renewables

RES operating restrictions influencing bank financing

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Grid-injection limits faced by renewable energy facilities are being factored into formulas applied by banks when considering loan requests for RES projects, banking industry executives have told energypress.

This increased-risk factor being taken into account by banks has, so far, not denied renewable energy project investors of loans, the banking sources noted.

Investments are being examined on a case-by-case basis and any precautionary financing measures taken reflect the respective profiles of investors, the sources added.

Banks are subjecting RES project loan requests to a full range of scenarios, including worst-case scenarios, regarding the impact of operating restrictions on revenues throughout entire loan periods.

Banks are still waiting for policymakers to crystallize RES operating restriction rules before deciding on whether to make further changes to their lending formulas for the RES sector.

In any case, borrowing terms appear to have become tougher for smaller market players as they possess less flexibility than larger players, who, despite operating restrictions, can maintain robust credit profiles through other activities in their portfolios and, as a result, keep borrowing on favorable, lower-risk terms.

Most recently, foreign investors have shown greater apprehension towards RES investments in Greece by delaying decisions while seeking to achieve better understanding of local market conditions.

 

Prospective RES projects worth €12bn, investor clarity needed

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A big wave of RES projects planned for development offers an upbeat picture of the sector, but further clarity concerning rules and operating restrictions such as mandatory grid-injection cuts will be needed if investors are to push ahead with plans.

RES projects (wind and PV projects) possessing connection terms yet still undeveloped or at early stages of development are worth 12 billion euros, market officials have estimated.

This prospective turnover figure stands to increase further if new RES projects set to be granted connection terms in return for PPAs established with industrial consumers are also taken into account.

A total of 3,673 RES projects representing a capacity of 12,876 MW (wind energy: 2,567 MW, PVs: 10,309 MW) received connection terms between 2020 and 2023, according to data presented by power grid operator IPTO’s Konstantinos Tsirekis, Director of Strategy & System Development Planning, at an annual event staged recently by POSPIEF, the Pan-Hellenic Federation of Photovoltaic Producer Societies.

This pipeline of prospective RES projects could be stifled if investors lack clarity on grid-injection cut rules as such operating restrictions affect earnings potential of projects, and, by extension, the willingness of banks to finance projects.

‘PPC ideally positioned to lead energy transition in SE Europe’

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Power utility PPC is ideally positioned to lead the energy transition in southeast Europe, despite complexities in the Balkans ranging from political stability to war, Giorgos Stassis, CEO at PPC, has told the annual conference of the Center for Strategic and International Studies (CSIS), in Washington, D.C., an event for which he was a keynote speaker.

The annual CSIS conference, specializing in international strategy and security issues, also featured Jeffrey Pyatt, US Under Secretary of State for Energy, as a main speaker.

Renewables have a major role to play in “ensuring that we have a planet where we can all live without compromising access to affordable energy,” Stassis, the PPC chief, told the event, adding that, besides offering clean energy, renewable energy also bolsters energy security.

However, there are limits to how far a country can go by relying solely on domestic renewable energy production, Stassis underlined. “Energy systems need to be flexible to ensure stability, reliability and cost-effectiveness. Flexibility is provided by energy assets such as batteries and gas-based power plants, as well as crucial infrastructure, including resilient electricity grids and interconnections between countries,” the PPC boss continued.

Energy market conditions in the Balkans differ greatly from country to country, Stassis pointed out. Romania, for example, relies little on natural gas imports, whereas Bulgaria is very dependent, he explained. Also, some Balkan countries, such as Greece, have made great progress in terms of energy transition, while others, especially in the western Balkans, lag behind, he added.

 

1.5 GW in RES projects with industrial PPAs set for approval

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

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

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

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

Priority RES processing slowed down by industry, farmer PPAs

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

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

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

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

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

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

 

RES output facing 10 TWh cut by 2030 without demand rise

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Green energy production cuts can be expected to reach roughly 10 TWh by 2030 if electricity demand does not increase, Greek power grid operator IPTO data has indicated.

Assuming installed RES capacity has reached 30 GW by 2030, annual RES production can be estimated to reach 67 TWh, above that year’s electricity demand forecast of 59 TWh, while international grid interconnections are expected to facilitate a further 2 TWh in exports, all of which leads to an annual RES production cut of approximately 10 TWh in 2030, data presented by IPTO’s Konstantinos Tsirekis, Director of Strategy & System Development Planning, at a recent event staged by POSPIEF, the Pan-Hellenic Federation of Photovoltaic Producer Societies, has indicated.

