renewables

Older industrial PPAs to be given connection-term priority

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A legislative revision promising connection-term priority to RES projects whose output is intended for long-term PPAs with industrial and agricultural consumers will apply only to older agreements going back two years, such as those established between power utility PPC and metal processing company Viohalko and cement producer Titan, energypress has been informed by sources at the energy ministry, preparing to submit the revision to Parliament today.

The legislative revision will be attached to a finance ministry bill concerning a 15 percent minimum tax rate on multinationals.

Market players who rushed to establish PPAs in the lead-up to this legislative revision will not be entitled to connection-term priority rights.

The number of PV projects – in terms of capacity – to be granted connection-term priority rights as a result of the legislative revision will be decided through a ministerial decision at a latter date, when the energy ministry has a precise figure on the number of PPAs energy-intensive consumers have established with RES producers.

However, it is already considered certain that roughly 500 MW in PV projects to be developed for lower-cost electricity to the agricultural sector will benefit from the legislative revision.

The overall capacity of RES projects – for agricultural and industrial energy consumption – linked to this legislative revision may be below a 1,300-MW capacity initially reported.

 

RES injection cuts at 228 GWh in ’23, bigger cuts in 2024-25

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Renewable energy output not injected into the grid last year, to keep the market balanced, reached a considerable sum of 228 GWh, roughly 1.1 percent of overall renewable-energy output in 2023, while the level of grid-injection cuts is expected to rise further in 2024 and 2025.

At present, power grid operator IPTO is making these grid-injection cuts horizontally and proportionally, limiting the production capacities of RES facilities in operation. Also, cuts are being made at projects enabling remote intervention.

The 228 GWh of renewable energy output not injected into the grid in 2023 resulted from a need to maintain a balance between excess production and demand, as well as to keep imports and exports at an equilibrium – not to prevent grid congestion.

Further grid-injection cuts are anticipated over the next couple of years as RES penetration will increase significantly but electricity demand is seen remaining relatively unchanged.

These grid-injection cuts cuts are expected to drop considerably as of 2026, when a first wave of energy storage units is planned to be launched.

A special framework being developed by a project-management division at the energy ministry will also help subdue these cuts as it should offer clarity to investors by offering a far clearer picture on the proportion of RES output that will not be injected into the system and for which, therefore, they will not be compensated, meaning investors will be able to shape business plans without threatening the financial viability of their projects.

Reed Smith advises PPC Renewables on acquisition of wind projects portfolio from Intrakat S.A.

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ATHENS – Global law firm Reed Smith has just announced that it has advised PPC Renewables S.M.S.A., the renewables arm of Public Power Corporation S.A., one of the leading power utilities in Southeast Europe, on its successful acquisition of a portfolio of wind assets totalling approximately 164 MW from Intrakat S.A.

In addition, the firm advised on the parties’ strategic cooperation for the joint development of a 1.6 GW renewable energy projects portfolio.

PPC Renewables, a wholly owned subsidiary of Public Power Corporation, one of the leading power utilities in Southeast Europe, has been a pioneer in wind and solar power sectors since the 80s. It currently operates a fleet of renewable power plants in excess of 700 MW, while it has a projects portfolio of 1 GW under construction. The company aims to create an expanded and diversified portfolio of renewable and energy storage projects totalling 5 GW within the next five years.

Intrakat Group is a leading player in the Greek construction sector, engaged in the development of large-scale infrastructure projects, the construction of commercial and industrial facilities, as well as the manufacturing of steel structures. The group is also actively involved in a wide range of other business activities such as telecoms, renewables, environmental management and the development of real estate projects.

The agreement concluded between the parties relates to the acquisition from PPC Renewables of three entities of Intrakat, which are owning either directly or indirectly, via SPVs, a portfolio of operating, under construction and ready-to-build wind power projects with an aggregate capacity of approximately 164 MW, and the participation of PPC Renewables in four entities of Intrakat, which are owning either directly or indirectly, via SPVs, a portfolio of wind and solar photovoltaic power projects under development, with an aggregate capacity of approximately 1.6

GW. The strategic cooperation between the parties may be further expanded under certain conditions to include a sizeable portfolio of battery energy storage projects.

The transaction corresponds to an enterprise value of €100 million for the percentage participation of PPC Renewables, while the value of the joint investment, in its potential full development, is estimated to exceed €1 billion.

The Reed Smith team that advised on the deal was led by Athens corporate partner Dimitris Assimakis, supported by counsel Minas Kitsilis and associates Georgia Koui and Eleni Alexiou. Senior associate George Fountas and associate Zissis Papazissis advised on certain finance law aspects of the transaction, and Brussels partner Christian Filippitsch advised on the competition law aspects of the transaction.

Assimakis, corporate partner and head of Reed Smith’s Greek energy team, commented: “We are thrilled to have supported PPC Group on this mega deal for the Greek renewable market, and assisting the group once again in getting closer to the achievement of its strategic goal to become the green energy champion in Greece and the wider region. Indeed, a fascinating journey that highlights the new identity of the group and makes evident that this is not going to be just a short trip.”

“The transaction, despite the great volume of the corporate vehicles and the assets involved and the complexity of its structure, was completed in only two months’ time, an unprecedented record and not only for the Greek market, thanks to the very high professionalism, strong commitment, and dedication of all the parties involved. A special mention to PPC Renewables management and its execution teams for their unparalleled skillfulness and business orientated approach but most importantly, a big thanks to all of them for the continuous trust in our practice.”

