New RES spatial framework identifying wind energy areas

An energy ministry committee working on Greece’s updated spatial framework for RES facilities, an effort now into its second stage, has been tasked with accurately identifying the country’s Wind Priority Areas (PAP) and Wind Suitability Areas (PAK).

The committee plans to identify these areas in collaboration with the Center for Renewable Energy Sources (KAPE/CRES) and RAE, the Regulatory Authority for Energy, the aim being to redefine exploitable wind energy potential in PAP and PAK areas, a decisive factor for the design of wind energy installations.

The energy ministry intends to consider the inclusion of areas for which strong investment interest concerning RES installations has been expressed.

The current RES spatial framework’s ground coverage limits for PAP and PAK areas, standing at 8 and 5 percent per municipality, respectively, will be adjusted to ensure RES installation capacities in PAP areas are greater than those in corresponding PAK areas.

As for the solar energy sub-sector, revisions to be considered by the committee include reducing the maximum soil coverage of PVs on farmland to 3 percent per region.

Furthermore, the revised framework’s new regulations for offshore wind farms will need to be adjusted to accurately reflect those of the National Offshore Wind Farm Development Program. This initiative will be conducted in cooperation with EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company.

Delivery of the updated RES spatial framework has been given a deadline extension until the end of March, 2024, based on a recent energy ministry decision.

RAE, IPTO pushing ahead to integrate traders into intraday market

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

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

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

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

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

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

Operator’s green Guarantees of Origin auction rules nearing approval

DAPEEP, the RES market operator, is working on a third round of revisions for regulations concerning Renewable Energy Guarantees of Origin auctions, which it aims to deliver to RAE, the Regulatory Authority for Energy, for approval by the end of this month, energypress sources have informed.

Renewable Energy Guarantees of Origin, providing transparency to consumers on the proportion of electricity that suppliers source from renewable generation, are required of all EU member states.

If RAE approves the plan within June, the country’s first auction offering Renewable Energy Guarantees of Origin can be expected to be staged by December as, according to existing law, a first auction must be staged within six months of the plan’s approval.

Two rounds of consultation, one involving RAE and market players, the other RAE and DAPEEP, have already been staged as part of the procedure shaping regulations for Renewable Energy Guarantees of Origin auctions.

A new information system to be prepared by DAPEEP for its Renewable Energy Guarantees of Origin will link the operator’s platform with the online system of AIB, the Association of Issuing Bodies. DAPEEP is one of 24 AIB members in Europe authorized to issue Renewable Energy Guarantees of Origin.

Renewable Energy Guarantees of Origin auctions promise to create new conditions in Greece for the establishment of green electricity tariffs for consumers wishing to support the decarbonization of the country’s energy mix.

PPC supply security plan for islands in summer approved

RAE, the Regulatory Authority for Energy, has approved a power-generator rental plan prepared by power utility PPC to meet sharply higher summer-season electricity demand on Samos, Chios, Santorini, Rhodes, Lesvos and Kastelorizo.

“Supply security at non-interconnected islands is a national priority and it is therefore necessary to take appropriate measures to avoid risks related to their electricity supply,” RAE announced.

The cost of such emergency measures is funded through public service compensation (YKO) surcharges included in electricity bills.

PPC’s emergency rental plan, to run from July 1 to August 31, includes a 12-MW power generator for Samos, a 25-MW unit for Chios, a 20-MW facility for Santorini, an 18-MW unit for Rhodes, a 14-MW facility for Lesvos and a 0.15-MW power generator for Kastelorizo.

All 4 bidders seeking Ariadne Interconnection 20% advance

All four first-round entrants in a tender offering a 20 percent stake in Ariadne Interconnection, a subsidiary founded by power grid operator IPTO to specifically develop the Crete-Athens grid interconnection, have qualified for the procedure’s next stage following approval by RAE, the Regulatory Authority for Energy.

GEK-TERNA; a partnership involving Macquarie Super Core Infrastructure Fund and Phaethon Holdings (Copelouzos group); Italian operator Terna SpA; and StateGrid International Development Belgium are the four entrants advancing to the tender’s second round.

IPTO tasked RAE with an appraisal of the tender’s first-round entrants to safeguard the overall procedure from any prospective legal challenges.

One matter inspected by RAE was whether participation by entrants active in electricity production could lead to conflict of interest.

The authority also decided that China’s SGCC, IPTO’s strategic partner with a 24 percent stake, is eligible to participate in this tender, through its Belgian subsidiary StateGrid International Development Belgium.

