natural gas-fueled power stations

Power demand continues fall in January, RES dominate output

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

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

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

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

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

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

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

 

Rising CO2 right prices making lignite power stations costlier

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Natural gas prices have been sliding of late but the cost of CO2 emission rights has climbed steadily to rise above 100 euros per ton, a trend that has renewed concerns about energy costs in Greece, especially as lignite’s share of the country’s energy mix is still considerable and currently holds an 18.86 percent share.

Prior to Russia’s war on Ukraine, analysts did not expect such CO2 emission right prices any sooner than 2030. The energy transition and an EU decision for stricter ETS terms, approved in European Parliament just days ago, are key factors behind the rise.

A surplus of CO2 rights in the market has been reduced, prompting many companies to rush and buy quantities, which has increased demand and prices.

Gas-fueled power stations gain ground over lignite-fired power stations when gas prices fall and CO2 emission rights increase.

The TTF natural gas index is currently at approximately 49 euros per MWh. If it drops further to a level of 40 euros per MWh, the variable costs of natural gas-fueled power stations will be lower than those of lignite-fired power stations.

CO2 emission right prices have soared since 2017, when their average price was just 5 euros per ton. They increased to an average of 15 euros per ton in 2018, 24 euros per ton in 2019 and 2020, 52 euros per ton in 2021 and 80 euros per ton last year.

The total outlay on CO2 emission rights by producers rose to 851.7 million euros in the first nine months of 2022 from 539.4 million euros during the equivalent period of 2022.

Charge on power producer gas wipes out Gazprom imports

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An extraordinary fee of 10 euros per MWh imposed on natural gas-fueled power stations appears to have been instrumental in virtually wiping out, in January, Russian gas imports, which represented just 0.67 TWh of Greece’s 5.9 TWh total in gas imports for the month.

The extraordinary fee prompted a sharp drop in demand last month for natural gas used by electricity producers operating natural gas-fueled facilities. This fall in demand had begun taking shape in December but took on far greater proportions in January.

LNG imports via the LNG terminal on the islet Revythoussa, just off Athens, represented the lion’s share of orders, reaching 3.9 TWh of January’s 5.9 TWh gas imports tally, or 66 percent.

According to data provided by gas grid operator DESFA, overall natural gas demand in Greece fell by 38 percent last month compared to January, 2022. Electricity producers registered a 42 percent drop in demand for natural gas last month, to 2.1 TWh from 3.66 TWh in the same month a year earlier.

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

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

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

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

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

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

Elpedison set to finalize decision for Thessaloniki CCGT

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Helleniq Energy, formerly ELPE, and Edison are close to finalizing an investment decision for the co-development, by their Elpedison partnership, of an 826-MW CCGT, or gas-fueled power station, in Thessaloniki.

Elpedison’s shareholders are expected to reach an investment decision for the 826-MW CCGT in May, sources have informed. Preliminary work linked to this project has already begun at Helleniq Energy’s refineries.

This prospective CCGT was one of the first new-generation projects to have been licensed by RAE, the Regulatory Authority for Energy, back in 2019. However, despite the time that has since elapsed, the partnership’s shareholders had held back on an investment decision.

The country’s decarbonization plan, and its scope, was one issue that troubled company shareholders,

The Elpedison CCGT is fully licensed in terms of environmental, town planning and other requirements.

Despite its early licensing, other CCGT projects of the same class have jumped ahead and are already being developed in various parts of Greece.

The Mytilineos group has already launched an 826-MW CCGT in Agios Nikolaos, Viotia, northwest of Athens. GEK TERNA and Motor Oil have joined forces for an 877-MW Thermoilektriki Komotinis gas-fueled power station. More recently, power utility PPC, DEPA Commercial and Damco Energy reached an investment decision to develop an 840-MW gas-fueled facility in Alexandroupoli, northeastern Greece.

 

PPC, DEPA, Copelouzos confirm Alexandroupoli power station plan

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Power utility PPC, gas company DEPA Commercial and the Copelouzos group have finalized an investment decision for the development of an 840-MW natural gas-fueled power station in Alexandroupoli, northeastern Greece, a project budgeted at a total of 480 million euros, including supporting projects.

