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.

 

Many energy-sector provisions in urban planning multi-bill

The energy ministry has included a host of provisions that essentially constitute a mini energy bill into its urban planning multi-bill, which includes over 120 articles and is expected to be submitted to Parliament by the end of this week.

The series of energy-sector provisions, more than 20 in total according to energypress sources, include legislative revisions concerning floating PV systems; an SPV for offshore wind farm preliminary research; Apollo, an energy-cost offsetting program aiming to cover a significant proportion of farmers’ energy needs; and CHP units planned by power utility PPC.

The addition of extra energy-sector provisions ahead of the multi-bill’s delivery to Parliament has not been ruled out. They are expected to be divided into six categories.

The revisions will include terms enabling the installation of RES and CHP units – with or without integrated electricity storage batteries for self-consumption – on non-interconnected islands.

Also included are terms for the development of ten offshore solar farm pilot projects with capacities of between 0.5 MW and 1 MW for a total capacity of 10 MW. These will be exempted from competitive procedures for their operating contracts.

Based on the revisions, EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, will be able to establish subsidiaries and an SPV for commissioning wind and seabed studies at marine areas to be allocated for a first wave of offshore wind farms.

Greece, according to the National Energy and Climate Plan, aims to have begun developing 1.9 GW in offshore wind farms by 2030.

 

 

Extra subsidized standalone batteries at 500-700 MW

Battery-based RES facilities (both standalone units and behind-the-meter projects) will total 3,100 MW, greatly contributing to the country’s energy-storage targets, according to a draft of the revised National Energy and Climate Plan.

The energy-storage support package will result in a portfolio of standalone batteries with an overall capacity of as much as 1,500 to 1,700 MW, deputy energy minister Alexandra Sdoukou told a recent event staged by SEF, the Hellenic Association of Photovoltaic Companies (HELAPCO).

These levels represent an additional capacity of between 500 and 700 MW in standalone batteries eligible for subsidy support as a result of a reduction in investment support to be offered, it has been estimated.

Energy-storage projects representing roughly 700 MW have qualified for subsidy support through two auctions.

As for the portfolio’s allocation, the energy ministry is considering dividing it into two-hour and four-hour batteries, in place of an initial plan that had envisaged 700 MW of two-hour batteries and 300 MW of four-hour batteries.

Community Agrivoltaics: A new application of social and climate justice

The recent demonstrations of farmers, from Poland and France to Greece, bring back to the public debate the urgent need to (re)develop our agricultural policy. From the European Common Agricultural Policy (CAP), and the imbalanced farmer-agro-industry power relations in supply chains, the issue is multifaceted. Let us focus on one aspect of it: access to cheap – and clean – energy. The dependence of agricultural production on fossil fuels (see motorization, equipment, irrigation) puts a significant burden on the budget of the farmers themselves, and also leads to revaluations (see the ‘fossilflation’ phenomenon) in the supply chain – with consumers as the ultimate ‘victims’.

Subsidies for solar projects by farmers, a policy with years of implementation in Greece and Europe, can provide an additional income stream, while at the same time significantly alleviating a farmer’s operating costs. Supporting farmers to engage in RES projects (e.g., photovoltaics or biomass) is therefore a clear win-win solution for society and the climate. But could we move the equation one step further?

Agrivoltaics: combined and more efficient use of space

Meeting national (and EU) climate targets will require massive investment in new renewable energy systems. In particular, the Revised Renewable Energy Directive provides for a significant increase in the share of renewables in the energy system, while establishing “Renewable Energy Acceleration Areas” (Article 15c). At the same time, the Nature Restoration Regulation provides for the protection and restoration of 20% of the land and seas of each Member State. As a result, the next decade will be defined by increasingly intense conflicts and disputes over the use of an otherwise finite resource: land. Research by the European Commission’s Joint Research Center has shown that if we covered 1% of Europe’s agricultural land with agrivoltaics, we could produce 1TW of energy – thus exceeding the EU targets for solar energy by 2030, without compromising agricultural production.

Widely used in countries such as France, Spain and Germany, the term “agrivoltaics” describes the combined production of energy and food on a specific plot of land. The benefits are numerous: some crops (e.g., tomatoes and potatoes) perform better in lower temperature and shade conditions, which is what the installation of elevated photovoltaic systems can provide. Transpiration from the crops meanwhile helps to reduce the temperature of the photovoltaics, thus increasing their efficiency. The panels can be moved dynamically, for example to allow rain to pass through to the ground thus watering the crops, or horizontally to reduce hail damage or to regulate the soil temperature depending on the weather. The combined use of land also benefits biodiversity.

