PPAs

Energy-intensive industry to make ministry’s 1.5-GW PPA cut

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PPAs established by RES producers with industrial consumers for connection-term priority concerning new RES projects developed by the former add up to a total capacity of more than 3.9 GW, but just under half of this capacity, or 1.5 GW, linked to energy-intensive industry, is expected to be approved by authorities.

The energy ministry is still processing PPA applications submitted by RES producers, eager to secure connection-term priority for their projects.

Given the overwhelming response, the ministry has decided to trim the number of applications by 20 percent, through an imminent ministerial decision, in an effort to secure connection terms for a greater number of projects.

However, despite this cut, the capacity will remain elevated, at 3 GW, well over the 1.5 GW in industry-related PPAs the ministry intends to approve.

PPA applications linked to energy-intensive industries represent a total of 1.8 GW, a figure expected to prompt the energy ministry to trim further for a final figure of 1.5 GW.

The ministry’s evaluation process of applications is expected to be completed today. The finalized list of industrial-consumer PPAs will be decided by energy minister Thodoros Skylakakis.

Energy-intensive industries appear most certain to secure PPAs as the energy ministry’s key aim, through this initiative, is to lower industrial energy costs.

According to energypress sources, the list of main PPAs concerning energy-intensive industries is as follows:

Power utility PPC – Viohalko (520 MW), concerning PVs jointly owned by PPC and Motor Oil; PPC – Titan (300 MW), also concerning PVs jointly owned by PPC and Motor Oil; Mytilineos (300 MW) for self consumption; Helleniq Energy (200 MW) for self consumption; AGET – Macquarie (40 MW); Hellenic Halyvourgia – Interphoton (104 MW); and TERNA – Viohalko (360 MW).

1.5 GW in RES projects with industrial PPAs set for approval

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The energy ministry intends to soon issue a ministerial decision that will result in connection-term priority for roughly 1.5 GW in RES projects that have established PPAs with industrial consumers.

Applications by investors behind RES projects seeking connection-term priority through industrial PPAs have reached a total capacity of approximately 3.8 GW.

At this stage, the ministry’s main aim is to offer local industries benefits lowering their energy costs rather than to promote new RES projects through fast-track procedures.

Projects included in a top-tier category will be given connection-term priority through the ministerial decision, while remaining capacity will be offered to second-tier projects.

Priority RES processing slowed down by industry, farmer PPAs

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Power grid operator IPTO’s processing of applications for finalized connection terms concerning RES projects in the top-priority Group A category is proceeding slowly and has yet to be completed, Nikos Boulaxis, General Manager of the operator’s regulatory policy has informed.

The procedure is just over the half-way mark with processing of six of Group A’s ten sub-groups virtually completed, the official noted.

The energy ministry, through a recent legislative revision, offered absolute priority to RES projects that enter into renewable-energy PPAs with energy-intensive industries and farmers, which has slowed down the issuance of finalized connection concerning Group A applications.

Based on data released this month, RES projects already operating have reached 13.1 GW, of which 5.4 GW are linked to power grid operator IPTO’s network and 7.7 GW are linked to the DEDDIE/HEDNO distribution network operator.

The sum of operating RES projects and RES projects that have received finalized connection offers has reached 28.5 GW, of which 19.2 GW concerns the IPTO network and 9.3 GW concerns the DEDDIE/HEDNO network.

Given the fact that these figures already exceed the National Energy and Climate Plan target by 5 GW, the pace of granting finalized connection offers is not expected to change drastically in the short term.

 

RES units in industrial PPAs for fast-track links reach 2 GW

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RES investors looking to benefit from a recent legislative revision offering connection-term priority to projects that have established PPAs with industrial consumers have until today to submit power purchase agreements to authorities.

RES projects signed up so far for PPAs with industrial consumers represent a total capacity of 2 GW, energypress sources have informed.

These PPAs include renegotiated agreements between power utility PPC and metal processing company Viohalko and cement producer Titan, for respective capacities of 520 and 300 MW, the sources noted.

Both Viohalko and Titan had signed PPAs with PPC prior to the energy ministry’s amendment offering connection-term priority to RES projects, but were renegotiated at the initiative of the two industrial consumers after they pointed out that new market conditions had been shaped by the legislative act.

According to sources, both Viohalko and cement producer Titan achieved deals well below the level of 56 euros per MWh agreed to for their original PPAs.

