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.

Two-year extension sought for Cretan power market model

The energy ministry has forwarded a two-year extension request to the European Commission for its Cretan electricity market model.

Brussels had approved the model until the end of 2023, but the ministry now needs an extension until the end of 2025 as a result of delays in the development of the Crete-Athens grid link. Its delay has been attributed to licensing delays and pandemic-related restrictions.

The project’s delays have made it necessary to extend the current model, which was launched November 1, 2021 to coincide with the commercial launch of the Crete-Peloponnese link, the first segment of the Crete-Athens link.

Greek power grid operator IPTO expects work on the Crete-Athens link to be completed at the end of 2024 and be ready for its commercial launch in mid-2025, following testing.

Power utility PPC plans to withdraw 41 power plants operating on non-interconnected islands by 2028. Nine of these power plants are on Crete. PPC intends to withdraw five of its Cretan power plants, offering a capacity of approximately 60 MW, by 2025.

 

March deadline for 20% stake in Ariadne Interconnection

Qualifiers through to the second round of a tender offering a 20 percent stake in Ariadne Interconnection, a subsidiary founded by Greek power grid operator IPTO for the development of the Crete-Athens grid interconnection, are expected to be set a 1Q 2024 deadline for their binding bids, energypress sources have informed.

All four first-round entrants have qualified for the procedure’s next stage following approval by RAAEY, the Regulatory Authority for Energy, Environment, and Water. All four are expected to maintain their interest and submit binding bids.

The procedure’s Virtual Data Room, to offer bidders full details on the project, is expected to be made available early in the new year, the sources noted. The shareholders’ agreement and business plan are among the details to be made available to participants.

The tender’s four second-round participants are GEK-TERNA; a partnership involving Macquarie Super Core Infrastructure Fund and Phaethon Holdings (Copelouzos group); Italian operator Terna SpA; and StateGrid International Development Belgium.

Taking into account the Crete-Athens grid interconnection’s current rate of progress, IPTO expects the project’s development to be completed late in 2024 and, following testing, be ready for commercial launch by mid-2025.

Progress is also being reported on the equity make-up of the newly established Great Sea Interconnector, another IPTO subsidiary, established for the development of the electrical grid interconnection to link the Greek, Cypriot and Israeli systems.

The Cypriot State, which has already expressed interest to become a shareholder of the Great Sea Interconnector consortium, is working on completing its entry by late January.

IPTO has also signed Memorandums of Understanding for the same purpose with TAQA, the Abu Dhabi National Energy Company, and Israeli fund Aluma. Other investors, including from the USA, have also expressed interest to join the Great Sea Interconnector consortium.

IPTO’ aims to complete the Great Sea Interconnector consortium’s equity make-up by the end of March, 2024 with a majority stake for the operator and the Cypriot State.

Crete-Athens power grid link ‘to be launched mid-2025’

Development of an electrical grid interconnection to link the Cretan and Athenian systems is expected to be completed a year from now, while the project’s commercial launch is slated for mid-2025, following testing, Greek power grid operator IPTO’s chief executive Manos Manousakis has told an OT (Oikonomikos Tahydromos) Forum.

Also, two sections of a grid interconnection being developed at the Cyclades islands, one linking Naxos and Santorini, the other Milos, Folegandros and Serifos, are expected to progress at the aforementioned rate, the IPTO chief executive informed the event.

Once the two Cyclades segments are completed, all the Cyclades islands will be interconnected with the Greek mainland.

An interconnection project to link the Dodecanese islands with the mainland is planned to follow. Work is expected to begin with a segment from the Dodecanese to the Peloponnese, though other options are also being considered, the IPTO head noted.

Stagnant RES projects to be terminated as ‘non-existent’

The energy ministry plans to classify RES projects that have secured connection terms but remained stagnant as non-existent in order to free grid capacity for new projects with development prospects.

According to data included in power grid operator IPTO’s ten-year development plan, RES projects with a capacity of approximately 14.9 GW are currently registered for development.

The eventual cancellation of stagnant RES projects could make available an estimated 2.5 GW in freed grid capacity for new projects. The exact figure on freed up grid capacity will be determined following IPTO’s inspection of the 14.9 GW portfolio.

This solution, clearing the grid of dormant RES projects, is intended to represent part of a wider effort by the energy ministry to utilize the grid and maximize RES growth in Greece.

Other initiatives are expected to include RES output grid-injection restrictions and mandatory installation of batteries to RES units in exchange for fixed tariffs.

