non-interconnected islands

RAAEY energy sufficiency plan for non-interconnected islands

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The energy ministry is close to finalizing a plan to resolve energy sufficiency issues of Greece’s non-interconnected islands following a series of meetings and exchange of opinions with power utility PPC, power grid operator IPTO, distribution network operator DEDDIE/HEDNO, and RAAEY, the Regulatory Authority for Waste, Energy and Water, energypress sources have informed.

RAAEY, the sources noted, is currently preparing a plan for the ministry that contains details of a required legislative revision, which, when ratified, will enable PPC to proceed with its energy sufficiency plan for the non-interconnected islands.

The power utility has prepared a comprehensive plan designed to meet the needs of these islands until 2030, using everything from power coupling and gas turbines to batteries. The cost of these solutions is expected to range between 200 and 500 million euros, depending on the payback period and whether some units will be purchased, in addition to leases.

PPC has already reached an agreement with Greek construction and energy group GEK-TERNA for the purchase and transfer to Crete of the latter’s 147-MW gas-fired power plant, currently stationed in the Viotia area, northwest of Athens.

PPC, which has undertaken the task of ensuring energy sufficiency on Crete, plans to have the power plant transferred and reinstalled on the island in time for this coming summer, when energy demand typically peaks.

At a meeting chaired by the energy ministry, a decision was reached to cover 75 percent of the power plant’s remuneration through the public service compensation (YKO) account, accumulating related surcharges added to all electricity bills.

TSOs preparing power sufficiency plans for the islands

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The country’s TSOs are planning a transitional strategy ensuring electricity supply for the country’s non-interconnected islands still not linked to the mainland grid, as well as a second plan that would boost production capacity and serve as back-up once subsea cable interconnections linking non-interconnected islands have begun operating.

The transitional plan, the most urgent of the two initiatives, is the responsibility of distribution network operator DEDDIE/HEDNO and concerns providing energy coverage for islands to be interconnected as part of the fourth phase of the Cyclades interconnections, plus the Dodecanese and northeast Aegean islands, until power grid operator IPTO has completed its interconnection projects linking all these regions with the mainland.

Development of these projects will need to be synchronized with power utility PPC’s gradual withdrawal of old power plants it operates on islands, when they experience functional issues. Spare parts for these units, now outdated, are difficult to find.

PPC intends to gradually withdraw 32 old power plants with a total capacity of approximately 50 MW from non-interconnected islands. The power utility will do likewise with old facilities on Crete.

PPC reiterates compensation request for island generators

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Power utility PPC has once again raised a compensation request for independent power generators it maintains as back up on the Cyclades  islands, now interconnected with the mainland grid.

The power utility reiterated its compensation request in a letter to RAAEY, the Regulatory Authority for Waste, Energy and Water, as part of consultation on power grid operator IPTO’s ten-year development program.

As noted by PPC in its letter to RAAEY, the regulatory framework should define responsibilities and obligations for the provision of emergency reserves.

However, it added, the regulatory framework governing the operation of independent power generators in cases when island systems are interconnected with the mainland remains incomplete.

PPC alternative supply plan for islands to save €200m by 2030

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The energy ministry appears willing to accept an alternative electricity supply plan for Greece’s non-interconnected islands covering up until the end of the decade and just presented by power utility PPC, based on the results of a study indicating that overall savings, also benefiting consumers, would reach an estimated 200 million euros until 2030.

The alternative plan would combine existing power stations and additional generators, wind turbines and batteries on all islands not yet connected to the grid, while old power stations encountering technical faults will be withdrawn rather than repaired.

This alternative supply plan’s cost is estimated at 400 million euros until 2030, compared to a 600 million-euro cost anticipated if the current system of old power stations plus generators, leased by PPC for extra generation every summer, continues to be relied on until every single Greek island has been interconnected.

A total of 41 old power stations operating on islands should have been closed down long ago for safety reasons. Despite their continued usage, the Greek islands need additional 80 percent capacity boosts each summer to cover heightened, tourism-related electricity demand.

