ppc

PPC rivals fear low gas prices may sustain pricing aggression

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Power utility PPC, the domestic market’s dominant and influential player, clearly subdued its new variable green tariffs – introduced January 1 by all suppliers – to the greatest degree possible, setting a lower-than-expected rate of 13.63 cents per KWh for January that forced most rivals to respond with green tariffs that averaged 15.4 cents per KWh, overall for independent suppliers, rather than levels of between 16 and 17 cents per KWh, which they would have preferred.

Natural gas prices in international markets have been on a downward trajectory over the past few days, a trend that may encourage PPC to maintain its aggressive pricing policy for a second consecutive month when it sets green tariff levels for February in three-and-a-half weeks’ time.

The prospect has raised concerns among independent suppliers, fearing they may not be able to endure suppressed profit margins for a second month running and, instead, set tariffs at between 16 and 17 cents per KWh to avoid sacrificing profit once again.

Independent suppliers will be keeping a close watch on any consumer shifts this month before deciding on their tariff levels for February.

Besides variable green tariffs, the newly introduced tariff system, also includes fixed blue tariffs and variable yellow tariffs.

Consumers had up until December 31 to express preferences or be automatically transferred to the green-tariff category by their suppliers.

Consumers automatically transferred to green tariffs represented at least 70 percent of the respective client bases of all suppliers.

 

PPC sets green tariff at 13.63 cents per KWh for January

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A drop in wholesale electricity prices during the second half of December has enabled power utility PPC to launch its variable green tariff at a lower-than-expected rate of 13.63 cents per KWh for January.

The country’s electricity suppliers have just launched their new tariffs under the country’s new tariff system, introduced January 1.

PPC’s aforementioned green tariff rate concerns monthly low-voltage consumption of up to 500 KWh. The company’s green tariff for monthly consumption over 500 KWh has been set at 14.59 cents per KWh. Also, PPC’s nighttime green tariff rate was set at 11.55 cents per KWh.

The new green tariffs introduced January 1 have been implemented automatically for all consumers, unless they formally objected in the lead-up, up until December 31, and opted for other tariff categories.

Fixed tariffs, dubbed blue tariffs, as well as variable yellow tariffs have been made available under the revamped tariff system.

From now on, suppliers will be announcing green tariffs on the first of each month. Levels announced will remain valid for a month.

Elsewhere, Volton set a green tariff rate of 14.41 cents per KWh, including a 20 percent discount and 20 percent punctuality discount.

Elpedison set its green tariff at 17.06 cents per KWh. Zenith’s green tariff, dubbed Power Home Start, was set at 16.9 cents per KWh. Fysiko Aerio set a green tariff rate of 14.26 cents per KWh, including a punctuality discount.

Volterra’s green tariff, including a discount, is 14.39 cents per KWh. Heron set a rate of 14.05 cents per KWh, including a punctuality discount. NRG’s green tariff is priced at 14.1 cents per KWh, while Protergia’s green tariff, including a discount, was set at 14.26 cents per KWh.

 

PPC to present ambitious business plan at London event

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Power utility PPC is currently adding final touches to a new and highly ambitious four-year business plan scheduled to be announced January 23 in London, at a Capital Markets Day event, before an audience of international analysts and institutional investors.

They will be expecting news from PPC’s leadership on the energy group’s priorities abroad, including its next big steps planned for the Balkans; a retail energy expansion plan through the group’s fully-owned Kotsovolos electrical and electronics retail chain, a leading force in the Greek market; as well as news on the company’s plans for promising new sectors such as fiber optics and waste management through public-private partnerships.

PPC is also looking to capitalize on company-owned properties that have remained unutilized for decades.

Over the past few years, PPC has enjoyed a period of tremendous growth that has led to a 50 percent increase in financial figures, over 9 million customers, 14 GW in renewable energy projects, and 340,000 kilometers of networks.

Under the leadership of its CEO Giorgos Stassis, PPC is steadily growing into an energy group of international proportions and a dominant force in southeast Europe. Investments in Romania are a key part of this strategy.

 

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.

Competition remains strong for second storage auction

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A total of 55 applications representing standalone batteries with 1,668 MW in capacity have been submitted by RES investors to a second auction offering investment and operational support for standalone batteries, a solid turnout ensuring the strong competition registered at the first auction will be maintained.