Cypriot State’s entry into Great Sea Interconnector assured

The Cypriot State’s entry into Greek power grid operator IPTO’s Great Sea Interconnector subsidiary formed for the development of a Greece-Cyprus-Israel electricity interconnection is considered certain following positive high-level talks held yesterday in Cyprus.

An IPTO team led by CEO Manos Manousakis discussed the project with Cyprus’ president Nikos Christodoulides, joined by administration’s energy minister Giorgos Papanastasiou. The IPTO team also met with Cyprus’ regulatory authority for energy.

It is now considered just a matter of time before the finalized results of a feasibility study conducted on behalf of the Cypriot State are delivered. The study is expected to give the green light for a final investment decision.

The Cypriot State is expected to enter the Great Sea Interconnector subsidiary with an initial sum of 100 million euros from the Recovery and Resilience Facility (RRF).

IPTO is also expected to hold talks with two other prospective Great Sea Interconnector entrants, Israeli fund Aluma, and TAQA, the Abu Dhabi National Energy Company, for their participation in the project, budgeted at 1.9 billion euros, with 657 million euros secured through the Connecting Europe Facility.

The consortium could feature the three aforementioned participants along with IPTO, but it is still too early to tell if this could result in respective 25 percent stakes for all four.

Greece-Cyprus-Israel power grid link nearing development

The Greece-Cyprus-Israel electricity interconnection, now named the Great Sea Interconnector, is nearing development, its prospects driven by new investors and, above all, increased funding.

The project’s next big steps will develop along three fronts. Firstly, Norwegian company Nexans will install the cable section of the Crete-Cyprus interconnection, which, according to Manos Manousakis, CEO of Greek power grid operator IPTO, is imminent.

Secondly, the Greek operator will hold discussions with three prospective investors, namely the Cypriot State, Israeli fund Aluma, and TAQA, the Abu Dhabi National Energy Company, for their participation in the project.

Thirdly, funding details needs to be shaped. These details remain unclear at this stage as the project’s shareholders, and their stakes, have yet to be finalized.

The consortium could feature the three aforementioned candidates, along with IPTO, but it is still too early to tell if this could result in respective 25 percent stakes for all four.

A 657 million-euro sum from the project’s 1.9 billion euro has been secured through the Connecting Europe Facility. The remaining 1.3 billion euros will be raised through bank loans, both through the EIB and commercial banks, as is customary for this type of project.

Nexans is expected to begin installing the project’s cable for the Crete-Cyprus section as soon as a deposit is provided by CINEA, the European Climate, Infrastructure and Environment Executive Agency, managing decarbonization and sustainable growth.

Balkan potential highlighted by IPTO’s interest in MEPSO

Greek power grid operator IPTO’s interest, for some time now, to acquire North Macedonia’s grid operator MEPSO, either through a strategic agreement or a share capital increase, points to the existence of opportunities for energy infrastructure upgrades in the neighboring country as well as the growing role to be played by electricity networks and corridors in the wider region.

As the energy transition progresses, electricity networks and corridors will no longer merely serve as electricity transmission lines, but promise to gradually replace oil and gas pipelines.

Greece, at present, remains sorely absent from the wider Balkan energy-sector activity. IPTO has yet to make any big moves beyond the country’s frontiers.

Though the western Balkans are currently experiencing a green-energy boom with RES investment growth having reached double digits in some countries, regional networks are outdated and insufficient to support this robust investment interest.

Though it is vitally important for Greece to assert itself as an influential energy-sector player in the Balkans, the flow of energy from the region towards central Europe is currently being controlled by Italy.

Italy’s influence, on energy matters, over the Balkans was expanded in recent years with Montenegro as a base and Italian power grid operator in a leading role, as highlighted by its acquisition of a 22 percent stake in Montenegrin power grid operator CGES.

Identifying the pivotal energy role of the Balkans early on, Italy took a strategic decision for the development of a first route linking the western Balkans and Europe in the form of a 445-km line – 423 km of it as an underwater Adriatic Sea crossing – from Pescara, on Italy’s east coast, to Kotor, on Montenegro’s Adriatic coast.

The small Balkan country has since become a bridge of energy exchange between eastern and western Europe as this Adriatic link has interconnected Italy’s network with those of Bosnia and Herzegovina, Serbia, Kosovo, Albania, and, by extension, Bulgarian and Romania.

Italian power grid operator Terna is now examining the prospect of boosting this line’s transmission capacity from 600 MW to 1,200 MW. Giuseppina Di Foggia, CEO at Terna, recently held talks in Rome with Montenegro’s new president, Jakov Milatovic, about this project.

