RAE

RAE seeks equality on Brussels plan for gas consumption restrictions in EU

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RAE, the Regulatory Authority for Energy, has called for natural gas consumption restrictions to also be imposed on neighboring Bulgaria, a country to which Greece exports gas, if Athens is subject to such a European Commission restriction.

The authority reasons that the same rules should apply for all EU member states in the event of serious gas supply disruptions to Europe, energypress sources noted.

“Greece cannot adopt mandatory consumption reduction measures of 10 percent or 15 percent in industry, for example, while, at the same time, a similar effort is not being made in countries to which we are called upon to export gas in the context of EU solidarity,” one local source pointed out.

The European Commission proposal for gas consumption restrictions, still not approved, will soon be forwarded by RAE for consultation in a process involving ACER, Europe’s Agency for the Cooperation of Energy Regulators, as part of the effort to prepare as best as possible ahead of the forthcoming winter, which could be challenging.

Demand response aggregators part of energy saving strategy

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The use of demand response green aggregators in power grid operator IPTO auctions, as part of the effort to reduce electricity consumption by 5 percent, a European Commission requirement to be introduced December 1 for all EU member states, was one of the tools discussed at a broad energy ministry meeting focused on establishing an energy-saving strategy ahead of the requirement.

Besides energy ministry officials, the meeting, staged last Friday, also involved representatives of RAE, the Regulatory Authority for Energy, IPTO, distribution network operator DEDDIE/HEDNO and the country’s five licensed aggregators.

In Greece, electricity usage restrictions will be imposed from 6pm-9pm on weekdays, with an additional hour, either between 9am and 10am or 9pm and 10 pm. Weekend restrictions may also be enforced to help achieve the 5 percent electricity consumption cut.

 

DESFA market test for gas grid lift includes 3 pipeline doubles

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Gas grid operator DESFA has begun preparing a market test for prospective gas transmission system expansion projects, based on a requirement set by RAE, the Regulatory Authority for Energy, as part of its approval of the projects.

The market test’s details are expected to be completed by the end of this month. A related event will then be staged to update gas transmission system users on the market test’s process as well as projects to be offered for capacity reservations.

RAE’s market test requirement for these projects has been incorporated into its approval of DESFA’s ten-year development plan covering 2022 to 2031, as the authority wants the operator to gauge the level of interest and need concerning the gas transmission system’s expansion.

According to energypress sources, three new gas pipelines, to serve as doubles at sections of the existing infrastructure, will be included in the market test.

One of the three pipelines is planned to complement infrastructure covering parts of the wider Athens area, a second pipeline is envisaged as a double for a pipeline running from Athens to Thessaloniki, and a third pipeline is planned to run as a double alongside a line from Thessaloniki to Komotini, northeastern Greece.

The EU’s decision to gradually diminish its reliance on Russian gas is changing the continent’s gas supply map. Subsequently, gas entry points from the continent’s south are now becoming more crucial, giving rise to the need for gas infrastructure boosts in Greece.

 

RAE approvals steps towards new FSRUs off Corinth, Thessaloniki

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RAE, the Regulatory Authority for Energy, has approved Elpedison’s Thessaloniki FSRU project as well as the final phase of a market test for Motor Oil’s FSRU plan, Dioryga Gas, off Corinth, west of Athens.

For Elpedison, the authority’s approval essentially signals the go-ahead for the Thessaloniki FSRU (floating storage unit) as the decision awards a 50-year project license until 2072.

A 50-50 joint venture involving Elpedison’s two partners, Edison and HELLENiQ, formerly known as Hellenic Petroleum (ELPE), the Thessaloniki FSRU will be developed at the Thermaic Gulf, just a few kilometers from Dock 6 at Thessaloniki port.

The Thessaloniki FSRU, planned to consist of four storage tanks offering a total of 170,000 cubic meters, is scheduled to be launched in 2025.

