North Macedonia hydropower plant offers in September, PPC-Archirodon set

Power utility PPC and energy and construction firm Archirodon, in a partnership for North Macedonia’s prospective Cebren hydropower plant, at the Crna Reka river, face a mid-September deadline for binding bids.

The neighboring country’s state-owned power producer ESM, staging the tender, aims to have announced a preferred bidder by the end of the year.

The Cebren facility, planned to offer a capacity of between 333 and 458 MW and annual production of between 1,000 and 1,200 GWh, is expected to cost approximately 600 million euros.

The project is planned to be developed through a Public Private Partnership (PPP) with state-owned power producer ESM.

PPC and Archirodon are among nine of ten initial bidders who have qualified for the competition’s final round. The others are: ENKA-COLIN (Turkey); EDF (France); Cobra-Cobra Hidraulika (Spain); EVN-Verbund (Austria); Webuild SPA Italia-Salini (Italy); Gezhouba Group China (China); Power Construction Corporation of China (China); and Ozaltin-Yapi Merkezi (Turkey).

Wholesale electricity prices ease as RES input increases

Wholesale electricity price levels are expected to drop to an average of 130 euros per MWh in the day-ahead market today, down 20 percent compared to yesterday, a de-escalation attributed to increased RES input, the energy exchange has informed.

Stronger winds have been forecast, increasing the generation potential of wind energy units.

The maximum price in the day-ahead market today is expected to reach 186 euros per MWh and the minimum price will be 92 euros per MWh.

Natural gas-fired power stations are scheduled to contribute the lion’s share, 40 percent, of the day’s electricity needs, renewable energy sources will contribute 24 percent, electricity imports and lignite-fired power stations will each provide 15 percent, while hydropower facilities will contribute 6 percent.

Electricity demand for the today is forecast to drop by 2.5 percent compared to yesterday.

 

 

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.

Connection terms list topped by PPC Renewables, key projects

Power grid operator IPTO has released a list of pending finalized connection terms for RES and combined heat and power (CHP) projects, prioritizing strategic investments and RES projects planned for lignite-dependent areas being phased out as part of the country’s decarbonization effort.

At the top of the list is an application for a 40-MW solar energy park project in Larissa, central Greece, listed under the strategic investments category.

It is followed by applications submitted by PPC Renewables for RES units planned in northern Greece’s west Macedonia area, until now a lignite-based local economy.

These applications submitted by PPC Renewables, a subsidiary of power utility PPC, concern 19 projects promising a capacity of approximately 1.9 GW, planned for the provincial cities Kozani and Florina. They include a 550-MW solar energy park in lignite-dependent Ptolemaida.

Also on the list are a further 76 connection-term applications for RES projects representing a total capacity of approximately 2.5 GW.

Overall, the list includes 96 applications for projects totaling 4.5 GW. Of these, 92 are PV projects, 2 are wind-energy projects, one is a combined PV and wind energy project, while the remaining application is for a small-scale hydropower station.

 

Lignite units to exit in August, according to IPTO plan

The introduction of a demand response mechanism in the balancing market within 2021 is projected in a Market Reform Plan, according to a power grid operator IPTO document that has been forwarded for public consultation until Wednesday.

The document notes that a related grid sufficiency study takes into account structural interventions in wholesale markets. These interventions have been included in the Market Reform Plan.

According to the reform plan, the demand response’s participation in markets is expected to be feasible as of the fourth quarter this year.

The new grid sufficiency study will be attached to the Market Reform Plan, whose draft copy has already been forwarded to Brussels, as previously reported by energypress.

The purpose of the study, along with a road map for wholesale market revisions, will be to support the need for a Strategic Reserve, during a first phase, as well as a Capacity Reserve Mechanism (CRM), planned to succeed it.

Besides these two mechanisms, IPTO also intends to take into account a plan entailing a swifter withdrawal of the country’s lignite-fired power stations. This is based on a key assumption that the power utility PPC, as it has announced, will withdraw remaining lignite units within August due to the unfeasibility of operating these units, nowadays high-cost as a result of elevated CO2 emission right costs.

Megalopoli III was withdrawn in March, even though IPTO had not offered its consent due to grid sufficiency concerns, while Agios Dimitrios, Megalopoli IV and Meliti are expected to follow in August.