Some practical applications in Greece

Two interesting initiatives come to combine technological innovation with social innovation and highlight through practical applications a new paradigm of land use, aiming at strengthening the agri-food sector and empowering local rural communities.

In Ioannina, the first urban community agrι-photovoltaic project in Greece is already being planned and a replication will follow in Skopje, North Macedonia. It is an urban vegetable garden that will be combined with the production of clean energy from special photovoltaic panels. The pilot will be coordinated by the local energy community CommonEn and the design will follow participatory procedures with the involvement of citizens and local stakeholders. The project is primarily funded by the German Federal Foundation for Environment (DBU) and co-funded by the Onassis Foundation. In parallel, the project is supported by the Municipality of Ioannina and the Solar Hub project.

The Solar Hub project is a Greek-Turkish Excellence Hub that aims to promote solar energy technologies, with a focus on agrivoltaic and solar thermal systems and their applications in the agri-food sector. The Greek ecosystem, coordinated by the Centre for Research & Technology Hellas (CERTH), promotes networking, solution development, training, and knowledge transfer activities.

A Holistic Approach

At the state level, the ongoing revision of the National Energy and Climate Plans (NECPs) across Europe, as well as the upcoming law on agri-photovoltaics (in Greece), should foresee support measures for such projects developed specifically by energy communities and other collective schemes. Promoting social and technological innovation can provide incentives, especially for young people, to return (or remain) in rural areas, thus also contributing to reversing population desertification.

CommonEn’s project in Ioannina will be small in size but large in symbolic value. It reflects the view that environmental solutions must include elements of social and economic justice – only then will they be socially accepted. Solutions and policies in the context of a holistic planning for rural development should be co-designed by farmers and local communities in the countryside themselves, and should be co-owned by them – as can be done through energy communities.

Christos Vrettos, Electra Energy, European Federation of Citizen Energy Cooperatives (REScoop.eu)

Dimitris Kitsikopoulos, Electra Energy

 

 

 

 

 

 

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.

 

Most RES producers holding contracts seen turning to PPAs

More than 90 percent of RES producers meeting requirements for two-year suspensions of their project operating contracts with RES market operator DAPEEP, in order to engage in direct market participation or establish PPAs, will make the most of this option, the operator has estimated.

DAPEEP’s estimate represents the basis of a Budgetary Estimate of Revenue and Expenditure Report concerning new projects linked to National Energy and Climate Plan objectives. The RES market operator has forwarded this report to all relevant agencies.

DAPEEP expects roughly 2,100 MW in new RES projects with tariffs to penetrate the RES market in 2024.

The measure offering RES producers two-year suspensions of their project operating contracts with DAPEEP is particularly appealing to producers as this two-year period will not be deducted from existing 20-year tariff agreements with the operator.

It also promises RES producers sale of their output at levels probably higher than guaranteed-income levels offered by their existing project operating contracts with DAPEEP.

A legislative revision permitting RES producers to suspend their operating contracts by two years is scheduled to come into effect February 1.

Investors behind large RES projects of over 1 MW that either received operating permits or were electrified after March 28, 2023, will be eligible, as will small RES projects under 1 MW that were electrified following this date.

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.

EDEYEP right to form SPV a boost for offshore wind farms

The energy ministry is close to delivering a draft bill that promises to accelerate the development of Greece’s nascent offshore wind farms sector by enabling EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, to establish subsidiaries and, as a result, a special purpose vehicle (SPV) for commissioning wind and deep-sea studies at marine areas to host a first wave of offshore wind farms.

The ministry is determined to get things rolling as the country’s National Energy and Climate Plan for 2030 includes a goal noting that 1.9 GW in offshore wind farms should be under development by the end of the decade.

All required studies will need to be carried out as swiftly as possible to ensure that development of the first wave of offshore wind farms has begun by 2030. State-owned EDEYEP’s ability to establish subsidiaries will help the overall effort as bureaucracy linked to public-sector contracts will be avoided.

A total of six marine areas have been selected to host the first wave of 1.9-GW in offshore wind farms. These are located off Crete, Gyaros, Rhodes and Evia. The energy ministry plans to begin with a group of pilot projects representing approximately 400 MW.

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.

 

NECP returned for corrections ahead of Brussels approval

A draft of Greece’s revised National Energy and Climate Plan, forwarded to the European Commission for appraisal ahead of its approval has been returned to relevant ministries for further clarity.

Brussels officials have requested more detail concerning the plan’s measurability, schedules, intermediate targets, and tools to be applied for achieving goals.

