Banks may also join EDEYEP’s SPV for offshore wind farms

A special purpose vehicle being prepared by the energy ministry and authorities to oversee the development of offshore wind farms in Greece may include a banking group as a partner alongside EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, and power grid operator IPTO.

Banks could play an institutional role in the SPV to be established for what is considered a high-risk domain, whereas, on the contrary, individual investors would be less likely to commit capital to ventures entailing increased risk, officials have noted.

The energy ministry and EDEYEP’s leadership are currently engaged in talks for final decisions on the SPV’s line-up ahead of a related legislative revision, for the SPV, expected to be submitted to Parliament towards the end of March.

The SPV will be headed by EDEYEP so that the company may organize wind and deep-sea studies at marine areas marked out for a first wave of offshore wind farms.

Panagiotis Ladakakos, President of ELETAEN, the Greek Wind Energy Association, has pointed out a series of concerns that will need to be addressed by authorities in the lead-up to the development of the offshore wind farms sector in Greece, including shaping an appropriate structure for upcoming auctions; ensuring support for EDEYEP, so that the company may fulfil its role; and remaining fully aware of positions maintained by local communities.

The ELETEAN president raised these points at an offshore wind farms event staged by RAAEY, the Regulatory Authority for Waste, Energy and Water, as part of Renewable Energy Tech, the main event held by energypress.

‘Elounda offshore wind farm limitation plan in progress’

A legislative revision intended to minimize the perceived visual disturbance of offshore wind farms planned off Elounda, northeastern Crete, following strong local reaction, is being worked on, energy minister Thodoris Skylakakis has told Parliament.

The government has decided to reduce the size of the Elounda marine area that would host offshore wind farms to a plot capable of hosting units with a maximum capacity of 400 MW, 57 percent below the original plan’s capacity.

Elounda is one of ten areas included in an initial 2-GW plan for offshore wind farm development around Greece.

Just two or three offshore locations, primarily Elounda, met resistance from local communities, while 95 percent of areas proposed have not provoked any reaction, the minister informed.

Greece’s offshore wind farm development plan is of major importance to the national economy as the country possesses the greatest wind-energy potential in the eastern Mediterranean, Skylakakis supported.

Elounda offers excellent wind-energy potential, but concerns over visual disturbance have resulted in a need to revise the area’s development plan, Skylakakis noted.

“Cases of visual disturbance are difficult as any activity can result in disturbance. We need to keep in mind that, in order to have renewables, some disturbance to the overall setting is inevitable. There is no part of this country without a beautiful setting,” the minister stressed.

He went on to note: “There is a fundamental misunderstanding. Energy production is not for [the benefit of] producers, but for consumers. When it comes to energy matters, we tend to think that production is for producers to have profitable investments. In reality, it is to achieve lower energy prices.”

 

 

Hydrocarbons model adopted for offshore wind farms

The government plans to base its offshore wind farms development strategy on a model successfully used in the hydrocarbons sector. Seismic surveys conducted by Norwegian offshore survey company PGS, a legal framework and other useful details were put into a data room for interested parties with letters of guarantee to examine.

A special purpose vehicle to represent EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, and power grid operator IPTO, for commissioning wind and deep-sea studies at marine areas to host a first wave of 1.9-GW in offshore wind farms will be established as soon as a related legislative revision drafted by the energy ministry is ratified.

The SPV, which should be ready to operate towards the end of March, will then announce a tender for these wind and deep-sea studies, expected to require two years to be completed.

Swift action will be needed so that 1.9 GW in offshore wind farms are under development by the end of the decade, as noted in the National Energy and Climate Plan for 2030.

EDEYEP is already scouring the European and international markets for companies qualified to perform the wind and deep-sea studies, a difficult task as the challenges of exceptionally deep waters will need to be overcome. Few companies are believed to possess the experience to take on these studies.