Under current conditions, this 10 TWh surplus will result in annual RES production cuts of 14 percent for producers.

Energy storage boosts cannot completely resolve the issue as they have their limits. The use of storage systems allows time shifts of RES production (for example PV production from midday to evening hours), but without sufficient demand, this stored energy will be lost.

Island RES project support of at least €1.59bn via new fund

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The energy ministry is planning distribution details of proceeds to be collected by the forthcoming Island Decarbonization Fund through auctions, in 2024 and 2025, of 25 million CO2 carbon emission rights that have been allocated to the fund.

These rights are expected to raise between 1.5 and 3 billion euros through auctions over the two-year period.

Proceeds raised by the CO2 carbon emission rights allocated to the fund will be used to offer subsidy support for island projects such as new RES and battery installations, grid interconnections, offshore wind farms, as well as island infrastructure development facilitating greater RES penetration.

The Island Decarbonization Fund’s launch, now imminent, will be officially launched with the signing of an agreement by the European Commission’s Directorate-General for Climate Action (DG CLIMA) and the European Investment Bank.

As part of its planning for the new fund, the ministry is dividing prospective projects into two tiered groups, the first of which will be given priority status to secure 1.59 million euros from the Island Decarbonization Fund, roughly the minimum sum expected to be raised by CO2 carbon emission rights.

 

Grant Thornton takes on Green Aegean cost-benefit analysis

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Greek Power grid operator IPTO has commissioned accountancy and advisory services firm Grant Thornton to conduct a cost-benefit analysis on the Green Aegean electrical grid interconnection project, envisaged to stretch from Greece to Germany’s south and provide a transportation corridor for RES output.

The analysis, an important step towards the project ’s further development, is expected to be completed later this year, by September or October. It will provide detailed information on crucial questions concerning whether the project can be deemed viable or not.

These questions include whether RES output will also be let out in Slovenia and Croatia or just Greece and Germany; as well as whether the project will be equipped with two or four cables.

In addition, the study will provide a template for a regulatory framework needed for the project’s operation; specify the project’s potential benefits for Greece and Germany; and offer an evaluation of the project under various scenarios.

Though an investment decision is still a long way off, IPTO wants specific figures offering investment clarity, based on specifications of similar European projects.

Green Aegean is planned to offer a 3-GW capacity for electricity transmission with potential for a further boost to as much as 9 GW.

The project’s initial budget has been estimated at between 8 and 14 billion euros, depending on the route’s specifics. An Adriatic Sea crossing from Greece to Slovenia, followed by an overland route to Austria and Germany’s south is currently envisaged.

Existing project data suggests energy consumers in Greece stand to benefit. The project’s launch has been slated for 2035.

 

Multi-bill terms abolishing RES grid-injection limits

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An energy ministry multi-bill includes a provision abolishing grid-injection upper limits imposed on RES units to maintain a balance between production and demand and help counter local grid congestion. Consultation on the multi-bill ended this morning.

Limits imposed on RES units through legislation ratified in 2022 subjected their grid injections to 5 percent limits of annual production capacity.

According to this limit’s details, the grid operator was not required to offer compensation to RES producers regarding grid-injection restrictions. However, compensation details still need to be clarified.

Under the new terms, the existing 5 percent grid-injection limit will only be maintained for permanent restrictions, as is the case with PVs linked to the grid, facing a 72 percent restriction, and wind energy facilities, permitted to inject 80 percent of capacity between 8am-11am, 65 percent between 11am-3pm, and 80 percent between 3pm-5pm.

 

RES spatial plan facing delays as more revisions requested

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Latest revisions requested by the General Secretariat for Spatial Planning from planners of the country’s Special Land Use Plan for RES facilities will further delay the completion of the plan, now essentially lacking any realistic schedule, energypress sources have informed.

Though planners had completed their work on the plan, they must now work on the latest revisions requested.

A few months ago, authorities had announced the RES spatial plan would undergo consultation around early May, but, given the latest demands, this no longer seems possible.

The latest changes requested by the General Secretariat for Spatial Planning include the designation of “RES acceleration areas”, in accordance with a recent EU directive that has yet to be incorporated into national law, the sources noted.

Such a procedure will require considerable time as designating special RES areas not only requires new legislation but also a series of other actions such as consultation with local authorities and issuance of presidential decrees.