The introduction of new units is expected to commence in September, 2022, beginning with a new Mytilineos natural gas-fired power station, and followed by Ptolemaida V early in 2023, initially as a lignite-fired unit before it is converted to gas in early 2026, a change that will also offer a capacity boost to 1,000 MW.

Also, new PPC hydropower facilities are expected to begin emerging midway through the decade, these being Metsovitiko (29 MW) in 2025, Mesohora (160 MW) in 2026 and Avlaki (83 MW) in 2028.

Clearing price hits record level, averaging €128.15/MWh

The clearing price at the energy exchange will exceed 130 euros per MWh for 15 hours today, pushing the average price to a record level of 128.15 euros per MWh.

Driven by the heatwave, electricity demand will climb to a 9,044-MW peak at 12.30pm, according to a forecast by power grid operator IPTO.

Four lignite-fired power stations, power utility PPC’s Agios Dimitrios I, II and IV and Meliti, have been recruited to support the grid’s needs today.

In addition, all of the country’s natural gas-fired power stations – PPC’s Aliveri V, Lavrio IV and V, Komotini and Megalopoli V, as well as the independent units Heron, Elpedison Thessaloniki, Elpedison Thisvi, Protergia and Korinthos Power – are expected to operate today.

Overall electricity demand is expected to reach 175,803 MWh. RES output is seen reaching 30,565 MWh, natural gas-fired power station generation should amount to 115,868 MWh, and hydropower production is expected to total 12,824 MWh.

Wholesale prices driven higher by heatwave, lignite units enter

The heightened electricity demand prompted by the country’s ongoing heatwave is applying intense pressure on wholesale price levels. Given today’s grid requirements, expected to exceed 8 GW, the clearing price at the energy exchange is seen rising to over 100 euros for 16 hours, peaking at 9pm at a price level of €127.82/MWh.

According to a power grid operator IPTO forecast, the system’s demand peak is expected to exceed 8 GW for a three-hour period, reaching as high as 8,108 MW. Overall demand today is seen totaling 156,115 MWh.

In order to cover the grid’s electricity needs for today, IPTO, in addition to the natural gas-fired power stations operated by power utility PPC and independent players, has also recruited four PPC lignite-fired power stations, these being Agios Dimitrios I, II and IV and Meliti.

The RES sector is expected to cover 27,540 MWh of total demand, while natural gas-fired power stations and hydropower units are seen contributing 99,651 MWh and 10,449 MWh, respectively.

As for the natural gas-fired power stations recruited for today’s grid needs, the list is comprised of PPC’s Aliveri V, Lavrio IV and V, Komotini and Megalopoli V, as well as the independent units Heron, Elpedison Thessaloniki, Elpedison Thisvi, Protergia and Korinthos Power.

Electricity demand up 7.5% in April, PPC market share steady

Electricity demand registered a sharp 7.5 percent rise in April, compared to the equivalent month a year earlier, driven by the government’s recent decision to ease lockdown measures, power grid operator IPTO’s latest monthly report has shown.

The relaxation of lockdown measures in Greece prompted a milder 1.5 percent increase in electricity demand in March, year-on-year.

On the contrary, electricity demand fell by 2.5 percent over the four-month period covering January to April, compared to the equivalent period a year earlier, according to the IPTO report.

This decline in electricity demand was approximately half the 5.1 percent drop, year-on-year, for the three-month period between January and March.

Electricity generation rose by 24.6 percent in April, compared to the same month a year earlier, according to the IPTO report.

Natural gas-fired power stations led the way, boosting their production by 52.4 percent, followed by lignite-fired power stations, whose output rose by 21.8 percent, RES units, increasing their generation by 5.8 percent and hydropower stations, which registered a 3.1 percent increase.

In terms of energy-mix shares, the pivotal role of natural gas-fired generation was once again made clear. It captured a 43 percent share of the energy mix in April, followed by the RES sector, capturing 36 percent, lignite with 11 percent, hydropower with 6 percent and electricity imports at 5 percent.

Power utility PPC’s share of electricity demand remained virtually unchanged for a third successive month in April, registering 65 percent, following a 64.8 percent share in March and 65.1 percent share in February.

Protergia, a member of the Mytilineos group, the frontrunner among the independent suppliers, was the only company to increase its market share in April. It rose to 8.2 percent share from 7.95 percent a month earlier.

