RES auctions

PV market activity flattened by non RES-auction solar park restrictions

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Market activity concerning small-scale PV facilities up to 500 KW has flattened as a result of ambiguous terms, especially for solar energy parks not linked with RES auctions, included in a recent energy ministry bill.

The energy ministry revised a formula determining the reference price for PV facilities of up to 500 KW not participating in RES auctions. It also imposed a limit that does not permit individuals to maintain interests, directly or indirectly, in more than two 500-KW solar energy parks not linked to RES auctions.

These measures have mainly affected small and medium-sized energy sector professionals who are either already operating solar energy parks or have submitted applications to DEDDIE/HEDNO, the Hellenic Electricity Distribution Network Operator, for connection term offers.

SPEF, the Hellenic Association of Photovoltaic Energy Producers, has intervened with proposals aiming to support small-scale producers and revitalize the sector.

 

 

 

 

 

RES tariff changes will not affect current investments, ministry assures

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New RES sector terms, including tariff revisions, to be introduced by the energy ministry through a ministerial decision expected next month, will not affect investment plans currently in progress, ministry sources have ascertained.

RAE, the Regulatory Authority for Energy, has forwarded a series of proposals to the energy ministry, expected to serve as a basis for the prospective RES support framework revisions.

These concern new tariff recommendations for wind energy facilities of less than 3 MW (6 MW for energy communities); wind energy projects of over 3 MW backed by public and private sector partnership agreements signed in 2016 but not expected to be operating by the end of 2020; and PV investments of up to 100 KW.

Among the RAE proposals is a recommendation for a tariff reduction to 79.77 euros per MWh from 98 euros per MWh for wind energy facilities of up to 3 MW (6 MW for energy communities).

In addition, the energy authority recommends a universal starting price of 71.91 euros per MWh for all solar energy RES auctions between 500 MW to 20 MW.

The energy authority’s list of recommendations, the first of more to come, focuses on the most pressing of matters, the objective being to offer investors market condition clarity.

 

RES auction terms were not breached, affected Spes Solar protests

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The Spes Solaris renewable energy company, a member of the Panagakos corporate group, has submitted a detailed memorandum to top government bodies and the General Secteratiat for Strategic and Private Investments explaining the company’s views following the postponement of a RES auction for large-scale PV projects on December 10 by RAE, the Regulatory Authority for Energy, over suspicions the energy company was manipulating proceedings.

RES projects in the Spes Solaris portfolio qualified for fast-track procedures but have faced lengthy delays, prompting frustration at the company.

In its memorandum, whose recipients include the economy and energy ministries, Spes Solaris directly challenges RAE’s decision to postpone the auction and notes it contravenes the auction terms as well as clear instructions offered by the energy authority at a conference last year, on May 10, staged ELETEAN, the Greek Wind Energy Association.

Spes Solaris forged a strategic plan seven years ago to develop 45 projects with a total capacity of 275 MW but they have yet to be developed.

 

Solar, PV energy players to compete at inaugural mixed RES auction

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The country’s first mixed RES auction, to place the sector’s main players, the wind and solar energy investors, in the same bidding arena and intensify competition, as is the case abroad, is expected to take place in mid-April.

Wind and solar energy technologies each have their respective advantages. PV systems are clearly lower-cost systems but offer smaller capacity and renewable energy output. On the contrary, wind energy systems promise greater economies of scale, making them more competitive, but cost considerably more to manufacture.

PV system costs have risen by approximately 10 percent in recent times as a result of a rise in the price of silicon, a solar cell manufacturing component. The development is expected to further intensify the bidding competition at Greece’s forthcoming mixed auction.

Elsewhere, wind energy players were the most successful bidders of a recent mixed RES auction in Spain, whereas solar investors dominated a session in Germany. Overall, results around Europe have shown that solar energy players hold an advantage over wind energy bidders at mixed RES auctions.

Wind energy parks in central Europe and Spain are installed in lowland areas, whereas equivalent Greek facilities are set up at higher altitudes, significantly increasing installation costs.

 

RES investment interest rising, foreign players emerging

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RES capacity license applications reached a total of 2,940 MW in December, a record figure, RAE, the Regulatory Authority for Energy, has announced.

Investor interest is high ahead of forthcoming RES auctions, including the first ever joint wind-and-solar energy auction planned for April.

A total of 262 RES project applications were submitted in December, comprising 139 solar energy parks, 106 wind energy parks, 2 biomass units, 6 small-scale hydropower facilities and 2 hybrid stations linked to Terna Energy.

Major foreign players are among the investors who have expressed interest, especially in the solar energy sector. Driven by the country’s favorable climate for solar energy production, foreign players appear to be showing less concern over the county risk factor.

Foreign investors are also looking beyond the RES auctions to prospects offered by the implementation of the target model.

Ministry working on RES support framework changes

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The energy ministry is considering fusing two separate RES auction categories for solar energy producers of up to 1 MW and between 1 and 20 MW ahead of the year’s first auction to be staged by RAE, the Regulatory Authority for Energy.

This revision, one of a series being considered for the country’s RES support framework, is intended to resolve various issues that troubled Greece’s two previous RES auctions, especially the most recent, whose session for large-scale solar projects needed to be postponed.

Certain revisions are believed to have been finalized while others are being further examined.

Overall, energy ministry officials are aiming for increased energy community investments, rationalization of tariff levels, as well as the adoption of a formula to boost the investment activity of small-to-medium scale investors, especially in the solar energy sub-sector, whose RES auctions appear to be dominated by a limited number of major players.

