National Energy and Climate Plan

Electric vehicle penetration target lowered in revised NECP

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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

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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

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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.

 

 

Storage up to 8 GW needed for 27-GW green energy objective

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Energy storage facility investments offering an overall capacity of between 4 and 8 GW will be needed by the end of the decade if Greece is to achieve a national RES portfolio target of 26 to 27 GW, according to studies linked to the National Energy and Climate Plan.

Securing a significant sum of support funds needed for these energy storage installations, to play a pivotal role in the country’s effort to achieve its renewable energy targets for 2030, stands as one of the main challenges faced by the energy ministry’s new leadership.

At present, it remains unclear how much funding support can be secured for this effort through the Recovery and Resilience Facility (RRF).

It is estimated that a sum in excess of one billion euros will need to be found to support investments for energy storage units offering between 4 to 6 GW.

The astronomical sum of support funds required means that new RES objectives in the NECP, once updated, must be kept within realistic proportions, market officials have pointed out.

A related study will need to be conducted to determine the extent of support funds that will be available through auctions for energy storage development, while also specifying any alternative funding sources, the officials added.

Minor revisions to new NECP, aligned with European targets

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Greece’s new National Energy and Climate Plan, passed on by the caretaker government’s energy minister Pantelis Kapros to the re-elected conservative New Democracy party’s new energy minister Theodoros Skylakakis, includes mild adjustments aligning the plan to EU targets but no major changes, energypress sources have informed.

“Together, with Mrs. [Alexandra] Sdoukou, [the ministry’s secretary general, in the previous and new energy ministry] and the other officials, we assembled a team and drafted a pending NECP plan. The work, of course, had been done during the ministerial term of Konstantinos Skrekas. An initial text was authored, as the deadline is on June 30,” Kapros noted.

Minor revisions to a draft originally announced in January have been made, without any change of direction, including for the role of natural gas in the energy mix, or distribution of RES technologies, the sources noted.

The amendments were prompted by revised EU targets seeking greater RES penetration and energy savings, the sources added.

The EU energy-mix target for the RES sector has been raised to 42.5 percent from 40 percent, still lower than a 45 percent target ratified by European Parliament.

The European Commission, driven by Russia’s war on Ukraine, had proposed a European energy savings target of 14 percent, up from 9 percent, before European Parliament ratified a target of 13 percent and an agreement for 11.7 percent was finally set.

It remains unclear if Skylakakis, Greece’s newly appointed energy minister, will move swiftly to forward the revised NECP draft to Brussels by the June 30 deadline or opt to hold on to it for a few more days.

 

Ministry preparing updated, more ambitious NECP draft

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The energy ministry is preparing a Brussels-bound draft of an updated National Energy and Climate Plan to include more ambitious RES and energy savings targets, based on loftier goals agreed to by the EU, energypress sources have informed.

The ministry intends to soon forward its draft of Greece’s revised NECP to the European Commission for any observations and resulting adjustments. The resulting updated version of the NECP will then be presented for consultation.

Greece’s revised NECP will include a higher RES target, lifted to 42.5 percent of total energy consumed, the new European target, which is above a previous target of 40 percent but below a 45 percent target that had been overwhelmingly approved in European Parliament.

The country’s updated NECP will also include an energy savings target of 11.7 percent, the European goal that was eventually agreed to following negotiations to raise a previous goal of 9 percent to 14 percent and a European Parliament vote proposing a 13 percent target.

DESFA assessing action needed for hydrogen-ready network

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Gas grid operator DESFA is conducting a technical study examining interventions that will be needed to the country’s grid so that it may facilitate hydrogen’s entry into the energy mix. The operator aims to have completed and submitted this study to RAAEY, the Regulatory Authority for Waste, Energy and Water, by the end of the year, energypress sources informed.

The operator’s study is planned to include the cost of all actions needed for a hydrogen-ready grid, a substantiated proposal specifying an optimal hydrogen proportion for the country’s gas network, as well as feasibility studies on the connection, to the network, of individual hydrogen-related pilot projects.

These studies, DESFA anticipates, will also get authorities working on a hydrogen-related regulatory framework, currently non-existent.