PPC, Mytilineos €2bn RES deal converges company strategies

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Power utility PPC has reached a 2 billion-euro deal with the Mytilineos group for the purchase of a renewable energy portfolio containing roughly 2 GW of solar-farm projects at various stages of development in Bulgaria, Croatia, Italy and Romania.

The deal secures major benefits for both sides. It greatly expands PPC’s RES portfolio and offers the company firmer standing along the Balkan corridor, a position promising to serve its strategic goal of becoming a leading player in green energy, key infrastructure and services in southeast Europe.

As for the Mytilineos group, the 2 billion-euro cash influx from this sale agreement, consisting of 90 solar farm projects, underlines the success of the company’s strategy to develop and sell RES projects, a strategy chosen by its management from the outset and designed to seize on energy-transition opportunities.

Mytilineos will develop, for PPC, ready-to-use solar farms covering the energy needs of 320,000 households in Bulgaria, Croatia, Italy and Romania.

Besides expanding PPC’s presence in the Balkans, the deal, a show of the once-troubled company’s financial strength, also offers entry into a new market, Italy, which the power utility has been eyeing for quite some time. Italy is the EU’s second biggest economy and Europe’s biggest electricity importer.

The nature of the agreement is unprecedented as two fellow Greek corporate groups have combined to secure major growth for both abroad.

 

GREGY Interconnector plans split route to also serve Italy

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Elica, a subsidiary formed by the Copelouzos group to promote the Greek-Egyptian GREGY Interconnector, promising transportation of Egyptian renewable energy production to Europe, plans to add Italy as a direct recipient in addition to Greece.

The idea behind this revision, or addition, is to ensure even more promising commercial prospects for the project by making available renewable energy from northeast Africa to a wider part of Europe.

The revised route being considered by Elica would split into two in the sea area southwest of Crete. From there, two subsea lines, each offering a capacity of 750 MW, would carry on for the wider Athens area and a further two subsea lines, also 750 MW each, would reach the sea area off Greece’s northwest and connect with an existing grid interconnection linking Greece and Italy.

This revised route would enable direct export of Egyptian renewable energy to Italy, as an additional recipient, via the GREGY Interconnector. Greece and Italy would each be able to receive capacities of 1,500 MW through the two lines.

Under the original plan for the GREGY Interconnector, four cables beginning from Egypt and possessing a total capacity of 3,000 MW would have all ended up in the wider Athens area.

Elica, the Copelouzos group subsidiary promoting the project, appears to have informed the Greek and Italian governments, as well as Greek power grid operator IPTO and Italy’s power grid operator TERNA of its planned route revision.

RES projects with a total capacity of 9.5 GW are planned for development in Egypt to feed renewable energy into the GREGY Interconnector.

Greek industrial consumers, seeking low-cost energy, are among the main potential recipients of the 1,500 MW to end up in the wider Athens area. A share of the renewable energy brought in from Egypt may also be exported to other Balkan countries through electrical grid links with Greece.

Italy, whose electricity import needs are among the highest in southern Europe, would cover a considerable proportion of these needs through the GREGY Interconnector, at a low cost.

 

 

PPC announces strong results, dividends after 10 years

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Power utility PPC has posted robust annual financial results for 2023, including a liquidity figure of 5.4 billion euros, 2.8 billion euros of this amount in cash reserves, as well as operational profitability of 1.5 billion euros.

The performance, which has prompted PPC to announce a dividend payout to shareholders for the first time in ten years, offers the company protection for precarious times, gives it the ability to expand further in Greece and abroad, acquire new RES portfolios, and keep pursuing plans.

PPC shareholders will receive a dividend of 0.25 cents per share, the company announced. The Greek state stands to receive 32 million euros in dividends through Greek privatization fund HRADF/TAIPED’s 34.12 percent stake in PPC.

The dividend payout could be interpreted as a declaration, by PPC, of its complete financial comeback following years of turmoil. PPC has made a gradual return to solid ground since 2019, under the leadership of CEO Giorgos Stassis.

PPC now needs to mitigate any risks entailed in implementing its business plan covering 2024 to 2026, which includes new investments worth 9 billion euros, of which 44 percent concerns renewables.

The power utility has already secured nearly 70 percent of its renewable energy capacity target for 2026, the chief executive explained to analysts yesterday.

Last year, PPC managed to restrict the role of lignite in its energy production to just 22 percent, a contraction that saved the company a lot of money.

