RES auctions

Energy multi-bill submitted to Parliament, no major changes

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An energy ministry multi-bill submitted to Parliament yesterday includes a model for the country’s next wave of RES auctions that offers renewable-energy producers operating support based on incentives for electrical-grid capacity savings.

RES projects currently being developed and already holding connection terms will be offered premiums as incentives encouraging their respective investors to accept greater grid-injection restrictions, or to equip their projects with batteries.

Other multi-bill details include terms for an SPV to be established by EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, for offshore wind farms; floating PV provisions; as well as revised action on electricity theft and the universal electricity supply service provided to black-listed consumers no longer accepted by electricity suppliers.

No major changes have been made to the multi-bill’s content following consultation and the procedure’s numerous comments.

Special parliamentary committees will begin discussing the multi-bill’s details tomorrow. The energy ministry aims to have it ratified by the middle of next week.

Brussels’ approval sought for revised RES auction framework

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The energy ministry aims to secure the European Commission’s approval of a new RES auction framework it is preparing by revising an existing plan that would result in new RES projects becoming eligible for operating support if subject to greater grid-injection restrictions and/or possessing behind-the-meter batteries.

Authorities see the next wave of RES auctions as a means of creating more electrical space for RES investments by requiring projects with connection terms to incorporate storage units.

According to early estimates, some 2 GW in RES facilities with batteries behind the meter are expected to qualify for operational support through a new wave of RES auctions.

A project management team assembled by the energy ministry will propose an optimal size for this portfolio of RES units with storage systems to be deemed eligible for state support, based on the maximization of benefits to the system, taking into account the economic viability of investments involved.

The energy ministry’s intention is to ensure clarity for investors on RES units and batteries, as was stressed by deputy energy minister Alexandra Sdoukou at the recent Power & Gas Forum in Athens.

Battery investment support changes aim for 1,700-MW sum

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The energy ministry is considering yet another revision to its investment support plan for standalone batteries that would reduce support offered for batteries with two-hour durations to 50,000 euros per MWh and maintain support offered for batteries with four-hour durations at 100,000 euros per MWh, the objective being to ensure that batteries with a total capacity of 1,700 MW end up receiving investment support, energypress sources have informed.

An additional battery capacity of between 400 and 500 MW is expected to become available for investment support as a result of the revisions.

The ministry is planning a forthcoming RES auction, next month, to offer investment support for two-hour standalone batteries representing a total capacity of 175 MW.

It will be followed by an auction exclusively supporting four-hour batteries, planned to be installed at some of the country’s former lignite-dependent areas, and, further ahead, an additional session auctioning off any remaining capacity.

A preceding auction, earlier this year, had offered RES projects energy-storage investment support of 200,000 euros per MW, now being reduced to widen the support program’s coverage.

Standalone battery interest surges to 12 GW, data shows

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

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

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

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

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

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

 

RES auction for PVs with batteries in March

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An inaugural RES auction offering 200 MW for photovoltaics with batteries, scheduled to take place March, will require successful bidders to accept greater grid-injection limits.

The starting price for this auction, still unknown, will be set at a higher level than usual as the cost of incorporating batteries to photovoltaics will be factored in.

It will serve as a pilot procedure that will help shape new auctions to be established by the energy ministry for RES installations.

Current RES auction terms and conditions are expected to soon undergo major changes, which, as a result, will include limiting participation to bidders committing to electrify their projects by specific dates.

The energy ministry plans to announced the March auction in February. Besides its starting price, to be set by a special committee established by the ministry to oversee matters concerning RES penetration, other auction details that remain pending include battery-type and battery-duration standards.

It is already considered certain that investors behind older projects possessing connection terms will need to commit to accepting higher grid-injection restrictions than the current 28 percent level, set in 2022. The aforementioned committee will also be setting these new rates, possibly at levels of between 40 and 50 percent.

RAAEY announces first RES auction for installations in EEA

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RΑΑΕΥ, the Regulatory Authority for Waste, Energy and Water, has announced a first RES auction offering operating support to new solar and wind energy projects planned for installation in Bulgaria and Italy.

