Heron I

PPC’s energy-sufficiency plan for Crete forwarded to Brussels

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An energy-sufficiency plan to cover Crete’s energy needs until an electrical grid-link with Athens is completed for commercial launch, expected within 2025, is now close to being finalized and has been forwarded to the European Commission for approval, energypress sources have informed.

A remuneration formula chosen for the island’s energy-sufficiency plan involves state aid and, as a result, requires Brussels’ approval.

The energy ministry has awarded Crete’s energy-sufficiency project to power utility PPC after alternative solutions involving Heron and Motor Oil failed to make progress.

For its Cretan plan, PPC has reached an agreement with Greek construction and energy group GEK-TERNA to initially lease – for two years, until 2025, and then purchase – the latter’s Heron I, a 147-MW gas-fired power plant, currently stationed in the Viotia area, northwest of Athens.

PPC plans to have the Heron I power plant transferred and reinstalled on Crete in time for this coming summer, when energy demand typically peaks.

A decision was reached, at a recent energy ministry meeting, to cover 75 percent of the power plant’s investment cost, until 2025, through the public service compensation (YKO) account, accumulating related surcharges added to all electricity bills.

The other 25 percent of the investment cost is planned to be covered, between 2025 and 2028, through a remuneration mechanism for emergency reserve units.

The energy ministry is soon expected to bring to Parliament a legislative revision covering the energy-sufficiency plan for Crete.

 

Ministry set to table bill for Crete’s energy sufficiency plan

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The energy ministry is set to submit to Parliament a legislative revision covering Crete’s energy sufficiency plan, both before and after the island’s electrical grid interconnection with Athens, which is scheduled for commercial launch in the summer of 2025, energypress sources have informed.

The revision will pave the way for power utility PPC, which has undertaken the task of ensuring Crete’s energy sufficiency, to proceed with its plan.

PPC has reached an agreement with Greek construction and energy group GEK-TERNA to initially lease, until 2025, and then purchase the latter’s Heron I, a 147-MW gas-fired power plant, currently stationed in the Viotia area, northwest of Athens.

PPC plans to have the power plant transferred and reinstalled on Crete in time for this coming summer, when energy demand typically peaks.

A decision was reached, at a recent energy ministry meeting, to cover 75 percent of the power plant’s investment cost, until 2025, through the public service compensation (YKO) account, accumulating related surcharges added to all electricity bills.

The other 25 percent of the investment cost is planned to be covered, between 2025 and 2028, through a remuneration mechanism for emergency reserve units.

The support formula for Crete will need to be approved by the European Commission as it is regarded as state aid. The energy ministry will begin related procedures with Brussels as soon as its legislative revision is ratified in Greek Parliament.

PPC needs to take swift action to ensure Crete’s energy sufficiency for this coming summer, when the island’s energy deficit is projected to reach 190 MW.

 

RAAEY energy sufficiency plan for non-interconnected islands

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The energy ministry is close to finalizing a plan to resolve energy sufficiency issues of Greece’s non-interconnected islands following a series of meetings and exchange of opinions with power utility PPC, power grid operator IPTO, distribution network operator DEDDIE/HEDNO, and RAAEY, the Regulatory Authority for Waste, Energy and Water, energypress sources have informed.

RAAEY, the sources noted, is currently preparing a plan for the ministry that contains details of a required legislative revision, which, when ratified, will enable PPC to proceed with its energy sufficiency plan for the non-interconnected islands.

The power utility has prepared a comprehensive plan designed to meet the needs of these islands until 2030, using everything from power coupling and gas turbines to batteries. The cost of these solutions is expected to range between 200 and 500 million euros, depending on the payback period and whether some units will be purchased, in addition to leases.

PPC has already reached an agreement with Greek construction and energy group GEK-TERNA for the purchase and transfer to Crete of the latter’s 147-MW gas-fired power plant, currently stationed in the Viotia area, northwest of Athens.

