RAAEY

RES projects given conditional reference price extensions

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RES projects will be entitled to extensions for tariff reference prices obtained either administratively or through auctions, but, in exchange, investors behind these projects will need to accept lower tariffs, according to a legislative revision submitted to Parliament.

RES projects for which investors have secured tariff reference prices through auctions will be entitled to extensions of up to 12 months.

In order to secure this additional time, investors will need to have submitted procurement agreements concerning equipment for their projects to RAAEY, the Regulatory Authority for Waste, Energy and Water, one month before project launch deadlines.

Investors behind RES projects that have obtained tariff reference prices administratively will be given three additional months to submit declarations of readiness or activation requests to the operator.

An August 31, 2024 deadline included in a previous draft of the now-finalized terms has been extended to November 31, 2024.

Greek-Cypriot-Israeli grid link progressing, delays inevitable

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A prospective electrical grid interconnection planned to link Greece, Cyprus and Israel is making progress but delays seem inevitable, it has been determined following talks in Cyprus between Greek and Cypriot officials.

Greek power grid operator IPTO’s chairman and CEO Manos Manousakis and his deputy Giannis Margaris have just held constructive talks with Cypriot officials on the project.

The IPTO officials informed officials of the Cypriot government and the country’s transmission system operator that they have already commissioned a new cost-benefit study, a prerequisite for the Cypriot government ahead of its decision on whether to participate in this project.

Also, IPTO has forwarded, to the Greek and Cypriot regulatory authorities, an agreement it has signed with Cypriot company Euroasia, the project’s previous promoter, to succeed it at the project’s helm, according to sources at the Greek power grid operator.

This action paves the way for IPTO to be officially declared project promoter of the grid interconnection. However, the Greek and Cypriot regulatory authorities still need to recognize this transfer of project control from Euroasia to IPTO.

Meanwhile, IPTO has already formed a special purpose vehicle (SPV) named Great Sea Interconnector as a subsidiary to be assigned rights and responsibilities concerning the project’s development.

IPTO has repeatedly made note of the need for swifter action, both by the Cypriot government in its decision on whether to participate in the project, and by the regulators for their recognition of the project’s transfer of control. The European Commission has also demanded swifter progress from all parties involved – regulators, operators and governments.

Crucially, Israel has warmed to the prospect of co-developing the project’s second segment that would link the Cypriot and Israeli electrical grids and complete the interconnection, maximizing the benefits to be derived from it.

Debt-flagging system proposal ‘insufficient’, suppliers warn

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A debt-flagging system has been included in proposed revisions for the country’s electricity supply code, put to consultation by RAAEY, the Regulatory Authority for Waste, Energy and Water, in an effort to deal with numerous debt-owing consumers who are systematically switching suppliers to avoid payments, a practice locally dubbed “energy tourism”.

Suppliers are already questioning the efficacy of the electricity supply code revisions proposed as they do not permit supply-cut requests for former customers with arrears.

As a result, suppliers will have no incentive to raise the flag on former customers if they are not able to recover older debt from them, critics of the new proposal have pointed out.

To produce desired results, the debt-flagging system will require a thorough and collective effort from all suppliers.

Under the authority’s proposed revisions, electricity suppliers will only be able to raise the flag on consumers with arrears, for all suppliers to see through a collective data bank, if customers with arrears have failed to respond to installment-based payback requests made by their suppliers.

These installment-based payback requests made by suppliers will need to offer consumers at least six monthly installments.

The debt-flagging system, to be established by distribution network operator DEDDIE/HEDNO, will maintain records of all consumers with electricity-bill arrears as far back as January 1, 2020.

Consumers will be regarded as strategic evaders of electricity bill payments if they have switched at least two suppliers from January 1, 2020 to avoid servicing overdue amounts.

 

Looser supplier switching rules proposed for gas market

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RAAEY, the Regulatory Authority for Waste, Energy and Water, has proposed a relaxation of existing supplier-switching rules in the natural gas market, currently far stricter than corresponding terms faced by consumers in the retail electricity market.

The authority’s proposals for the natural gas market, forwarded for public consultation, would align the sector’s supplier-switching rules with revisions planned for the electricity market, including the incorporation of a new debt-flagging system for customers with arrears.