The cross-border auction has been made possible by a new local law that facilitates auctions for project development in the European Economic Area, an international agreement enabling the extension of the EU’s single market to member states of the European Free Trade Association.

Qualifying projects will have to sell their RES output in Greece’s day-ahead market on a daily basis daily, through physical delivery, meaning they will need to have secured interconnection rights.

A maximum capacity of 200 MW will be offered through the inaugural auction, whose bidding process was triggered by its announcement in the government gazette, and completed on March 11, 2024.

RAAEY will complete its appraisal of bids by April 18 and publish a list of qualifying and disqualified project bids, before releasing a finalized list of successful bids on April 25. Unsuccessful bidders will be given the opportunity to appeal during the intermediate one-week period.

Contrary to terms concerning mixed RES auctions for projects to be installed in Greece, no minimum percentage of successful projects per technology will be required.

In order to participate, prospective projects will need to possess valid connection contracts and/or finalized connection offers.

At least three projects linked with as many investors will need to participate for the auction to go ahead, while participants will not be able to compete for over 35 percent of the total capacity on offer.

Fixed RES tariffs for bigger grid input limitations, batteries

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The energy ministry plans to offer fixed tariffs, at RES auctions as of 2024, as an incentive to investors behind RES projects accepting increased grid injection limitations or an obligation to incorporate batteries, measures that would save grid capacity.

Deputy energy minister Alexandra Sdoukou announced this plan at a three-day energy conference, “Energy Security and Green Growth”, organized by the energy ministry.

A grid injection limitation of 50 percent of RES output is expected to be imposed on RES projects as a prerequisite for fixed tariffs. It remains unclear if the auctions offering these fixed tariffs will be technology-specific or mixed. According to energypress sources, the new auctions could only concern photovoltaics. Also the ministry is believed to be considering to offer a total capacity of 2 GW for fixed tariffs, though this, too, remains unfinalized.

Existing legislation covering RES auctions will need to be amended to facilitate the ministry’s fixed-tariffs plan.

 

 

 

First support auction for PVs with batteries by February

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The energy ministry is working to complete plans by the end of this year for a first auction, no later than February, 2024, offering investment and operational support to mature-level solar energy projects possessing connection terms and planned to incorporate batteries, energypress sources have informed.

According to the sources, the upcoming first auction will offer investors support for a total capacity of between 200 and 300 MW, as part of the ministry’s wider plan to aid a 2-GW portfolio of solar energy farms with batteries behind the meter.

The ministry’s objective is to preserve as much grid capacity as possible. The addition of batteries to solar energy projects, even if small-sized with capacity to store just one hour’s worth of energy, offers a 50 percent reduction in grid capacity occupied by projects.

A considerable number of projects are expected to take part in the series of support auctions, power grid operator IPTO’s development program data for 2024 to 2033, published last June, has indicated.

According to this data, 10,590 MW of photovoltaics have connection terms for the transmission system and 1,141 MW for the distribution network.

As previously reported by energypress, RES projects taking part in these auctions will face strict electrification deadlines, the objective being to limit participation to truly feasible RES projects with batteries.

As a result, IPTO will know when grid capacity will be released by photovoltaics and be in a position to offer investors precise information on connection-term delivery.

New RES auctions for battery-equipped units in the making

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A series of RES auctions starting in early 2024 for battery-equipped renewable energy projects of around 2 GW, which will be open to investors who have already secured connection terms, is a key feature of a plan being shaped by energy minister Thodoris Skylakakis to deal with grid insufficiencies.

A decision on the matter seems to have been taken, as suggested by the minister during an interview yesterday at the ongoing two-day Renewable & Storage Forum conference in Athens. He did not elaborate as a number of technical issues remain pending.

Strict conditions will be set for swift electrification of these new RES projects. It is believed that RES projects securing tariffs at the first auction will need to be operating by December 31, 2024. All ensuing auctions will also commit bidders to swift launches of new RES projects.

This zero-tolerance approach comes as a complete contrast to the progress of 3 GW in RES projects that had secured connection terms back in 2020 but have yet to be launched, as was pointed out at the conference by power grid operator IPTO’s chief executive Manos Manousakis, who called for stricter regulations.