Mytilineos uses aggregator permit for country’s first demand-response transaction

The Mytilineos group, through a portfolio including its Aluminium of Greece company, has become the country’s first company to use an aggregator (FOSE) permit in a demand-response program, established as part of an EU proposal aiming to reduce energy consumption by 5 percent.

The Mytilineos group conducted its first such transaction on May 28, energypress sources informed.

In the lead-up, RAE, the Regulatory Authority for Energy, had approved a 500-MW permit for Mytilineos to use in this demand-response program, while power grid operator IPTO conducted trial runs to ensure the system’s platform was ready to operate.

The demand response system enables variation of electricity consumption by end-users such as commercial and industrial enterprises in order to balance the electricity network during periods of peak production or consumption.

Sympower Greece, also holding a 500-MW aggregator permit for the demand-response program, has registered to participate but had not conducted any transactions until last Friday, the sources noted.

NRG holds a 100-MW aggregator permit for the the demand-response program, Optimus Energy possesses a 350-MW permit, power utility PPC holds a 1,500-MW permit, and Elpedison holds a 500-MW permit. These companies are believed to be preparing to conduct their first aggregator demand-response transactions.

 

IEA: Greece needs to hold back on central role of natural gas

Elevated natural gas prices combined with Greece’s effort to end its dependence on Russian supply raise questions about the central role Athens is placing on gas as a transitional fuel, the International Energy Agency IEA has noted in a special report on Greece.

Greece’s current dependence on natural gas can be considered incompatible with the country’s climate policy, the reported notes, adding that investments in gas network expansion would be better directed towards energy efficiency, renewables and storage.

The government needs to reexamine and rationalize the role of natural gas in the energy sector and related policies to avoid projects that will come to nothing, the IEA report warned.

Until now, competition has remained limited in the Greek electricity and gas markets, with large players in dominant positions, the reported noted, adding that both the government and RAE, the Regulatory Authority for Energy, must continue their efforts to ensure a high degree of liquidity, transparency and competition.

RAE, according to IEA, is severely understaffed and faces difficulties in offering appropriate remuneration to attract competent and experienced staff.

Necessary experience and capacity for performing tasks may be lacking at RAE, shortcomings which could jeopardize further market reforms, the IEA report noted, while also expressing concerns about a lack of independence at RAE restricting its ability to perform.

RAE deciding on Ariadne Interconnection 20% stake shortlist

A shortlist of second round qualifiers in a tender offering a 20 percent stake in Ariadne Interconnection, a subsidiary founded by power grid operator IPTO to specifically develop the Crete-Athens grid interconnection, is expected to be decided on by RAE, the Regulatory Authority for Energy, at a meeting today.

Participants approved by the authority will advance to the tender’s second round for binding bids.

A total of four participants entered the tender’s first round, these being Macquarie Super Core Infrastructure Fund & Phaethon Holdings; GEK-TERNA; Italy’s Terna SpA; and StateGrid International Development Belgium.

The regulatory authority needs to decide which of these entrants fulfil conditions and terms for qualification to the second round of this tender, staged by IPTO.

The operator has tasked RAE with this appraisal, the objective being to safeguard the overall procedure from any prospective legal challenges. One of the matters being inspected by RAE is whether entrants active in electricity production can take part, as this could lead to conflict of interest.

Another is whether China’s SGCC, IPTO’s strategic partner with a 24 percent stake, is eligible to participate in this tender, through its Belgian subsidiary StateGrid International Development Belgium.

Work on the the Crete-Athens grid interconnection is in progress, IPTO recently informed.

Full support for GREGY Interconnector’s PCI/PMI bid

The GREGY Interconnector, a 3.5 billion-euro project being promoted by Elica, a subsidiary of the Copelouzos group, to link the Greek and Egyptian grids, is fully backed by the Greek energy ministry, RAE, the Regulatory Authority for Energy, Egypt and Bulgaria, a presentation in Brussels last Friday of European projects seeking PCI/PMI list inclusion has shown.

This Greek-Egyptian grid interconnection, whose cable is planned to cover a 950-km distance, promises to transmit green energy to Europe.

Greece, it has become apparent, favors the development of the GREGY Interconnector over the Eunice Group’s alternate GAP Interconnector for a Greek-Egyptian grid link.

Hundreds of European projects seeking PCI/PMI list inclusion, which will secure EU support funds, were presented at last Friday’s Brussels event, staged by the European Commission’s Directorate-General for Energy.