About Reed Smith

Reed Smith is a dynamic international law firm dedicated to helping clients move their businesses forward. With an inclusive culture and innovative mindset, it delivers smarter, more creative legal services that drive better outcomes for clients. Its deep industry knowledge, longstanding relationships and collaborative structure make the law firm the go-to partner for complex disputes, transactions, and regulatory matters.

HEDNO legally shielded in case of transformer-upgrade effects

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The energy ministry is preparing a legislative revision designed to offer distribution network operator DEDDIE/HEDNO legal protection against transformer short circuits.

The revision, likely to be attached to a forthcoming urban planning bill, will oblige medium-voltage consumers to take appropriate action protecting their installations from damage that could be caused by short-circuit level increases.

DEDDIE/HEDNO is currently staging preliminary studies concerning an upgrade of the electrical distribution network’s transformers.

The energy ministry’s legislative revision will ensure that the distribution network operator will be spared of any legal issues should this upgrade have adverse effects on installations of medium-voltage consumers located up to 3 km from respective substations.

The ministry’s legislative revision will require consumers to inspect their electrical installations ahead of the operator’s upgrade of transformers. Should any issues be identified during these checks, consumers will need to replace any necessary equipment at their expense.

According to sector officials, the revision is essentially a precautionary measure as electrical equipment currently being used is relatively modern – less than 20 years old – with specifications to withstand increased short-circuiting levels.

Transformers in areas where investors have expressed interest to install RES facilities will be given priority by the distribution network operator during its upgrade process.

 

Energy Exchange to launch pilot platform for PPAs in Q3

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A pilot platform being developed by the Energy Exchange for renewable energy PPAs is expected to be launched within the third quarter of this year, energypress sources have informed.

The main idea, given the current maturity of the market, is to offer common ground where the parties involved – RES producers and off-takers – can converge to negotiate bilateral contracts.

A simple platform will be offered to facilitate the needs of buyers and sellers, the sources noted, adding the Energy Exchange will not include more complex functions such as billing, clearing or other services.

Also, the Energy Exchange is developing a contract template as assistance for parties interested in establishing PPAs, especially smaller players. It will be at their discretion whether to use it or not.

The aim will be to offer a formula ensuring proportionality and balance between producers and off-takers in order to minimize the possibility of contracts being broken over the slightest of issues.

No particularly challenging regulatory issues remain pending for the platform’s operation, meaning delays are unlikely.

The Energy Exchange may revise the platform’s original form at a latter date in order to offer additional services that would correspond with the PPA market’s increased maturity anticipated over time.

EU energy-crisis concerns over Ukraine corridor ‘manageable’

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European fears of further energy-crisis woes that could result from the nearing end of a five-year pipeline gas transit agreement between Kyiv and Moscow for Russian gas supply to Europe via Ukraine, appear to be manageable, as long as a series of specific measures are implemented, most EU ministers responsible for energy agreed at an Energy Council in Brussels yesterday.

The bilateral agreement between Ukraine and Russia expires at the beginning of 2025. Ukraine has declared it does not intend to renew this agreement.

Further energy-crisis concerns as a consequence of this agreement’s conclusion, expected to reduce the EU’s total gas imports by 5 percent, can be prevented if EU member states speed up their development of roughly 20 LNG facilities planned from Europe’s north to south; renewable energy investments gain further momentum; energy-savings measures are continued; natural gas consumption reductions continue at the current rate; and LNG imports are increased to make up for reduced Russian gas imports, energy ministers of most EU member states agreed at the Brussels meeting.

Last year, approximately 14 bcm of Russian gas was transported through the Ukrainian corridor to countries such as Austria, Hungary and Slovakia.

Numerous EU member states achieved renewable energy production all-time highs last year. In Portugal, renewables covered 61 percent of the country’s energy needs in 2023. RES coverage of Greece’s energy needs reached 57 percent. In Germany, RES units met 52 percent of the country’s energy needs, while in Belgium the figure reached over 30 percent.

‘Elounda offshore wind farm limitation plan in progress’

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A legislative revision intended to minimize the perceived visual disturbance of offshore wind farms planned off Elounda, northeastern Crete, following strong local reaction, is being worked on, energy minister Thodoris Skylakakis has told Parliament.

The government has decided to reduce the size of the Elounda marine area that would host offshore wind farms to a plot capable of hosting units with a maximum capacity of 400 MW, 57 percent below the original plan’s capacity.

Elounda is one of ten areas included in an initial 2-GW plan for offshore wind farm development around Greece.

Just two or three offshore locations, primarily Elounda, met resistance from local communities, while 95 percent of areas proposed have not provoked any reaction, the minister informed.

Greece’s offshore wind farm development plan is of major importance to the national economy as the country possesses the greatest wind-energy potential in the eastern Mediterranean, Skylakakis supported.

Elounda offers excellent wind-energy potential, but concerns over visual disturbance have resulted in a need to revise the area’s development plan, Skylakakis noted.

“Cases of visual disturbance are difficult as any activity can result in disturbance. We need to keep in mind that, in order to have renewables, some disturbance to the overall setting is inevitable. There is no part of this country without a beautiful setting,” the minister stressed.

He went on to note: “There is a fundamental misunderstanding. Energy production is not for [the benefit of] producers, but for consumers. When it comes to energy matters, we tend to think that production is for producers to have profitable investments. In reality, it is to achieve lower energy prices.”

 

 

Many energy-sector provisions in urban planning multi-bill

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The energy ministry has included a host of provisions that essentially constitute a mini energy bill into its urban planning multi-bill, which includes over 120 articles and is expected to be submitted to Parliament by the end of this week.