Investment and operational support will be offered to projects totaling 288.21 MW, meaning applications for participation have oversubscribed this capacity by 5.7 times.

The field of contestants will be finalized at noon today, when a deadline for letters of guarantee expected from participants is set to expire.

According to sources, most participants have already submitted their letters of guarantee with applications. As a result, the number of participants is not expected to diminish.

All participants face 100-MW capacity limit totals for projects submitted to the first two auctions. Helleniq Energy, power utility PPC and Intrakat already exhausted this limit through the first auction and, as a result, cannot participate in the follow-up procedure.

Virtually all other major energy groups with a market presence in Greece have applied to  participate in the second auction, sources informed. These include, TERNA Energy, Mytilineos, the Copelouzos group, Elpedison, MORE, Enel, EDF, EDPR, BayWa, KiEFER and Faria.

A total of 12 projects were successful in the first auction, securing guaranteed revenues of between 34,000 and 64,100 euros per MWh for a year. A starting price of 115,000 euros per MWh, for a year, has been set for the second auction. Bidding is not expected to drop below 45,000 euros per MWh, for a year, market officials have projected.

 

Low-level fixed tariffs appealing for consumers

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Fixed tariffs, which proved unpopular during the energy crisis as the absence of state subsidies – for this category – made them exorbitant, are now making a strong comeback.

Dubbed “blue tariffs” under the country’s new tariff system set to be introduced January 1, fixed tariffs have regained their appeal among consumers as the mild winter weather conditions in Europe and low natural gas prices have kept wholesale electricity prices at unusually low levels for this time of the year.

This is enabling fixed tariffs to be set at prices not expected to exceed variable green tariffs by more than 3 or 4 cents per KWh when they are also introduced at the beginning of the new year.

To date, five electricity retailers – PPC, Protergia, Elpedison, Heron and Elin – have announced new fixed tariffs, or blue tariffs, ranging between 14.9 and 17.9 cents per KWh. Other suppliers are expected to follow.

At such levels, many consumers are expected to opt for slightly higher-cost fixed tariffs rather than have to go shopping for the lowest-cost variable tariffs each month.

All this applies under the condition that the average wholesale electricity price for December remains at its current average of 105.07 euros per MWh all the way through the end of the month.

The new green tariffs being introduced at the start of the new year will be implemented automatically, for all consumers, unless they formally object and choose other categories.

Retail electricity market shares unchanged in November

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Latest retail electricity market share figures, covering November, showed little change compared to the previous month, data released by the energy exchange has shown.

Power utility PPC’s retail market share edged up to 52.15 percent in November from 51.89 percent in October, the figures showed.

Heron continued to lead the pack of independent suppliers with a 12.94 percent market share, up slightly from October’s 12.79 percent. The Mytilineos group’s Protergia followed with a 7.91 percent market share, marginally down from October’s 8.24 percent, with Elpedison ranked third amongst the independent suppliers, registering a 6.49 percent market share, slightly up from 6.44 percent in October.

Elsewhere, NRG’s market share fell modestly to 5.60 percent from 5.79 percent in October; Watt and Volt captured a 5.12 percent, up from 5.09 percent in October; Fysiko Aerio EEE’s market share was 3.53 percent, up from 3.47 percent; Zenith’s performance rose to 2.31 percent from 2.19 percent; Volterra registered 2.09 percent from 2.20 percent, and Volton edged up to 1.17 percent from 1.15 percent.

 

New round of green tariff discounts by suppliers on way

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The country’s electricity suppliers, both players who have already announced pricing policies ahead of a new tariff system being introduced January 1, and those that have yet to unveil their plans, are preparing to offer a barrage of discounts on new green tariffs, offering consumers further price reductions.

Suppliers are currently indicating that January’s green tariffs with discounts will drop below their initial estimates of between 15 and 17 cents per KWh made earlier this month and reach 14 cents per KWh, or even less, assuming international markets continue along their mild trajectory.

Last January, power utility PPC, the dominant retail player, had offered a subsidized basic tariff of 15.9 cents per KWh for monthly consumption of up to 500 KWh and 22.1 cents per KWh for monthly consumption of over 500 KWh.