 

HEDNO to legally challenge RAAEY fine imposed for PV auction issues

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Distribution network operator DEDDIE/HEDNO plans to take legal action challenging a fine of one million euros imposed by RAAEY, the Regulatory Authority for Waste, Energy and Water, for problems concerning how two auctions offering connection terms for solar power units in the Peloponnese and Crete were conducted, the operator’s top official has noted in a statement addressed to parliament.

The operator does not accept the RAAEY decision and will challenge it in the legally prescribed manner, stated Anastasios Manos, chief executive officer of DEDDIE/HEDNO, in response to a question posed by the main opposition leftist Syriza party.

DEDDIE/HEDNO also believes the RAAEY fine does not annul the auctions and intends to continue and complete its processing of applications for the Peloponnese and Crete networks, both saturated, the CEO noted.

The operator considers that it has taken all possible measures to ensure the auction’s platform functions properly, stressing it has fully complied with a relevant circular issued.

 

Incentives, through auction, planned for PVs with batteries

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The energy ministry is considering to offer incentives to PV facility investors for behind-the-meter battery installations as a means of freeing up grid capacity, a solution that would enable power grid operator IPTO to resume offering new connection terms, currently on hold as a result of grid-capacity restraints.

According to the ministry’s plan, incentives would be offered in the form of tariffs secured by PV producers through auction.

Essentially, these auctions would only be open to PV projects possessing finalized grid connection term offers and equipped with batteries. The auctions would offer higher tariffs taking into account the increase in investment cost.

At present, RES projects under development and already possessing finalized grid-connection term offers represent a total capacity of 15 GW. If a portion of these projects are equipped with batteries behind the meter, then a significant amount of grid capacity could be saved to facilitate new green-energy investments.

 

 

 

RAAEY deciding on terms of second storage auction

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The board at RAAEY, the Regulatory Authority for Waste, Energy and Water, is expected to meet this week to finalize terms for the country’s second auction for standalone batteries.

RAAEY will announce the finalized terms for the second auction once the energy ministry has issued a ministerial decision.

Though a final decision still needs to be reached on the starting price to be offered at this next auction, a level of just over 100,000 euros per MW, for a year, well below the starting price of 200,000 euros per MW, for a year, offered to successful bidders in the first auction, staged in August, appears likeliest. Bidding competition at the first auction was intense.

Questions still remain about the total storage capacity to be offered to investors at the next session. This offer could depend on the extent of the remuneration cut, even though some RAAEY sources have noted the capacity to be offered could well remain at about 300 MW, as originally planned.

The energy ministry is aiming for approximately 1,700 MW in installed standalone batteries by 2027.

A total of 12 RES projects with storage units, for which successful bids were submitted in the first auction, secured tariffs averaging 115,000 euros per MW, for a year, or 57 percent below the starting price.

 

Operator HEDNO fined €1m by RAAEY for PV auction issues

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Distribution network operator DEDDIE/HEDNO has been handed a fine of 1 million euros by RAAEY, the Regulatory Authority for Waste, Energy and Water, over irregularities at PV auctions offering connection terms for the networks of the Peloponnese and Crete, which, the authority noted, were caused by the operator’s failure to ensure bidders conditions of equality and transparency during the auction, held online between October 21 and 25 last year.

The operator has the right to appeal within a 30-day period of publication or notification of the decision.

The energy ministry now faces the task of needing to manage this potentially contentious issue, as investors are believed to be preparing to take legal action against the operator.

PV auction tariffs may be limited to units with batteries

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The energy ministry, which has identified an urgent need for battery integration into PV projects, aims to incentivize such a combination by restricting PV tariffs offered at RES auctions for investors developing solar energy units with storage units.

The ministry fears prospective solar energy growth would have an unfavorable wider impact on the grid if PV projects develop at a faster rate than battery usage.

Solar energy farms are seen, by the ministry, as a key problem as they operate in coordinated fashion, producing energy at the same time of day, regardless of where they are located around the country, whereas wind farms, offer inconsistent output, day and night, which varies depending on their location.

