North Macedonia

IPTO lists updated completion dates for grid links in 10-yr plan

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Power grid operator IPTO has revised its time frames for the completion of a series of international grid interconnections, as well that of a project to connect Crete and Athens, in a draft of its new ten-year development plan covering 2025 to 2034, forwarded for public consultation yesterday.

Revisions included in the plan’s draft include the addition of a further two years for the delivery of a second Greek-Turkish electrical grid interconnection, previously set for completion in 2029 but now pushed out to 2031.

The completion target for a second Greek-Albanian grid interconnection was changed to 2031 from 2030.

Delivery of an additional Greek-Italian grid interconnection has been set for 2031. IPTO’s previous development plan did not include a completion date for this project, which indicates significant progress was achieved during the intermediate period.

A project to interconnect the Greek, Cypriot and Israeli grids has been set a 2029 completion date for its Greece-Cyprus segment, an 898-km stretch, from 2027 in the previous plan. IPTO was placed at the helm of this project only last year.

All required studies have been completed for this project’s Greece-Cyprus segment with 657 million euros in support funds provided by the Connecting Europe Facility.

The completion date for an upgrade of the Greece-North Macedonia grid interconnection has remained unchanged at 2030.

The IPTO development plan’s international section also includes two new projects, a Greek-German grid link dubbed the Green Aegean Interconnector, and a Greek-Saudi Arabian grid link named the Saudi Greek Interconnector.

New meeting in March for west Balkans energy integration

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Next steps to be taken for the interconnection of electricity markets in the western Balkans are expected to be discussed during a new teleconference involving regulators from Greece, Albania, Kosovo and North Macedonia in March, energypress sources have informed.

The meeting is part of an initiative launched last November with the aim of interconnecting Balkan electricity markets through a process involving regulators, operators and energy exchanges from the respective countries.

In the lead-up to the March meeting, RAAEY, the Regulatory Authority for Waste, Energy and Water, has called a teleconference for next week with power grid operator IPTO and the Greek energy exchange so that a Greek position on the west Balkans grid interconnection initiative may be established.

According to well-informed sources, the timetable, at least for now, can only be roughly defined given the immaturity of markets concerned. However, there is considerable interest in seeing this market integration initiative through, while involvement of US authorities is crucial, the sources added.

The initiative is being guided by direct and indirect involvement of US authorities such as the US National Association of Regulatory Utility Commissioners (NARUC), the US Energy Association (USEA), research institute RTI International, and the US Agency for International Development (USAID).

The west Balkans energy integration process is expected to be based on a model adopted for Greece’s market coupling with Italy and Bulgaria.

 

 

 

 

Mytilineos given green light for CHP plant in North Macedonia

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The Mytilineos group will develop a cogeneration plant (CHP) in North Macedonia with 50 million euros in state support, in accordance with a legislative proposal submitted by the government in late January.

This investment qualifies as a strategic investment and, as a result, stands to benefit from the relevant legislation. It will also secure a guaranteed price for energy produced.

The heat and power plant will have an electrical capacity of 90-105 MW plus 135-150 MW of thermal energy. Its annual electricity production is expected to amount to roughly 1,150 GWh with corresponding thermal energy production reaching 275 GWh.

An agreement for the purchase of the energy produced is expected to be established within three months of the signature of the state aid agreement.

Big interest in Greece-North Macedonia gas pipeline tender

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A tender offering a contract for the construction of a gas pipeline linking the Greek and North Macedonian systems has attracted considerable interest, including companies from abroad and the neighboring country, energypress sources have informed. Interested parties had until yesterday to submit offers.

Officials expect work on the gas pipeline’s development to begin this coming spring, while the project’s delivery is anticipated within 2025.

The gas pipeline is planned to cover a total distance of 125 kilometers. Its Greek segment will stretch 57 kilometers, beginning from Nea Mesimvria in the country’s north, while the North Macedonian segment’s 68 kilometers will reach Negotino.

The pipeline’s initial capacity will be 1.5 billion cubic meters, annually. It will be built according to technical specifications enabling transportation of renewable gas, entirely.

Greek gas grid operator DESFA and its North Macedonian equivalent, Nomagas, signed an agreement for the project in September, 2023 as a follow-up to a bilateral agreement reached between the Greek and North Macedonian governments in March, 2021.

The European Investment Bank plans to extend funds worth 2.48 billion euros for the Greek-North Macedonian gas pipeline through the EU’s Western Balkans Investment Framework (WBIF).

 

North Macedonia universal supply tender a battle for EDS

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EDS, a subsidiary of Greek power utility PPC, appears set to face strong competition in a tender offering a contract for North Macedonia’s universal electricity supply.

