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

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

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

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

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

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

 

PPC, Mytilineos €2bn RES deal converges company strategies

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

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

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

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

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

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

 

Copelouzos holds Balkan, Italy talks for GREGY Interconnector

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

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

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

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

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

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

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

Retail electricity prices below EU average in first half of ’23

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Retail electricity price levels in Greece were well below the EU average in the first half of 2023, giving the country a 17th place ranking for most expensive low-voltage electricity among member states, Eurostat data has shown.

Greece ended the six-month period with retail electricity prices averaging 233 euros per MWh, compared to the EU average of 289 euros per MWh over the same period.

Calculations for these figures include taxes and other charges, but not subsidies offered to consumers.

The Netherlands topped the list with an average price of 475 euros per MWh in the first half of 2023, while Bulgaria was placed at the bottom end with an average price of 114 euros per MWh.

As for EU member states ranked slightly above Greece, Lithuania averaged 281 euros per MWh, Sweden followed with 269 euros per MWh, Austria was next 265 euros per MWh, Ireland’s average was 248 euros per MWh, and Finland, one place above Greece, ended the first half last year with an average price of 238 euros per MWh.

On the contrary, electricity supply for non-residential consumers in Greece, averaging 213 euros per MWh, was slightly above the EU average of 210 euros per MWh. Even so, Greece’s ranking remained the same, 17th most expensive, for this category.

Romania topped the list of most expensive non-residential electricity with an average of 329 euros per MWh, while Iceland ranked lowest with an average of 78 euros per MWh in the first half last year.

 

PPC, a regional player, turning into an energy ambassador

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Power utility PPC’s strategic moves into southeast European markets are becoming a powerful tool of economic diplomacy for Greece and the country’s interests in the wider region as control of energy corridors and resources is equivalent to geopolitical power.

PPC’s chief executive Giorgos Stassis and his associates have been making more regular and intensified contact of late with government officials in the wider region and across the Atlantic.

Stassis’ meeting with Geoffrey Pyatt, the US’s Assistant Secretary of State for Energy Resources, in Washington just over a week ago, followed by a meeting earlier this week with Romanian Prime Minister Marcel Ciolacu, highlight the important diplomatic role now been played by PPC.

During their Washington meeting, Stassis and the US’s Assistant Secretary of State for Energy Resources discussed how PPC could play a more active role through east Europe’s major energy corridors and the US-backed Three Seas initiative, involving 13 Baltic Sea, Black Sea and Adriatic Sea countries and aiming to offer protection against the threat of Russia.

The US sees Greece’s initiatives in the wider region as moves that are aligned with America’s geostrategic interests, especially at a time when Russia’s war in Ukraine has turned arming eastern Europe against Russian influence into a priority.

US sees American interests in PPC’s southeast Europe plans

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

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

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

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

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

ENTSO-E: Greece key for harnessing offshore wind potential in southeast Europe

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ENTSO-E, the European Network of Transmission System Operators for Electricity, has, amongst other matters, underlined Greece’s importance in the exploitation of offshore wind potential in the Eastern Mediterranean region in its Offshore Wind Farm Interconnection Infrastructure Development Plan for the Eastern Mediterranean.

ENTSO-E held a meeting in Brussels earlier this week, where the development plan was presented. Greek power grid operator IPTO took part.

Italy is the region’s only country to have developed offshore wind farm projects thus far, but ambitious targets, given the current situation, for 2040 and 2050 will be achieved with countries such as Italy and Greece at the forefront, ENTSO-E noted.

The Eastern Mediterranean region’s South and East Offshore Grids will require energy transmission infrastructure totaling 8.7, 19.2 and 28.3 GW in 2030, 2040 and 2050, respectively, ENTSO-E has estimated, adding that investments needed by 2050 could reach 15 billion euros.

Environmental studies ahead of offshore wind farm projects may face fewer challenges and problems than corresponding onshore projects, ENTSO-E pointed out.

The Eastern Mediterranean region possesses strong wind potential and new offshore wind farms can help the electricity sector meet 2050 targets and become a zero-emission industry both in this region and the EU as a whole, ENTSO-E supported.

The development plan for offshore wind farms in the Eastern Mediterranean and Black Sea regions includes Greece, Bulgaria, Croatia, Cyprus, Italy, Romania and Slovenia.

Greece, Cyprus, Croatia, Italy and Romania have all set official offshore wind farm development targets, while Bulgaria and Slovenia have yet to do so.

PPC developing into a southeast European force

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

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

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

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

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

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

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

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

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

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

EU support sought for half of Vertical Corridor’s €450m budgeted cost

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The Vertical Corridor, a European gas-pipeline system now planned to involve TSOs of seven countries – Greece, Bulgaria, Romania, Hungary, Slovakia, Moldova and Ukraine – will require an estimated 450 million euros in investments, energypress sources have noted.