RES producers, industry in PPA negotiations, 10 days left

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RES producers and industrial energy consumers are negotiating intensely for renewable-energy power purchase agreements (PPAs) promising benefits to both sides as a limited 35-day period offered through a recent legislative revision prepared by the energy ministry enters its final ten days.

RES producers are keen to secure PPAs with industrial consumers as such agreements would secure connection-term priority for their RES projects. On the other hand, industries are pushing for lower energy prices through these PPAs as they try to capitalize on currently favorable market conditions.

The 35-day period for PPAs offered through the legislative revision, ratified on March 14, expires on April 19.

Finalized PPAs need to be submitted to power grid operator IPTO and the energy ministry’s division for renewable energy sources and alternative fuels by April 19, along with affidavits signed by RES unit owners and representatives of energy-intensive industries establishing PPAs.

RES producers and industries are negotiating PPAs at levels falling below 50 euros per MWh, unimaginable levels just months ago.

This sharp drop in PPA prices is, on the one hand, the result of de-escalated energy prices, now giving breathing space to industrial consumers and, on the other hand, large supply of RES projects, greatly exceeding demand.

Fast-track renewable energy PPAs sparking activity

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A recent legislative revision by the energy ministry securing connection-term priority for RES projects that have established PPAs with industrial consumers within a specified 35-day limit has sparked heightened activity between the two sides seeking to gain from this fast-track offer.

PPA applications for RES projects representing a total capacity of between 800 and 1,000 MW are estimated to have so far been submitted to both energy ministry and power grid operator IPTO divisions, as is required. The influx of applications is expected to rise.

RES investors seeking connection-term priority for their projects are required to submit affidavits naming their projects, while the off-takers, in this case, industrial consumers, must also submit affidavits, for the process to be completed.

PPA levels are currently being set at highly competitive prices for energy consumers. Large-scale industries are negotiating PPAs at price levels of between 50 and 52 euros per MWh, while smaller producers are securing prices of between 55 and 60 euros per MWh, sources informed.

However, certain RES project investors, especially from abroad, are expressing concerns over the amendment’s impact on market conditions. Some RES investors fear the revision’s resulting de-escalation in PPA price levels is jeopardizing the viability of their projects, while others are believed to even be considering exiting the Greek market.

 

RES units with new PPAs also eligible for fast-track grid links

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An energy ministry legislative revision submitted to Parliament yesterday promises absolute grid-connection priority to RES producers who have established green-energy PPAs with domestic energy-intensive industrial producers and farmers as well as RES projects for which PPAs will be established after the legislative revision has been ratified.

Also, one group of RES units will not be subjected to grid-injection limitations for their output.

Power grid operator IPTO is expected to offer fast-track connection terms to a considerable number of RES facilities.

According to sources, RES projects representing an overall capacity of up to 1,600 MW could secure swifter grid connection terms as a result of the legislative revision.

As noted in the legislative revision, the capacity of RES projects to be given fast-track access to the grid will be determined by a ministerial decision to be issued by the energy ministry 60 days after the legislative revision has been ratified.

Leftover grid capacity for wind and solar energy projects not securing fast-track grid access will be drastically reduced.

This diminished capacity is expected to increase again once measures designed to free up grid capacity have been implemented.

However, these measures, to include greater RES grid-injection cuts and battery additions to mature RES projects with finalized connection terms, are not expected for quite some time, meaning connection terms will be handed out bit by bit to RES units not given fast-track connection terms through the new legislative revision.

Industrial PPAs, offering faster RES connections, in demand

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Industrial PPAs are in demand as a new legislative revision submitted to Parliament yesterday by the energy ministry promises swifter connection terms for RES producers.

The ministry’s proposed amendment includes provisions giving connection-term priority to RES projects that have established, or are set to establish, PPAs for their production with energy-intensive industrial consumers.

Taking into account the grid’s capacity limitations highlights how coveted PPAs have become for RES producers as, once the legislative revision has been ratified, capacity available to these producers is expected to further diminish and make even more challenging their ability to connect new RES projects to the grid.

In comments offered to energypress, a number of market officials admitted no clarity exists as to how easy or not it could become for RES producers to ensure connection terms beyond the legislative revision.

Power grid operator IPTO’s deputy chief Giannis Margaris recently informed that 12.5 GW in RES facilities are currently operating, adding that leeway exists for an additional 6 GW without any saturation issues.