At least five more bidders have expressed interest in the tender ahead of tomorrow’s bidding deadline, sources have informed.

EDS, strongly supported by parent company PPC, intends to submit a highly competitive offer that would greatly undercut an 11.5 percent profit margin maintained by North Macedonia’s current universal electricity supplier, Austrian company EVN. It remains to be seen if rival bidders will do likewise.

Bidders face stricter participation terms in this tender compared to the previous procedure, staged five years ago. These include a working capital requirement of 40 million euros, a condition that could trouble EDS, as noted by officials in the neighboring country.

EDS, in a company statement released just days ago, has denied requesting changes to the tender’s terms, noting it intends to participate with a highly competitive offer significantly reducing the existing contract’s profit margin to the benefit of end users.

PPC and construction firm Archirodon, the only bidders in a tender staged by the North Macedonian government for the construction and operation of a 333-MW Cebren hydropower plant at the Crna Reka river, in the country’s southwest, and operation of an existing 116-MW Tikves hydropower station, also at this river, were initially announced  winners, but the tender ended up being cancelled.

Alexandroupoli FSRU, arriving 1Q, to offer 45,000 MWh daily

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The Alexandroupoli FSRU, scheduled for launch at the country’s northeastern port in the first quarter, is planned to start operating by supplying roughly 45,000 MWh of natural gas into the Greek network daily, a major sufficiency boost for the domestic system.

The facility, set for launch by March 10, will initially offer an annual capacity of 1.5 bcm, or 27 percent of its annual capacity, to the Greek system. A further 4 bcm quantity will be supplied to the Bulgarian network via the IGB grid interconnection, and, by extension, Romania, North Macedonia, Serbia, and in any markets where traders that have signed contracts with Gastrade, the project’s consortium, have customers.

An initial LNG load, to be used for testing, is scheduled to reach the Alexandroupoli LNG on January 20. It will not stem from Russia as the project is designed to contribute to ending southeast Europe’s reliance on Russian gas.

The testing stage will entail filling a 28-kilometer gas pipeline, running mostly underwater, that connects the terminal with the Greek gas system, in order to check all systems and correct any minor issues so that the FSRU can be ready to operate commercially after six to seven weeks, or early March.

The FSRU, comprised of a floating storage unit with a capacity of 153,500 m3 and three gasification units, offering daily gasification capacity of approximately 22.5 million m3, is a project of national significance that reinforces Greece’s role as an energy gateway to the markets of the wider region.

 

North Macedonia gov’t holds back on hydropower plant deal

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The North Macedonian government’s apparent reluctance to complete an agreement with a consortium comprised of Greek power utility PPC and construction firm Archirodon for the development of the prospective Cebren hydropower plant, at the Crna Reka river, despite cabinet approval in September, has prompted various officials to suspect the neighboring country’s administration is seeking to put a brake on the agreement.

The North Macedonian government has been calling for additional terms, while, in most recent statements, Kaja Sukova, its environment and physical planning minister, suggested the consortium would be to blame if the agreement were not completed.

The consortium is raising objections about terms being discussed, while the deadline for completing the agreement has already been extended to mid-January, the minister noted.

The dispute concerns the ordering of the project’s concession contract and issuance of a water-usage permit. Archirodon wants the concession contract to precede the permit procedure, whereas the North Macedonian government is pushing for the opposite.

PPC and Archirodon submitted the only complete offer to a tender staged by the North Macedonian government for the construction and operation of the 333-MW Cebren hydropower plant and operation of an existing 116-MW Tikves hydropower station, also at the Crna Reka river, in the country’s southwest.

The Cebren hydropower plant, expected to offer annual electricity output of between 1,000 and 1,200 GWh, is planned to involve the neighboring country’s state-owned power producer ESM as a minority partner with a 33 percent stake. The project’s cost is estimated to reach one billion euro.

A total of 13 previous tenders held since 2006 for the Cebren hydropower plant have all proved fruitless. North Macedonia is entering an election year, increasing fears of further ambiguity regarding the project agreement’s prospects.

Gastrade Alexandroupoli FSRU anchors for testing, launch

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The Alexandroupoli FSRU, a floating natural gas liquefaction and storage unit to be installed at the country’s northeastern port of Alexandroupoli by Gastrade, a consortium established by the Copelouzos group for the project’s development and operation, has just entered the Thracian Sea and anchored after setting sail November 26 from Singapore’s Seatrium shipyard, where the unit was developed over a period of nearly ten months.

The FSRU’s arrival to its permanent anchorage marks the completion of a project of major importance for the national and local economies.

