IPTO

Saudi Greek Interconnection study based on Egypt route

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A feasibility study to be conducted by Saudi Greek Interconnection, an SPV established by Greek power grid operator IPTO and Saudi Arabia’s National Grid for a prospective electricity interconnection linking Greece and Saudi Arabia, is widely expected to be based on a longer route via Egyptian territory, bypassing Israel, as a result of frosty relations between Saudi Arabia and Israel that have not shown any signs of improvement for the foreseeable future.

Though a joint announcement released by IPTO and National Grid earlier this week makes no reference to the project’s route or transit countries to be included in the feasibility study, Israel’s exclusion from the plan has become a common secret.

Egypt’s inclusion as an alternative route to Israel makes the project more complex, but it remains feasible from a technical point of view, experts ascertain.

The project’s feasibility studies, expected to be completed in the first quarter of 2025, will be based on HVDC technology, considered ideal for long-distance grid interconnections.

HVDC technology, ensuring consistent power, voltage, and frequency, while enhancing grid stability efficiency, is being used for the Athens-Crete grid link.

It is still too early to make any estimates on the cost of the Saudi Greek Interconnection as the project’s capacity has yet to be specified.

This will depend on the volume of sales agreements Saudi Arabia can establish with end buyers in Europe for the country’s production of renewable energy. Saudi Arabia’s sunny weather conditions all year round promise great solar energy production potential at relatively low prices.

PPAs at levels of roughly 10.4 dollars per MWh, unheard of in the international solar energy market, were signed in Saudi Arabia just months ago, according to recent reports.

Saudi Arabia aims to establish itself as a major exporter of low-cost solar energy to Europe and achieve net zero emissions by 2060.

Prospective RES projects worth €12bn, investor clarity needed

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A big wave of RES projects planned for development offers an upbeat picture of the sector, but further clarity concerning rules and operating restrictions such as mandatory grid-injection cuts will be needed if investors are to push ahead with plans.

RES projects (wind and PV projects) possessing connection terms yet still undeveloped or at early stages of development are worth 12 billion euros, market officials have estimated.

This prospective turnover figure stands to increase further if new RES projects set to be granted connection terms in return for PPAs established with industrial consumers are also taken into account.

A total of 3,673 RES projects representing a capacity of 12,876 MW (wind energy: 2,567 MW, PVs: 10,309 MW) received connection terms between 2020 and 2023, according to data presented by power grid operator IPTO’s Konstantinos Tsirekis, Director of Strategy & System Development Planning, at an annual event staged recently by POSPIEF, the Pan-Hellenic Federation of Photovoltaic Producer Societies.

This pipeline of prospective RES projects could be stifled if investors lack clarity on grid-injection cut rules as such operating restrictions affect earnings potential of projects, and, by extension, the willingness of banks to finance projects.

RES units over 1 MW face real-time grid-injection cuts

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RES units with capacities of 1 MW and above will be subjected to real-time grid-injection cuts by distribution network operator DEDDIE/HEDNO, while smaller RES units of between 400 KW and 1 MW will not face such cuts, according to an energy ministry bill currently being discussed in Parliament and expected to soon be implemented.

However, smaller units spared of grid-injection cuts will need to compensate larger units for output they would normally inject into the grid, according to the injecting-cutting plan’s framework.

RES units with capacities exceeding 1 MW will need to have injection-cutting equipment installed within a six-month period beginning May 1, according to the draft bill.

DEDDIE/HEDNO will manage this new grid injection-cutting system, based on a model already adopted by power grid operator IPTO, for projects representing a capacity of between 2.5 and 3 GW.

The decision to restrict the grid injection-cutting system to RES units of 1 MW and above is favored at the ministry as it will be easier to implement, given the large number of PVs with capacities below 1 MW.

Macquarie exits Crete link tender over role restrictions

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Australian fund Macquarie has withdrawn from a tender offering a 20 percent stake in Ariadne Interconnection, a Greek power grid operator IPTO subsidiary established for the development of a 1.1 billion-euro grid interconnection to link the power grids of Crete and Athens, the fund has announced.

According to sources, the fund took its decision as a result of a revision to the subsidiary’s statutes that restricts the winning bidder to a minority role in Ariadne Interconnection without voting rights or board participation.

Macquarie was swift to object to this revision following its announcement. Its partner for this tender, Copelouzos group member Faethon, will now be joined by France’s Meridiam Europe.

The revision to statutes of Ariadne Interconnection was requested by RAAEY, the Regulatory Authority for Waste, Energy and Water, in late 2023.

Meridiam Europe, Macquarie’s replacement, is entering a tender offering a major infrastructure contract in Greece for the third time.

The field of candidates vying for a 20 percent stake in Ariadne Interconnection now consists of GEK TERNA; Meridiam Europe- Faethon; Terna, operator of the Italian transmission system; and China’s SGCC.

The candidates have been given a deadline extension until June 21 to submit their bids.