Natural gas prices have generally remained subdued of late, enabling electricity suppliers to offer discounts in order to achieve favorable price-comparison impressions once RAAEY, the Regulatory Authority for Energy, Environment, and Water, soon posts green tariff levels offered by all market players onto its website.

For the time being, suppliers can only manipulate their green tariff levels, in an attempt to gain a competitive edge over rivals, through discounts as the basic billing price will remain fixed for six months as of January 1, when they are introduced.

Besides intensifying competition for green tariffs, competition among suppliers is also growing for fixed tariffs, dubbed blue tariffs. Consumers will also be able to choose variable tariffs, dubbed yellow tariffs.

The new green tariffs being introduced at the start of the new year will be implemented automatically, for all consumers, unless they formally object and choose either variable or fixed tariffs.

It should be pointed out that suppliers, based on guidelines released by RAAEY, the Regulatory Authority for Energy, Environment, and Water, had been requested to announce their discounts by December 1.

However, leniency is now expected to be granted to enable a further round of discounts ahead of the January 1 tariff system launch and ultimately lead to lower electricity prices for consumers.

Subdued day-ahead market to result in lower retail prices this January

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The wholesale electricity market’s subdued day-ahead market prices, averaging 109.5 euros per MWh in the first eleven days of December, below the November average and well below predictions of levels between 120 and 122 euros per MWh, appear set to result in lower retail electricity prices in January, 2024, when energy crisis measures will be lifted, compared to levels in January this year.

Assuming no dramatic changes take place in day-ahead market prices during the rest of the month, power utility PPC’s basic tariff rate for January is expected to be set at approximately 14 cents per KWh for monthly consumption levels of up to 500 KWh, and 15.4 cents per KWh for consumption over 500 KWh.

Last January, PPC’s respective rates were 15.9 and 22.1 cents per KWh, following considerable subsidy support for all consumers. Universal electricity subsidies, introduced as a support measure during the energy crisis, will be terminated as of January 1.

Though there are no indications of conditions that could prompt a sharp rise in international wholesale electricity prices by the end of the month, a worst-case scenario lifting the wholesale average to 120 euros per MWh would still not suffice to push PPC’s basic retail tariff above 15.7 cents per KWh for monthly consumption up to 500 KWh and 16.7 cents per KWh for monthly consumption over 500 KWh.

Low-income households relying on electricity for heating should expect tariffs of 11 cents per KWh, once a social support package has been factored in.

Besides the favorable wholesale market conditions, the Greek electricity market’s new system, to offer four types of tariffs as of the new year, appears to have already triggered intense competition.

PPC reiterates compensation request for island generators

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

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

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

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

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

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

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

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

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

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

Energy firms dominate Fortune 500 Europe list’s top spots

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European energy firms have bounced back, as highlighted by their dominant rankings on the first-ever Fortune 500 Europe list, published yesterday.

The Fortune 500 Europe list dispels myths about the continent and also reads like a throwback to the 20th century, when energy and automotive industries were the prime players in the global economy – and companies were led by men.

The list’s top spot is held by British energy giant Shell, with six energy companies and three automotive companies featuring in the top 10. This is starkly different to the US list, where three Big Tech companies—Amazon, Apple, and Alphabet—feature in the top 10. In Europe, the largest pure tech company is SAP, at No. 114, followed by 1990s powerhouses Ericsson (No. 141) and Nokia (No. 147).

One would have to go back to the late 1990s to find a Fortune 500 akin to what the Fortune 500 Europe looks like today. Twenty-five years ago, GM topped the US list with Ford and Chrysler not far behind, and Exxon, Mobil (and GE, to a lesser extent) representing the energy sector in the top 10.

The list of Europe’s largest companies, based on revenue, includes four Greek energy companies, Motor Oil, at No, 213, Helleniq Energy, formerly Hellenic Petroleum (ELPE), at No. 243, power utility PPC, at No. 298, and Mytilineos, at No. 444.

On the diversity front, too, Europe lags the US. Just 7 percent of Fortune 500 Europe companies are led by a woman, compared to 10 percent on the US list, a statistic that questions the continent’s progressive image.