In the coming days, the FSRU will be moored through a twelve-point mooring system before being connected to a high-pressure subsea and onshore gas transmission pipeline, which, once operational, will deliver gas to the Greek gas network and, subsequently, consumers in Greece, Bulgaria, Romania, North Macedonia, Serbia, Moldova, Ukraine, Hungary and Slovakia.

The FSRU’s commercial launch is planned for the first quarter of 2024, once testing has been completed. The unit will offer a 5.5-bcm annual liquefaction capacity.

 

Greek-North Macedonian oil pipeline relaunch back on track

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A Greek-North Macedonian oil pipeline, out of use over the past decade, appears to be back on track for a reopening following such a step’s approval by the neighboring country’s regulatory authority.

The pipeline’s owner, Vardax, a subsidiary of Helleniq Energy, formerly named Hellenic Petroleum (ELPE), had submitted a request in November, 2022 for the pipeline to be put back into operation, but the pending issue had remained unresolved.

Helleniq Energy CEO Andreas Siamisiis revealed the news of the North Macedonian regulatory authority’s approval of his company’s request for the pipeline’s reopening in an interview with Greek daily Kathimerini.

The pipeline was developed in 2002 to link the Greek company’s Thessaloniki refineries with its OKTA refinery in North Macedonia.

In 2013, the Greek energy group decided to change the use of the pipeline for the transport of clean products. However, it has remained dormant until the present as a result of the delayed new license, despite the modification of infrastructure.

The pipeline is fully ready to operate, Siamisiis, the Helleniq Energy CEO, has stressed. A comprehensive inspection of the pipeline was recently completed, extending its operating ability to June, 2051.

Helleniq Energy intends to transport diesel fuel through the pipeline once it is reopened.

If reopened, the pipeline, whose current capacity measures 2.5 million tons, annually, promises to offer multiple benefits for both Greece and for the energy group.

Energy security and sufficiency in the wider Balkan region would be reinforced, while Greece’s role as an important regional energy hub would be enhanced, the Helleniq Energy CEO pointed out.

 

Balkan potential highlighted by IPTO’s interest in MEPSO

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Greek power grid operator IPTO’s interest, for some time now, to acquire North Macedonia’s grid operator MEPSO, either through a strategic agreement or a share capital increase, points to the existence of opportunities for energy infrastructure upgrades in the neighboring country as well as the growing role to be played by electricity networks and corridors in the wider region.

As the energy transition progresses, electricity networks and corridors will no longer merely serve as electricity transmission lines, but promise to gradually replace oil and gas pipelines.

Greece, at present, remains sorely absent from the wider Balkan energy-sector activity. IPTO has yet to make any big moves beyond the country’s frontiers.

Though the western Balkans are currently experiencing a green-energy boom with RES investment growth having reached double digits in some countries, regional networks are outdated and insufficient to support this robust investment interest.

Though it is vitally important for Greece to assert itself as an influential energy-sector player in the Balkans, the flow of energy from the region towards central Europe is currently being controlled by Italy.

Italy’s influence, on energy matters, over the Balkans was expanded in recent years with Montenegro as a base and Italian power grid operator in a leading role, as highlighted by its acquisition of a 22 percent stake in Montenegrin power grid operator CGES.

Identifying the pivotal energy role of the Balkans early on, Italy took a strategic decision for the development of a first route linking the western Balkans and Europe in the form of a 445-km line – 423 km of it as an underwater Adriatic Sea crossing – from Pescara, on Italy’s east coast, to Kotor, on Montenegro’s Adriatic coast.

The small Balkan country has since become a bridge of energy exchange between eastern and western Europe as this Adriatic link has interconnected Italy’s network with those of Bosnia and Herzegovina, Serbia, Kosovo, Albania, and, by extension, Bulgarian and Romania.

Italian power grid operator Terna is now examining the prospect of boosting this line’s transmission capacity from 600 MW to 1,200 MW. Giuseppina Di Foggia, CEO at Terna, recently held talks in Rome with Montenegro’s new president, Jakov Milatovic, about this project.

 

DESFA gas pipeline projects in north progressing as planned

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Major infrastructure projects being developed by gas grid operator DESFA as part of links with North Macedonia are progressing as scheduled in the operator’s ten-year development plan covering 2023 to 2032, energypress sources have informed.

A gas pipeline running from Nea Mesimvria in the country’s north to Gevgelija in North Macedonia’s southeast, as well as a metering station concerning the grid interconnection linking the Greek system with that of the neighboring country, North Macedonia, are progressing as planned and expected to be launched in 2025, the sources noted.

Furthermore, a high-pressure gas pipeline covering Greece’s west Macedonia region is expected to be operational within 2024, they added.