Greek energy ministry officials discussed the NECP and Brussels’ response at a meeting in Athens yesterday, concluding that plenty of work is still needed before the revised plan can be finalized and endorsed by the European Commission.

Though Greek government officials still have time to make corrections until a June 30 deadline set by Brussels for a finalized plan, the amount of work still needed is considerable and may even require the appointment of external consultants to ensure the task is completed on time.

Among its observations, the European Commission noted that the Greek plan does not take into account climate-related risks, and, as a result, has requested more specific targets from a number of ministries, including those covering shipping, transportation, and rural development.

 

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.

 

 

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.

 

HAEE’s roundup of COP28 climate conference in Dubai

 

HAEE proudly and actively participated in #COP28 by powering up the future at Greece’s first-ever Pavilion, organizing the Side Event “Outlook of the Greek Energy Sector towards 2030”. We would like to thank our esteemed panel speakers, visionary leaders and guests who graced us with their presence or watched online and shared their insights on Greece’s accelerated transition away from fossil fuels, analyzed the latest reoriented policies, practices and investment priorities to deliver outcomes, protecting people, livelihoods, and ecosystems.

Let us share a roundup of what we witnessed on the ground at COP28:

On 13/12/2023, at the United Nations Climate Change Conference COP28 in Dubai, after intense overnight negotiations on whether the outcome would include a call to “phase down” or “phase out” fossil fuels, almost 200 nations reached an Agreement, to transition away from fossil fuels, while the negotiators set their commitments to triple renewables capacity and double energy efficiency by 2030, so as to achieve net zero by 2050.

COP28 adopted a decision on the outcome of the first global stocktake, which is a two-year process to assess progress on mitigation, adaptation and climate finance, and design the way forward. The parties recognised that, by 2030, global greenhouse gas (GHG) emissions have to be reduced by 43% below 1990 levels to restrict global warming to 1.5 °C, and committed to accelerating action in the current decade.

The Draft decision of COP28 – CMA.5 “Outcome of the first global stocktake” is now available here

An Agreement on the operationalisation of the Loss and Damage Fund was also decided. The fund will initially be hosted by the World Bank and It has received over US$700 million in pledges, with Germany and the United Arab Emirates offering US$100 million each .

The involved parties further adopted a framework adaptation, accompanied with 2030 targets for all parties to: conduct impact, vulnerability and risk assessments; adopt and implement adaptation plans and policy instruments; and set up monitoring, evaluation and learning systems for their national adaptation efforts.

After two weeks of intense discussions, the Deal that was reached in Dubai sends a strong statement to investors and decision-makers alike about the global community’s intention to move away from fossil fuels, something scientists say is the best chance to prevent a global warming disaster.

Let’s keep pushing boundaries and working towards a sustainable and brighter future!

Key uptakes of HAEE’s Side Event, at COP28

Let’s now deep dive into a micro-level and the insightful discussion we enjoyed on the 5th of December under the topic “Outlook of the Greek Energy Sector towards 2030” at HAEE’s Side Event that took place in the Greek Pavilion. The dynamic dialogue between esteemed speakers and visionary leaders was focused on the global, European, and Greek energy landscapes, the energy industry innovation, the impacts of Energy Transition and the ways of communicating the energy transition in a new climate narrative.

As Ms. Ditte Juul Jørgensen, Director General for Energy, European Commission, mentioned, the international community has prioritized the exponential deployment of renewables and energy efficiency improvements by 2030 to meet the collective goal of the Paris Agreement to keep warming well below 2°C and phase down or even phase out fossil fuels by mid-century. To that end, and after the initiation of the EU, 123 countries have signed the Global Renewables and Energy Efficiency Pledge, underlying the close link between the climate and energy objectives. As we step into the future, Greece has already re-introduced its goals and position to achieve or event to overcome EU’s climate obligations and emission target reductions, aiming to decarbonize its economy and transform itself into an energy hub in Southeastern Europe and the Western Balkans.

In the wake of the Russo-Ukrainian war and as the EU is decoupling from Russia’s energy supply, Greece is playing a critical role in securing Europe’s energy resilience through the Southern Gas Corridor, the TAP pipeline and other infrastructure projects such as the expansion of the Revithousa Terminal, the completion of the IGB pipeline and the commissioning of Alexandroupolis FSRU.

On top of that, as H.E. Geoffrey Pyatt, Assistant Secretary, Bureau of Energy Resources, U.S. Department of State, highlighted the overhaul of Alexandroupolis FSRU into a Western Balkans’, regional, emblematic Project. Greece’s connectivity moves in two strategic directions; one is to the Western Balkans, by helping the EU-aspiring countries to reduce their dependence on Russian energy and to the Mediterranean through the US, Greece, Cyprus, Israel and Egypt cooperation, to build a regional connection on gas, electricity through the interconnectors or even green hydrogen, aiming to build a future energy system which is not vulnerable to one supplier, which is economically competitive but also meet the climate targets.