As is also the case in the electricity market, natural gas consumers who have fallen behind on their energy bill payments will need to be offered installment-based payback arrangements of at least six monthly installments by their supplier before any supply-cut action can be taken.

Under the proposed new terms, natural gas suppliers will not be able to submit supply-cut requests to the distribution network operator against customers with unpaid energy bills unless a 20-day period has elapsed since the payment-date deadline of a second successive overdue gas bill.

Also, consumers with gas bill arrears will have the right to switch suppliers until their gas supplier has issued a supply-cut request.

Electricity suppliers’ windfall earnings estimated at €250m

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A finalized figure, expected imminently, on windfall earnings gained by electricity suppliers between August, 2022 and the end of 2023, the period during which energy-crisis measures were implemented, is projected to reach roughly 250 million euros, energypress sources have informed.

Virtually all windfall earnings will go towards partially covering amounts owed by municipal water supply and sewerage companies (DEYA) to power utility PPC.

RAAEY, the Regulatory Authority for Waste, Energy and Water, completed its windfall earnings calculations last month and has informed the energy ministry of its results.

Authorities still need to determine and factor in a normalization coefficient, which is expected to produce the aforementioned windfall earnings sum of approximately 250 million euros.

The normalization coefficient is designed to adjust megawatt-hours suppliers are charged monthly – based on their declarations submitted to the Energy Exchange – with actual megawatt-hours they have used.

Once this coefficient is finalized, the energy ministry will be able to validate the windfall earnings sum and proceed with its recovery from electricity suppliers.

 

Inaugural Guarantees of Origin auction expected in June

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RES market operator DAPEEP is expected to stage an inaugural Guarantees of Origin auction in June, following anticipated approval of this competitive procedure’s terms in April by RAAEY, the Regulatory Authority for Waste, Energy and Water. A second round of public consultation was recently completed.

The intermediate period between RAAEY’s expected approval of the auction terms next month and the staging of the inaugural auction will be needed by participants as GO auctions will emerge as a completely new procedure for the Greek electricity market.

Following their launch, GO auctions are planned to be repeated every three months.

DAPEEP, the RES market operator, has yet to decide on the quantity of GOs to be offered to participants through the first auction. The operator will make a decision after discussing details with RAAEY.

Auctioning off green certificates issued in 2023 is believed to be one option under consideration. If implemented, green certificates issued so far in 2024 would be placed for auction from the second GO auction onwards.

GOs representing a total renewable energy capacity of 22.4 TWh were issued in 2023, of which 4.44 TWh can be auctioned off at the upcoming inaugural GO session, Maria Koulouvari, Administrator of Renewable Energy Sources and Guarantees of Origin at DAPEEP, told the recent Renpower Greece 2024 conference.

 

Small-scale PVs a risk for grid stability, switch resets needed

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Energy-sector authorities have decided to move ahead with legislation requiring small-scale PV producers to make switch-system adjustments that would prevent their PVs from being disconnected from the distribution network as a result of voltage changes.

Small-scale PVs linked to the distribution network have reached a total capacity of roughly 7.5 GW, making them crucial for grid stability.

Power grid operator IPTO officials have underlined that the matter needs to be dealt with urgently.

At a meeting earlier this week, officials of the energy ministry, RAAEY, the Regulatory Authority for Waste, Energy and Water, power grid operator IPTO, and distribution network operator DEDDIE/HEDNO agreed to push ahead with the legislative revision.

Once implemented, it will require PV producers to have their system switches reset so that their PVs could tolerate voltage changes and not be disconnected from the distribution network.

According to IPTO, switch resetting is a simple procedure that can be performed in just a few minutes by technicians.

Enaon EDA plans €769m in new gas network projects over 5 yrs

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Enaon EDA – formerly the gas distributor DEDA – as the new single distribution network operator under the umbrella of the Italian energy group Italgas has been named, has included 769 million euros worth of investments and just over 113,000 new connections in its new five-year development plan covering 2024 to 2028.

The Enaon EDA plan, through which the company aims to further expand the gas distribution network around the country, was forwarded for public consultation yesterday by RAAEY, the Regulatory Authority for Waste, Energy and Water.

Its projects, promising to add 2,625 kilometers of new networks to the country’s gas grid, concern network expansion projects, interconnection projects, network security and reinforcement projects, energy saving projects, digitalization projects and other investments.