The project was officially approved yesterday at a shareholders’ meeting staged by Ilektroparagogi Alexandroupolis, the consortium formed by the three project partners for this venture.

PPC holds a 51 percent stake in Ilektroparagogi Alexandroupolis, DEPA Commercial has a 29 percent stake and the Copelouzos group is involved with a 20 percent stake.

The three partners behind the 480 million-euro project are believed to have already secured financing from the National Bank of Greece. They plan to begin construction imminently and have completed the Alexandroupoli project by 2025.

The Alexandroupoli power station is expected to feature the lowest variable cost among all natural gas-fueled power stations operating on Greece, meaning it will hold priority status for wholesale market entry.

Its location will enable the facility to be supplied gas directly via the Alexandroupoli FSRU, now being developed by Gastrade, a consortium established by the Copelouzos group for the development and operation of the floating LNG terminal.

The Alexandroupoli power plant will be equipped to also burn hydrogen in a mixture of up to 50 percent.

 

 

Gas demand plummets, power stations off, gas importers hit

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Natural gas demand has fallen sharply in Greece, firstly as a result of the mild winter weather being experienced, which has restricted household gas demand for heating purposes, and secondly as gas-fueled power stations have remained sidelined for many hours per day because they are not competitive and are being undercut by electricity imports.

Retail gas demand for household, professional, small-scale industrial and industrial usage has fallen by as much as 50 percent, market officials have told energypress.

The reduced level of competitiveness affecting gas-fueled power stations has been primarily attributed to an extraordinary levy of 10 euros per MWh imposed, as of November 1. Also, many businesses have turned to alternatives such as diesel and LNG.

The sharp drop in natural gas usage has especially affected gas importers, some of which are committed to import agreements with take-or-pay clauses, while others have reserved slots at the Revythoussa LNG terminal close to Athens for LNG shipments.

Electricity imports currently cover approximately 25 percent of daily demand, data provided by the Hellenic Energy Exchange for the past week has shown.

Levy on gas-fueled power hurts producer competitiveness

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An extraordinary levy of 10 euros per MWh imposed, as of November 1, on the country’s natural gas-fueled power stations has proven detrimental to their level of competitiveness, greatly contributing to the adverse market conditions they face.

The situation has further deteriorated for electricity producers during the first weeks of the new year, as reflected by the level of wholesale electricity prices in Greece, the highest among neighboring EU member states, despite a considerable TTF index drop in natural gas prices.

This extraordinary levy of 10 euros per MWh on natural gas purchased by gas-fueled electricity producers was introduced when gas prices at the TTF index ranged between 120 and 130 euros per MW, representing approximately 8 percent of the TTF. However, as a result of the sharp decline in natural gas prices to levels of between 55 and 60 euros per MWh, this levy has now risen to represent roughly 14 percent of the TTF.

The increased electricity production cost has led to a rise in electricity imports, even if hailing from older, higher-emitting facilities.

In the first twenty days of January, electricity imports ranged between 20 and 40 percent of Greece’s energy mix, well over the 2022 average of just 8 percent.

During this twenty-day period, the cost of wholesale electricity in Greece, averaging 239.98 euros per MWh, was the highest in the EU.

Turbine installed at GEK TERNA-Motor Oil gas-fueled power station

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A Siemens HL-class gas turbine, the first to be used in Greece, has been installed at a prospective 877-MW state-of-the-art combined cycle, gas-fueled power station being developed by GEK-TERNA and Motor Oil Hellas in Komotini, northeastern Greece, planned to be launched in early 2024, Motor Oil Hellas has announced.

The project, Thermoilektriki Komotinis, an investment estimated to be worth 375 million euros, promises to be one of the most efficient power plants in Greece. Once operational, it will emit 75 percent less CO2 than lignite-fired power plants.

Thermoilektriki Komotinis is the second gas-fueled power station that has undergone development in Greece over recent years, following the construction, by the Mytilineos group, of an 825-MW unit in Viotia, northwest of Athens, whose commercial launch is imminent.

Construction of a third gas-fueled power station, in Alexandroupoli, northeastern Greece, as a joint venture by power utility PPC, gas utility DEPA and the Copelouzos group, is scheduled to officially commence this Saturday.

