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

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

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

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

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


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

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

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

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

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

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

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

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

“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

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

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

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

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

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.

 

Green Aegean entering crucial cost-benefit analysis stage

TSOs of countries that have expressed an interest to participate in Green Aegean, an electrical grid interconnection project envisaged to stretch from Greece to Germany’s south, have begun working on non-disclosure agreements ahead of respective cost-benefit analyses.

According to an initial estimate, the grid interconnection project, to cover roughly 1,400 kilometers, was budgeted at between 7 and 8 billion euros, but the figure is likely to change as more detailed studies are completed.

TSOs of Greece, Germany, Slovenia, Austria and Croatia, a recent addition to the group of countries interested in co-developing the project, are expected to soon commence work on detailed technical and cost-benefit studies.

The studies will include details such as the type of cable technology and converter stations preferred, as well as the cost of each segment.

Greek power grid operator IPTO and its counterparts representing the participating countries – Slovenia’s ELES, Austria’s APG, Croatia’s HOPS, and TenneT, a Dutch TSO operating in a large part of Germany – are expected to each conduct separate preliminary studies before deciding on a final master plan covering the entire grid interconnection project.

The project’s cost estimation, a crucial stage, will be complex as each of these countries have different energy mixes.

IPTO’s chief executive Manos Manousakis held talks Tuesday in Brussels with TenneT’s CEO Mannon van Beek, on the sidelines of a meeting held by ENTSO-E, the European Network of Transmission System Operators for Electricity, for an Offshore Network Development Plan.

Germany has yet to make clear its intentions on the Green Aegean project. The project’s sustainability will be a crucial aspect in the country’s decision. Greek solar energy exports will need to represent a low-cost alternative compared to solar energy production in Germany’s south, the country’s sunniest region.

At present, Greek solar energy production costs between 35 and 40 euros per MWh, compared to roughly 50 euros per MWh in Germany’s south, a price gap resulting from Greece’s sunnier weather and, by extension, lower cost of production.

RAAEY energy sufficiency plan for non-interconnected islands

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

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

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

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

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

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

Manos Manousakis (IPTO): Τime to open debate on the creation of a pan-European HVDC interconnection network

Key speaking points of the Chairman and CEO of Greek power grid operator IPTO at the ENTSO-E event on the Offshore Network Development Plan in Brussels

24/1/2024

“We need a pan-European network of high-voltage direct current (HVDC) electrical interconnections to seamlessly integrate substantial volumes of renewable energy into our power systems. This is essential for harnessing the abundant wind potential in Europe’s sea basins. We need to begin this discussion now if we want to achieve our 2050 climate targets and attain net-zero emissions”. This was stated by the Chairman and CEO of IPTO (Independent Power Transmission Operator) Manos Manousakis during a special event organized by the European Network of Transmission System Operators (ENTSO-E) to unveil the Offshore Network Development Plan, on January 23 in Brussels. High level speakers at the event included Energy Commissioner Kadri Simson and Tinne van der Straeten, the Minister of Energy of Belgium, the country holding the rotating EU Presidency for this semester.

“The time has come for vertical and horizontal electricity transmission corridors to take center stage in the public debate as they are a prerequisite for greening the energy mix, enhancing energy independence and improving the reliability of Europe’s electricity supply,” said Mr. Manousakis, noting that HVDC technology is essential due to its significant technical advantages, ensuring consistent power, voltage, and frequency, while enhancing grid stability and efficiency of the grid.

“In order to fully exploit the huge wind potential of Greece, the South of France, the North Sea, we need this infrastructure. And we need Transmission System Operators to communicate to governments the necessity of cooperation at European level to implement this infrastructure. It is time to plan the projects of the electricity corridors and the necessary interconnections between offshore wind farms in the framework of a holistic approach, considering their viability and cost-benefit ratio from a European perspective as Projects of Common European Interest, rather than bilateral projects between two states. We need to create solutions that support this policy” he said.  “Just as in Greece it is necessary to have vertical energy transmission axes from north to south, the same is required in Europe.” He cited as an example the Green Aegean Interconnector project to transfer the surplus wind potential of the Aegean Sea to the industrial centres of Central Europe.

The National Energy and Climate Plan of Greece foresees production capacity from offshore wind at 2 GW by the end of the decade and 17.3 GW by 2050. “However, our technical wind potential is much greater, and we can increase our ambition if we work together. That is why we need an integrated strategy that provides clear guidelines and appropriate tools for the planning and implementation of Europe’s electricity corridors,” concluded  IPTO’s Chairman.

Cretan grid set for revamp to enable 2 GW in RES projects

The imminent completion of an electrical grid interconnection to link Crete with Athens, a prospect now just months away, will pave the way for a full transformation of Crete’s network through upgrades of existing cables and development of new lines which, once ready, will enable the island’s grid to host just over 2 GW in renewable energy projects.