Higher-cost electricity generated on the islands is subsidized through public service compensation (YKO) surcharges on all electricity bills. This would be lowered if the alternative plan is adopted.

DEDDIE urged to plan projects for island interconnections

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RAAEY, the Regulatory Authority for Energy, Environment, and Water, has urged distribution network operator DEDDIE/HEDNO to prepare essential network development initiatives required to facilitate the progression of interconnections concerning Dodecanese island Astypalea, as well as islands situated in the Aegean Sea’s northwest and south.

The request accompanied RAAEY’s approval of the operator’s development program covering 2022 to 2026, which did not include these needed projects.

The authority has requested an update from DEDDIE/HEDNO on the necessary network development projects that have not been included in the operator’s network development plan but are related to the interconnections within a month of the approval’s publication in the government gazette.

The operator will need to incorporate these necessary network development projects into the next revision of its development plan.

Non-interconnected island gains for independent players

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A sizeable chunk of electricity users on the non-interconnected islands signed up with independent suppliers, primarily Elpedison, in the first half of 2023, a latest monthly report released by distribution network operator DEDDIE/HEDNO has shown.

Power utility PPC’s market share on the non-interconnected islands contracted from 68.4 percent in January to 60.3 percent in June, mostly to the benefit of Elpedison, whose market share on these islands rose from 7.33 percent in January to 13.8 percent in June, the DEDDIE/HEDNO figures showed.

Fellow independent power suppliers Heron, Mytilineos, NRG, Volterra, Aerio Attikis and Zenith also achieved market share gains over the six-month period.

Heron’s market share rose to 7.73 percent from 6.96 percent; Mytilineos increased its share to 6.22 percent from 4.16 percent; Watt + Volt’s market share contracted to 3.78 percent from 4.9 percent; NRG increased its share to 3.54 percent from 2.71 percent; Aerio Attikis made a marginal gain to 1.7 percent from 1.68 percent, as did Zenith with a rise to 0.83 percent from 0.76 percent and Volterra, whose market share rose to 0.26 percent in June from 0.2 percent in January.

Capacity insufficiency plan for 11 non-interconnected islands

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Distribution network operator DEDDIE/HEDNO has forwarded a plan to RAAEY, the Regulatory Authority for Waste, Energy and Water, detailing how capacity insufficiencies on 11 non-interconnected islands are intended to be covered this summer.

The operator attached its proposed solution to a wider development plan for the non-interconnected islands between 2023 and 2029.

DEDDIE/HEDNO’s plan includes proposals for Rhodes, Santorini, Samos, Lesvos, Chios, Karpathos, Limnos, Ikaria, Kythnos, and Kastellorizo (officially named Megisti), as well as the Kos-Kalymnos grid.

Emergency measures have been required in recent years as a result of prolonged heatwave conditions combined with increased tourism.

DEDDIE/HEDNO’s proposals include a wind-energy facility purchase or long-term rental plan to cover Rhodes’ capacity insufficiency of 17.51 MW.

In addition, long-term rental plans have been proposed by the operator for Santorini’s capacity insufficiency, estimated at 20 MW, Samos’s 12-MW insufficiency, Lesvos’ insufficiency of 14 MW, and Chios’ shortage of 24.5 MW.

Crete set for hybrid RES station installations offering 120 MW

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An energy ministry decision, either imminent or already signed, will pave the way for the installation of hybrid RES stations on Crete offering a total capacity of 120 MW, energypress sources have been informed.

This ministerial decision comes as a follow-up to legislation for a support framework concerning the development of RES facilities equipped with energy storage units on the Greek islands, a plan endorsed by the European Commission.

It is divided into three sections. Crete belongs to the framework’s second section, while the plan’s first section includes small islands, such as Gavdos, not planned to be incorporated with the mainland grid through power grid operator IPTO’s interconnection program. The third section of the plan concerns islands now undergoing interconnection procedures.

The 120 MW in hybrid stations to be installed on Crete will receive tariffs determined administratively rather than through auctions, as the island needs to secure energy sufficiency as soon as possible, leaving no time for competitive procedures.