Ms. Alexandra Sdoukou, Deputy Minister of Environment and Energy, Hellenic Republic confirmed that over the last years, Greece has transitioned into an exporting country of gas—mainly from the US— new interconnections are in progress, and RES have the potential to dominate the future energy mix, increasing the attractiveness of the Greek energy sector to potential investors, shaping sustainable business strategies and fostering a resilient future for the country.

Mr. Bertrand Piccard, Initiator and Chairman, Solarimpulse Foundation pointed out that the momentum to change the narrative of the economies’ and energy system’s decarbonization is now. There is a climate emergency, but also an economic emergency to switch to renewable energy and implement the necessary policy measures to save natural resources. The goal of authorities, academics, policy-makers and the relevant stakeholders has not to be the decarbonization with the sacrifice of the future generation, but to modernize the world, by making it efficient and profitable for the current generation. In that case, decarbonization will be the result of modernization.

Mr. Roman Kramarchuk, Head of Future Energy Analytics, S&P Global – Commodity Insights, commented that S&P energy markets’ “Green Rule Scenario” involves cooperation, cross-country support, and sharing of technologies as prerequisites, to achieve three times renewable. Market mechanisms such as PPA or corporate voluntary carbon markets are driving the change since corporate buyers are now willing to be able to demonstrate that they can operate sustainably and become policy-makers of their own right, supported by governments. This is a paradigm of multiple actors initiating for a common goal, the goal of achieving net-zero.

The political will exists, the technology exists, and the market mechanisms are ready to be implemented. Our focus should be on informing, motivating, engaging people and communities toward the energy transition.

HAEE is looking forward to next year’s event, COP29 which will take place in Baku, Azerbaijan, in November 2024 with the hope of a much more optimistic climate outlook!

Presenting our Chart of the Month Vol. 20, in the Side Event organized by the HAEE team and the Hellenic Ministry of Environment and Energy at the Greek Pavillion in COP28, is the epitome of ending the year on a high note! This special edition gives a more detailed outlook of the Greek energy market towards 2030 and 2050 through various topics encircling energy.

Based on the revised Greek NECP, key milestones and targets for the energy transition of the Greek energy market are presented across specific subtopics such as the future RES and energy storage developments, the Natural Gas landscape in Greece, the future outlook of the interconnections, as well as opportunities in innovative technologies like CCUS and Hydrogen production.

Special focus is placed on important topics that form the pillars of Greece’s strategy for the energy transition. One such topic is the development of offshore wind parks in the Aegean and Ionian Seas. The first such pilot project was recently announced in Alexandroupolis with capacity of 600 MW. Additionally, in Alexandroupolis, another interesting project, the FSRU terminal, is expected to become operational in 2024.

Finally, we explore the investment landscape of Greece which is thriving with a recently upgraded investment grade and forecasts of surpassing EU growth rates. Significant funding inflows via RRF and REPowerEU promise a bright future for the sector. Favorable conditions for both traditional and emerging renewable energy technologies, alongside pivotal infrastructure developments, position Greece as a key player in Europe‘s energy independence, with the overall ambition of transforming Greece into an energy hub for Europe.

National hydrogen strategy within first half of 2024

The energy ministry is set to begin shaping a national strategy on hydrogen whose fundamentals it plans to announce in the first half of 2024, energypress sources have informed.

The hydrogen strategy will represent part of a wider institutional framework and initiatives promoting decarbonization and renewable gases once a corresponding EU directive and regulation have been established and adopted, the sources noted.

Aristotelis Aivaliotis, the energy ministry’s General Secretary of Energy and Natural Resources, has underlined that the ministry aims to deliver results on the strategy within the first half of next year.

Experts have noted the process will be quite complex and will require plenty of effort and coordination for results.

Steps needed by the ministry will include legislative revisions while, at the same time an updated National Energy and Climate Plan is finalized. An NECP proposal has been submitted to the European Commission and is currently being examined.

It should be pointed out that the European Commission has proposed the establishment of an independent European regulatory authority that would manage hydrogen infrastructure.

Auction for 400 MW in pilot-project floating turbines in ’26

A second package of pilot offshore wind farms, this one featuring floating wind turbines instead of fixed-foundation turbines, is being planned by the energy ministry as a package to be developed prior to 2030 and possibly exceed 400 MW.