The Fortune 500 Europe list includes companies from 24 different countries, ranging, in size, from Germany’s MTU Aero Engines, with revenues of $5.6 billion, at No. 500, to London-based oil and gas giant Shell ($386.2 billion) at No. 1.

Combined, the 500 European companies generated $13.94 trillion in revenue in the most recent fiscal year.

 

PPC lignite package sales suggest hedging strategy rise

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The results of power utility PPC’s sale of lignite packages between 2021 and 2023 – offered through forward contracts to third parties, an obligation that was recently completed, as the company announced – confirm a rising market trend in hedging strategies compared to the recent past.

An antitrust mechanism adopted in 2021 as part of a wider effort to further liberalize Greece’s energy market offered third parties access to PPC’s lignite-fired electricity production, until recently the lowest cost of generation to which the power utility had exclusive access.

The European Commission had begun expressing concerns about PPC’s monopoly in the Greek lignite market as far back as 2008.

PPC, according to the mechanism’s rules, was obliged to offer third parties quarterly electricity packages corresponding to 40 percent of its lignite-based electricity production in the equivalent quarter a year earlier.

Although the majority of PPC’s lignite packages were placed on the European energy exchange, with just a fraction made available on the Greek energy exchange, the transactions showed participants were keen to hedge.

The European energy exchange offers a far greater product range, compared to the more limited offer of products on the Greek exchange, making it more appealing for prospective buyers.

Enriching the Greek energy exchange with new products, services and activities, all of which would ensure more accurate energy price levels, is a top priority, Alexandros Papageorgiou, the exchange’s CEO, told the Athens Investment Forum earlier this week.

 

PPC retail market share drops 5 percent in September

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Power utility PPC’s retail market share shrunk by over 5 percent in September, compared to a month earlier, contracting to 53.49 percent from 58.69 percent, a drop mostly attributed to a three-way agreement between independent supplier Heron, PPC and cement producer Titan.

For this agreement, PPC signed a 10-year power purchase agreement with Titan for energy generated at PPC power plants that involves Heron as a third-party supplier.

It resulted in PPC shedding some of its market share in the high-voltage market and Heron gaining major ground.

Heron’s high-voltage market share rose to 21.3 percent in September from 11.2 percent in August, while PPC’s share fell to 48.1 percent from 58.5 percent, according to data provided by power grid operator IPTO.

Watt+Volt was another gainer in the high-voltage market, its market share in this category rising to 15.3 percent in September from 12.5 percent in August. Elpedison’s high-voltage market share fell to 11.6 percent from 13.4 percent.

As for the low-voltage category, PPC’s market share slipped to 63.1 percent in September from 65.1 percent August, but suffered a steeper drop, to 33.9 percent from 39.1 percent, in the medium-voltage category.

Most of the independent suppliers recorded overall retail market share gains in September. Heron’s overall market share rose to 11.59 percent, from 8.81 percent in August. Mytilineos’ market share increased to 8.42 percent in September from 7.75 percent in August. Elpedison’s market share rose to 6.16 percent from 5.81 percent. NRG’s rose marginally to 5.69 percent from 5.46 percent. Watt+Volt gained to reach 4.2 percent from 3.41 percent. Fysiko Aerio’s share rose to 3.4 percent from 2.96 percent. Zenith’s share contracted to 2.29 percent from 2.5 percent, and Volterra’s rose to 2.09 percent from 1.83 percent.

ENEL finalizes sale of ENEL Romania to power utility PPC

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Rome, October 25th, 2023 – Enel S.p.A. has finalized its sale to Greek power utility PPC of all the equity stakes held by the Enel Group in Romania, following the fulfillment of all the conditions precedent customary for these kinds of transactions set forth in the related sale agreement, signed on March 9th, 2023. In line with the above agreement, PPC paid a total consideration of approximately 1,240 million euros, equivalent to an enterprise value of around 1,900 million euros (on a 100% basis). An earn-out mechanism is also foreseen concerning a potential further post-closing payment, based on the future value of the retail business.

The overall transaction, excluding the potential earn-out, generated a positive effect on the Group’s consolidated net debt of around 2,080 million euros in 2023, that includes the cash-in of around 200 million euros of extraordinary dividends, which adds to the positive effect of about 85 million euros already generated in 2022.