The country requires at least three additional power stations to secure energy sufficiency, according to a recent study conducted by power grid operator IPTO for 2025 to 2035.

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.

RES output doubled, wholesale electricity price plunges 44%

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

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

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

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

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

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

 

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

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

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

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

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

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

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

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

Some investors behind CCGTs stalling, others forging ahead

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Energy crisis uncertainty and the singling out of natural gas for its exorbitant price levels are factors troubling investors behind new combined cycle gas turbine (CCGT) plant projects.

Some investors have stalled their CCGT investment plans, waiting to see how developments unfold concerning gas prices and availability, while, on the other hand, more aggressive players are forging ahead.

Elpedison has yet to reach an investment decision on a new 860-MW CCGT at the company’s Thessaloniki refinery facilities. Despite having begun some preliminary work, Elpedison’s partners – HELLENiQ ENERGY, until recently named Hellenic Petroleum (ELPE), and Edison – have put their Thessaloniki CCGT project on hold to appraise international and European energy market developments.

If developed, Elpedison’s prospective 860-MW Thessaloniki facility would add to the joint venture’s two existing facilities. The HELLENiQ ENERGY petroleum group is also planning an FSRU at the Thermaic Gulf, which would establish a Thessaloniki hub for the company.

The Copelouzos group has also been troubled by the adverse market conditions. Group member Damco Energy had secured a license for an 840-MW CCGT in Alexandroupoli, northern Greece, but the high cost of natural gas and overall market uncertainty prompted the company to not go it alone and seek partners for the project.

According to sources, power utility PPC and gas company DEPA Commercial have joined Damco Energy for the Alexandroupoli CCGT. Official announcements on the partnership are expected soon.

Elsewhere, the GEK TERNA and Motor Oil groups have begun working on an 877-MW CCGT in Komotini, northeastern Greece. The former, in its publication of first-half results, noted work on the “Thermoilektriki Komotinis” project is continuing, its scheduled launch unchanged for 2024.

 

 

 

 

 

Natural gas charge introduced for generation quantities

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The energy ministry has announced a 10-euro per thermal MWh charge on natural gas used by natural gas-fueled power stations, a key reason behind the initiative being the need to reduce gas demand as part of the country’s wider effort for less gas consumption, ministry sources explained.

In addition, the measure’s implementation serves as preparation for a possible decision by EU member states to impose a price cap on all electricity generation technologies other than gas, the ministry sources noted.

Independent electricity producers admitted being caught by surprise, noting they found out about the new measure through the media.

“We are unaware of the reason why the ministry is proceeding with such a move given the fact that the revenue recovery mechanism (price cap) collects funds for energy-bill support,” one representative noted.

Electricity production company sources estimated the measure is worth roughly 400 million euros per year.

PPC, DEPA Commercial in PPP talks for gas-fueled facility

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Power utility PPC and gas company DEPA Commercial, both state-controlled, are involved in advanced talks with private energy groups for a joint investment concerning the development of a gas-fueled power station.

PPC and DEPA Commercial have already agreed to join forces for this project and are now discussing the matter with private investors for the establishment of a public-private partnership (PPP), energypress sources informed.

More talks are necessary before the PPP’s formation can be considered a certainty, it is believed. Reports claiming that PPC and DEPA Commercial are holding talks with private companies that are either already developing or close to completing combined cycle gas turbine (CCGT) plants remain unconfirmed.

Officials at PPC are interested in the CCGT plant as they believe natural gas prices will deescalate over the next few years, while DEPA Commercial has decided to enter the domain of electricity generation as part of a wider company plan to vertically integrate its operations.

 

 

Diesel totaling 500,000 cubic meters part of emergency plan

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A total of approximately 500,000 cubic meters of diesel will be required by five natural gas-fueled power stations to run on diesel should Russian gas supply be totally disrupted, authorities involved in the country’s emergency energy plan have estimated.

The turn to diesel, along with lignite, is part of the country’s wider emergency plan. The strategy’s diesel refueling effort at the five power stations, a procedure to last 16 hours a day over a period of between 100 and 120 days, is feasible, officials representing the Hellenic Petroleum (ELPE) and Motor Oil refineries informed an energy ministry meeting yesterday that also involved RAE, the Regulatory Authority for Energy.

