RES capacity auctions

Building frenzy in wind energy sector spearheaded by Kafirea investment

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Construction activity in the country’s wind energy sector has reached lofty levels in recent times, as highlighted by a capacity of more than 500 MW now being installed.

This heightened activity includes a major 300 million-euro investment in Kafirea, southern Evia, being developed by Enel’s Greek subsidiary, Enel Green Power Hellas. Development of this facility, a complex of eight wind farms to offer an overall capacity of 167 MW, is now moving ahead at full speed after the Council of State, Greece’s Supreme Administrative Court, cleared the business plan as lawful in a verdict delivered last month.

All of the country’s major wind energy players are currently developing projects, which has boosted the sector’s construction activity to its current heights. Numerous medium and small-scale investors are also contributing to the RES sub-sector’s current development frenzy.

Projects now being developed have managed to keep steady feed-in premiums. Once these wind energy investments have been completed, the baton will be passed on to investments to emerge from the next round of auctions.

Proposals made by RAE, the Regulatory Authority for Energy, for the wind energy sector include auctioning a maximum capacity of 300 MW this year, a further 300 MW in 2019 plus any leftover capacities from this year’s auctions, and an additional 300 MW in 2020 with any 2019 leftovers intact.

 

 

RES auctions seen offering 2,600 MW between 2018 and 2020, starting June

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A total capacity of 2,600 MW will be offered at wind and PV energy RES auctions between 2018 and 2020, according to a proposal prepared by RAE, the Regulatory Authority for Energy, based on a new EU framework for renewable energy requiring auctions.

RAE is aiming for greater grid penetration by the RES sector, which would help the country achieve its CO2 emission targets, and a minimalization of renewable energy costs, covered by consumers through the RES-supporting ETMEAR surcharge, RAE official Dionysis Papahristou told a conference held yesterday by the authority.

A pilot auction staged a little over a year ago, offering photovoltaic capacity, was instrumental in the shaping of the new RES auctions, the RAE official noted. Prices were driven extremely low, for Greek standards, while all quantities offered were taken up, he added.

Offering further details on the pilot auction, Papahristou informed that 13 participants submitted a total of 35 bids in a category for projects of less than 1 MW. The bidding here was mild and prices reached 98.98 euros per MWh.

Fierce bidding competition took place in a seperate auction for projects of more than 1 MW. A total of 12 participants submitted 435 bids, averaging one every three seconds, for prices as low as 83.3 euros per MWh.

RAE is closely monitoring the progress of projects that acquired capacities at the pilot auction. Satisfactory progress is being made, the RAE official said.

As for the upcoming full-scale RES auctions, RAE will implement measures aiming to generate fierce competition, including an auction term requiring investors to submit bids for amounts exceeding total capacities on offer by at least 80 percent if planned capacity amounts are to be offered.

RAE is headed towards establishing three auction categories, one for PV projects of less than 1 MW and a starting price of 95 euros per MWh; another for PV projects between 1 and 10 MW and a starting price of 85 euros per MWh; and a third auction category for wind energy projects with capacities between 3 and 50 MW and a starting price of 95 euros per MW.

RAE believes the first of these new RES auctions may be held in early June. The energy ministry needs to pave the way by signing a related ministerial decision.

A second auction for major-scale projects is expected to follow in August. Installation capacities for PV projects of more than 10 MW and wind energy projects of over 50 MW will be included.

The RAE plan is expected to include 300 MW for wind energy installations and 300 MW for photovoltaic capacity, annually, in 2018 and 2019.

Tough RES auction terms supporting competition expected

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RAE, the Regulatory Authority for Energy, is seeking to satisfy tough European Commission demands aiming to generate fierce competition between investors at new RES capacity auctions being planned.

According to sources, RAE, the Regulatory Authority for Energy, at a related seminar today, is expected to inform propective investors that one of the auction terms will require investors to submit bids for amounts exceeding total capacities on offer by at least 80 percent if planned capacity amounts are to be offered.

The energy ministry plans to stage two RES capacity auctions within the first six months of 2018. They are expected to offer 300 MW for wind energy installations and 300 MW for photovoltaic capacity, well over an initial plan already endorsed by the European Commission, offering 100 MW for each of these two RES technologies, it has been revealed.

Given the aforementioned condition, investors will need to place bids for capacities totaling 540 MW in each of the PV and wind sectors if the 300 MW capacities in each sub-sector are to be offered.

One of the conditions in a pilot auction staged in December, 2016, had required investors to submit bids for capacities whose sum exceeded the overall amount offered by at least 40 percent.

The strict demands of the new condition being planned are expected to raise issues concerning the maturity levels of project licenses.

It is anticipated that wind energy project investors will be required to have received finalized connection offers in order to participate in the auctions. PV project investors may be required to have at least covered the licensing procedure’s preliminary stage.

 

 

Ambitious RES auctions for wind, PV capacities seen for first half of ’18

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The energy ministry intends to stage two RES capacity auctions within the first six months of 2018 offering 300 MW for wind energy installations and 300 MW for photovoltaic capacity, well over an initial plan already endorsed by the European Commission and offering 100 MW for each of these two RES technologies, energypress sources have informed.

The upcoming auction will be divided into two categories, as was the case with a pilot auction held in December, 2016, for projects with capacities of over 1 MW, to be offered the lion’s share (80%), and projects of less than I MW, to be offered the remaining 20 percent.

Energypress sources informed that the energy ministry has already decided on this far more ambitious RES capacity plan, which could be announced as soon as tomorrow at a RAE (Regulatory Authority for Energy) seminar to cover energy market auctions.

Based on the plan already endorsed by the European Commission, Greece has committed to offering combined wind-and-solar energy capacity auctions, instead of separate sessions, by the beginning of 2019, the objective being to increase competition and reduce renewable energy costs for consumers.

It is believed that authorities may consider staging the first combined wind-and-solar energy auction, offering 400 MW as a pilot session, within the second half of this year.