Of Crete’s 120 MW in prospective hybrid stations, four projects offering a total capacity of 84.45 MW lead the race for securing tariffs, as their licensing procedures have reached an advanced stage.

PPC supply security plan for islands in summer approved

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RAE, the Regulatory Authority for Energy, has approved a power-generator rental plan prepared by power utility PPC to meet sharply higher summer-season electricity demand on Samos, Chios, Santorini, Rhodes, Lesvos and Kastelorizo.

“Supply security at non-interconnected islands is a national priority and it is therefore necessary to take appropriate measures to avoid risks related to their electricity supply,” RAE announced.

The cost of such emergency measures is funded through public service compensation (YKO) surcharges included in electricity bills.

PPC’s emergency rental plan, to run from July 1 to August 31, includes a 12-MW power generator for Samos, a 25-MW unit for Chios, a 20-MW facility for Santorini, an 18-MW unit for Rhodes, a 14-MW facility for Lesvos and a 0.15-MW power generator for Kastelorizo.

Hybrid RES station support for non-interconnected islands

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The energy ministry is preparing to legislate a framework approved by the  offering operational support for hybrid RES stations on non-interconnected islands. The initiative is planned to provide support for the development of hybrid stations representing a total capacity of 264 MW by the end of 2026.

Hybrid stations on non-interconnected islands will be divided into three sub-categories, based on how they will secure tariffs, energypress sources informed. One category will exclusively carry projects based on Crete, a second category will group together small islands not planned to be linked to the mainland grid through power grid operator IPTO’s grid interconnection projects, while a third category will concern islands being interconnected.

Regardless of category, all hybrid stations eligible for the new operational support system will receive support for 20-year periods. The support system will offer funds totaling 1.4 billion euros.

On Crete, the support system is expected to provide support for the development of hybrid power stations representing a total of 120 MW, including 84 MW in hybrid RES projects already at advanced licensing stages.

These specific projects have been granted priority status, a move endorsed by the Directorate-General for Competition, to help cover Crete’s energy insufficiency issues until a grid link from the island to Athens is completed.

 

Solid investment interest for hybrid RES systems on islands

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Greece’s non-interconnected islands, not including Crete, require hybrid RES systems with a total capacity of between 80 MW and 100 MW, according to a distribution network operator DEDDIE/HEDNO estimate, announced by an operator official at an energy storage event.

Theodora Patsaka, head of DEDDIE/HEDNO’s Island Management Division, also told the event that investment interest is high for such green projects on non-interconnected islands. Investor applications submitted to the operator – before licensing framework revisions – represent a total of 80 MW, she noted.

Hybrid RES systems promise to resolve a series of issues encountered by DEDDIE/HEDNO as operator of the non-interconnected islands, the official noted. Besides offering energy storage solutions, hybrid RES systems will enable full utilization.

A total of 28 electricity systems on the islands have disparities, such as varying electricity demand levels, Patsaka pointed out, while demand levels on the islands differ greatly in winter and summer, increasing the difficulty and cost of ensuring energy sufficiency all year round, she added.

The energy ministry, as a next step to the European Commission’s approval of an operational support scheme for hybrid RES systems, must now complete a related pricing framework, which will unlock the selection process concerning projects to be installed on respective islands, Patsaka added.

PPC Renewables requests geothermal units on islands

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PPC Renewables, through a consultation procedure, has requested RAE, the Regulatory Authority for Energy, to include planned geothermal units in its RES development plan for the non-interconnected islands Lesvos, Milos, Kimolos and Nisyros.

PPC Renewables called for the installation of geothermal stations with a capacity of 8 MW on Lesvos, which would fully cover capacity planned through biomass-biogas stations, difficult to develop on islands, as well part of the capacity that had been planned through hybrid stations.

In addition, PPC Renewables has requested a geothermal unit of at least 5 MW for Milos and Kimolos, as well as a geothermal unit with a 5-MW on Nisyros.

According to the National Energy and Climate Plan, geothermal units offering a total capacity of approximately 100 MW are envisioned for installation and operation by 2030. The aforementioned islands, offering geothermal potential, are expected to partially cover this geothermal capacity.

