PPC developing into a southeast European force

Greek power utility PPC is establishing itself as a leading player in southeast Europe and the Balkans, an energy market offering the potential of roughly 40 million consumers, its top-ranked officials have told a Capital Markets Day event in London.

PPC’s leadership presented the energy group’s ambitious business plan, a nine billion-euro investment package, at the London event, staged yesterday, as a strategy through which the company will strive to capture a substantial share of the Balkan market.

The business plan includes development, between 2024 and 2026, of an 8.9-GW renewable energy portfolio, one of southeast Europe’s biggest, as well as an upgrading 381,000 kilometers of grid networks in Greece and Romania.

PPC’s business plan promises to place the company in a market quadruple the size of the Greek energy market.

PPC holds a 51 percent stake in Greek distribution network operator DEDDIE/HEDNO and controls the distribution networks of three regions in Romania, including Bucharest, by far the country’s biggest.

Besides greater renewable energy interests, PPC also plans to soon offer a wide range of energy solutions for consumers, including smart-home products, home advisory services, and insurance packages, all of which will be available both in Greece, through the company’s fully-owned Kotsovolos electrical and electronics retail chain, as well as in neighboring markets through PPC’s associates.

Since its leadership change in the summer of 2019, when CEO Giorgos Stassis and his administrative team took charge, PPC has progressed from the brink of financial collapse to stability and growth, and is now in a commanding position in the Balkans. Analysts have not ruled out an upward revision of targets as a result of PPC’s potential.

PPC overachieved on its EBITDA target for 2023, which ended at 1.5 billion euros, well above a 1.1 billion-euro goal set in a 2020 business plan. This has led a growing number of analysts to believe that a 2.3 billion-euro EBITDA target set for 2026 could be achieved sooner.

PPC’s planned RES growth, to 8.9 GW by 2026, or 68 percent of the energy group’s production capacity, promises to secure greatly improved lending terms for the company, once one of Europe’s worst polluters.

PPC plans to shut down all of its existing lignite-fired power plants, totaling 1.5 GW, by 2026, which will slash the company’s CO2 emissions from 23.1 million tons in 2019 to 5.9 million tons in 2026. The energy group plans to continue operating its forthcoming Ptolemaida V power station for back-up services. It will initially operate as a low-emitting lignite-fired power station before eventually converting to natural gas.

Wholesale power price drop recorded on Christmas Day

The combination of increased electricity imports, high RES production and reduced energy demand resulted in a reduction of wholesale electricity prices on Christmas Day, including a near-zero-level market clearing price.

On Christmas Day, the market-clearing price dropped to as low as 0.04 cents per MWh, while the day’s average price was 98.09 euros per MWh.

Electricity imports comprised 34.72 percent of the country’s energy mix on Christmas Day, followed by renewables (32.14%), natural gas-fueled production (21.66%), hydropower (8.27%), and lignite-fired generation (0.27%).

Market conditions were similar on Boxing Day, the average market-clearing price dropping 10.94 percent to 87.37 euros per MWh. The day’s market-clearing price low was 2 euros per MWh, while the maximum price reached 135.28 euros per MWh.

As was the case on Christmas Day, electricity imports also dominated the energy mix on Boxing Day with a 33.91 percent share, followed by renewables (32.66%), natural gas-fueled production (21.98%), hydropower (8.02%), and lignite-fired generation (0.26%).

As for today, the average market-clearing price is forecast to rise mildly, by 3.8 percent, to 90.69 euros per MWh, as a result of greater energy-mix contributions by natural gas and lignite and a drop in RES input, while the day’s lows and highs are expected to reach 35 euros per MWh and 137.39 euros per MWh, respectively.

Once again, electricity imports are planned to dominate the energy mix today with a 31.45 percent share, followed by natural gas-fueled production (28.55%), renewables (24.99%) hydropower (7.74%), and lignite-fired generation (3.97%).

It is also worth pointing out that, over the past seven-day period, the market-clearing price has remained below the 100 euro per MWh barrier for five days, exceeding this level on just two days.

 

European Commission offers mixed report on revised NECP

A European Commission appraisal of Greece’s revised National Energy and Climate Plan has confirmed the growing momentum of the country’s RES market, while highlighting a number of weaknesses that will need to be addressed before the plan is finalized.

The Brussels report recognizes the country’s potential to exceed EU targets and achieve a 44 percent share of renewables in total gross national energy consumption, compared to the corresponding European target of 39 percent.

