forecast for today.

On the other hand, the prospect of stronger winds is unfavorable for firefighters seeking to subdue a number of fire fronts. Also, the risk of new fires is also higher. In such an event, the grid, under extreme pressure over the past ten days amid the sustained heatwave, would surely suffer further damages.

Distribution network operator DEDDIE/HEDNO crews are continuing efforts to restore power supply in fire-hit Varybobi, north of Athens. The northern section of Evia, northeast of Athens, and Pyrgos, northwest Peloponnese, have also been affected by power supply cuts as a result of fires in the regions.

Strategic reserve necessary, exchange reacts satisfactorily

The end of the Greek energy system’s reliance on lignite, being phased out to help the global climate change effort, needs to be accompanied by a strategic reserve mechanism, which would maintain certain generation capacities outside the electricity market for operation during emergency cases until the ongoing transition to cleaner energy sources has been completed, the extreme heatwave conditions around the country over the past few days have highlighted.

Record-level electricity consumption, combined with power line damages caused by major fires, pushed the grid to the limit, raising fears of widespread power outages.

The government, currently seeking the establishment of a strategic reserve mechanism as part of a Capacity Remuneration Mechanism (CRM), needing European Commission approval, will need to highlight the heatwave-related events that have occurred in Greece over the past ten days.

Sidelined lignite-fired power stations needed to be brought back into action to help the grid meet electricity demand. They offered crucial production contributions representing between 14 and 18 percent of the energy mix.

Lignite-generated output also played a key part in the effort to maintain energy sufficiency last winter, in February, during heavy snowfall that damaged power infrastructure.

The energy exchange has performed rationally during the heatwave conditions, proving its ability to respond to the market’s demand and supply. Day-ahead market price levels rose sharply during the heatwave’s peak and are now subsiding.

 

 

Consumption record expected, industry on switch-off standby

Electricity consumption today is expected to exceed yesterday’s level of 10,700 MWh, a ten-year high, and reach close to 11,000 MWh, which would represent an all-time high, as the prolonged heatwave peaks.

Industrial consumers are awaiting switch-off orders from power grid operator IPTO. Up until yesterday, they had yet to receive such instructions, but a number of industrial enterprises have already switched off voluntarily, while Prime Minister Kyriakos Mitsotakis has urged consumers to exercise restraint in electricity consumption.

Authorities are placing their hopes for grid sufficiency in strong summer breezes forecast for Thursday that should cool temperatures and significantly boost generation through the country’s wind energy facilities.

Though still too early to judge, the grid appears to have stood up to the heatwave’s challenge so far. Minor technical issues and brief outages in various parts of the wider Athens area, Larissa, central Greece, and Agrinio, in the northwest, have been reported.

Authorities remain on edge as the resilience of a largely outdated grid remains uncertain amid daily consumption levels of 9,000 to 10,000 MWh for days on end.

Lignite-generated input is playing a crucial role. It covered between 16 and 18 percent of consumption yesterday. Power utility PPC’s lignite-fired Megalopoli III power station, which has been sidelined for months as part of the country’s decarbonization phase-out plan, operated most of the day yesterday.

 

Energy minister calls emergency meeting, heatwave set to peak

Energy minister Kostas Skrekas is due to visit power grid operator IPTO’s control center in Athens today for an emergency meeting he has ordered to deal with grid sufficiency issues raised by the prolonged heatwave conditions, expected to become even more acute during the week.

Prime Minister Kyriakos Mitsotakis will participate in the emergency meeting along with the head officials of RAE, the Regulatory Authority of Energy, power grid operator IPTO, distribution network operator DEDDIE/HEDNO, and power utility PPC.

The grid is expected to face unprecedented conditions in coming days as electricity demand peaks to reach record levels, prompted by the extreme weather conditions.

The energy ministry has already urged the public to exercise restraint in electricity consumption over the next few days as a means of helping the pressured grid cope with the heatwave’s demands.

The energy minister also staged an emergency meeting yesterday morning with officials of the aforementioned energy sector companies.

Electricity demand today is expected to peak at 9,600 MW, at around 9pm, well over the average peak of 8,115 MW in the first half of 2021.

Imports, lignite, technical issue avoidance key to grid stability

The role of electricity imports, mobilization of power utility PPC lignite-fired power stations that have been sidelined for months, such as Megalopoli III, and unexpected technical failures at grid infrastructure and power stations are three key factors that will determine the performance of the country’s grid over the next few days, during which the ongoing heatwave conditions are forecast to peak and reach temperatures of as high as 45 degrees Celsius.

Power grid operator IPTO has already asked PPC to mobilize the Megalopoli III power station, a 250-MW unit headed for withdrawal and out of action over the past nine months as a result of grid saturation at the network in the Peloponnese.

But the extreme electricity demand has forced this unit’s return, highlighting the grid’s continuing dependence on lignite-fired generation during times of extreme need.

Over the past few days, lignite-based electricity has represented 16 percent of the country’s overall generation.

As for electricity imports, Greece, ideally, will need to import a few hundred MW from North Macedonia, Bulgaria and Turkey. The import potential from these sources is limited to between 1,400 and 1,500 MW annually.

A new interconnection to link Nea Santa, northeastern Greece, with Bulgaria’s Maritsa area in the country’s south, designed to double the grid interconnection capacity between the two countries, will not be ready before mid-2022.