Enaon EDA will allot the biggest proportion of the 769 million euros in investments for projects in the wider Athens area, where a sum of 175.2 million euros in investments is planned. Thessaloniki will follow with projects worth a total of 129.1 million euros. Thessaly comes next with investments worth 105.5 million euros.

DEPA Commercial: LNG truck loading fee inhibiting growth

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Gas company DEPA Commercial has objected to gas grid operator DESFA’s proposal for maintenance, in 2024, of an LNG Truck Loading surcharge at last year’s level of 650 euros per load, preferring, instead, lower fees for this service.

DESFA, defending its price-maintenance position in public consultation conducted by RAAEY, the Regulatory Authority for Waste, Energy and Water, noted that a hike of this surcharge would create more obstacles for the LNG Truck Loading service and possibly destabilize the market, while a reduction jeopardize the recovery of related investment costs.

DESFA, as a result, concluded that maintaining the LNG Truck Loading surcharge’s current level would offer stability to the market by enabling users to further test the new LNG Truck Loading service and enhancing market growth.

Expressing its disagreement, DEPA Commercial called for a reduction of the LNG Truck Loading surcharge, stressing it was introduced as a temporary fee that would become permanent if DESFA’s stance on the matter were adopted.

Elaborating further, DEPA Commercial pointed out that the cost burden on users, which is ultimately passed on to consumers in the retail market, would lead to two adverse effects. Firstly, LNG slot-reservation growth would be inhibited and, secondly, LNG market penetration would become more difficult for industrial consumers and others who are distanced from networks and would prefer to stop using higher polluting fuels.

The LNG Truck Loading service was launched last November following a trial run in spring, 2023 with participation from Blue Grid, DEPA Commercial and Motor Oil Hellas.

Ministry, RAAEY, IPTO discuss grid-connection cost coverage

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Officials of the energy ministry, RAAEY, the Regulatory Authority for Waste, Energy and Water, and power grid operator IPTO held a meeting yesterday to discuss details concerning a ministry plan requiring electricity producers (RES producers, gas-fueled power stations) to cover half the amount of their grid connection costs.

The focus of the meeting was on IPTO as distribution network-related amounts, which concern DEDDIE/HEDNO, the distribution network operator, are minimal.

RAAEY officials reiterated concerns that the energy ministry’s formula could force IPTO to significantly increase network usage surcharges.

However, according to the ministry, a formula requiring grid users to cover 50 percent of grid connection costs does require further examination as this approach may end up being regarded as incorporating state aid and could trigger complaints to the European Commission, which has not approved the plan.

The energy ministry will submit a related enquiry to KEMKE, the finance ministry’s Central State Aid Unit. Should this agency deem that the energy ministry’s formula represents a form of state aid, the ministry could inform Brussels for clarity on whether its plan breaches EU law.

Consumer switching measures forwarded for consultation

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New measures designed to restrict consumers with unfavorable payment records from switching electricity suppliers are scheduled to be forwarded for public consultation this week by RAAEY, the Regulatory Authority for Waste, Energy and Water.

Consumers, both residential and non-residential, identified as being responsible for overdue electricity bills by at least two suppliers would be denied the right to switch supplier, according to one of the measures.

The other measure to be forwarded for public consultation would enable power suppliers to instruct the network operator to deactivate consumer power meters as a result of overdue electricity bills.

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

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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.

Producers’ even share of grid-connection costs unchanged

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The energy ministry intends to keep unchanged a formula limiting power grid operator IPTO’s cost coverage of projects connecting electricity producers to the grid to 50 percent of the cost, ministry officials have told energypress.

In doing so, the ministry has backed IPTO following a challenge by RAAEY, the Regulatory Authority for Waste, Energy and Water, over the formula evenly splitting the cost of grid-connection projects between the operator and electricity producers.

IPTO contends the ministry has opted for a 50-50 formula as part of its effort to accelerate RES investments, increase the energy-mix share of renewables, and achieve national energy-transition targets.

The energy ministry plans to implement a stricter cost-control monitoring system for these projects, as they are carried out by the users, themselves. A formula designed to objectively determine the cost of grid-connection projects is expected to be introduced as a key tool in this monitoring plan.