Contractors of these offshore wind farms will be determined through auctions. The energy ministry plans for these auctions to be staged in about three years’ time, towards 2026, so that the pre-2030 completion target date for these projects can be achieved.

Successful participants will secure investment support for the development of their projects, while the ensuing pilot offshore wind farms will operate under a scheme offering guaranteed revenues for their electricity production.

As the development of these projects will be prioritized by authorities, they will be installed at an initial lot of sea areas to be fully licensed by EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, overseeing marine areas appropriate for such projects.

These pilot-project sea areas will be picked from a collection of marine zones to qualify for the development of a first wave of offshore wind farms, totaling 1.9 GW, by 2030, as projected in the National Energy and Climate Plan.

2-GW grid capacity reservation for offshore wind farms to be ratified

A legislative revision reserving 2 GW in power grid capacity for the country’s prospective offshore wind farms is expected to be ratified in Greek Parliament within the next few days.

This 2-GW grid capacity reservation for electricity to be produced by offshore wind farms has been included in the revised National Energy and Climate Plan, recently forwarded to the European Commission for approval.

Deputy energy minister Alexandra Sdoukou referred to the aforementioned developments during a speech yesterday at an opening ceremony staged by Copenhagen Offshore Partners for a new office in Athens to host its Greek subsidiary.

COP, regarded as one of the world’s leading companies in the category of floating offshore wind turbines, is partnering with fund management company Copenhagen Infrastructure Partners (CIP), with which Mytilineos has formed an alliance, mainly for the development of offshore wind energy projects in Greek waters.

At the event, Sdoukou highlighted the importance of the National Offshore Wind Farm Development Program, which was recently completed and presented by EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company.

“We are now in a position to know the country’s potential and the first areas where wind farms will be installed,” Sdoukou noted.

Greece’s revised NECP foresees the development of offshore wind farms – both floating and fixed-foundation installations – with a total capacity of 2 GW by 2030 and 17 GW by 2050.

NECP investments of €192bn until 2030 promise GDP surge

The revised National Energy and Climate Plan, boosted to include more ambitious targets for 2030, anticipates investments worth 192 billion euros – primarily in transport – which promise to provide unprecedented momentum for the Greek economy.

Of this 192 billion-euro total, an amount of approximately 100 billion euros is expected to be injected into the electromobility sector, for which an NECP target figure of 460,000 electric vehicles has been set by 2030.

This leaves a further 92 billion euros, still an enormous amount, for investments in other sectors. Energy-related modernization of household equipment and appliances, as well as building energy-efficiency upgrades, are seen capturing the biggest share, with nearly 50 billion euros in investments forecast over the next seven years.

Replacement of outdated household equipment with new, more efficient systems is expected to mobilize close to 42.4 billion euros, according to the revised NECP. A further 6 billion euros in spending is expected for energy-efficiency upgrades to buildings.

The numbers are staggering and highlight a prospective boom in construction and related sectors, as long as households are ensured substantial aid and financing.

Subsidy programs supporting home energy-efficiency upgrades and electric vehicle purchases will need to be doubled, even tripled, annually, compared to previous years, as pointed out in the revised NECP, if abounding theories contending that the green transition is costly and financially harmful are to be proven wrong.

The percentage of GDP for spending on all types of energy-related products and services is seen rising from 19.4 percent in 2021 to 21.6 percent in 2030, before sliding to 17 percent.

Investments in all forms of cleaner electricity production, from solar farms to onshore and offshore wind farms, are ranked third. The revised NECP anticipates investments totaling 11.9 billion euros until 2030 in this domain.

Grid development is ranked fourth with anticipated investments of 6.5 billion euros by 2030, followed by much smaller amounts for energy-efficiency improvements in industry, natural gas and oil systems and other alternative fuel-related expenditure.

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.

Biomethane sector draft bill forwarded for consultation

A draft bill for the development of Greece’s biomethane sector is ready and set to be forwarded for consultation, deputy energy minister Alexandra Sdoukou has told a conference organized by the Hellenic Association of Biogas Producers (HABIO/ESPAV).

Consultation on the draft bill will, according to the energy ministry plan, begin with a closed procedure involving biomethane producers, supply companies, gas operators and other public entities directly associated with the sector, to provide initial comments and observations on the draft bill for preliminary corrections.

The consultation procedure will then continue as normal with the aim of being completed by the end of the year so that legislation procedure may begin early in 2024.

The ministry opted for a double-staged consultation procedure believing it will bring the shape of the legislative proposal as close as possible to completion, having taken into account the views of market officials. A similar route was followed to update the National Energy and Climate Plan.