Power grid operator IPTO’s deputy chief Giannis Margaris discussed project details on Cretan TV during a visit to the island to oversee work on the grid interconnection with Athens.

The choice of the Damasta area, located in the island’s mid-north, as the finishing point of the Athens-Crete cable, is strategically positioned to facilitate power distribution to the rest of the island, the IPTO deputy noted during the interview.

IPTO’s planning takes into account Crete’s grid interconnection with the Peloponnese and – its extension to – Athens; a plan to link the Greek electrical grid, from Crete, with those of Cyprus and Israel; development of new RES units on Crete; as well as the energy security factor, or the ability to reverse energy flow should any emergency arise due to technical issues.

IPTO’s ten-year development plan covering 2024 to 2033, which has been submitted to RAAEY, the Regulatory Authority for Waste, Energy and Water, for approval, includes projects designed to reinforce the Cretan grid.

These are budgeted at 12.9 million euros, until 2024, and 12.79 million euros, until 2025, with a completion target set for 2027.

IPTO preparing 2024 tender for Dodecanese islands grid link

Power grid operator IPTO has begun preparations to launch, later this year, tenders to offer contracts for the development of an electrical grid interconnection linking the Dodecanese islands with the mainland.

These tenders concern the cable sections and two converter stations of the Corinth-Kos interconnection, to serve as the main line linking this group of Greek islands in the Aegean Sea’s southeast with the mainland network.

The link is planned to be developed as a 900-MW High Voltage Direct Current (HVDC) connection, the country’s second, following the Crete-Athens link.

Once completed, the Dodecanese islands link will replace six independent grids covering the energy needs of these islands. Besides providing a link to the mainland, the Dodecanese islands grid interconnection will also facilitate greater RES penetration, IPTO has noted.

The project will include two converter stations, one at a location near Corinth, west of Athens, the other on Kos, at the island’s Mastihari area, as well as two subsea HVDC cables covering a total of 380 kilometers.

The operator is currently developing two sections of a grid interconnection for the Cyclades islands, which, once completed, will link all this group of islands with the Greek mainland.

Ariadne Interconnection launch expected in summer of 2025

Ariadne Interconnection, a 1.1 billion-euro project to link the power grids of Crete and Athens, whose installation has reached the final mile, is expected to be completed by mid-2024, and should be electrified in 2024, enabling its commercial launch in the summer of 2025, Manos Manousakis, CEO at Greek power grid operator IPTO, developing the project,  has informed.

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 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.

Some of the island’s existing power plants are planned to be maintained to provide roughly 400 MW as back up. They include power utility PPC’s main power plant on Crete, at Linoperamata, west of Heraklion.

The Ariadne Interconnection project’s main building facilities on Crete, an AC-to-DC conversion hall, and the control building, are now close to being completed. Manousakis, IPTO’s CEO, will be visiting the facilities today. Corresponding facilities at the project’s Athenian end are also progressing.

The project’s completed smaller segment, running from Crete to the Peloponnese, has already benefited the island since its launch ahead of the summer of 2021, Crete’s first summer without power outages, Crete’s regional governor Stavros Arnaoutakis noted during a meeting with the IPTO chief yesterday.

The Great Sea Interconnector, a project to link the Cretan, Cypriot and Israeli grids,  estimated to be completed around 2029, promises to establish Crete as an energy hub, Arnaoutakis added.

IPTO pitches Green Aegean to new German ambassador

Greek power grid operator IPTO’s chief executive officer Manos Manousakis has held a meeting with Germany’s newly appointed ambassador to Greece, Andreas Kindl, to promote the operator’s proposal for a Green Aegean grid interconnection plan, envisaged to run from Greece to Germany’s south.

To date, German officials have remained reserved, as was highlighted by a meeting last November between Greek Prime Minister Kyriakos Mitsotakis and German Chancellor Olaf Scholz. The Greek leader made note of the Green Aegean project, describing it as a step towards independence from Russian energy, without reciprocation.

The Chancellor’s lack of expression on the project does not necessarily indicate that Germany is opposed to the Greek plan. It promises to be mutually beneficial for both countries. Germany encounters bigger energy needs during winter while Greece must deal with greater energy demand in the summer.

The meeting between Manousakis, IPTO’s CEO, with Germany’s new ambassador to Greece, could end up generating momentum for further talks between officials and convergence.

IPTO has expressed preference for a HVDC-technology subsea route for the Green Aegean grid interconnection that would pass through the Adriatic Sea to Slovenia, followed by an overland route to Austria and Germany’s south.