Revisions already finalized include a reduction of an existing 98 euros per MWh tariff for wind energy producers with capacities below 3 MW.

The energy ministry has formed a committee to examine issues concerning RES and high power cogeneration units. It is expected to deliver its findings around March.

Under Greece’s current RES market regulations, solar facilities with capacities of over 500 KW and wind energy facilities of over 3 MW are obligated to participate in RES auctions for their tariffs. All other RES groups are remunerated for their output through fixed tariffs.

Extrajudicial action from Panagakos group for RES auction cancellation

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The Panagakos group, owner of the Spes Solaris renewable energy company, has taken extrajudicial action against RAE, the Regulatory Authority for Energy, following its postponement of the RES auction’s session for large-scale PV projects on December 10.

The energy authority cancelled the session after concluding the company was manipulating proceedings.

In its extrajudicial action, the Panagakos group complains of the defamation suffered by its corporate member and also requests that RAE revoke its decision to cancel the competition.

The corporate group has also sent letters with its claims to the energy ministry, development ministry and other authorities.

In essence, the Panagakos corporate group is making clear its next moves as to whether to file a case against RAE will depend on the terms and conditions to be set for the rescheduled auction, expected in January.

The company wants an end to constant obstacles preventing the development of its investment plan for RES projects with a total capacity of 275 MW, a group official noted.

The Panagakos group had set a strategic plan to develop these projects, 45 in all, seven years ago. They have yet to be developed.

Greece should aim for more ambitious wind energy target, authority notes

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Greece should aim for a more ambitious wind energy objective in its National Energy and Climate Plan for 2030, WindEurope’s Head of Advocacy & Messaging Joël Meggelaars has remarked following favorable results achieved at Greece’s second RES auction for the year, staged a week ago.

Onshore wind secured almost 160 MW of capacity in Greece’s recent second renewables auction for the year. The prices were competitive, coming in within a range of €55–65/MWh.

This price level is lower than in Greece’s first onshore wind auction in July, where onshore wind prices ranged between €68-72/MWh.

“These are impressive results. The average price level is even lower than in the last French and German onshore auctions. The fact that prices have come down is a signal of confidence from investors in the outlook for wind energy in Greece. The high level of competition and the participation of big investors with large wind portfolios in Greece and the wider region has helped to create downward pressure on prices,” Meggelaars noted.

Nine wind projects, all holding environmental and grid connection licenses and located in Greece’s north and central regions, secured capacities at last week’s session.

“These results are a clear sign that wind can deliver affordable electricity to Greek consumers and businesses,” the WindEurope official noted. “Ambition and deployment outlook will help Greece to attract new investments, enjoy further cost reductions and create local economic benefits.”

However, permit costs for wind farms in Greece remain an issue and need to be simplified, Meggelaars stressed.

“The winners in this auction already anticipated these costs as they began developing their projects almost a decade ago. The Greek government should look at simplifying permit procedures and also give more transparency on the length of time needed for environmental assessment, spatial planning and grid connection procedures.”

Lower RES costs offering new growth potential for sector

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Lower RES costs, now comparable to those of conventional energy sources, are crucially important for the sector’s development, energy minister Giorgos Stathakis noted following Monday’s second RES auction for the year, during which investors bid aggressively to lower production tariffs for new project investments.

The minister, who rushed to hail the development ahead of an official announcement by RAE, the Regulatory Authority for Energy, on the session’s price levels, said he felt vindicated by the ministry’s decision to set ambitious energy mix RES targets as part of the national energy and climate plan.

RES company officials also expressed satisfaction as lower prices pave the way for the development of new units, especially wind and solar energy facilities. The validity of an older argument stating consumers are being forced to shoulder costly renewable energy production is now beginning to fade.

A number of factors have contributed to the drop in RES prices, a key reason being the achievement of significant RES technology advancements (next-generation turbines and solar panels), reducing facility installation costs and ensuring higher efficiency.

Also, the development of new wind energy parks at more accessible locations is now more common as high-altitude areas, a priority in the past due to their greater production potential, are gradually running out and, in addition, no longer necessary as a result of the progress in turbine technology.

The stronger prospects of the Greek economy, aiding financing costs, has also helped lower RES prices.

 

 

Lower RES auction prices a vote of confidence for economy

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Lower prices prompted by aggressive bidding at Greece’s second RES auction for the year yesterday, offering capacities to investors for new projects, can be interpreted as a vote of confidence by investors, local and foreign, for the Greek economy and RES sector.

The session’s lower prices, which reached levels of major European markets, also reflect an anticipation of further RES equipment cost reductions and higher facility yields.

The biggest price drop was produced by the auction’s third category, offering capacities for wind energy installations of between 3 and 50 MW, where the lowest price registered was 55 euros per MWh and the highest 65.15 euros per MWh, according to sources.

Prices for this category ranged between 68.18 and 71.93 euros per MWh at the previous RES auction, held in July.

Successful bidders in this category included Terna, Rokas, Portugal’s EDPR, Volterra and Ostria. Representing 14 projects with a total capacity of 281.65 MW, they vied for 160.94 MW. Bidding for the category started at 79.77 euros per MWh.

In the category for small-scale photovoltaic installations of up to one MW, the lowest price was 64 euros per MWh and highest 69 euros per MWh. Bidders representing 180 projects with a total capacity of 102.19 MW contested for 61.95 MW at a starting price of 81.71 euros per MWh.