The inclusion of targets for heating and cooling, as well as for the transport sector, were also deemed favorably.

As for the Greek NECP’s negatives concerning renewables, the European Commission made note of the absence of specific RES targets or a road map for all industrial sectors.

The Brussels report also noted a specific plan was also missing for the domain of Renewable Fuels of Non-Biological Origin (RFNBOs).

In addition, the European Commission acknowledges that the revised NECP includes a comprehensive list of measures, either adopted or to be adopted, to enhance the development of renewables, but underlines the absence of a clear timetable as well as the lack of a clear distinction between existing measures and new measures.

Brussels also made note of shortcomings in the plan’s decarbonization procedure, noting, on the one hand, lack of progress on international commitments included in the Paris Agreement and, on the other, the absence of specific timetable and dates concerning the withdrawal of lignite from the country’s energy mix.

 

Revised NECP sets more ambitious targets for 2030

Greece’s revised National Energy and Climate Plan, forwarded to the  European Commission and published on its website, sets new 2030 targets of 23.5 GW for all forms of renewables, 5.3 GW in energy storage, 7.7 GW in natural gas-fueled power stations, zero lignite presence, as well as a fleet of 460,000 electric vehicles.

In the RES sector, the country’s new NECP sets goals for 2030 of 9.5 GW in wind energy capacity, including 1.9 GW in offshore wind farms; 13.4 GW in solar power capacity; and 0.6 GW in other RES technologies.

Onshore wind farm capacity is planned to expected to increase by 12 GW between now and 2030, from 11.5 GW at present to 23.5 GW in 2030. The 2030 capacity goal for hydropower plants has been set at 3.8 GW.

The energy storage goal of 5.3 GW is expected to consist of 3.1 GW in batteries and 2.2 GW in pumped-storage hydropower stations.

Total annual electricity production is expected to reach 64.6 TWh in 2030, while electricity imports are forecast to be slashed to no more than 3 percent of Greece’s overall electricity generation, according to the revised NECP.

Renewables are planned to represent 44 percent of energy consumption by 2030, up from 35 percent in the previous NECP. Also renewables have been set an objective to contribute 80 percent of electricity production by 2030, significantly higher than the current NECP’s level of 61 percent, and close to 95 percent from 2035 onwards.

The revised NECP includes a zero-carbon emissions target in electricity generation from 2035 onwards.

Carbon emissions have already dropped significantly in 2023 as a result of the withdrawal of lignite-fired power stations.

PPC lignite package sales suggest hedging strategy rise

The results of power utility PPC’s sale of lignite packages between 2021 and 2023 – offered through forward contracts to third parties, an obligation that was recently completed, as the company announced – confirm a rising market trend in hedging strategies compared to the recent past.

An antitrust mechanism adopted in 2021 as part of a wider effort to further liberalize Greece’s energy market offered third parties access to PPC’s lignite-fired electricity production, until recently the lowest cost of generation to which the power utility had exclusive access.

The European Commission had begun expressing concerns about PPC’s monopoly in the Greek lignite market as far back as 2008.

PPC, according to the mechanism’s rules, was obliged to offer third parties quarterly electricity packages corresponding to 40 percent of its lignite-based electricity production in the equivalent quarter a year earlier.

Although the majority of PPC’s lignite packages were placed on the European energy exchange, with just a fraction made available on the Greek energy exchange, the transactions showed participants were keen to hedge.

The European energy exchange offers a far greater product range, compared to the more limited offer of products on the Greek exchange, making it more appealing for prospective buyers.

Enriching the Greek energy exchange with new products, services and activities, all of which would ensure more accurate energy price levels, is a top priority, Alexandros Papageorgiou, the exchange’s CEO, told the Athens Investment Forum earlier this week.

 

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”.

Lignite, not natural gas, now shaping wholesale electricity prices

Lignite’s presence in the daily energy mix is the decisive factor increasing wholesale electricity prices more than any other energy source, energy exchange data has shown.

Wholesale electricity prices were significantly higher in recent times, up until September 1, as a result of lignite’s entry into the energy mix on a daily basis for several hours per day.

On September 1, for example, despite representing just 0.8 percent of the energy mix, lignite had a disproportionately big effect on wholesale prices.