A committee established to prepare a national strategy for hydrogen completed its task and delivered its findings to the energy ministry in 2021.

However, revisions made to the National Energy and Climate Plan, resulting in more ambitious targets, may prompt the energy ministry to seek an updated national strategy on hydrogen.

DESFA has already prepared a study assessing the degree of hydrogen mixing with natural gas over two stages, as proportions of 5 and 10 percent, and what these proportions would entail in terms of investments needed, Panagiotis Panousos, Energy Transition Manager at DESFA, told the recent RENPOWER conference.

 

RES spatial plan revision to be passed on to next government

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The country’s revised RES spatial plan, a tricky task requiring authorities to strike the right balance between the conflicting concerns of environmental groups and investors, will be delayed until after Greece’s forthcoming general elections, scheduled for May 21, as the issue could develop into a damaging debate for rival political parties.

Though a new RES spatial plan, to replace a version from 2008, has almost been completed by authorities and scheduled for delivery to the energy ministry by late April, it now appears certain that the next government will need to take on the task of forging a plan that satisfies as many conflicting interests as possible.

The revised spatial plan nearing completion addresses rules concerning so-called “wind priority” and “wind suitability” areas that may host RES projects, and also takes into account Natura restrictions for environmental protection.

It also factors in the increased size of turbines since the country’s RES spatial plan from 2008, meaning issues such as distance between such facilities and their impact on the environment have been reexamined. Size restrictions concerning wind energy facility installations at certain areas have been taken into account.

Wind energy installations at mountain areas is another matter of concern. At present, eight mountain ranges in various parts of Greece are included in the country’s RES spatial plan.

In addition, the revised RES spatial plan’s details aim to keep the strategy compatible with National Energy and Climate Plan targets.

 

Even split in wind, solar systems optimal balance, studies show

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An even split between prospective solar and wind energy installations in Greece is the perfect balance in terms of cost-effectiveness and investment, studies conducted by two Greek universities have shown.

Emphasis on the development of either of the two RES technologies is not optimal for RES growth in Greece, Panagiotis Papastamatiou, chief executive of ELETAEN, the Greek Wind Energy Association, told the recent Power & Gas Forum in Athens, citing the university studies.

Although solar energy installations are lower in cost, they require large storage capacities for energy transmission, coming at an increased cost, the ELETAEN official noted, adding that, on the other hand, investment costs for wind energy installations, especially offshore systems, are elevated.

This view raises questions about the National Energy and Climate (NECP) plan, envisaging greater development of solar energy installations, and whether this approach would maximize benefits for consumers, compared to a 50-50 split.

A study conducted by the National Technical University of Athens (NTUA) showed that a combination of 10 GW in solar energy systems and 10.5 GW in wind energy systems would reduce overall generation cost.

Another study, by the University of Piraeus, also showed that a 50 to 60 percent wind-energy share of prospective RES installations is the optimal combination that should be pursued.

 

Athens promoting domestic RES equipment production

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The government is promoting support programs for Greek production of RES-sector equipment, from batteries to energy storage systems, production and assembly of solar panels, as well as equipment concerning the hydrogen and electromobility sectors, energy minister Kostas Skrekas revealed to energypress in a wide-ranging interview held as part of the recent Power & Gas Forum in Athens.

In the interview, given to energypress editor-in-chief Thodoris Panagoulis and Capital’s managing editor Haris Floudopoulos, the minister, amongst other things, referred to the finalization of the National Energy and Climate Plan, which, he stressed, will be set within a more realistic framework, based on respective adjustments at European level.

Skrekas also referred extensively to developments in the retail and wholesale electricity markets, noting the supply code must be changed. He also pointed out the government’s imminent support to energy-intensive industry through a program promoting self-production and energy storage.

The minister highlighted the government’s emphasis on green energy, noting Greece, for the first time, has a RES-sector advantage over European countries of the north and must utilize the country’s ample sunshine to the benefit of household and professional energy consumers.

“The strategy we have developed over the past three years, and for going forward, is about the rapid penetration of renewables in our energy mix. Of course, in order to achieve this, reforms were needed and many steps still need to be taken,” the minister noted, adding further development of RES units and storage, as well as networks, must be addressed to reach a point where all energy consumed is derived from renewables.