The transaction also produced a cumulative negative impact for 2022-2023 on reported Group net income amounting to 1,398 million euros, of which 777 million euros in 2023 (including 655 million euros related to the release of the foreign exchange reserve). Conversely, the transaction bears no impact on Group ordinary economic results.

The disposal is in line with the Group’s Strategic Priorities, which envisage the repositioning of Enel on countries where the Group has higher growth potential as well as an integrated presence, namely Italy, Spain, the United States, Brazil, Chile and Colombia.

The Enel Group has been a leading energy player in Romania since 2005, operating in: power distribution with around 3.1 million customers in three key areas of the country, namely Muntenia Sud (including Bucharest), Banat and Dobrogea; supply, providing electricity, natural gas and value-added services; renewable energy, with around 600 MW of capacity; and advanced energy services, such as home services, distributed generation, energy efficiency and electric mobility.

1.6m customers owe €1.2bn in low-voltage electricity bills

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Electricity suppliers are burdened by 1.2 billion euros in unpaid receivables owed by 1.6 million active household and business customers on their customer lists.

Under existing market rules, consumers with unsettled electricity bills remain free to switch suppliers, making legal discourse, a costly and time consuming option, the only option available to suppliers seeking to recover unpaid energy-bill amounts from customers who have fled to rival suppliers.

Energy tourism, as the phenomenon has been dubbed locally, has played a big role in the accumulation of unpaid receivables, and, worse still, bad debt estimated at 1.64 billion euros and accumulated by 1.3 former customers.

The energy ministry is preparing tougher rules, including the introduction of a debt-flagging system, to restrict consumers from switching suppliers if they owe amounts.

According to data provided by RAAEY, the Regulatory Authority for Waste, Energy and Water, an average of 21.5 percent of consumers – from the pool of suppliers –  owe electricity bill amounts to their respective suppliers.

A 20.83 percent share of power utility PPC’s low-voltage customers currently face overdue electricity bills. The percentage of debt-owing customers is even higher for independent suppliers, at 23.66 percent, or 445,000 of 1.88 million customers.

In the medium-voltage category, 10.66 percent of PPC’s 9,600 customers face overdue electricity bills, compared to 20.67 percent of 1,520 customers represented by independent suppliers.

In the high-voltage category, 23 of 210 consumers (10.95%) represented by PPC are behind on their electricity bill payments, compared to 50 of 145 customers (34.25%) represented by independent suppliers.

 

PPC, Mytilineos agree to rise in energy exchange fees

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Power utility PPC and the Mytilineos group have accepted a proposed increase of fees paid to the Greek energy exchange, recognizing, in doing so, the importance of adequate funding for the exchange to ensure its effective functioning.

RAAEY, the Regulatory Authority for Waste, Energy and Water, is currently staging consultation on the matter.

PPC and the Mytilineos group both submitted letters to the authority noting a plan to revise a formula determining fees for the energy exchange is heading in the right direction.

Mytilineos stressed the need to keep additional fees and charges proportional to the size of domestic energy markets in order to strike a balance assuring they operate efficiently at a reasonable participation cost.

PPC offered comments along similar lines, noting the energy exchange’s sustainability needs to be protected so that electricity markets may continue to operate efficiently.

The Greek energy exchange plans to soon introduce new products to both the electricity and gas markets, which will contribute to its ongoing development. It is also preparing a new platform for green-energy bilateral contracts.

The energy exchange’s operating ability will need to be reinforced with additional personnel so that it may respond adequately and effectively to its increase in tasks, an official told energypress.

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.

 

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.

Grid links key to wholesale price convergence, PPC notes

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Grid interconnections play a significant role in determining wholesale electricity prices in coupled markets, power utility PPC has noted, among other things, in a letter submitted to Parliament as a response to a question posed by the main opposition leftist Syriza party, which called for an explanation on Greece’s consistently higher wholesale electricity prices, compared to markets in Europe’s north.

PPC noted that wholesale electricity prices are shaped by domestic energy mixes and demand, as well as grid interconnections shared with neighboring countries, and, by extension, their energy mixes.

PPC, in its response, supported that it makes no sense to compare Greece’s wholesale electricity prices with those of distant European countries that are not directly linked and which have very different energy mixes.