The demand response system, compensating industrial consumers when the TSO (IPTO) asks them to shift their energy usage (lower or stop consumption) during high-demand hours, so as to balance the electricity system’s needs, is another tool that could be activated to save and re-channel approximately 1,000 MW.

Grid passes summer’s first test, demand at 7,600 MW today

The country’s grid is set to face increased pressure as temperatures rise throughout the country and are forecast to reach as high as 39 degrees Celsius today. Electricity demand is expected to rise to 7,600 MW.

The country’s grid coped well during yesterday’s first major test for the summer. Electricity demand reached 7,300 MW amid temperatures marginally lower than the levels forecast for today.

The power utility PPC was forced to use its hydropower facilities. Water deposit levels have been extremely low this year. Further usage of the hydropower facilities will be needed today but PPC is expected to act cautiously as it awaits tougher days ahead.

PPC anticipates it may need to use 50 to 60 percent of its 3,171-MW total hydropower capacity in July.

The heat-related rise in electricity demand has coincided with increased wholesale electricity prices over the past week. They rose sharply from 28.62 euros per MWh on June 28 to 44.52 euros per MWh on Tuesday and 45.01 euros per MWh yesterday.

This first summer test for the grid has once again highlighted the extremely high costs entailed in operating lignite-fired power stations. Their generation costs are now between 90 and 100 euros per MWh.

During this heatwave, PPC, currently moving to withdraw most of its lignite units over the next three years, has opted to minimize its reliance on lignite, preferring instead to cover its generation needs through its natural gas units and hydropower stations.

 

 

 

PPC turns to hydropower facilities as temperatures rise

Power utility PPC has turned to its hydropower facilities to meet heightened electricity demand anticipated over the next few days as a result of hot temperatures in many parts of the country.

PPC plans to use hydropower stations during the peak-demand hours of 11am-3pm and 8pm-10-pm, but the input of these facilities is expected to be contained. Water deposit levels have been extremely low this year.

PPC’s hydropower stations, 15 in total, offer a capacity of 3,171 MW.

Temperatures are forecast to reach as high as 38 degrees Celsius in some parts of Greece. These weather conditions will force PPC to resort to its hydropower units.

The power utility may need to provide between 50 and 60 percent of its total hydropower capacity over the next few days.

Hydropower generation was down 24 percent in the first five-month period this year, compared to the equivalent period last year, according to power grid operator IPTO’s monthly report.

Hydropower generation reached 995 GWh between January and May compared to 1,308 GWh during the equivalent period in 2019.

Hydropower facility contributions to the country’s overall generation represented just 6 percent of the total in January, 4 percent in February, 6 percent in March, 7 percent in April and 9 percent in May.

No signs of market pressure despite European heatwave

Despite soaring temperatures in central Europe, expected to exceed 40 degrees Celsius in France and Germany, electricity markets have been spared of excessive pressure, as highlighted by day-ahead market price reductions prompted by strong wind forecasts, meaning that part of the additional electricity demand will be covered by wind energy generation.

In Germany yesterday, over-the-counter electricity prices fell by 5.25 percent to 37.9 euros per MWh, while in France, price levels of agreements for delivery today fell by 4.5 percent to 31.5 euros per MWh.

In France, peak-hour demand is expected to increase by 1.6 GW to 51.5 GW, while, in Germany, demand is seen remaining steady at 63.4 GW.

These trends can be partially attributed to wind energy production rises in both countries.

Likewise, day-ahead market data for Greece, where temperatures are forecast to drop, has shown no signs of pressure. Today’s demand level of 156,365 MWh is expected to be easily met by thermal production and the RES sector. The Greek system has programmed to export 22,768 MWh.

Grid prepared for demand peak of first heatwave this summer

Given the day-ahead market’s indications, the country’s first heatwave of this summer, expected to increase temperatures to levels of between 37 and 38 degrees Celsius today and tomorrow, should not cause any problems for the grid.

The system is prepared for daily demand levels of 150,760 MWh at a System Marginal Price (SMP), or wholesale price, of 73.549 euros per MWh.

Renewable energy is programmed to cover 21,584 MWh of daily demand and hydropower facilities a further 8,156 MWh.

As for the country’s lignite-fired power stations, power utility PPC’s Kardia II, III and IV, Agios Dimitrios III and IV and Megalopoli III and IV will all be called into action.

So, too, will gas-fueled power stations operated by PPC and private-sector electricity producers (Aliveri V, Lavrio IV and V, Megalopoli V, Heron, ENTHES, Protergia, Corinth Power).

Electricity exports totaling 21,350 MWh have also been planned. Demand is forecast to peak at 2pm, reaching a level of 7,622 MW.

In a statement released yesterday, Greek gas utility DEPA ascertained the country’s gas needs will be covered this summer, as will supply needs for customers in Greece and Bulgaria.

Total gas demand in Greece last year between June 15 and August 15 reached 8.1 TWh and is expected to rise to 9.2 TWh for the equivalent period this summer, according to DEPA.

Gas grid operator DESFA’s incoming LNG shipments for this period this summer will amount to 7.3 TWh, dramatically up from a 2.4 TWh total unloaded at the Revythoussa terminal on the islet off Athens during the summer period last year, according to the operator.