The series of energy-sector provisions, more than 20 in total according to energypress sources, include legislative revisions concerning floating PV systems; an SPV for offshore wind farm preliminary research; Apollo, an energy-cost offsetting program aiming to cover a significant proportion of farmers’ energy needs; and CHP units planned by power utility PPC.

The addition of extra energy-sector provisions ahead of the multi-bill’s delivery to Parliament has not been ruled out. They are expected to be divided into six categories.

The revisions will include terms enabling the installation of RES and CHP units – with or without integrated electricity storage batteries for self-consumption – on non-interconnected islands.

Also included are terms for the development of ten offshore solar farm pilot projects with capacities of between 0.5 MW and 1 MW for a total capacity of 10 MW. These will be exempted from competitive procedures for their operating contracts.

Based on the revisions, EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, will be able to establish subsidiaries and an SPV for commissioning wind and seabed studies at marine areas to be allocated for a first wave of offshore wind farms.

Greece, according to the National Energy and Climate Plan, aims to have begun developing 1.9 GW in offshore wind farms by 2030.

 

 

Net-billing seen replacing net-metering following EC reaction

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The energy ministry is believed to be considering to abolish net-metering for self-production and replace it with a net-billing formula following objections raised by the European Commission, promoting the latter approach as most appropriate for self-consumption.

Greece’s ongoing PV support program subsidizes further penetration of net-metering systems in the domestic sector.

The energy ministry, currently examining market details in order to decide on how to react to the Commission’s criticism of the country’s support plan, is likely to abolish net-metering imminently and instead extend net-billing to domestic self-consumption systems with a production capacity of up to 10 KW, as well as commercial and agricultural PVs with capacities of up to 100 KW.

Should this direction be taken, the ongoing PV Stegi support program for roof-mounted PVs will soon be discontinued, March 31 believed to be a date under consideration. It would be followed by the announcement of a corresponding support program based on a net-billing formula.

Both net-metering and net-billing compensate solar-system owners for transferring electricity to the grid when their panels overproduce, but the ways the two systems compensate differs.

Net metering credits equal the retail electricity rate paid by customers for electricity. On the contrary, net billing credits equal the wholesale rate electricity companies pay for electricity.

Brussels has taken the side of protesting suppliers, including in Greece, as, under the net-metering formula, energy offsetting is essentially being conducted at their expense given that excess generation is injected into the grid at nighttime hours of low wholesale prices, well below higher energy prices in the evening hours, when customers meet most their energy needs.

Mytilineos overtakes PPC as leading high-voltage supplier

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The Mytilineos group’s Protergia energy supply company has overtaken power utility PPC in the high-voltage category to become the new market leader, in this category, latest data issued by power grid operator IPTO covering January has shown.

Overall, for all categories combined, PPC shed nearly 3 percentage points in January, ending the month with a market share of 52.84 percent, down from 55.62 percent in December.

Protergia gained ground in all categories combined to capture second place in January with a market share of 14.65 percent, up from 9.19 percent in December. This rise has been mainly attributed to Mytilineos group member Aluminium of Greece’s switch from PPC to Protergia.

Heron was ranked third in all categories combined with a market share of 10.64 percent in January, down slightly from 10.76 percent in December.

In the medium-voltage category, PPC’s market share contracted to 34.7 percent in January from 36 percent in December, while Protergia and Heron both achieved gains. Heron’s market share in this category rose from 16.8 percent to 17.4 percent, while Protergia’s market share increased from 16 percent to 17.1 percent.

As for the low-voltage category, PPC shed just a mild fraction of its still-dominant market share, while Protergia was the big gainer, leaping nearly 1.5 percent, from 7.7 percent to 9.1 percent.

Overall electricity demand in Greece rose by 6.62 percent in January, 2024 compared to a year earlier, the IPTO data showed.

Also, renewable energy captured a 50.6 percent share of the country’s energy mix in January, followed by gas-fueled production, providing 41 percent of the month’s total, and hydropower, at 8.4 percent, the data showed.

 

Green-energy Guarantees of Origin auction delayed

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

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

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

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

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

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

US sees American interests in PPC’s southeast Europe plans

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Greek power utility PPC’s aspirations to establish itself as a key energy market player in the Balkans and southeast Europe is being embraced by US investors who, through such a development, see further potential for interests of their own, given the excellent standing of Greek-US bilateral ties.

Protecting the region’s energy sufficiency from the threat posed by Russia remains a top priority for the US, which also sees potential for American interests in PPC’s plans to penetrate markets in the Balkans and beyond with large quantities of renewable energy.

PPC’s chief executive Giorgos Stassis made note of the power utility’s plans for southeast Europe, and also referred to the wider Three Seas Initiative in an announcement made yesterday following a meeting with Geoffrey Pyatt, US Assistant Secretary of State for Energy Resources.

The Three Seas Initiative, presently covering 13 countries between the Baltic Sea, Black Sea and Adriatic Sea, aims to attract major investments from the EU and the US in the areas of road and rail transport, economy, energy infrastructure for transmission of renewable energy, fiber optic development and everything needed to launch 5G telecommunication networks.

Greece, Austria, Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia are all included in the Three Seas Initiative, while Ukraine and Moldova were granted membership rights last September.

Ministry determined to ensure PPAs for industrial consumers

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The energy ministry appears determined to ensure renewable-energy PPAs for industry and intends to incorporate all required measures into an overall plan being developed for the liberalization of grid space.

However, the ministry has a conundrum to resolve as it must combine increased grid-injection restrictions for RES units obtaining connection terms from now on with the need to keep prices low for PPAs involving RES producers and industry.