The refinery officials believe the emergency plan’s additional capacity required for a three-month period from January through March, 2023, seen is a crucial period, is feasible, despite heightened diesel demand expected in the industrial sector.

Logistical issues stand as the plan’s biggest challenge as the refineries will need to ensure uninterrupted overland diesel supply to power utility PPC’s power station in Komotini, northeastern Greece, and Elpedison’s facility in Thisvi, northwest of Athens, both geographically demanding as a fleet of fuel trucks will need to be assembled for overland supply to the two units. The number of trucks and this supply plan’s cost remain undetermined.

PPC’s power station in Lavrio, southeast of Athens, and Elpedison’s power station in Thessaloniki do not face such issues as both these facilities are situated close to ports.

 

 

 

Day-ahead market split for RES, thermal units requested

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The Greek government has proposed target model structural changes, at a European level, that would split the day-ahead market into two entities, one for RES, hydropower and nuclear facilities, and another for natural gas and coal-fired power stations.

For the first of these two new day-ahead market entities, producers would forecast production quantities and be remunerated based on bilateral contracts, detached from the day-ahead market.

For the second of the two new entities, natural gas and coal-fired power station producers, covering remaining energy needs, would submit financial and volume offers based on existing rules.

The Greek proposal was presented by energy minister at an EU council meeting of energy ministers on July 26, energypress sources informed.

Preliminary talks on the Greek proposal have already been held. The European Commission plans to deliver alternative proposals for the target model’s functioning by September.

The day-ahead market determines clearing prices in the electricity market.

 

 

Electricity producer price cap mechanism launched Friday

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A price-cap mechanism for electricity producer payments is set to be launched this Friday and is expected to generate approximately 580 million euros for the Energy Transition Fund in July, a sum to be utilized for subsidizing consumer electricity bills.

Of this sum, 150 million euros will be derived from natural gas and lignite-fired power stations as well as power utility PPC’s hydropower facilities, while the other 380 million euros will stem from the RES sector.

Most of July’s funds to be provided by the RES sector will not be newly generated money as RES units had already refunded money to the RES special account and its surpluses were then injected into the Energy Transition Fund. Under the new system, these amounts will be directly injected into the Energy Transition Fund.

Through the new mechanism, PPC’s hydropower facilities will be paid 112 euros per MWh and all RES units will be remunerated at a rate of 85 euros per MWh. The remuneration rates for natural gas and lignite-fueled power stations will be determined every month based on a series of factors. For the mechanism’s first month, natural gas-fueled power stations will receive 253.99 euros per MWh for their output and lignite-fired power stations will receive 206.72 euros per MWh.

 

Household, business electricity demand down 6.7% in April

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Higher energy prices prompted a 6.7 percent decrease in electricity demand among households and enterprises in April, compared to the equivalent month a year earlier, according to a monthly report released by power grid operator IPTO.

Overall electricity demand fell at a smaller rate of 3.79 percent as demand for high-voltage electricity supplied to the industrial sector rose by 3.3 percent, the IPTO data showed.

Higher electricity demand in the industrial sector has been linked to export activity as well as pre-determined electricity tariff agreements, protecting producers from the steep energy price rises of late.

High-priced electricity and, by extension, more expensive products, has impacted the purchasing power of consumers, forcing many shops to restrict their business hours.

Output at natural gas-fueled power stations fell 48.8 percent in April, compared to the same month a year earlier, while lignite-fired power stations increased their production by 57.2 percent, the IPTO report showed. Overall, electricity production fell 19.9 percent in April compared to a year earlier, the data showed.

RES production rose, favorable weather conditions being a key factor, to take green energy’s share of the country’s energy mix to 57.34 percent, the IPTO figures showed.

Major RES input lowers electricity price to near zero Sunday afternoon

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Greatly increased renewable energy contributions – covering over 80 percent of demand – during yesterday’s weekend siesta hours of 2pm to 5pm pushed down the wholesale electricity price to virtually zero, or 0.09 euros per MWh.