Prices for this category ranged between 75.87 and 80 euros per MWh at the previous RES auction.

In the session’s other category, offering capacities for larger-scale PV installations of between one and 20 MW at a starting price of 71.9 euros per MWh, bidders representing a large proportion of projects totaling roughly 35 MW secured capacities at prices of approximately 63 euros per MWh, sources informed.

Investors representing 27 projects with a total capacity of 151.32 MW contested for 86.47 MW in this category.

The Solar Cells group acquired capacities for four projects at elevated prices, while PPC Renewables secured satisfactory price levels of just below 70 euros per MWh, sources noted.

Prices for this category ranged between 62.97 and 71 euros per MWh at the previous RES auction.

 

Year’s second RES auction today, various factors to shape bidding

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A second RES auction for the year concerning new projects begins today, offering capacities to investors for three project categories: small-scale photovoltaic installations of up to one MW, larger-scale PV installations measuring between one and 20 MW, and wind energy installations of between 3 and 50 MW.

The first of these three categories has drawn the biggest number of participants, representing a total of 192 projects, compared to 27 in the second category and 14 in the third.

Six percent of first-category applicants were disqualified over their failure to provide all required documents in applications. This serves as a reminder of the difficulties faced by many small-scale PV investors in dealing with the auction’s complex procedures.

Factors expected to help shape bidding prices include a demand-response mechanism surcharge of 3.6 percent imposed on PV investments; considerably lower solar panel prices, now constituting no more than 30 percent of total installation costs; a rumored government plan entailing the introduction of sustainable RES tariff prices to be offered beyond auction procedures for small PV units with capacities up to 500 kW; as well as an energy ministry plan, recently forwarded for public consultation, setting high RES penetration targets for 2030, including a 56 percent share of total electricity consumption by the sector.

An older National Technical University of Athens study, dated back to 2013, had forecast RES penetration at approximately 37 percent of overall electricity consumption by 2025, as well as drops to 20 percent without storage infrastructure and 14 percent without the development of a centralized storage system.

Bureaucratic mix-up seen forcing PV projects to miss next RES auction

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Many small-scale photovoltaic projects (less than 1 MW) whose investors failed to secure capacities at the previous RES auction in June appear set to miss the next session on December 10 as six-month final connection offers granted by DEDDIE/HEDNO, the Hellenic Electricity Distribution Network Operator, a prerequisite for participation, will have expired by next month’s auction.

Consequently, investors behind these projects, many of them at mature stages, will technically not be able to submit applications for participation in the forthcoming auction, despite the fact that related law permits participation in three successive RES auctions.

Given the confusion, the energy ministry should have either taken corrective action with a legislative revision or extended the deadline for RES auction participation applications, but it has done neither. The application deadline expires today and the time remaining for a legislative revision ahead of next month’s RES auction may not be enough. Even so, energy ministry officials have assured the issue will be resolved.

RAE, the Regulatory Authority for Energy overseeing the RES auctions, has told investors the six-month final connection offers granted by DEDDIE/HEDNO will remain valid if investors submit applications for connection agreements prior to the expiry of these offers.

New PV projects to total about 500 MW by 2020, mature projects lacking

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Greece’s new photovoltaic facility installations, in all categories, are expected to reach approximately 500 MW by 2020, sector officials agree.

Though such investment activity is capable of rekindling an otherwise stagnant sector, over the past few years, the projected level of installations remains below the  current needs of the country and its RES sector potential.

A lack of mature RES projects as a consequence of the investment inactivity that has affected the sector over recent years stands as the biggest problem, according to market officials. Complex and time-consuming licensing procedures are another issue.

These factors, combined with a RAE (Regulatory Authority for Energy) rule imposed to ensure bidding competition at RES auctions – the rule requires participant registrations to represent amounts exceeding those to be auctioned by at least 75 percent – is expected to prompt a shortage of mature projects for upcoming RES auctions.

 

Solar energy opportunities to be explored at key Athens event

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Greece’s reinvigorated solar energy market has been generating a lot of attention from both local and international players. Recently, the country’s energy regulator, RAE, announced that the country’s second solar PV auction will take place on December 10, where it plans to award 94 MW to PV projects up to 1 MW, and 100 MW to projects between 1 MW and 20 MW. Interestingly enough, Greece has already reached its 2020 target of 2,200 MW of installed PV capacity. That bids the question as to what the new plans or targets will be for 2020, and what will happen beyond that horizon.

In order to answer these questions, Solarplaza is organizing the PV Market & Tender Mission Greece, taking place on November 20-22, 2018 in Athens. The mission will mobilize a diverse group of governmental officials, international developers, investors and other stakeholders. Together, they will explore the opportunities in the re-emerging Greek PV market, with the upcoming tenders being one of the main focus points of the event.

On the last day of the mission, November 22, Solarplaza will host a one-day summit, involving local market players, at the Royal Olympic in Athens. This embedded event serves the purpose of discussing the challenges and opportunities for PV plant grid connections, the regulatory framework for solar development, as well as the opportunities in the commercial & industrial segment and innovative business models present in the Greek PV market.

During the summit, various high-level speakers will present their knowledge and experience on solar energy in Greece, including Andrea Viaro, Head of Technical Service and Product Management Europe at Jinko Solar; Stelios Psomas, Policy Advisor at HELAPCO (Hellenic Association of Photovoltaic Companies); Dionissis Papachristou, Coordinator Renewables Auction Team at RAE; and Michalis Verroiopoulos, Secretary General of Energy at the Ministry of Energy in Greece.