These increased grid-injection restrictions for RES units come as a challenge for renewable-energy PPAs already established, among them agreements between power utility PPC with metal processing company Viohalco and cement producer Titan.

Besides modifying RES output, these restrictions also affect data used by parties involved in PPAs to reach agreements on electricity purchase prices.

To offset negative impact, the ministry is considering to subsidize behind-the-meter battery additions to projects. This would enable RES producers to meet the energy needs of industries at latter dates should PV production exceed upper limits.

A subsidy-support solution would require the European Commission’s approval as it is considered a form of state aid.

 

Offshore farms to face stricter follow-up environmental terms

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Local reaction by local communities and officials dreading the possible impact of offshore wind farms on local economies has been widespread amid ongoing procedures for approval of an initial strategic environmental impact assessment of the country’s offshore wind farm development plan.

In response, the energy ministry has determined it needs to clarify, to local communities and officials, that candidate areas will face stricter environmental terms during second-round assessments.

The current strategic environmental impact assessment concerns 25 candidate areas being considered to serve as plots for offshore wind farm installations in the short term, by 2030 to 2032, and further ahead.

Though the initial strategic environmental impact assessment includes general environmental guidelines for candidate areas, individual assessments to follow will include more detailed and extensive terms that are expected to narrow down the final list.

Clear-cut terms for project development are also in the interests of investors, wanting maximum assurances against any possible legal challenges.

The ministry also plans to step up action underlining the benefits promised to local communities by offshore wind farms, the main attribute being their large energy-generating potential.

Also, energy ministry Thodoris Skylakakis has indicated a new framework will be established for offshore wind farms to offer local communities greatly improved benefits compared to those offered for onshore wind farm installations.

Enhanced benefits are expected to contribute to shaping more favorable attitudes by local communities towards planned offshore wind farm investments.

 

Offshore wind farm plan proving trickier than expected

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Implementation of the national offshore wind farm development program is proving to be trickier than expected, according to competent market sources, as local opposition and a number of constraints have raised questions over the feasibility of the initial plan.

Sites designated to host offshore wind farms are sufficient for the plan’s first wave of facilities until 2030, but the spatial sufficiency for further expansion, beyond 2030, is questionable.

The designation of offshore plots has been made by selecting marine areas situated at least six nautical miles, or 11 km, off coastlines, which, sources told energypress, ends up being inadequate if capacity targets of between 2 and 3 GW are to be achieved beyond 2030. An expansion of marine territory will be needed, the sources noted.

On the other hand, this distance criterion has also raised concerns among various local officials who fear offshore wind farm proximity could have an adverse effect on local economies.

Municipal and regional committees, tourism industry associations, hoteliers and a number of environmental groups are all on high alert and are even considering to take legal action in order to challenge the development of offshore wind farms. Strongest reaction, so far, has come from officials in Crete’s northeast, Ikaria and Corfu.

According to a preliminary national plan, an offshore wind farm target of 1,900 MW has been set for 2030, while a 6,200-MW target has been set for 2035. Further ahead, this plan’s goal for 2050 is 17,300 MW.

 

Deye, Solarity start partnership for sustainable solar EU

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Deye, the world’s leading solar inverter manufacturer, and Solarity, an excellent distributor and solutions provider of photovoltaic (PV) systems, have officially signed an agreement to further their collaboration, marking a significant milestone in advancing the reach and impact of their innovative solar solutions.

Solarity offers a complete assortment of both on-grid and off-grid solutions, including modules, inverters, mounting systems, batteries, and accessories, to PV professionals in Europe, Latin America, the Middle East, and Northern Africa.

Its international team has over 10 years of PV experience with offices on four continents and is based in Prague, Budapest, Kyiv, Amman, Warsaw, Casablanca and Bogota. Its business partners are installers, EPC contractors, resellers, wholesalers, distributors and manufacturers in almost all PV markets.

Solarity has already served hundreds of B2B customers from more than 50 countries and has delivered more than 1 GW of PV material worldwide.

Ningbo Deye Inverter Technology Co., Ltd., established in 2007 and listed on Shanghai Stock Exchange in 2021, stands as a leading company operating on the global solar market. Known for its commitment to innovation and forward-thinking, Deye boasts a diverse portfolio of inverters, ranging from 0.3 kW to 136 kW. Specializing in advanced inverter technologies, Deye is a pioneer in hybrid inverters, on-grid inverters, and microinverters.

The newly forged agreement between Deye and Solarity aims to strengthen their cooperation, enhancing the quality of products and services delivered to local customers.

Both companies share a common vision of promoting sustainable development and contributing to the global renewable energy reform. By leveraging their respective strengths and expertise, Deye and Solarity aim to create significant value for the solar industry and society at large.

“This is another milestone for us in providing the best photovoltaic products and services. We are grateful and even more committed to empowering our solar partners worldwide. Deye hybrid inverters represent flexible and powerful solutions for residential and commercial projects,” says Michal Adrian, founder and CEO at Solarity.

Alan WU, Head of Deye sales director, sees this as a significant step as the company introduces its industry-leading and innovative products to the local market.  “We have built a comprehensive and strong team covering sales, pre- and after-sales support in Europe since last year to provide timely support to local clients. Now we take a step further to forge the distribution agreement with Solarity, reinforcing our commitment to the Europe‘s clean transition towards renewable energy future. We’re looking forward to extending our comprehensive local technology training programs, both online and offline, for our distributors and installers this year. We believe that sharing technology knowledge is the most effective means of communication with our clients. By continually researching and developing more versatile and flexible products, along with improving our pre- and after- sales experiences, we’re dedicated to exceeding our clients’ expectations and fulfilling their diverse demands,” he added.