Support for PCI/PMI list candidate projects by relevant ministries, respective national regulatory authorities, as well as states involved will weigh heavily in the European Commission’s overall assessment.

The GREGY Interconnector should score highly in this department, given the comprehensive support of the project by all parties involved.

Besides official Greek and Egyptian support, the GREGY Interconnector has also received Bulgaria’s backing as it promises to export Egyptian-generated green energy to the country.

Brussels’ shortlist of PCI/PMI projects is expected to be announced in June, while a finalized list should be announced late in the year.

 

New offers not posted by 20th of each month ‘not permitted’

RAE, the Regulatory Authority for Energy, seeking to restore order in the retail electricity market, has briefed suppliers that they cannot launch any new offers to consumers if these have not been announced by the 20th of each month, for each forthcoming month, as required by recently introduced rules.

The authority, in a document forwarded to all the country’s suppliers, has stressed that all offers intended for each forthcoming month must be announced by the 20th of each preceding month. No additional offers are permitted beyond this date, RAE underlined.

Although rules on this requirement were introduced approximately nine months ago, suppliers, in more recent times, have tended to wait for power utility PPC, the dominant market player, as well as for fellow independent suppliers, to announce their offers for each forthcoming month before adjusting accordingly with delayed offers of their own, as late as the next day.

Suppliers have been found to offer below-cost tariffs as temporary pullers aimed at luring new customers before adjusting these offers to regular rates.

In additional action, RAE also plans to develop a series of new price-related measures, including a price-comparison tool, a retail monitoring tool, a new data base, an energy-savings platform offering households tips, as well as a RAE online platform offering consumers advice over tariff disputes with suppliers.

 

 

DESFA opts to not extend expiring FSU deal for LNG terminal

Gas grid operator DESFA will not make use of an option to extend its expiring one-year lease agreement for an additional floating storage unit installed at the operator’s LNG terminal on the islet Revythoussa last summer as an energy security measure, the operator’s head official has informed.

“We have already agreed with RAE, the Regulatory Authority for Energy, that it [agreement] will not be renewed and the tanker will be released as it was a temporary solution that served the need to maintain strategic LNG stocks for power generators during the winter period,” Maria Rita Galli, CEO at DESFA, told Greek daily business newspaper Nafteboriki.

The current one-year FSU agreement, worth 20 million euros, expires in June. It ended up being a high-cost solution for DESFA as a result of the mild winter conditions as well as LNG quantity loss resulting from evaporation issues at the upper level of the FSU, a situation that could have been greatly restricted had a decision been reached to connect this unit to the Revythoussa terminal for direct transmission into the grid.

DESFA is believed to be examining the prospect of renting a new tanker for a shorter duration of five months, which would entail far lower cost, energypress sources have informed. If so, DESFA is expected to stage a tender within the upcoming summer for a new LNG tanker lease agreement.

Market officials anticipate the installation of a replacement LNG tanker will probably be needed to cover natural gas storage needs ahead of next winter.

The additional FSU currently in use increased the Revythoussa LNG terminal’s capacity by 70 percent, to approximately 370,000 cubic meters.

Green aggregators playing an increasingly crucial role

Green aggregators, representing RES producers in the market, are offering power purchase agreements (PPAs) for durations now reaching up to ten years, as is customary in more mature markets abroad, and, as a result, are developing into a key part of the sector offering bilateral green-energy contracts.

Until recently – during a transition period that has enabled RES projects to directly participate in the market – nominal durations of PPAs, reaching up to 20 years, were rarely honored, their average duration lasting just two to three months, and, in certain cases, about a year.

Upfront determination of PPA cost is vital information for banks assessing projects, subsequently increasing their chances of securing financial support. Otherwise, if RES producers with PPAs turn to banks for project support but do not incorporate PPA costs into their loan applications, banks will attach PPA price levels based on figures provided by consultants, which tend to be overestimated.

Green aggregators are specialized and innovative companies applying sophisticated market tools for optimal commercial management of green-energy plants, achieved by minimizing balancing costs and making accurate production forecasts.

Given the deepening energy-mix penetration of renewables, as well as the complexity of their market participation, an extremely difficult task for RES producers to handle alone, green aggregators are playing an increasingly crucial role.

Up until December, 2022, a total of 33 green aggregation licenses were granted for a total capacity of 16.1 GW, according to data provided by RAE, the Regulatory Authority for Energy.