Parties interested in a sneak peek of the market, ahead of the trade mission, can access a comprehensive overview of the rapidly growing solar energy market in Greece. The ‘Solar Energy Snapshot’ of the Greek PV market provides key insights into the country’s PV sector and solar auctions, and is available on the event website: https://greece.solartrademission.com/white-paper-greece-solar-energy-snapshot/.

For more information on the PV Market & Tender Mission Greece visit: https://greece.solartrademission.com/

For program and organizational related business contact:

Kristiaan Versteeg

Project Manager, Solarplaza

kristiaan@solarplaza.com

+31 63 6149 517

+31 10 3027 907 

For sponsorship and exhibition opportunities contact:

Tom van Dorp

Account Manager, Solarplaza

t.vandorp@solarplaza.com

+31 10 3027 910 

For media partnerships and press outreach contact:

Irene Rodríguez Martín

Marketeer

irene@solarplaza.com

+31 10 3027 912

 

 

Technical team returns Monday for full review of energy sector

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A technical team representing the country’s lenders will be returning to Athens Monday to examine, with Greek authorities, the progress of energy-sector revisions agreed to in the bailout era.

Besides the disinvestment procedure for main power utility PPC lignite units and the course of privatizations, the visiting team’s inspection will primarily focus on the local effort being made for maintenance of the target model’s time frame, which appears to be behind schedule.

For quite some time now, the country’s lenders have applied pressure on Greece for full implementation of the target model – aiming for market coupling, or harmonization of EU wholesale markets – by the first quarter of 2019 and a launch of the local energy exchange by April.

These target dates will be difficult to achieve given the current rate of developments. The time frame’s viability is expected to be discussed by Greek officials and the visiting inspectors.

Electricity market liberalization issues as well as developments concerning RES auctions and the implementation of a transitional CAT mechanism compensating electricity producers offering grid flexibility will also be on the agenda.

RES auction starting prices to be lifted for bigger turnout

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RES auction term revisions being introduced include starting-price increases as a means of attracting investors following a drop to low levels at the year’s first descending-price session on July 2.

RAE, Greece’s Regulatory Authority for Energy, in a plan forwarded to the energy ministry, has called for auction starting prices to be determined by the average starting price of preceding sessions and the average price level of bids made at these.

Under the previous terms, the formula entailed setting auction starting prices by applying the highest bidding prices of the previous session and deducting one percent.

As a result of the revised terms, the starting price for small-scale PV installations will be set at 81.71 euros per MWh, 71.05 euros per MWh for large-scale PV installations and 79.77 euros per MWh for wind energy facilities.

Without the revisions, the respective starting prices for the three categories would have been 79.2, 70.29 and 71.21 euros per MWh.

Wind energy and PV investors requested higher starting prices to ensure profit margins given the unstable output in these sectors.

 

 

RES auctions for leftover PV, wind energy capacities at end of year

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RAE, the Regulatory Authority for Energy, plans to stage a second round of RES auctions towards the end of 2018 offering wind and solar energy capacities left over from a first round staged in the summer.

A total of approximately 193 MW for photovoltaic parks and 129 MW for wind energy parks still need to be offered in 2018 following the summer RES auction, staged on July 2.

According to a decision reached by energy minister Giorgos Stathakis earlier this year, in March, investors are entitled to 300 MW in each of the solar and PV categories for 2018.

The respective 300-MW amounts are available for wind energy parks with capacities of between 3 and 50 MW and photovoltaic parks with capacities up to 20 MW.

Thoughts by authorities to offer extra capacities in both categories at the second-round auctions, especially the solar energy category as a result of its large number of mature projects, were not actualized as legal issues would emerge.

However, auction terms could be revised to prevent single companies from securing overwhelmingly large capacities. This is a concern in the PV category.

A joint auction offering 400 MW for wind energy projects over 50 MW and photovoltaic parks over 20 MW will most likely be deferred beyond 2018, probably for early in 2019, energypress sources noted.

An auction for a fourth category offering leftover capacities concerning a submarine interconnection linking Nea Makri, northeast of Athens, and Polypotamos on the island Evia, a key RES producer, will most probably be deffered for early in 2019. Efforts are still being made to stage this auction within 2018, as was originally planned.

 

Cretan energy alert the focus, new IPTO-Euroasia meeting

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The energy ministry and RAE, Greece’s Regulatory Authority for Energy, are currently focused on delivering measures to counter Crete’s energy sufficiency alert between 2020 and 2022, when the island’s major-scale electricity grid interconnection with Athens is planned to be developed.

At the same time, the power grid operator IPTO and the Euroasia Interconnector consortium – responsible for the wider Euroasia Interconnector, a PCI-status project planned to link the Greek, Cypriot and Israeli power grids via Crete – will make yet another attempt to reach an agreement on the Cretan link at a meeting in Brussels on Monday.

The two sides have vied to secure control of the large-scale Cretan link with Athens. This dispute has delayed the project’s development. A smaller-scale Cretan link is planned to link the island with the Peloponnese.

Pundits see little chance of a compromise between IPTO and the Euroasia Interconnector consortium at Monday’s meeting. If so, RAE may award the Cretan major-scale interconnection’s development to IPTO, with conditions attached, next week.  In this case, IPTO would seek minority-stake partners for the establishment of a Special Purpose Vehicle (SPV) to take on the project.