Photo: Group photo of the Deye team (left) and the Solarity team. 

Gov’t solar energy plan aims to cut farmers’ energy costs

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The energy ministry is preparing a solar-energy support program for farmers that would reduce their energy costs by offsetting consumption.

This initiative will either be integrated into the Apollo initiative – a 20-year RES support program envisaged to offer solar-energy output to low-income households, local government organizations, as well as public drainage and municipal water supply and sewerage companies – or a second Apollo program will be established specifically for farmers.

Officials remain undecided as to which of these two options will be preferred, sources informed.

As part of the strategy, energy consumption levels of farmers in all of Greece’s administrative regions will be analyzed to determine regional solar-energy needs.

Separate auctions will be staged for each administrative region to offer participants 20-year tariffs as part of their virtual net-billing arrangements.

The eventual energy-cost support scheme for farmers is expected to be included in a wider package of support measures being prepared by the government as farmers continue mobilizations in various parts of the country over high production costs and reimbursements.

Stricter RES project timeline considered to free up capacity

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The energy ministry is considering to introduce stricter timelines for the completion of RES projects possessing connection terms, the initiative’s aim being to free up grid capacity.

As part of the effort, the energy ministry has asked for power grid operator IPTO’s opinion on whether existing RES project development timelines should be made tighter in order to eliminate projects that have stalled for a variety of reasons.

The ministry believes that a proportion of grid space that would become available through the implementation of a tighter development schedule for RES projects should be allocated to the distribution network for the development of small-scale photovoltaics. Priority would be given to self-consumption applications.

Deputy energy minister Alexandra Sdoukou presented the fundamentals of the overall plan at a recent event staged by SEF, the Hellenic Association of Photovoltaic Companies. Releasing grid space and distributing this capacity to new projects are the plan’s two key aspects, she explained.

Greater grid-injection restrictions for renewables and the addition of batteries to RES projects with connection terms are paramount in the effort to broaden available capacity, Sdoukou reiterated.

RES project battery-addition feasibility sought by investors

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Investors generally view battery additions to RES projects as beneficial as, despite ongoing RES sector ambiguities, these upgrades ensure greater IRR figures, market officials have told energypress.

Market players are now working on taking crucial sustainability-related decisions concerning battery additions to RES projects ahead of forthcoming auctions and as a result of increased grid-injection limits being imposed in the market.

Investors, in collaboration with consulting companies, are engaging in calculations to assess the revenues resulting from integrating batteries into RES projects. This process includes identifying various factors that impact revenues and determining the extent of their influence.

RES investors are also making an effort to establish more specific information on variable costs that may arise, even though the sector’s regulatory framework is not yet entirely clear and concrete.

In conducting their calculations, investors are assuming that RES units will, from now onwards, operate under conditions of greater grid-injection restrictions and production cuts.

GREGY gaining momentum, investment decision early ’25

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Elica, a subsidiary of Greece’s Copelouzos group established to promote the Greek-Egyptian GREGY Interconnector, is preparing to push ahead with studies that will determine the project’s cost and also establish sites and partners for the development of 9.5 GW in RES projects.

All these aspects are crucial factors ahead of a final investment decision, expected to take a year. GREGY Interconnector, initially budgeted at 4.2 billion euros, promises to facilitate renewable energy exports from Egypt to Europe via Greece.

Greek Prime Minister Kyriakos Mitsotakis and Egyptian President Abdel Fattah Al Sisi in El Alamein focused on the GREGY Interconnector at a recent meeting that was also attended by Dimitris Copelouzos, chairman and managing director of the Copelouzos group, which has encouraged all parties involved to move faster.

At the meeting, the Egyptian President stressed that cooperation should be accelerated and procedures streamlined, while noting any obstacles that may arise must be cleared.

The Egyptian leader’s words essentially encourage closer ties between Egypt’s electricity and renewables ministry, the Egyptian power grid operator EETC, and the Copelouzos group for swift progress on the project’s studies, expected to be awarded in February and completed, barring unexpected developments, towards the end of the year.

A total of four studies – a technical study; environmental impact study; geophysical-geotechnical study; and seabed mapping, the most challenging of the four, to be conducted at a depth 954 km in the East Mediterranean – are needed. Their total cost is estimated at between 35 and 40 million euros. Investors will seek to cover half this cost through EU funding support.

The Copelouzos group should be ready to announce a final investment decision on the GREGY Interconnector in early 2025.

Italy has corresponding plans with the Italian-German Green Vein project for a line facilitating renewable energy transmission from Egypt to Italy.

This project’s planned capacity matches that of the GREGY Interconnector, at 3 GW, but Green Vein’s subsea cable would be three times longer than that of the GREGY Interconnector’s 954 km. This will definitely weigh heavy on the Green Vein’s cost, still not announced.

Plans for a detailed feasibility study concerning Green Vein were announced by UAE’s K&K Group, Italy’s CESI and the Prysmian group, and Germany’s Siemens Energy at the recent COP28 in Dubai.

 

Green Aegean entering crucial cost-benefit analysis stage

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TSOs of countries that have expressed an interest to participate in Green Aegean, an electrical grid interconnection project envisaged to stretch from Greece to Germany’s south, have begun working on non-disclosure agreements ahead of respective cost-benefit analyses.

According to an initial estimate, the grid interconnection project, to cover roughly 1,400 kilometers, was budgeted at between 7 and 8 billion euros, but the figure is likely to change as more detailed studies are completed.

TSOs of Greece, Germany, Slovenia, Austria and Croatia, a recent addition to the group of countries interested in co-developing the project, are expected to soon commence work on detailed technical and cost-benefit studies.