Greater price convergence between Greece, Italy and Bulgaria has been observed ever since the implementation of the Target Model in Greece, roughly three years ago, and especially since the coupling of Greece’s day-ahead market with those of Italy and Bulgaria.

Greater capacities of grid interconnections linking two countries lead to greater convergence in their wholesale electricity prices.

The completion of a second grid interconnection between Greece and Bulgaria, as well as another to offer a capacity boost to the link between Greece and Italy, are two developments that promise to offer even greater price convergence between these countries, PPC noted in its statement.

Further clarification requested on grid reserve service

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Power grid operator IPTO is promoting the establishment of a formula that would enable more efficient and effective management of the system’s reserves, a direction agreed to by market officials, as highlighted by the results of relevant public consultation.

In particular, transitioning from manual reduction of reserves to an automatic system for limiting Balancing Power requirements represents a significant step in modernizing and optimizing power grid operations, market officials have told energypress.

Although this is a technical issue, it ends up financially impacting all technologies used to provide grid back-up options, the officials explained.

Reserves are used to respond to sudden changes in electricity demand or unexpected disruptions in supply, helping to maintain a consistent power supply to consumers.

Energy company Heron and ESAI, the Hellenic Association of Independent Power Producers, stressed, among other things, the need for further clarification on when the need for activation of the reserves service arises, while also calling for assurances that the service would be activated with necessary electricity quantities.

For its part, PPC reiterated a long-standing request for the establishment of a distinct reserve market prior to the use of the day-ahead market as a solution.

DEPA Commercial tender soon for PV parks totaling 495 MW

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Gas company DEPA Commercial aims to announce, by the end of the year, a tender for the design, procurement and development of its first renewable energy projects, energypress sources have informed.

The tender will concern two projects totaling 495 MW, most of this capacity, 400 MW, for solar energy farms in Kozani, northern Greece, plus 95 MW for solar energy farms in Viotia, slightly northwest of the wider Athens area.

DEPA Commercial, which has shaped a new company strategy striving for vertical integration by also becoming an electricity producer, last year acquired New Spesconcept, holding a 222-MW RES portfolio, and North Solar, possessing a RES portfolio of 500 MW.

Besides its entry into the RES sector, with prospective solar energy projects totaling approximately 730 MW, DEPA Commercial also intends to partner with power utility PPC and the Copelouzos group in a new 840-MW combined-cycle power plant being planned for development in Komotini, northeastern Greece.

Also, DEPA Commercial, as part of its new strategy, has undertaken initiatives to expand its wholesale trading activity in foreign markets. This effort has significantly intensified over the past two years.

At present, DEPA Commercial is active in the Austrian, Hungarian, Romanian and Italian markets and has signed agreements to supply gas to Moldova and Albania.

DEPA Commercial, it should be noted, is the first Greek gas company to have become a member of the Hungarian Energy Exchange (CEEGEX).

The Hungarian market represents a pivotal gas trading hub in central Europe and is also located at the northern end of the prospective Vertical Corridor, a route running from Greece to Bulgaria, Romania and Hungary that will be created by interconnecting the transmission systems of these four countries to enable two-way transport of fuel between south and north.

Electricity debt-flagging details discussed by officials today

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The technical details and preparation time for a prospective debt-flagging system to be made available to electricity suppliers as part of an effort to counter strategic electricity bill evaders will be discussed at a meeting today between RAAEY, the Regulatory Authority for Waste, Energy, and officials of distribution network operator DEDDIE/HEDNO, to manage the new system.

Representatives of independent suppliers and power utility PPC are anticipated to take part in today’s meeting, serving as a follow-up to a broader industry-wide discussion regarding electricity bill evasion that took place last week.

It was decided, during last week’s meeting, that RAAEY would provide  the energy ministry, by October 20, with a proposal for a revision to Article 42 of the supply code in the electricity market. This revision will aim to prevent strategic defaulters who owe unsettled amounts from switching to new electricity suppliers without addressing their outstanding bills.

RAAEY will use, as a template, a preceding plan it had prepared and delivered to the energy ministry in the spring of 2021, following three rounds of consultation.

ESPEN, the Greek Energy Suppliers Association, plans, this week, to submit to RAAEY a proposal seeking to allow electricity suppliers to discontinue supply to customers who have two overdue electricity bills, energypress sources informed.