Installed RES capacity growing at a faster rate than electricity storage would not only shrink available grid capacity but will also exacerbate RES cutbacks, made to prevent grid overloading, the ministry has noted.

Small-scale PV tariffs facing RES auction-induced reduction

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Small-scale PVs with capacities of up to 500 KW and energy-community PVs of up to 1 MW, both categories still eligible for non-auction tariffs, are expected to face significant tariff reductions as a result of a side effect to stem from an upcoming RES auction.

The auction is expected to be announced by RAAEY, the Regulatory Authority for Energy, Environment, and Water within September and staged a month later.

The reduction in administratively-set tariffs for small-scale PVs expected to be prompted by the upcoming RES auction can be attributed to the current formula applied for calculating these non-auction tariffs.

This formula is expected to cause a significant reduction in tariffs concerning RES producers who are not obliged to participate in competitive procedures.

SPEF, the Hellenic Association of Photovoltaic Energy Producers, is expected to inform the energy ministry on the matter in the coming days. The association is expected to stress the need for a legislative revision facilitating a revision to the existing formula concerning administratively-set tariffs, which could prevent their anticipated decline.

Non-auction tariffs for small-scale PVs are currently at 65.74 euros per MWh, a price level valid until August 31, 2024, following an extension granted by the energy ministry last spring.

However, under the current formula, October’s RES auction will significantly reduce this non-auction tariff level.

 

RAAEY to avoid clear-cut view on small PV RES auction issues

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RAAEY, the Regulatory Authority for Waste, Energy and Water, is not expected to deliver a clear-cut decision on whether the results of two RES auctions for small-scale PVs of up to 400 KW in the Peloponnese and Crete should be confirmed or annulled, but, instead, will offer a report detailing how these auctions proceeded and what kind of issues arose.

Decisions will then need to be taken at a political level as to whether the results of these RES auctions remain valid.

There have been indications of some issues concerning distribution network operator DEDDIE/HEDNO’s online platform used for these auctions, but, overall, the platform, to which applications were submitted, ran smoothly, according to the authority.

For example, although bidders from abroad were not blocked from participating in these RES auctions, this does not appear to have affected the auctions as, in practice, no bids were lodged from outside Greece.

Also, evidence suggests that robotic software for automated bidding was used. However, any investors who may have employed such a method did not gain an advantage over rival bidders as very few applications appear to have been successfully submitted in such fashion.

It is also important to note that data concerning the platform’s operation for the two auctions is no longer available as it was deleted by the operator three months after the two RES auctions were staged, which makes it impossible to ascertain, with precision, how they fared.

 

RES auction to offer 1,662 MW, leftover capacity expected

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The next RES auction for large-scale wind and solar energy projects, scheduled to take place in September, will offer a mammoth capacity of 1,662 MW, consisting of 1,200 MW planned for this auction plus 462 MW left over from the previous procedure last September.

A total of 21 projects had secured an overall capacity of 538 MW from 1,000 MW offered last September.

If that session’s competition rules are maintained for the forthcoming session, then auction participants will need to represent a total of 2,992 MW, or 80 percent over the 1,662-MW total, for the full amount to be made available.

Market officials highly doubt that the participation level in September will be that high. If so, a RES auction capacity will be left over for a second year running.

This prospect has been largely attributed to the fact that investors behind a big portion of large-scale RES projects are preparing to establish PPAs.

Subdued starting prices set for September’s RES auction, a mixed session facilitating wind and solar energy projects, have been cited as another key factor likely to limit the auction’s level of participation as higher equipment and borrowing costs have not been taken into account, market officials added.

The starting price for solar energy projects has been set at 54 euros per MWh, while bidding for wind farm projects will start at 63 euros per MWh, the same levels offered at last September’s auction.

RAAEY, the Regulatory Authority for Waste, Energy and Water, is expected to officially announce September’s RES auction in August.

 

 

Next mixed RES auction offering Europe’s lowest starting prices

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RES auction starting prices in Greece have, contrary to other European markets, remained unchanged at levels set earlier this year ahead of a  session in September and, as a result, are currently the continent’s lowest.