Crete faces a serious energy sufficiency threat as of 2020 as an exemption to EU law concerning power station emission limits for local high-polluting units, such as those operating on Crete, is set to expire in December, 2019. Completion of the island’s major-scale link stands no chance of being completed by 2020, authorities have warned.

In their attempt to resolve the issue, Greek officials are expected to forward a request to the European Commission for some of the main power utility PPC’s diesel-fueled power stations on Crete to be temporarily exempted from the EU’s strict anti-pollution directives, sources informed.

Cretan power stations currently generating 601 MW of the island’s 813 MW in electricity production will need to stop operating in 2020, according to the emission-limit rule imposed by Brussels.

To help counter the looming issue, RAE also appears to be moving ahead with procedures for the transfer to Crete of Heron I, a small 150-MW gas-fueled unit currently operated by the energy firm Heron in Thebes, slightly northwest of Athens. Heron I runs on two types of fuel, natural gas as the main fuel and diesel as a backup fuel. The unit’s transfer to Crete, sought by Heron, would help the Cretan energy sufficiency problem but not fully resolve it.

In addition, the smaller-scale Cretan link, planned to link the island with the Peloponnese via a submarine power cable whose capacity could be anywhere between 150 MW and 180 MW, will offer further support.

RAE could also examine staging RES auctions for the installation of renewable energy units on Crete, such as solar energy facilities, which can be swiftly set up, sources added.

 

 

 

Germany’s ABO Wind enters local RES market via Creta Farms deal

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German company ABO Wind, one of Europe’s most experienced renewable energy project developers, has acquired 51 percent stakes in two local RES firms, Energiaki Thessalias and Farma Energiaki, via an agreement with charcuterie company Creta Farms, whose major shareholders, the siblings Emmanouil and Konstantinos Domazakis, also hold stakes in the two RES firms.

Energiaki Thessalias and Farma Energiaki took part in a RES auction held by RAE, the Regulatory Authority for Energy, on July 2 to secure remuneration for solar energy project capacities. ABO Wind then entered the equity make-ups of the two RES firms with 51 percent stakes.

The Domazakis brothers held an 81 percent stake in Creta Farms and 50 percent each in Energiaki Thessalias and Farma Energiaki prior to the agreement with ABO Wind. The Creta Farms siblings now each hold 24.5 percent stakes in the group’s two RES firms. Energiaki Thessalias and Farma Energiaki already hold PV power production licenses.

ABO Wind has developed 650 projects – wind turbines, solar energy stations and biogas units – with a total of capacity of at least 1,400 MW. The German company employs 500 persons, is active in 18 countries around the world, and was founded 22 years ago.

Energiaki Thessalias and Farma Energiaki entered a category for PV projects of between one and 20 MW at last month’s RES auction. The two firms are behind four solar energy projects planned for development in mid-north Greece’s Trikala region. Three of these projects are each planned to have capacities of 9.89 MW and the fourth 8.3 MW.

The Domazakis brothers and ABO Wind, who have informed RES of the new equity line-ups at Energiaki Thessalias and Farma Energiaki, secured 37.97 MW of 52.92 MW offered by the auction’s 1-20 MW solar energy category. A total of 14 PV station projects took part in this auction category.

Energiaki Thessalias and Farma Energiaki secured prices of 62.97 and 62.99 euros per MWh from an auction starting price of 80 euros per MWh.

PV investors claim bigger projects segmented for benefits at auction

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Many smaller solar energy investors who took part in the recent RES auctions have lodged a wave of protests to RAE, the Regulatory Authority for Energy, and DEDDIE/HEDNO, the Hellenic Electricity Distribution Network Operator, claiming large-scale PV projects were deliberately broken down into fractions of their total and entered into the auction’s sub-category for small-scale photovoltaic installations of less than one MW, offering investors behind these moves a series of advantages.

In doing so, investors behind larger PV projects with capacities exceeding one MW were able to participate in the auction’s sub-category for solar energy projects of less than one MW, which offered a higher remuneration tariff starting price and less competition.

Three auctions were staged for three sub-categories – small-scale photovoltaic installations of less than one MW; larger-scale PV installations measuring between one and 20 MW; and wind energy installations of between 3 and 50 MW.

Disgruntled smaller-scale investors argue bigger PV projects were broken down and presented as ventures with capacities of no more than 500 KW.

Subsequently, one major corporate group may have dominated the PV auction for small-scale photovoltaic installations, securing deals for 46 of the sub-category’s 83 projects listed, or 34 MW of the 53 MW offered in this sub-category.

Besides securing higher tariffs for output, investors who broke down larger PV projects into smaller fragments, also stand to gain a series of other benefits. These include a RAE production license exemption – a procedure requiring three years – and avoidance of target-model obligations, limited to bigger PV projects and entailing considerably greater operational costs.

Responding to the protests, RAE contends it is not authorized to examine the validity of the claims. DEDDIE/HEDNO admitted that certain PV projects may have been segmented for the RES auction but added this remains unsubstantiated and cannot be proven. As a result, successful bidders cannot be deprived of terms secured at the auction, the operator noted.

Data provided by one protesting investor to energypress indicates that the owner of one project who had applied for a production license in the past segmented this project into smaller ones for the recent RES auction, staged on July 2.

 

Country risk, installation costs push down RES auction prices

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Greece’s reduced country risk and the drastic drop in RES technology purchase and installation costs, both for solar and wind energy, appear to have been key factors that drove down prices for output remuneration at Monday’s RES auction, staged by RAE, the Regulatory Authority for Energy.