Investment support for the biomethane sector will be sought through the REPowerEU facility, introduced by the European Commission, in response to the 2022 Russian invasion of Ukraine, to end the EU’s reliance on Russian fossil fuels before 2030.

Brussels to request 2024-26 interim targets for wind energy

The European Commission is preparing to set interim targets between 2024 and 2026 to highlighting the extra effort needed in the EU if wind-energy goals set for 2030 are to be achieved.

Brussels is currently preparing its preliminary version of a Wind Power Package, expected to be presented today.

Though still just a draft, the package, it has been indicated, will highlight that growth in Europe’s wind-energy sector is well behind schedule, as has been pointed out on a number of occasions by Brussels-based wind energy industry association WindEurope.

According to the draft of the wind power package, obtained by energypress, the European Commission will call on EU member states to commit, by the end of 2023, to specific wind-energy targets that offer clarity on what lies in store for the sector’s development over the next few years.

These commitments would be incorporated into the European Commission’s ambitious target of 111 GW in offshore wind farms across the EU by 2030, the draft plan notes.

The package also expects wind-energy additions to National Energy and Climate Plans.

The European Commission plans to deliver recommendations concerning licensing matters and long-term renewable energy planning in December, after having assessed National Energy and Climate Plans submitted by member states.

In doing so, Brussels will seek to encourage member states to reinforce and specify national plans, especially on matters concerning wind energy.

In Greece, ELETAEN, the Greek Wind Energy Association, had responded to the country’s revised NECP, published in the summer, by noting that onshore wind farm goals were greatly reduced.

 

Nuclear plants, Baltic pipeline on energy council agenda

Electricity market reforms, the energy situation in Ukraine, progress on revised National Energy and Climate Plan appraisals, energy-efficiency financing matters, Europe’s preparations for winter, the shutdown of the Baltic-connector pipeline, CO2 emission rights, as well as nuclear power plant support are among the agenda items to be discussed at today’s EU energy council.

On the electricity market reforms front, support for nuclear power plants will be a key agenda topic. France and nine other EU member states are expected to call for two-way Contracts for Difference. Germany has already expressed reservations, fearing the impact of CfDs on the rest of the market if unconditionally applied.

This disagreement needs to be resolved as quickly as possible so that the revised market structure can be finalized and adopted by the end of the year. Market players are confident a compromise solution will be found before the end of this month.

European Commissioner for Energy Kadri Simson is expected to update EU energy ministers on how assessments of revised NECPs are progressing.

Also, Finland and Estonia will inform fellow EU members on any findings of an investigation conducted to determine the cause of damage discovered last week at the Baltic-connector gas pipeline, used by the two countries for access to an underground gas storage facility in Latvia. Suspicions of sabotage have been raised.

Ministry planning offshore wind farm pilot projects

The energy ministry appears determined to press ahead with the development of one or two pilot projects for offshore wind farms at Greek territorial waters over the next few years, until market conditions for this sector have matured and technological advancements allow for bigger projects that are sustainable, based on market terms, a situation not expected before the end of this decade.

Ministry officials are exploring the possibility of EU funding for these pilot projects, but have yet to identify any specific sources.

These potential pilot projects are not related to bottom-fixed offshore pilot projects in the Alexandroupoli area, northeastern Greece, already being developed through a different procedure.

Support measures ensuring the sustainability of offshore wind farms, a RES sub-sector still at a nascent stage, are necessary, as was highlighted by a recent auction in the UK, which failed to attract any bidders. Without support, renewable energy growth rates may be impacted.

The energy ministry plans to soon complete an institutional framework, publish related maps, announce tenders and measure wind speeds.

Measurement details concerning all areas considered for offshore wind farms, not just those to host the pilot projects, are expected to be made available to investors so that they can have a complete picture for overall investment plans.

The country’s updated National Energy and Climate Plan (NECP), currently being prepared ahead of its imminent submission to the European Commission for approval, will include revisions highlighting the Greek State’s objective of fostering robust growth for the offshore wind farm sector.

Speaking at the recent Thessaloniki International Fair, deputy energy minister Alexandra Sdoukou expressed a determination to dispel doubts about the offshore wind farm sector’s future in Greece. “Our wind [energy] potential is incomparably superior to that of our neighbors”, she noted.

Great depths encountered at Greek territorial waters will make it virtually impossible to install bottom-fixed wind turbines at most areas, meaning investors will need to opt for floating units as a means of exploiting the country’s rich wind potential, especially in the Aegean Sea.