In July, 2022, the government ratified legislation requiring electricity producers to cover 50 percent of the cost of their grid-connection projects.

This 50 percent cost-coverage requirement concerns renewable energy projects, development of transmission lines connecting thermal power plants, energy storage units, as well as high-voltage consumers.

RAAEY’s Energy Ombudsman service proving useful

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An Energy Ombudsman launched by RAAEY, the Regulatory Authority for Waste, Energy and Water, on February 1 for resolving disputes between consumers and suppliers or market operators is provi ng useful, early data on the new service has indicated.

Some 50 applications concerning disputes, primarily pricing disputes, have already been submitted, but ten of these have not been accepted by the Energy Ombudsman as their cases are currently being examined by other agencies and decisions are still pending, energypress sources informed.

Two cases have already been settled through the new RAAEY service, while outcomes on the others are pending.

Consumers can only resort to the new Energy Ombudsman fcr settlement of disputes if they have not already filed cases to other agencies or courts.

Consumers must first raise their cases with their supplier or the relevant market operator and, if they deem the response as insufficient, can then turn to the Energy Ombudsman for help.

Besides pricing disputes, other disputes that may be settled through the Energy Ombudsman, covering both the electricity and natural gas markets, could include disagreement over clauses, consumption levels, as well as energy-bill ambiguities.

 

Next step taken for gas system upgrade’s market test

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Gas grid operator DESFA is preparing to take a next step towards a binding stage for a market test concerning an upgrade and expansion of the Greek gas transmission system by putting the procedure’s guidelines to public consultation, energypress sources have informed.

Based on the foreseen procedure, the guidelines, along with all project proposals, will be submitted to RAAEY, the Regulatory Authority for Waste, Energy and Water, for approval ahead of the beginning of the market test’s binding stage, planned for May.

The market test’s overall procedure began last year with a non-binding stage that attracted grid-capacity requests covering 2024 to 2050 from a total of 27 companies.

Seventeen of the 27 requests were submitted by companies from abroad, mainly central and southeast Europe, as well as the USA. This turnout highlights Greece’s upgraded role on the regional energy map. The other ten requests were submitted by Greek companies.

Authorities are less confident of a solid turnout by investors in the binding phase as demand for natural gas has been on the decline.

 

RAAEY wants tariff clarification from electricity suppliers

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RAAEY, the Regulatory Authority for Waste, Energy and Water, has requested clarification from electricity suppliers on tariff details included in packages offered to consumers in order to ascertain that they comply with the relevant regulatory and statutory framework.

One of the authority’s concerns has to do with cases of differential pricing in accordance with consumption levels and whether this constitutes one tariff or two different types of tariffs.

Another ambiguity needing clarification concerns fixed costs being charged by suppliers. The authority is digging deeper into how these are defined by suppliers and charged each time.

In any case, the situation in the market seems to be levelling out, at least compared to a month ago, with companies increasingly adapting to new conditions created by a new color-coded tariff system introduced January 1 to improve the price-comparing ability of consumers.

Under the new system, suppliers offer green and yellow variable tariffs – the latter represent a lesser risk for suppliers as their levels are set at the end of each month – and fixed blue tariffs.

Suppliers’ windfall earnings estimated to reach €200m

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Electricity supplier windfall earnings between August, 2022 and the end of 2023, the period during which energy-crisis measures were implemented, are expected to reach roughly 200 million euros, RAAEY, the Regulatory Authority for Waste, Energy and Water, has estimated.

The exact sum cannot yet be finalized as a couple more factors still need to be taken into account.

Power utility PPC still needs to provide RAAEY with related figures concerning the final quarter of 2023, while distribution network operator DEDDIE/HEDNO must forward a “normalization coefficient” concerning megawatt-hour rates suppliers are charged each month based on declarations they submit to the energy exchange.

The bigger the normalization coefficient to be forwarded by DEDDIE/HEDNO to RAAEY, the lower the resulting windfall earnings will be.

Suppliers will need to make windfall-return payments over two installments, the first of which will represent 60 percent of their respective amounts.

The sums to be received, it has been decided, will be allocated almost exclusively to partially servicing debt owed by municipal water supply and sewerage companies (DEYA) to power utility PPC.