RES input reached approximately 5 GW (wind and solar energy units), while demand was limited to just over 6 GW, enabling authorities to withdraw from the market lignite and gas-fired power stations.

On the same day, when RES input eventually fell and gas-fired power station contributions were brought back into the grid, the electricity price level rebounded to 283 euros per MWh by the evening.

The wholesale electricity price averaged 168.22 euros per MWh on Sunday, a 27 percent reduction compared to Saturday.

Similar price fluctuations were also recorded in other parts of Europe over the weekend. Negative prices were recorded in Germany and the Netherlands, at -2.49 euros per MWh, and they were even lower in Belgium, at -17.97 euros per MWh. These negative prices essentially mean that consumers are paid to use electricity.

Today, electricity market conditions are back to the ongoing energy crisis’ normal levels. The average wholesale electricity price is at 243.08 euros per MWh, up 44.5 percent compared to yesterday, despite RES input representing 51.1 percent of the energy mix.

Gas-fired generation up 72.3% in February, PPC holds ground

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Natural gas-fueled electricity generation rose sharply, by 72.3 percent, or 622 GWh, in February compared to the equivalent month a year earlier, according to power grid operator IPTO’s monthly report.

This increased generation essentially filled a gap created by lower hydropower production, which dropped by 76.3 percent, or 659 GWh, during the aforementioned period.

Lignite-fired electricity generation fell by 20.3 percent, or 105 GWh, in February compared to the same month in 2021, the IPTO report showed.

These changes highlight the importance of natural gas-fueled power stations for the country’s energy mix, supply security, and grid flexibility, market authorities told energypress.

Overall electricity generation in February reached 3,506 GWh, down 2.61 percent compared to the equivalent month a year earlier.

Natural gas-fueled generation represented a 54.13 percent share of this total production, renewable energy sources generated 40.02 percent, while hydropower units contributed 5.85 percent of the month’s total.

Market shares in the country’s retail electricity market remained virtually unchanged in February, the IPTO report showed.

Power utility PPC did not give away any ground, capturing a 64.23 percent share of the retail electricity market in February, marginally up from January’s 64.1 percent.

Mytilineos was ranked second with a 6.92 percent share, followed by Heron (6.48%), Elpedison (5.78%), NRG (4.19%), Watt & Volt (2.35%), Fysiko Aerio (2.04%), Volterra (2.01%), Zenith (1.89%) and Volton (1.49%).

 

PPC’s Ptolemaida V test run in summer, gas conversion in ’25

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Power utility PPC’s prospective Ptolemaida V power station in northern Greece, whose construction has almost been completed, is expected to undergo a test run this coming summer, as a lignite-fired facility, ahead of its launch late in the year or early 2022, while the unit will be converted into a natural gas-fired unit as of 2025, top-ranked company officials have informed.

The officials ruled out any possibility of a deviation away from the corporation’s natural gas conversion plan for the facility by 2025.

Any delay would be detrimental for PPC given the rising cost of carbon emission rights, currently at a level of approximately 90 euros per ton, leading to losses.

Carbon emission rights would need to drop to a level of no more than 45 euros per ton for Ptolemaida V to cover its operating costs as a lignite-fired facility, the PPC officials noted.

Meanwhile, a recent European Commission decision on its Taxonomy, essentially excluding ultra-modern power stations that are exclusively fueled by natural gas from its list of green investments, comes as a setback for the financing terms achievable for such facilities, the PPC officials pointed out.

The PPC officials admitted, however, that this Brussels decision will push investors to seek emission-reducing solutions, such as mixed natural gas and hydrogen solutions.

PPC is preparing such ventures following a recent announcement concerning a related collaboration with Motor Oil.

The European Commission’s Taxonomy is intended to serve as a guide for private and public-sector investments required to achieve climate neutrality over the next 30 years.

 

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.

 

‘Higher CO2 limit for gas-fired units until hydrogen-based output is plentiful’

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The Hellenic Association of Independent Power Producers (ESAI/HAIPP) has called for the establishment of a higher transitional CO2 emission limit of 340 grams per KWh produced for new natural gas-fired power stations until hydrogen-based electricity production is generated in abundance.