These projects, being developed as part of the Greek State’s decarbonization plan, comprise gas pipelines covering a total distance of 157 kilometers.

IPTO eyeing North Macedonian operator, a Balkan gateway

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Greek power grid operator IPTO is eyeing the Balkan market to reinforce its standing, and, in this context, endeavoring to acquire a stake in MEPSO, North Macedonia’s operator.

If an agreement does go ahead, a prospect that requires the active involvement of the Greek government, then the neighboring country could serve as a gateway for IPTO’s entry into the wider western Balkan region, to take on network upgrade and interconnection projects, definitely needed.

IPTO has already submitted an offer for a stake in MEPSO, either through a strategic agreement or a share capital increase, North Macedonian sources informed.

IPTO executives have, for quite some time now, been engaged in talks with North Macedonian government officials, MEPSO and the country’s regulatory authority covering energy for a stake in the operator, the sources added.

Besides strengthening IPTO’s standing, such a move – which would complement Greek power utility PPC’s takeover agreement for Italian group ENEL’s Romanian subsidiary ENEL Romania – promises to also bolster Greece’s geopolitical role in the Balkan region.

MEPSO also stands to benefit from an agreement with IPTO as the North Macedonian operator could make the most of the Greek operator’s stronger credit rating and gain access to EU funds for network upgrades.

 

RES penetration to be aided by 15-minute trading products

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The introduction of 15-minute continuous trading products in the day-ahead market, preparations for which are in full swing, according to energypress sources, would reduce balancing costs and also offer better terms for the renewable sector’s penetration of the energy mix.

However, the transition to 15-minute continuous trading products in the day-ahead market, planned to take place simultaneously across Europe in 2025, promises to be a demanding task for all parties involved.

The Greek Energy Exchange, as a key player in the domestic implementation of the project, has already begun relevant preparations to adapt and improve all its systems in order to be able to support related transactions.

Power grid operator IPTO will need to take similar action for its infrastructure, and at grid interconnections, to ensure transactions flow smoothly amid conditions in which 15-minute products will play dominant roles in the day-ahead and intraday markets.

Indeed, Greece’s unique position with both coupled (Bulgaria, Italy) and non-coupled (Albania, North Macedonia, Turkey) neighboring electricity markets presents a challenge that requires special provisions.

Special attention will be needed so that 15-minute continuous trading products can also apply for non-coupled markets, otherwise the Greek market will be obliged to maintain 60-minute products, as is the case at present, in order to trade electricity in the day-ahead market with non-coupled markets.

 

 

 

PPC-Archirodon’s Cebren hydropower project given gov’t approval

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The North Macedonian government’s cabinet has approved the prospective Cebren hydropower plant, at the Crna Reka river, a project awarded to Greek power utility PPC and construction firm Archirodon, in partnership for its development.

PPC and Archirodon submitted the only complete offer to a tender staged by the North Macedonian government’s environment ministry for the construction and operation of the 333-MW Cebren hydropower plant and operation of an existing 116-MW Tikves hydropower station, also at the Crna Reka river, in the country’s southwest.

The Cebren hydropower plant, planned to offer annual electricity output of between 1,000 and 1,200 GWh, will involve the neighboring country’s state-owned power producer ESM as a minority partner with a 33 percent stake. The project’s cost is estimated to reach one billion euro.

The PPC-Archirodon consortium must establish an agreement with ESM within three months, before beginning work on the project, expected to take seven years. The consortium also needs to complete a relevant study and secure necessary permits.

A total of 13 previous tenders held since 2006 for the Cebren hydropower plant had all proved fruitless.

Alexandroupoli FSRU on track for early-2024 launch

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Development of the Alexandroupoli FSRU at the country’s northeastern port is progressing steadily and set for an on-schedule launch by the end of January, 2024, energypress sources have informed.

Tanker conversion work being conducted for the FSRU at Singapore’s Keppel Shipyard was 87.1 percent ready at the end of August, meaning all basic equipment, including burners and gasifiers, has been installed, the sources added.

Representatives of Gastrade, the consortium established by the Copelouzos group for the development and operation of the Alexandroupoli FSRU, visited the Keppel Shipyard just days ago.  The consortium’s chief executive, Kostis Sifneos, headed the visiting group.

The consortium’s members – the Copelouzos group’s Elmina Copelouzou, Gaslog Cyprus Investments Ltd, DEPA Commercial, Bulgartransgaz and Greek gas grid operator DESFA, all holding 20 percent shares – plan to soon hold a meeting to discuss the project’s steps leading to its launch, the sources added.

The FSRU vessel is expected to be ready to set sail for Alexandroupoli in mid-November, before reaching its destination in early December.