Concerns being considered at present are about the future, as connection terms already issued, along with RES projects in operation, total nearly 30 GW, the IPTO deputy pointed out. The ongoing discussion has to do with the ability to offer connection terms in the future, he pointed out.

 

 

 

Older industrial PPAs to be given connection-term priority

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A legislative revision promising connection-term priority to RES projects whose output is intended for long-term PPAs with industrial and agricultural consumers will apply only to older agreements going back two years, such as those established between power utility PPC and metal processing company Viohalko and cement producer Titan, energypress has been informed by sources at the energy ministry, preparing to submit the revision to Parliament today.

The legislative revision will be attached to a finance ministry bill concerning a 15 percent minimum tax rate on multinationals.

Market players who rushed to establish PPAs in the lead-up to this legislative revision will not be entitled to connection-term priority rights.

The number of PV projects – in terms of capacity – to be granted connection-term priority rights as a result of the legislative revision will be decided through a ministerial decision at a latter date, when the energy ministry has a precise figure on the number of PPAs energy-intensive consumers have established with RES producers.

However, it is already considered certain that roughly 500 MW in PV projects to be developed for lower-cost electricity to the agricultural sector will benefit from the legislative revision.

The overall capacity of RES projects – for agricultural and industrial energy consumption – linked to this legislative revision may be below a 1,300-MW capacity initially reported.

 

Bill on connection-term priority for PPAs headed to Parliament

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A legislative revision promising connection-term priority to RES projects whose output is  intended for long-term PPAs with industrial and agricultural consumers is ready and set to be submitted to Parliament, possibly even today.

The revision is expected to be attached to a finance ministry bill concerning a 15 percent minimum tax rate on multinationals, expected to be voted on early next week.

The government’s decision to attach the energy-related legislative revision to a bill that does not concern the energy sector highlights its urgency to push ahead with a plan  offering support to the agricultural and industrial sectors, lower-cost electricity being a key part of this effort.

Though the legislative revision covering connection-term priority will not contain any specific information on capacity-related figures – this will be specified through an ensuing ministerial decision – it is expected to facilitate roughly 1,300 MW in PV projects that have established PPAs with agricultural and industrial consumers, 700 MW for the former and 600 MW for the latter.

Energy Exchange to launch pilot platform for PPAs in Q3

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A pilot platform being developed by the Energy Exchange for renewable energy PPAs is expected to be launched within the third quarter of this year, energypress sources have informed.

The main idea, given the current maturity of the market, is to offer common ground where the parties involved – RES producers and off-takers – can converge to negotiate bilateral contracts.

A simple platform will be offered to facilitate the needs of buyers and sellers, the sources noted, adding the Energy Exchange will not include more complex functions such as billing, clearing or other services.

Also, the Energy Exchange is developing a contract template as assistance for parties interested in establishing PPAs, especially smaller players. It will be at their discretion whether to use it or not.

The aim will be to offer a formula ensuring proportionality and balance between producers and off-takers in order to minimize the possibility of contracts being broken over the slightest of issues.

No particularly challenging regulatory issues remain pending for the platform’s operation, meaning delays are unlikely.

The Energy Exchange may revise the platform’s original form at a latter date in order to offer additional services that would correspond with the PPA market’s increased maturity anticipated over time.

RES producers rethink 2-year contract freezes as DAM falls

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Changing wholesale electricity market conditions that have led to lower prices are prompting RES producers to reconsider exercising a right to suspend, for two years, long-term operating contracts with RES market operator DAPEEP in order to establish PPAs or to engage in direct market participation.

Last month, numerous RES producers submitted applications to have their long-term operating contracts with DAPEEP suspended for two years but are now taking a step back and reevaluating whether it would be wise to do so.

Suspension applications submitted in February represented a total RES capacity of over 1,000 MW but investors who followed through to freeze their tariff agreements with DAPEEP, for two years as of March 1, totaled roughly 85 MW.

In January, when the two-year suspension right was introduced, RES producers representing roughly 150 MW went ahead with PPA suspensions. This figure is forecast to drop even lower, to a level of about 50 MW, in March.

Lower day-ahead market prices in the wholesale electricity market are forecast to remain low for quite some time. This is encouraging electricity consumers interested in establishing PPAs with RES producers to demand far lower prices for long-term supply agreements.