PPC Renewables plans to begin developing geothermal stations on Lesvos and Milos within the next two years.

Consultation for non-interconnected island RES capacities

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Studies conducted by distribution network operator DEDDIE/HEDNO on RES station and hybrid unit capacities for non-interconnected islands have just been forwarded for consultation by RAE, the Regulatory Authority for Energy.

These studies are necessary for the development of a new RES support framework for hybrid units on islands, now being prepared by the government.

Auctions to be held will cover separate regions, while capacities offered will be based on new RES penetration levels.

Maintenance of current capacity figures has been recommended for Samos (7 MW), Lesvos (16 MW) and Chios (10 MW). Elsewhere, new capacity levels have been proposed for Santorini (4.6 MW), Serifos (240 kW) and Patmos (748 kW).

RES auctions for hybrid units on non-interconnected islands in 2022

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Details for RES auctions concerning hybrid power stations at the country’s 47 non-interconnected islands are expected to be finalized within the first few weeks of the new year by sector officials.

The European Commission has approved support for hybrid power stations producing and storing electricity through wind energy facilities and solar parks.

Following Brussels’ approval, the energy ministry’s secretary-general Alexandra Sdoukou, RAE, the Regulatory Authority for Energy, and DEDDIE/HEDNO, the distribution network operator, will now finalize auction terms for such facilities, as well as the capacities of projects eligible for these tariffs.

The intention, at present, is to launch this category of RES auctions in 2022 to help the 47 non-interconnected islands using high-cost, high-polluting diesel-run generators achieve energy self-sufficiency through eco-friendly means.

Brussels close to approving hybrid RES support system for islands

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The European Commission is close to approving a support system for hybrid RES auctions concerning new projects on non-interconnected islands, as minor adjustments are now being made to the existing proposal before the green light is given by Brussels, the energy ministry has informed.

The support system will offer prospective investors tariffs for new projects, while the capacities to be offered at these sessions will be determined by connection terms set by distribution network operator DEDDIE/HEDNO.

Besides taking into account the number of hybrid RES stations each non-interconnected island will be able to host, the operator will also consider the period during which respective islands are planned to be linked with the mainland grid, as it would be pointless to install too many RES units on islands in the present, for greener energy mixes, it they are to be interconnected in the near future.

 

Cable development obligations for island RES projects dropped

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Older RES project plans whose licenses obligated holders to also develop related cable connections can now proceed with the installation of projects without needing to develop the cable connections, according to a legislative revision drafted by the energy ministry.

The revision concerns RES projects with electricity production licenses issued prior to January 1, 2016 and planned for development on islands or island complexes that have been interconnected with the mainland or are planned to be interconnected by December 31, 2024, based on power grid operator IPTO’s ten-year development plan.

 

 

Ministry bill for small-scale PVs without competition procedure

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The energy ministry has submitted legislative revisions to Parliament facilitating the installation of small-scale PVs, up to 500 KW, without competitive procedures as long as interested parties do not already own two such units that have also been installed without competitive procedures.

The draft bill also includes a revision designed to rectify unfair terms of the past for small-scale PVs on non-interconnected islands by offering 10 percent tariff increases for their output.

Another article in the bill enables older RES projects with licenses including provisions for the installation of connecting cables to now be developed without cable links if the hosting island has been interconnected or is in the process of being interconnected.

The bill also transfers distribution network operator DEDDIE’s assets on Crete to power grid operator IPTO, a pending issue that must be resolved for the launch of market activity concerning the island’s small-scale interconnection with the Peloponnese.

Public service compensation account deficit of €36m in 2020

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The public service compensation account ended 2020 with a deficit of 35.96 million euros, according to latest data provided by distribution network operator DEDDIE/HEDNO.

The account’s deficit was greatly restricted by the settlement of transactions concerning 2017, which led to an additional influx of 72 million euros.

At the other end, a settlement of payments concerning 2012-2016, plus an additional settlement for 2014-2016, led to respective account outflow of 21.9 and 21.7 million euros.