Greek gas grid operator DESFA’s share of this sum will be minimal as a compressor station at Komotini, northeastern Greece, is all it will need to contribute to the project. All other upgrades to Greece’s gas grid, which, once completed, would enable the country to serve as a Vertical Corridor entry point, are already under development.

Officials of the six other countries participating in the project through initiatives taken by local TSOs believe that 50 percent of the project’s budgeted cost would need to be covered by EU funds if Vertical Corridor is to be materialized.

Project participants will push for political commitment from the European Commission by March as the upcoming European elections and any leadership changes would result in delays.

This issue was raised during a two-day ministerial conference staged by the Central and South-Eastern European Gas Connectivity Group (CESEC) in Athens last week, a gathering attended by European Commissioner for Energy Kadri Simson, but no indications of Brussels’ stance were offered.

Vertical Corridor project members are now expected to intensify their call to the European Commission for political support regarding the project’s development.

Following an initiative taken by Slovakia, an MoU was signed at the CESEC meeting in Athens to bring Moldova and Ukraine into the Vertical Corridor project.

Besides TSOs from the seven participating countries, Gastrade, a consortium established by the Copelouzos group for the imminent Alexandroupoli FSRU at Greece’s northeastern port of Alexandroupoli, and ICGB, the consortium behind the Greek-Bulgarian IGB gas pipeline, are also involved in the Vertical Corridor initiative.

Vertical Corridor meeting to gather project participants

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Pivotal European energy infrastructure projects such as a vertical gas corridor, crucial for decoupling the region from Russian gas, an initiative which Ukraine and Moldova will officially join; a Greek-Cypriot-Israeli electrical grid interconnection; as well as hydrogen-related plans, will all be tabled for discussion at a meeting in Athens today between the energy ministers of southeast Europe.

Participants at the CESEC (Central and South Eastern Europe Energy Connectivity) meeting will be focusing on the most mature cross-border and trans-European gas and electricity projects that promise to enhance southeast Europe’s energy autonomy and upgrade its geopolitical importance.

Important remaining priorities concerning the vertical corridor include completion of its  Bulgaria-Romania pipeline segment; and to officially bring Ukraine and Moldova into the project’s picture. As part of the process, Greek gas grid operator DESFA is today expected to sign an MoU will all TSOs involved.

The vertical corridor includes a 182-km Greek-Bulgarian pipeline, the Bulgarian-Romanian section, and its interconnection with the network on the border with Ukraine and Moldova.

This corridor, combined with the imminent launch of the 5.5-bcm capacity Alexandroupoli FSRU, in Greece’s northeast, is expected to accelerate Europe’s effort to decouple the continent’s southeast from Russian energy dependence.

 

PPC to present ambitious 4-yr business plan at London event

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Greek power utility PPC, going from strength to strength in recent years, is expected to present a highly ambitious four-year business plan at a Capital Markets Day event in London on January 23.

PPC and investors anticipate a big year for the company in 2024, as suggested by a 65 percent rise of the company’s share over the past year.

The company has undergone a major revamp since the summer of 2019, when Giorgos Stassis was appointed CEO. PPC is now looking ahead with robust finances, without burdens and corporate mismanagement of the past, and possesses substantial amounts for big investments which other big players are keen to participate in.

PPC has the potential to consistently post annual operating profits of around two billion euros a year. Besides Romania, the company’s expansion plan now also includes Bulgaria, as well as a retail energy expansion plan through the company’s fully-owned Kotsovolos electrical and electronics retail chain, a leading force in the Greek market.

 

Alexandroupoli FSRU, arriving 1Q, to offer 45,000 MWh daily

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The Alexandroupoli FSRU, scheduled for launch at the country’s northeastern port in the first quarter, is planned to start operating by supplying roughly 45,000 MWh of natural gas into the Greek network daily, a major sufficiency boost for the domestic system.

The facility, set for launch by March 10, will initially offer an annual capacity of 1.5 bcm, or 27 percent of its annual capacity, to the Greek system. A further 4 bcm quantity will be supplied to the Bulgarian network via the IGB grid interconnection, and, by extension, Romania, North Macedonia, Serbia, and in any markets where traders that have signed contracts with Gastrade, the project’s consortium, have customers.

An initial LNG load, to be used for testing, is scheduled to reach the Alexandroupoli LNG on January 20. It will not stem from Russia as the project is designed to contribute to ending southeast Europe’s reliance on Russian gas.

The testing stage will entail filling a 28-kilometer gas pipeline, running mostly underwater, that connects the terminal with the Greek gas system, in order to check all systems and correct any minor issues so that the FSRU can be ready to operate commercially after six to seven weeks, or early March.

The FSRU, comprised of a floating storage unit with a capacity of 153,500 m3 and three gasification units, offering daily gasification capacity of approximately 22.5 million m3, is a project of national significance that reinforces Greece’s role as an energy gateway to the markets of the wider region.