New meeting in March for west Balkans energy integration

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

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

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

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

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

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

 

 

 

 

RAAEY price comparison tool set for March 4 introduction

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RAAEY, the Regulatory Authority for Waste, Energy and Water, is set to launch a price comparison platform (www.energycost.gr) on March 4, one of three new platforms to be introduced by the authority over the next few months in an effort to support household and businesses and promote energy-market transparency.

This platform will enable households and businesses to get a personalized picture on the level of charges for products they are interested in. Users will be able to enter their monthly consumption figures into the platform for tariff comparisons.

RAAEY’s ultimate goal is to enable users to change supplier through the platform should they spot an appealing tariff offer.

The www.energycost.gr platform’s introduction will be followed by a price-comparison tool focused on electromobility. Its launch is planned for April 1. It will list all charging stations, their geographical location, based on a GPS system, and their prices.

A third tool, expected to be introduced in June, will enable consumers to anonymously report possible market distortions or illegal behavior in energy markets. RAAEY will investigate reported cases and take action if necessary.

Green-energy Guarantees of Origin auction delayed

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RES market operator DAPEEP’s inaugural auction offering Renewable Energy Guarantees of Origin, appears set to be delayed by at least two months as its set of rules have yet to be approved by RAAEY, the Regulatory Authority for Waste, Energy and Water. The inaugural auction had been planned for within the first fortnight of January.

RAAEY deemed that numerous revisions were made to the auction’s proposed regulations following comments submitted during public consultation and, as a result, has decided that an additional round of consultation is now needed so that interested parties may be informed and given an opportunity to comment on these changes, sources informed.

The authority is expected to officially decide on an additional round of consultation for the auction at a board meeting either today or next Thursday.

As a result of the changes, the inaugural auction is now not expected any sooner than late March. DAPEEP is believed to be ready to stage the auctions from a technical point of view.

The auction will offer Guarantees of Origin by RES plants operating from January 1, 2021 onwards.

The procedure will include linking the Greek register of Guarantees of Origin with corresponding European registers, establishing a connection with all markets on the continent.

Grid fee hike if producers take on 50% of expansion costs

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RAAEY, the Regulatory Authority for Waste, Energy and Water, has warned the energy ministry that a decision it has reached to make electricity producers responsible for half the cost of expanding electrical distribution and transmission networks would significantly increase regulated network usage surcharges included in electricity bills.

The authority forwarded a letter to the ministry last Thursday to highlight the dangers of this measure, which has been facilitated by a legislative revision ratified back in the summer of 2022.

Surcharges concerning the country’s transmission network, managed by power grid operator IPTO, would be particularly affected, RAAEY noted in its letter.

However, the distribution network, operated by DEDDIE/HEDNO, the distribution network operator, would be less exposed to surcharge increases as it caters to RES producers and concerns lines that do not serve consumers but are connected to privately owned high or medium-voltage substations, new or existing, as well as network extension projects of less than 100 meters in length for connecting individual generators.

Swifter H2 framework action needed to secure EU funds

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Procedures to establish a regulatory framework on hydrogen, biomethane and CCS need to be accelerated, otherwise the country risks missing out on crucial EU support funds promoting these sectors through the Energy Transition Fund, market sources have stressed. The regulatory framework needs to be finalized by a June 30 deadline.

Officials at RAAEY, the Regulatory Authority for Waste, Energy and Water, and the energy ministry are currently engaged in talks with market players interested in developing hydrogen-related projects but needing clarity.

The emergence of the hydrogen market as a new market poses regulatory and operational questions. It is not yet clear how these responsibilities will be distributed.

Though final decisions have yet to be taken, the energy ministry appears inclined to appoint RAAEY as the hydrogen sector’s regulatory authority and gas grid operator DESFA as its operator, as the sector will use networks already managed by this operator, energypress sources have informed.

As for distribution, the ministry appears likely to take the course taken in other European markets, where the role of distribution network operator is performed by companies that make the investments, resulting in multiple small distribution systems.

Electricity suppliers set to offer new shorter-term fixed tariffs

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The majority of the country’s electricity suppliers are reportedly set to announce new fixed tariffs as soon as RAAEY, the Regulatory Authority for Waste, Energy and Water, makes an official announcement, expected today, authorizing 6 and 8-month fixed tariffs, in addition to one-year fixed tariffs already offered through Greece’s recently introduced new tariff system.