 

Many energy-sector provisions in urban planning multi-bill

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

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

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

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

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

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

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

 

 

Reduced 400-MW proposed for Elounda offshore wind farms

The government has responded to strong local reaction in Crete against the country’s offshore windfarm development plan off Elounda, northeastern Crete, by proposing a smaller area that would host units with a maximum capacity of 400 MW, 57 percent less than the original plan’s capacity; remove a section of the plot facing the islet Spinalonga, in the Gulf of Elounda; and ensure visual disturbances for hotels are eliminated.

These proposed revisions, concerning the Elounda offshore area, one of ten areas included in an initial 2-GW plan for offshore wind farm development around Greece, were tabled by energy minister Thodoris Skylakakis at a meeting Friday involving representatives of EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, local officials, including the mayors of Agios Nikolaos and Sitia, as well as regional hoteliers.

It remains to be seen if the energy ministry’s proposed revisions will be enough to ease the concerns of local officials, hoteliers and residents and quell any further reaction.

The energy minister has lined up an imminent follow-up meeting with mayors and regional authorities. He is expected to offer a more extensive briefing on the potential benefits of offshore wind farm development to local communities at this follow-up meeting.

 

Visual disturbance solution sought for Crete wind farms

EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, is seeking a technical solution that would minimize the visual disturbance of offshore wind farms off Elounda, northeastern Crete, following strong local reaction against the development of offshore wind farms.

The energy ministry is determined to push ahead with the National Offshore Wind Farm Development Plan as 90 percent of locations proposed have not raised objections. A total of ten areas have been included in an initial plan for offshore wind farm development.

The energy ministry is well aware of the fact that if it starts dropping areas it would be sending a wrong message to the market and investors, who, for some time now, have been keeping a close watch on developments.

The energy ministry intends to soon – possibly this week – engage in talks with local communities and especially in Crete, to make clear that revisions to plans will only be made if objections are justifiable.

Crete only change in offshore wind farm development plan

A decision to partially relocate an offshore plot marked out for development of offshore wind farms off Elounda in Crete is expected to be confirmed at a meeting today between the energy ministry’s leadership and top officials at EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, following strong local reaction, energypress sources have informed.

Otherwise, the National Offshore Wind Farm Development Plan is expected to proceed without changes.

Local officials in Elounda had lodged complaints to the energy ministry and to a public consultation procedure noting the plan for offshore wind farms off Elounda could impact a number of sectors, including tourism.

A total of ten offshore plots have been included in the country’s offshore wind farm plan, whose Strategic Environmental Impact Assessment is currently being examined.

 

No major changes expected for offshore wind farm plan

The National Offshore Wind Farm Development Plan appears most likely to proceed without significant changes in terms of locations that will host offshore wind farms, but the sizes of proposed marine areas could be revised.

Ten areas proposed in an initial plan are unlikely to be changed, though some revisions could be made to the layouts of offshore wind farms, including smaller plot sizes, especially in Crete, where reaction against the initial plan has been particularly strong.

The energy ministry’s leadership has scheduled a meeting tomorrow with top officials from EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, to work on finalizing the National Offshore Wind Farm Development Plan.

The two sides will also strive to adopt a finalized text for the Strategic Environmental Impact Assessment’s terms to be applied in the emerging offshore wind farm sector. A series of comments forwarded during public consultation on this text will be taken into account.

Officials will strive to have finalized the sector’s Strategic Environmental Impact Assessment details before the end of February, though its finalization within March is considered likeliest.

 

 

Main offshore wind farms plan favored over pilot projects

The energy ministry is expected to abandon plans for floating offshore wind turbines as part of a wider pilot project, now seen as a time-consuming effort, and instead focus on an existing national plan for development of offshore wind farms with a capacity of 1.9 GW in Greek sea territory.

As previously reported, the energy ministry was considering a second lot of offshore wind pilot projects with floating wind turbines, the aim being to support small-scale supply ahead of the development of larger projects meeting 2030 targets.