Once regarded as one of the EU’s worst polluters, PPC reduced its CO2 emissions by 24 percent in 2023, down to 9.7 million tons from 14.8 million tons a year earlier.

 

2nd Hydrogen & Green Gases Forum, an energypress event, June 20 in Athens

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The 2nd Hydrogen & Green Gases Forum, an energypress event comprehensively covering Greece’s hydrogen and green gas sector, is scheduled to take place on June 20 at the Wyndham Grand Athens hotel. 

The widespread promotion of Renewable Gas, especially Green Hydrogen, by the European Union, in the form of legislative and regulatory actions, as well as financial instruments, is being reflected by widespread business activity concerning the sector, but also by rapid technological developments. 

Meanwhile, some backtracking has been observed in Greece’s process of developing a national strategy for Hydrogen and Green Gases at a time when a number of scientific and business initiatives taken aspire to play a role in a future that, in some cases at least, has already arrived.

Following last year’s inaugural event, the Hydrogen & Green Gases Forum has established itself as an annual focal point and benchmark for this sector.

As has been the case with all other thematic forums organized by energypress, the Hydrogen & Green Gases Forum will essentially be a working conference rather than a celebratory event.

This means that a group of politicians from Greece and abroad, authorities, scientists, academics, representatives of institutions and businesses, will attempt to go into depth on all issues arising on the present and future of the crucial Hydrogen and Green Gases sector.

Main themes of the conference:

  • Policies and decisions in the EU
  • Adjustment initiatives in Greece
  • Hydrogen and biomethane readiness – Networks
  • Hydrogen transportation
  • Industry – Key investment projects in Greece
  • Technological Developments and Challenges

The conference will be held with speakers and participants at the venue. All proceedings will be broadcast live, in Greek and English.

See videos and photos of last year’s conference here https://www.hydrogenforum.gr/

See impressive statistics on last year’s conference here https://energypress.gr/news/deite-ta-binteo-tis-fotografies-kai-tis-paroysiaseis-ton-omiliton-toy-1oy-hydrogen-green-gases

For further information and sponsorship details, contact:

Maria Delli (2108217446, mariadelli@energypress.gr)

Anna Kalyva (2108217446, secretariat@energypress.gr).

Ministry strives for May auction supporting battery usage

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An upcoming RES auction offering investment support to standalone batteries representing a total capacity of 175 MW comes as the next step in the energy ministry’s effort promoting batteries at RES projects, and, by extension, increased usage of storage units in the country’s electrical system.

The ministry is striving to stage this auction, whose investment support stems from the European Commission’s REPowerEU program, as early as May.

A preceding auction had offered RES projects energy-storage investment support of 200,000 euros per MW, but this level has now been halved to 100,000 euros per PW, the intention being to make the support package available to more RES units.

A sum of 85 million euros has been marked out for energy-storage system support from the country’s REPowerEU allocation, worth a total of 795 million euros. The REPowerEU package has come to bolster Brussels’ preceding RRF initiative.

The upcoming RES auction will concern batteries with two-hour durations. It will be followed by an auction offering investment support for batteries with four-hour durations, planned to be installed at former lignite-dependent areas.

To date, two auctions have been staged for investment support to standalone batteries representing a total capacity of roughly 700 MW.

Besides these two auctions and the forthcoming auction, possibly in May, a further two auctions offering investment support to standalone batteries with a capacity of between 700 and 800 MW are planned to be held by the end of this year, bringing the support effort’s overall tally to approximately 1,675 MW.

Energy ministry bill addresses range of climate change issues

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An energy ministry draft bill just forwarded for consultation includes a wide range of interventions addressing water management; forest management and protection; urban resilience and policy; unauthorized construction; and energy security.

Initiatives included in the bill, forwarded as a package addressing the wider impact of climate change in the aforementioned areas, include Apollo, a support package reducing energy cost for low-income households, as well as public buildings and installations.

The initiatives also include tough measures aimed to combat rising electricity theft, including loss of professional licenses for electricians found to be complicit.

RES projects participating in auctions for feed-in tariffs will face greater grid-injection restrictions and will be required to incorporate energy storage systems.

Also, small-scale PVs will need to go to auction for their feed-in tariffs as of May 1, 2024. Until now, this group of PVs has been entitled to administratively set tariffs.

Furthermore, under the new proposals, EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, will be able to participate in SPVs for wind studies at offshore areas marked out for a first wave of offshore wind farms.