The Crete-Athens grid link is expected to be electrified ty late 2024 and commercially launched in the summer of 2025.

Once Ariadne Interconnection is operating, Crete, Greece’s largest island with a population of roughly 650,000, will be supplied its electricity from the mainland system rather than costly local power plants now operating on the island.

The interconnection promises to reduce a public service compensation surcharge included in electricity bills by some 600 million euros annually, 400 million euros of which concern Crete.

 

Greek-Cypriot-Israeli grid link progressing, delays inevitable

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A prospective electrical grid interconnection planned to link Greece, Cyprus and Israel is making progress but delays seem inevitable, it has been determined following talks in Cyprus between Greek and Cypriot officials.

Greek power grid operator IPTO’s chairman and CEO Manos Manousakis and his deputy Giannis Margaris have just held constructive talks with Cypriot officials on the project.

The IPTO officials informed officials of the Cypriot government and the country’s transmission system operator that they have already commissioned a new cost-benefit study, a prerequisite for the Cypriot government ahead of its decision on whether to participate in this project.

Also, IPTO has forwarded, to the Greek and Cypriot regulatory authorities, an agreement it has signed with Cypriot company Euroasia, the project’s previous promoter, to succeed it at the project’s helm, according to sources at the Greek power grid operator.

This action paves the way for IPTO to be officially declared project promoter of the grid interconnection. However, the Greek and Cypriot regulatory authorities still need to recognize this transfer of project control from Euroasia to IPTO.

Meanwhile, IPTO has already formed a special purpose vehicle (SPV) named Great Sea Interconnector as a subsidiary to be assigned rights and responsibilities concerning the project’s development.

IPTO has repeatedly made note of the need for swifter action, both by the Cypriot government in its decision on whether to participate in the project, and by the regulators for their recognition of the project’s transfer of control. The European Commission has also demanded swifter progress from all parties involved – regulators, operators and governments.

Crucially, Israel has warmed to the prospect of co-developing the project’s second segment that would link the Cypriot and Israeli electrical grids and complete the interconnection, maximizing the benefits to be derived from it.

Fast-track renewable energy PPAs sparking activity

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A recent legislative revision by the energy ministry securing connection-term priority for RES projects that have established PPAs with industrial consumers within a specified 35-day limit has sparked heightened activity between the two sides seeking to gain from this fast-track offer.

PPA applications for RES projects representing a total capacity of between 800 and 1,000 MW are estimated to have so far been submitted to both energy ministry and power grid operator IPTO divisions, as is required. The influx of applications is expected to rise.

RES investors seeking connection-term priority for their projects are required to submit affidavits naming their projects, while the off-takers, in this case, industrial consumers, must also submit affidavits, for the process to be completed.

PPA levels are currently being set at highly competitive prices for energy consumers. Large-scale industries are negotiating PPAs at price levels of between 50 and 52 euros per MWh, while smaller producers are securing prices of between 55 and 60 euros per MWh, sources informed.

However, certain RES project investors, especially from abroad, are expressing concerns over the amendment’s impact on market conditions. Some RES investors fear the revision’s resulting de-escalation in PPA price levels is jeopardizing the viability of their projects, while others are believed to even be considering exiting the Greek market.

 

IPTO, Albania’s OST discuss transmission line progress

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The administrations of Greek power grid operator IPTO and the Albanian transmission system operator OST have just held talks in Tirana to discuss the progress of a new 400 kV overhead transmission line being developed between the two countries.

According to an announcement, technical teams of the two operators will work closely to accelerate the project’s development. The need for close cooperation for swifter progress was highlighted during the meeting.

In addition, the meeting’s participants examined ways to increase interconnectivity between the two countries, an issue that also concerns the wider western Balkans region.

The two operators agreed on establishing technical teams to study how increasing RES penetration and the development of domestic and international interconnections are creating further needs for grid capacity boosts.

These technical teams will be expected to start work, in the coming months, on joint studies with a view to adopting a common approach for strengthening existing interconnections and creating new ones in the region.

IPTO requests special terms for swifter project development

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Power grid operator IPTO, seeking to counter delays faced by projects of public interest, has requested special terms from the energy ministry that would ensure swifter environmental permitting and expropriation procedures for grid projects as well as, wherever necessary, permission to use seashore, land and marine areas.

IPTO’s time frames for projects and Greece’s wider energy transition are being jeopardized by obstacles, primarily environmental permitting, forcing the operator to regularly update its delivery dates.

IPTO’s new ten-year development plant, covering 2025 to 2034, includes over 80 projects of various scale. Completion dates for many of these projects have been pushed back by one to two years.

The energy ministry’s leadership promised to examine IPTO’s request for special terms that could accelerate the progress of projects during a meeting between the two sides last week, sources informed.

Electrical grid project delays are becoming increasingly urgent as energy transition goals set for 2030 are just six years away and loftier renewable energy targets are being set.