Unchanged 50% socialization rate for LNG terminal proposed

Gas grid operator DESFA, in a proposal forwarded to RAE, the Regulatory Authority for Energy, has suggested that the socialization cost-coverage percentage at its Revythoussa LNG terminal remain unchanged at the present level of 50 percent over the next four-year regulatory period running from 2024 to 2027.

DESFA delivered its proposal after conducting a cost-benefit analysis whose results showed that the net benefit of the socialization of the Revythoussa LNG terminal just off Athens increases with the utilization of other LNG terminals in Greece.

A greater cost socialization rate for the Revythoussa LNG terminal helps further reduce wholesale gas prices in Greece as the price of LNG, which is the marginal fuel determining the marginal price, is reduced.

On a wider scale, this price reduction enables lower gas supply prices for the Greek market as well as neighboring markets.

DESFA, which last carried out a similar study in 2020, is required to do so every two years based on socialization cost rules for infrastructure set by ACER, Europe’s Agency for the Cooperation of Energy Regulators.

 

 

 

 

Green aggregators hit by price cap, big non-compliance penalties

Green aggregators, believing their balancing costs are excessive, causing cash-flow problems and creating additional cost passed on to customers, have called for intervention and revisions from power grid operator IPTO and RAE, the Regulatory Authority for Energy.

RES units operating under incremental support contracts have assumed full balancing responsibilities for their electricity generation since November 30, when Greece entered Europe’s cross-border intraday XBID continuous market, through coupling with Italy and Bulgaria.

However, the implementation of a cap on the day-ahead and intra-day markets has created broader risks for green aggregators, including overestimating RES generation levels.

In such an event, the overestimation’s discrepancy is initially compensated based on the clearing price of the day-ahead market, or price cap, and then priced at the balancing market’s deviation price, which is not capped and may be many times over the day-ahead market level, a financial setback for green aggregators.

New non-compliance charges introduced on December 1 as a result of the cap represent an additional problem for green aggregators as they can lead to exceptionally high penalties, reaching levels well over those of balancing costs.

Gas firms requested to store away 7.5 TWh total this year

RAE, the Regulatory Authority for Energy, has requested natural gas suppliers to start storing away gas quantities ahead of next winter, based on EU energy-security provisions, energypress sources have informed.

The authority aims to encourage companies to make the most of current favorable terms in international gas markets. Gas price levels are currently far lower than they have been during the energy crisis, so quantities required for storage can be secured at competitive prices.

RAE is believed to have informed gas companies that a total of 7.5 TWh will need to be stored away in 2023. The country’s gas importers, DEPA Commercial, Mytilineos, Elpedison, Heron, power utility PPC and Prometheus Gas will need to take on the responsibility of securing this 7.5 TWh quantity.

An EU regulation set last year requires member states without – or without sufficient – domestic gas storage facilities to store away gas quantities representing 15 percent of the previous five-year average of annual gas usage by November 1 at existing storage facilities maintained by fellow member states.

Bulgaria’s underground Chiren gas storage facility appears to be short of space to accommodate Greek gas orders, meaning Greek importers will need to turn to costlier Italian and French alternatives, along with the FSU on the islet Revythoussa, just off Athens.

Annual gas usage in Greece averaged 61.1 TWh between 2018 and 2022, meaning that a 15 percent proportion works out to 9.2 TWh. RAE deducted 1.7 TWh for alternate purposes, resulting in its 7.5-TWh figure set for this year.

Contrary to last year, companies are not expected to be compensated for any leftover gas quantities. Also, gas companies will need to assume all gas transportation and storage costs, to ultimately be passed on to consumers.

Gas companies have already expressed complaints, calling the storage requirement and its related obligations an unfeasible, high-cost plan. They are seeking revisions.

 

RAE to approve compensation plan for outage-affected users

RAE, the Regulatory Authority for Energy, is expected to finalize a proposal this week for the country’s first ever framework offering compensation to electricity users affected by lengthy power cuts as a result of extreme weather conditions.

According to sources, RAE officials could approve the authority’s proposal for a compensation package at a plenary session tomorrow, bringing the framework a step closer to being legislated.

As previously reported by energypress, distribution network operator DEDDIE/HEDNO will be responsible for the compensation system.

Compensation amounts to be paid out to affected electricity users will be many times over their distribution network fee payments, but will not exceed 2,000 euros, sources have informed.

Also, compensation payments will be limited to lengthy power disruptions, defined as over 72 hours long, and to areas with up to one million power meters.