Greece is playing a leading renewables role on many fronts, the minister said, making note of the country’s greater licensing speed, highlighted by doubled installed RES capacity within three to four years, from 5-5.5 GW in 2018 to over 10 GW in 2022, which, he added, has resulted in doubled electricity generation from renewable sources.

NECP adjusted to meet loftier EU aim for energy usage drop

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The Greek government has adjusted its National Energy and Climate Plan (NECP), setting a loftier energy consumption reduction goal that aligns the plan with an even more ambitious EU target just set.

Greece has now set a loftier 8 percent energy consumption reduction goal, compared to 2020, by the end of the decade, while the EU, through a provisional agreement reached by the European Council Presidency and Members of the European Parliament, is aiming for an overall 11.7 percent drop by 2030, compared to 2020, above the target of a 9 percent reduction that was set in 2021.

The 11.7 percent reduction goal, at EU level, is a binding target and means EU consumers will need to limit annual energy usage to the equivalent of 763 million tons of oil by the end of this decade.

The EU reduction target is not proportionally shared by member states but, instead, takes into account their capacity to limit respective consumption, a realistic approach offering a certain degree of flexibility.

Greek authorities intend to intensify the country’s energy-efficiency drive concerning buildings, further promote smart management of energy consumption, and maintain efforts aiming to reshape consumer behavior for an overall reduction of energy demand.

HEDNO: Grid capacity boost of 5 GW by 2025 for RES units

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Distribution network operator DEDDIE/HEDNO plans to increase the network’s capacity by 5 GW to 13.5 GW by 2025 to facilitate RES output, Dimitris Vranis, the operator’s Director of the Network Users Division, has told an industry event in Thessaloniki.

The capacity goal set in the revised National Energy and Climate Plan for 2030 would, as a result, be exceeded, noted Vranis, while offering his views on the progress of PV and energy storage unit licensing at an annual event staged by POSPIEF, the Pan-Hellenic Federation of Photovoltaic Producer Societies.

A 25-GW objective has been set by the NECP for RES penetration by 2030, the official said.

Considering that half the RES units to be involved in this further penetration are expected to concern low and medium-voltage connections, the distribution network will need to be able to host projects representing 12.5 GW.

Given this projection, the operator’s aim for a distribution network capacity increase to 13.5 GW by 2025 exceeds the aforementioned capacity needed by 8 percent.

In addition, between 2025 and 2030, DEDDIE/HEDNO plans to further boost the network’s capacity by 2 GW, increasing it to 15.5 GW, Vranis told the POSPIEF event.

At present, RES facilities representing a total capacity of 6.5 GW are linked to the distribution network, the DEDDIE/HEDNO official noted.

Some 7,000 small-scale RES projects representing a total capacity of approximately 2 GW are now being developed, most of these PVs, while 5,300 units are privately owned and represent a capacity of roughly 400 MW, Vranis noted.

 

Energy storage investors scan details ahead of first auction

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Investors looking to install energy storage units in Greece are currently exploring  market participation details and options and how these could secure feasibility as they prepare for a first auction for standalone batteries, expected to take place within the next few months.

Participants will be offered 50 percent of a total capacity of 900 to 1,000 MW currently allotted to energy storage units. Looking further ahead, the country’s updated National Energy and Climate Plan envisages the installation of 5.6 GW in batteries for energy storage over the next ten years.

For the time being, it appears investors will need to develop their energy storage projects without state support, meaning their respective business models will rely entirely on funds generated through the market.

These revenues will, on the one hand, be generated by storage facility contributions to daily coverage of demand, and on the other, remuneration that could be received for provision of a range of services, including grid congestion relief and balancing.

Indeed, in cases of markets such as the UK and Ireland, serving as models for the domestic market, the provision of such services constitute the main source of income for energy storage units, which explains concerns raised by investors in Greece and why they are seeking clarification on financial details in advance before making investment decisions.

It should be noted, however, that in any case, the establishment of capacity mechanisms is considered necessary for the viability of energy storage projects.

New NECP foresees big rise in pumped storage stations by ’30

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Construction of new pumped storage stations and an increase in battery installations are fundamental to the updated National Energy and Climate Plan’s target for greater RES representation in the country’s energy mix by the end of this decade.