RES units without priority to be given 50% battery subsidies

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The energy ministry is working on offering an alternative form of support, through subsidies for battery installations, to RES projects linked with PPAs for industrial consumers should these projects miss out on priority status for appraisals of their connection-term applications.

RES units placed in Group B, in terms of priority, and not granted priority status for appraisals of their connection-term applications will, as a form of compensation, receive subsidies covering 50 percent of battery installations, the energy ministry has decided.

These batteries will be permitted to absorb energy from the grid, in addition to their respective RES units, thereby decreasing their investment cost.

The energy ministry has decided to grant priority status for connection-term applications concerning Group B RES projects whose output is intended to contribute to energy needs entailed in power utility PPC’s existing PPAs with metal processing company Viohalco and cement producer Titan.

RES projects planned to secure lower energy costs for farmers will also be granted priority status for their connection-terms procedures. A related legislative revision is expected to soon be submitted to Parliament.

 

PPA conditions altered by falling gas and electricity prices

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Falling natural gas prices and, subsequently, lower electricity prices, have brought about major changes to Greece’s renewable-energy PPA (power purchase agreements) market conditions, prompting industrial consumers and power suppliers to push for lower-priced PPAs.

Off-takers, or industry and power suppliers, are gaining an upper hand over RES producers in terms of price negotiations for prospective PPAs. RES producers are being forced to show greater price leniency in order to secure the development of new projects.

Given the natural gas and electricity price drops, existing ten-year PPAs established by power utility PPC with metal processing company Viohalko and cement producer Titan are also expected to be renegotiated as the price levels for these agreements, set at 56 euros per MWh, are no longer considered competitive.

Prior to the de-escalation of natural gas and electricity prices, PPAs virtually represented a life raft for industrial consumers and suppliers by offsetting exposure to high electricity prices and, more generally, considerable market volatility.

At present, natural gas prices on international energy exchanges have reached a three-year low, reaching 22.53 euros per MWh last Friday, and, in doing so, have also pushed down wholesale electricity prices, currently at levels of less than 100 euros per MWh.

Under such conditions, PPAs are no longer seen as a crucial. Instead, they have become irrelevant as the need for hedging has been significantly reduced or even eliminated. Market analysts do not see any upward price swing in the months ahead, a further de-escalation in gas and electricity prices seeming most probable.

 

Lower-cost energy for farmers to alter connection-term order

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A government initiative promising lower-cost electricity for farmers stands to alter the ordering of a connection-term waiting list by elevating to the the top of this list RES projects planned to supply farmers through PPAs as well as domestic industrial consumers who have established such agreements.

A ministerial decision will be needed for this revision, which breaks the energy ministry’s unwavering stance for absolute adherence to priority concerning assessments of grid connection-term applications.

With the exception of consumers in the agricultural and industrial sectors who will be moved to the top of this waiting list, the ordering of all other consumer categories will be kept unchanged.

This ordering revision favoring farming and industrial PPAs could be made ahead of increased grid-injection restrictions planned by the government as part of a wider plan aiming to free up grid space.

Therefore, farming and industrial PPAs to be elevated to the top of the connection-term waiting list would secure current grid-injection restriction levels, before these restrictions are increased.

Lower-cost farming electricity plan based on industrial PPAs model

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New government measures aiming to reduce energy costs for farmers have taken their cue from a PPA  pricing formula shaped by power utility PPC and agreed to with two industries so far – metal processing company Viohalco and cement producer Titan – for ten-year PPAs offering higher fixed tariffs over the first two years and lower-priced tariffs thereafter.

The government’s revision for agricultural-sector farming electricity, to be introduced April 1, almost exclusively applies to power utility PPC, as the company represents virtually all of the country’s 192,000 farming power meters.

PPC incorporated elevated fixed tariffs, for the first two years, into its PPAs with Viohalco and Titan as it anticipates such a time period will be needed for the completion of solar farms planned to serve the two industries.

Ministry determined to ensure PPAs for industrial consumers

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The energy ministry appears determined to ensure renewable-energy PPAs for industry and intends to incorporate all required measures into an overall plan being developed for the liberalization of grid space.

However, the ministry has a conundrum to resolve as it must combine increased grid-injection restrictions for RES units obtaining connection terms from now on with the need to keep prices low for PPAs involving RES producers and industry.