 

Market players seek maximum benefits from revised NECP

Market players have expressed a range of reservations and concerns about targets set in the country’s revised National Energy and Climate Plan, whose finalization is a step away, following consultation that was completed early this month.

The revised NECP is designed to provide market range and policy guidance rather than to offer precise, pinpointed figures, one inside source has told energypress.

For its part, the industrial sector described the cost of the green transition included in the NECP as “exorbitant”, while at the same time stressing the need for investment support and funding for new technologies, such as hydrogen and renewable gases.

Produc-E Green, a subsidy program budgeted at 199.7 million euros and funded through the Resilience and Recovery Fund (RRF), was launched in May to provide financial support for the development of innovative, green-energy facilities.

Subsidies offered through the Produc-E Green program can reach up to 70 percent of investment cost for domestic companies establishing facilities manufacturing products concerning electromobility, renewable energy and energy saving.

SEF, the Hellenic Association of Photovoltaic Companies, noted the NECP is generally headed in the right direction but proposed greater solar-energy participation in the energy mix and increased targets for battery storage.

The new NECP foresees reduced installed photovoltaic capacity in 2030, compared to an earlier draft of the plan in January, 2023, down to 13.4 GW from 14.1 GW.

ELETAEN, the Greek Wind Energy Association, in a letter to the energy ministry, has noted, among other things, that the target for onshore wind energy units is extremely low and not aligned with the market’s true potential.

Market conditions indicate that the country’s wind-energy capacity will total nearly 6.5 GW within the next three years, meaning that a 7.6-GW target set for 2030 would lead to a major slowdown from 2026 onwards, ELETAEN noted.

Environmental organizations have been highly critical of the revised NECP draft, describing it as a compromise favoring natural gas, compared to the plan’s previous draft.

 

Energy upgrades of buildings to total €900m, annually

Annual sums of 900 million euros are projected to be invested in energy-efficiency upgrades to buildings between 2025 and 203o to facilitate the achievement of energy-saving and emission-cutting targets, according to the revised National Energy and Climate Plan.

In the preceding period, between 2020 and 2025, the support package for energy-efficiency upgrades to buildings will total 600 million euros, annually, down from a figure of 642 million euros included in the NECP’s previous version, presented last January.

Also, investment and consumer spending on energy-efficiency equipment is projected to reach 12.5 percent of GDP between 2025 and 2030, up by 3.5 percent of GDP compared to to the period covering 2015 to 2020, according to the revised NECP.

Households are projected to represent 52 percent of investment and consumer spending on energy-efficiency equipment between 2025 and 2030, according to the revised NECP.

Consumer spending on energy-efficiency equipment, as a percentage of income, is expected to rise to 8.2 percent in 2030 from 5.7 percent in 2020.

Electric car charging network to exceed 800 MW by 2030

Greece’s electric vehicle charging network is expected to exceed a capacity of 800 MW by 2030, a level that would facilitate the development of electromobility so that one in three new vehicles can be electric by the end of the decade, according to the revised National Energy and Climate Plan.

In practical terms, this means charging stations will need to offer at least 1.3 KW for every purely electric vehicle and 0.8 KW for hybrid models.

Meanwhile, authorities are also promoting the development and use of smart systems for communication with charging infrastructure, their control, and possibilities provided to computer users for easier use of these systems.

The growth of charging infrastructure is expected to be promoted through a comprehensive approach combining tax incentives and subsidies. This strategy will be further bolstered by the implementation of mandatory charging infrastructure in suitable areas.

The integration of these measures with the deployment of intelligent systems promises to not only enhance charging efficiency, but also offers opportunities for domestic business expansion.

 

Support mechanism needed for old gas-fueled power stations

A support mechanism preventing premature withrawals of older natural gas-fueled power stations, as a result of commercial viability issues, will be necessary to avoid energy insufficiency issues, authorities have underlined in Greece’s revised National Energy and Climate Plan.

The revised NECP anticipates a further 700-MW capacity for natural gas-fueled electricity generation, slightly higher than the plan’s objective set in January.

Developments over recent years concerning the decarbonization effort, combined with the energy crisis and market volatility, have brought new conditions for power generation in Europe and Greece, resulting in a revision of various constants.

One of these is the role of the older gas-fueled power plants, which can no longer be taken for granted, as they may face commercial viability issues in the new environment, especially when facing competition from new gas-fueled power plants that are expected to be installed in Greece over the next few years, as these new units will be better equipped and more efficient to meet the grid’s specific needs.

The revised NECP takes this prospect into account. It simulates hypothetical scenarios entailing early withdrawals of old gas-fueled plants for economic reasons.