IPTO recently held related talks with TenneT, Germany’s biggest power grid operator, and Slovenian operator ELES.

 

RES project grid applications reach unrealistic level of 42 GW

RES project applications being submitted to power grid operator IPTO by investors, for grid capacity reservations, have continued at an alarming rate, resulting in an enormous and unrealistic wave of applications representing a total of roughly 42 GW, energypress sources have informed.

The applications concern more than 1,700 prospective RES units holding either producer certificates or production licenses and representing an overall capacity of 34.1 GW, as well as group applications representing 7.9 GW in prospective RES units, the sources noted.

In addition to these grid capacity-reservation applications totaling 42 GW, 15 GW in RES units currently under development have received finalized connection offers, while 10.6 GW in RES units are operating, according to IPTO’s updated ten-year development program covering 2024 to 2033.

This essentially means that RES projects representing an overall capacity of 67.6 GW have either secured grid reservations or submitted applications for reservations.

Quite clearly, a large number of the 42-GW in RES projects for which grid-reservation requests have been submitted will not be developed. The upgraded National Energy and Climate Plan for 2050 has set a 54.4-GW target for installed capacity covering photovoltaics, onshore wind farms, combined cooling, heat and power (CCHP) projects, biomass-biogas plants, and small-scale hydropower plants.

 

Talks with Libya for energy ties, grid link, despite Turkish pact

The prospect of a Greek-Libyan electrical interconnection appears to have been tabled for discussion between Greek officials and Libya’s provisional Government of National Unity, led by Abdul Hamid Dbeibeh, despite issues between the two sides over a Libyan-Turkish pact signed in 2019.

Greece’s Chargé d’Affaires in Libya, Agapios Kalognomis, held a meeting with Osama Al-Darrat, the Libyan Prime Minister’s adviser for electricity and renewable energy, around mid-December, the electrical interconnection being at the heart of the talks on strengthening cooperation between the two sides in the energy sector, energypress sources have informed, confirming Libyan media reports.

Greek power grid operator IPTO appears to have been informed on the development and raised it for consideration, within its competence.

It remains unclear if discussions so far have included a proposed route for the interconnection, in order to determine whether issues could arise regarding the Libyan-Turkish pact and, if so, how these may be addressed.

As for renewables, the prospect of collaboration with Libyan state-owned Renewable Energy Holding appears to have been discussed in greater detail, according to certain sources.

Measures freeing grid space headed for Parliament

The energy ministry, seeking to encourage further RES investment, plans to soon submit to Parliament a comprehensive package of measures designed to free electrical grid space and make available capacity for new RES units.

These interventions will enable power grid operator IPTO to increase the number of new connection terms granted to RES investors.

The ministry’s package of measures, which could be submitted to Parliament before January is out, are expected to include initiatives such as greater grid-injection restrictions as well as terms promoting battery installations at RES facilities without batteries.

The measures will be implemented at a latter stage, as part of a second wave of efforts, by a project management group established by the ministry. This group has been tasked with finding solutions for greater RES penetration and optimal management of the grid’s limited capacity.

The group will need to address and fine-tune details that determine the extent of grid-injection restrictions; specify which RES units will be subjected to these new restrictions; and also inform which RES units may install batteries and under what terms.

The group’s effort will be aligned with the National Energy and Climate Plan’s goals set for 2030.

 

 

IPTO’s role in accelerating green transition, transforming Greece into green energy exporter

By Manos Manousakis*

2023, which is drawing to a close, has affirmed a familiar truth: the impact of climate change requires the formulation, adoption, and implementation of policies addressing recurrent extreme phenomena, including temperature rise, desertification, water scarcity, and environmental pollution. We owe it to the future generations το slow down and ultimately reverse climate deregulation, making the green energy transition, contingent on the strengthening and expansion of electricity grids, an absolute priority.

To grasp the enormity of the challenges posed by the climate crisis and its ensuing phenomena, consider that in the summer of 2023, the Electricity Transmission System grappled with successive or simultaneous fires in Attica (Kouvaras, Dervenochoria), Corinthia (Loutraki), and Thrace.

During these natural disasters, a total of 1,400 switch operations were documented, with flames literally reaching beneath the Transmission Lines. Despite this, the system remained resilient, and the supply of electricity to the distribution network was uninterrupted.

Due to the climate crisis, we also faced unprecedented floods in Thessaly triggered by storms Daniel and Elias. These events led to the collapse of two pylons (400 and 150 kV). Again, the system demonstrated resilience and IPTO promptly restored the damages. However, we recognize that sustaining the reliable operation of the networks necessitates more investments and actions. This commitment is reflected not only in the EUR 200 million Asset Modernisation Programme which we are currently implementing and is due to be completed by 2026, but also in the flood protection measures for our substations and the integration of innovative technologies for the monitoring and maintenance of critical equipment.