Besides approving guidelines for the final phase of Motor Oil’s market test concerning the Dioryga Gas FSRU project off Corinth, RAE also approved a capacity boost for this project, to 210,000 cubic meters from 170,000 cubic meters, as had been specified in the project’s original license, as well as Diorygas Gas’ transfer to Motor Oil’s MORE subsidiary, also hosting the petroleum group’s RES projects.

 

Distributors bent on network expansion despite crisis

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Gas distributors EDA ATTIKI, EDA THESS and DEDA, unperturbed by the energy crisis, plan to expand the country’s gas network through the development of more than 3,000 kilometers of medium and low-pressure networks over the next four years, as well as digitization upgrades, investments worth a total of 740 million euros. RAE, the Regulatory Authority for Energy, has just forwarded the operators’ gas network expansion plans for consultation.

These investment plans demonstrate the willingness of all three gas operators to push ahead with their business plans for expanded gas usage as a key part of the country’s decarbonization effort, despite the sharp rise in gas prices.

Highlighting this intention, Italgas, whose acquisition of DEPA Infrastructure, the parent company of EDA ATTIKI, EDA THESS and DEDA, was completed one month ago, has just announced a loan of 580 million euros to be primarily used to help finance the gas network expansion plans of the three gas operators.

EDA ATTIKI, EDA THESS and DEDA cover the regions of wider Athens, Thessaloniki-Thessaly and the rest of Greece, respectively.

EDA THESS plans investments worth 233 million euros for new gas networks in the Thessaloniki and Thessaly regions.

EDA Attiki’s expansion plan for Athens, 570 km of low and medium-pressure networks by 2026, worth 122.23 million euros, will aim for 85,500 new connections by the end of 2026, taking the company’s total to 260,000 links.

DEDA Athens is planning over 2,000 km of new networks in seven regions, the biggest of the three initiatives, budgeted at 396 million euros.

 

Bypass solution for Alexandroupoli FSRU gas to IGB pipeline

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Gastrade, a consortium established by the Copelouzos group for the development and operation of northeastern Greece’s Alexandroupoli FSRU, and gas grid operator DESFA, have reached a verbal agreement for a technical solution that will temporarily skip the need for a compressor station in order to transmit gas from the FSRU to the Greek-Bulgarian IGB pipeline for export.

The Alexandroupoli FSRU is planned to be completed by December, 2023, well ahead of the scheduled completion, by DESFA, of the IGB gas pipeline’s compressor station in Komotini, expected in October, 2024.

Normally, the Komotini compressor station would be needed to transmit natural gas from the FSRU to the IGB pipeline, whose commercial launch is scheduled for tomorrow.

The verbal agreement between Gastrade and DESFA, mediated by RAE, the Regulatory Authority for Energy, is soon expected to be made official.

The resulting contract will include a timeline for the development, by DESFA, of necessary accompanying projects concerning the country’s gas grid. They need to be completed if the technical solution agreed to by Gastrade and DESFA is to be brought to fruition.

 

 

RAE proceeding with legislative steps for energy storage

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RAE, the Regulatory Authority for Energy, is examining a further step in legislative preparations for energy storage’s induction into the country’s grid, the authority’s president Athanasios Dagoumas has told an IENE (Institute of Energy for Southeast Europe) conference on “Electricity storage and grid management for maximum RES penetration”.

The authority is looking to proceed with an energy storage formula for distribution network operator DEDDIE/HEDNO and power grid operator IPTO, concerning energy storage services such as ancillary services and congestion management.

Up until July this year, RAE had issued a total of 337 licenses representing a capacity of 23.5 GW, concerning storage projects, purely, as well as hybrid projects – combining storage with RES – and pumped storage units.

The vast majority of these RAE licenses concern pure storage units and were issued between January, 2021 and July, 2022.

Investors behind the projects have, as a result of newer legislation, been requested to resubmit supporting documents for older licenses in order to have them renewed.

Many of these investors have already provided the necessary documents and are awaiting license renewals, while RAE is believed to be preparing a great percentage of these, sources informed.