RES facility purchase and installation costs have fallen considerably over the past year, especially for wind-energy systems, down by around 30 percent. New-technology turbines not only cost less to buy but have made spectacular gains in productivity, enabling the development of sustainable projects even in areas offering low and medium wind-energy potential.

As for the photovoltaic sub-sector, the cost of solar panels has also dropped significantly but anti-dumping measures imposed by the EU and the US to protect these markets from low-cost Chinese imports have subdued the growth potential.

Besides the lower purchase and installation costs, a downward trend seen continuing to create further sustainability expectations, the low prices reached at Monday’s RES auctions can also be greatly attributed to the considerably lower financing costs enjoyed by foreign enterprises compared to Greek rivals, including major domestic players.

For quite some time now, foreign players have eyed Greece’s RES market, now offering  satisfactory and guaranteed yields, but hesitated to make the move as a result of the elevated country risk factor.

The latest RES auction suggested these concerns are subsiding. The participation of major players such as Germany’s ABO and Portugal’s EDP Renovaveis, both new entries into the Greek market, could, on the one hand, intensify competition and create problems for local firms, but, on the other, could set a trend for more sector investments in the near future.

“Investors are like fish. They all move together to wherever one or two made the initial move,” one pundit told energypress.

Three auctions were staged for three sub-categories – small-scale photovoltaic installations of less than one MW; larger-scale PV installations measuring between one and 20 MW; and wind energy installations of between 3 and 50 MW.

In the first category (small-scale photovoltaic installations of less than one MW), large projects were broken up into many smaller ones. Egnatia Energia was a dominant participant securing 46 of the catalogue’s 83 projects for a total of 34 MW of the 53 MW offered.

In the second category (larger-scale PV installations measuring between one and 20 MW), Germany’s ABO was a main bidder, securing 5 projects with a total capacity of roughly 45 MW at prices of between 62.97 and 62.99 euros per MWh for the output’s remuneration.

In the third category (wind energy installations of between 3 and 50 MW), EDP Renovaveis was a main player. It secured a 44.6-MW wind energy park for a price of 68.18 euros per MWh for output.

Other successful bidders included Marmara Pavlidis, securing two projects with a combined capacity of 36 MW; Vedavel (one project, 34-MW); Eltech Anemos (one project, 28.8 MW), Iberdrola Rokas (one project, 16 MW), and PPC Renewables (one project on the island Andros, 11.5 MW).

A total of 83 projects with an overall capacity of 53.4835 MWp qualified for the auction’s first category. Its starting price was set at 85 euros per MWh. The lowest bidding price was 75.87 euros per MWh.

A total of eight projects with an overall capacity of 52.91896 MWp were selected for the second category. Its starting price was set at 80 euros per MWh. The lowest bidding price was 62.97 euros per MWh.

A total of seven projects with an overall capacity of 170.925 MWp were selected for the third category. Its starting price was set at 90 euros per MWh. The lowest bidding price was 68.18 euros per MWh.

 

 

 

 

 

RES prices driven considerably lower at yesterday’s auction

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Intense bidding competition pushed prices considerably lower at yesterday’s descending-price RES auctions held by RAE, the Regulatory Authority for Energy, offering prices for solar and wind-energy project output.

Three auctions were staged for three sub-categories – small-scale photovoltaic installations of less than one MW; larger-scale PV installations measuring between one and 20 MW; and wind energy installations of between 3 and 50 MW.

The lowest price at the wind energy auction, whose starting price was set at 90 euros per MWh, reached 68 euros per MWh, while the highest price achieved for payment of RES energy production was close to 72 euros per MWh, energypress sources informed.

PPC Renewables, Iberdrola Rokas, Vendavel and a newly arrived foreign firm, which submitted the wind energy sub-category’s lowest bid, were among the participants who secured remuneration prices for output at projects.

At the auction for larger-scale PV installations, whose starting price was set at 80 euros per MWh, the smallest bid reached a level of 63 euros per MWh and the biggest was 71 euros per MWh. Germany’s ABO, whose bids were extremely aggressive, EYDAP, Biokarpet and Dimokritios were among the participants in this category.

Prices in the auction for small-scale PV installations, whose starting price was set at 85 euros, reached as low as 76 euros per MWh.

The top prices reached at yesterday’s three auctions will be used to shape the starting prices of the next RES auction.

Considerable delays that affected the online bidding system towards the end of the session, especially in the auction concerning small-scale PV installations, led to protests by participants who were not able to submit improved bids on time.

A RAE term requiring auction participation registrations to represent amounts exceeding the amounts to be auctioned by at least 75 percent was a key factor behind the intense bidding at yesterday’s session. The objective was to drive down prices for renewable energy output in order to burden consumers as least as possible.

Yesterday’s auction proves that it is realistic to limit the environmental footprint without incurring significant energy cost increases, energy minister Giorgos Stathakis commented following the session.

 

Banks warn investors of added costs in new RES auction terms

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Though keen to finance renewable energy projects in the sector’s new era, starting this coming Monday with RES auctions, banking sources, in comments offered to energypress, have warned prospective investors to pay particular attention to new additional costs and charges included in the terms of the forthcoming auctions, noting these could impact financial results and the sustainability of projects.

For quite some time now, authorities have made clear the costs included in the new RES auction terms. Monday’s session will offer RES investors capacities for three sub-categories – small-scale photovoltaic installations of less than one MW; larger-scale PV installations measuring between one and 20 MW; and wind energy installations of between 3 and 50 MW.