These increased grid-injection restrictions for RES units come as a challenge for renewable-energy PPAs already established, among them agreements between power utility PPC with metal processing company Viohalco and cement producer Titan.

Besides modifying RES output, these restrictions also affect data used by parties involved in PPAs to reach agreements on electricity purchase prices.

To offset negative impact, the ministry is considering to subsidize behind-the-meter battery additions to projects. This would enable RES producers to meet the energy needs of industries at latter dates should PV production exceed upper limits.

A subsidy-support solution would require the European Commission’s approval as it is considered a form of state aid.

 

RES producers utilizing 2-year DAPEEP contract suspension

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RES producers appear eager to make the most of a new legislative revision permitting them to suspend, for two years, project operating contracts with RES market operator DAPEEP so that they may directly participate in the wholesale electricity market or establish PPAs.

Roughly ten RES facilities representing approximately 150 MW have already suspended their project operating contracts with DAPEEP since the revision’s implementation just days ago, energypress sources have informed.

Market officials anticipate an even bigger wave of project operating contract suspensions by RES producers from March onwards, one key reason being that banks, which needed time to study the revision, are now expected to offer their consent far more readily than they had done for the first wave of movers.

DAPEEP has forecast that over 90 percent of RES producers who meet requirements will end up temporarily suspending their operating contracts with the RES market operator.

PVs of 300-500 MW needed for farming PPA energy-cost cuts

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Development of a solar-energy portfolio between 300 and 500 MW will be required so that farmers participating in cooperatives and farmers active in contract farming may establish PPAs offering electricity prices at least 30 percent lower than current levels over a ten-year period, the energy ministry has estimated.

Photovoltaic systems to be developed for this purpose will include batteries, thereby enabling part of their production to cover energy needs during nighttime hours for irrigation and other needs.

Sizeable state subsidies for integration of energy-storage systems into PVs are expected, ministry sources informed.

The extent of this subsidy support will be determined through a study to be conducted by the ministry in order to calculate the total energy-storage capacity required to secure electricity-cost cuts of at least 30 percent for farmers, the sourced noted.

According to an initial estimate, battery installations will need to represent roughly one-third of the total capacity of solar farms if this electricity-savings target is to be achieved.

Most RES producers holding contracts seen turning to PPAs

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More than 90 percent of RES producers meeting requirements for two-year suspensions of their project operating contracts with RES market operator DAPEEP, in order to engage in direct market participation or establish PPAs, will make the most of this option, the operator has estimated.

DAPEEP’s estimate represents the basis of a Budgetary Estimate of Revenue and Expenditure Report concerning new projects linked to National Energy and Climate Plan objectives. The RES market operator has forwarded this report to all relevant agencies.

DAPEEP expects roughly 2,100 MW in new RES projects with tariffs to penetrate the RES market in 2024.

The measure offering RES producers two-year suspensions of their project operating contracts with DAPEEP is particularly appealing to producers as this two-year period will not be deducted from existing 20-year tariff agreements with the operator.

It also promises RES producers sale of their output at levels probably higher than guaranteed-income levels offered by their existing project operating contracts with DAPEEP.

A legislative revision permitting RES producers to suspend their operating contracts by two years is scheduled to come into effect February 1.

Investors behind large RES projects of over 1 MW that either received operating permits or were electrified after March 28, 2023, will be eligible, as will small RES projects under 1 MW that were electrified following this date.

DAPEEP contract suspensions for RES producers as of Feb. 1

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A legislative revision by the energy ministry permitting RES producers to suspend, for two years, project operating contracts with RES market  operator DAPEEP so that they may directly participate in the wholesale electricity market or establish PPAs is scheduled to come into effect February 1.

In the lead-up, DAPEEP is expected to launch, within the first few days of January, an online platform accepting operating contract suspensions. Contracts will be suspended once applications have been inspected by the operator. The inspection process will be swift, officials have noted.

Investors behind large RES projects of over 1 MW that either received operating permits or were electrified after March 28, 2023, will be eligible, as will small RES projects under 1 MW that were electrified following this date.

Energy exchange’s preliminary PPA plan approved by officials

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A preliminary plan prepared by the energy exchange for a platform hosting renewable-energy power purchase agreements (PPAs) has been given the green light for further development by both the energy ministry and RAAEY, the Regulatory Authority for Waste, Energy and Water, energypress sources have informed.

The energy exchange’s plan is divided into two stages corresponding to the maturity levels of the PPA market.