 

Administratively set tariffs for small-PV tariffs ending

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RES and CHP units involved in auctions for tariffs as of May 1, 2024 will be subject to grid-injection restrictions as well as compulsory integration of energy storage systems, according to a draft bill just forwarded by the energy ministry for consultation.

European Commission approval will be required before these new terms can be applied in the Greek market.

The draft bill also includes a provision ending administratively-set tariffs for small-scale PVs as of May 1, 2024. Projects under a Special Program for the Development of Photovoltaic Systems at buildings are planned to be exempted from this revision.

Also, RES projects developed at areas with saturated networks or linked to mainland interconnections servicing the Cyclades islands or Crete will be subject to a December 31, 2024 deadline for administratively set feed-in tariffs.

RES investors behind small-scale PVs projects for which operating terms have already been established or for which complete applications have been submitted to RES market operator DAPEEP until April 30, 2024 will have until August 31 to submit declarations certifying their readiness to operate in order to maintain their administratively set feed-in tariffs.

Fast-track renewable energy PPAs sparking activity

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

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

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

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

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

 

More favorable operating terms for “PVs on Farmland”

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The energy ministry is planning more favorable operating terms for small-scale solar systems inducted into a “PVs on farmland” subsidy program supporting PV installations by farmers seeking to meet their energy needs through self-production.

A 50-KW capacity limit has been decided on for PV investments included in this subsidy program, whose terms have been finalized and are set to be officially announced in the first half of April.

Distribution network operator DEDDIE/HEDNO will then launch an online platform accepting applications for the “PVs on farmland” subsidy program, to make available a total of 30 million euros at a subsidy rate of 40 percent, regardless of system capacity.

Farmers will be able to submit applications for the subsidy program without having previously signed connection term agreements with the operator.

PV systems with a capacity of up to 30 KW will be regulated under a net-metering system, while photovoltaic systems with capacities ranging from 31 to 50 KW will be regulated under the net-billing system, energypress sources informed.

Farmers planning smaller PV systems of up to 10 KW will be given priority in the processing of applications. Between 2,000 and 3,000 applications are expected to be approved.

 

Island Decarbonization Fund, to offer €1.5-3bn, imminent

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The Island Decarbonization Fund, which has been allocated 25 million CO2 emission rights expected to raise between 1.5 and 3 billion euros through auctions, is set for launch, energy minister Thodoros Skylakakis told an event on Rhodes yesterday.

He was speaking at the Rhodes Co-Lab Sustainable Destination, an event co-organized by the South Aegean Administrative Region and the TUI Group to promote the transformation of Rhodes into a sustainable and resilient tourist destination.

The proceeds to be raised by the CO2 emission rights, at auctions in 2024 and 2025, are planned to co-finance up to 60 percent of the Greek islands’ decarbonization effort.

The Island Decarbonization Fund will officially be launched with the signing of an agreement by the European Commission’s Directorate-General for Climate Action (DG CLIMA) and the European Investment Bank.

The energy ministry has already begun specifying initiatives that will receive support through the Island Decarbonization Fund. Renewable energy projects are expected to secure the biggest share of the fund, followed by electrical grid interconnections.

The remaining amount is expected to go towards financially supporting various other initiatives, including cold ironing (emission-reducing shore-to-ship power supply).

Deputy energy minister Alexandra Sdoukou told the Rhodes event that a 500 million-euro amount is already anticipated from the Island Decarbonization Fund for an electrical interconnection linking the Dodecanese islands with the mainland.

Sdoukou also made note of plans for the development, on Rhodes, of a RES facility with a storage unit promising a capacity of at least 50 MW. This project will increase the RES share of the island’s energy mix to at least 40 percent, she added.

IPTO, Albania’s OST discuss transmission line progress

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The administrations of Greek power grid operator IPTO and the Albanian transmission system operator OST have just held talks in Tirana to discuss the progress of a new 400 kV overhead transmission line being developed between the two countries.

According to an announcement, technical teams of the two operators will work closely to accelerate the project’s development. The need for close cooperation for swifter progress was highlighted during the meeting.

In addition, the meeting’s participants examined ways to increase interconnectivity between the two countries, an issue that also concerns the wider western Balkans region.

The two operators agreed on establishing technical teams to study how increasing RES penetration and the development of domestic and international interconnections are creating further needs for grid capacity boosts.

These technical teams will be expected to start work, in the coming months, on joint studies with a view to adopting a common approach for strengthening existing interconnections and creating new ones in the region.