Prior to September 1, the period of lignite use, wholesale prices reached levels of between 350 and 384 euros per MWh during the 8-9pm peak hour and averaged approximately 130 to 160 euros per MWh per day.

The highest average price during this period of lignite usage was 164 euros per MWh, on August 24, when lignite represented 3.3 percent of the energy mix.

Wholesale electricity prices have been significantly lower since September 2, as lignite has not been a part of the energy mix.

Since September 2, daily peak prices have ranged from 135 to 183 euros per MWh, less than half the peak prices recorded in the lead up. Daily average prices have also been a lot lower since September 2, ranging between 82 and 106 euros per MWh.

Lignite has become the main factor shaping wholesale electricity prices since last spring, when natural gas prices fell to less than 50 euros per MWh and ceased being the price shaper.

 

Wholesale electricity price falls sharply over the weekend

The price of wholesale electricity plunged over the weekend, driven lower by an increase in RES output.

Yesterday, wholesale electricity fell to an average price of 53.30 euros per MWh, while, for a five-hour period between approximately 10 am and 3 pm, the price level reached zero, according to energy exchange data. The day’s maximum price level peaked at 120 euros per MWh.

Yesterday’s price level fell by 10.63 percent compared to Saturday’s 59.65 euros per MWh, which, in turn, was 25.30 percent below Friday’s level of 79.85 euros per MWh.

Today’s average wholesale electricity price is 95.18 euros per MWh, with the day’s peak at 153 euros per MWh and the minimum at 59 euros per MWh. Demand for the day is at 160 GWh.

The RES sector is programmed to be today’s biggest contributor with a 47.4 percent share of the energy mix, followed by gas-fueled production, at 22.7 percent, electricity imports at 12.4 percent, hydropower at 7.4 percent, and lignite-fired output, representing 6 percent.

 

Elevated reservoir levels offer positive outlook for summer

The country’s grid is entering the summer in sound shape regarding energy sufficiency, aided by the absence of issues at main power plants, an accumulation of lignite stockpiles at power plant yards and mines, the imminent addition of 1,500 MW in July, when two new power plants developed by the Mytilineos group and power utility PPC begin operating at full scale, and, above all, abundant water levels at hydropower facilities.

Reservoir water levels, usually the biggest concern for the power grid operator at this time of the year, are above last year’s level and currently offer 3,000 GWh compared to 2,940 GWh a year ago.

This rise is the result of increased rainfall in May and early June, as well as the operation of power utility PPC’s pumped-storage facilities at two dams, Sykia (Haliacmon river) and Thisavros (Nestos river).

Pumped-storage facilities operate as hydroelectric energy storage, based on a configuration of two water reservoirs at different elevations that can generate power as water moves down from one to the other, passing through a turbine. The system also requires power as it pumps water back into the upper reservoir.

The news is also favorable in terms of wholesale electricity prices, currently down to a two-year low. Wholesale electricity was priced at 83 euros per MWh in June, 2021, skyrocketed as high as 436 euros per MWh in August, 2022, and has now fallen, between June 1 and 6, to an average price of around 80 euros per MWh.

It still remains unclear if such a low level can be maintained throughout June. Cool early-summer weather conditions at present are helping subdue electricity demand and, in turn, keeping wholesale electricity prices down.

Energy sufficiency safe for summer, operators inform

The energy sector’s market operators are confident the country faces no energy insufficiency issues going into summer, their optimistic outlook shaped by satisfactory hydropower station reservoir levels, maintained at last year’s levels, ample lignite stockpiles, as well as a bigger-than-ever addition of new RES units to the grid this year.

Moreover, the Mytilineos group and power utility PPC plan to fully launch new power stations over the next couple of months, to result in an extra capacity of 1,500 MW.

At a meeting yesterday, market operators informed RAAEY, the Regulatory Authority for Waste, Energy and Water, of their positive outlook for summer, after having already updated the caretaker government’s energy minister Pantelis Kapros.

Hydropower station capacity currently stands at 2,800 MW, RES unit additions offer 1 GW, lignite stockpiles exceed 3 million tons, while the 1,500 MW to be offered by the imminent arrival of the Mytilineos group and PPC power stations will further reinforce the country’s energy sufficiency.

Market operators and RAAEY held yesterday’s meeting to discuss moves already made, outstanding action still needed to fully protect the grid going into summer, and to resolve any pending energy-related issues concerning the Greek islands, where demand multiplies due to tourism activity.