Several months ago, local authorities set RES auction starting prices of 54 euros per MWh for solar energy and 63 euros per MWh for wind energy.

The energy crisis and its escalated wholesale electricity prices prompted – in more recent times – countries such as Germany to offer investors generous increases in RES auction starting prices.

These rises were offered in parts of the continent after European RES auctions held in 2022 failed to attract the anticipated level of interest from investors, leaving significant amounts of unwanted capacities, including in Greece.

Berlin raised its RES auction starting price for solar energy to 73 euros per MWh from 60 euros per MWh for a session in March. The initiative drew a satisfactory number of participants.

Serbia, preparing for its inaugural RES auction, is offering a starting price of 105 euros per MWh for wind energy and 90 euros per MWh for solar energy to attract investors.

Italy, for its most recent RES auction, in May, set a starting price of 65 euros per MWh for solar energy, the same level set by Spain for its most recent RES auction.

The UK recently offered a starting price of 54.8 euros per MWh for solar energy and 61.9 euros per MWh for wind energy.

Returning to Greece, it remains to be seen if the de-escalation in electricity prices of late will prompt investors to choose RES auctions for their project tariffs or instead opt for other solutions such as PPAs.

 

Next mixed RES auction planned for September

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The country’s next mixed RES auction is planned to be staged in September, according to a latest ministerial decision. Its official announcement, by RAAEY, the Regulatory Authority for Waste, Energy and Water, is expected to be made in mid-August.

The intention to stage the next mixed RES auction in September is not coincidental as, judging by latest indications, the authority will be focused on staging an inaugural auction for energy storage units over the preceding two months.

RAAEY expects to announce the forthcoming auction for standalone batteries a little after mid-June. Bids by participants are expected to face an early-July deadline.

September’s RES auction is planned to be staged as three sections, one each for solar and wind energy facilities, plus a combined section.

Starting prices for the mixed RES auction have been set at 54 euros per MWh for solar energy facilities and 63 euros per MWh for wind energy units, while a maximum capacity of 1,200 MW will be offered, including approximately 460 MW that was left over from a mixed RES auction in September, 2022.

The RES auction for solar energy units will be open to small-scale facilities with capacities of up to 1 MW. Investors behind these projects will bid for tariffs representing a total capacity of 200 MW at a starting price of 70 euros per MWh.

The RES auction for wind energy units will be open to small-scale units of up to 6 MW. A total of 100 MW will be offered at a starting price of 83 euros per MWh.

Standalone batteries auction sooner; RRF time constraints

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An inaugural auction offering capacities for standalone batteries will take place by early July, at the very latest, leaving investors with about half the time they had anticipated to prepare.

The first auction, according to a ministerial decision published in the government gazette, is scheduled to take place between three to four weeks after RAAEY, the Regulatory Authority for Waste, Energy and Water, officially announces the session, far sooner than a period of six to eight weeks originally stated in a draft of the plan. RAAEY’s announcement is expected early in June.

This halved preparatory period for participants resulted from Recovery and Resilience Facility (RRF) time constraints. This facility will offer successful bidders a sum of 200 million euros in subsidy support for their standalone battery installations.

According to the RRF deadlines, the first wave of RES projects with standalone batteries ought to have secured their tariffs by the end of June, which puts the overall procedure slightly behind schedule with no time to waste.

Two mixed, two technology-specific RES auctions this year

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The energy ministry is laying the groundwork to stage four RES auctions during the remainder of 2023, offering a total capacity of 1,600 MW. Two of these sessions will be mixed RES auctions while the other two will be technology-specific.

The ministry is preparing to sign a ministerial decision that will enable these auctions to be staged. They will be open to both small and large-scale solar and wind energy facilities.

The same ministerial decision will also launch a pilot auction for green-energy facilities combining batteries into their operations. A total of 200 MW will be offered to investors through this auction.

All the aforementioned competitive procedures are foreseen in a new support scheme that was given the green light by the European Commission in late November, 2021. One mixed RES auction has already been held within this plan’s framework.