The revised NECP, presented yesterday at the Interministerial Committee, includes a higher RES target of 28 GW and an increased energy storage target, for all technologies, to 8 GW by 2030.

A news conference covering the revised NECP’s details may be staged tomorrow.

The new NECP envisages pumped storage stations with a total capacity of 700 MW by 2030, through two power utility PPC facilities at Sfikia and Thisavros in the country’s north.

TERNA Energy has also planned a 680-MW pumped-storage facility in Amfilohia, northwestern Greece, whose completion would take the country’s capacity for this technology to 1,380 MW.

The 8-GW energy storage target set by the new NECP will require battery installations of more than 5 GW.

The new NECP will aim for a balanced approach between a RES capacity increase and energy savings. An energy consumption reduction of 6.2 percent, compared to 2020, has been set.

New NECP at Interministerial Committee on Monday

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The revised National Energy and Climate Plan, a strategy of greater ambition aiming for 24 GW in wind and solar energy installations, 4 GW in hydropower and pumped-storage stations, as well as energy storage projects totaling 8 GW, all by 2030, is scheduled to be presented at the Interministerial Committee on Monday.

As a next step, the road map of the NECP, now completed according to energypress sources, will be officially announced by the energy ministry before undergoing consultation.

The RES sector’s share of the energy mix has been increased to 80 percent in the revised NECP, up from a 65 percent target set in the previous edition.

The existing NECP’s RES and hydropower target had been set at 19 GW. The revised version’s target has been boosted to 28 GW.

The RES installation target of 24 GW, it should be noted, includes offshore wind farms of 2 to 2.5 GW, indicating that the NECP is, for the first time, committing to the development of this new green energy technology.

Last year ended with operating wind and solar facilities of 10.2 GW, meaning installations representing a total capacity of 13.8 GW for the two RES technologies will need to be installed over the next eight years if the NECP’s 24-GW target is to be achieved.

RES project links up 60% in ’22, better grid utilization needed

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RES projects ended 2022 having recorded one of the best performances in recent years in terms of new unit connections to the transmission system, adding a green energy capacity of 583 MW, up from a total of 370 MW in 2021, an increase of approximately 60 percent in a year.

This spectacular increase highlights the tremendous level of interest expressed by investors for the development of new RES projects in Greece. It puts the country on the right track towards achieving ambitious green energy targets set for 2030.

According to the revised National Energy and Climate Plan, Greece is striving for a RES energy-mix share of 80 percent by the end of the decade.

Against this backdrop, priority now needs to be given to better utilize the existing network through legislative initiatives that will free up reserved electricity space from stagnant RES projects.

Also, RES project licensing procedures need to be further simplified so that grid projects included in power grid operator IPTO’s 10-year investment program may proceed even faster.

IPTO: At least 3 new gas-fired power stations will be required

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At least three new gas-fired power stations will be needed to ensure energy sufficiency within the next few years, but these new facilities will require a support mechanism to remain sustainable, a study conducted by power grid operator IPTO, looking ahead to the period between 2025 and 2035, has determined.

This IPTO study, whose findings have been unofficially handed over to the energy ministry, is essentially transitional as its outlook regarding the increase in RES and energy storage installations falls short of announcements made recently by energy minister Kostas Skrekas for the country’s updated National Energy and Climate Plan.

IPTO will make related revisions to the study once an upgraded NECP is officially approved.

Even so, two fundamental issues raised by the IPTO study appear unlikely to change. Firstly, the growing presence of wind and solar energy units in the energy system will need to be accompanied by the installation of more thermal plants, especially gas-fired power stations, given the existing capabilities of energy storage technology, in order to ensure electricity sufficiency.

Besides the new Ptolemaida V power station, now gearing up for a full-scale launch by the end of February – initially as a low-emitting lignite-fired power station before eventually converting to natural gas – at least three big gas-fired power stations will also be needed.

The IPTO study’s second fundamental finding unlikely to change concerns the need for support mechanisms to ensure the sustainability of both new and old power stations, given the concurrent installation of new RES units, energy storage facilities and gas-fired power stations. The energy ministry, as a result, will need to seek European Commission approval of Capacity Remuneration Mechanisms (CRM).