Monthly auctions for industrial energy-saving compensation

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Industrial consumers – high and medium-voltage – will be offered energy-saving incentives through monthly auctions offering compensation for bids with the lowest compensation levels, it has been decided at an extraordinary meeting yesterday involving the energy ministry, RAE (Regulatory Authority for Energy), distribution network operator HEDNO/DEDDIE and power grid operator IPTO.

The session was staged ahead of tomorrow’s meeting of EU energy ministers, whose agenda will include talks for the establishment of a formula reducing electricity usage.

The European Commission has prepared a plan for 5 percent reduction of electricity consumption during peak hours, but, following negotiations over the past few days, this reduction rate could be cut to 3 percent. Member states are expected to seek flexible terms.

Electricity consumption restrictions, in Greece, between 6pm and 9pm are seen as a certainty following yesterday’s meeting of Greek officials. Also, an additional hour during non-peak hours will most likely be introduced, but it remains unclear whether this hour will be set in the morning, from 9am to 10am, or in the evening, from 9pm to 10pm.

Time limit for universal electricity supply service

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RAE, the Regulatory Authority for Energy, has, according to sources, received orders from the energy ministry to impose a time limit on the period consumers can rely on a universal electricity supply service, covering the needs of black-listed consumers reported by suppliers for electricity-bill payment failures.

At present, usage of the universal electricity supply service by consumers with outstanding electricity bills has no limit, but higher tariffs are charged for the service.

It is provided by the country’s five biggest electricity suppliers, in terms of retail market share, who share the pool of old and new unwanted customers and provide the universal supply service.

Recent market data showed an increasing trend in the number of households resorting to the universal electricity supply service.

RAE has proposed the establishment of a collective debt-flagging system, which would be maintained by distribution network operator DEDDIE/HEDNO, based on consumer appraisals provided by electricity retailers.

Consumers who continue to not pay electricity bills through the universal electricity supply service will face electricity supply cuts, under the proposed revision.

 

 

Ministry, power producers to discuss diesel as alternative

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A leading energy ministry official has scheduled, for today, a teleconference with electricity producers operating gas-fueled power stations to discuss the prospect of emergency diesel supply for alternative generation purposes should natural gas imports encounter issues.

The energy ministry’s secretary-general Alexandra Sdoukou and producers will  overview the supply chain to be activated for diesel as an alternative liquid, if market conditions require such action.

Previous thoughts by officials for power stations to partially run on diesel fuel, a few hours per month, to help ease natural gas demand, appear to have been abandoned as producers have raised concerns about various complications.

Instead, diesel will only be used as an alternative fuel by gas-fueled power stations if gas imports reach perilously low levels and the country enters a period of heightened alert. RAE, the Regulatory Authority for Energy, will need to approve the switch by producers to diesel.

Five gas-fueled power stations in Greece are equipped to also run on diesel. Power utility PPC operates one of these in Lavrio and another in Komotini, Elpedison operates two more, in Thisvi and Thessaloniki, and Heron operates such a unit in Viotia.

Experts have previously informed energypress gas-fueled power stations can run on diesel for a maximum of five days per month without any technical issues or maintenance needs and 40 days a year. This limitation is necessary to avoid excessive soot accumulation and facility underperformance, the experts noted.

 

DEPA Commercial gas storage in Italy, Bulgaria, 200,000 MWh

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DEPA Commercial has stored away, at facilities in neighboring Bulgaria and Italy, natural gas quantities for a total of 200,000 MWh, slightly less than one third of the 622,440 MWh the company is expected to store through a Preventive Action Plan established by RAE, the Regulatory Authority for Energy.

DEPA Commercial began its effort by storing natural gas at Bulgaria’s Chiren facility and, over the past 15 days or so, has also been storing away gas quantities in Italy.

DEPA Commercial, like all main gas suppliers licensed to use the country’s gas network, is expected to make these gas reserves available for all of the upcoming winter period, or, more specifically, from November to March.

These gas reserve amounts stocked up through the Preventive Action Plan are planned to play a protective role should Moscow make changes to deliveries of pipeline gas quantities.