 

PPC to present ambitious business plan at London event

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Power utility PPC is currently adding final touches to a new and highly ambitious four-year business plan scheduled to be announced January 23 in London, at a Capital Markets Day event, before an audience of international analysts and institutional investors.

They will be expecting news from PPC’s leadership on the energy group’s priorities abroad, including its next big steps planned for the Balkans; a retail energy expansion plan through the group’s fully-owned Kotsovolos electrical and electronics retail chain, a leading force in the Greek market; as well as news on the company’s plans for promising new sectors such as fiber optics and waste management through public-private partnerships.

PPC is also looking to capitalize on company-owned properties that have remained unutilized for decades.

Over the past few years, PPC has enjoyed a period of tremendous growth that has led to a 50 percent increase in financial figures, over 9 million customers, 14 GW in renewable energy projects, and 340,000 kilometers of networks.

Under the leadership of its CEO Giorgos Stassis, PPC is steadily growing into an energy group of international proportions and a dominant force in southeast Europe. Investments in Romania are a key part of this strategy.

 

Gastrade Alexandroupoli FSRU anchors for testing, launch

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The Alexandroupoli FSRU, a floating natural gas liquefaction and storage unit to be installed at the country’s northeastern port of Alexandroupoli by Gastrade, a consortium established by the Copelouzos group for the project’s development and operation, has just entered the Thracian Sea and anchored after setting sail November 26 from Singapore’s Seatrium shipyard, where the unit was developed over a period of nearly ten months.

The FSRU’s arrival to its permanent anchorage marks the completion of a project of major importance for the national and local economies.

In the coming days, the FSRU will be moored through a twelve-point mooring system before being connected to a high-pressure subsea and onshore gas transmission pipeline, which, once operational, will deliver gas to the Greek gas network and, subsequently, consumers in Greece, Bulgaria, Romania, North Macedonia, Serbia, Moldova, Ukraine, Hungary and Slovakia.

The FSRU’s commercial launch is planned for the first quarter of 2024, once testing has been completed. The unit will offer a 5.5-bcm annual liquefaction capacity.

 

Gas trading platform now an established market option

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The country’s gas trading platform has consolidated its place in the Greek energy market since its launch in March, 2022, latest data on the number of participants and trading volumes has shown.

A total of 26 national gas network users are now conducting transactions through the platform, up from 11 when the platform was launched one-and-a-half years ago, while a further three companies are set to complete their respective registration processes and ten more are preparing to begin, energypress sources have informed.

Also, Greek energy exchange officials are currently engaged in talks with a further eight companies that have expressed an interest to participate in the natural gas spot market. This sharp rise has greatly impacted the spot market’s liquidity.

Interest from abroad is also on the rise. At the time of the gas trading platform’s launch, just two companies were based beyond Greece, compared to nine foreign-based companies at present, their headquarters located in Bulgaria, Romania, Luxembourg, and the Czech Republic.

The increased participation has intensified competition, another indicator of the gas trading platform’s robust state.

Wider interest for Greece-to-Germany hydrogen pipeline

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Greek gas grid operator DESFA and operators in Bulgaria, Romania, Hungary, Slovakia and the Czech Republic are interested in developing a hydrogen pipeline running from Greece to Germany via these countries and intend to sign a Memorandum of Agreement early in the new year, energypress sources have informed.

Though the initial idea emerged in Germany and has been encouraged by the German system operator, it is also compatible with broader plans and initiatives undertaken by DESFA, particularly its staging of a market test for an upgrade of Greece’s national gas transmission system that would also serve future hydrogen transmission needs.

The prospect of a vertical hydrogen corridor has been embraced by all Balkan countries, as highlighted by the results of a work group staged in September and those of ensuing meetings.

The Greek gas grid operator is in constant communication with neighboring operators and operators of the wider European region as it is determined to take on an active role in regional developments, especially ones concerning the construction of a hydrogen network serving the continent, sources noted.

Germany, it is worth noting, is set to become the largest – by far – hydrogen import market in Europe in the coming decades, with plans to buy around 70 percent of the hydrogen needed to meet its targets.

Balkan potential highlighted by IPTO’s interest in MEPSO

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Greek power grid operator IPTO’s interest, for some time now, to acquire North Macedonia’s grid operator MEPSO, either through a strategic agreement or a share capital increase, points to the existence of opportunities for energy infrastructure upgrades in the neighboring country as well as the growing role to be played by electricity networks and corridors in the wider region.

As the energy transition progresses, electricity networks and corridors will no longer merely serve as electricity transmission lines, but promise to gradually replace oil and gas pipelines.

Greece, at present, remains sorely absent from the wider Balkan energy-sector activity. IPTO has yet to make any big moves beyond the country’s frontiers.