The IPTO study takes into account two RES penetration scenarios, one based on the existing NECP, established in 2019, forecasting RES installations of 15.5 GW and energy storage installations of 1.8 GW by 2030. The other scenario, more ambitious, assumes RES installations of 24 GW and energy storage installations of 3 GW by 2030.

Big 2030 RES, energy storage target boosts for revised NECP

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The energy ministry is preparing to set even more ambitious renewable energy and storage targets for 2030 through the country’s National Energy and Climate Plan, currently being revised as part of national and EU plans aiming to diminish reliance on fossil fuels, especially Russian natural gas.

The energy ministry is expected to set a total RES capacity target of between 25 and 30 GW for 2030, an objective that could be achieved with new wind and solar energy installations, as well as development of hydropower stations.

At present, RES facilities already operating in Greece offer a total capacity of 10 GW, meaning renewable energy projects producing an additional overall capacity of up to 20 GW will need to be developed over the next eight years if the energy ministry’s anticipated RES target boost in the revised NECP for 2030 is to be achieved.

Greece’s revised NECP will also include a major energy storage capacity boost to between 5 and 8 GW by 2030, well above the present target of 1.5 GW, through a portfolio comprising batteries and pumped storage stations.

Also, the 2030 target for the RES sector’s share of the country’s energy mix is expected to be increased to 80 percent from the current NECP target of 65 percent.

‘Stricter enforcement of RES project development plans’

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Stricter enforcement of project development schedules for prospective RES units holding connection terms is required, while licenses need to be revoked if project deadlines are not met, power grid operator IPTO deputy president Giannis Margaris has underlined at an energy storage event in Athens.

The official also stressed the need, from now on, for RES units with integrated energy storage facilities, a combination that would enable a greater number of renewable energy projects to be installed and increase the grid’s ability to absorb their output.

As for energy injection restrictions that will be imposed on RES stations and energy storage stations, the IPTO deputy revealed that a relevant study and proposal by the operator will be submitted to the energy ministry within the next few days.

Margaris reiterated the problem of potential saturation faced by the grid, noting Greece’s current installed RES capacity totals 10 GW (5.5 GW – distribution network operator DEDDIE/HEDNO, 4.5 GW – IPTO), plus 11.5 GW in connection term offers.

The resulting total sum is nearly 22 GW, while IPTO’s ten-year development plan envisages 28 GW by 2030, including capacity being created on islands through interconnection projects, Margaris explained, adding that the National Energy and Climate Plan puts the grid capacity objective at 25 GW by 2030, meaning just 3 GW of available capacity remains, despite the strong level of investor interest.

 

First offshore wind farm auction by 2025 for tariffs over 2 GW

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A draft bill including a development and operation framework for offshore wind farms has been forwarded for consultation, now underway. The development paves the way for a first auction for the sector, expected by early 2025 and seen offering investors tariffs for a total capacity of more than 2 GW.

Prime Minister Kyriakos Mitsotakis has set an objective for a launch of the country’s first offshore wind farms by 2030.

The number of offshore plots to be offered to investors at the first auction remains undetermined at this early stage. But authorities will strive to offer a sufficient number of offshore plots to ensure the achievement of Prime Minister’s objective of a 2-GW total installed capacity for the sector by 2030.

This capacity target could be boosted if National Energy and Climate Plan (NECP) revisions require a greater number of wind energy capacity installations by the end of 2030, as part of the country’s effort to reduce carbon emissions.

DEPA Chief: ‘Holistic approach to energy matters needed more than ever’

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Mr. K. Xifaras, CEO of Public Gas Corporation of Greece (DEPA) SA., writes for International Energy Exhibition of Greece 2022

DEPA Commercial is Custodian of Greece’s energy security and of the smooth operation of the domestic energy market. Today, the energy sector, both in Greece and worldwide, is faced with a series of challenges and unforeseen factors which highlight, now more than ever, the need for a holistic approach to energy matters. The need to contain energy costs and support the society, on one hand, and the process of energy transition, on the other, have created a situation in which the market needs to find a balance which will ensure both the country’s energy efficiency and its survival in sustainable terms.