Caretaker energy minister confident all is in place

The caretaker government’s energy minister Pantelis Kapros has assumed his post feeling confident that all has already been put into place by previous officials to ensure energy sufficiency as summer approaches.

His predecessor, Kostas Skrekas, the country’s market operators and power utility PPC have taken all necessary initiatives to ensure energy sufficiency, even under high temperatures.

Kapros, professor of energy economics and operational research at the School of Electrical and Computer Engineering of the National Technical University of Athens (NTUA), has made this confidence clear during a first round of talks with market operators and regulators.

He will remain in charge of Greece’s energy portfolio until a new government is sworn in following a second round of voting, possibly late next month.

Reservoir water levels at PPC’s dams have been maintained at levels comparable to last year, lignite reserves are high, while the number of new RES units connected to the grid this year has reached unprecedented heights.

The country’s hydropower facilities currently offer a capacity of 2,800 to 2,900 MW, lignite stocks measure 3 million tons, and more than 1 GW in new RES unit connections have been made.

Furthermore, two new power stations, a Mytilineos group facility and PPC’s Ptolemaida V, promising an overall capacity of 1,500 MW, are now close to being launched.

IPTO confident of energy sufficiency this coming summer

Greek power grid operator IPTO, contrary to officials in other parts of Europe fearing drought periods will affect their electricity sufficiency, is confident current local conditions are favorable enough to get the country through the high-demand summer season.

Reservoir water levels at Greek power utility PPC’s hydropower facilities have just about been maintained at last year’s levels, more RES units have been connected to the grid this year than ever before, while the country’s lignite stocks are also currently high, at three million tons, following a concerted energy-crisis effort made since last year.

In addition, Greece’s grid is set to be reinforced, within the next couple of months, by the addition of two new power stations – a Mytilineos group unit and PPC’s Ptolemaida V – to offer an extra generation capacity of 1,500 MW.

Reservoir water levels at PPC’s hydropower plants currently offer 2,720 MW and are expected, over the next few days, to rise to 2,850 MW, levels recorded last year, primarily as a result of increased flow at northern Greece’s Haliacmon river.

IEA: Green transition progress made but long way to go

Greece has made remarkable progress in its effort to end the country’s reliance on fossil fuels but still has a long way to go to achieve goals set, according to an International Energy Agency report due to be published tomorrow.

The IEA report, focused on Greece and the government’s effort to end the country’s reliance on fossil fuels, includes a series of recommendations and practices that have been implemented in other countries.

It highlights Athens’ progress towards a green transition and complete decarbonization and also provides a set of energy-policy recommendations and practices to help Greece reach its targets faster.

Greece has set a target to reduce greenhouse gas emissions by 55 percent by 2030 and reach zero emissions by 2050.

The measures proposed in the forthcoming IEA report are intended to offer guidance making Greece’s transition towards an efficient and flexible zero-carbon energy system as smooth as possible.

The effort will need to include a further significant reduction in the country’s reliance on lignite and also set a binding target ending lignite-based energy production by 2028, at the latest, according to the IEA report.

Significant progress has been achieved in renewable energy installations, which covered 20 percent of the country’s energy demand in 2021 and rose even higher in 2022, but much remains to be done, the report will note.

According to a global analysis published by IEA report a month ago, energy-related emissions around the world rose by 0.9 percent last year, reaching 36.8 billion tons. Carbon dioxide emissions increased by 1.6 percent, while diesel emissions rose by 2.5 percent but remained at pre-pandemic levels.

Electricity prices and demand drop during Easter holiday period

Electricity prices and demand both fell last week, primarily driven lower by the Greek Easter holiday period.

Last week’s average clearing price dropped by 7.26 percent to 119.81 euros per MWh, the upper and lower clearing price levels reaching 190 euros per MWh and 9.72 euros per MWh, respectively.

Last week’s highest clearing price was recorded on April 13 at 131.90 euros per MWh.

Besides the drop in electricity demand during the Greek Easter holiday period, higher RES contributions, which rose by 40 percent last week, to 353 GWh, also helped lower electricity prices.

The price drop would have been even greater had power grid operator IPTO not reduced electricity imports during midday hours, an initiative taken to protect the grid from overload concerns.

Domestic electricity demand last week fell to less than 0.8 TWh, reaching 771 GWh. The week’s overall electricity demand at the energy exchange totaled 848 GWh.