Heron’s share was steady at 6.3 percent from 6.29 percent in March. Elpedison’s share experienced a mild drop to 4.72 percent from 4.88 percent. NRG’s share in April was unchanged at 3.99 percent, while Watt & Volt’s share slipped marginally to 2.44 percent from 2.58 percent.

PPC eyeing Bulgaria, Romania, Serbia for RES investments

Power utility PPC is looking to make its next major investment moves in the neighboring countries of Bulgaria, Romania and Serbia, solar energy and hydropower projects being a priority.

RES activity has soared in these three countries over recent years and is expected to continue.

PPC, which has not taken any investment initiatives abroad in quite a few years, anticipates it will be ready to announce details on major-scale solar farm projects in these countries towards the end of the year.

Bulgarian officials are making plans for 2.64 GW in new RES installations by 2030, of which 2.2 GW will concern solar farms, according to the country’s ten-year climate plan.

In Romania, the country’s 2030 projection is for investments reaching 5.2 GW in wind farm investments and approximately 5 GW in solar farms.

Serbia, possibly offering the biggest green energy investment opportunities among these three countries, will need between 8 and 10 GW in RES investments to replace coal-fired generation with a capacity of 4.4 GW by 2050, deputy energy minister Jovanka Atanackovic recently announced.

A first round of wind and solar project auctions is planned to take place in Serbia by the end of this year.

A month and a half ago, a partnership involving PPC and international contractor Archirodon advanced to the second round of a tender staged in North Macedonia for construction and operation of a major hydropower plant, Cebren, budgeted between 500 and 600 million euros and with a capacity between 333 and 458 MW.

PPC will continue to pursue this Cebren contract but its main focus will be on Bulgaria, Romania and Serbia and their solar energy project opportunities, sources informed.

 

 

DG Comp motives for restart of older PPC probe unclear

The European Commission has brought back to the fore a Directorate-General for Competition investigation of power utility PPC and power grid operator DEDDIE/HEDNO over market dominance abuse, despite major market changes that have taken place since 2017, when the probe began.

The direction the investigation’s restart remains unknown. Negotiations between Greece and Brussels for new mechanisms being negotiated could be impacted, some pundits suspect.

Also, the government and state-controlled PPC are currently seeking compensation for the power utility’s need to keep lignite-fired power stations and related mines operational for grid sufficiency needs.

No findings of the investigation’s first round have been released. The probe included raids by DG Comp officials, both local and Brussels-based, of the PPC and IPTO headquarters in Athens that lasted several hours, resulting in confiscations of USB flash drives, documents and hard drives.

PPC’s then-administration, in an announcement at the time, informed that the raid concerned a check on the utility’s “supposed” abuse of market dominance in the wholesale market for electrical energy produced from 2010 onwards.

Prior to the investigation, Brussels suspected levels of the wholesale electricity price – known as the System Marginal Price (SMP), at the time – were being manipulated by PPC through its lignite and hydropower facilities.

In 2017, PPC held an 87 percent share of the retail electricity market and 57 percent of overall electricity generation, now down to approximately 67 and 39 percent, respectively.

Four years ago, PPC’s lignite facilities still dominated the corporation’s portfolio and the energy exchange and new target model wholesale markets did not exist.

The current market setting bears little resemblance to back then. Lignite has regressed into an unwanted, loss-incurring energy source that is being phased out by PPC until 2023, while the energy market is undergoing drastic transformation, as was acknowledged by the European Commission Vice-President Margrethe Vestager, also Brussels’ Commissioner for Competition, in an announcement yesterday.

 

Electricity demand falls 9.5% in January amid stricter lockdown

Stricter lockdown measures in January and their impact on business activity prompted a big reduction in electricity demand, down 9.5 percent compared to the equivalent month a year earlier, when lockdown measures had yet to be imposed, according to power grid operator IPTO’s monthly report.

Most of the country’s retailers were forced to disrupt their business activities in January following a period of less stringent retail measures in the form of a click-away service, enabling customers to pre-order and pick up goods from shops by appointment or, this measure’s extension, click-in-shop, permitting customers to enter stores, see and even try products by appointment.

Electricity demand in the high-voltage category was down by 3.3 percent in January compared to the same month a year earlier, the IPTO data showed.

Interestingly, despite the plunge in electricity demand, electricity production increased by 12.9 percent in January, hydropower being the biggest mover with a 221 percent increase, following power utility PPC’s decision to use its hydropower units as a result of elevated water reserves.