The studies will include details such as the type of cable technology and converter stations preferred, as well as the cost of each segment.

Greek power grid operator IPTO and its counterparts representing the participating countries – Slovenia’s ELES, Austria’s APG, Croatia’s HOPS, and TenneT, a Dutch TSO operating in a large part of Germany – are expected to each conduct separate preliminary studies before deciding on a final master plan covering the entire grid interconnection project.

The project’s cost estimation, a crucial stage, will be complex as each of these countries have different energy mixes.

IPTO’s chief executive Manos Manousakis held talks Tuesday in Brussels with TenneT’s CEO Mannon van Beek, on the sidelines of a meeting held by ENTSO-E, the European Network of Transmission System Operators for Electricity, for an Offshore Network Development Plan.

Germany has yet to make clear its intentions on the Green Aegean project. The project’s sustainability will be a crucial aspect in the country’s decision. Greek solar energy exports will need to represent a low-cost alternative compared to solar energy production in Germany’s south, the country’s sunniest region.

At present, Greek solar energy production costs between 35 and 40 euros per MWh, compared to roughly 50 euros per MWh in Germany’s south, a price gap resulting from Greece’s sunnier weather and, by extension, lower cost of production.

Mytilineos now an established player in UK energy market

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Greek-based industrial conglomerate Mytilineos has developed into an established player in the UK energy market’s renewable energy sector and, more recently, the domains of conventional electricity production and grid projects, since entering this market in 2014.

The company, active in mettalurgy, energy and EPC, has just held a special event in London to mark its tenth anniversary of business activity in the UK as well as its recent signing of a one billion-euro contact for a subsea grid interconnection linking England and Scotland. Numerous guests from the business and financial sector, plus partners, attended the event.

Mytilineos has just inaugurated its new premises in central London, to serve as a springboard for the coming years and new projects.

In the UK, Mytilineos has taken on 82 projects worth a total of 2.5 billion euros in renewable energy, energy storage, electricity production and grid interconnections.

In the RES sector, Mytilineos maintains a UK solar energy portfolio with a 1.25-GW capacity, its 373-MW Cleve Hill project being the standout facility as the country’s biggest licensed solar park. In addition, Mytilineos owns 650 MW in RES facilities at various stages of development.

As for energy storage, Mytilineos ranks as one of the UK’s biggest players with projects totaling 1.1 GWh, a 30 percent share of the country’s market.

In addition, Mytilineos has undertaken complex and demanding thermal energy projects and is currently developing four open-cycle gas-fired power plants, each possessing a capacity of 299 MW.

Mytilineos has also taken on procurement and installation of a modern capacitor for RWE Generation UK, one of the UK’s leading electricity companies. This project represents part of the National Grid Stability Pathfinder Program covering England and Wales.

 

Sympower official: ‘Storage with demand-response optimal mix for grid stability’

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The importance and benefits of the demand-response market, especially for commercial and industrial consumers, has been highlighted, amongst other matters, by Sympower Commercial Director Kostas Athanasopoulos in an interview with energypress.

The official also underlined the need for Greek power grid operator IPTO and the energy ministry to take action to further consolidate the demand-response service in the Greek energy market as a crucial tool for balancing the electricity system.

Mr. Athanasopoulos stressed the need to further promote the demand-response service as a complementary tool to battery energy storage for an ideal combination enabling the electrical system’s proper functioning under conditions of increased RES penetration.

In addition, the Sympower commercial director referred to the initiatives taken by his company to inform participants, stressing, however, that the central role in this process should be played by IPTO, as the responsible TSO, as well as the energy ministry, in order to properly inform market participants.

The full interview with energypress follows:

  • Demand-response is something new in the Greek energy reality. Your company is one of the very few market participants who work on that in a commercial way. So, I would like to start our conversation from point zero. What is demand response and which are the main advantages for the energy market, taking into account the actual challenges of the market? In different words, demand response solves any problem or not? 

Demand response is solving one of the most crucial challenges the Greek Transmission System Operator (TSO) is facing: how to stabilise the electricity grid and avoid blackouts in times of grid imbalance. 

But first, we have to understand how the energy transition impacts grid operation. TSOs have to cover demand during peak hours throughout the day, every day. Demand peaks regularly occur, so, historically, more energy had to be produced to prevent blackouts. However, this also resulted in production sites operating less efficiently to meet this increased demand. 

The Greek power grid had been designed for electricity supply to come from conventional energy sources, such as lignite. As Greece aims to become carbon neutral by 2050, its most recent energy reform plan firmly pushes for a green energy transition powered by wind, solar and hydrogen energy sources. While being sustainable alternatives, wind and solar are also volatile sources which add pressure to the grid by creating increased volatility and reduced predictability. In parallel, we also see an increased electricity demand as companies move away from fossil-fuel-powered processes and electric mobility develops throughout the country. 

Balancing the supply and demand of electricity to prevent blackouts is therefore one of the most critical and challenging aspects of transitioning the grid to a climate-neutral energy system.  

One of the most efficient ways to stabilise the grid, especially as we integrate more volatile energy sources, is through balancing services and demand response. Demand response is a change in electricity consumption from consumers, such as commercial and industrial businesses, to help keep the supply and demand of electricity in balance, stabilise the grid and prevent serious power outages. 

 The moment we see a discrepancy in the grid frequency, which is meant to operate at a stable 50Hz, we can opt to decrease or increase consumption according to what is required to stabilise the grid and prevent blackouts. 