Power utility PPC keeps October tariffs unchanged

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Power utility PPC, the Greek retail electricity market’s dominant player, has announced unchanged nominal tariffs for October.

PPC’s October tariff, for monthly consumption of up to 500 kWh, was left unchanged at 15.5 cents per kWh, as was the supplier’s tariff for consumption levels exceeding this limit, unchanged at 16.7 cents per kWh. The supplier also set a nighttime consumption rate of 11.4 cents per kWh.

Local electricity market rules require suppliers to announce nominal tariffs – not including subsidies – for each forthcoming month by the 20th of every previous month.

Elsewhere, Elpedison set a tariff of 8 cents per kWh for its Value program. Heron announced an October tariff of 13.32 cents per kWh for its Simply Generous Home offer, including a 15 percent quantity-indexed discount, applicable six months on. Heron’s new Generous Guarantee Home program, combining a tariff upper limit of 17 cents per kWh and a punctuality discount of 10 percent, was set at 8.55 cents per kWh.

Protergia announced a rate of 8.88 cents per kWh for its Value Plus package. Watt+Volt announced a nominal tariff of 8.88 cents per kWh for its Value+ program. NRG set a tariff of 8.7 cents for its On Time+ program, including a 40 percent punctuality discount.

Zenith announced a rate of 7.9 cents per kWh for its Power Home for All program and a nighttime tariff of 6.9 cents per kWh. The supplier’s Power Home Go Electric program offers a daytime tariff of 7.5 cents per kWh and a nighttime rate of 6.5 cents per kWh.

Volton set a tariff of 9.45 cents per kWh, including a punctuality discount, for its Volton Energy Control program, whose rate without the discount works out to 12.60 cents per kWh. The company’s new Volton Energy Free program, offered free for the first month and including a punctuality discount, was set at 9.92 cents per kWh. This package’s tariff without the punctuality discount is 12.4 cents per kWh.

Fysiko Aerio kept its October tariff unchanged, offering a rate of 12.4 cents per kWh for its Maxi Free+ program, which, when factoring in an attached punctuality discount, drops to 9.2 cents per kWh.

Elin lowered its October tariff for the company’s Power On! Home Bonus package by 5 percent. As a result, the current month’s tariff of 13.5 cents per kWh for this package will be reduced to 12.8 cents per kWh, including a punctuality discount, in October.

RAAEY proposal tackling ‘energy tourism’ in a month’s time

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RAAEY, the Regulatory Authority for Waste, Energy and Water, commissioned by the energy ministry to prepare a proposal for revisions to the electricity market’s supply code as a means of countering a surge in bad debt faced by electricity suppliers as a result of roving customers who are switching suppliers and escaping from unsettled electricity bills, will put forward its plan for a five-day consultation period, October 9 to 13, before finalizing its text and forwarding a completed version to the ministry by October 20.

This schedule was established at a RAAEY meeting yesterday with energy ministry officials and representatives of the country’s electricity suppliers.

RAAEY will use, as a template, a preceding plan it had prepared and delivered to the energy ministry in the spring of 2021, following three rounds of consultation.

At yesterday’s meeting, electricity supplier representatives raised objections to certain aspects of the existing plan and, it was agreed, will deliver proposed amendments by the beginning of next week. These concerns will be taken into consideration by RAAEY before it finalizes its proposal for the energy ministry.

Power utility PPC and independent suppliers are expected to forward their concerns through ESPEN, the Greek Energy Suppliers Association.

Revisions to the electricity market’s Article 42 of the supply code, which would stop strategic defaulters from fleeing to new electricity suppliers, will include a debt-flagging system, a key part of the previous proposals. This system will be managed by distribution network operator DEDDIE/HEDNO.

Under current market rules, consumers with unpaid electricity bills remain free to switch suppliers. Resulting bad debt is estimated to have reached at least 300 million euros and may have even exceed 400 million euros.

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.

PPC new business plan, worth over €9bn, unveiled November

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Power utility PPC plans to unveil its new and revised business plan, covering 2023 to 2027, at its capital markets day, scheduled for November, following the completion of the energy group’s takeover of Italian group ENEL’s Romanian subsidiary ENEL Romania.