The domestic production increase was attributed to a fall in electricity imports and rise in electricity exports, the greatest quantity going to Italy (43%), followed by North Macedonia (24%), Bulgaria (22%), Albania (9%) and Turkey (2%).

RES output was higher by 43 percent in January as a result of strong winds during the month, while, on the contrary, lignite-fired generation fell 43 percent. Natural gas-fueled power station output was also down, marginally, by 2 percent.

In terms of energy mix share, natural gas-fueled power stations held a 36 percent share, RES units captured 35 percent, hydropower’s contribution represented 16 percent, and lignite was responsible for 13 percent of total electricity generation in January, the IPTO figures showed.

PPC covered 66.6 percent of electricity demand in January, followed by Mytilineos (7.52%), Heron (5.89%), Elpedison (4.63%), NRG (3.49%) and Watt & Volt (2.74%).

RES producer certificate applications wave sustained

The increased wave of RES producer certificate applications submitted of late continued with February’s round, attracting 477 applications representing a total of 8.8 GW, energypress sources have informed. This latest round’s deadline expired on February 10.

Applications for solar energy projects were dominant, both numerically and in terms of capacity, totaling 226 applications and 6 GW, respectively.

A total of 167 applications representing 2.65 GW were submitted for wind energy projects.

The remainder of applications concerned a variety of other RES technologies such as small-scale hydropower plants, combined cooling, heat and power (CCHP) facilities, as well as biogas-biomass units.

The supervising body, RAE, the Regulatory Authority for Energy, is soon expected to begin processing applications submitted for the preceding December round and complete this procedure by late March or early April.

Successful applicants of the December round will then be requested to pay required fees for their producer certificates.

A total of 864 applications representing a capacity of 45.55 GW were lodged by prospective investors for the December round.

PM to visit stalled Mesohora dam project, completion ‘near’

Prime Minister Kyriakos Mitsotakis and his energy minister Kostas Skrekas are scheduled to visit power utility PPC’s slow-moving Mesohora hydropower project in west Thessaly on Saturday as part of a wider visit to the area, for an update on its progress.

The Mesohora dam, along with the E 65 highway project in central Greece, will be the main topics of discussion at meetings, a few hours later in Trikala, between the PM, energy minister and regional authorities.

The Mesohora dam, close to completion since 2001, has been delayed by a series of setbacks, including, most recently, November’s nullification of the project’s environmental terms by the Council of State, Greece’s Supreme Administrative Court.

PPC is being deprived of revenue worth 30 million euros annually as a result of the project’s delay.

Efforts now being made to put the project’s completion back on track include PPC’s ongoing preparation of a new environmental impact study, which should pave the way for the dam’s new environmental terms.

The project’s new environmental license could be a swift procedure, enabling a restart of work for completion and trial tests of the new dam by the end of 2023, according to the most optimistic of forecasts.

The Mesohora hydropower facility, an investment exceeding 400 million euros, is designed to have a 160-MW capacity and produce eco-friendly electricity amounts of 360 GWh, annually.

PPC scouring southeast Europe markets for opportunities

Power utility PPC, on a mission, in recent months, to seek investment opportunities in neighboring countries, is carefully planning its first expedition abroad after some time.

Although PPC’s new three-year business plan does not specifically reference investment plans abroad, the company’s interest in other markets has become apparent.

PPC is striving to become a modern corporation and market leader in southeast Europe by 2030, the power utility’s chief executive Giorgos Stassis told a Bloomberg event late last week.

Potential projects on the corporation’s radar include North Macedonia’s Cebren hydropower facility, a 500-600 million-euro project for which PPC has entered a tender with Archirodon as its partner, and, further ahead, RES investments.

Establishing oneself as a dominant player in the southeast European market is a major challenge as highlighted by the participation of ten consortiums, big names included, in the Cebren hydropower plant tender, the latest following a total of ten preceding procedures for this project, all fruitless.

A proportion of PPC’s 1.1 billion-euro EBITDA target for 2023 could be generated by business activities beyond Greece.

The power utility has assembled a working group tasked with scouring foreign-market opportunities in all sectors, including hydropower, photovoltaics, other RES technologies, project tenders, as well as acquisitions.

PPC has made a series of unsuccessful investment quests over the past 18 years, beginning with Romania’s privatization tender, in 2003, for electricity distributors Electrica Banat and Electrica Dabrogea. PPC had advanced to this procedure’s second round but ultimately lost to Italian powerhouse Enel.