The Alexandroupoli FSRU, to offer a 153,500-m3 LNG capacity, will be connected to Greece’s gas network via a 28-km pipeline, through which gasified LNG will be distributed to the domestic market, Bulgaria, Romania, Serbia, North Macedonia, Hungary, Moldova and Ukraine.

The project will serve as a new energy gateway promising to play a key role in the energy security and independence of Greece as well as central and southeast Europe.

DESFA tender for gas pipeline to North Macedonia imminent

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Greek gas grid operator DESFA is set to announce a tender offering an EPC contract for a natural gas pipeline linking Greece and North Macedonia within the next few days, no later than the end of this month, energypress sources have informed.

DESFA aims to complete the tender by the end of September so that it may reach a final investment decision before the year is out, the sources noted.

In addition, the operator plans for work on the project to begin mid-way through next year and be completed in the second half of 2025, the sources added.

Corinth Pipeworks has been appointed provisional contractor for the project’s pipes. A tender for their procurement was held in May.

The gas pipeline will cover a total distance of 125 kilometers. Its Greek segment will stretch 57 kilometers, beginning from Nea Mesimvria in the country’s north, while the North Macedonian segment’s 68 kilometers will reach Negotino.

DESFA has also taken on the project management role for the pipeline’s North Macedonian segment, after emerging victorious from a tender staged by the neighboring country’s state-run NOMA Gas company.

Greek gas hub potential now realistic, DESFA actions show

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Greece, for the first time, has shown true potential to soon establish itself as a regional gas hub and gateway for southeast Europe, judging by the results of gas grid operator DESFA’s recent auctions offering grid capacity reservations, as well as the operator’s non-binding market test for a prospective expansion of the country’s gas transmission network.

DESFA has prepared an extensive ten-year development plan that is fully aligned with the new market conditions taking shape, as well as with the company’s efforts to achieve energy-transition objectives, the operator’s administration has underlined at a news conference.

Greek gas exports increased by 15.09 percent in the first half of 2023, compared to the equivalent period last year, according to DESFA data presented at the news conference.

Also, DESFA’s non-binding market test for a prospective expansion of the country’s gas transmission network drew the participation of 27 companies, 17 of these from abroad, primarily central and southeast Europe, such as Bulgaria, Romania, Austria, Hungary, Slovakia, Germany, Cyprus, North Macedonia, as well as the USA.

Forty percent of the market test’s participants have never before been active in Greece’s natural gas market, DESFA announced.

Participants expressed interest for all the country’s gas grid entry points (Sidirokastro, Nea Mesimvria, Kipoi and Agia Triada), as well as for connections to Greece’s prospective FSRUs (Gastrade, Argo, Dioryga Gas, Elpedison).

Highlighting the Greek natural gas market’s export orientation, exports to Bulgaria totaled approximately 2.4 bcm in 2022, roughly half of Greece’s annual gas consumption last year, 4.9 bcm.

DESFA market test for network expansion offers positive signs

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A market test staged by gas grid operator DESFA for a prospective expansion of the country’s gas transmission network has delivered positive first signs, attracting, according to energypress sources, a satisfactory level of participants for its first round of non-binding bids.

The market test is being conducted with the aim of shaping a list of projects to cover existing and future needs of gas network users, as the system’s capacity at present is well below levels required by current demand.

The process will be used by DESFA to gauge the level of interest of international and domestic players for the development of projects facilitating greater gas transmission within and beyond Greece.

The first round of the market test ends tomorrow. Barring unexpected developments, an extension is not on the cards.

DESFA will then assess first-round bids submitted before launching a second round in September, a binding stage expected to last until the end of spring in 2024.

Market trends have indicated that, in the forthcoming years, the country’s gas transmission system will need to supply new residential areas (western Macedonia in the north as well as Greece’s west) and also serve new interconnections with neighboring countries (North Macedonia, Bulgaria and, via TAP, Albania and Italy.

RAE, IPTO pushing ahead to integrate traders into intraday market

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Intraday electricity market participation by traders engaged in transactions concerning the country and non-coupled neighbors – Albania, Turkey and North Macedonia – a complex matter that has remained pending for years, is now on track to be approved by RAE, the Regulatory Authority for Energy, and power grid operator IPTO.

One of the basic steps needed is the establishment of Daily Intraday Capacity Auctions, a step requiring the approval of all respective operators involved. According to sources, all operators involved have expressed willingness to proceed, but the overall process will take time to complete.

IPTO has already declared its readiness, from a technical perspective, to implement these auctions, which, however, is not the case for other operators as they are active in markets still at early stages of development. These operators still need to make adjustments in order to accommodate Daily Intraday Capacity Auctions into their systems.