PPC, which has undertaken the task of ensuring energy sufficiency on Crete, plans to have the power plant transferred and reinstalled on the island in time for this coming summer, when energy demand typically peaks.

At a meeting chaired by the energy ministry, a decision was reached to cover 75 percent of the power plant’s remuneration through the public service compensation (YKO) account, accumulating related surcharges added to all electricity bills.

PPC agrees to buy GEK-TERNA power plant for coverage of Cretan needs

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Power utility PPC has reached an agreement with Greek construction and energy group GEK-TERNA for the purchase and transfer to Crete of the latter’s 147-MW gas-fired power plant, currently stationed in the Viotia area, northwest of Athens.

PPC, which has undertaken the task of ensuring energy sufficiency on Crete, plans to have the power plant transferred and reinstalled on the island in time for this coming summer, when energy demand typically peaks.

PPC has included Heron I, the GEK-TERNA gas-fired power plant, into its package of solutions for energy sufficiency on Crete, both before and after the completion of a grid interconnection project to link Crete and Athens.

PPC and GEK-TERNA are now expected to complete their agreement imminently so that the the power plant’s transfer and reinstallation procedure can commence as soon as possible.

As reported by energypress earlier this week, the two companies had been engaged in advanced negotiations for quite some time.

An agreement for PPC’s purchase of the power plant was apparently reached by the two sides a while ago, but a remuneration formula for the power utility’s operation of the power plant on Crete, still not fully linked to the mainland grid, had remained pending.

At a meeting chaired by the energy ministry, a decision was reached to cover 75 percent of the power plant’s remuneration through the public service compensation (YKO) account, accumulating related surcharges added to all electricity bills. PPC will cover the other 25 percent.

The European Commission still needs to approve the remuneration formula as it involves state aid.

 

PPC’s Crete energy sufficiency plans include GEK-TERNA unit

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Measures planned by power utility PPC to help cover the energy needs of Crete, Greece’s biggest island, before and after the completion of a grid interconnection project to link Crete and Athens, include Heron I, a 147-MW gas-fired power plant currently owned by Greek construction and energy company GEK-TERNA.

PPC, which has undertaken the task of ensuring energy sufficiency on Crete, has reached advanced negotiations with GEK-TERNA to purchase the Heron I power plant and transfer it from its current Viotia location, northwest of Athens, to Crete.

The power plant’s installation on Crete could be completed in time for 2025’s summer season, a period when energy demand typically soars on the Greek islands as a result of tourism.

Heron I’s launch on Crete in the summer of 2025 would help safeguard the island from any energy insufficiencies should the commercial launch of the Crete-Athens grid interconnection, scheduled for the same summer, be delayed by a few months. Such a delay would leave Crete short of 220 MW, energypress sources informed. Heron I is also equipped to run on diesel.

In the meantime, PPC needs to take swift action to ensure Crete’s energy sufficiency for this coming summer, when the island’s energy deficit is projected to reach 190 MW.

ENI’s FSRU proposal latest Crete energy sufficiency idea

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Italian energy giant ENI has come up with the latest proposal for a role in resolving Crete’s energy shortage threat, ascertaining it is ready to provide an FSRU unit for LNG storage and gasification that could be moored off the island.

High-polluting diesel generators operating on Crete, Greece’s biggest island, must cease operating by the end of this year, according to European Commission requirements.

The ENI proposal could cover the energy supply needs of power utility PPC diesel-fueled generators planned for conversion to natural gas, as well as a 100-MW gas-fired facility.

Prior to this interest from ENI, energy firms forwarded a series of proposals, all different, to counter the Cretan matter.

GEK Terna was the first to emerge with a recommendation entailing the transfer to Crete of Heron I, a power plant in the Viotia prefecture, northwest of Athens, offering a 150-MW capacity. Qatar’s Powerglobe followed with its Power4Crete proposal, an FSRU for electricity generation. Greek power utility PPC proposed an upgrade of its facilities on the island.

Also, Greek gas grid operator DESFA has included the establishment of a gas terminal at Atherinolakkos, southeastern Crete, into its development program.