During consultation staged last December, DEDDIE/HEDNO officials noted the operator faces challenges to swiftly repair network faults as a result of a lack of automated systems that enable instant identification of grid spots experiencing issues.

Late-June auction for energy storage investment support

The energy ministry, pushing to meet EU Recovery and Resilience Facility (RRF) deadlines to maximize gains, including 200 million euros available as investment support for new standalone battery installations offering a total capacity of 900 MW, plans to stage an inaugural auction for this energy-storage technology in late June.

As part of the effort, the ministry is working to deliver a ministerial decision specifying all details concerning the auction by mid-April, which would pave the way for RAE, the Regulatory Authority for Energy, to announce a related auction by the end of the month or early in May, giving prospective bidders time to prepare.

At this stage, it appears the investment support for 900 MW in standalone battery installations will be offered over two auctions, each offering support for roughly 450 MW. Officials aim to schedule the second auction for a few months after the first and definitely within 2023.

The forthcoming ministerial decision’s auction specifications will include technical details. RES projects to be eligible for the auction are expected to face 100-MW capacity limits, securing the participation of a sufficient number of projects located at various parts of the grid.

Also, RES projects incorporating energy storage systems offering durations of two and four hours will be offered priority, sources informed.

 

RAE increases distribution usage fee, demand fall a factor

A distribution network usage fee included in electricity bills is set for an increase to cost typical households an additional 76 euros or so per year, following a decision reached by RAE, the Regulatory Authority for Energy.

RAE took this decision based on two factors, firstly after opting to offer distribution network operator DEDDIE/HEDNO a regulated revenue increase, its first in many years, which will lift the operator’s required revenue to 981 million euros in 2023 from 744 million euros last year.

The second factor behind the increase is the significant decrease in electricity demand compared to 2019 levels, a decline linked to the pandemic’s lockdown periods as well as the ensuing energy crisis. This decrease in electricity demand has forced RAE to increase the operator’s revenue per KWh.

Ordinary households, using up to 3,750 kWh of electricity per year, can now expect to face annual distribution network usage surcharges totaling 174 euros, up from 98 euros at present, according to calculations conducted by local energy market price-comparison website allazorevma.gr.

Lignite-fired power generation reestablishing itself as costliest

The cost of lignite-fired electricity generation has been estimated at 219.34 euros per MWh for April by RAE, the Regulatory Authority for Energy, a level that makes it the costliest form of power production for a second month in a row, well over the generation cost level calculated by the authority for combined-cycle, natural gas-fueled power stations, estimated at 153.04 euros per MWh for the month, a difference of 66.3 euros per MWh.

The wholesale electricity market appears set, this month, to further distance itself from the adversity of energy crisis conditions that have made gas-fueled power generation the costliest form in Greece and other parts of Europe as a result of soaring natural gas prices in international markets.

Last month, lignite-fired power production once again found itself at the top of the list as the costliest form of electricity generation, overtaking gas-fueled generation, for the first time since the beginning of the energy crisis.

The cost of lignite-fired power production exceeded that of gas-fueled production by 48.36 euros per MWh last month, above an initial estimate of 30.54 euros per MWh that grew as a result of an energy ministry revision replacing a fixed 10 euro per MWh surcharge on natural gas used for electricity generation with a 5 percent fee of the TTF level.

Compensation rules nearing for outage-affected electricity users

Local authorities working on the country’s first ever framework offering compensation to electricity users affected by lengthy power cuts as a result of extreme weather conditions are edging closer towards finalizing their plan and forwarding it for approval.

RAE, the Regulatory Authority for Energy, the entity working on the compensation plan, is expected to finalize its proposal next week, sources have informed.

Distribution network operator DEDDIE/HEDNO will be held accountable for damages to electricity users caused by lengthy power disruptions, defined as over 72 hours long, according to the rules being prepared.

However, the compensation package will be limited to areas with up to one million power meters. This restriction excludes Athens, whose population is estimated at 3.1 million, from the compensation package.

Compensation amounts will be many times over distribution network fees paid by electricity users but will not exceed 2,000 euros, the sources informed.

This set of rules was proposed by DEDDIE/HEDNO in consultation staged last December. During this procedure, the operator had pointed out that it faces challenges to swiftly repair network faults as a result of a lack of equipment for identifying points where supply has been cut.

The operator, during this consultation procedure, also made note of the country’s low percentage of underground power lines, just 11 percent of the 240,000-km total, exposing most of the grid to the threat of damages and outages during adverse weather conditions.