The public service compensation account received a 116.7 million-euro injection from the state budget in 2020.

An extensive investment plan being carried out by power grid operator IPTO will greatly reduce the public service compensation account’s financial needs over the next few years, according to Thanassis Dagoumas, chief executive of RAE, the Regulatory Authority for Energy.

Public service compensation account (YKO) surcharges included on electricity bills are used to primarily subsidize high-cost electricity generation on Greece’s non-interconnected islands.

RAE is expected to soon reach a decision on YKO surcharges concerning 2019.

Mechanisms, competition on Vestager agenda, here May 13

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Energy minister Kostas Skrekas intends to present his case for the introduction of five support mechanisms encouraging energy-sector investments in Greece’s ongoing transition towards carbon neutrality to the European Commission’s Vice-President Margrethe Vestager, also Brussel’s Commissioner for Competition, on the occasion of the official’s upcoming visit to Athens, scheduled for May 13.

Vestager will be in the Greek capital with an agenda featuring two pending competition issues concerning state-controlled power utility PPC.

Greece has faced charges for PPC’s monopoly of the country’s lignite sources but an agreement was reached to end the case by introducing a mechanism offering the power utility’s rivals access to lignite-generated electricity.

A market test for this mechanism was completed some time ago but failed to attract any real interest from rival suppliers.

The percentage of lignite-based electricity made available by PPC, initially set at 50 percent of total lignite-fired output and then lowered to 40 percent, is viewed, by third parties, as too small for any real gains.

The second PPC-related matter to be discussed during Vestager’s visit concerns a recently initiated investigation by Brussels seeking to determine whether the power utility has engaged in activities impeding market competition.

Private-sector investors are pushing for a capacity remuneration mechanism (CRM) in order to go ahead with the development of natural gas-fueled power stations, needed as Greece heads towards a post-lignite era. Skrekas, the energy minister, has repeatedly said a CRM will be launched in June.

The minister also supports a strategic reserve mechanism to compensate PPC’s lignite-fired power stations, still needed for back-up services but nowadays loss-incurring as a result of higher CO2 emission right costs.

In addition, the government is seeking compensation for the premature closure of PPC’s lignite-fired power stations and related mines, being phased out until 2023.

The minister also supports a support framework for hybrid units on non-interconnected islands combining RES electricity generation and energy storage.

Skrekas is also striving to establish a mechanism that would subsidize RES producers for power purchase agreements (PPAs) with energy-intensive industrial enterprises as well as suppliers selling to major-scale consumers.

 

DEDDIE seen assuming Crete network responsibility

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RAE, the Regulatory Authority for Energy, appears to have reached a decision requiring distribution network operator DEDDIE/HEDNO to assume management responsibility of Crete’s network when a small-scale grid interconnection linking the island with the Peloponnese is soon launched.

Subsequently, power grid operator IPTO will not need to take on this responsibility until it becomes the owner of the island’s network, RAE appears to have decided.

Just days ago, IPTO made clear it should not assume responsibility for Crete’s electricity network until it acquires this asset from power utility PPC, the current owner. RAE appears to have agreed with this IPTO argument.

The authority held a virtual meeting yesterday with the two operators in search of a solution following the unwillingness, at present, of both to assume management responsibility of the Cretan network.

Normally, when grid interconnection projects for non-interconnected islands are completed, IPTO assumes responsibility of their electricity networks. However, Crete, Greece’s biggest and most populous island, represents a much bigger interconnection project that is being developed over two stages. The project’s second stage, anticipated in 2023, will reach Athens.

It remains unclear how Crete’s electricity system will participate in the target model’s new energy markets once the island’s small-scale interconnection is launched.

The Crete-Peloponnese line will not fully cover Crete’s load, meaning the island may not lose its non-interconnected island status. On the other hand, a considerable 30 percent share of the island’s energy needs will be transmitted through the small-scale interconnection.

An older recommendation by RAE to the energy ministry noted that Crete’s non-interconnected island status should be ended once the small-scale interconnection begins operating for a connection with the mainland grid.