Premature withdrawal of two or three older, less energy-efficient gas-fueled power stations would have minimal impact on energy sufficiency, but the withdrawal of a greater number of units would endanger the country’s energy sufficiency, the revised NECP notes.

 

Electric vehicle penetration target lowered in revised NECP

Greece’s revised National Energy and Climate Plan includes a reduced electromobility penetration target, down to 29 percent of the country’s fleet for 2030 from 32 percent at the beginning of the year, as well as a 19 percent intermediary target for 2025.

The country’s fleet of electric vehicles is expected to increase from approximately 25,000 at present to 85,000 in 2025 and over 750,000 by 2030, according to the revised NECP.

The NECP also favors the maintenance of subsidies and incentives for electric vehicles.

Achieving the revised targets for the reduction of CO2 emissions in the light vehicle sector requires both the continuation of existing policies and the adoption of new policies, as well as the adoption of measures focused on maintaining and improving an appropriate framework for electrification, to a significant extent, of this sector, according to the revised NECP.

Policy measures should include financial incentives for electric vehicle ownership in the form of tax incentives and subsidies, as well as incentives related to the cost of using vehicles, it adds.

NECP revisions in consultation for October Brussels delivery

The energy ministry has shared an updated National Energy and Climate Plan with market officials for their input in consultation until August 28.

Notably, this updated NECP incorporates revisions to 2030 targets that were initially outlined by the ministry in January pertaining to the installed capacity of power stations and energy storage units.

The targets outlined in the proposal, which indicate the expected status of each technology within the national electricity system after a decade, should be viewed as preliminary. In the final version of the text, the energy ministry is expected to incorporate further amendments to the relevant figures after having taken into consideration the insights and suggestions provided by various market players.

In contrast to its earlier presentation in January, the updated NECP now features a comprehensive full-text structure. Notably, it encompasses projections detailing the anticipated trajectory of consumer electricity prices up until 2030 and 2050. Additionally, this refined version incorporates estimations regarding the necessary levels of investment and consumer expenditures required to align with the objectives of climate targets.

The draft currently undergoing consultation includes a slight correction concerning the projected involvement of Renewable Energy Sources (RES) in the energy mix for 2030. Specifically, RES participation in gross final energy consumption has been adjusted to 44%, a marginal decrease from the previously presented 45% in January.

Additionally, RES contribution to electricity generation has been refined to 79%, reflecting a minor adjustment from the earlier figure of 80%.

The revised NECP includes a significant cut in batteries, whose installed capacity in 2030 has now been set at 3.1 GW, from 5.6 GW. The target for pumped-storage units has also been reduced to 2.2 GW from 2.5 GW.

On the contrary, the 2030 target for installed gas-fueled power stations has been increased to 7.7 GW from 7 GW, while lignite-fired power stations are expected to be fully withdrawn by 2030.

The ministry aims to soon finalize its revised NECP for submission to the European Commission by October. The finalized plan will include road maps for 2030 and 2050, as is expected of all member states.

 

 

 

PPC plans 5 pumped-storage stations, to offer 1,407 MW

Power utility PPC plans to develop five pumped-storage hydropower stations promising a total capacity of 1,407 MW, while a tender to offer a development contract for the first of these projects is expected to be staged within 2024.

The five projects, expected to require investments of more than one billion euros, will significantly boost PPC’s existing portfolio of pumped-storage hydropower stations, currently offering a total capacity of 696 MW.

Terna Energy’s development of a 680-MW pumped-storage hydropower station in Amfilohia, northwestern Greece, now in progress, will add to the country’s overall PSH capacity.

The first of PPC’s five prospective pumped-storage hydropower stations, a 148-MW unit, is planned to be developed at the Kardia lignite station, just south of Thessaloniki.

Among the five projects, it is worth noting that the Kardia project’s licensing procedure has progressed to the most advanced stage – an environmental permit has been obtained – and, subsequently, will be the first to be developed.

As for PPC’s four other pumped-storage hydropower stations, the company just submitted energy storage license applications to a June licensing cycle.

Two of PPC’s four projects, each with capacities of 460 MW, are planned to be developed at Lake Vegoritida and Sfikia, both in Greece’s north. The new Sfikia project will come as an addition to PPC’s existing pumped-storage hydropower station in the same area.

The other two PPC projects are planned to be developed at former lignite mines, one in Megalopolis, central Peloponnese, the other at Mavropigi, close to Ptolemaida, in the country’s north.

The overall capacity of the country’s pumped-storage hydropower stations will need to rise to 2,500 MW if the updated National Energy and Climate Plan’s RES target, aiming for 80 percent of the energy mix by 2030, is to be achieved.