 

Small-scale PVs a risk for grid stability, switch resets needed

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Energy-sector authorities have decided to move ahead with legislation requiring small-scale PV producers to make switch-system adjustments that would prevent their PVs from being disconnected from the distribution network as a result of voltage changes.

Small-scale PVs linked to the distribution network have reached a total capacity of roughly 7.5 GW, making them crucial for grid stability.

Power grid operator IPTO officials have underlined that the matter needs to be dealt with urgently.

At a meeting earlier this week, officials of the energy ministry, RAAEY, the Regulatory Authority for Waste, Energy and Water, power grid operator IPTO, and distribution network operator DEDDIE/HEDNO agreed to push ahead with the legislative revision.

Once implemented, it will require PV producers to have their system switches reset so that their PVs could tolerate voltage changes and not be disconnected from the distribution network.

According to IPTO, switch resetting is a simple procedure that can be performed in just a few minutes by technicians.

IPTO lists updated completion dates for grid links in 10-yr plan

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Power grid operator IPTO has revised its time frames for the completion of a series of international grid interconnections, as well that of a project to connect Crete and Athens, in a draft of its new ten-year development plan covering 2025 to 2034, forwarded for public consultation yesterday.

Revisions included in the plan’s draft include the addition of a further two years for the delivery of a second Greek-Turkish electrical grid interconnection, previously set for completion in 2029 but now pushed out to 2031.

The completion target for a second Greek-Albanian grid interconnection was changed to 2031 from 2030.

Delivery of an additional Greek-Italian grid interconnection has been set for 2031. IPTO’s previous development plan did not include a completion date for this project, which indicates significant progress was achieved during the intermediate period.

A project to interconnect the Greek, Cypriot and Israeli grids has been set a 2029 completion date for its Greece-Cyprus segment, an 898-km stretch, from 2027 in the previous plan. IPTO was placed at the helm of this project only last year.

All required studies have been completed for this project’s Greece-Cyprus segment with 657 million euros in support funds provided by the Connecting Europe Facility.

The completion date for an upgrade of the Greece-North Macedonia grid interconnection has remained unchanged at 2030.

The IPTO development plan’s international section also includes two new projects, a Greek-German grid link dubbed the Green Aegean Interconnector, and a Greek-Saudi Arabian grid link named the Saudi Greek Interconnector.

New RES units total 1.5 GW over just 5 months; NECP target exceeded

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Renewable energy facilities representing a capacity of 1.5 GW were launched over a period of just five months between early June and November last year, data provided by power grid operator IPTO data has shown.

RES facilities in operation totaled 12.2 GW in early November, 2023, up from 10.65 GW in early June, 2023, the IPTO data showed.

The November tally included 5.06 GW in wind farms and 6.55 GW in solar energy farms. As had been anticipated, solar energy farm launches recorded a bigger increase, which reached 1.28 GW, compared to five months earlier.

Wind farm capacity growth recorded a more modest rise of 261 MW. The remaining 35 MW in increased RES capacity resulted from biomass-biogas, small-scale hydropower and CHP installations.

RES facilities possessing connection terms totaled roughly 15.5 GW in November, 2023, which, combined with 12.2 GW in RES facilities already operating by that month, results in an overall RES portfolio capacity of 27.7 GW.

This figure greatly exceeds the country’s 2030 target for installed RES capacity, set at 23.5 GW in the revised National Energy and Climate Plan.

 

Ministry, RAAEY, IPTO discuss grid-connection cost coverage

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Officials of the energy ministry, RAAEY, the Regulatory Authority for Waste, Energy and Water, and power grid operator IPTO held a meeting yesterday to discuss details concerning a ministry plan requiring electricity producers (RES producers, gas-fueled power stations) to cover half the amount of their grid connection costs.

The focus of the meeting was on IPTO as distribution network-related amounts, which concern DEDDIE/HEDNO, the distribution network operator, are minimal.

RAAEY officials reiterated concerns that the energy ministry’s formula could force IPTO to significantly increase network usage surcharges.

However, according to the ministry, a formula requiring grid users to cover 50 percent of grid connection costs does require further examination as this approach may end up being regarded as incorporating state aid and could trigger complaints to the European Commission, which has not approved the plan.

The energy ministry will submit a related enquiry to KEMKE, the finance ministry’s Central State Aid Unit. Should this agency deem that the energy ministry’s formula represents a form of state aid, the ministry could inform Brussels for clarity on whether its plan breaches EU law.

RES units with new PPAs also eligible for fast-track grid links

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An energy ministry legislative revision submitted to Parliament yesterday promises absolute grid-connection priority to RES producers who have established green-energy PPAs with domestic energy-intensive industrial producers and farmers as well as RES projects for which PPAs will be established after the legislative revision has been ratified.

Also, one group of RES units will not be subjected to grid-injection limitations for their output.

Power grid operator IPTO is expected to offer fast-track connection terms to a considerable number of RES facilities.