  • As we said before, Sympower is one of the few market participants, acting in demand-response in Greece. If I am right, you are acting in the market as FOSE of demand response for a few months now. What have you observed until now? Could you give us feedback in a few words of that «journey»? 

Demand response in Greece is a very promising market, that not only supports the creation of a sustainable energy grid, but also provides a way for industries to participate in balancing markets and reduce their energy costs. 

Our journey so far has been very interesting, albeit challenging. We were the first independent aggregator to go live on the market in June, so of course we’ve been a bit the Guinea pigs in the market of demand response in Greece. Our licensing process was quite long, since the TSO was simultaneously building the market and ensuing regulation. Actually, we have been in the Greek market for the last three years, as we wanted to be active in the field and support the TSO in establishing a successful and competitive market in Greece. 

We’ve brought our extensive knowledge and experience from the Nordics market to answer their questions and help them solve challenges. We’ve also dedicated time and resources to educating companies, as the overall awareness of demand response was close to nonexistent. We are continuing this education work, and we’ve actually recently hosted a webinar to demonstrate further how commercial and industrial businesses can benefit from demand response services. 

Of course, there are still issues that need to be addressed, but the TSO is working hard on fixing them.  They strongly believe in the future of demand response, and want to create a positive environment for FOSE (ΦΟΣΕ) to participate in. The TSO has learnt through our participation in demand response, and we’re really proud to work closely with them to establish a successful demand response model and market in Greece. 

  • In the same spirit, what do you think that it has to be improved in the Greek market in order to promote in a better way the demand – response? 

The Greek demand response is still in its infancy, so it has to learn to crawl and walk before being able to run. There is much room for improvement, but we must remember that it is a new market. 

So far, the first data that we’ve extracted is very promising and shows that the Greek demand response market will be one of the most financially exciting in Europe. 

There are still many aspects of the market to improve in order to bring it to the same professional level as the Nordics’. The rule book, that is to say the daily operations of the market, the rules and the settlement process, has to improve, as well as the overall communications with the TSO and integration into their platform. 

Despite all of these needed improvements, I can already say with the utmost certainty that the Greek demand response market is only going to grow. Yes, we do have to protect this market, but it also already makes sense for companies to enter it, just in terms of reducing their energy and production costs. 

Demand response is here to stay. The grid will require more balancing as we increase the share of renewable energy, and as a result more demand response will be needed. Battery storage and demand response cannot cover the grid’s balancing needs alone, we need a joint approach. 

The business case for demand response has already been proven, and it will continue to be financially attractive for companies to enter as the market develops. The grid will expand, and so will the demand response market. 

  • In my opinion, demand-response is something «unknown» largely to the market. Do you think that the stakeholders and the Ministry have to take specific initiatives to change this situation? Do you have something to propose?  

Indeed, there is still a general lack of awareness regarding demand response. We have been working in Greece for the last three years, and we can see that industries still need to be made aware of demand response and the opportunities it can bring to their business. 

The TSO and the Ministry of Energy are actively trying to change this, but they need ramp up their effort to inform people. They have all the required data to run educational campaigns, produce case studies and articles, and show expected revenues for various industries and company sizes. 

So far, we have been the ones taking on the role of educators by creating series of articles and setting up a webinar to educate industries about demand response. Of course, our strength and reach are limited compared to what the TSO and Ministry can do to inform industries about what are balancing markets and demand response, how they can participate and which benefits they can receive. Even though we are experts in the field, after all, we are the number one aggregator in Finland and Sweden, we know that the TSO and Ministry can reach industries faster and better. 

I also advise the TSO and Ministry on promoting demand response in the right forums. In 2023, we were at the Power and Gas Supply Forum organised by Energy Press where we presented balancing services. Commercial and industrial companies with the right kind of assets for demand response attend this kind of forums, so they represent the perfect opportunity for the TSO to present the demand response market that they opened. 

Manos Manousakis (IPTO): Τime to open debate on the creation of a pan-European HVDC interconnection network

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Key speaking points of the Chairman and CEO of Greek power grid operator IPTO at the ENTSO-E event on the Offshore Network Development Plan in Brussels

24/1/2024

“We need a pan-European network of high-voltage direct current (HVDC) electrical interconnections to seamlessly integrate substantial volumes of renewable energy into our power systems. This is essential for harnessing the abundant wind potential in Europe’s sea basins. We need to begin this discussion now if we want to achieve our 2050 climate targets and attain net-zero emissions”. This was stated by the Chairman and CEO of IPTO (Independent Power Transmission Operator) Manos Manousakis during a special event organized by the European Network of Transmission System Operators (ENTSO-E) to unveil the Offshore Network Development Plan, on January 23 in Brussels. High level speakers at the event included Energy Commissioner Kadri Simson and Tinne van der Straeten, the Minister of Energy of Belgium, the country holding the rotating EU Presidency for this semester.

“The time has come for vertical and horizontal electricity transmission corridors to take center stage in the public debate as they are a prerequisite for greening the energy mix, enhancing energy independence and improving the reliability of Europe’s electricity supply,” said Mr. Manousakis, noting that HVDC technology is essential due to its significant technical advantages, ensuring consistent power, voltage, and frequency, while enhancing grid stability and efficiency of the grid.

“In order to fully exploit the huge wind potential of Greece, the South of France, the North Sea, we need this infrastructure. And we need Transmission System Operators to communicate to governments the necessity of cooperation at European level to implement this infrastructure. It is time to plan the projects of the electricity corridors and the necessary interconnections between offshore wind farms in the framework of a holistic approach, considering their viability and cost-benefit ratio from a European perspective as Projects of Common European Interest, rather than bilateral projects between two states. We need to create solutions that support this policy” he said.  “Just as in Greece it is necessary to have vertical energy transmission axes from north to south, the same is required in Europe.” He cited as an example the Green Aegean Interconnector project to transfer the surplus wind potential of the Aegean Sea to the industrial centres of Central Europe.