This portfolio now in question represents floating offshore wind turbines with a capacity of roughly 400 MW which, combined with two fixed-base pilot projects at an area off Alexandroupoli, northeastern Greece, make up a total portfolio of offshore wind pilot projects measuring 1,000 MW. The pilot project for floating offshore wind turbines had been linked to a plan for partial financing through the Island Decarbonization Fund.

The energy ministry plans to submit a proposal to the European Commission and the European Investment Bank (EIB) to secure investment support for the offshore wind farms development plan through the Island Decarbonization Fund.

Offshore farms to face stricter follow-up environmental terms

Local reaction by local communities and officials dreading the possible impact of offshore wind farms on local economies has been widespread amid ongoing procedures for approval of an initial strategic environmental impact assessment of the country’s offshore wind farm development plan.

In response, the energy ministry has determined it needs to clarify, to local communities and officials, that candidate areas will face stricter environmental terms during second-round assessments.

The current strategic environmental impact assessment concerns 25 candidate areas being considered to serve as plots for offshore wind farm installations in the short term, by 2030 to 2032, and further ahead.

Though the initial strategic environmental impact assessment includes general environmental guidelines for candidate areas, individual assessments to follow will include more detailed and extensive terms that are expected to narrow down the final list.

Clear-cut terms for project development are also in the interests of investors, wanting maximum assurances against any possible legal challenges.

The ministry also plans to step up action underlining the benefits promised to local communities by offshore wind farms, the main attribute being their large energy-generating potential.

Also, energy ministry Thodoris Skylakakis has indicated a new framework will be established for offshore wind farms to offer local communities greatly improved benefits compared to those offered for onshore wind farm installations.

Enhanced benefits are expected to contribute to shaping more favorable attitudes by local communities towards planned offshore wind farm investments.

 

Offshore wind farm plan proving trickier than expected

Implementation of the national offshore wind farm development program is proving to be trickier than expected, according to competent market sources, as local opposition and a number of constraints have raised questions over the feasibility of the initial plan.

Sites designated to host offshore wind farms are sufficient for the plan’s first wave of facilities until 2030, but the spatial sufficiency for further expansion, beyond 2030, is questionable.

The designation of offshore plots has been made by selecting marine areas situated at least six nautical miles, or 11 km, off coastlines, which, sources told energypress, ends up being inadequate if capacity targets of between 2 and 3 GW are to be achieved beyond 2030. An expansion of marine territory will be needed, the sources noted.

On the other hand, this distance criterion has also raised concerns among various local officials who fear offshore wind farm proximity could have an adverse effect on local economies.

Municipal and regional committees, tourism industry associations, hoteliers and a number of environmental groups are all on high alert and are even considering to take legal action in order to challenge the development of offshore wind farms. Strongest reaction, so far, has come from officials in Crete’s northeast, Ikaria and Corfu.

According to a preliminary national plan, an offshore wind farm target of 1,900 MW has been set for 2030, while a 6,200-MW target has been set for 2035. Further ahead, this plan’s goal for 2050 is 17,300 MW.

 

ENTSO-E: Greece key for harnessing offshore wind potential in southeast Europe

ENTSO-E, the European Network of Transmission System Operators for Electricity, has, amongst other matters, underlined Greece’s importance in the exploitation of offshore wind potential in the Eastern Mediterranean region in its Offshore Wind Farm Interconnection Infrastructure Development Plan for the Eastern Mediterranean.

ENTSO-E held a meeting in Brussels earlier this week, where the development plan was presented. Greek power grid operator IPTO took part.

Italy is the region’s only country to have developed offshore wind farm projects thus far, but ambitious targets, given the current situation, for 2040 and 2050 will be achieved with countries such as Italy and Greece at the forefront, ENTSO-E noted.