While trying to solve this difficult equation, the role of natural gas, as a bridge, fuel proves to be decisive for shaping the future of the energy market, given the diversification of energy sources and routes of supply and transport, as well as the expansion of storage capacity. DEPA Commercial, which consistently serves these strategic priorities, has been developing a multi-level strategy for the last three years that has proven to be particularly effective. A strategy with double focus: the verticalization and expansion of corporate activities, and the seamless transition to “green” energy, both of which are national goals described in the National Energy and Climate Plan and the European Green Agreement, enhancing our country’s role as a regional energy hub for the wider Southeast European region.

In order to cover the country’s immediate energy needs and to shield its energy security, DEPA Commercial is increasing the supply of LNG either through current contracts or through the spot market, while having already secured long-term agreements on more favorable terms. At the same time, the company is investing in important infrastructure projects and programs, which are drastically reshaping the energy status quo of the region and are contributing decisively to the process of Europe’s independence from Russian gas, such as the Greek-Bulgarian pipeline – IGB and the offshore LNG terminal (FSRU) in Alexandroupolis. Both, projects which will significantly increase the capacity of supply and storage of both Greece and the neighboring countries it serves.

TAP, Poseidon and EastMed are equally important pipeline projects, with the latter returning dynamically to the forefront as a result of the energy crisis, since it will enable the transport of natural gas from the fields of the Eastern Mediterranean to Europe. To that direction, DEPA Commercial is currently in advanced discussions with trading companies from Israel and Egypt.

In this way, a safety net is established regarding the security of supply in the wider region, which upgrades Greece’s geopolitical status by transforming it into a regulatory factor in the energy landscape.

Simultaneously, given the enhanced importance of natural gas, we have designed a comprehensive strategy aiming, on the one hand to expand the use of natural gas, both geographically and in terms of uses, and on the other hand to create the conditions for the development and utilization of renewable and alternative forms of energy. Keeping this in mind, DEPA Commercial is leading the developments towards the transition to a greener economy by designing and implementing initiatives that promote the further penetration of natural gas in the country’s energy mix, as a transitional fuel on the way to cleaner energy forms. The company also contributes substantially to the promotion of gas mobility and the use of cutting-edge technologies, such as Small-Scale LNG and CNG, thus expanding even further the natural gas network and ensuring distribution even in the most inaccessible areas. At the same, time, emphasis is placed on the development of a sustainable and efficient LNG supply chain for maritime transport that will increase the growth prospects of the Greek shipping sector.

With its sights on the future, DEPA Commercial is already active in the field of Renewable Energy Sources by creating a “green” portfolio that exceeds 200 MW of photovoltaic parks, and is also developing projects, infrastructure and technologies which will be able to serve in the future even “greener” energy such as hydrogen and biomethane.

Moreover, at DEPA Commercial we have proven that we operate always considering pertinent societal issues and, for this reason, with a true sense of responsibility we are contributing decisively to the absorption of a significant percentage of the rise in international gas prices, through the implementation of targeted market interventions aimed at supporting households and businesses, in full cooperation with the Ministry of Environment and Energy.

With a solid vision and through hard work, DEPA Commercial is today an integrated energy company, with strong bases, operating vertically and according to modern corporate governance terms. We are meticulously planning our next steps and we are creating the conditions to successfully meet the ever-changing needs of the market and the economy.

 

NECP officials at odds over future gas role in Greece

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Local authorities are at odds over the role of natural gas in the country’s National Energy and Climate Plan, to be revised, as well as on the decarbonization road map for the coming decades.

A second session just held by an energy ministry working group assembled for the NECP revisions has revealed contrasting views on the future plans for natural gas in Greece, energypress sources have informed.

One side of the working group’s members wants an end to the expansion of natural gas in Greece and containment of investments for new natural gas infrastructure, especially networks.

At the other end, a second group of officials supports that Europe’s intention to end the continent’s reliance on Russian natural gas highlights the need for diversification of energy sources in Greece, as the country’s system is designed based on the assumption of Russia being a key supplier of natural gas.

This group also noted that Greece, based on the new European energy plan, stands to become a main gateway for natural gas to the wider region and, as a result, is favorably positioned for related gas infrastructure investments worth 10 billion euros, through the REPowerEU plan, prompted by Russia’s invasion of Ukraine.