Two mixed RES auctions offering a total capacity of 1,200 MW will be staged for large-scale wind energy facilities with capacities exceeding 6 MW and solar energy parks with capacities over 1 MW. According to sources, auction starting prices will be set at 63 euros per MWh for wind energy units and 54 euros per MWh for solar farms.

The imminent ministerial decision will also enable the staging of two technology-specific RES auctions in 2023, both for small-scale projects. One will concern solar energy units with capacities of less than 1 MW and offer a total of 100 MW at a starting price of 70 euros per MWh.

The second of these two technology-specific RES auctions will concern wind energy facilities with capacities of less than 6 MW, at a starting price of 83 euros per MWh.

 

Starting price for next RES auction ahead of May 21 vote

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The energy ministry is pushing to deliver, ahead of the May 21 legislative election, a ministerial decision setting a starting price for the next RES auction.

If issued prior to the legislative election, the ministerial decision will pave the way for RAAEY, the Regulatory Authority for Waste, Energy and Water, to stage a second auction offering remuneration to major-scale green energy power stations regardless of the outcome of the upcoming election.

The government is now taking initiatives to settle a variety of energy-sector matters prior to the May 21 election as a second round of voting, if needed, will be held between one and one-and-half months later, stagnating concerns during the inter-election period.

The energy ministry recently announced a two-month package of electricity subsidies for consumers covering May and June, instead of continuing its support on a month-by-month basis.

The second auction offering remuneration to major-scale green energy power stations will, once again, be open to investors behind solar energy facilities of over 1 MW and wind energy facilities of more than 6 MW.

The total capacity to be auctioned off is expected to exceed 1 GW. A left-over capacity of approximately 475 MW from the first auction will be made available to investors in the second auction.

 

RES, energy storage auctions most likely after election

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A preparatory period of at least two-and-a-half months is still estimated to be needed for auctions offering tariffs to new RES projects and a first wave of standalone batteries concerning energy storage totaling between 900 and 1,000 MW, the latter to also receive investment support funds worth 200 million euros from the Recovery and Resilience Facility (RRF) if tightening deadlines are met.

Given the hefty time period still required for preparations, the auctions for both new RES projects and energy storage units will most likely not make it for before the country’s next national election, to take place in spring, some time between April and May.

As for the RES auctions, the next session will concern a second round catering to large-scale solar and wind energy units expected to represent more than 1 GW. In addition, a RES auction for small PVs with capacities of between 10 KW and 1 MW is still pending.

According to RRF terms, standalone battery projects to qualify for investment support will need to be completed by the end of 2025.

Big auction capacity boost planned for RES projects with energy storage

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The energy ministry plans to greatly boost capacities offered at auctions for RES projects with energy storage systems from 200 MW to 1 GW as part of its effort to strengthen the role played by RES units with behind-the-meter storage in mitigating local grid-congestion problems.

This revision will require approval from the Directorate-General for Competition. In preparation, the energy ministry is already engaged in related talks with the Brussels authority.

These talks are believed to have progressed but work still needs to be done before the Greek side can send a formal request to Brussels.

The energy ministry is confident that renewable energy systems with storage units can significantly contribute to optimal use of available electrical capacity and, as a result, increase green energy’s share of the energy mix.

Island hybrid RES, energy storage project auctions in first quarter of ’23

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The energy ministry is striving to stage two auctions, one for hybrid RES facilities on non-interconnected islands, and another for a first wave of energy storage units to be linked to the grid, in the first quarter of 2023.

The energy ministry plans to soon decide on a cluster of islands to be included in the auction for hybrid RES facilities on non-interconnected islands.

The ministry intends to take into account bidding levels submitted for an existing hybrid system on the Greek island Astypalaia, the westernmost of the Dodecanese islands, when it decides on the starting price for the auction concerning hybrid RES facilities on non-interconnected islands.

As for the auction concerning energy storage units supporting the grid, the energy ministry is striving for a swift process as project development deadlines set by the Recovery and Resilience Facility (RRF), to fund these auctions, are extremely tight.