The association submitted its proposal to energy minister Kostas Skrekas ahead of the completion, this Friday, of ongoing consultation between the European Commission and the Greek government on a green energy framework, the Taxonomy Complementary Delegated Act.

ESAI/HAIPP has also proposed that the CO2 limit for existing low-polluting natural gas-fired power stations be raised to 450 grams per KWh produced from the present level of 380 grams.

The association is striving for the European Taxonomy to also cater to the needs of natural gas-fired power stations so that their loan obligations can be met without alarm.

ESAI/HAIPP has stressed that a 270-gram limit proposed by the European Commission for new natural gas-fired power stations is not feasible.

Gov’t utilizes EU terms to offer PPC lignite units more time

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The government has utilized flexible terms in European law, expiring tomorrow, concerning high-polluting power stations to secure a further extension for power utility PPC’s lignite-fired power stations, through additional operating hours, which, in some cases, could stretch as far forward as 2025.

Even so, the power utility insists this initiative will not change the corporation’s withdrawal plan for its lignite-fired power stations, according to which all existing units will be withdrawn by the end of 2023.

PPC, in an announcement, has informed that the additional operating hours secured for lignite-fired power stations will be used within the time limits of respective withdrawal plans that exist for units.

The power utility has avoided using its lignite-fired power stations to full capacity, even though they have developed into lower-cost options than natural gas-fueled power stations.

Under the current market conditions, wholesale electricity prices may have been lower if PPC used its lignite-fired power stations more frequently.

Greater use has been avoided by PPC as these units remain loss-incurring for the power utility given the increasing prices of CO2 emission rights and a variety of technical difficulties, sources told energypress.

 

Grid insufficiency issues from 2022 to 2024, ENTSO-E warns

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Greece is not expected to encounter grid insufficiency issues from 2025 to 2030 but the period between 2022 and 2024 could be a concern, ENTSO-E, the European Network of Transmission System Operators for Electricity, has warned in a latest report covering Europe.

Greece has decided to withdraw most of the country’s lignite-fired power stations by 2023, ahead of the arrival of the new Ptolemaida V facility, for which finalized fuel decisions have yet to be taken, the ENTSO-E study pointed out.

The grid entry of new natural gas-fueled power stations in the second half of the decade is expected to offer equilibrium to any grid sufficiency issues, the report added.

Independent energy groups are currently planning and developing natural gas-fueled power stations, but, for the time being, a Mytilineos group unit is the only upcoming addition, planned for a launch in late 2022. All other investments are not expected to operate before 2024.

This could cause grid sufficiency issues between 2022 and 2024, if lignite-fired power stations are withdrawn without being replaced by natural gas-fueled power stations, the ENTSO-E report noted.

It also made note of Greece’s dependency on electricity imports during periods of shortages, highlighting the country’s grid is highly susceptible to extreme weather conditions. Greece will no longer be able to fully depend on electricity imports, the reported noted.

Also, the installation of batteries and pumped storage stations should not be considered a given as such investments will depend on regulatory framework conditions, ENTSO-E noted.

 

 

 

Crisis Management Committee to examine supply security

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The Crisis Management Committee is expected to meet within the first fortnight of October to examine the overall situation in the energy market, driving price levels up to exorbitant levels for consumers of all categories.

The committee’s members will discuss the issue of supply adequacy and security for meeting electricity generation needs, primarily.

Electricity, natural gas and CO2 emission prices are skyrocketing, while natural gas shortages are now emerging in EU markets, all as a result of an extraordinary combination of developments in European markets.

For the time being, Greek energy sector authorities – RAE, the Regulatory Authority for Energy; DESFA, the gas grid operator; and IPTO, the power grid operator – have remained reassuring. Yesterday, RAE president Athanasios Dagoumas noted: “We are not in a state of alarm but are vigilant.”

Overall natural gas consumption is expected to increase in 2021. Consumption was 14 percent higher in the first half compared to the equivalent period a year earlier, DESFA data has shown.

Gas demand rose in July and August to meet increased electricity generation needs and is also expected to be elevated this coming winter.

In Greece, approximately 60 percent of natural gas consumption results from electricity generation. The ongoing withdrawal of coal-fired power stations and greater reliance on fluctuating RES output is expected to lead to a further increase in demand for natural gas.