However, the energy transition demands not only bolstering the resilience of networks but also expanding them. This reality has been acknowledged by the incoming Belgian EU Presidency, which has listed the increase of investments in the grids among its main priorities. This follows the Action Plan recently unveiled by the European Commission, which recognizes that grids are the “missing link” of the transition. The Plan delineates specific actions and incentives to secure the estimated €600 billion investment required by the end of the decade to achieve the EU’s climate targets.

To meet the ambitious European and international targets, it is imperative to invest in both national networks and cross-border and trans-continental electricity interconnections. These investments will facilitate the optimal utilization of green energy across diverse geographical areas and climate zones.

The role of IPTO

In this regard, IPTO has a pivotal role to play, as it spearheads projects contributing not only to the increased integration of Renewable Energy Sources (RES) in the country’s energy mix, now nearing 50%, but also advancing a key objective of the national energy strategy: transforming Greece into a green energy exporter to Central Europe. This will be achieved through the implementation of cross -border interconnections designed to export surplus electricity generated within the country. Notably, this initiative aligns with the plan to develop 2 GW of Offshore Wind Farms by the end of the decade, capitalizing on the substantial and continuous interest in renewable energy investment that surpasses domestic demand.

At the heart of this plan is the Greece-Cyprus-Israel interconnection, with IPTO having recently assumed the role of the project promoter through its special purpose vehicle, the Great Sea Interconnector.

Notably, during COP28, IPTO signed a Memorandum of Understanding (MoU) with the Ministry of Energy, Trade, and Industry of Cyprus and the Abu Dhabi -based fund TAQA for their potential participation in the project. We have also signed a preliminary agreement with Israeli fund Aluma. Furthermore, funds from the USA and other countries have expressed interest in the project.

These developments are tangible proof for the investor interest after IPTO assumed the role of project promoter of the Great Sea Interconnector. Given its proven expertise and robust financial profile, IPTO is well positioned to execute this highly demanding project efficiently. Construction is slated to commence in 2024.

Given our emphasis on export interconnections, we are maturing a second High Voltage Direct Current (HVDC) interconnection with Italy with a capacity of 1000 MW, which triple the electricity transmission capacity between the two countries. Additionally, the recently completed second interconnection with Bulgaria and the planned second interconnection with Albania align with this overarching strategy.

Simultaneously, we are exploring the feasibility of establishing a direct electricity corridor with Central Europe. South Germany stands out as the ideal endpoint for this corridor, due to its robust electricity system and significant demand for green energy.

The Green Aegean Interconnector, as the Greece-South Germany corridor is called, has significant synergies with the Greece-Egypt interconnection (project GREGY, implemented by Elica of the Copelouzos Group), in which we are actively engaged. Furthermore, it aligns with a visionary project, whose planning we have recently initiated: the electrical interconnection with Saudi Arabia, referred to as the Saudi Greek Interconnection. To facilitate this endeavor, we are in the process of establishing a special purpose company jointly with the Saudi Transmission System Operator, National Grid, who expressed its keen interest in the project during the recent Arab-Hellenic Chamber’s Economic Forum held in Athens.

These projects play a crucial role in promoting not only Europe’s energy transition but also its energy independence from Russia and the exploration of new energy suppliers—a key objective of REPower EU.

As we enter 2024, it becomes imperative to expedite the transition to the clean energy era. It is essential to underscore that the journey of the green transition may pose challenges, yet it is a one-way street, a path that cannot and should not be reversed.

*Mr. Manos Manousakis is the Chairman and CEO of Independent Power Transmission Operator (IPTO).

 

TSOs preparing power sufficiency plans for the islands

The country’s TSOs are planning a transitional strategy ensuring electricity supply for the country’s non-interconnected islands still not linked to the mainland grid, as well as a second plan that would boost production capacity and serve as back-up once subsea cable interconnections linking non-interconnected islands have begun operating.

The transitional plan, the most urgent of the two initiatives, is the responsibility of distribution network operator DEDDIE/HEDNO and concerns providing energy coverage for islands to be interconnected as part of the fourth phase of the Cyclades interconnections, plus the Dodecanese and northeast Aegean islands, until power grid operator IPTO has completed its interconnection projects linking all these regions with the mainland.

Development of these projects will need to be synchronized with power utility PPC’s gradual withdrawal of old power plants it operates on islands, when they experience functional issues. Spare parts for these units, now outdated, are difficult to find.

PPC intends to gradually withdraw 32 old power plants with a total capacity of approximately 50 MW from non-interconnected islands. The power utility will do likewise with old facilities on Crete.