The need for a compensation package covering electricity users arose following network damages that impacted numerous households and businesses during extreme weather events in recent times.

 

New deadline extension likely for South Kavala UGS tender

A tender being staged by privatization fund TAIPED for the almost depleted natural gas field of “South Kavala” in the Aegean Sea’s north, being offered for development and operation of a prospective underground natural gas storage facility (UGS) over a 50-year period, is in danger of ending without a result.

The tender expires tomorrow, following a four-month extension, but its final-round qualifiers do not appear likely to submit binding bids.

A fruitless tender for what is viewed as vital energy-sector infrastructure would blemish the government’s pre-election campaign, so a further deadline extension of a few months is possible for the procedure, launched in June, 2020.

If so, the tender’s two final-round qualifiers, Energean and a partnership bringing together gas grid operator DESFA and construction company GEK Terna, will have more time to evaluate the terms and conditions.

A 50 percent socialization rate set by RAE, the Regulatory Authority for Energy, concerning the project’s regulated tariffs has been deemed as unsatisfactory by the suitors and is the key factor subduing their interest.

 

IPTO facing grid-sufficiency challenge this coming Easter

Current energy market conditions, combining reduced electricity demand and deeper penetration of the energy mix by renewables, have emerged as a grid-security challenge for power grid operator IPTO, raising fears of power outages.

Output by RES units is generally on the rise and periods of low energy demand, such as the present, oblige the operator to manage a grid that is highly reliant on green energy, representing over 50 percent of the energy mix.

A sharp rise in energy demand expected during the upcoming Easter period and the subsequent dip pose an even greater challenge for the operator, required to manage the RES-dominated grid without support from energy storage units, still not part of the energy market picture but expected to figure more prominently in coming years.

Officials at RAE, the Regulatory Authority for Energy, note IPTO has fully informed the authority on the challenges it faces and action it plans to take to remedy the situation.

IPTO may choose to cut back on RES reliance. A second measure may entail limiting electricity imports through a freeze on interconnection rights.

Ioannis Margaris, Deputy Chairman at IPTO, highlighted the tricky situation faced by the operator at last week’s Power & Gas Forum in Athens.

“Our operations are on edge,” he noted, describing high-risk periods when low demand is combined with high RES penetration and mass withdrawal of conventional power stations, adding the problem will be exacerbated as Easter approaches. “Easter will be a big test.”

Revised universal electricity supply service, after general elections

The energy ministry is considering to revise the country’s universal electricity supply service, which covers the needs of black-listed consumers who have been shunned by suppliers over payment failures, deeming changes are necessary as reliance on this service, up 12 percent this year alone, has grown considerably over recent years.

Provided collectively – by law – by the electricity market’s top five suppliers, based on market share, the universal electricity supply service has grown to become the country’s sixth-largest electricity supplier, serving over 210,000 power meters, up from roughly 22,500 a decade ago, Vassilis Zouvias, Director of Regulatory Affairs at energy company NRG, highlighted during last week’s 4th Power & Gas Forum in Athens.

Just 9 percent of consumers using the universal electricity supply service pay their energy bills on time, while over 60 percent end up not paying their bills at all, the official noted.

Also speaking at last week’s forum, Dimitris Tsalemis, Director General for Energy at the energy ministry, noted these figures do not reflect the goals of the universal electricity supply service, adding “something needs to be done.”

New energy ministry proposals will aim to reshape the universal electricity supply service so that it offers attractive tariffs for participating suppliers through a competitive procedure organized by RAE, the Regulatory Authority for Energy, rather than administratively by the energy ministry, Tsalemis pointed out.

However, changes to the universal electricity supply service would previously require revising the retail electricity market code and, therefore, a legislative amendment, expected to take place following the forthcoming general elections, to be held in May, according to a latest update offered just days ago by Prime Minister Kyriakos Mitsotakis.

 

 

Top energy sector officials taking part at Power & Gas Forum, March 22-23

The government’s top-ranked energy sector officials as well as a host of other leading figures from political, institutional, academic and business domains will be talking part in the Power & Gas Forum on March 22 and 23 at the Wyndham Grand Athens Hotel, an event being staged by energypress for a fourth time. Conference speakers and attendees will participate in person.

Speakers at the event will include Greek energy minister Kostas Skrekas; the energy ministry’s secretary-general Alexandra Sdoukou; secretary-general of transport at the ministry of infrastructure and transport Ioannis Xifaras; RAE (Regulatory Authority for Energy) president Athanasios Dagoumas; EFET’s (European Federation of Energy Traders) Jerome Le Page; Tomás Llobet of European Energy Retailers (EER); two former Greek energy ministers, Giannis Maniatis and Giorgos Stathakis; Sokratis Famellos, a member of the main opposition leftist Syriza party; and Haris Doukas of the PASOK-KINAL socialist party.