According to sources, RES projects representing an overall capacity of up to 1,600 MW could secure swifter grid connection terms as a result of the legislative revision.

As noted in the legislative revision, the capacity of RES projects to be given fast-track access to the grid will be determined by a ministerial decision to be issued by the energy ministry 60 days after the legislative revision has been ratified.

Leftover grid capacity for wind and solar energy projects not securing fast-track grid access will be drastically reduced.

This diminished capacity is expected to increase again once measures designed to free up grid capacity have been implemented.

However, these measures, to include greater RES grid-injection cuts and battery additions to mature RES projects with finalized connection terms, are not expected for quite some time, meaning connection terms will be handed out bit by bit to RES units not given fast-track connection terms through the new legislative revision.

Industrial PPAs, offering faster RES connections, in demand

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Industrial PPAs are in demand as a new legislative revision submitted to Parliament yesterday by the energy ministry promises swifter connection terms for RES producers.

The ministry’s proposed amendment includes provisions giving connection-term priority to RES projects that have established, or are set to establish, PPAs for their production with energy-intensive industrial consumers.

Taking into account the grid’s capacity limitations highlights how coveted PPAs have become for RES producers as, once the legislative revision has been ratified, capacity available to these producers is expected to further diminish and make even more challenging their ability to connect new RES projects to the grid.

In comments offered to energypress, a number of market officials admitted no clarity exists as to how easy or not it could become for RES producers to ensure connection terms beyond the legislative revision.

Power grid operator IPTO’s deputy chief Giannis Margaris recently informed that 12.5 GW in RES facilities are currently operating, adding that leeway exists for an additional 6 GW without any saturation issues.

Concerns being considered at present are about the future, as connection terms already issued, along with RES projects in operation, total nearly 30 GW, the IPTO deputy pointed out. The ongoing discussion has to do with the ability to offer connection terms in the future, he pointed out.

 

 

 

IPTO, Nexans discuss Crete-Cyprus grid link details

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An electrical grid interconnection to link the Cretan and Cypriot systems, work on which began last month, was essentially officially launched yesterday at a meeting in Athens between Greek power grid operator IPTO’s leadership and top officials of French multinational cable and optical fiber industry Nexans.

During the session – the first major meeting between IPTO’s leadership and Nexans’ chief operating officer Mathias Bruneau, who led a ten-member team – the cooperation’s principles, as well as project fundamentals, including when deep-sea surveys would commence, the interconnection’s routing and schedule, were all discussed in detail.

Installation of the project’s cable is planned to begin in 2026 and be completed in 2029. The Crete-Cyprus grid interconnection, a project budgeted at 1.2 billion euros, will cover a distance of 898 kilometers.

Just days ago, IPTO, the Greek power grid operator, reached an agreement with its Israeli counterpart to assemble technical teams for a cost-benefit analysis concerning the project’s next stage, to link the Cypriot and Israeli electrical grids.

Energy regulators of both countries will rely on the results of the CBA to divide costs that will be recovered through regulated revenues.

The wider project’s two sections, dubbed the Great Sea Interconnector, planned to link the Greek, Cypriot and Israeli electrical grids, will cover a total distance of 1,208 kilometers and is budgeted at 2.4 billion euros.

 

Banks may also join EDEYEP’s SPV for offshore wind farms

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A special purpose vehicle being prepared by the energy ministry and authorities to oversee the development of offshore wind farms in Greece may include a banking group as a partner alongside EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, and power grid operator IPTO.

Banks could play an institutional role in the SPV to be established for what is considered a high-risk domain, whereas, on the contrary, individual investors would be less likely to commit capital to ventures entailing increased risk, officials have noted.

The energy ministry and EDEYEP’s leadership are currently engaged in talks for final decisions on the SPV’s line-up ahead of a related legislative revision, for the SPV, expected to be submitted to Parliament towards the end of March.

The SPV will be headed by EDEYEP so that the company may organize wind and deep-sea studies at marine areas marked out for a first wave of offshore wind farms.

Panagiotis Ladakakos, President of ELETAEN, the Greek Wind Energy Association, has pointed out a series of concerns that will need to be addressed by authorities in the lead-up to the development of the offshore wind farms sector in Greece, including shaping an appropriate structure for upcoming auctions; ensuring support for EDEYEP, so that the company may fulfil its role; and remaining fully aware of positions maintained by local communities.

The ELETEAN president raised these points at an offshore wind farms event staged by RAAEY, the Regulatory Authority for Waste, Energy and Water, as part of Renewable Energy Tech, the main event held by energypress.

Producers’ even share of grid-connection costs unchanged

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The energy ministry intends to keep unchanged a formula limiting power grid operator IPTO’s cost coverage of projects connecting electricity producers to the grid to 50 percent of the cost, ministry officials have told energypress.