The Eastern Mediterranean region’s South and East Offshore Grids will require energy transmission infrastructure totaling 8.7, 19.2 and 28.3 GW in 2030, 2040 and 2050, respectively, ENTSO-E has estimated, adding that investments needed by 2050 could reach 15 billion euros.

Environmental studies ahead of offshore wind farm projects may face fewer challenges and problems than corresponding onshore projects, ENTSO-E pointed out.

The Eastern Mediterranean region possesses strong wind potential and new offshore wind farms can help the electricity sector meet 2050 targets and become a zero-emission industry both in this region and the EU as a whole, ENTSO-E supported.

The development plan for offshore wind farms in the Eastern Mediterranean and Black Sea regions includes Greece, Bulgaria, Croatia, Cyprus, Italy, Romania and Slovenia.

Greece, Cyprus, Croatia, Italy and Romania have all set official offshore wind farm development targets, while Bulgaria and Slovenia have yet to do so.

Croatia keen to join Greece-Germany electrical grid link

Croatia has expressed an interest to join a group of countries engaged in advanced talks for the development of Green Aegean, an electrical grid interconnection project envisaged to run from Greece to Germany’s south.

Besides Greece and Germany, Slovenia and Austria are already involved in the talks for this project.

Greek deputy energy minister Alexandra Sdoukou appears to have been informed of Croatia’s interest to become a fifth member of this group on the sidelines of last week’s ministerial conference staged by the Central and South-Eastern European Gas Connectivity Group (CESEC) in Athens.

Croatia’s interest to join the Green Aegean project has been linked to the country’s plans to develop offshore wind farms in the Adriatic Sea.

A Croatian action plan presented last year indicated the country could develop offshore wind farms with a 25-GW capacity in the Adriatic Sea, a level of output that would establish Croatia as a major European player in this domain.

The Croatian government is well aware that the country’s anticipated excess renewable energy to be generated from mid-way next decade onwards would need to be exported as the domestic system will not be able to absorb the entire output. Greece faces a similar problem.

Green Aegean would benefit all parties involved. Germany needs to find ways to cover huge energy demand increases in the winter, whereas, at the opposite end, Greece faces greater energy demand in the summer.

EU support funds are serving as an incentive for related projects. The European Commission has made available 584 billion euros for electrical grid development in the EU, Brussels announced last November.

Greek power grid operator DESFA’s chief executive Manos Manousakis is scheduled to hold talks in Brussels tomorrow with Mannon van Beek, the CEO at Dutch TSO TenneT, operating in a large part of Germany.

Manousakis recently also met with Germany’s newly appointed ambassador to Greece, Andreas Kindl, to promote the Green Aegean grid interconnection plan.

 

EDEYEP right to form SPV a boost for offshore wind farms

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

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

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

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

Tough offshore wind farm competition, action needed

The Greek government appears determined to ramp up its plans for offshore wind farm development so that positive momentum generated by announcements made so far does not go astray.

The endeavor is extremely complex, its target for 1.9 GW in six regions by 2030 is very pressing, while competition between countries to attract investments in this sector is intensifying.

Greece faces tough competition from Europe’s north and must convince major foreign companies that it means business.

Speaking at an energy ministry conference yesterday, deputy energy minister Alexandra Sdoukou noted that acceleration and hard work is needed, calling on sector experts, technocrats and companies to coordinate with EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, overseeing the effort, in order to complete, within 2024, preparations for delivery of small and large-scale projects.

Also, it would be ideal, according to the deputy minister, to launch tenders for wind and seabed surveys in 2024, so that the ensuing contractors may begin conducting these studies early in 2025 for delivery in 2026.

This would enable authorities to announce, also in 2026, tenders offering investors licenses for six selected offshore areas, a development that could make the 1.9-GW target by 2030 achievable, the deputy minister pointed out.

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

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

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

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

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

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

Funds sought for pilot-project offshore wind farms

The energy ministry is seeking funds to subsidize the development of pilot-project offshore wind farms at one or two areas identified by EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, among a wider selection, as marine areas appropriate for such projects.