PPC bids for North Macedonia’s Cebren hydropower plant

Power utility PPC is among ten international bidding teams from the energy and construction domains that have submitted pre-qualification offers to a tender for North Macedonia’s prospective Cebren hydropower plant, an investment expected to require at least 500 to 600 million euros.

This preliminary stage of the tender concerns water usage licensing rights for hydropower output at the neighboring country’s Crna Reka river. Preliminary bids were opened yesterday.

A related committee to soon be assembled by the North Macedonian government will examine whether the bids submitted fully meet the tender’s requirements before qualifiers are invited to a second round for offers concerning the project’s development in a Public Private Partnership (PPP) with state-owned power producer ESM.

Besides PPC, which has teamed up with energy and construction firm Archirodon, the other nine bids were submitted by: EVN-Verbund (Austria); Gezhouba Group China (China); Power Construction Corporation of China (China); EDF (France); Eiffage-Waterlu-Andritz-Norconsult (France, Austria); Webuild SPA Italia-Salini (Italy); Cobra-Cobra Hidraulika (Spain); ENKA-COLIN (Turkey); and Ozaltin-Yapi Merkezi (Turkey).

The North Macedonian government plans to commission a consultant for preparations concerning the tender’s second round.

In previous years, more than ten tenders have been staged for the construction and operation of the Cebren hydropower plant, but all efforts have proved fruitless, for a variety of reasons.

Prime Minister Zoran Zaev’s administration has noted that a serious effort is being made for the project’s development, ascertaining the current tender will be successfully completed.

It is planned to offer an installed capacity of between 333 and 458 MW for annual electricity production of 1,000 to 1,200 GWh.

Natural gas-fueled generation reaches energy-mix record share of 56.64%

The energy mix contribution of natural gas increased to a record-level share of 56.64 percent in October, a latest energy exchange monthly report has shown.

This significant rise in the energy-mix share of natural gas – to a level never before reported since the full liberalization of Greece’s electricity market – has been attributed to a major slowdown of power utility PPC’s lignite-based generation.

Natural gas-fueled power stations operated by power utility PPC and independent producers further consolidated their place in the energy mix standings, stretching further ahead of other fuel categories.

October’s 56.64 percent energy-mix share captured by natural gas broke this fuel’s previous record of 53.76 percent, registered in August. The natural gas energy-mix share had dipped slightly to 51.74 percent in September before rebounding for October’s record-breaking result.

A year earlier, the natural gas energy mix share was below 50 percent, at 49.86 percent, while lignite’s share was at approximately 22 percent.

Returning to the latest energy-mix figures, natural gas was followed by the RES sector, capturing 33.86 percent, lignite’s share shrunk further to 4.25 percent, and hydropower followed with a 3.21 percent share.

PPC’s lignite-based generation could rise slightly in coming months to cover telethermal needs.

The role of natural gas in the ongoing energy transition towards renewable energy dominance is expected to play a pivotal role for the grid’s sufficiency and security.

Balkan hydropower projects focus of Sarajevo event in November

Τhe prospects and development strategies of the hydropower industry in the Balkan region will be further discussed at the 4th International Summit and Exhibition “Hydropower Balkans”, scheduled to take place November 4-5, 2020 in Sarajevo, Bosnia and Herzegovina.

In the lead-up, organizers have prepared a report on the results of a study focused on the development of hydropower projects in the Balkans.

This report provides:

  • An overview of the hydropower industry in the Balkans per country;
  • A list of the most promising hydropower projects to be developed until 2025 in the Balkan region per country;
  • 120+ experts survey results with key information about Balkans hydropower industry prospects in the upcoming 10 years.

Request the report : https://www.hydropowerbalkans.com/analytics-report-on-current-industry-conditions/

Strategic Partners 2020: Elektroprivreda Republike Srpske (ERS), Elektroprivreda BiH

Balkan hydropower summit planned for November in Bosnia and Herzegovina

The 4th Annual International Summit and Exhibition Hydropower Balkans 2020 is scheduled to take place November 4 and 5 in Sarajevo, Bosnia and Herzegovina.

In the lead-up, organizers of the event have prepared a related report listing all key HPP construction and modernization projects planned to be launched in the Balkan region between 2020 and 2025.