IPTO has been actively involved, underlining, to neighboring operators, its availability to contribute to their efforts.

The addition of traders to the intraday market promises to boost its liquidity as more participants become involved. This development will greatly improve the ability of market players to correct their positions and, as a result of this greater flexibility, limit their balancing market costs.

Also, the more precise activity of market players will create conditions limiting the volumes of electricity needed in the balancing market.

Greek-North Macedonian gas pipeline decisions imminent

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Greek gas grid operator DESFA and its North Macedonian counterpart NOMA Gas are believed to be nearing respective investment decisions for the construction of a natural gas pipeline linking the neighboring countries.

Company officials have been meeting more frequently of late, their most recent session held in Skopje for talks on how to better coordinate funding efforts for the gas pipeline project and to move ahead with tenders concerning its procurement and construction.

DESFA, sources informed, is expected to reach an investment decision by the end of summer, or early September, for the Greek segment of the gas pipeline project, a 55-km stretch starting from Nea Mesimvria in the country’s north.

The Greek gas grid operator is also preparing for tenders concerning pipeline procurement and the project’s construction.

This gas pipeline project promises to diversify the gas supply sources of North Macedonia, currently entirely dependent on its Bulgarian interconnection, experiencing congestion. It will also offer new gas supply routes to the western Balkans.

Greek-US energy agenda focused on 3 projects

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Three energy infrastructure projects, the Alexandroupoli FSRU in Greece’s northeast, an oil pipeline running from the Alexandroupoli port to Burgas, on Bulgaria’s Black Sea coast, and a Greek-Egyptian grid interconnection, were focal points in talks yesterday between Greek and American officials, as part of US Secretary of State Anthony Blinken’s official visit to Athens.

The two sides, meeting for the 4th round of a Greece-US Strategic Dialogue, appeared determined to push ahead with the three projects, propelled by Russia’s war on Ukraine, which has prompted Europe to move in a direction ending its reliance on Russian fossil fuels.

It was agreed that Athens and investors need to accelerate efforts for the aforementioned projects to further marginalize Russian energy supply to Europe.

Besides offering full support for the three energy infrastructure projects, US officials also expressed satisfaction about the recent launch of the Greek-Bulgarian IGB gas pipeline as well as ongoing plans for a pipeline to run from Greece to North Macedonia.

However, the US officials kept a distance from the discovery of gas deposits by Israel, Cyprus and Egypt in the east Mediterranean, as well as the East Med gas pipeline plan – which would connect Israel, Cyprus and Greece before crossing to Italy visa the Poseidon pipeline – presumably to avoid upsetting Turkey, despite problems that have weighed down US-Turkish ties of late.

 

Greek-Italian grid link repair work subduing power prices

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The Greek-Italian grid interconnection’s temporary disruption for repair work is offering partial protection against wholesale electricity price increases in Greece.

The temporary-closure period for the grid interconnection, which has been sidelined towards both directions since August 19, has just been extended until September 3 following a request made by Italy’s power grid operator Terna, according to an announcement made by IPTO, Greece’s power grid operator.

Last Friday and Saturday, the wholesale electricity price was 300 euros per MWh higher in Italy compared to Greece.

Under normal conditions, price differences between neighboring markets prompts electricity export activity towards the lower-priced country.

Greek electricity exports were considerable in July, reaching 500 GWh, data provided by IPTO showed. Of this total, 351 GWh was exported to Italy, 253 GWh to Albania, 184 GWh to North Macedonia and 90 GWh to Bulgaria.

Electricity export figures will be subdued in August as a result of the disruption of the Greek-Italian grid interconnection. The link has been closed down for repairs on numerous occasions in recent years.

 

 

Energy ministry officials in Sofia for EU’s first regional energy platform

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A first regional taskforce for cooperation between EU member states on energy matters, as part of the EU’s Energy Purchase Platform, is scheduled to meet in Sofia tomorrow, as announced earlier this week by European Commissioner for Energy Kadri Simson.

The regional taskforce will concentrate on the year ahead and provide specific regional expertise and know-how to develop and implement the REPowerEU action plan to reduce dependency on Russian fossil fuels, fill storage ahead of next winter and further accelerate the decarbonization of the energy sector.

This meeting comes following Russia’s recent decision to disrupt natural gas supply to Bulgaria as well as Poland.

The Bulgarian government has also organized a coinciding meeting of regional ministers. Greece’s energy minister Kostas Skrekas (photo) and the ministry’s secretary-general Alexandra Sdoukou will participate.

The two Greek government officials will be visiting Sofia on the heels of yesterday’s official launch of work on the Alexandroupoli FSRU, an LNG terminal project intended to diversify the energy sources of Greece and the wider region. Yesterday’s official ceremony was attended by heads of state representing Greece, Bulgaria, North Macedonia and Serbia.