 

Subsea survey for Greek-Italian cable capacity boost early 2024

A project aiming to triple the capacity of the Greek-Italian electrical grid interconnection is set for a challenging stage that entails thorough mapping of the seabed along the existing line’s 220-km route.

Survey work for this project is planned to begin in early 2024 following an agreement reached earlier this week at a wide-ranging Athens meeting between Giuseppina Di Foggia, CEO at Italian grid operator TERNA, and Manos Maousakis, the chief executive at Greek power grid operator IPTO.

The TERNA chief was joined by a team that included the company’s CFO as well as the head of major projects and international development.

Greece is under growing pressure to establish new export outlets for the country’s excess renewable energy. The country’s electricity exporting activity is becoming more frequent during midday hours. Also, Italy, it should be pointed out, is Europe’s biggest electricity importer.

According to sources, the Greek and Italian power grid operators are exploring all options, based on the respective experience of each company, to boost the capacity of the Greek-Italian subsea cable link from 500 MW to 1,500 MW as swiftly and efficiently as possible.

At this week’s meeting, held Tuesday, IPTO and TERNA also agreed on the need for new corridors transporting RES production from southern to central Europe.

TERNA, Europe’s biggest operator, is a highly influential market player operating 26 international interconnections and present on three continents.

 

Project group to prepare framework for RES output cuts

A project management group recently founded by the energy ministry will, as its first task, prepare a recommendation for the ministry concerning the establishment of framework regulating green-energy output cuts over a long-term period, meeting the grid’s needs and further RES penetration for at least ten to fifteen years.

The group, led by head coordinator Stavros Papathanasiou, professor at the National Technical University of Athens, includes officials from the energy ministry, energy exchange, power grid operator IPTO, distribution network operator DEDDIE/HEDNO, and RES market operator DAPEEP.

The proposed permanent framework is expected to distribute RES output cuts across various project categories.

The group will also consider whether RES projects not injecting output into the system should be compensated, under specific terms and conditions.

First support auction for PVs with batteries by February

The energy ministry is working to complete plans by the end of this year for a first auction, no later than February, 2024, offering investment and operational support to mature-level solar energy projects possessing connection terms and planned to incorporate batteries, energypress sources have informed.

According to the sources, the upcoming first auction will offer investors support for a total capacity of between 200 and 300 MW, as part of the ministry’s wider plan to aid a 2-GW portfolio of solar energy farms with batteries behind the meter.

The ministry’s objective is to preserve as much grid capacity as possible. The addition of batteries to solar energy projects, even if small-sized with capacity to store just one hour’s worth of energy, offers a 50 percent reduction in grid capacity occupied by projects.

A considerable number of projects are expected to take part in the series of support auctions, power grid operator IPTO’s development program data for 2024 to 2033, published last June, has indicated.

According to this data, 10,590 MW of photovoltaics have connection terms for the transmission system and 1,141 MW for the distribution network.

As previously reported by energypress, RES projects taking part in these auctions will face strict electrification deadlines, the objective being to limit participation to truly feasible RES projects with batteries.

As a result, IPTO will know when grid capacity will be released by photovoltaics and be in a position to offer investors precise information on connection-term delivery.

Offshore wind farm development committee seeking grid-link model

The country’s Coordination Committee for the Connection and Development of Offshore Wind Farm Projects will explore ways to connect Greece’s prospective offshore wind farms with power grid operator IPTO’s network at a meeting today.

Although authorities remain a long way off from final decisions as the exact locations of offshore wind farms must first be determined, discussion, so far, on the connection model has been based on two formulas for shallow and super-shallow alternatives.

In the case of the former, the cost of offshore wind farm links to the nearest IPTO sub-stations would be entirely covered by investors, while, in the case of the the latter, IPTO would provide connection lines all the way to offshore wind farms.

In addition, authorities are discussing substation alternatives and are considering 33-kV and 66-kV options.

IPTO considering fiber optics for EuroAsia Interconnector

Grid Telecom, a subsidiary of Greek power grid operator IPTO, is considering to attach a fiber-optic cable system onto EuroAsia Interconnector, a prospective grid link to connect the Greek island Crete, Cyprus and Israel, in order to meet rapidly growing demand in the wider region for online services.

Investments in data centers, storing ever-increasing information via the internet, require fiber-optic cables. IPTO has identified a key opportunity in the region, given the solid basis of its relations with the Israeli side.