“Sustainability is the first criterion investors will need to consider when deciding on the levels of their auction bids, otherwise they could end up trapped with an offer that, on the one hand, may guarantee success at the auctions and push forward their projects but, on the other, burden them with an unprofitable selling price for their energy output and lead to unfavorable developments in the long term,” one banking official explained.

According to calculations made by banking officials contacted by energypress, the various charges for producers included in the new RES auctions terms could exceed 15 percent of bids submitted in the descending-price auctions.

For example, the various charges in the wind-energy category, whose auction starting price has been set at 90 euros per MWh, have been estimated to total between 8 and 13.8 euros per MWh.

RES auction to offer just 283 MW of 600 MW planned

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Investor appeals seeking reappraisals of their rejected registration applications concerning upcoming RES auctions on July 2 have produced just minor changes on the list of qualifiers.

Investors representing 155 projects with a total capacity of 93.66 MW will take part in the auction’s category for small-scale photovoltaic installations of less than one MW.

A total of 22 projects totaling 11.88 MW were rejected from 177 applications submitted with a 105.5 MW overall capacity. Prior to the appeals – unsuccessful applicants were  were given a few days – applications for 149 projects totaling 91.6 MW had been  approved.

Given a RAE (Regulatory Authority for Energy) term applied to ensure heightened bidding competition at the auctions – it requires endorsed applications to exceed  amounts to be auctioned by at least 75 percent – a total of 53.52 MW will be offered in this category.

Investors representing just 13 projects with a total capacity of 93.44 MW have qualified to take part in a second PV sub-category for bigger projects measuring between one and 20 MW.  A total of 21 projects with an overall capacity of 103.77 MW were eliminated. A total of 34 applications totaling 197 MW were originally submitted, while just 8 had been approved prior to the investor appeals. Taking into account RAE’s aforementioned auction competition-related conditions, 53.40 MW will be auctioned off in this sub-category.

As for the third category, concerning wind energy installations of between 3 and 50 MW, all 14 applications originally submitted, totaling 308 MW, were approved. RAE’s auction competition rule will reduce the amount to be auctioned to 176.39 MW.

Subsequently, a total of 106.92 MW and 176.39 MW will be auctioned in the PV and wind energy sub-sectors, respectively, for a grand total of 283.31 MW. This is less than half the 600 MW (300 MW for wind energy projects and 300 MW for PV projects) announced by RAE for 2018, not including a separate combined auction.

The subdued figures have troubled RES renewable energy market officials, who have already called for changes to the auction rules and licensing procedure.

“It is clear, regardless of the auction developments, that rules and procedures need to be changed if we truly want fast and robust renewable energy sector growth in our country,” SEF/HELAPCO, the Hellenic Association of Photovoltaic Companies, announced in a statement.

 

 

 

Finalized RES auction list to be announced, changes wanted

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An examination by authorities of investor appeals following the rejection of registration applications concerning upcoming RES auctions on July 2 have not led to any major changes to the final list of participants, sources have informed.

The finalized list of auction participants is expected to be published either today or tomorrow.

A considerable number of RES auction applications concerning capacities for large-scale photovoltaic projects were rejected as, in these cases, prospective investors failed to submit in digital form all appropriate support documents as they had done on paper. Virtually all of these rejections are expected to be upheld.

The total capacity of applications approved for small-scale PV installations totaled 91.6 MW and concerns 149 projects. A total of 28 applications concerning this sub-category were rejected. A total of 177 applications for 105.5 MW were submitted.

As for the large-scale PV category, concerning projects of between one and 20 MW, a total of just 52.9 MW for eight projects was approved. Applications for a total of 26 projects representing 144 MW were rejected in this category. A total of 34 applications for 197 MW had been submitted.

In the third category, concerning wind energy installations of between 3 and 50 MW, all 14 applications submitted, totaling 308 MW, were approved.

Renewable energy market officials are calling for changes to future auction regulations and licensing procedures.

“It is clear, regardless of the auction developments, that rules and procedures need to be changed if we truly want fast and robust renewable energy sector growth in our country,” SEF/HELAPCO, the Hellenic Association of Photovoltaic Companies, announced in a statement.

The association also noted that only a small number of PV projects are currently at a mature stage as a result of a misjudged decision taken by authorities in 2012 to freeze licensing activities in the sector for two years.

“We call on the energy ministry to promptly simplify licensing procedures so that photovoltaic project growth can be achieved,” SEF noted in its statement.

Leftover capacities concerning the July 2 RES auction will be reoffered to investors through an additional auction towards the end of the year. RAE, the Regulatory Authority for Energy, is expected to make an official announcement on this in September.

According to SEF calculations, bidders representing 91.63 MW of solar energy projects will compete in the auction’s first category concerning solar energy projects less than one MW. Investors representing a total of 52.92 MW of solar energy projects will compete in the second category, concerning projects of between one and 20 MW, SEF estimates.

Terms implemented to ensure heightened bidding competition at the auctions require applications to oversubscribe amounts to be auctioned by 75 percent.

As a result, solar project investors representing 52.92 MW in the larger category concerning projects of between one and 20 MW will compete for 30.2 MW.

This is less than the 35.12 MW auctioned in this category at a pilot auction staged in December, 2016.

RES auction rejections for large-scale PV projects reach 144 MW

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A considerable number of RES auction applications concerning capacities for large-scale photovoltaic projects, to be offered at an upcoming auction on July 2, have been rejected as, in these cases, prospective investors failed to submit, in electronic form, all appropriate support documents as they had done in writing.