In doing so, the ministry has backed IPTO following a challenge by RAAEY, the Regulatory Authority for Waste, Energy and Water, over the formula evenly splitting the cost of grid-connection projects between the operator and electricity producers.

IPTO contends the ministry has opted for a 50-50 formula as part of its effort to accelerate RES investments, increase the energy-mix share of renewables, and achieve national energy-transition targets.

The energy ministry plans to implement a stricter cost-control monitoring system for these projects, as they are carried out by the users, themselves. A formula designed to objectively determine the cost of grid-connection projects is expected to be introduced as a key tool in this monitoring plan.

In July, 2022, the government ratified legislation requiring electricity producers to cover 50 percent of the cost of their grid-connection projects.

This 50 percent cost-coverage requirement concerns renewable energy projects, development of transmission lines connecting thermal power plants, energy storage units, as well as high-voltage consumers.

RES injection cuts at 228 GWh in ’23, bigger cuts in 2024-25

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Renewable energy output not injected into the grid last year, to keep the market balanced, reached a considerable sum of 228 GWh, roughly 1.1 percent of overall renewable-energy output in 2023, while the level of grid-injection cuts is expected to rise further in 2024 and 2025.

At present, power grid operator IPTO is making these grid-injection cuts horizontally and proportionally, limiting the production capacities of RES facilities in operation. Also, cuts are being made at projects enabling remote intervention.

The 228 GWh of renewable energy output not injected into the grid in 2023 resulted from a need to maintain a balance between excess production and demand, as well as to keep imports and exports at an equilibrium – not to prevent grid congestion.

Further grid-injection cuts are anticipated over the next couple of years as RES penetration will increase significantly but electricity demand is seen remaining relatively unchanged.

These grid-injection cuts cuts are expected to drop considerably as of 2026, when a first wave of energy storage units is planned to be launched.

A special framework being developed by a project-management division at the energy ministry will also help subdue these cuts as it should offer clarity to investors by offering a far clearer picture on the proportion of RES output that will not be injected into the system and for which, therefore, they will not be compensated, meaning investors will be able to shape business plans without threatening the financial viability of their projects.

Activity abounding for €1.9bn Great Sea Interconnector

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Greek power grid operator IPTO, project promoter of the Great Sea Interconnector, a 1.9 billion-euro project planned to link the power grids of Greece, Cyprus and Israel, is engaged in talks with the European Investment Bank for a loan of approximately 500 million euros.

IPTO plans to soon stage a teleconference with EIB in order to provide additional information supporting this project as an optimal solution for Cyprus’ energy sufficiency in an effort to remove feasibility reservations expressed by the bank in the past.

Also, IPTO’s chief executive Manos Manousakis and associates have scheduled a series of meetings in Nicosia tomorrow, including with Cyprus’ finance minister Makis Keravnos, for the Cypriot state’s entry into the GSI project with an equity amount of up to 100 million euros. These meetings will be the latest of regular meetings agreed to with Cyprus for talks on the project’s progress.

Besides Israel fund Aluma and Abu Dhabi-based fund TAQA, other investors, both from the wider region as well as the USA, are believed to be interested in becoming project stakeholders.

In addition to the 500 million-euro loan for the GSI being discussed with EIB, a further 500 million euros in loans is expected to be extended by Greek banks, currently in talks with IPTO, while 657 million euros in EU funding is also anticipated.

Adding to the overall activity concerning the GSI’s development, a team of leading officials from Norwegian company Nexans is scheduled to visit Athens on March 13 for talks with IPTO’s leadership. Nexans has begun manufacturing work for the project’s cable.

Hydrocarbons model adopted for offshore wind farms

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The government plans to base its offshore wind farms development strategy on a model successfully used in the hydrocarbons sector. Seismic surveys conducted by Norwegian offshore survey company PGS, a legal framework and other useful details were put into a data room for interested parties with letters of guarantee to examine.

A special purpose vehicle to represent EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, and power grid operator IPTO, for commissioning wind and deep-sea studies at marine areas to host a first wave of 1.9-GW in offshore wind farms will be established as soon as a related legislative revision drafted by the energy ministry is ratified.

The SPV, which should be ready to operate towards the end of March, will then announce a tender for these wind and deep-sea studies, expected to require two years to be completed.

Swift action will be needed so that 1.9 GW in offshore wind farms are under development by the end of the decade, as noted in the National Energy and Climate Plan for 2030.

EDEYEP is already scouring the European and international markets for companies qualified to perform the wind and deep-sea studies, a difficult task as the challenges of exceptionally deep waters will need to be overcome. Few companies are believed to possess the experience to take on these studies.

 

Mytilineos overtakes PPC as leading high-voltage supplier

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The Mytilineos group’s Protergia energy supply company has overtaken power utility PPC in the high-voltage category to become the new market leader, in this category, latest data issued by power grid operator IPTO covering January has shown.

Overall, for all categories combined, PPC shed nearly 3 percentage points in January, ending the month with a market share of 52.84 percent, down from 55.62 percent in December.