The pilot projects, according to the ministry’s plan, are intended to pave the way for the development of a series of offshore wind farms supporting a capacity target of 2 GW by 2030.

Sector authorities, including Aristotelis Aivaliotis, the energy ministry’s General Secretary of Energy and Natural Resources, as well as Kostas Skrekas, minister of development and investment, have highlighted the importance of these pilot projects, noting they will help establish a local industry supporting the sector’s needs in coming years.

The energy ministry’s initial funding idea, through the decarbonization fund, has yet to receive any feedback from the European Commission, raising doubts, at the ministry, of this route’s prospects.

IPTO set to distribute 2 GW for offshore wind farm areas

Power grid operator IPTO plans, in a fortnight’s time, to distribute 2-GW in grid capacity to Greek sea areas selected to host the country’s first round of offshore wind farms, as part of the overall work being conducted by the Coordination Committee for the Connection and Development of Offshore Wind Farm Projects.

IPTO will present offshore wind farm areas to which the 2-GW capacity will be distributed at the committee’s next meeting, schedule to take place in two weeks.

EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, overseeing Greece’s offshore wind farm plan, presented sea areas marked out for offshore wind farm approximately one month ago.

A legislative revision securing a 2-GW capacity in the grid for the first round of offshore wind farms will be brought to Parliament for approval this coming Thursday, sources informed, confirming deputy energy minister Alexandra Sdoukou’s related announcement made just days ago at the official opening of Copenhagen Offshore Partners’ Athens office.

The 2-GW capacity in first-round offshore wind farms includes 600 MW marked out for pilot projects.

Last week, EDEYEP announced pilot-project permits for two companies, Aioliki Provata Trainoupoleos M.A.E, and Thrakiki Aioliki 1, SA, subsidiaries of Terna Energy and the Copelouzos group, respectively.

 

Offshore wind farm development committee seeking grid-link model

The country’s Coordination Committee for the Connection and Development of Offshore Wind Farm Projects will explore ways to connect Greece’s prospective offshore wind farms with power grid operator IPTO’s network at a meeting today.

Although authorities remain a long way off from final decisions as the exact locations of offshore wind farms must first be determined, discussion, so far, on the connection model has been based on two formulas for shallow and super-shallow alternatives.

In the case of the former, the cost of offshore wind farm links to the nearest IPTO sub-stations would be entirely covered by investors, while, in the case of the the latter, IPTO would provide connection lines all the way to offshore wind farms.

In addition, authorities are discussing substation alternatives and are considering 33-kV and 66-kV options.

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

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

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

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

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

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

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

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

Inaugural offshore wind farm auctions in ’27, 6 areas likeliest

Greece’s first auctions for offshore wind farm areas are expected to take place in 2027 with six areas off Crete, Gyaros, Rhodes and Evia considered the likeliest to be offered to investors as part of the country’s efforts for an offshore energy portfolio of 1.9 GW by the end of the decade, energy ministry officials have informed.

EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, overseeing the effort, also set, late last year, 2027 as the inaugural year of these auctions.

The Greek government recently reduced the National Energy and Climate Plan’s 2030 capacity target for offshore wind farms to 1.9 GW from 2.7 GW.

EDEYEP has scoured Greek waters for locations suitable for development of offshore wind farms. Areas making the grade have been included in a National Offshore Wind Farm Development Program, presented just days ago by the company, along with a Strategic Environmental Impact Assessment.

Flora Karathanasi, an EDEYEP consultant, named six of ten prospective offshore areas for initial development that would contribute to the 2030 target. The six areas are located northeast of Rhodes; around Gyaros, in the northern Cyclades; off Agii Apostoli in eastern Evia; off northeastern Crete, between Agios Nikolaos and Sitia; and off eastern Crete.