The upcoming RES auctions have been split into three categories, one for photovoltaic installations with capacities less than 1 MW, another for photovoltaic installations with capacities of between 1 and 20 MW, and a third auction for wind energy installations between 3 and 50 MW.

The capacity of applications submitted and approved for small-scale photovoltaic installations totaled 91.6 MW and concerns 149 projects. Applications for this sub-category concerning 28 projects with a capacity of 13.9 MW were rejected. A total of 177 applications for 105.5 MW were submitted.

As for the large-scale photovoltaic category, concerning projects between one and 20 MW, a total of just 52.9 MW for eight projects was approved. Applications for a total of 26 projects representing 144 MW were rejected in this category. A total of 34 applications for 197 MW had been submitted.

In the third category, concerning wind energy installations of between 3 and 50 MW, all 14 applications submitted, totaling 308 MW, were approved.

RAE had announced the photovoltaic and wind energy categories would each be offered 300 MW through RES auctions in 2018.

Terms set to ensure bidding competition at the auctions will require applications to oversubscribe amounts to be auctioned by 75 percent. Investors whose applications were rejected have been given a short period to appeal. If there are no changes, then 52.2 MW will be offered in the small-scale photovoltaic category, 30.2 MW in the the large-scale photovoltaic category, and 175.5 MW in the wind energy category.

This means that the remaining amounts – 217.5 MW from the two photovoltaic sub-categories and 124.5 MW from the wind energy category – will be offered through an additional auction towards the end of the year. RAE is expected to make an official announcement on this decision and the date of the additional auction in September.

 

Foreign players new to Greek market apply for upcoming RES auction

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A number of foreign players new to the Greek market have submitted applications for wind and solar energy capacities to be offered at a RES auction on July 2.

Interested foreign players who met a June 5 deadline for applications include EDP Renovaveis, a subsidiary of Portugal’s EDP, among Europe’s major electricity operators.

According to energypress sources, EDP Renovaveis submitted applications for two wind energy projects with respective capacities of 45 MW and 15 MW. The company has purchased licenses from firms already active in the Greek market for these projects.

In another noteworthy development, Rokas Iberdrola, which had essentially stopped making investments over the past six years, also submitted an application.

China Three Gorges (CTG) holds a 23 percent stake of EDP, the parent company of EDP Renovaveis.

The Chinese firm recently made a 9.1 billion-euro offer to takeover EDP in its entirety. However, this offer, made on May 15, was rejected by the EDP board. CTG will need to make an improved offer if it is to stand a chance of buying out EDP.

Besides its role in the Portuguese market, EDP is also active in the natural gas and electricity markets of 14 countries, including the US (wind energy), Brazil (hydropower), France, Italy and Poland (wind energy markets of all three), as well as electricity generation and distribution in Spain.

Level of RES auction applications ‘satisfactory’, 250 MW left over

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Prospective participants of a RES auction scheduled for July 2 to offer investors installation capacities for mature projects in three categories – wind energy projects between three and 50 MW; large-scale solar energy projects between one and 20 MW; and small-scale solar energy projects less than one MW – have submitted a satisfactory level of applications, according to sources.

The deadline for applications expired yesterday. An official announcement has yet to be made.

Applications for wind-energy capacities were highest, totalling approximately 380 MW, sources noted.

Applications for the two solar energy categories reached a combined total of approximately 240 MW, of which roughly 195 MW concerns large-scale photovoltaic projects between one and 20 MW.

Judging by these figures, capacities of between 215 and 220 MW concerning wind energy projects and 135 to 140 MW concerning photovoltaic projects will be offered at the upcoming July 2 auction.

Taking into account a decision by RAE, the Regulatory Authority for Energy, to offer a total of 600 MW in 2018, approximately 250 MW will be left over following next month’s RES auction. According to sources, this amount will be offered at an additional auction within 2018. It is not linked to a combined wind-solar capacities auction also scheduled for the current year.

Official application data for the July 2 auction is scheduled to be released on June 19 when RAE will make known the final cut and precise capacities to be offered following an examination of applications.

Demand for upcoming RES auction well under 600 MW offered

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Wind and solar energy project investors are expected to seek far less than a 600 MW total capacity to be offered for installations at RES auctions on July 2, current data and forecasts strongly suggest.

The precise RES capacity total to be sought by investors at next month’s RES auctions, staged by RAE, the Regulatory Authority for Energy, will be known tomorrow, when the deadline for applications expires.

The subdued interest of RES investors is particularly substantial in the photovoltaic sub-category, representing 300 MW of the 600 MW total to be offered at the July 2 auction.

According to legislation designed to intensify the bidding process, capacities applied for will need to exceed auction capacities by 75 percent.

Currently available data suggests that a significant RES capacity amount will be left over. If so, this amount will be offered through a follow-up RES auction within the current year, according to sources. It is not linked to a combined wind-solar capacities auction also scheduled for 2018.

According to the initial RAE plan for the year, capacities of 300 MW will be made available to each of the wind and solar energy sub-categories in 2018, while the combined wind-solar auction will offer investors a further 400 MW.

The upcoming RES auction on July 2 will be divided into three sessions. One of these will concern photovoltaic installations with capacities less than 1 MW. Another will offer photovoltaic installations with capacities of between 1 and 20 MW. A third auction will cater to wind energy installations between 3 and 50 MW.