Gas suppliers whose imports represent no more than 1 percent of the country’s total gas imports have been exempted from RAE’s gas storage requirement.

DEPA Commercial is Greece’s biggest gas importer, requiring the company to establish gas reserves for 622,440 MWh. The top three include Mytilineos, which must store away gas for 267,900 MWh and Promitheas Gas with 137,940 MWh.

 

Operators tasked with LNG refueling of autonomous gas networks

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LNG refueling at autonomous gas networks will be assigned to companies developing this infrastructure, RAE, the Regulatory Authority for Energy, has decided.

RAE took its decision after Italgas, buyer of gas company DEPA Infrastructure, responded favorably to a proposal by the authority for DEPA Infrastructure’s distribution subsidiaries to take on the refueling task at autonomous gas networks.

Gas grid operator DESFA was also interested in taking on these services. Grid operators are most appropriate for network refueling services as they have a clear picture of consumption levels at any given moment, and, by extension, LNG refueling needs.

Hesitation by some operators prompted RAE to turn to Italgas. The Italian company is already accustomed to autonomous gas network refueling as a result of an equivalent model it applies for Sicily, where local networks are refueled with LNG.

 

 

 

Wind farms not earning windfall profits, association notes

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Wind farms are not earning windfall profits as they are remunerated based on long-term fixed tariff agreements not influenced by wholesale electricity prices, which have skyrocketed as a result of soaring natural gas prices, ELETAEN, the Greek Wind Energy Association, has clarified.

A 90 percent windfall profits tax imposed on electricity producers essentially does not apply to wind farm producers as they have always been returning any amounts exceeding their long-term fixed tariffs for output they have agreed to, ELETAEN noted.

Wind farm investors have secured fixed tariffs for the output of their facilities through long-term contracts with DAPEEP, the RES market operator, the association noted.

Older wind farm investors have agreed to tariff prices, through administrative procedures, based on the cost of their projects at the time of their development, while newer wind farms have secured fixed tariffs through RES auctions staged by RAE, the Regulatory Authority for Energy, ELETAEN reminded.

As a result, wind farms are not benefiting from elevated energy market prices and are not earning windfall profits, ELETAEN underlined, adding remuneration prices in the sector are low.

The average price paid for wind energy production in Greece is approximately 94 euros per MWh, just 22 percent of the average price of electricity last month, the association pointed out.

 

 

 

 

RAE warns power suppliers to correct billing details

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RAE, the Regulatory Authority for Energy, has warned all suppliers to present their pricing policies in accordance with a new model introduced in August, energypress sources have informed.

The authority has asked suppliers to correct their presentation of competitive charges, be punctual with their monthly announcement of latest charges, by the 20th of every month, as required by the new model, and to withdraw any retroactive discounts being used.

RAE’s demand for a correction of competitive charge presentations was prompted after monitoring by the authority determined that a small number of suppliers were not presenting their details in accordance with the sector’s rules.

 

Energy sufficiency fears rising, extra FSU may be required

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The probability of a complete disruption of Russian gas supply to Europe, including the Turk Stream pipeline supplying Greece and other Balkan countries, is becoming increasingly likely, members of the country’s crisis management team have told energypress.

Over the past few weeks, energy operators have been staging more frequent simulated tests for the country’s electricity and natural gas systems in an effort to measure the extent of energy shortages that would result from a Russian decision to cut off all Gazprom supply routes to Europe.

The tests, according to sources, include rapid moves securing additional LNG cargo orders as replacements for Russian gas quantities.

An extra FSU at the LNG terminal on Revythoussa, the islet just off Athens, in addition to one just installed at the facility, cannot be ruled out at this stage, Athanasios Dagoumas, president of RAE, the Regulatory Authority for Energy, noted yesterday during a speech at the OT (Oikonomikos Tahydromos) Forum.

 

Consumer confusion, distrust over supplier tariff offers

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Many consumers are feeling confused about electricity tariff comparisons and how to go about determining the best supplier deals available in the market, a considerable number of enquiries expressed by energypress readers has indicated.