Other conference participants will include power grid operator IPTO’s chief executive officer Manos Manousakis and his deputy Giannis Margaris; gas grid operator DESFA’s chief executive Maria Rita Galli; RES market operator DAPEEP’s president and CEO Giannis Giarentis; distribution network operator DEDDIE/HEDNO’s chief executive Anastasios Manos; EDEYEP (Hellenic Hydrocarbons and Energy Resources Management Company) president Aristofanis Stefatos; the Hellenic Energy Exchange’s newly appointed CEO Alexandros Papageorgiou; EDA THESS general manager and EDA ATTIKI CEO Leonidas Bakouras; the Greek prime minister’s special adviser for energy Nikos Tsafos; energy ministry adviser Theodoros Tsakiris; and energy markets guru Alex Papalexopoulos.

The academic community will be represented by professors Pantelis Kapros, Stavros Papathanasiou, Pantelis Biskas, Nikolaos Hatziargyriou and Antonis Metaxas.

As always, energy-sector authorities will also participate at the event. They include Loukas Dimitriou (ESAI/HAIPP – Hellenic Association of Independent Power Producers); Antonis Kontoleon (EVIKEN – Association of Industrial Energy Consumers); Giannis Mitropoulos and Miltos Aslanoglou (ESPEN – Greek Energy Suppliers Association); Irodotos Antonopoulos (ESEPIE – Hellenic Association of Electricity Trading & Supply Companies); Panagiotis Lostarakos and Panagiotis Papastamatiou (ELETAEN – Greek Wind Energy Association); Stelios Loumakis (SPEF – Hellenic Association of Photovoltaic Energy Producers); and Stelios Psomas (SEF/HELAPCO – Hellenic Association of Photovoltaic Companies).

Key sector entrpreneurs and executives who have so far confirmed their participation include: Ioannis Kalafatas (Mytilineos); Kyriakos Kofinas (PPC); Nikolaos Zahariadis (Elpedison); Anastasios Lostarakos (NRG); Dinos Nikolaou (Energean); Kostis Sifnaios (Gastrade); Nikolaos Satras (Dioryga Gas); Panos Nikou (Volterra); and Ioannis Kokkotos (ABB).

The forum’s full agenda will be finalized and announced in the coming days.

Energy exchange platform for PPAs standardized with some flexibility

Procedures leading to the establishment of an Energy Exchange platform hosting green-energy power purchase agreements (PPAs) have restarted following a short break of a few weeks.

Though still at a preliminary stage, the procedure has already indicated that the PPA platform being prepared by an energy exchange working group will offer largely standardized terms as a means of fostering agreements, especially during the platform’s early stage, while also offering some degree of flexibility, as too much rigidity could hamper agreements.

As a next step, the working group intends to focus on two other key aspects, one concerning aggregation details and the other whether bids submitted should be binding or not. Further ahead, tools related to risk management and clearing capability will be looked at.

The energy exchange’s leadership, newly appointed, is now examining a related recommendation delivered by Grant Thornton, serving as the exchange’s consultant on the new platform.

The energy exchange is also looking at comments and observations provided by participants of a related consultation procedure staged by RAE, the Regulatory Authority for Energy.

In addition, the energy exchange is preparing to distribute a questionnaire to prospective PPA platform participants, the aim being to cater to market needs as best as possible.

Once finalized, the PPA platform must be approved by RAE. If given the green light, the energy exchange’s administration will need to proceed with the search for an information system provider, a major stage in the process of setting up the PPA platform.

Lignite-fired generation cost overtakes CCGT in March

Lignite-fired power station generation price levels have risen above those of combined-cycle gas turbine (CCGT) power plants for the first time since the introduction of a temporary recovery mechanism, prompting market officials to declare the end of lignite as an energy source that can be relied on for lower-cost energy production.

RAE, the Regulatory Authority for Energy, set a regulated price of 227.27 euros per MWh for lignite-fired power stations for March, above the price level of 191.73 euros per MWh for CCGTs.

These figures, reflecting the operating costs of the two power-generating technologies, show that lignite-fired plants now cost more to run than gas-fueled power stations.