During their visit to Sofia, the Greek energy ministry’s two officials are also expected to take part in a bilateral meeting with Bulgarian energy minister Alexander Nikolov.

This session’s agenda will examine the progress of the IGB gas pipeline, set to be completed and launched in July, and an electricity grid interconnection upgrade between the two countries, whose completion is expected by the end of this year.

The IGB gas pipeline, promising to contribute to the EU’s effort for drastically reduced dependency on Russian energy sources, will offer a second interconnection between Greece and Bulgaria, in addition to the nearby Sidirokastro link.

 

 

Alexandroupoli FSRU development launch today, pivotal project

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Development of the Alexandroupoli FSRU in Greece’s northeast, a project promising to boost energy security by broadening energy source diversification for Greece and the wider Balkan region, is scheduled to officially commence today.

The prime ministers of Greece and Bulgaria, as well as Serbia’s president, will attend today’s official ceremony. The leaders will highlight the need for energy source diversification in the Balkans and reduced reliance on Russian natural gas.

The Alexandroupoli FSRU promises to establish Greece as a gas hub for transportation of LNG into the EU.

Natural gas consumption in southeast Europe totals between 10 and 11 bcm annually, half this amount provided by Russia.

The Alexandroupoli FSRU, expected to be ready to operate by the end of 2023, is planned to offer a capacity of approximately 5.5 bcm, greatly diversifying gas supply to southeast Europe.

The project is budgeted at 380 million euros, of which 166.7 million euros will be provided through the National Strategic Reference Framework (NSRF).

The Alexandroupoli FSRU will be linked with Greece’s gas grid via a 28-km pipeline, enabling gas supply to Greece, Bulgaria and the wider region, including Romania, Serbia, North Macedonia, Moldavia and Ukraine.

 

Gastrade decides on additional Alexandroupoli FSRU by 2025

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Gastrade, the consortium established by the Copelouzos group for the development and operation of the Alexandroupoli FSRU, a floating LNG terminal planned for Greece’s northeast, has reached a decision to also install an additional FSRU unit at the location, expected to be completed in 2025, as a follow-up to the first terminal, set for completion in 2023.

The consortium’s decision for an additional FSRU in Alexandroupoli had been in the making from as far back as last summer, when the energy crisis was at its early stages, but was accelerated by the long-term turmoil now seen in relations between the west and Russia following the latter’s invasion of Ukraine last week.

Russia’s invasion of Ukraine has further highlighted the need for Europe to reduce its dependence on Russian gas as soon as possible. A completely new reality now appears to be in the making.

Southeastern Europe’s gas needs to result from Europe’s reduced energy dependence on Russia, through strategic diversification, has increased the prospect of Greece’s northeast becoming an energy hub that would facilitate gas exports in all directions, including to Ukraine.

The Gastrade consortium is comprised of five partners, founding member Elmina Copelouzos of the Copelouzos group, Gaslog Cyprus Investments Ltd, DEPA Commercial, Bulgartransgaz, and DESFA, Greece’s gas grid operator, each holding 20 percent stakes.

All five partners have agreed to offer 2 percent each so that North Macedonia can enter the consortium with a 10 percent stake.

DESFA market test for North Macedonia gas pipeline link in March

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A DESFA gas grid operator market test for a gas pipeline project to link the Greek and North Macedonian systems is set to begin following the launch, by the Regulatory Authority for Energy (RAE), of a related public consultation procedure, ending February 7, the authority has announced.

The project’s market test will follow and is expected to be launched by March, the latest.

Towards the end of 2021, DESFA signed a 25 million-euro loan agreement with the European Investment Bank for the project’s Greek segment. This loan had been approved by the EIB more than a year earlier, in August, 2020.

At the time its approval was announced, EIB noted the project promises to further optimize Greece’s gas grid and also promote supply security and competition in the neighboring country through gas source and route diversification.

The project’s Greek segment, budgeted at 67 million euros, is planned to run from Nea Mesimvria, on the western outskirts of Thessaloniki, to the Evzoni area on the northern border.

Late in December, the EIB also approved a 28.9 million-euro loan agreement for the project’s North Macedonian segment. An agreement for this loan is expected to be signed within the next few weeks.

The EIB has also extended a 12.4 million-euro loan to North Macedonia from the Western Balkans Investment Framework (WBIF) for technical support and development of the project.

The gas pipeline, whose overall cost is estimated at 110 million euros, is planned to cover a total of 123 kilometers.