RES units generated a daily average of 50 GWh last week to represent 48 percent of the energy mix.

Hydropower facilities covered 2 percent of electricity demand last week, generating 16 GWh, a 16 percent drop compared to a week earlier.

Natural gas-fueled power stations produced 245 GWh last week, covering 33 percent of demand, while lignite-fired generation hit a 51-week low at 44 GWh to cover 6 percent of demand.

 

Brussels evaluating PPC lignite antitrust mechanism

The European Commission is evaluating the performance to date of an antitrust mechanism that was introduced last year to promote competition in Greece’s electricity market by ending power utility PPC’s lignite-sector monopoly through  lignite-generated electricity packages offered to rivals.

Market players have largely remained disinterested in lignite-based electricity packages offered by PPC.

Although Brussels’ inspection of the mechanism is focused on performance and not intended to offer criticism, the procedure will also pinpoint gaps and obstacles and result in revisions to the original plan, sources informed.

It remains unclear if this evaluation process was prompted by the energy crisis’ extraordinary conditions or the mechanism’s failure to produce desired results.

Numerous functional difficulties are believed to have already been identified. Offering these lignite-generated electricity packages on the European Energy Exchange, primarily, as well as the Greek Energy Exchange, despite the fact that these exchanges do not involve the participation of all Greek energy market players, has already been deemed a fundamental mistake as the packages are  intended for Greek electricity suppliers and producers but likelier to be purchased by buyers abroad.

According to the mechanism’s rules, PPC, this year, is required to offer three-month lignite-fired electricity packages amounting to 40 percent of the power utility’s lignite production levels in the corresponding quarters last year.

Wholesale power price weekly average drops to 84-week low

The country’s wholesale electricity price weekly average dropped considerably last week to a level just over the psychological barrier of 100 euros per MWh, at 106.49 euros per MWh, an 84-week low, reflecting a downward trajectory in electricity demand.

Last week’s market clearing price fell by 17.13 percent compared to a week earlier, peaking at 186.55 euros per MWh and registering a low of 7.71 euros per MWh. Last week’s highest market clearing price average, for a day, was registered on Sunday, April 2, reaching 127.50 euros per MWh.

Electricity prices in Europe last week ranged between 54 and 133 euros per MWh, while prices yesterday swung from 62 to 142 euros per MWh.

Warmer weather last week led to a reduction in electricity demand, which, along with elevated RES output, pushed prices lower.

In Greece, weekly electricity demand fell last week but remained slightly above a level of 0.8 TWh, at 813 GWh. The energy exchange recorded total electricity demand for the week at 899 GWh, a figure taking into account export outflow of 86 GWh.

RES units averaged a daily output of 58 GWh last week for a higher share of the energy mix, which reached a weekly average of 52 percent. RES units produced a total of 405 GWh last week, a 55 percent increase compared to a week earlier.

Natural gas-fueled electricity’s share of the energy mix last week was 20 percent, net imports followed at 15 percent, lignite-fired generation represented 11 percent and major-scale hydropower units represented 2 percent.

Low-voltage electricity demand, including households, represented 54 percent of overall demand in Greece last week. Medium-voltage demand represented 19 percent of demand and high-voltage demand represented 18 percent. Demand concerning the Cretan grid represented 6 percent and grid losses reached 3 percent.

Lignite-fired power generation reestablishing itself as costliest

The cost of lignite-fired electricity generation has been estimated at 219.34 euros per MWh for April by RAE, the Regulatory Authority for Energy, a level that makes it the costliest form of power production for a second month in a row, well over the generation cost level calculated by the authority for combined-cycle, natural gas-fueled power stations, estimated at 153.04 euros per MWh for the month, a difference of 66.3 euros per MWh.

The wholesale electricity market appears set, this month, to further distance itself from the adversity of energy crisis conditions that have made gas-fueled power generation the costliest form in Greece and other parts of Europe as a result of soaring natural gas prices in international markets.

Last month, lignite-fired power production once again found itself at the top of the list as the costliest form of electricity generation, overtaking gas-fueled generation, for the first time since the beginning of the energy crisis.

The cost of lignite-fired power production exceeded that of gas-fueled production by 48.36 euros per MWh last month, above an initial estimate of 30.54 euros per MWh that grew as a result of an energy ministry revision replacing a fixed 10 euro per MWh surcharge on natural gas used for electricity generation with a 5 percent fee of the TTF level.