During preceding public consultation, RAAEY had presented three alternative models for development. The energy exchange opted to work on a model whose first stage – at least – would primarily enable participants to express interest.

At its meetings with the energy ministry and RAAEY, the energy exchange presented a proposal detailing a standardized form for PPA contracts, as well as draft rules on how the platform should operate.

In addition, at these meetings, the energy exchange stressed that, despite its limited initial needs, the PPA platform plan would need to take into account, from the outset, the prospect of operating in mature and developed market conditions.

Industry troubled by PPA terms, seen as ‘out of touch’

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Greek industrial players are expressing strong reservations about the prospects of green power purchase agreements (PPAs), which have been delayed by well over a year, their terms now considered out of touch.

Industry’s concerns have arisen as the energy ministry seeks to find a solution that would unblock the development of 2.5 GW in solar energy projects under contract for their supply to industrial consumers.

When talks had first begun on the introduction of PPAs, the now-delayed associated RES projects were expected to be operational in 2025. But it now appears they will not be ready to operate until 2027.

Ten-year PPAs already signed offer fixed energy prices to industrial players, who agreed on these deals anticipating the considerable energy-cost benefits of the first few years would eventually fade out towards the end of their ten-year period.

Industry deems latest PPA price levels on offer as excessive, greatly increasing the entrepreneurial risk involved.

EVIKEN, the Association of Industrial Energy Consumers, in a letter forwarded to energy minister Thodoris Skylakakis, has called for measures that would help industrial producers establish PPAs. The association has recommended cutting the duration of new PPAs to two years from ten years at present.

Brussels planning European green-energy PPAs platform

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A European Commission draft for electricity market revisions, whose text has been obtained by energypress, includes a plan for an EU platform to host green-energy PPAs.

Preliminary discussions on electricity market revisions are currently taking place in Brussels and expected to continue at a session tomorrow ahead of a second round of talks planned for mid-December.

It should be noted that tripartite meetings, or trilogues, between European Parliament, the Council and the Commission, will need to be completed by early February if the draft is to be adopted and published in the EU’s Official Journal ahead of the forthcoming European elections.

The European Commission, according to the draft plan, will consider establishing a European platform for PPAs by assessing the interaction prospects of such a platform with other existing electricity market platforms and a potential market pooling role.

The platform, according to the plan, will operate on a purely voluntary basis for participants and will be developed through cooperation between the European Commission, ACER, Europe’s Agency for the Cooperation of Energy Regulators, and EU member states.

The draft agreement calls on EU member states to promote the adoption of PPAs by removing any unnecessary barriers, unjustified procedures or fees that may exist in order to ensure price visibility and achieve objectives included in their respective National Energy and Climate Plans.

The European Commission may issue a specific directive to remove barriers hindering PPAs, the plan notes. It recommends an assessment by January, 2026, followed by inspections every two years, to determine whether barriers remain and whether transparency in PPA markets is sufficient.

Ministry working to resolve PPA issues faced by industry

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The energy ministry is working on a plan that would allow industrial enterprises to use green-energy power purchase agreements (PPAs) as a means of gaining long-term visibility on energy costs, while keeping supply prices at internationally competitive levels.

As part of the effort, the ministry is seriously considering the possibility of requiring RES projects that secure tariffs at future RES auctions to sign bilateral contracts with industrial consumers for a share of their overall power output.

Though a first round of green-energy PPAs involving energy-intensive consumers have already been established, challenges have been encountered, a key problem being a drastic reduction in grid capacity availability.

One solution being worked on by the energy ministry entails increasing an injection limitation for new photovoltaics to 50 percent of output, as well as making battery installations compulsory for new solar farms.

Contract suspension rights for RES producers revised

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RES market operator DAPEEP has revised terms permitting RES producers to suspend, for two years, project operating contracts with the operator in order to engage in direct market participation or establish PPAs, sources have informed.

Investors behind large-scale RES projects, over 1 MW, that received operating permits after March 28, 2023, as well as small-scale projects, under 1 MW, electrified beyond this date, will have the right to suspend project operating contracts with the operator to engage in direct market participation or establish PPAs, according to the revision.

Under the previous plan, investors who established, or would have established, contracts with DAPEEP up until December 31, 2023, for both small and large projects of under and over 1 MW, respectively, were eligible for the two-year contract suspension.