Protergia gained ground in all categories combined to capture second place in January with a market share of 14.65 percent, up from 9.19 percent in December. This rise has been mainly attributed to Mytilineos group member Aluminium of Greece’s switch from PPC to Protergia.

Heron was ranked third in all categories combined with a market share of 10.64 percent in January, down slightly from 10.76 percent in December.

In the medium-voltage category, PPC’s market share contracted to 34.7 percent in January from 36 percent in December, while Protergia and Heron both achieved gains. Heron’s market share in this category rose from 16.8 percent to 17.4 percent, while Protergia’s market share increased from 16 percent to 17.1 percent.

As for the low-voltage category, PPC shed just a mild fraction of its still-dominant market share, while Protergia was the big gainer, leaping nearly 1.5 percent, from 7.7 percent to 9.1 percent.

Overall electricity demand in Greece rose by 6.62 percent in January, 2024 compared to a year earlier, the IPTO data showed.

Also, renewable energy captured a 50.6 percent share of the country’s energy mix in January, followed by gas-fueled production, providing 41 percent of the month’s total, and hydropower, at 8.4 percent, the data showed.

 

New meeting in March for west Balkans energy integration

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Next steps to be taken for the interconnection of electricity markets in the western Balkans are expected to be discussed during a new teleconference involving regulators from Greece, Albania, Kosovo and North Macedonia in March, energypress sources have informed.

The meeting is part of an initiative launched last November with the aim of interconnecting Balkan electricity markets through a process involving regulators, operators and energy exchanges from the respective countries.

In the lead-up to the March meeting, RAAEY, the Regulatory Authority for Waste, Energy and Water, has called a teleconference for next week with power grid operator IPTO and the Greek energy exchange so that a Greek position on the west Balkans grid interconnection initiative may be established.

According to well-informed sources, the timetable, at least for now, can only be roughly defined given the immaturity of markets concerned. However, there is considerable interest in seeing this market integration initiative through, while involvement of US authorities is crucial, the sources added.

The initiative is being guided by direct and indirect involvement of US authorities such as the US National Association of Regulatory Utility Commissioners (NARUC), the US Energy Association (USEA), research institute RTI International, and the US Agency for International Development (USAID).

The west Balkans energy integration process is expected to be based on a model adopted for Greece’s market coupling with Italy and Bulgaria.

 

 

 

 

Grid fee hike if producers take on 50% of expansion costs

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RAAEY, the Regulatory Authority for Waste, Energy and Water, has warned the energy ministry that a decision it has reached to make electricity producers responsible for half the cost of expanding electrical distribution and transmission networks would significantly increase regulated network usage surcharges included in electricity bills.

The authority forwarded a letter to the ministry last Thursday to highlight the dangers of this measure, which has been facilitated by a legislative revision ratified back in the summer of 2022.

Surcharges concerning the country’s transmission network, managed by power grid operator IPTO, would be particularly affected, RAAEY noted in its letter.

However, the distribution network, operated by DEDDIE/HEDNO, the distribution network operator, would be less exposed to surcharge increases as it caters to RES producers and concerns lines that do not serve consumers but are connected to privately owned high or medium-voltage substations, new or existing, as well as network extension projects of less than 100 meters in length for connecting individual generators.

US state fund DFC’s Great Sea Interconnector entry a catalyst

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The apparent interest of US state fund DFC becoming a stakeholder in the Great Sea Interconnector, planned to link the power grids of Greece, Cyprus and Israel, would serve as a catalyst for the project as such a development would not only offer an additional funding source to the 1.9 billion-euro project but also boost its geopolitical clout as a result of the US state’s participation.

DFC, the Development Finance Corporation, only supports and promotes projects around the world that are in line with US interests, its recent funding to Onex for the acquisition of the Elefsina Shipyards, west of Athens, being an example.

Planned to stretch 1,200 km and offer 2-GW power transmission capacity, the Great Sea Interconnector, the most mature of interconnection projects envisaged between Europe and the Middle East, certainly meets the regional interests of the US.

This project promises to greatly contribute to energy supply security in the eastern Mediterranean, diversification of supply sources and, above all, development of infrastructure capable of connecting different continents.

DFC, it is being reported, could enter the Great Sea Interconnector as a 10 percent stakeholder. If the American state fund does become part of the project, it would join Greek power grid operator IPTO, the project promoter through its special purpose vehicle; the Cypriot State; Israel fund Aluma; and Abu Dhabi-based fund TAQA.

 

“Saudi Greek Interconnection” established by IPTO and National Grid

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“Saudi Greek Interconnection” established by IPTO and National Grid

The SPV will conduct the feasibility study related to the implementation of the Greece-Saudi Arabia electricity interconnection

The establishment of the special purpose company “Saudi Greek Interconnection” for conducting the feasibility study related to the implementation of the Greece-Saudi Arabia electricity interconnection was signed by the Chairman and CEO of IPTO Mr. Manos Manousakis and the CEO of National Grid Mr. Waleed Al-Saadi at a special event held at the Operator’s headquarters in Athens.