RES energy mix share at 56%, zero-level prices for 3 hours

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The wholesale electricity price average for today has fallen by nearly 30 percent, down to 47.5 euros per MWh from yesterday’s average of 67.5 euros per MWh.

Today’s wholesale electricity price maximum price will reach 81 euros per MWh, while the minimum price level will fall to zero, over three midday hours. Also, a price level of just 1 euro per MWh will apply for one hour.

Overall electricity demand for the day is close to 150 GWh. Renewables will cover a 53.7 percent share of the energy mix, followed by natural gas, covering 30 percent, electricity imports, providing 10.1 percent of today’s domestic electricity needs, hydropower, at 3.2 percent, and lignite at 0.2 percent.

IPTO requests special terms for swifter project development

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Power grid operator IPTO, seeking to counter delays faced by projects of public interest, has requested special terms from the energy ministry that would ensure swifter environmental permitting and expropriation procedures for grid projects as well as, wherever necessary, permission to use seashore, land and marine areas.

IPTO’s time frames for projects and Greece’s wider energy transition are being jeopardized by obstacles, primarily environmental permitting, forcing the operator to regularly update its delivery dates.

IPTO’s new ten-year development plant, covering 2025 to 2034, includes over 80 projects of various scale. Completion dates for many of these projects have been pushed back by one to two years.

The energy ministry’s leadership promised to examine IPTO’s request for special terms that could accelerate the progress of projects during a meeting between the two sides last week, sources informed.

Electrical grid project delays are becoming increasingly urgent as energy transition goals set for 2030 are just six years away and loftier renewable energy targets are being set.

 

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.

 

Guarantees of origin market set for growth trajectory, projected to reach €3.7bn by 2030

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Aurora Energy Research projects that the Guarantees of Origin (GO) market will soar to 3.7 billion €in 2030 alone.

• Report underscores significant growth in both demand for and supply of GOs, although the regulatory environment will be a key determinant of how the market evolves.

• Shifting to a system of hourly GOs could increase revenues for renewables assets from GOs by at least 33%.

OXFORD (AURORA ENERGY RESEARCH)—The Guarantees of Origin (GO) market is expected to grow substantially, with estimates projecting reaching a size of 3.7 billion € by 2030 and GO cancellations expected to increase by more than 80% since 2022, a comprehensive study by Aurora Energy Research, the world’s largest dedicated power market analytics provider, suggests. 

While these certificates are primarily sourced by electricity consumers as part of their strategic efforts or green targets, Aurora assesses that GOs will also play a pivotal role in facilitating the transition to green hydrogen. Demand is particularly strong from corporate off-takers in Germany, France, and Italy, which together comprised 50% of total GO cancellations in Europe in 2023.

On the supply side, Aurora identified a persistent undersupply of GOs in key markets including Germany, the I-SEM, Belgium and selected other markets, primarily attributed to local regulations that impose restrictions on subsidised renewable assets, preventing them from issuing and monetising GOs. At the same time, Aurora expects the share of GOs issued by hydropower assets—previously the largest provider of low-cost GOs to consumers across Europe—to drop from around 60% at present to 35% by 2030, as more renewables issuing GOs come online elsewhere in Europe. 

Ryan Alexander, Research Lead at Aurora Energy Research, emphasised:

“We expect GOs to only gain importance over the coming years, as they are the EU’s main instrument to track the origin of electricity, and demand for them is growing. At the same time, there are deep regulatory and commercial uncertainties in this market, which will make it challenging for renewables developers and off-takers alike to navigate over the coming years.”

The future of granular GOs

Granular hourly GOs are crucial for accurate electricity usage tracking and green hydrogen production. EU regulation requires hourly GOs by 2030 as one of three ways in which domestically produced hydrogen can be claimed as green, making their implementation a central component of the energy transition. Jannik Carl, Research Associate at Aurora Energy Research, commented:

“If markets were to shift to a system of hourly and local GOs, revenues for Renewable Energy Systems operators could increase. When modelling Spain in 2030, we found a potential increase of GO revenues across technologies of at least 33% compared to the current annual system.”

In 2030, the Spanish market hourly GO prices are estimated to be 2.5 times as volatile as Day Ahead market prices in the same period, highlighting the risk to off-takers of committing to match 100% of their load profile to green generation on an hourly basis without a proper procurement strategy in place.