According to the RRF deadlines, contracts for the winning bidders need to be awarded before the end of 2023, and the storage facilities must be completed by the end of 2025.

 

Wind farms not earning windfall profits, association notes

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

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

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

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

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

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

 

 

 

 

Investor participation limited for first RES auction in 1½ yrs

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Participation at an upcoming RES auction, the country’s first in one-and-a-half years, will be limited, despite the growing interest in green energy investments, a provisional list of auction participants just released by RAE, the Regulatory Authority for Energy, has shown.

RES investors behind 34 projects with a total capacity of approximately 944.5 MW will seek to secure tariffs at the auction, scheduled for September 6. One application was rejected after failing to meet a guarantee payment deadline.

Given the auction’s rules, RES projects representing a total of 525 MW will secure tariffs at this September auction.

Its participation level is down approximately 50 percent compared to the previous RES auction, held in May, 2021, a session that was dominated by solar energy units.

Sector officials have named low starting bid levels set for solar and wind energy units as one of the factors behind the upcoming auction’s limited turnout, noting these levels do not reflect increased project costs, driven considerably higher by steep equipment price increases.

A starting bid level of 54 euros per MWh has been set for solar energy units, while the starting bid level for wind energy units is 63 euros per MWh. PV investors underlined investments cannot be sustainable at such levels.

 

Next RES auction in early September, for 1,000 MW

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The next RES auction, to feature a new remuneration framework for investors, is set to be held early September, following the signing of a related ministerial decision, which paves the way for the session’s official announcement by RAE, the Regulatory Authority for Energy.

The authority will officially announce the auction imminently, giving participants time to prepare for the session from early July onwards, according to energypress sources.

The signing of the ministerial decision, one of two signed, enabling the procedure to go ahead, was announced yesterday by the energy ministry’s secretary-general Alexandra Sdoukou during a speech at a conference, Green Deal Greece 2022.

Sdoukou reiterated that the RES auction will be a mixed session for solar and wind energy facilities and will offer tariffs for projects with a total capacity of 1,000 MW.

Bidders will be able to submit multiple bids, the formula also used for the previous auction, the energy ministry official noted.

Ministry aiming for new RES auction before August

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The energy ministry is striving to stage a first RES auction featuring a new support framework before August, the most likely period being late July, and, as a result, is currently preparing a second ministerial decision needed for the procedure to be staged, energypress sources have informed.

This second ministerial decision will include details on total capacity to be auctioned annually, number of auctions per year, their scheduling, starting prices, minimal levels of bidding competition required, as well as the level of maturity projects must have achieved to be considered eligible for auction participation.

RAE, the Regulatory Authority for Energy, has been informed of all the related details and is working on the first auction’s official announcement. As a result, Once the ministerial decision is published, RAE should be ready to immediately announce the first RES auction.

The inaugural auction will offer RES investors behind new projects tariffs for 1,000 MW.

The old bidding system will continue to apply, meaning bidders will not face restrictions on the number of bids they can submit for tariffs, energypress sources informed. However, thoughts for a one-bid system will be reexamined at a latter stage, the sources added.

Energy minister Kostas Skrekas has noted the ministry intends to stage an additional RES auction, under the new support framework, in 2022, also for a total capacity of 1,000 MW. However, it remains unclear if there will be enough time for the extra session before the year is out.

 

 

Unlimited bidding system to also apply for next RES auction

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A continual bidding system offering RES auction participants an unlimited number of bids, used for previous sessions, will continue to apply for the next auction, the first to be held under a revised support framework for the sector’s wind and solar energy projects.

Prior to this decision, energy ministry officials had considered limiting bids, for project tariffs, to one per session for investors, from the next RES auction onwards. This one-off bidding system will now be reexamined at a latter date.

Other changes will be introduced as of the next RES auction, including different starting prices for wind and solar energy projects as installation costs for the two RES technologies nowadays differ.

Energy minister Kostas Skrekas recently informed that tariffs for a total capacity of 1,000 MW would be offered at the next RES auction. The ministry, he added, intends to stage one further RES auction within 2022, also for 1,000 MW.