The new March 28 date was set as it marks the date, earlier this year, when the energy ministry’s draft bill on the matter was ratified.

As for projects already in operation, the two-year contract suspension right will apply from the date they were licensed, if over 1 MW, or electrified, if under 1 MW.

The overall procedure has been simplified and will be carried out through an online platform, enabling producers to sign new supplementary contracts with DAPEEP so that issues related to investor loans from banks are also covered.

Industry partially satisfied with gov’t energy-cost strategy

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SEV, the Hellenic Association of Industrialists, has expressed partial satisfaction over government action aiming to reduce energy costs for energy-intensive industries.

Energy minister Thodoris Skylakakis has reportedly pledged to meet as many industrial-sector requests as possible, even within the remainder of 2023.

These requests include a CO2 cost-offsetting mechanism between 2021 and 2030; a two-year extension, covering 2024 and 2025, of a Temporary Crisis and Transition Framework adopted by the EU as economic support for member states following Russia’s invasion of Ukraine; as well as a demand response mechanism rewarding flexibility.

However, the ministry does not appear keen to act on requests made by Greek industry for a reduction of grid and distribution network usage surcharges imposed by power grid operator IPTO and distribution network operator DEDDIE/HEDNO, respectively.

Further industrial-sector requests for connection-term priority concerning green-energy PPAs and an end to a transit fee on gas from Bulgaria also seem unlikely to be accepted by the ministry.

 

Brussels rejects Greek proposal for Green Pool model

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The European Commission has rejected a Greek proposal for a Green Pool model intended to keep green-energy PPA prices at competitive levels for the country’s energy-intensive industries.

Though Brussels’ Directorate-General for Competition has yet to announce its rejection of the plan, it informed the Greek energy ministry of its decision late last week, energypress sources informed.

Evaggelos Mytilineos, President and chief executive of the Mytilineos group, expressed his disappointment over the decision during a TV interview on CNBC.

“Unfortunately, on Friday, we heard the bad news that the Green Pool plan, which is a combination of a carbon exemption and support for energy-intensive industries, has been rejected by the European Commission after a year of negotiations. Every country, every economy, is trying to achieve economies of scale. It’s really difficult,” Mytilineos commented.

Negotiations on the Green Pool plan began soon after the Greek government had forwarded its proposal to the Brussels authority in September, 2021.

The European Commission is believed to have rejected the plan on the grounds that it could be regarded as a tool subsidizing electricity generated by fossil fuels.

Ministry rules out RES licensing-priority revisions

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The energy ministry has ruled out any possibility of licensing priority revisions in a ministerial decision detailing power grid operator IPTO’s order of RES project connection-term application appraisals to specifically promote new solar energy projects equipped with batteries, energypress sources have informed.

Power grid operator IPTO is currently assessing connection-term applications submitted by RES producers with projects in top-tier Group A. The procedure may have already been completed.

Assessments of applications for Group B projects, grouping together prospective RES units intended for green-energy power purchase agreements between RES producers and industrial consumers, will follow.

The ministry revised the ministerial decision last January to increase the grid capacity that may be occupied by PPA-linked RES units as an upper limit for Group B projects was raised to 4,000 MW.

The issue has become complex as new PVs will need to start being equipped with batteries in order to minimize RES output cuts, carried out to prevent grid overloading.

However, the growing need for combined RES-and-storage facilities, to enable more efficient usage of grid capacity, changes financial factors taken into consideration by RES producers and industrial consumers for their green-energy PPAs. These factors are invalidated as the addition of batteries increases the development cost of projects.

 

Industrial sector PPAs with PPC enter unchartered waters

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An energy ministry intention to offer licensing priority to new photovoltaic parks with batteries behind the meter threatens to greatly impact green-energy PPAs reached between industrial players and power utility PPC.

Off-takers are already experiencing delays as connection-term offers for RES units in Group B, including PPC’s solar farms intended for PPAs, have essentially been put on hold until the energy ministry reaches a final decision on the licensing-priority details for new PVs with batteries.

Delays could become even longer if the energy ministry decides to establish an additional category for PVs with batteries securing tariffs through auctions.

Worse still, if the PPAs need to be combined with storage units, to enable more efficient usage of grid capacity, then the financial aspects taken into consideration by PPC and industrial consumers for their green-energy PPAs will no longer be valid as the addition of batteries would increase the development cost of projects.