In the lead-up to the RAAEY announcement, the energy ministry is expected to clarify, to the authority, details of related ministerial decision that was deemed to contain certain ambiguities.

Competition between suppliers is expected to intensify for fixed tariffs, growing in appeal to consumers who view anticipated rates at levels of as low as 11 cents per KWh over shorter-term periods as an attractive and secure option.

Under the latest revisions, suppliers will be able to include termination clauses in their terms for fixed tariffs.

A color-coded tariff system was introduced in Greece on January 1 to simplify the price-comparing ability of consumers.

Fixed tariffs have been dubbed blue tariffs, while variable tariffs are offered as either yellow or green tariffs, the former representing a lesser risk for suppliers as their levels are set at the end of each month.

Fixed-tariff rivalry intensifying, appealing rates expected

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Competition between electricity suppliers is set to intensify in the fixed-tariff category following the energy ministry’s decision to slash the required minimum duration of fixed tariffs to six months from 12 months, as was initially set under the country’s new tariff system, launched January 1.

Suppliers are expected to offer appealing fixed tariffs of 6, 8 and 12 month durations when they announce their latest offers tomorrow. Fixed tariff rates are expected to reach roughly 11 cents per KWh, possibly even lower.

Besides fixed tariffs, or blue tariffs – according to the new color-coded tariff system designed to simplify price-comparing ability – consumers may also choose from variable green tariffs and variable yellow tariffs, the latter representing a lesser risk for suppliers as their levels are set at the end of each month instead of the beginning.

Latest fixed-tariff rates to be announced tomorrow by suppliers are most likely to dominate customer attention as they are expected to be set at levels below those of variable green tariffs, which should range between 12 and 14 cents per KWh, and lower than pre-energy crisis tariffs offered by suppliers.

If the wholesale electricity market continues along its downward trajectory, at levels below 30 euros per MWh, then variable green tariffs to be offered in March should fall even lower than the anticipated 11 cents or so per KWh anticipated for fixed tariffs in February.

Meanwhile, RAAEY, the the Regulatory Authority for Waste, Energy and Water, has set a February 12 date for a hearing concerning energy supplier Fysiko Aerio’s 8-month fixed tariff, offered January 1, when the minimum duration for such tariffs was still 12 months.

Though it is seen as less of an issue now that the ministry has halved the 12-month minimum requirement for fixed tariffs and other suppliers are set to join in with shorter-term fixed tariffs, a fine for Fysiko Aerio has not been ruled out.

PPC dominating low-voltage supply despite greater customer outflow

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Power utility PPC remained the dominant low-voltage supplier up until November, 2023, despite shedding an increased number of customers in the three months leading to the year’s second-last month, data published by RAAEY, the Regulatory Authority for Waste, Energy and Water, has shown.

Consumers using a total of 6,500 low-voltage power meters left PPC during the seven-month period from February 1, 2023 to the end of August, but this outflow tripled to 18,500 power meters over the three-month period between September through November.

Independent energy supplier Zenith gained the most customers over the ten-month period from February through November, adding 45,000 customers to its list, 19,300 of these in the latter three months. Fysiko Aerio followed with 18,900 new customers during this ten-month period, while Elpedison was next with 13,200 additions.

Protergia continued to lead the pack among the independent suppliers, boosted by its takeover of Watt & Volt. Combined, the two companies shed a small number of customers in 2023, compared to the previous year.

The country’s universal supply service – or five biggest electricity suppliers, in terms of retail market share, required by law to cover the needs of black-listed consumers who have been shunned by suppliers over payment failures – remained relatively steady in 2023, losing just 1,100 customers. It was ranked seventh, overall.

 

Standalone battery interest surges to 12 GW, data shows

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Investment interest in standalone batteries has surged, as highlighted by applications submitted by investors, to power grid operator IPTO, seeking grid access for roughly 230 standalone battery projects representing 11,970 MW, or just under 12 GW.

This capacity greatly exceeds energy-storage objectives included in a revised 2030 National Energy and Climate Plan that has been forwarded to the European Commission for approval.

According to the revised NECP, Greece’s energy-storage target for 2030 is not expected to exceed 3.1 GW. This target includes standalone batteries as well as batteries linked to RES units.

Projects for which investors are currently seeking connection terms even suffice for the achievement of energy-storage objectives at the end of the next decade.