Projects featured in the report include:

  • Čebren HPP in North Macedonia, a 333-MW construction project in North Macedonia whose investment needs are budgeted at 570 million euros.
  • HPP Komarnica construction in Montenegro. EPCG has signed an agreement to produce a preliminary design plan for this construction project, an investment estimated to be worth 237.9 million euros.
  • Dabar HPP construction in Republika Srpske, one of the two entities of Boznia and Herzegovina. Hidroelektrana Dabar, a unit of Elektroprivreda Republika Srpske, issued a public call for financing and building of HPP Dabar, a turnkey/engineering project valued at some 200 million euros.
  • HPPS Foča and Paunci construction, a plan by Republika Srpska and Serbia plan to jointly build two HPPs with a combined installed capacity of between 90 MW and 95 MW. This investment is estimated at 200 million euros.
  • HPP Buk Bijela construction. Serbia and Republika Srpska intend to jointly build the Buk Bijela hydropower plant, a project requiring an investment of 193 million euros.

Requests for the full list of investment projects may be submitted to: https://www.hydropowerbalkans.com/request-the-full-list-of-investment-projects/

MH Elektroprivreda Republike Srpske and JP Elektroprivreda BiH are the November event’s strategic partners.

Gas, renewables cover 76% of electricity demand in June

Natural gas and renewable energy sources covered 76 percent of electricity demand in June, limiting lignite’s contribution to a mere 5 percent, latest figures provided by power grid operator IPTO have shown.

The development highlights the fast-approaching end of the lignite era in Greece, currently in transition towards green energy.

Natural gas-fueled generation in June covered 37 percent of electricity demand, plus 2 percent contributed by cooling, heating and power (CCHP) generation, while renewables contributed 37 percent, including hydropower input of 9 percent.

Highlighting lignite’s severely diminished role in generation, PPC restricted its lignite-fired generation last month by 75 percent compared to the equivalent month a year earlier.

During this same one-year period, renewable energy source generation increased by 7.6 percent, while natural gas-based electricity production was up by a milder 1.2 percent, the IPTO data showed.

In another noteworthy statistic, all of the country’s lignite units were switched off for 40 hours, continuously, for the first time in June.

Low-cost gas driving down wholesale electricity prices

The abundance of low-cost natural gas, enabling electricity producers operating gas-fired power stations to offer extremely competitive prices, is reshaping the wholesale electricity market.

Highlighting this development, the average level of the System Marginal Price, or wholesale electricity price, today, a day of strong demand, is expected to be contained below 40 euros per MWh, at 39.551 €/MWh.

Today’s electricity demand is expected to peak over 8.3 GW with total consumption reaching 168,674 MWh. The wholesale price during the peak hours will not exceed 38.850 €/MWh.

The market conditions for today are not an isolated incident but part of a wider trend that has developed during the week.

Yesterday’s average SMP was just 35.961 €/MWh despite a peak of 8,105 MW and total electricity consumption of 162,777 MWh.

On Wednesday, when demand peaked at 8,072 MW and overall consumption totaled 162,492 MWh, the SMP was 39.243 €/MWh.

The SMP exceeded the 40 €/MWh level just once this week, on Tuesday, reaching 40.689 €/MWh, a day whose peak was below 8000 MW.

The week started with Monday’s SMP average at 39.277 €/MWh, a lower peak of 7,649 MW, and total consumption for the day of 152,716 MWh.

SMP prices have been falling to even lower levels during weekends. Last Sunday, the average SMP was just 30.629 €/MWh with the peak down to 6,370 MW and the day’s consumption at 134,563 MWh.

The grid relied on just one lignite-fired power station, Agios Dimitris III, last Sunday. Demand was primarily covered by gas-fired generation, as well as renewable energy sources, hydropower units and electricity imports.

Power demand dives 14.61% in June as tourism slumps

Electricity demand slumped 14.61 percent in June, compared to a year earlier, despite the month’s lifting of lockdown measures, latest Greek energy exchange figures have shown.

June’s drop in power demand, attributed to the unprecedented decline in tourism activity, was even bigger than the declines registered in April and May, 13 percent and 9 percent, respectively.

Numerous hotels and other tourism industry units have not opened for business. Also, flight bans were essentially not lifted until the beginning of this month.

Responding to the drop in electricity demand, energy producers have restricted output by 16 percent.