Local authorities have pointed to Greece’s natural gas source diversification, made possible by the Revythoussa LNG terminal and TAP, both offering alternative solutions, as crucial in the effort to manage the current energy crisis.

Wholesale electricity prices ease as RES input increases

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Wholesale electricity price levels are expected to drop to an average of 130 euros per MWh in the day-ahead market today, down 20 percent compared to yesterday, a de-escalation attributed to increased RES input, the energy exchange has informed.

Stronger winds have been forecast, increasing the generation potential of wind energy units.

The maximum price in the day-ahead market today is expected to reach 186 euros per MWh and the minimum price will be 92 euros per MWh.

Natural gas-fired power stations are scheduled to contribute the lion’s share, 40 percent, of the day’s electricity needs, renewable energy sources will contribute 24 percent, electricity imports and lignite-fired power stations will each provide 15 percent, while hydropower facilities will contribute 6 percent.

Electricity demand for the today is forecast to drop by 2.5 percent compared to yesterday.

 

 

Grid faces new challenge today as heatwave persists

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The country’s grid stands to face yet another major challenge today as electricity demand could climb to a new record level, driven up by the sustained heatwave conditions, projected to reach levels of between 40 and 42 degrees Celsius.

Power grid operator IPTO projects electricity demand will reach 10,835 MW, which would be a new all-time high, following yesterday’s level of 10,662 MW.

Natural gas-fired power stations operated by power utility PPC and independent producers will once again contribute dominantly, exceeding 43 percent, according to energy exchange data.

PPC’s combined-cycle Lavrio IV will return to action today following the replacement of technical components at the unit, according to IPTO’s schedule for the day.

The overall input of renewable energy units is expected to rise marginally today, compared to previous days, and cover 16.5 percent of demand.

Electricity imports are also expected to cover 16.5 percent of demand today.

Lignite-fired power stations, including Megalopoli IV, back following repairs, are expected to represent 14.46 percent of the energy mix.

Major-scale hydropower facilities should cover a little over 9 percent of electricity demand.

The government’s crisis management team expects generation will reach required levels and, furthermore, could be boosted by greater output at wind-energy facilities as a result of stronger winds that have been forecast for today.

On the other hand, the prospect of stronger winds is unfavorable for firefighters seeking to subdue a number of fire fronts. Also, the risk of new fires is also higher. In such an event, the grid, under extreme pressure over the past ten days amid the sustained heatwave, would surely suffer further damages.

Distribution network operator DEDDIE/HEDNO crews are continuing efforts to restore power supply in fire-hit Varybobi, north of Athens. The northern section of Evia, northeast of Athens, and Pyrgos, northwest Peloponnese, have also been affected by power supply cuts as a result of fires in the regions.

Heatwave pushes up wholesale prices to over €100/MWh once again

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The latest rise in temperatures, prompting further heatwave conditions around Greece, is impacting the wholesale electricity market as the average clearing price in the day-ahead market has risen again to levels of over 100 euros per MWh, following days of more subdued levels, according to energy exchange data.

The average clearing price for today is up to 103.8 euros per MWh, up from yesterday’s level of 93.47 euros per MWh and Sunday’s level of 75.34 euros per MWh.

According to the day-ahead market figures, overall electricity generation today is planned to reach 167,437,017 MWh, with lignite-fired power stations covering just 11,172 MWh, natural gas-fired power stations providing 86,541,739 MWh, hydropower facilities generating 11,829 MWh and all other RES units providing 57,894,278 MWh. Electricity imports are planned to reach 16,159,231 MWh.

Today’s electricity demand is expected to peak at 12.30pm, reaching 8,580 MW, according to data provided by IPTO, the power grid operator.

Three of power utility PPC’s lignite-fired power stations, Agios Dimitrios III, Megalopoli IV and Meliti, will be brought into action today, while five of the utility’s natural gas-fired power stations, Aliveri V, Lavrio IV and V, Komotini and Megalopoli V, will also be mobilized, along with gas-fired units operated by the independent players Heron, ENTHES, Elpedison (Thisvi), Protergia and Korinthos Power.