According to the National Offshore Wind Farm Development Program, five of these areas are planned to host floating wind turbines, while only one, off northeastern Crete, will host fixed-foundation wind turbines.

The program’s presentation coincides with a heightened level of international RES investment interest in Greek offshore areas.

Swedish-headquartered Hexicon’s Head of Business Development, Henrik Baltscheffsky, recently told energypress that Greece can become a European focal point for floating wind energy, a view he reiterated days later at the 5th Renewable & Storage Forum in Athens.

Also, the Greek subsidiary of Denmark’s Copenhagen Offshore Partners is scheduled to launch its Athens office this Thursday. COP is partnering with the fund management company Copenhagen Infrastructure Partners (CIP), with which Greece-based industrial and energy group Mytilineos shares an alliance.

In addition, Corio Generation, a subsidiary of Australian global financial services group Macquarie, has also expressed an interest to enter Greece’s nascent offshore wind sector. It has announced the formation of a joint venture with Greek company Globalsat.

These moves come following a series of like-minded announcements by domestic companies with major international players (Terna Energy – Ocean Winds; Helleniq Energy – RWE; Intrakat – Parkwind; Motor Oil – Masdar).

Offshore wind farm market devastated, EU looks to revive

Offshore wind energy company shares have continued to plummet, as highlighted by the equity performance of key Danish player Orsted, whose share price slumped 23 percent yesterday, falling to a seven-year low. Higher interest rates and a rise in the cost of materials have been cited as key factors.

The slide was preceded by the cancellation of two major projects in the USA as a result of unfavorable market conditions.

Orsted’s share price peaked at 1,350 kr in 2021 and is now worth less than a quarter of that, 259 kr.

The plight of the Danish company, Denmark’s biggest energy company, mirrors the performances of other energy groups with offshore wind energy interests.

Vestas’ share price has fallen from 312 kr to 150 kr over the past couple of years, the Siemens Gamesa share has slumped from 41 euros to 15 euros, Ming Yang’s share is down to 15 yuan from 34 yuan and the Nordex share price is at 10 euros from 24 euros.

Share prices in the RES sector, overall, have also been affected up to a certain degree, but the offshore wind sector has certainly been hit hardest.

As put by Bloomberg columnist Javier Blas: “If you are building something big, requiring lots of financing, plus steel, copper and plastic, perhaps it would be not such a bad idea to hedge some of that interest rate and commodity price risk”.

Attention has turned to a major wind energy package announced by the European Commission just days ago, its aim being to achieve a capacity of 420 GW in wind energy by 2030, as part of the REPower EU initiative.

This support will certainly help the offshore wind sector, but it remains to be seen if it can compensate for the adverse economic climate and high interest rates.

Presidential Decrees covering offshore wind farms in a year

Presidential Decrees on the delimitation of offshore wind farms areas, required as part of the domestic development of this sector, still nascent in Greece, are expected to be ready a year from now.

In the meantime, a series of preceding steps need to be taken before the Presidential Decrees are signed. They include consultation, this month, on a Strategic Environmental Impact Assessment; approval of the National Program for offshore wind farms, through a ministerial decision; a tender for the plan’s technical studies; and submission of all resulting technical studies and a finalized Strategic Environmental Impact Assessment in the summer of 2024.

The signing of Presidential Decrees, expected to take place in October or November next year, will signify that all is ready for the launch of auctions offering offshore windfarm areas to investors.

No final decisions have been reached at the energy ministry on a proposal forwarded by EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, for the development of offshore wind farms as pilot projects.

The energy ministry can contribute to the wider effort by accelerating the formulation of the emerging sector’s institutional framework, as well as by taking political initiatives that could cover funding gaps of projects through EU funds, according to Aristotelis Aivaliotis, the energy ministry’s Secretary General for Energy and Mineral Resources.

One or two pilot projects could be funded through the island decarbonization fund, though this would require the European Commission’s approval, the official has noted.