 

Revised NECP’s 2030 energy storage target to be doubled to 3 GW

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Greece’s revised National Energy and Climate Plan will set a doubled energy-storage capacity target of 3 GW by 2030, to support the RES sector’s greater penetration of the energy mix, as part of the country’s contribution to CO2 emission reductions.

The previous energy-storage capacity target of 1.5 GW will be moved closer, to 2025, so that additional energy storage projects may be installed during the latter half of the decade, energy minister Kostas Skrekas told a recent energy sector conference.

The revised NECP will also set a higher target for RES installations, at 25 GW, from the existing plan’s 18.9-GW objective, as energypress has previously reported.

Investors are expected to receive a total of 450 million euros from the Energy Transition Fund as support for the first wave of RES projects to be installed by 2025.

 

 

Updated NECP raises RES capacity target to 25 GW by 2030

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The updated National Energy and Climate Plan is expected to increase the country’s RES installation target for 2030 to 25 GW, up from the existing edition’s 18.9 GW.

The NECP’s greater ambition for increased RES installations and a bigger green-energy share of the country’s energy mix is based on the Fit for 55 agreement reached by the EU last April for a carbon emissions reduction of at least 55 percent by 2030, compared to 1990 levels, revised from the previous reduction target of 40 percent.

Given the latest developments concerning Russia’s war on Ukraine, the EU is now determined to achieve even faster RES development to greatly reduce its reliance on Russian gas imports long before 2030.

The Repower EU plan, recently designed for this purpose, is aiming for an average 20 percent increase in new green projects that would cut natural gas consumption by a further 3 bcm. The Repower EU plan has also raised green hydrogen targets.

Greece’s RES units operating in 2020 totaled 10.1 GW, a capacity that will need to be increased by a further 10 GW by 2030, if the Fit for 55 target is to be met. This ambitious target increases the urgency of the energy ministry’s plan for further RES project licensing simplification.

Network upgrades already planned more than cover the country’s ambitious green targets. Power grid operator IPTO estimates that planned transmission network upgrades will enable RES units with a total capacity of 28.5 GW to operate by 2030.

Fast-track transmission project licensing to slash time needed

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The energy ministry is preparing a new set of rules for fast-track licensing of grid transmission projects, the aim being to slash, by 75 percent, the overall time required for issuance of licenses concerning transmission projects deemed essential for the updated National Energy and Climate Plan, sources have informed.

The revisions, adopting proposals forwarded by power grid operator IPTO, promise to accelerate and simplify licensing procedures for grid transmission projects that have remained complex and too long for many decades. Under the current rules, licenses take as long as five years to be issued.

Environmental permits, just part of the overall licensing procedure, take at least 24 months to be completed. This time period is expected to be restricted to a maximum of seven months once the licensing procedure for grid transmission projects is simplified.

Also, the time needed for related building permits will be reduced from six months, at present, to just 15 days, sources informed.

The new licensing framework for grid transmission projects will serve as an integral part of the national plan for RES management, IPTO sources noted.

 

RES project applications over 2030 limit, halt considered

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RES investor applications submitted to power grid operator IPTO for connection terms concerning wind and solar energy facilities already greatly exceed the grid’s planned capacity for 2030, by 10 GW, taking into account prospective grid infrastructure upgrades.

This excess capacity has prompted the energy ministry to consider suspending the submission of any new applications until authorities have found solutions to manage the accumulation of project applications already submitted.

IPTO has completed its assessment of applications concerning 2020 and has offered connection terms to successfully applicants.

The operator is now preparing to process applications lodged in 2021 and during the first quarter of 2022.

The current total capacity of RES projects, either already operating or which have received connection terms up until the end of 2020, is 19.6 GW.

Applications submitted in 2021 and so far in 2022, all of which need to be evaluated, represent a total capacity of 19 GW.

Greece’s updated National Energy and Climate Plan has projected an installed RES capacity of 25 GW by 2030.