Two-thirds of PPC’s depleted lignite mines to the State

Roughly two-thirds of power utility PPC’s depleted lignite mines are in the process of being transferred to the Greek State. The power utility has scheduled an extraordinary shareholders’ meeting on March 30 for approval of the transfer of ownership.

More specifically, 16,400 of 24,700 hectares of depleted lignite mine property is planned to be transferred to the Greek State. PPC will maintain control of the remainder, primarily for development of solar farms.

As noted by PPC, the completion of this transfer of property is subject, by law, to approvals by the General Assembly of PPC’s shareholders, the signing of a relevant notarial deed, as well as the receipt of all necessary approvals from competent authorities.

Power demand continues fall in January, RES dominate output

Electricity demand plunged by 13.24 percent in January, compared to the same month a year earlier, registering a drop for a seventh successive month, a monthly report published by power grid operator IPTO has shown.

Households, businesses and industrial producers have cut back on power usage in an effort to contain their energy costs.

January’s contraction in electricity demand ranks as the second-biggest recorded during the seven successive months of decline and is one of the biggest reductions ever recorded in Greece.

Households registered the biggest cut in electricity usage in January, down 15 percent compared to January, 2022, while heavy industry also cut back on consumption, by 7.8 percent, the January figures showed.

Overall electricity demand fell to 4,235 GWh in January from 4,881 GWh in January, 2022, the IPTO data showed.

Subsequently, the drop in electricity demand prompted a generation reduction of 25.75 percent in January, compared to the same month a year earlier, according to the IPTO data.

Renewables and hydropower dominated the country’s energy mix in January, capturing a 53.6 percent share. Natural gas and lignite-generated electricity captured a 30.5 percent share.

 

Gas prices tumble, lignite close to regaining price-setting role

Wholesale natural gas prices have fallen by 80 percent since last August’s peak of approximately 350 euros per MWh, to levels of nearly 50 euros per MWh at the TTF index in recent days, a development that has brought the cost of natural gas-fueled power stations just above that of lignite-fired power generation.

Any further drop in the price of natural gas would reestablish lignite-based power generation as the technology determining electricity prices, based on a formula adopted by the EU and the Greek energy exchange.

Increased lignite-fired electricity generation in Europe has, in recent times, pushed up carbon emission right prices (ETS) to nearly 95 euros per ton following a descent to levels of about 75 euros per ton.

Last Friday, lignite-based generation captured a 22 percent share of Greece’s energy mix, much higher than levels recorded in recent times. Over the past 30 days, lignite’s share of the energy mix averaged 15.6 percent, according to the Greek energy exchange.

Ptolemaida V power station’s full-scale launch just weeks away

Power utility PPC is just weeks away from commercially launching its new Ptolemaida V power station, a 660-MW facility in the country’s north now undergoing a final stage of trial runs.

Prime Minister Kyriakos Mitsotakis, scheduled to visit the area next week, is expected to highlight the significance of this project, including its role in the country’s anticipated post-lignite era.

Ptolemaida V, to initially operate as a low-emitting lignite-fired power station before eventually converting to natural gas, promises to greatly contribute to the grid’s energy sufficiency.

According to a latest estimate provided by power grid operator IPTO, in an energy sufficiency study, the facility may operate as a lignite-fired power station until the end of 2028 before being withdrawn for a two-year period and relaunched, at the beginning of 2031, as a 1,000-MW gas-fueled power station.

However, the power station’s switch to natural gas at a sooner date cannot be ruled out if gas prices de-escalate in the long-term and remain stable at lower price levels.

RES generation biggest energy-mix contributor for first time ever in 2022

Renewable energy was ranked the country’s biggest electricity producer for the first time ever in 2022, capturing a 41.6 percent share of the energy mix for output totaling 19.7 TWh, data provided by power grid operator IPTO has shown.

Natural gas-fueled generation, previously the country’s biggest producer, was ranked second in 2022 with a 38 percent share of Greece’s energy mix and output of 17.9 TWh. It was followed by lignite, once the country’s leading source of electricity production until it was overtaken by natural gas, with an 11.8 percent share and 5.6 TWh. Hydropower ranked fourth in terms of output in 2022, capturing an 8.5 percent share with output totaling 4 TWh.