The National Energy and Climate Plan of Greece foresees production capacity from offshore wind at 2 GW by the end of the decade and 17.3 GW by 2050. “However, our technical wind potential is much greater, and we can increase our ambition if we work together. That is why we need an integrated strategy that provides clear guidelines and appropriate tools for the planning and implementation of Europe’s electricity corridors,” concluded  IPTO’s Chairman.

PPC developing into a southeast European force

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Greek power utility PPC is establishing itself as a leading player in southeast Europe and the Balkans, an energy market offering the potential of roughly 40 million consumers, its top-ranked officials have told a Capital Markets Day event in London.

PPC’s leadership presented the energy group’s ambitious business plan, a nine billion-euro investment package, at the London event, staged yesterday, as a strategy through which the company will strive to capture a substantial share of the Balkan market.

The business plan includes development, between 2024 and 2026, of an 8.9-GW renewable energy portfolio, one of southeast Europe’s biggest, as well as an upgrading 381,000 kilometers of grid networks in Greece and Romania.

PPC’s business plan promises to place the company in a market quadruple the size of the Greek energy market.

PPC holds a 51 percent stake in Greek distribution network operator DEDDIE/HEDNO and controls the distribution networks of three regions in Romania, including Bucharest, by far the country’s biggest.

Besides greater renewable energy interests, PPC also plans to soon offer a wide range of energy solutions for consumers, including smart-home products, home advisory services, and insurance packages, all of which will be available both in Greece, through the company’s fully-owned Kotsovolos electrical and electronics retail chain, as well as in neighboring markets through PPC’s associates.

Since its leadership change in the summer of 2019, when CEO Giorgos Stassis and his administrative team took charge, PPC has progressed from the brink of financial collapse to stability and growth, and is now in a commanding position in the Balkans. Analysts have not ruled out an upward revision of targets as a result of PPC’s potential.

PPC overachieved on its EBITDA target for 2023, which ended at 1.5 billion euros, well above a 1.1 billion-euro goal set in a 2020 business plan. This has led a growing number of analysts to believe that a 2.3 billion-euro EBITDA target set for 2026 could be achieved sooner.

PPC’s planned RES growth, to 8.9 GW by 2026, or 68 percent of the energy group’s production capacity, promises to secure greatly improved lending terms for the company, once one of Europe’s worst polluters.

PPC plans to shut down all of its existing lignite-fired power plants, totaling 1.5 GW, by 2026, which will slash the company’s CO2 emissions from 23.1 million tons in 2019 to 5.9 million tons in 2026. The energy group plans to continue operating its forthcoming Ptolemaida V power station for back-up services. It will initially operate as a low-emitting lignite-fired power station before eventually converting to natural gas.

Apollo RES program, offering tariffs for 1.1 GW, now closer

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The energy ministry has prepared a legislative revision needed to launch Apollo, a 20-year RES support program envisaged to offer solar-energy output to low-income households, local government organizations, as well as public drainage and municipal water supply and sewerage companies, deputy energy minister Alexandra Sdoukou has announced.

The energy ministry has already begun work on shaping the consumption profiles and energy needs of prospective beneficiaries in order to dimension required RES units needed for the support program, the deputy minister noted.

The program’s objective is to cover, with renewable energy, 90 percent of the energy needs of low-income households with renewable energy, and 50 percent of the energy needs of local government organizations, public drainage and municipal water supply and sewerage companies.

According to an early estimate, an overall RES quantity of 1.1 GW will be needed to achieve the Apollo support program’s objective.

Besides its significant social-support aspect, the Apollo program also promises to propel a considerable number of RES projects still under development. By securing remuneration, these pending projects will have cleared a crucial final hurdle needed for their commercial launch.

The program also promises to enhance grid-capacity preservation through increased energy storage.

Participating RES projects will qualify for the Apollo program through thirteen RES auctions, one for each of the country’s thirteen administrative regions.

Distribution network capacity for net metering over 3 GW

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The energy ministry is preparing a legislative revision to increase electrical grid space for self-consumption by households, businesses and farmers.

The revision promises to add to an initiative already undertaken by the ministry that commits 10 MW to each substation of the distribution network for net-metering needs.

It resulted in the reservation of approximately 2.5 GW for self-consumption needs throughout the country’s grid, but the ministry’s upcoming revision is expected to increase this capacity to over 3 GW.

The capacity boost will facilitate the installation of new net-metering and virtual net-metering systems as well as roof-mounted PVs.

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

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

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

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

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

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

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

Grid capacity-boost plan a catalyst for RES investment

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The government’s leadership has approved the fundamentals of a package of measures proposed by the energy ministry to boost the electrical grid’s capacity and facilitate connection terms for new RES projects.

This development, to offer incentive for further investment in renewables, paves the way for the ratification of interventions decided on by the energy ministry.

These measures will prevent a disruption of connect terms granted by the country’s operators for new RES projects.

The measures, expected to be submitted to Parliament imminently, possibly by the end of the month, will ensure that further capacity will become available in a few months’ time so that projects that are either already operating or have secured connection terms reflect the country’s RES-penetration goals for 2030.

These targets stand as a key priority for the energy ministry as a boost in renewable energy sources promises to benefit consumers by lowering wholesale electricity prices and subsequently decreasing retail electricity prices.