The partnership between IPTO and National Grid, overseen by the Ministry of Energy and Environment of Greece and the Ministry of Energy of Saudi Arabia, reflects the strategic cooperation between Greece and Saudi Arabia in the energy sector, which was agreed at the highest level in the summer of 2022, during the visit to Greece by His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud the Crown Prince and the prime minister of Saudi Arabia.

In the framework of this cooperation, the two Electricity National Transmission Grid Operators signed the Shareholders Agreement on September 27th, 2023 in Athens.

As set out in the Statute of “Saudi Greek Interconnection”, the Greek IPTO and the Saudi National Grid will each hold a 50% stake in the special purpose company (SPV) “Saudi Greek Interconnection”.

The composition of the Board of Directors of the “Saudi Greek Interconnection” is as follows:

1. Waleed Al-Saadi, Chairman of the Board

2. Manos Manousakis, Chief Executive Officer

3. Abulaziz Almuhaiza, Financial Officer- Board Member

4. Khalid Alshammari, Board Member

5. Prokopis Mavronas, Board Member

6. Panagiotis Michalopoulos, Board Member

It is noted that technical teams formed by executives of IPTO and National Grid are already working on the maturation of the electrical interconnection and its design parameters, beginning with the assessment and analysis of the feasibility and commercial viability of the project.

IPTO Chairman and CEO and the CEO of the new Saudi Greek SPV  Mr. Manos Manousakis, said:  “The Greece-Saudi Arabia electricity interconnection is a very important project for Europe that can accelerate the Continent’s energy transition and provide access to new sources of clean energy. With the agreement we have signed with National Grid, the Saudi Greek Interconnection comes into being. This interconnection will further strengthen the energy corridors between the Middle East and Europe, in which IPTO has an active role, contributing to the energy transition of the wider region. Given the value of the Saudi Greek Interconnection for Asia and Europe’s energy objectives, we aim to rapidly mature the interconnection and promote it as a Project of Common Interest for the EU.”

National Grid CEO and Chairman of the Board of the new Saudi Greek SPV Mr. Waleed Al-Saadi, stated: “The Greece-Saudi Arabia electricity interconnection is a key project that epitomizes the strategic cooperation between the two countries in the energy field. The Saudi Greek electricity Interconnection which will interconnect for the first time Saudi Arabia with the European continent,  is the  beginning of strengthen the Kingdom and European interconnection towards energy transition and utilization of Renewable Resources as the two countries stressed the importance of strategic cooperation between them in a number of issues of common interest in the field of energy, including the generation of electricity using renewable energy, the establishment of the power grid, and the export of electricity produced using renewable energy to Greece, and to Europe via Greece. This project will enable the more effective use of renewable energy, access to sustainable electricity generation and improved security of electricity supplies. It will benefit the socio economy of both countries. We thank the team members of both sides for their efforts in the joint steps we have taken so far.”

Further step taken for Greek-Saudi grid link, routing an issue

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Greek power grid operator IPTO and the National Grid Saudi Electricity Company have taken a further step for the development of an electrical interconnection linking Greece with Saudi Arabia by establishing a special purpose company.

The Greek-Saudi project, to stretch over 2,000 km, is planned to serve as a segment of a bigger corridor for transportation of renewable energy from the Middle East and Africa to central Europe.

As a next step, Saudi Arabian Greek Electrical Interconnection, the special purpose company just established by IPTO and National Grid, is expected to conduct environmental, technical and feasibility studies for a High Voltage Direct Current (HVDC) interconnection. However, a series of Greek and Saudi Arabian ministerial approvals are still needed.

The two sides had reached a preliminary agreement in Athens last autumn, following a visit to Greece in the summer of 2022 by Crown Prince Mohammed bin Salman Al Saud, Crown Prince of Saudi Arabia, for talks with Prime Minister Kyriakos Mitsotakis.

The formation of a special purpose company indicates that both sides are eager to push ahead with a Greek-Saudi electrical interconnection, despite fears that the Israel-Gaza war could lead to delays and revisions.

The Greek-Saudi interconnection’s eventual route, a crucial factor in the outcome of the project’s feasibility study, stands as a major challenge and will greatly depend on the condition of bilateral ties between Saudi Arabia and Israel.

Though this relationship appeared to be improving, the Hamas attack on Israel on October 7 and its resulting Israel-Gaza war has impacted ties between Saudi Arabia and Israel.

If current conditions do not change, Saudi Arabia, a Sunni Islam kingdom, will choose a longer route for the project that bypasses Israel and instead runs through Egypt’s Suez Canal to Greece. Should Saudi-Israeli ties improve, the Greek-Saudi interconnection will take a route running from Saudi Arabia to Jordan, Israel and on to Greece, possibly via Cyprus.