The benefits of high hourly GO prices in Spain would accrue to all types of renewables assets but particularly to hydroelectric assets, Aurora assesses, as they can more closely match the average electricity demand profile. As neither wind nor solar assets can flexibly adjust their production patterns, this highlights the role storage technologies could play in a world demanding 24/7 certification of green power consumption to reduce volatility.

Rebecca McManus, Senior Research Associate at Aurora Energy Research, commented: 

“By opening up the GO market to batteries, regulators could create new revenue streams for battery asset owners, while driving costs down for consumers in the transition to 24/7 green power.”

 

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.

New RES units total 1.5 GW over just 5 months; NECP target exceeded

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Renewable energy facilities representing a capacity of 1.5 GW were launched over a period of just five months between early June and November last year, data provided by power grid operator IPTO data has shown.

RES facilities in operation totaled 12.2 GW in early November, 2023, up from 10.65 GW in early June, 2023, the IPTO data showed.

The November tally included 5.06 GW in wind farms and 6.55 GW in solar energy farms. As had been anticipated, solar energy farm launches recorded a bigger increase, which reached 1.28 GW, compared to five months earlier.

Wind farm capacity growth recorded a more modest rise of 261 MW. The remaining 35 MW in increased RES capacity resulted from biomass-biogas, small-scale hydropower and CHP installations.

RES facilities possessing connection terms totaled roughly 15.5 GW in November, 2023, which, combined with 12.2 GW in RES facilities already operating by that month, results in an overall RES portfolio capacity of 27.7 GW.

This figure greatly exceeds the country’s 2030 target for installed RES capacity, set at 23.5 GW in the revised National Energy and Climate Plan.

 

Ministry multi-bill filled with energy sector initiatives

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An energy ministry multi-bill to be forwarded for consultation imminently, possibly this Friday, following numerous revisions, includes at least twenty energy-sector provisions.

These include a new legal framework for boosting grid capacity; Apollo, a 20-year RES support program envisaged to offer solar-energy output to low-income households and local government organizations; a revision facilitating a new combined heat and power (CHP) plant planned by power utility PPC at a former lignite-fired facility in Kardia, northern Greece; an SVP for floating solar farms as a pilot project, beginning with 10 MW at sea and 8 MW in lakes and reservoirs; as well as an SVP for the development of offshore wind farms, an effort overseen by EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company.

The multi-bill also includes pending issues announced last year, such as a new electricity theft framework; and a revised universal electricity supply service – currently offered by the top five electricity suppliers, based on market share, as a last-resort service to non-punctual consumers who have been blacklisted by suppliers – to be limited to four months.

Copelouzos holds Balkan, Italy talks for GREGY Interconnector

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Copelouzos group president Dimitris Copelouzos has been involved in a series of meetings with leading energy-sector officials in the Balkans and Italy to explore the level of interest by energy groups and funds for investments concerning the Greek-Egyptian GREGY Interconnector and development of 9.5 GW in RES projects in Egypt, sources have informed.

Meetings held by the Greek entrepreneur with the energy ministers of Bulgaria, Romania and Serbia in their respective capitals, as well as in Italy with Italian Deputy Prime Minister Matteo Salvini and top-ranked officials of Italian energy company Enel, have indicated a strong interest by all for renewable energy production from Africa’s north, as well as the establishment of PPAs.

The Copelouzos group recently founded a subsidiary named Elica to  promote the Greek-Egyptian GREGY Interconnector, a link that would facilitate transportation of Egyptian RES production to Europe.

The next few months will be crucial for GREGY Interconnector’s progress on a technical level as documents for related tenders are currently being prepared. Tenders will be staged to select consultants and designers who will undertake four main studies estimated to cost between 35 and 40 million euros, of which 50 percent will be sought through EU funds.

The series of tenders, expected to begin in April and May, will include a technical study, a geophysical and geotechnical study, as well as a seabed mapping study, the most challenging of all, covering a 954-km route in the eastern Mediterranean.

Highlighting the significance of the GREGY Interconnector and RES projects to be facilitated by this link, the EU and Egypt have issued a joint statement.

“Given the new energy and geopolitical reality, the EU and Egypt recognize the need to strengthen energy security, and, therefore, have agreed to intensify their cooperation with a focus on renewable energy, energy efficiency, as well as other low-carbon technologies, building on Egypt’s significant potential for more efficient expansion of renewable electricity generation through projects such as the GREGY Interconnector,” the joint statement noted.