Taking into account all grid expansion projects included in the ten-year investment plans of IPTO and DEDDIE/HEDNO, the distribution network operator, as well as national and transboundary grid interconnection plans, plus anticipated energy storage projects, the country’s RES capacity will reach a maximum of 28.5 GW in 2030.

 

Energy ministry-led committee working on NECP revisions

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An inter-ministerial committee headed by the energy ministry is continuing work on revisions to the National Energy and Climate Plan (NECP), the effort’s aim being to achieve the European Commission’s more ambitious climate change targets, as stipulated in the EU’s Fit for 55 package, striving for a 55 percent reduction of carbon emissions by 2030, compared to 1990 levels.

The committee has lined up meetings with top-ranked officials at related ministries, energypress sources have informed.

Formulas calculating the parameters of the revised Fit for 55 road map are expected to be implemented by the summer.

Besides the revised 2030 targets, the country’s new NECP will include climate-change targets for 2040 as well as energy-mix and energy-efficiency revisions that will be required for the achievement of climate neutrality by 2050, the same sources informed.

Operator starts grid substation upgrades, to offer RES units 1,750 MW

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Power grid operator IPTO has begun upgrading low and medium-voltage substations around the country to facilitate new RES unit connections to the grid.

The overall effort, expected to create additional grid capacity for RES units totaling 1,750 MW, is still at its early stages. So far, two of 33 substation upgrades have been completed, according to energypress sources.

The upgrade is budgeted at 30 million euros, of which 12 million euros is planned to be provided through the recovery fund.

The 1,750 MW in RES unit connections to be enabled by the operator’s substation upgrades represents nearly 40 percent of a 4,640-MW RES capacity estimated to be needed for the National Energy and Climate Plan to reach its energy-mix goals.

The upgrade work promises to increase substation capacity by 250 MVA in the Peloponnese and Epirus regions, by 100 MVA in the wider Athens area, by 200 MVA in central Greece, and by 250 MVA in north and northeastern Greece’s Macedonia and Thrace regions.

All contracts for the substation upgrades are expected to have been awarded by the fourth quarter in 2023, while all work is scheduled to be completed by the fourth quarter in 2025.

 

Taxonomy improvements for gas-fueled power stations

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A number of improvements have been made to criteria concerning the entry of natural gas-fueled power stations to the “transitional activities” section of the European Commission’s Taxonomy, intended to serve as a guide for private and public-sector investments required to achieve climate neutrality over the next 30 years.

However, an emissions limit for natural gas-fueled power stations included in the initial plan has been maintained, despite being considered unfeasible by producers.

The elimination of intermediate objectives for green hydrogen incorporation at natural gas-fueled power stations has been embraced as an important improvement by electricity producers.

Initially, authorities had planned intermediate objectives that would have required hydrogen to represent 30 percent of generation at gas-fueled plants by 2026 and 55 percent by 2030. Under the revisions, green hydrogen will need to fully represent generation at these plants as of 2036.

Consultation on the Taxonomy has just been completed, while supplementary terms have been finalized.

Criteria concerning the entry of natural gas-fueled power stations to the EU’s Taxonomy are crucial for Greece, given the country’s number of investment plans for new natural gas-fueled power stations.

These units, according to the National Energy and Climate Plan, will be called on to play an important role in ensuring grid stability and supply sufficiency as the RES sector further penetrates the energy mix.

 

EDEY: Greece has 30 years to utilize natural gas resources

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Taking into account that 2050 is often presented as the carbon-neutral target year, Greece has a 30-year period of opportunity to utilize the country’s natural gas resources and generate revenue, plus the additional potential provided by the role of gas in blue hydrogen production, EDEY, the Greek Hydrocarbon Management Company, has noted in a report accompanying its financial results for 2020.

EDEY posted a total turnover reduction to 2.8 million euros for 2020, down from 5.5 million euros in 2019, as well as a drop in profit after tax to 1.7 million euros in 2020 from 4.3 million euros in the previous year.

Greece continues to have a window of opportunity to create revenue from natural gas resources through efforts that do not contravene the country’s ambitious green-energy transition now in progress, EDEY noted, highlighting that carbon emissions released by natural gas are 50 percent lower than those of fossil fuels and the National Energy and Climate Plan’s objective (NECP) for a natural gas energy mix share of 40 percent by 2030.