Natural gas and renewables dominated electricity generation in June. Natural gas-fueled generation covered 36.56 percent of demand, while RES production covered 26.43 percent, the energy exchange’s June report showed. Electricity imports covered 23.93 percent, hydropower 7.43 percent and lignite-fired production 5.64 percent.

 

 

US wants Greece as partner for pumped storage projects

Recognizing the importance of pumped storage hydropower technology as a means for energy storage, the US is promoting the establishment of a related international forum to bring together countries and companies for co-development of such projects.

According to sources, Greek deputy energy minister Gerassimos Thomas has received an invitation from the US department of energy and the International Hydropower Association requesting Greece’s participation in a US-headed multidisciplinary platform that will seek to reinforce the role of pumped-storage technology in current and future energy systems.

Pumped storage hydropower supply during the pandemic has provided vital energy support for US households, hospitals and schools, American experts have determined.

Washington believes pumped storage hydropower projects are capable of enhancing the reliability of grids and supporting further renewable energy penetration. This technology, regarded as tried and tested, can be further developed in the energy transition era, US experts support.

Pumped storage hydropower currently represents about 94 percent of global energy storage capacity, latest data has shown.

A pumped storage hydropower project planned by Greece’s GEK TERNA in Amfilohia, western Greece, is regarded as a pioneering initiative in Europe.

The country’s energy ministry has approached the European Commission for special funding support for this project, budgeted at over 500 million euros.

 

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.

New Peloponnese RES project applications deferred to 2021

Distribution network operator DEDDIE/HEDNO and power grid operator IPTO have written off any possibility of accepting new RES connection applications in 2020 for new solar and wind energy projects, as well as other technologies, but application procedures could recommence in 2021, energypress has been informed.

Authorities face the challenging task of managing an enormous level of RES investment interest, especially for solar energy projects, before procedures for new-project applications can restart.

In the Peloponnese, where RES development has been held back by system saturation for seven years, a new IPTO study is still needed on the capacity to become available once two transmission networks, the west and east corridors, are completed.

Once IPTO has delivered this study, RAE, the Regulatory Authority for Energy, should lift its saturation-related ban on new RES projects in the Peloponnese and also set capacities available for each technology – wind, solar, small-scale hydropower, biomass-biogas.

However, IPTO’s delivery of the west and east corridors in the Peloponnese does not promise a complete solution as these lines, limited to 400-KV capacities, are well below capacities represented by the level of investment interest.

A fair and effective competitive procedure serving as a selection process will need to be established.

Electricity demand down 12.6% in April, industrial use slumps 23.6%

Electricity demand slumped 12.6 percent in April compared to the same month a year earlier, the biggest drop registered by high-voltage industrial consumers, forced to suspend or restrict output during the lockdown, power grid operator IPTO’s monthly report has shown.

Industrial electricity consumption in April fell sharply by 23.6 percent, the IPTO report showed.

The drop in electricity consumption linked to mining activity was even sharper, falling 55.5 percent in April. Besides the lockdown, this drop was also attributed to significant operational restrictions implemented at power utility PPC’s lignite-fired power plants.

Electricity generation in April fell by 3.2 percent, to 2,893 GWh compared to 2,990 during the same month a year earlier, according to the data.

This reduction was mild compared to major shifts observed in sources of generation. Lignite-based generation fell by 62.7 percent year-on-year, confirming, most emphatically, the commencement of PPC’s decarbonization effort.

High costs for lignite-based generation severely reduced the operational time of PPC’s lignite-fired power plants, limiting lignite’s share of the electricity production mix to just 10 percent in April.

On the contrary, the production share of interconnected RES facilities, benefiting from favorable conditions, rose sharply by 33.9 percent, year-on-year, to capture a market-leading 36 percent share of overall electricity generation in April.

Natural gas-fired power plants followed with a 30 percent share following an 11 percent year-on-year rise in output.

Electricity imports (grid interconnections) contributed 18 percent, while hydropower facilities increased their output by 19.8 percent to capture a 6 percent share in April.

PPC provided 951 GWh, or 56.6 percent of the production, while independent producers covered 43.4 percent.

Among the independent producers, Mytilineos led the way with 228.1 GWh, followed by Elpedison (210.4 GWh), Korinthos Power (154.1 GWh) and Heron II (136.3 GWh).

The IPTO data on generation highlights an increasing shift towards cleaner energy sources.

 

 

Wholesale electricity prices rising, up to €47.30/MWh today

Wholesale electricity prices, determined by the System Marginal Price, are rebounding following a significant drop over the past few weeks.