Combining the energy-mix shares captured by the RES sector and hydropower adds up to 50.1 percent, meaning these two energy source categories edged past fossil fuels as Greece’s main producer of electricity.

Last year, natural gas-fueled generation fell by just over 4 percent compared to 2021, dropping from a leading energy-mix share of 42.8 percent.

All EU member states have set objectives, on a voluntary basis, to reduce natural gas consumption by 15 percent this winter.

In 2021, the RES sector was ranked second in terms of electricity generation in Greece with a 35.3 percent share of the energy mix followed by lignite, whose share hardly changed. Compared to 2022, hydropower output was slightly higher in 2021, when it had captured a share of approximately 11 percent.

 

PPC retail electricity market share at 63.3% in December

Power utility PPC’s captured a retail electricity market share of 63.29 percent in December, followed by the Mytilineos group’s Protergia, at 7.6 percent, Heron, at 7.03 percent, and Elpedison, at 6.09 percent, a latest report published by the Hellenic Energy Exchange has shown.

Day-ahead market prices in December rose 22 percent, averaging 276 euros per MWh compared to 227 euros per MWh in November, while electricity demand increased to 4,488 GWh from 4,109 GWh, the Energy Exchange data showed.

As for December’s energy mix, natural gas-fueled electricity captured the greatest share, 37 percent, followed by renewables, at 24 percent, electricity imports, at 19 percent, lignite-fired generation, at 15 percent, and hydropower, at 3 percent.

December gas energy-mix share up to 43%, RES input falls

Natural gas usage for electricity generation increased in December to represent 43 percent of the energy mix, up from 37 percent in November.

At 43 percent, natural gas-fueled electricity captured the biggest share of the energy mix in December, followed by renewable energy sources – wind, solar and biomass – at 26 percent, lignite, at 17 percent, net electricity imports, at 10 percent, and major-scale hydropower plants, at 4 percent.

Combing the RES and hydropower contributions, the renewable energy sector’s share of the energy mix in December essentially reached 30 percent.

Natural gas-fueled generation and RES generation reached 1,645,055 MWh and 1,012,485 MWh, respectively, in December, while lignite-fired output for the month totaled 656,157 MWh.

In 2022, overall, natural gas’ share of the energy mix increased by one percent, while the RES sector’s share shrunk by 8 percent.

Energy demand increased in December, reaching 4,013,598 MWh, following four successive months of decline.

PPC aims to launch pivotal Ptolemaida V unit in March

Power utility PPC is aiming to launch its new and pivotal Ptolemaida V power station, a 660-MW facility undergoing a final stage of trial runs, by late March.

Trial runs at Ptolemaida V were interrupted by technical issues that arose in December, but the facility is expected to resume operating around January 22 for continual tests over a one-and-a-half-month period before its full-scale commercial launch.

This facility, to initially operate as a low-emitting lignite-fired power station before eventually converting to natural gas, promises to greatly contribute to the grid’s energy sufficiency.

If this winter’s weather conditions deteriorate and prompt a spike in energy demand, the energy sufficiency effort will greatly depend on PPC’s lignite reserves amassed at its lignite-fired power stations.

PPC has accumulated roughly three million tons of lignite at its lignite-fired power stations, close to its target of 3.5 million tons.

The power utility’s current lignite quantity would suffice to keep its lignite-fired power stations, seven in total, running continuously over one month, PPC officials noted.

PPC is aiming to double its overall lignite-fired electricity production this year, from 5 TWh to 10 TWh.

 

Suppliers, traders reject PPC lignite power packages for ’23

Energy retailers and traders have shunned lignite-fired electricity packages offered by power utility PPC through the energy exchange for the first, second and third quarters of 2023, as part of an antitrust agreement between Greece and the European Commission, energypress sources have informed.

Commenting on the lack of interest in these packages, market analysts noted they were not surprised given the high risk involved and the financial pressure felt by energy retailers as a result of the energy crisis.

The agreement, designed to end PPC’s monopoly in the lignite sector, required the power utility to offer, by October 31, lignite-fired electricity packages for Q1, Q2 and Q3 in 2023, their quantities representing 40 percent of lignite electricity production in the corresponding quarters this year.

According to the agreement, shaped by a legislative revision brought forward by the energy ministry, PPC must also offer lignite-fired electricity packages for Q4 next year by January 31, 2023.

Greece has submitted a request to the European Commission to have the antitrust agreement abolished. If not scrapped, the measure appears set for major revisions.