The confusion of consumers amid the energy crisis appears to have abounded despite the government’s recently introduced simplified system, through which suppliers announce the forthcoming month’s tariffs on a monthly basis. The net price for consumers results once state electricity subsidies have been subtracted.

Common questions asked by consumers include whether they should be on the constant lookout for lower-priced electricity offers, given the monthly tariff announcements by suppliers, which can fluctuate from month to month.

Consumers are also expressing insecurity as to where they should look for finalized, guaranteed price offers of suppliers, once the government’s subsidies have been deducted.

A price-comparison tool introduced by RAE, the Regulatory Authority for Energy, for this purpose does not appear to have convinced some consumers, or helped clarify the market picture for them, even though many consumers are aware of the tool’s existence and are using it.

 

 

RAE approves energy crisis plans for winter sufficiency

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The board at RAE, the Regulatory Authority for Energy, has approved preventive action and risk preparedness plans for the country’s electricity sector, two tools shaped in response to soaring gas and electricity prices, breaking records, in the energy crisis.

Though it is generally hoped they will be needless, the two tools could prove useful during what is expected to be a challenging winter throughout Europe, including Greece.

The preventive action plan was approved by RAE following certain revisions to the initial plan, concerning gas reserve requirements.

According to the plan, a new floating storage unit installed in June at the LNG terminal on the islet Revythoussa, just off Athens, will maintain 0.57 TWH in strategic reserves for electricity production, while 1.14 TWh in gas supplier reserves will be stored at an Italian storage facility.

However, the plan is non-binding as these gas reserves may also be stored at other facilities if preferred by players, who are required to maintain strategic gas reserves.

 

Electricity producers windfall tax now imminent

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Joint ministerial decisions needed by the finance and energy ministries for the implementation of a 90 percent windfall tax on recent extraordinary gains achieved by vertically integrated electricity producers are set to be signed by the two ministries, energy minister Kostas Skrekas has told a news conference.

RAE, the Regulatory Authority for Energy, has delivered its report for electricity producer earnings covering a six-month period from October, 2021 to March, 2022, to be subject to the new windfall tax.

As for a second period to be subject to this extraordinary tax, a three-month term covering April to June this year, RAE has requested further details from the energy groups on discounts offered as well as returns linked to bilateral agreements. These details will be delivered to RAE once they have been approved by a certified public accountant.

 

Market test ahead of gas system boost decisions

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Authorities at gas grid operator DESFA and RAE, the Regulatory Authority for Energy, are set to begin a new round of talks to decide if the country’s gas infrastructure requires expansion.

DESFA will need to submit a proposal no later than September 30 regarding any amendments that may be required to its management code in order to conduct a market test exploring the interest and necessity of a gas system expansion.

DESFA’s ten-year development plan covering 2022 to 2031, which includes a proposal for the gas system’s expansion, budgeted at 422 million euros, still needs to be approved.

Power suppliers given until August 8 to revise misleading advertising

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RAE, the Regulatory Authority for Energy, has given three electricity suppliers until August 8 to revise their commercial policies after they were found to be presenting state electricity subsidies as discounts of their own in advertising campaigns.

Details of the three electricity suppliers, not disclosed, will be posted on the authority’s website on August 9 at 11 am if they miss the deadline to revise their commercial policies and fail to inform RAE of the reasoning behind their changes, RAE has announced.

 

Power producer diesel reserves focus of emergency meeting

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Top-ranked officials representing the country’s Hellenic Petroleum (ELPE) and Motor Oil refineries, electricity producers, as well as RAE, the Regulatory Authority for Energy, will take part in an emergency meeting called for today by the energy ministry to address diesel safety reserves and a conversion to this energy source by a number of natural gas-fueled power stations should Russia completely disrupt its gas supply.

According to a RAE plan, five natural gas-fueled power stations will run on diesel should Moscow turn off the taps. These facilities will need to maintain an adequate level of diesel reserves covering the emergency plan.

