Gas conversion cost support key to further penetration of energy source

The government plans to soon launch a subsidy program offering households incentive to connect with natural gas networks, though coverage of conversion costs, Adonis Georgiadis, the minister for development and investment, has told an event staged by gas distributor Hengas in Kalamata.

The subsidy program will encourage a greater number of consumers, especially households, to make the switch to natural gas, Hengas officials pointed out to energypress.

According to Hengas’ business plan, entailing the development of natural gas networks and stations to cover 11 provincial cities around Greece, the Peloponnese cities of Kalamata and Sparta will be supplied compressed natural gas (CNG) by the first quarter of 2023.

Megalopoli, Tripoli and Corinth have been connected to the gas network ahead of schedule, Hengas has reported.

Hengas’ development plan, budgeted at 65 million euros and approved by RAE, the Regulator Authority for Energy, entails the development of natural gas networks and stations covering a total of 11 provincial cities – Tripoli, Corinth, Megalopoli, Edessa, Polykastro, Polygyros, Deskati, Naousa, Skydra, Kalamata and Sparti – either through direct connections with the country’s gas grid or CNG and LNG transportation.

DEDA, Hengas vying for Peloponnese network projects

A decision by RAE, the Regulatory Authority for Energy, to approve gas distributor DEDA’s development plan covering 2021 to 2025 further complicates matters for gas network development projects in four provincial cities of the Peloponnese as two companies are now vying for the same projects.

Hengas, a successor to the firm Edil seeking to develop and operate the gas networks of the same four cities, Argos, Nafplio, Sparti and Kalamata, has applied for a gas distribution license covering these locations.

RAE, which reached its decision to approve gas distributor DEDA’s development plan covering 2021 to 2025 on December 17, published the decision yesterday, noting requirements have been met for a re-inclusion of the four cities in DEDA’s development plan. This re-inclusion could restore DEDA’s rights for the four cities, according to the authority.

The authority had removed the entire Peloponnese region from DEDA’s five-year development plan a year earlier as related time limits were exceeded.

Following this removal, RAE approved distribution license applications submitted by Hengas for two other cities of the Peloponnese, Korinthos and Tripoli, both previously represented by DEDA.

RAE must now decide on how it will grant gas distribution licenses for the four cities in question.

DEDA appeals Peloponnese gas network plan exclusion

Gas distributor DEDA’s effort for a reversal of decision removing the Peloponnese from the company’s gas network development plan has been rejected by RAE, the Regulatory Authority for Energy.

In response, DEDA, a subsidiary of gas utility DEPA distributing to areas in Greece not covered by the group’s other distributors, has already taken its case to an appeals court.

RAE has granted gas distribution licenses for three Peloponnesian cities, Tripoli, Korinthos and Megalopoli, to Hengas, a successor of the firm Edil.

The Peloponnese was excluded by RAE from DEDA’s five-year network development plan covering 2020 to 2024 as time limits were exceeded, according to the authority.

RAE, however, has approved DEDA’s five-year development plan for 2021 to 2025, outlining the distributor’s development plan for natural gas networks in 34 provincial cities around Greece, Europe’s biggest gas network plan at present.

Networks representing a total length of 1,860 km and budgeted at 270 million euros are planned to be developed by DEDA, prospectively offering over 68,000 connections for consumers in the household, business and industrial sectors.