Grid Telecom is considering taking on the project, whose budget is expected to reach tens of millions of euros, with two partners, one of which is Tamares Telecom, a fiber-optic network operator and subsidiary of the Israeli fund Aluma.

The project is planned to serve the needs of EuroAsia Interconnector as well as those of other customers.

Interest in the Greece-Cyprus-Israel interconnection is extremely strong. Aluma is awaiting the results of a due diligence procedure before becoming a shareholder in the EuroAsia Interconnector project. The Israeli energy ministry is also very keen on its development. Highlighting the level of interest, the ongoing Israel-Gaza war has not altered project plans.

Just a month ago, Grid Telecom and Tamares Telecom announced that they had completed the initial design for the intercontinental fiber optics linking Greece with Cyprus, Israel and the Arabian Peninsula.

 

Greek pavilion for first time at upcoming COP28 conference

Greece will have its own national pavilion at a UN climate change conference for the very first time when officials meet for a 28th edition, COP28, in Dubai November 30 to December 12, sources have informed.

Over 25 events are planned by the energy ministry to promote Greek energy projects contributing to the energy transition, the sources noted.

The country’s presence at the conference with an independent pavilion comes following intensive efforts since last year. The Greek pavilion will provide a platform for crucial Greek energy projects.

At the preceding event, COP27, the then-Secretary General of Energy and Mineral Resources, Alexandra Sdoukou, now the deputy energy minister, had presented a GR-Eco Islands initiative, involving small islands that can serve as examples, models and case studies for green sustainability as a whole.

At COP28, the energy ministry will be organizing – with Sdoukou at the helm – a series of events showcasing, internationally, the country’s initiatives on sustainable development, green energy and energy transition. DESFA, the gas grid operator, IPTO, the power grid operator, and SEV, the Hellenic Association of Industrialists, will be involved, as will Enterprise Greece, the official investment and trade promotion agency of the Greek State.

New RES auctions for battery-equipped units in the making

A series of RES auctions starting in early 2024 for battery-equipped renewable energy projects of around 2 GW, which will be open to investors who have already secured connection terms, is a key feature of a plan being shaped by energy minister Thodoris Skylakakis to deal with grid insufficiencies.

A decision on the matter seems to have been taken, as suggested by the minister during an interview yesterday at the ongoing two-day Renewable & Storage Forum conference in Athens. He did not elaborate as a number of technical issues remain pending.

Strict conditions will be set for swift electrification of these new RES projects. It is believed that RES projects securing tariffs at the first auction will need to be operating by December 31, 2024. All ensuing auctions will also commit bidders to swift launches of new RES projects.

This zero-tolerance approach comes as a complete contrast to the progress of 3 GW in RES projects that had secured connection terms back in 2020 but have yet to be launched, as was pointed out at the conference by power grid operator IPTO’s chief executive Manos Manousakis, who called for stricter regulations.

 

Industry partially satisfied with gov’t energy-cost strategy

SEV, the Hellenic Association of Industrialists, has expressed partial satisfaction over government action aiming to reduce energy costs for energy-intensive industries.

Energy minister Thodoris Skylakakis has reportedly pledged to meet as many industrial-sector requests as possible, even within the remainder of 2023.

These requests include a CO2 cost-offsetting mechanism between 2021 and 2030; a two-year extension, covering 2024 and 2025, of a Temporary Crisis and Transition Framework adopted by the EU as economic support for member states following Russia’s invasion of Ukraine; as well as a demand response mechanism rewarding flexibility.

However, the ministry does not appear keen to act on requests made by Greek industry for a reduction of grid and distribution network usage surcharges imposed by power grid operator IPTO and distribution network operator DEDDIE/HEDNO, respectively.

Further industrial-sector requests for connection-term priority concerning green-energy PPAs and an end to a transit fee on gas from Bulgaria also seem unlikely to be accepted by the ministry.

 

Electricity import-export deficit narrows in 2022

Greece remained a net importer of electricity through the country’s grid interconnections in 2022 but the gap between imports and exports was narrower compared to previous years, data included in power grid operator IPTO’s ten-year development program for 2024 to 2033 has shown.

Greece was a net importer at all its grid interconnections except for those linking the country with Italy, according to the data.

Electricity net imports through Greece’s grid interconnections were subdued in 2021 and 2022 compared to previous years, when imports greatly exceeded exports, especially between 2014 and 2020, the IPTO figures showed.