Diesel reserve level requirements for these power stations have been increased, up from 5 to 20 days of consumption, or maximum storage capacity. Electricity producers must reach the increased safety levels by November 1.

DEDA awaiting biothemane operator license 7 months on

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Gas distributor DEDA is still awaiting a license that would establish the company as a biomethane operator seven months it submitted a related application to RAE, the Regulatory Authority for Energy.

DEDA lodged its license application to RAE on December 6, 2021 as part of its effort to move ahead with the country’s first biomethane distribution pilot projects.

Over the past two years, DEDA has been working on procedures for the establishment of legal and regulatory frameworks needed for commercial utilization of biomethane through the distribution networks it operates.

DEDA has already signed memorandums of cooperation with two biogas producers entailing upgrades of their facilities for production of biomethane, to be injected into networks and distributed as a mix with natural gas.

The first biomethane distribution pilot project is planned for the Nigrita area in Serres, northern Greece, to primarily supply household and business consumers. A second project, in Alexandria, Imathia, also in the country’s north, is planned to supply mostly industrial consumers.

Furthermore, on July 4, DEDA submitted a complete proposal to the energy ministry for the development of a biomethane market in Greece, based on revisions to laws concerning biogas, renewables and natural gas distribution. This proposal puts the price of biomethane below that of natural gas.

Suppliers asked to recheck, substantiate tariffs for August

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The country’s electricity suppliers have been ordered, by RAE, the Regulatory Authority for Energy, to provide by midday today, data proving that tariffs they announced for August are cost-effective, entirely legal and do not seek to circumvent the law through trickery.

The country’s electricity suppliers announced their tariff levels for August on Monday. From now on, they will be required to announce, on a monthly basis, their prices for the next month by the 20th day of the preceding month.

The latest RAE request may require some of electricity suppliers to recalculate their charges and tiered tariffs.

RAE, in a letter, has asked the country’s suppliers to substantiate the tariff levels they announced on Monday with detailed data.

 

 

Lignite plants at the first line of defense against a Russian gas stoppage

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In the case that Russian gas supplies are stopped to Greece the energy regulator plans to enhance power production through lignite plants, as part of its emergency plan, which has been submitted for consultation.
During a meeting with the prime minister last week, it was decided that lignite plants will double their production in that eventuality and reach 10 TWh in the following 12 months from 5 TWh today. These TWh are equal to 20% of Greece’s annual power consumption.
Furthermore, the plan includes the storing of natural gas in Italy, according to European guidelines included in the REPower EU plan. Quantities will reach 1.7-1.8 TWh from October and for a period of five months.
The regulator’s plan also includes fuel switching in the five natural gas plants that are able to do that. Another measure is to take advantage of the LNG terminal in Revythoussa, which has now another floating terminal.

Clarity on Larco, South Kavala UGS privatizations by end of July

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The fates of two long-running privatizations, state-controlled nickel producer Larco and the almost depleted natural gas field of “South Kavala” in the Aegean Sea’s north, being offered through a tender for the development and operation of a prospective underground natural gas storage facility (UGS), are expected to be cleared up by the end of July, privatization fund TAIPED’s chief executive Dimitris Politis has informed.

Also, the completion of gas company DEPA Infrastructure’s sale to Italian company Italgas is expected by September, along with new sale alternatives for the DEPA Commercial sale, whose initial procedure was officially terminated in May as a result of complications stemming from an ongoing legal battle between the company and fertilizer producer ELFE, the TAIPED official noted.

The “South Kavala” UGS tender’s final round has been held up as a result of objections raised by participants over project pricing regulations established by RAE, the Regulatory Authority for Energy. These regulations are expected to soon be published in the government gazette.

Energean and a partnership bringing together gas grid operator DESFA and construction company GEK Terna are the final-round qualifiers of the “South Kavala” UGS tender.

Larco sale participants have been set a July 29 deadline for binding bids, Politis, the TAIPED chief, informed.

As for the DEPA Infrastructure sale procedure, hurdles have been removed as a result of revisions separating certification requirements set by RAE, the Regulatory Authority for Energy, for the gas company’s distribution subsidiaries from the DEPA Infrastructure sale.