Crete-Athens grid link section sabotaged, IPTO reports

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Equipment for the Crete-Athens grid interconnection, Greece’s biggest and most complex electrical transmission line, has been sabotaged by intruders at an underground cable section just north of Crete’s northern motorway, power grid operator IPTO, whose Ariadne Interconnection subsidiary is developing the project, has reported.

The objective of the intrusion was to disrupt the project’s development, not steal equipment, IPTO believes.

The project’s developer has already filed a complaint with local police and is cooperating with authorities to identify the perpetrators. The project’s point of intrusion and equipment will now be guarded, police have informed.

IPTO is also coordinating with Crete’s regional and municipal authorities to address the situation.

At present, the contractor is assessing the extent of damages caused by perpetrators and how they could impact the timeline of the project’s delivery, crucial for Crete’s energy sufficiency.

The project promises to end the island’s energy isolation and significantly reduce the cost of producing energy on Crete.

IPTO’s Ariadne Interconnection subsidiary plans to complete work on the Crete-Athens grid interconnection by the end of this year and commercially launch the project within 2025.

A smaller-scale electrical grid interconnection linking Crete with the Peloponnese was launched in the summer of 2021.

Ministry pushes for energy-storage project progress

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Deputy energy minister Alexandra Sdoukou has made clear her determination to remove obstacles that could delay investments concerning the installation of standalone batteries by companies that submitted successful bids to a first energy-storage auction.

Swift development of energy-storage projects is seen as crucial by the energy ministry so that the need for RES output cuts, performed to prevent grid overloading, may be restrained.

Earlier in the week, the deputy minister chaired a meeting involving various sector officials for an update on the progress of standalone battery projects, equipment orders, plans and timetables.

Aristotelis Aivaliotis, the energy ministry’s General Secretary of Energy and Natural Resources, officials from power grid operator IPTO and RES market operator DAPEEP, as well as the heads of renewable energy and storage projects all took part in the meeting.

Sdoukou appeared determined to speed up procedures concerning the issuance of connection terms for energy storage projects and to also establish a system for monitoring their progress. Investors were asked to send monthly reports on the progress of projects.

At the meeting, IPTO ensured that all RES projects with standalone batteries will have received connection terms by the end of February. Also, the deputy energy minister asked DAPEEP, the RES market operator, to prepare operational contract details.

A total of twelve energy-storage projects developed by seven companies secured the first auction’s entire capacity of 411 MW at an average price, for a year, of 49,748 euros per MW.

Helleniq Energy and Intra Energy (Intrakat) submitted successful bids for three projects each, PPC Renewables secured operational support for two projects, while Aenaos (Mytilineos), Energiaki Techniki, Energy Bank and the Agapi Ilios energy community submitted successful bids for one project apiece.

Stricter RES project timeline considered to free up capacity

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The energy ministry is considering to introduce stricter timelines for the completion of RES projects possessing connection terms, the initiative’s aim being to free up grid capacity.

As part of the effort, the energy ministry has asked for power grid operator IPTO’s opinion on whether existing RES project development timelines should be made tighter in order to eliminate projects that have stalled for a variety of reasons.

The ministry believes that a proportion of grid space that would become available through the implementation of a tighter development schedule for RES projects should be allocated to the distribution network for the development of small-scale photovoltaics. Priority would be given to self-consumption applications.

Deputy energy minister Alexandra Sdoukou presented the fundamentals of the overall plan at a recent event staged by SEF, the Hellenic Association of Photovoltaic Companies. Releasing grid space and distributing this capacity to new projects are the plan’s two key aspects, she explained.

Greater grid-injection restrictions for renewables and the addition of batteries to RES projects with connection terms are paramount in the effort to broaden available capacity, Sdoukou reiterated.

Standalone battery interest surges to 12 GW, data shows

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Investment interest in standalone batteries has surged, as highlighted by applications submitted by investors, to power grid operator IPTO, seeking grid access for roughly 230 standalone battery projects representing 11,970 MW, or just under 12 GW.

This capacity greatly exceeds energy-storage objectives included in a revised 2030 National Energy and Climate Plan that has been forwarded to the European Commission for approval.

According to the revised NECP, Greece’s energy-storage target for 2030 is not expected to exceed 3.1 GW. This target includes standalone batteries as well as batteries linked to RES units.

Projects for which investors are currently seeking connection terms even suffice for the achievement of energy-storage objectives at the end of the next decade.

This surge in energy-storage interest is expected to continue, further extending the waiting list of applicants. As has already become clear, a large proportion of these project applications will not be materialized.

A total capacity of between 1,500 and 1,700 MW for standalone batteries will be offered through three auctions, the second of which is now in progress. RAAEY, the Regulatory Authority for Waste, Energy and Water, intends to complete its appraisal of offers on February 8 before announcing a list of successful bids on February 15.