Operators disagree on Crete network responsibility shift

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Power grid operator IPTO and distribution network operator DEDDIE are locked in a dispute over the point in time at which management responsibility of Crete’s small-scale grid interconnection, to reach the Peloponnese, should be transferred from DEDDIE, currently responsible for Crete’s network as the island is classified as a non-interconnected island, to IPTO.

DEDDIE contends that IPTO must take on the responsibility of managing the island’s network with the launch of the small-scale interconnection, anticipated in March, and not in 2023, when Crete’s full-scale interconnection, all the way to Athens, is expected to begin operating.

Crete should be considered an interconnected island as soon as the small-scale grid interconnection to the Peloponnese is launched, even though this infrastructure’s capacity will be able to cover about 30 percent of the island’s energy needs, DEDDIE contends.

Normally, the grid status of islands is automatically revised from non-interconnected to interconnected when grid interconnections serving their energy needs are launched. However, Crete, Greece’s biggest and most populous island, represents a much bigger interconnection project that is being developed over two stages.

DEDDIE, backing its case, has cited an older opinion forwarded by RAE, the Regulatory Authority for Energy, to the energy ministry, through which the authority supported that Crete’s network must be considered a part of the national grid, ending its non-interconnected island status, once the small-scale interconnection begins operating.

Also citing technical reasons to support its view, DEDDIE has pointed out that IPTO will be responsible for the operation and maintenance of the small-scale grid link, infrastructure directly influencing the Cretan network’s performance. Therefore, the island’s high-voltage network and the Crete-Peloponnese interconnection must be managed by the one operator, DEDDIE contends.

IPTO does not reject the prospect of eventually becoming responsible for Crete’s network, but the power grid operator does oppose the idea of assuming responsibility for a fixed asset that does not belong to the company. Crete’s high-voltage network is owned by power utility PPC.

At present, PPC does not appear ready to sell. As a result, IPTO believes DEDDIE must be responsible for the network’s management until this asset is transferred to the power grid operator.

Santorini-Naxos grid link tender set to be announced by IPTO

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Power grid operator IPTO’s plan for a subsea cable interconnection to link Santorini’s grid with Naxos, and, by extension, the mainland system, a project promising to resolve Santorini’s electricity supply shortages confronted every summer as a result of the island’s immense tourism appeal, has just been published, as a preliminary announcement, in the Official Journal of the EU.

The tender for this project, part of the fourth phase of the Cyclades interconnection, will most probably be officially announced within the first few days of January.

The fourth phase of the project will also include ensuing interconnections with the islands Folegandros, Milos and Serifos. Respective tenders for these projects are scheduled to be announced within the first half of 2021, energypress sources have informed.

The Naxos-Santorini grid interconnection, a project valued at 100 million euros (plus 24% VAT), is scheduled to be completed in 2023, while the links for the three other islands are planned for delivery in 2024.

The tender for the Naxos-Santorini grid link is scheduled to take place on January 29 as an online procedure through the company cosmoONE’s sourceONE digital auction system.

Bids submitted will be opened on the same day.

IPTO moves to develop links for private RES projects on islands

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Power grid operator IPTO has submitted a request to RAE, the Regulatory Authority for Energy, for a grid management rule revision that would enable the operator to take on the planning and development of new subsea interconnections for private RES projects whose licenses include cable installations.

The operator’s proposal includes a formula through which IPTO would assume the entire cost of subsea cable installations for private projects and recover these costs via network surcharges.

This formula mainly concerns bigger projects, over 250 MW, while the cable interconnections could, according to the operator’s proposal, remain independent or serve as capacity boosts for projects already included in IPTO’s ten-year development plan. They include the fourth stage of the Cyclades interconnection and links in the northern Aegean and the Dodecanese.

This is, after all, one of the advantages possessed by the operator, able to offer a complete plan, ensure equal treatment of investment plans, and utilize projects in a uniform way to achieve economies of scale and ultimately provide benefits for the electricity market as a whole.