The National Energy and Climate Plan envisages the installation of 1.9 GW in offshore wind farms by 2030.

More areas deemed suitable for offshore wind farms

The number of offshore areas deemed suitable for wind energy installations appear set to be increased to facilitate sector investments, according to upcoming revisions to the country’s spatial plan for renewables.

A revised spatial plan for renewables and a related ministerial decision, both drafted by specialized consultants, have been forwarded to the energy ministry for approval ahead of consultation, energypress sources have informed.

Though a specific schedule for the revised spatial plan on renewables has not been set, officials are aiming for a ministerial decision by the end of the year, sources informed.

In general, criteria that characterize the existing spatial plan and take into account factors such as wind potential, tourism development and environmental matters for location suitability are expected to be maintained.

As for offshore wind farm regulations, the new spatial plan will forbid installations in certain areas such as official marine parks, areas with maritime antiquities or protected shipwrecks, aquaculture development areas, enclosed bays and passenger shipping lines.

Also, offshore wind farm installations –  still a nascent sector in Greece – will need to comply with distance rules, including a minimum of one nautical mile (1852 m) from the coastline or enclosed bays.

The revised spatial plan for renewables will also be submitted to the Council of State, Greece’s supreme administrative court, for a formal review to ensure no legal gaps may undermine its implementation. This high-level inspection comes as a result of legal issues that have affected the existing spatial plan.

 

Consultation soon for offshore wind farm areas until 2050

Consultation is set to begin on a National Offshore Wind Farm Development Program and its candidate areas for project development until 2050, as well as on a Strategic Environmental Impact Study concerning these areas.

According to sources, the offshore areas being considered may offer a wind-energy capacity of between 12 and 15 GW, promising to greatly contribute to Greece’s goal for climate neutrality by 2050.

To identify potential areas, EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, surveyed the country’s entire marine area, in cooperation with the ministries of defense, foreign affairs and tourism.

This procedure shortlisted areas not restricted by environmental and national security concerns and where the development of offshore wind farms would not affect the interests of existing sectors such as shipping, fishing and tourism.

EDEYEP has already submitted a National Offshore Wind Farm Development Program and Environmental Impact Study to the energy ministry, the aim being for the consultation procedure to begin imminently, possibly within October.

The plan will, as an initial goal, aim for a 1.9-GW capacity in offshore wind farms by the end of this decade.

Ministry planning offshore wind farm pilot projects

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

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

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

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

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

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

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

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

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

 

Smaller yet greater number of areas for offshore wind farms

Greece’s first phase in the development of offshore wind farms may include as many as seven or eight areas, instead of five or six, as had been initially planned, according to latest information.

Authorities have decided to defer, until early September, the delivery of a national strategy for offshore wind farms, along with a strategic environmental impact assessment, which, combined with necessary restrictions over national security concerns, is ultimately expected to result in a far greater number of areas for offshore wind farm development.

National security-related restrictions imposed by the Hellenic National Defense General Staff have transformed the country’s approach to offshore wind farm development, the resulting rationale being to mark out and offer RES investors numerous smaller areas rather than fewer bigger areas, as was initially planned.

If Greece’s first phase grows to comprise seven or eight areas, then the overall plan could end up including a multitude of small clusters for offshore wind farm development throughout Greece’s sea regions.

Smaller areas mean projects of smaller dimensions, or units that will be far more compact than offshore wind farm systems installed in the North Sea and Baltic Sea over recent years.

This in turn makes the task more challenging for investors, who will have to pay great attention to cost-benefit studies for the cost-effectiveness of proposed projects.

Besides Greece’s pilot projects in the first phase, authorities aim to announce tenders for wind farm projects offering a total capacity of 2 GW by 2030. An extensive development program will help bolster the interest of investors.

Military approves national offshore wind farm strategy

The Hellenic National Defense General Staff has approved a national strategy for the establishment of sea plot areas to host offshore wind farms, subsequently clearing away a last set of obstacles so as to assure investors absolute clarity on regional licensing matters.

EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, is now excepted to deliver its national strategy for offshore wind farm development to the new energy minister Theodoros Skylakakis within the next few days.

Local authorities are aiming for investments worth 6 billion euros in Greece’s emerging offshore wind farm sector.

The plan will be fine-tuned at the energy ministry before being forwarded for consultation and finalized through a ministerial decision.

According to sources, the strategy’s first phase will include six offshore areas instead of five, as had been originally intended.

Even so, the plan’s nucleus is expected to remain unchanged. It consists of Alexandroupoli, in the northeast, planned to host two pilot projects offering a total capacity of 600 MW; Crete, where a further 600-MW capacity is expected to be offered with offshore wind farms at sea plots around the island’s northeastern edge, between Sitia and Xerokampos; as well the central Aegean, with sea plots to be marked out either close to the mainland or in the Dodecanese area for a further 900 MW.

Overall, the plan is expected to feature between 12 and 15 sea plots, including three or four east of Crete, two or three in the Aegean Sea’s east, two or three in the Dodecanese area, three spots east of Evia, close to the mainland, as well as two more off Alexandroupoli in the northeast.

Greek officials have, for quite some time now, been engaged in talks with the European Commission’s Directorate-General for Competition to establish a remuneration mechanism for offshore wind farms and related auctions.

Sector experts estimate that a first auction may, in a best-case scenario, be staged by 2028, ahead of the launch of a first group of offshore wind farms at the end of the decade.

GEK-Terna and the Copelouzos group recently joined forces for common survey work concerning two respective pilot-project offshore wind farms close to Alexandroupoli.

GEK Terna, Copelouzos join forces for offshore wind farm studies

GEK Terna and the Copelouzos group are joining forces for common survey work concerning two respective pilot-project offshore wind farms close to Alexandroupoli, in the country’s northeast, energypress sources have informed.

The two corporate groups have decided to merge their survey efforts for these projects as their respective production licenses concern the installation of offshore wind facilities in Alexandroupoli’s same wider offshore area, marked out by the government, following a recommendation by the relevant authority, EDEYEP, the the Hellenic Hydrocarbons and Energy Resources Management Company.

The pilot offshore wind farms to be installed off Alexandroupoli will offer a total capacity of 600 MW, slightly below the sum of two separate production licenses held by GEK Terna and the Copelouzos group, for 485 MW and 216 MW, respectively.

The synergy between the two groups concerns geophysical and geotechnical studies on the composition of the seabed, collection of wind data, as well as studies related to the logistics chain and an electrical interconnection that will be built in order to transfer energy produced to the land and the transmission grid.

The two groups expect their joint survey effort to be completed within 12 to 16 months from now. They aim to launch both offshore wind farms before the end of this decade.

The projects will be developed through an EU go-to-areas scheme designed to accelerate green-energy project development as a means of ending Europe’s reliance on natural gas as soon as possible.

Military approval still needed for national offshore wind farms plan

A national plan for the establishment of sea plot areas to host offshore wind farms still needs to be approved by the Hellenic National Defense General Staff so that prospective investors can be assured of absolute clarity on regional licensing matters.

All related details are currently being scrutinized by the military body and ministries to ensure the establishment of a thorough plan.

Once established, it will be forwarded for consultation before a joint ministerial decision is issued to officially launch the country’s offshore wind farms sector.

The national plan, spearheaded by EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, is expected to feature between 12 and 15 sea plots, including three or four east of Crete, two or three in the Aegean Sea’s east, two or three in the Dodecanese area, three spots east of Evia, close to the mainland, as well as two more off Alexandroupoli in the northeast.

Five areas marked out to host Greece’s first phase of offshore wind farms, planned to offer a total capacity of 2.1 GW, are located in the north and central Aegean, as well as off Crete.