RAE, in setting its prices, has also taken into account a surcharge of 10 euros per MWh imposed on natural gas intended for electricity generation.

Just months ago, in January, the regulated price for lignite-fired power stations was set at 216.27 euros per MWh, well under that for CCGTs, at 343.64 euros per MWh.

Regulated prices levels for the two power-generating technologies converged in February. They were set at 205.61 euros per MWh for lignite-fired power stations and 210.44 euros per MWh for CCGTs, before a complete overturn in March.

DESFA market test pivotal for gas network investment plan

A market test to soon be announced by gas grid operator DESFA will be instrumental in shaping the operator’s investment plan intended to reinforce and expand the country’s gas network.

Final details of the market test are currently being worked on by DESFA’s legal team before its first round, a non-binding stage, is announced.

Interested parties will be invited to note gas network points of entry and exit they would like to use, as well as gas quantities they plan to transport through the system. This feedback will then be used by DESFA for the establishment of a demand assessment report.

To be divided into demand-related scenarios linked with specific investments for network infrastructure projects, this report will need to be approved by RAE, the Regulatory Authority for Energy, before a second-round market test can be staged.

DESFA plans to complete the market test’s first round by summer and the second round by the end of the year.

Windfall tax sum for electricity producers trimmed to €340m

A sum of just over 340 million euros stands to be collected by the State through an extraordinary 90 percent windfall tax imposed on electricity producers for excess earnings between October, 2021 and June, 2022, RAE, the Regulatory Authority for Energy, has been informed following processing of all related data by chartered accountants.

This amount is less than an initial sum of 373.5 million euros that had been estimated, based on an inspection of preliminary data.

Most of this 33.5 million-euro discrepancy concerns power utility PPC, which will be required to pay a windfall tax that is 31 million euros less than an initial estimate of 276 million euros, now reduced to 245 million euros for this company.

The country’s privately run electricity producers, Mytilineos, Elpedison and Heron, will need to pay an additional sum of 1.2 million euros for this windfall tax, based on the processing of finalized data.

The extraordinary tax measure imposed on electricity producers for the aforementioned nine-month period will, based on current market conditions, not need to be extended.

A major de-escalation in wholesale electricity prices over recent months has greatly reduced revenues amassed by electricity producers and also lessened subsidy support needs for residential electricity consumption.

 

Demand-response tool to enter day-ahead, intraday markets

The demand-response mechanism is the latest tool being prepared for entry into Greek energy exchange markets, within the next few weeks, as a move intended to contribute to the system’s balancing and proper functioning, energypress sources have informed.

Besides its basic use in the balancing market, the demand-response mechanism’s coverage will now also be extended into the energy exchange’s day-ahead and intraday markets.

The Hellenic Energy Exchange and power grid operator IPTO, the two authorities handling the procedure, have made progress on the matter.

The energy exchange has already forwarded its related proposal for necessary day-ahead market and intraday market revisions to RAE, the Regulatory Authority for Energy, while IPTO plans to do likewise within the next few weeks.

IPTO has already made technical adjustments to its systems for the demand-response mechanism’s integration in the day-ahead market and intraday markets, while test runs are now being carried out.

Ministry draft bill for pending energy-sector issues this week

The energy ministry intends to address a series of pending energy-sector issues this week by submitting to Parliament a draft bill carrying related legislative revisions.

Pending issues which the ministry is pushing to have resolved before the country’s next national election, to take place in spring, some time between April and May, include exempting power purchase agreements (PPAs) from a mechanism recovering windfall earnings of electricity producers. This would enable power utility PPC and energy-intensive industries to establish PPAs for lower-cost renewable energy supply to industry.

The details of this exemption were agreed to last week at a meeting involving officials representing the energy ministry, RAE, the Regulatory Authority for Energy, the industrial sector and PPC.

Another top-priority matter on the energy ministry’s agenda is a plan to extend, beyond 2022, the ability of small-scale RES facilities to secure tariffs through administrative procedures instead of competitive procedures.

This revision is expected to enable solar energy facilities possessing capacities of up to 500 KW – and which have submitted connection term applications to distribution network operator DEDDIE/HEDNO prior to the beginning of 2023 – to continue securing tariffs through administrative procedures.

The upcoming revisions could also include new terms permitting solar and wind energy units that have already secured fixed tariffs to participate in wholesale electricity markets on a temporary basis. This revision is imminent, the energy ministry’s secretary-general, Alexandra Sdoukou, told a recent event staged by SPEF, the Hellenic Association of Photovoltaic Energy Producers.