The rise is being fueled by an anticipated increase in demand. A sidelined 600-MW line linking Greece with Bulgaria, depriving the system of electricity imports via this route, as well as a disruption in operations at an Elpedison power plant in Thessaloniki are two other contributing factors.

In addition, the Revythoussa LNG terminal just off Athens is not under any pressure, a factor subduing gas-fired unit bids and subsequently lowering the SMP.

Based on grid orders placed for today, the SMP has climbed to 47.30 euros per MWh, up from a level of around 30 euros per MWh five days earlier and 14.20 euros per MWh on May 1. Bidding by units has gradually risen since early May.

Demand, today, for domestic consumption and exports is estimated to reach 127 GWh, 40 percent of which is planned to be covered by natural gas-fired power stations, 30 percent by RES and hydropower plants, 23 percent by electricity imports, and 7 percent by lignite-fired power stations.

The SMP level will be determined by gas-fired power stations for 22 hours today, lignite-based generation will shape the price for one hour and imports for the remaining hour.

RES generation in EU captures record share of energy mix

Renewable energy generation captured a record-high 35 percent share of the EU’s energy mix in the fourth quarter of 2019, up from 31 percent a year earlier, primarily as a result of record generation levels registered by the hydropower and wind energy sectors, latest European Commission data has shown.

Hydropower production rose significantly, by over 16 TWh year to year, while major gains were achieved by the wind energy sector, whose onshore wind farms grew by 9 TWh, or 9 percent year to year, and offshore wind farms registered a record year-to-year increase of 3.3 TWh, 18 percent.

Overall RES generation in December totaled 105 TWh, a new record level for the month, as a result of favorable conditions for wind farms and record hydropower production levels.

On the contrary, the energy mix share of fossil fuel fell to 39 percent in the fourth quarter of 2019, down from 42 percent a year earlier.

Greenhouse gas emissions in EU electricity generation fell by approximately 12 percent in 2019 as a result of the increase in RES production and a turn from coal to gas.

CO2 emission right costs increased by 57 percent year to year, to 25 euros per ton, according to the European Commission data.

 

 

PPC Renewables moving ahead with investment plans despite crisis

PPC Renewables, a subsidiary of power utility PPC, has, for the time being, remained unperturbed by the extremely adverse investment conditions prompted by the coronavirus pandemic and moved ahead with green energy project plans.

The company has completed tenders offering development contracts for a 5-MW hydropower facility in Karditsa, mainland Greece, as well as the first 15-MW stage of a 230-MW solar park in Ptolemaida, northern Greece.

The winning bidders of both contracts should be announced around late April or early May, barring unexpected developments.

PPC Renewables has already launched a second tender for the Ptolemaida solar park, once again offering a development contract for 15 MW, ahead of the 230-MW project’s main tender, for 200 MW, expected in mid-April.

The company secured a price of 49.11 euros per MWh for its Ptolemaida project at an auction staged today by RAE, the Regulatory Authority for Energy.

During its construction stages, the Ptolemaida project is expected to create at least 300 jobs, while, when completed, the facility should generate 390,000 MWh, enough to cover the needs of 290,000 persons.

PPC Renewables is expected to be among the first companies to induct projects into the Target Model, in other words, contracts with consumers whose prices will no longer be determined at auctions staged by RAE, the Regulatory Authority for Energy.

Grid entry adjustment for PPC telethermal-linked lignite units

The energy ministry is set to satisfy a power utility PPC request prioritizing the grid entry of its lignite-based production for telethermal support without factoring in this input to calculations determining the system marginal price, or wholesale price.

This requested procedure already applies for PPC’s compulsory hydropower input and RES units.

Under the current system, state-controlled PPC is incurring losses when entering into the grid lignite-fired units for telethermal needs in the west Macedonia and Megalopoli regions. More specifically, the utility is being forced to not operate its gas-fueled power stations, despite their lower operating costs, prompted by the large reduction in gas prices.

PPC’s LNG purchases, as a result, are not being utilized.

The ministry is now preparing a legislative act for the adjustment. It could apply for a limited amount of time to cover remaining telethermal needs in the post-winter season.

Independent producers have reacted against the plan. Some producers appear determined to take the issue to the EU competition authority, noting priority rule exemptions can only be made for RES, Combined Cooling, Heat and Power (CCHP) and hydropower units.