PPC’s new business plan is expected to include investments that exceed the existing 2022-to-2026 plan’s 9 billion-euro sum. The precise figure is expected to be decided on by PPC’s administration in October, once all details of the company’s takeover of ENEL Romania have been completed.

The main focus of PPC’s new business plan will be on renewables and the retail electricity market. PPC has made clear its interest to acquire a company with an extensive retail presence. Appliance retail chain Kotsovolos, a member of the Currys group, is one possibility. Kotsovolos is represented by 93 outlets around Greece.

PPC officials met recently with members of the Romanian government to discuss the ENEL Romania takeover’s completion, expected by the end of September.

The power utility is determined to include this addition in its updated business plan as the move promises to boost the company’s financial figures and facilitate new goals for the Greek and, primarily, Balkan markets.

According to sources, PPC’s five-year business plan from 2023 to 2027 will exceed 1.9 billion euros per year.

PPC initiates 10-year PPA with Titan, Heron serving as supplier

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Power utility PPC has reached an agreement for a 10-year power purchase agreement (PPA) with cement producer Titan, now the second industrial consumer to establish a bilateral energy supply contract with the utility, following metal processing company Viohalco.

PPC’s agreement with Titan, already activated, shares the same structure as the utility’s preceding deal with Viohalco.

As a first stage, the cement producer’s energy requirements will be covered by electricity generated at PPC power plants, both lignite-fired and and hydropower. A third-party supplier, energy firm Heron, will supply PPC’s energy output to Titan.

At a latter date, this PPA will develop into an entirely green-energy deal with all required electricity generated by PPC’s solar parks.

Heron’s involvement in the power utility’s PPA with Titan is expected to further increase the energy firm’s share of the high-voltage market.  It recently rose sharply to 11.25 percent following Heron’s involvement in PPC’s PPA with Viohalco.

PPC chief to take part in Romanian Three Seas meeting

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Greece aims to bolster its geopolitical influence in the Balkans through energy, power utility PPC’s takeover of Italian group ENEL’s Romanian subsidiary ENEL Romania being a key part of this strategy.

In addition to PPC’s takeover of ENEL Romania, Helleniq Energy recently invested in Romania and had been preceded by Mytilineos – both in renewable energy projects.

PPC’s ENEL Romania takeover has prompted an announcement from Romanian president Klaus Iohannis, who named Greece as a new member of The Three Seas, a diplomatic initiative taken by Romania’s political leadership to bring together EU member states and candidates located between the Baltic, Adriatic and Black Seas for collaboration in the fields of energy, infrastructure and the digital economy.

Austria, Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Moldova, Poland, Romania, Slovakia, Slovenia, and Ukraine are the other members of The Three Seas initiative.

Iohannis, Romania’s president, will host a two-day meeting in Bucharest on September 6 and 7 for talks on collaboration in these domains. Ministers and entrepreneurs representing the aforementioned countries, including PPC’s chief executive officer Giorgos Stassis, energypress sources have informed, will take part at the upcoming Bucharest meeting.

Romania has become a geopolitical focal point as a result of the country’s close proximity to war-entangled Ukraine. In addition, Bucharest has established a pivotal role as a result of its support of Ukraine in the war with Russia and Moldova’s EU membership quest. Romania has also facilitated the movement of grain across its borders.

Growing number of pumped-storage projects planned

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Energy storage is witnessing dynamic engagement from market players both domestically and internationally, particularly in the realm of large-scale, pumped-storage technology, a trend underscoring the growing demand for low-cost, eco-friendly energy through renewable energy sources.

The Hollow Mountain project in Scotland, being developed by the Drax group at the Ben Cruachan power facility in the Argyll county, is a notable recent example beyond Greece. The project, to be developed at the slope of a mountain, will more-than-double the power facility’s current capacity of 440 MW.

In Greece, Terna Energy is developing a large-scale 680-MW pumped storage project and is being followed by other groups.

One of these, the power utility PPC, is planning the construction of five pumped-storage stations to offer a total capacity of 1,407 MW, an investment worth over one billion euros and set to add to the group’s current portfolio of pumped-storage stations, currently at 696 MW.

These projects hold the potential to address long-term electricity storage requirements that will emerge due to the expanding integration of renewable energy sources into grids.