In addition, IPTO, like other European operators, is seeking a key role in the development of offshore energy transmission infrastructure, promising  links for offshore wind farms, either floating or fixed.

JTF aid for 6 islands closing polluting local power stations

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The government plans to provide financial support to six Greek islands through the Just Transition Fund in order to tackle issues expected following planned withdrawals of local petrol-fueled power stations.

JTF support for these islands will be used to tackle sector unemployment, retrain personnel and also offer other support.

Further RES installations on islands, plus the completion of grid interconnection projects, will enable the closure of local petrol-fueled power stations in four parts of Crete – Heraklion, Lasithi, Hania, Rethymnos – plus Lesvos, Samos, Chios, Rhodes and Mykonos.

This step will help align Greece with clean-energy EU initiatives for European islands. The RES potential of Crete and the Aegean islands is extremely high.

Greece produces greenhouse gas emissions of 9.2 tons per capita, annually, compared to the EU average of 8.8 tons, according to an official JTF report.

This has been mainly attributed to Greece’s dependence on fossil fuels, still providing over 30 percent of overall electricity generation through production at the country’s two lignite mining centers of west Macedonia, in the country’s north, and Megalopoli, in the Peloponnese; and close to 10 percent through diesel-based generation on the islands.

The government has committed to closing high-polluting diesel-fueled power stations, the JTF report noted.

The production of every KWh on non-interconnected islands costs the Greek power utility PPC between 1.5 and 16 times more than the utility’s average generation cost nationwide, according to recent company data.

 

Competitive procedures for island hybrid stations, EC says

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The European Commission is demanding competitive procedures for the installation of energy storage units or hybrid stations on the Greek islands as a condition for the establishment and approval of a thorough support framework covering such investments, energypress sources have informed.

Energy ministry officials are currently engaged in talks with the European Commission on energy storage and hybrid station installations for the islands.

A universal pricing framework offering investors specific tariffs for all the islands will not be possible if the European Commission condition for competitive procedures is to prevail.

Greek officials are pushing for a universal pricing framework for non-interconnected networks, hybrid units with RES facilities, and energy storage units, on the grounds that these greatly contribute to grid sufficiency and security and can also offer major cost savings by eliminating the need for high-cost, high-polluting diesel-fueled power stations that operate on non-interconnected islands.

In particular, the energy ministry is seeking Brussels’ approval for a transitional framework to support hybrid units on islands with mature investment proposals and production licenses.

Speaking at an Economist conference yesterday, the energy ministry’s secretary-general Alexandra Sdoukou said a plan for such a support mechanism has been submitted to the European Commission.

“We hope to have a response from the European Commission by the end of the year so that we can soon complete the pricing framework and make possible the actualization of these projects,” Sdoukou noted.

Initiatives are also being taken for the development of offshore solar farms and hydrogen-run unit, she added.

“We will continue to shape policies that promote renewables and guarantee that we will be at the forefront of the European energy transition,” Sdoukou concluded.

IPTO in talks with investors, operators for Crete interconnection

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Investors – funds and major operators – are believed to be expressing strong interest for a minority stake in power grid operator IPTO’s subsidiary Ariadne Interconnection, the project developer of the Athens-Crete electricity grid interconnection.

Talks with parties interested in an Ariadne Interconnection stake have commenced, the power grid operator’s deputy chief Yiannis Margaris informed media during a press call for a presentation of the company’s annual financial results.

Prospective Ariadne shareholders must be financially robust, well acquainted with energy-sector matters, and focused on long-term investments, Margaris pointed out, setting terms and conditions.

The operator is focusing its search on big groups with portfolios carrying major investments, the deputy said.

IPTO’s administration is already engaged in talks with European operators such as Belgium’s Elia and French operator RTE, Margaris indicated.

IPTO expects to sign a bank loan agreement this month for an amount between 400 and 500 million euros to help finance the Athens-Crete interconnection. A sum stemming from Ariadne’s cash reserves worth 200 million euros and National Strategic Reference Framework (NSRF) funds of between 300 and 400 million euros are also expected to contribute.

The Athens-Crete link project is set to start and all the funds must be in place, IPTO officials said.