Alternative plans for the ill-fated DEPA Commercial sale, including a possible partial privatization, will be announced by September or October, the TAIPED chief informed.

PM office emergency meeting over Nord Stream I fears

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The country’s leading energy authorities have been summoned to an emergency meeting today at Prime Minister Kyriakos Mitsotakis’ office following yesterday’s troubling announcement by Kremlin-controlled energy giant Gazprom, which noted it could not guarantee the safe operation of the Nord Steam I gas pipeline because of doubt over the return of a turbine from Canada.

At today’s meeting, top officials representing RAE, the Regulatory Authority for Energy, the market operators, power utility PPC, and gas company DEPA will seek emergency solutions amid fears Russia’s dwindling gas supply cuts to Europe could worsen.

Nord Stream I, a subsea pipeline linking Russia with Germany through the North Sea, was shut down on July 11 for a 10-day period of maintenance work, according to Gazprom.

Should the pipeline not reopen next Thursday, turmoil in European energy markets would also impact the Greek market, both in terms of prices and supply sufficiency, as the development would prompt a drastic increase in electricity exports from Greece to interconnected neighboring countries.

Windfall profit tax worth €270m, PPC covering 70%

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The government will collect approximately 270 million euros from a windfall profit tax imposed on electricity producers for a six-month period covering October, 2021 to March, 2022, sources have informed. A 70 percent share of this tax sum concerns power utility PPC.

The tax payments to be provided by electricity producers are based on a formula ratified by the government. It was applied in a study conducted by RAE, the Regulatory Authority for Energy, whose results have been handed over to the government.

All discounts offered by electricity consumers to customers were deducted before the extraordinary tax, at a rate of 90 percent, was applied to windfall profits for the six-month period.

These deductions have more-than-halved an initial 590 million-euro tax revenue forecast that had been made by RAE to 270 million euros. PPC, covering 70 percent of the total, will pay a tax sum of approximately 190 million euros, while all other producers will pay further amounts totaling roughly 80 million euros, according to sources.

 

Italian gas storage up to 2 TWh from October for 5 months

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Greek authorities are taking steps to prepare for a gas-storage solution ahead of next winter in neighboring Italy, in accordance with EU rules, requiring all member states without – or without sufficient – natural gas storage facilities, such as Greece, to store, by November 1, gas quantities representing 15 percent of annual consumption, based on last year’s level, at existing storage facilities maintained by fellow member states.

Based on this requirement and the country’s consumption level last year, Greece will need to store a total of approximately 900 million cubic meters of gas, or 8 TWh, of which up to 2 TWh will be stored at Italian facilities from October for a five-month period.

Storage costs for such a quantity are expected to reach 250 million euros, under favorable conditions.

A related proposal forwarded by RAE, the Regulatory Authority for Energy, will undergo consultation before final decisions on the country’s gas storage plan are made.

 

IGB moves close to launch, ICGB consortium certified

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The Greek-Bulgarian IGB gas pipeline has moved a step closer towards its launch, expected around the end of this month, following the completion of a certification procedure for the ICGB consortium behind the project.

The European Commission, according to information made available, has approved a certification application submitted by the Greek Regulatory Authority for Energy, RAE, and its Bulgarian counterpart, EWRC.

Greek Prime Minister Kyriakos Mitsotakis and Bulgarian leader Kiril Petkov will both attend the project’s inauguration ceremony in Komotini, northeastern Greece, this Friday, ahead of the project’s commercial launch towards the end of the month.

The two leaders are expected to highlight this project’s contribution to the EU’s ongoing effort to end the continent’s reliance on Russia’s Gazprom.

The IGB gas pipeline will offer an alternative natural gas route into Bulgaria, initially via the TAP route and, from autumn onwards, through Greece’s gas grid. From 2023, the IGB will serve as a gateway for LNG imports from coastal FSRUs in the region. LNG quantities will reach Bulgaria, Romania, even Ukraine, through pipeline interconnections.