IPTO’s ten-year development program for 2024 to 2033, forwarded for consultation by RAAEY, the Regulatory Authority for Waste, Energy and Water, includes plans for a series of new interconnections with neighboring systems.

Speaking at the annual Economist conference in Athens, held last week, Ioannis Margaris, IPTO’s deputy chairman and general manager of technology, system development and strategy, noted a need to improve the country’s interconnectivity with neighboring markets.

New corridors for electricity transmission from south to north have become a strategic priority in recent years as RES output is expected to greatly exceed domestic demand, the IPTO deputy told the event.

Preventive action plan given green light following revisions

RAAEY, the Regulatory Authority for Waste, Energy and Water, has approved an energy-crisis  preventive action plan following revisions made through consultation.

The authority clarified that an operating-life extension granted to lignite-fired power stations is part of the Greek State’s new plan addressing energy security issues, especially following European Commission guidelines promoting a reduction of natural gas usage and an end to the continent’s reliance on Russian gas.

The plan’s original section on lignite-fired energy needed to be corrected as its text created a misconception indicating that any lignite-unit participation in the country’s generation mix is governed by a special reserve mechanism. Such a mechanism does not exist.

Power utility PPC, in consultation that preceded the preventive action plan’s approval, clarified that lignite-fired power stations, until they are withdrawn, remain registered with power grid operator IPTO and, therefore, participate in markets while also taking into account other operating obligations such as provision of regional telethermal heating.

Terms regarding the usage limits of the Revythoussa LNG terminal’s storage facilities in the event of a heightened Level 2 or 3 natural gas crisis were also modified. The initial text proposed that the maximum usage time, in the event of a crisis, be reduced to six days, but, in the finalized plan, this limit reduction was reworded to “at least six days”.

IPTO submits Green Aegean proposal to ENTSO-E

Greek power grid operator IPTO has submitted a Green Aegean grid interconnection plan, envisaged to run from Greece to Germany’s south, to the ten-year development plan of ENTSO-E, promoting closer cooperation across Europe’s TSOs to support the implementation of EU energy policy and achieve Europe’s energy and climate policy objectives.

The project’s inclusion in the development plan of ENTSO-E, representing operators from all of the EU’s 27 member states, would represent a significant first step towards PCI/PMI status for the project, securing EU funding, as planned by IPTO.

IPTO prefers 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.

TenneT has expressed strong interest in the Green Aegean grid interconnection and the prospect of collaborating with IPTO on the project’s development for a link with Germany’s grid in the southern part of the country.

HVDC-technology enables transmission of large quantities of electricity over long distances via submarine cables, as well as fast and accurate control of power flow, enhancing grid stability.

 

Incentives, through auction, planned for PVs with batteries

The energy ministry is considering to offer incentives to PV facility investors for behind-the-meter battery installations as a means of freeing up grid capacity, a solution that would enable power grid operator IPTO to resume offering new connection terms, currently on hold as a result of grid-capacity restraints.

According to the ministry’s plan, incentives would be offered in the form of tariffs secured by PV producers through auction.

Essentially, these auctions would only be open to PV projects possessing finalized grid connection term offers and equipped with batteries. The auctions would offer higher tariffs taking into account the increase in investment cost.

At present, RES projects under development and already possessing finalized grid-connection term offers represent a total capacity of 15 GW. If a portion of these projects are equipped with batteries behind the meter, then a significant amount of grid capacity could be saved to facilitate new green-energy investments.

 

 

 

Big investors warn against RES licensing priority revisions

Any changes to the existing order for RES project connection-term application appraisals would seriously set back the domestic RES market, sources linked to foreign institutional investors have noted, adding that even mere rumors on possible changes could unsettle and discourage investors.

Power grid operator IPTO’s next round of connection-term appraisals is planned to assess applications for Group B projects, grouping together prospective RES units intended for green-energy power purchase agreements between RES producers and industrial consumers.

Any revisions affecting the current appraisal procedure for Group B projects would impact RES investments in Greece, the sources noted.

Investors behind Group B projects have already reached preliminary PPA agreements with off-takers so that they can secure entry into this category. Priority changes concerning appraisals would impact these tentative PPAs and even put their eventual implementation in doubt.

Off-takers would also be greatly affected by any priority revisions to RES connection-term appraisals as they consider PPAs to be a key tool for subduing energy costs.

Greek industry would miss out on a great opportunity to keep production costs at competitive levels if processing priority changes were to be made, the sources noted.