 

 

ELPE upbeat on relaunch of Thessaloniki-Skopje oil pipeline

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Hellenic Petroleum ELPE has acknowledged the governments of Greece and North Macedonia are working intensely for the reopening of an oil pipeline linking the petroleum group’s Thessaloniki refinery with its Okta subsidiary refinery in the neighboring country’s capital, Skopje, estimating the pipeline will reopen in the first quarter of 2022.

The pipeline has remained closed since 2016. ELPE has already proceeded with necessary maintenance work to protect the pipeline from internal corrosion and ensure it will be ready to operate once administrative and bureaucratic procedures have been completed.

A report published by ELPET Valkaniki, a fully owned ELPE subsidiary for Balkan markets, noted that OKTA stopped processing crude oil early in 2013 for business reasons after deciding to operate commercially with imports of finished products, a move that kept the pipeline inactive.

 

North Macedonia hydropower plant offers in September, PPC-Archirodon set

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Power utility PPC and energy and construction firm Archirodon, in a partnership for North Macedonia’s prospective Cebren hydropower plant, at the Crna Reka river, face a mid-September deadline for binding bids.

The neighboring country’s state-owned power producer ESM, staging the tender, aims to have announced a preferred bidder by the end of the year.

The Cebren facility, planned to offer a capacity of between 333 and 458 MW and annual production of between 1,000 and 1,200 GWh, is expected to cost approximately 600 million euros.

The project is planned to be developed through a Public Private Partnership (PPP) with state-owned power producer ESM.

PPC and Archirodon are among nine of ten initial bidders who have qualified for the competition’s final round. The others are: ENKA-COLIN (Turkey); EDF (France); Cobra-Cobra Hidraulika (Spain); EVN-Verbund (Austria); Webuild SPA Italia-Salini (Italy); Gezhouba Group China (China); Power Construction Corporation of China (China); and Ozaltin-Yapi Merkezi (Turkey).

DESFA: NER North Macedonia pipeline agreement, market test next month

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Two further important steps in the lead-up to the construction of a natural gas pipeline linking the Greek and North Macedonian grids are expected to be made in September.

DESFA, Greece’s gas grid operator, and North Macedonia’s energy sources company NER are expected to sign an agreement next month as a follow-up to an agreement signed a month ago by the energy ministers of the two countries in Lagonisi, east of Athens.

The latest agreement will stipulate technical issues, as well as guarantees, concerning the new pipeline, paving the way for tenders concerning the project’s development.

In addition, also in September, DESFA and NER also plan to stage a market test that will determine the commercial feasibility of the project. The two sides want to ensure the existence of a sufficient number of buyers for gas quantities planned to be transported through the pipeline.

The Greek section of the gas pipeline, budgeted at 51.4 million euros, is planned to stretch 54 kilometers. The North Macedonian section will cover a 100-km distance.

A September 13 registration deadline has been set for a tender concerning the procurement of steel pipelines for the project. Also, a draft of the tender concerning the project’s construction has been forwarded for public consultation until August 16.

 

Damco Energy CCGT boost to 840 MW approved by RAE

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A plan by Damco Energy, a Copelouzos group subsidiary, to increase the capacity of its prospective natural gas-fired power station in Alexandroupoli, northeastern Greece, from 662 MW to 840 MW has been approved by RAE, the Regulatory Authority for Energy.

The energy company now needs to make an investment decision, expected within the summer, before work on the project commences, sources informed. Its licensing procedure has been completed.

According to the sources, ESM, North Macedonia’s state electricity company, set to acquire a 25 percent in the Alexandroupoli natural gas-fired power station, is now at the final of its preparations and is currently performing due diligence.

Damco Energy is one of a number of companies that have not only decided to develop natural gas-fired power stations but also to boost capacities of their respective projects to over 800 MW.

Mytilineos was the first to do so with its plan for an 826-MW combined cycle gas turbine (CCGT unit) in Agios Nikolaos, Viotia, northwest of Athens, a project already being developed.

Following suit, Elpedison upgraded a licensed natural gas-fired power station plan in Thessaloniki to 826 MW, while, just weeks ago, GEK Terna and Motor Oil also announced an upgrade for their natural gas-fired power station in Komotini, northeastern Greece, a joint venture, to 877 MW.

Power utility PPC has also announced a plan to convert its new lignite-fired power station, Ptolemaida V, to a natural gas unit, planned to ultimately offer a capacity of over 1,000 MW by 2025.

The prospective natural gas-fired power stations, totaling 4.3 GW, are planned to fill the capacity gap that will be left by PPC’s withdrawal of lignite-fired power stations, exiting as part of the country’s decarbonization effort.

These new gas-fired units are also expected to export electricity to Balkan countries through grid interconnections with neighboring markets.