The possible involvement in Ariadne of investors will help achieve better borrowing terms, the officials added, while stressing the two procedures – search for a minority shareholder and capital – are moving ahead independently of each other.

Talks are also in progress with investors for island interconnections to facilitate RES projects, Margaris said.

IPTO island links over next 10 years to offer 2.6 GW capacity

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Power grid operator IPTO’s interconnections planned for the next decade will prepare the ground for new island-based RES projects representing a total capacity of 2.6 GW.

The operator’s ten-year national electricity grid development plan for 2021 to 2030, forwarded to RAE, the Regulatory Authority for Energy, for approval, offers major investment opportunities in the renewable energy sector.

Wind and solar energy farms operating on islands will be able to transmit their output to the mainland via underwater cables.

The IPTO ten-year plan offers a RES project installation capacity of 2,442 MW for Crete, the Cyclades, the Dodecanese and the northeast Aegean islands. This capacity represents potential investments estimated at 2.6 billion euros.

The completion of all four phases of the Cyclades interconnections, scheduled for the second half of 2024, will offer 332 MW for this region. Andros and Tinos will have a RES installation capacity of 72 MW, the capacity for Syros, Paros, Mykonos and Naxos will total 160 MW, while Santorini, Folegandros, Milos and Serifos will be offered a 100-MW installation capacity.

The completion of Crete’s small-scale mainland interconnection to the Peloponnese, scheduled for the second half this year, will offer a RES installation capacity of 160 MW. A further 600 MW will be added once the island’s major-scale interconnection to Athens is completed in 2023, when Crete’s wind and solar energy capacity total of new and existing RES projects is expected to reach 1,080 MW.

The RES expansion capacity on the Dodecanese and northeast Aegean islands will reach 1,030 MW, according to the IPTO ten-year plan. Samos, Chios and Lesvos will be offered a 360-MW share of this total; Limnos, Kos, Rhodes and Karpathos will get 570 MW, while Skyros will be offered the remaining 100 MW.

The grid interconnections in the island regions will be developed over three phases to be respectively completed in 2027, 2028 and 2029, according to the IPTO plan.

 

Cash-flow relief measures in the making for electricity suppliers

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Two cash-flow relief measures for electricity suppliers, one offering installment-based payments of regulated charges, the other, reduced guarantee costs for the right to operate on non-interconnected islands, are currently being prepared by the energy ministry.

Electricity suppliers collecting reduced customer payments will be able to service about 30 percent of their regulated charges through interest-free installments over a limited period of time.

Also, the level of guarantees provided by electricity suppliers to distribution network operator DEDDIE/HEDNO for the right to operate on 29 non-interconnected islands will be reduced for the six-month period running from April to September.

In other measures, the government yesterday announced a support framework for trade and distribution companies operating in the electricity and gas markets. Employees in these sectors will each be entitled to 800-euro allowances covering a 45-day period if their job contracts have been temporarily suspended. In addition, tax debt payments for these employees will be suspended for four months.

The establishment of a support fund for energy companies is also being examined.

Big RES projects on islands to be given IPTO cable access

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Investors behind major-scale RES project plans for non-interconnected islands and island complexes, previously granted licenses incorporating the installation of cable interconnections, will now be able to develop their renewable energy facilities and reserve capacities through interconnection infrastructure developed by power grid operator IPTO.

The energy ministry intends to attach a related amendment to a draft bill concerning environmental permits.

Licenses granted to investors in the past for major-scale wind energy farms on non-interconnected islands and island complexes expected investors to install related cable infrastructure for energy distribution.

Such licenses have been granted to the Copelouzos group and Terna for projects on Crete and Iberdrola Rokas for investment plans in the North Aegean.

The new legal framework being prepared by the ministry promises to offer investors greater flexibility as development of interconnection infrastructure will no longer be set as a condition for related RES project licenses.

Instead, investors will be able to reserve capacities through cable interconnections being developed by IPTO. However, investors will need to contribute to the cost of this infrastructure in accordance with their reserved share of the overall capacity.