This surge in energy-storage interest is expected to continue, further extending the waiting list of applicants. As has already become clear, a large proportion of these project applications will not be materialized.

A total capacity of between 1,500 and 1,700 MW for standalone batteries will be offered through three auctions, the second of which is now in progress. RAAEY, the Regulatory Authority for Waste, Energy and Water, intends to complete its appraisal of offers on February 8 before announcing a list of successful bids on February 15.

 

RAAEY energy sufficiency plan for non-interconnected islands

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

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

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

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

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

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

New market rules adjusted to allow shorter-term fixed tariffs

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The energy ministry is preparing to adjust the country’s new electricity tariff rules so that suppliers may be permitted to offer fixed tariffs with durations of less than a year, the objective being to enhance the new system’s flexibility.

RAAEY, the Regulatory Authority for Waste, Energy and Water, recently warned that the new electricity tariff system, launched January 1 and color-coding variable and fixed tariffs in an effort to simplify price comparisons for consumers, was in danger of proving ineffective as products offered by some suppliers were not fully abiding by a set of rules established by the authority.

The authority focused on energy supplier Fysiko Aerio’s 8-month fixed blue tariff, fearing it could lead to price comparability issues against the new system’s conventional 12-month fixed blue tariff.

RAAEY officials suggested Fysiko Aerio’s 8-month fixed tariff has taken advantage of an exception provided for in the new supply code, which, under certain conditions, permits supply contracts with a duration of less than one year.

The new electricity tariff system also includes yellow and green tariffs, both variable tariffs, though the former represent a lesser risk for suppliers as their levels are set at the end of each month.

A number of energy suppliers are believed to be awaiting the ministry’s revision in order to offer fixed tariffs with durations of less than a year. The ministry is expected to make the rule revision within the next few days.

Cretan grid set for revamp to enable 2 GW in RES projects

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The imminent completion of an electrical grid interconnection to link Crete with Athens, a prospect now just months away, will pave the way for a full transformation of Crete’s network through upgrades of existing cables and development of new lines which, once ready, will enable the island’s grid to host just over 2 GW in renewable energy projects.

Power grid operator IPTO’s deputy chief Giannis Margaris discussed project details on Cretan TV during a visit to the island to oversee work on the grid interconnection with Athens.

The choice of the Damasta area, located in the island’s mid-north, as the finishing point of the Athens-Crete cable, is strategically positioned to facilitate power distribution to the rest of the island, the IPTO deputy noted during the interview.

IPTO’s planning takes into account Crete’s grid interconnection with the Peloponnese and – its extension to – Athens; a plan to link the Greek electrical grid, from Crete, with those of Cyprus and Israel; development of new RES units on Crete; as well as the energy security factor, or the ability to reverse energy flow should any emergency arise due to technical issues.

IPTO’s ten-year development plan covering 2024 to 2033, which has been submitted to RAAEY, the Regulatory Authority for Waste, Energy and Water, for approval, includes projects designed to reinforce the Cretan grid.

These are budgeted at 12.9 million euros, until 2024, and 12.79 million euros, until 2025, with a completion target set for 2027.

RAAEY concerns over tariff color-coding system issues

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RAAEY, the Regulatory Authority for Waste, Energy and Water, has warned the country’s new electricity tariff system, launched January 1 and color-coding variable and fixed tariffs in an effort to simplify price comparisons for consumers, could prove ineffective as products offered by some suppliers are not fully abiding by a set of rules established by the authority.

RAAEY wants swift action taken so that issues already identified may not spread. It fears wrongful supplier actions may be imitated by rivals and take the country’s retail electricity back to its unclear state, for consumers, prior to the implementation of energy crisis emergency measures in August, 2021.

The energy ministry, on the other hand, believes the new electricity tariff system should be judged on its benefits it promises to consumers, in other words, intensified competition and electricity price reductions.

Energy supplier Fysiko Aerio’s 8-month fixed tariff is one of the new products that have raised concerns at RAAEY as, according to the authority, it may have comparability issues with the new system’s conventional 12-month fixed blue tariff.

RAAEY officials appear to believe this 8-month fixed tariff takes advantage of an exception provided for in the supply code, which, under certain conditions, permits supply contracts with a duration of less than one year.