Ministry rules out RES licensing-priority revisions

The energy ministry has ruled out any possibility of licensing priority revisions in a ministerial decision detailing power grid operator IPTO’s order of RES project connection-term application appraisals to specifically promote new solar energy projects equipped with batteries, energypress sources have informed.

Power grid operator IPTO is currently assessing connection-term applications submitted by RES producers with projects in top-tier Group A. The procedure may have already been completed.

Assessments of applications for Group B projects, grouping together prospective RES units intended for green-energy power purchase agreements between RES producers and industrial consumers, will follow.

The ministry revised the ministerial decision last January to increase the grid capacity that may be occupied by PPA-linked RES units as an upper limit for Group B projects was raised to 4,000 MW.

The issue has become complex as new PVs will need to start being equipped with batteries in order to minimize RES output cuts, carried out to prevent grid overloading.

However, the growing need for combined RES-and-storage facilities, to enable more efficient usage of grid capacity, changes financial factors taken into consideration by RES producers and industrial consumers for their green-energy PPAs. These factors are invalidated as the addition of batteries increases the development cost of projects.

 

IPTO favors subsea route, HVDC for Green Aegean

Power grid operator IPTO has settled on proposing a subsea route for the Green Aegean grid interconnection, a pivotal project envisaged to run from Greece to Germany’s south, which, according to the operator’s preferred route, would pass through the Adriatic Sea to Slovenia, followed by an overland route to Austria and Germany’s south.

The operator has abandoned an alternative overland western Balkans route for the project, through Montenegro, Croatia and Slovenia, over cost-related concerns. This route would entail upgrading pylons at outdated networks in these countries, making the venture financially unfeasible.

As a result, IPTO is now holding talks with TenneT, Germany’s biggest power grid operator, for its proposed underwater route, a more independent passage that would not require the usage of networks at any neighboring countries and be equipped with HVDC technology.

If IPTO’s envisaged route is finally adopted, then Prime Minister Kyriakos Mitsotakis’ proposal for the establishment of a European Grid Facility to fund upgrades of outdated Balkan networks and, subsequently, enable a Green Aegean crossing, will no longer apply. Mitsotakis presented his proposal during an EU summit last March.

Usage of HVDC technology for such projects is crucial as it enables transmission of large quantities of electricity over long distances via submarine cables; fast and accurate control of power flow, enhancing grid stability; and the interconnection of incompatible networks.

 

IPTO eyeing North Macedonian operator, a Balkan gateway

Greek power grid operator IPTO is eyeing the Balkan market to reinforce its standing, and, in this context, endeavoring to acquire a stake in MEPSO, North Macedonia’s operator.

If an agreement does go ahead, a prospect that requires the active involvement of the Greek government, then the neighboring country could serve as a gateway for IPTO’s entry into the wider western Balkan region, to take on network upgrade and interconnection projects, definitely needed.

IPTO has already submitted an offer for a stake in MEPSO, either through a strategic agreement or a share capital increase, North Macedonian sources informed.

IPTO executives have, for quite some time now, been engaged in talks with North Macedonian government officials, MEPSO and the country’s regulatory authority covering energy for a stake in the operator, the sources added.

Besides strengthening IPTO’s standing, such a move – which would complement Greek power utility PPC’s takeover agreement for Italian group ENEL’s Romanian subsidiary ENEL Romania – promises to also bolster Greece’s geopolitical role in the Balkan region.

MEPSO also stands to benefit from an agreement with IPTO as the North Macedonian operator could make the most of the Greek operator’s stronger credit rating and gain access to EU funds for network upgrades.

 

Further clarification requested on grid reserve service

Power grid operator IPTO is promoting the establishment of a formula that would enable more efficient and effective management of the system’s reserves, a direction agreed to by market officials, as highlighted by the results of relevant public consultation.

In particular, transitioning from manual reduction of reserves to an automatic system for limiting Balancing Power requirements represents a significant step in modernizing and optimizing power grid operations, market officials have told energypress.

Although this is a technical issue, it ends up financially impacting all technologies used to provide grid back-up options, the officials explained.

Reserves are used to respond to sudden changes in electricity demand or unexpected disruptions in supply, helping to maintain a consistent power supply to consumers.

Energy company Heron and ESAI, the Hellenic Association of Independent Power Producers, stressed, among other things, the need for further clarification on when the need for activation of the reserves service arises, while also calling for assurances that the service would be activated with necessary electricity quantities.

For its part, PPC reiterated a long-standing request for the establishment of a distinct reserve market prior to the use of the day-ahead market as a solution.