Achlada mine set to reopen, ministry revokes older decision

Energy minister Kostas Skrekas has revoked an older decision terminating the Greek State’s lease contract with Achlada Mining S.A. for the exploitation of a lignite mine in northern Greece’s Achlada area.

This decision will enable the mine’s reopening and ensure the nearby Meliti lignite-fired power station operates at full capacity to help the country secure energy sufficiency amidst the energy crisis.

Achlada Mining S.A. had had its Achlada mine license terminated after failing to meet lease contract payments.

In the lead-up to the minister’s decision to revoke the termination of Achlada Mining S.A.’s lease contract with the State, the company covered just over 10 percent of its 5.69 million-euro debt owed to the Greek State, making a payment of 659,867 euros in September.

The energy ministry has given Achlada Mining S.A. a 60-day period to deliver the rest of the amount, approximately 5 million euros. This debt concerns older lease amounts from 2017.

European effort for energy cost solutions well underway

European discussion for electricity market reforms that could lead to permanent solutions for lower-cost energy by detaching the cost of electricity from natural gas is well underway.

European Commission authorities, institutions, major enterprises and other electricity market players are currently putting forward proposals until December, when Brussels is expected to issue its own proposal for consultation, as has just been noted by Mechthild Wörsdörfer, deputy director general for the European Commission’s Directorate-General for Energy.

Discussion for longer-term reforms is planned to continue in February and March. Reforms will need to be approved by the European Parliament, as well as by the Energy Council of Ministers, in order to become binding.

The overall approach is based on a proposal forwarded by Pantelis Kapros, Professor of Energy Economics at the National Technical University of Athens, supporting the need for remuneration of renewable energy, as well as electricity production generated by other low-emission technologies, such as nuclear, to be based on actual cost through long-term agreements rather than through the day-ahead market, whose levels are determined by wholesale market prices.

According to Kapros’ proposal, wholesale market prices should be used to determine remuneration levels for fossil fuel-based energy production technologies (coal, lignite, natural gas) as well as hydropower facilities with water reserves and energy storage units.

RES output doubled, wholesale electricity price plunges 44%

Doubled RES production in recent days has been a key factor in a 44 percent decrease in the price of wholesale electricity over the past three days, down to levels last registered roughly a year ago.

Day-ahead market prices yesterday dropped to 166.12 euros per MWh, from 298.97 euros per MWh last Thursday.

Besides the doubled RES production, lower electricity demand over the weekend was cited as another factor in this price drop, according to the Hellenic Energy Exchange and power grid operator IPTO. Electricity demand dropped by roughly 20 percent over the weekend, compared to the preceding weekdays, IPTO figures showed.

On October 13, RES and hydropower facilities represented 34.4 percent of the energy mix, their participation rising to 68 percent yesterday.

As a result, natural gas and lignite-fired power stations played a lesser role over the past few days. Natural gas and lignite-fired power stations yesterday represented 8.55 percent and 4.74 percent of the energy mix, respectively, from 31.42 percent and 8.83 percent last Thursday.

Yesterday, between 12pm and 3pm, RES units covered 83 percent of the country’s energy mix.

 

PPC’s Ptolemaida V nearing full-scale test, lignite output up

The mechanical equipment of power utility PPC’s new, state-of-the-art Ptolemaida V power station is currently undergoing preliminary testing ahead of a full-scale trial run, expected towards the end of this month or early in November, before the facility is commercially launched and linked to the energy exchange in early January, PPC officials have told energypress.

The facility, whose testing began just a few days ago, will initially operate as a lignite-fired power station before eventually converting to natural gas.

A cross-party political decision to construct Ptolemaida V was reached nine years ago.

The launch of Ptolemaida V, a 610-MW capacity power station, promises to greatly contribute to the country’s energy security as its operation will enable significant amounts of natural gas to be saved for winter.

The new power station is a low-emitting facility with a high performance level able to rival natural gas-fueled power stations (CCGTs).

Greece’s lignite-fired electricity generation is being increased following a government decision reached in early July to boost lignite’s percentage of the energy mix. The objective is to double lignite-based output over the next 12 months, from 5 TWh to 10 TWh.

The country’s lignite-fired power production has been on the rise since early last summer, more-than-doubling in June, compared to the equivalent month in 2021, rising 61 percent, year-on-year, in July, and increasing 27 percent in August.