Though the western Balkans are currently experiencing a green-energy boom with RES investment growth having reached double digits in some countries, regional networks are outdated and insufficient to support this robust investment interest.

Though it is vitally important for Greece to assert itself as an influential energy-sector player in the Balkans, the flow of energy from the region towards central Europe is currently being controlled by Italy.

Italy’s influence, on energy matters, over the Balkans was expanded in recent years with Montenegro as a base and Italian power grid operator in a leading role, as highlighted by its acquisition of a 22 percent stake in Montenegrin power grid operator CGES.

Identifying the pivotal energy role of the Balkans early on, Italy took a strategic decision for the development of a first route linking the western Balkans and Europe in the form of a 445-km line – 423 km of it as an underwater Adriatic Sea crossing – from Pescara, on Italy’s east coast, to Kotor, on Montenegro’s Adriatic coast.

The small Balkan country has since become a bridge of energy exchange between eastern and western Europe as this Adriatic link has interconnected Italy’s network with those of Bosnia and Herzegovina, Serbia, Kosovo, Albania, and, by extension, Bulgarian and Romania.

Italian power grid operator Terna is now examining the prospect of boosting this line’s transmission capacity from 600 MW to 1,200 MW. Giuseppina Di Foggia, CEO at Terna, recently held talks in Rome with Montenegro’s new president, Jakov Milatovic, about this project.

 

IPTO eyeing North Macedonian operator, a Balkan gateway

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Greek power grid operator IPTO is eyeing the Balkan market to reinforce its standing, and, in this context, endeavoring to acquire a stake in MEPSO, North Macedonia’s operator.

If an agreement does go ahead, a prospect that requires the active involvement of the Greek government, then the neighboring country could serve as a gateway for IPTO’s entry into the wider western Balkan region, to take on network upgrade and interconnection projects, definitely needed.

IPTO has already submitted an offer for a stake in MEPSO, either through a strategic agreement or a share capital increase, North Macedonian sources informed.

IPTO executives have, for quite some time now, been engaged in talks with North Macedonian government officials, MEPSO and the country’s regulatory authority covering energy for a stake in the operator, the sources added.

Besides strengthening IPTO’s standing, such a move – which would complement Greek power utility PPC’s takeover agreement for Italian group ENEL’s Romanian subsidiary ENEL Romania – promises to also bolster Greece’s geopolitical role in the Balkan region.

MEPSO also stands to benefit from an agreement with IPTO as the North Macedonian operator could make the most of the Greek operator’s stronger credit rating and gain access to EU funds for network upgrades.

 

DEPA Commercial tender soon for PV parks totaling 495 MW

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Gas company DEPA Commercial aims to announce, by the end of the year, a tender for the design, procurement and development of its first renewable energy projects, energypress sources have informed.

The tender will concern two projects totaling 495 MW, most of this capacity, 400 MW, for solar energy farms in Kozani, northern Greece, plus 95 MW for solar energy farms in Viotia, slightly northwest of the wider Athens area.

DEPA Commercial, which has shaped a new company strategy striving for vertical integration by also becoming an electricity producer, last year acquired New Spesconcept, holding a 222-MW RES portfolio, and North Solar, possessing a RES portfolio of 500 MW.

Besides its entry into the RES sector, with prospective solar energy projects totaling approximately 730 MW, DEPA Commercial also intends to partner with power utility PPC and the Copelouzos group in a new 840-MW combined-cycle power plant being planned for development in Komotini, northeastern Greece.

Also, DEPA Commercial, as part of its new strategy, has undertaken initiatives to expand its wholesale trading activity in foreign markets. This effort has significantly intensified over the past two years.

At present, DEPA Commercial is active in the Austrian, Hungarian, Romanian and Italian markets and has signed agreements to supply gas to Moldova and Albania.

DEPA Commercial, it should be noted, is the first Greek gas company to have become a member of the Hungarian Energy Exchange (CEEGEX).

The Hungarian market represents a pivotal gas trading hub in central Europe and is also located at the northern end of the prospective Vertical Corridor, a route running from Greece to Bulgaria, Romania and Hungary that will be created by interconnecting the transmission systems of these four countries to enable two-way transport of fuel between south and north.

Alexandroupoli FSRU on track for early-2024 launch

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Development of the Alexandroupoli FSRU at the country’s northeastern port is progressing steadily and set for an on-schedule launch by the end of January, 2024, energypress sources have informed.

Tanker conversion work being conducted for the FSRU at Singapore’s Keppel Shipyard was 87.1 percent ready at the end of August, meaning all basic equipment, including burners and gasifiers, has been installed, the sources added.

Representatives of Gastrade, the consortium established by the Copelouzos group for the development and operation of the Alexandroupoli FSRU, visited the Keppel Shipyard just days ago.  The consortium’s chief executive, Kostis Sifneos, headed the visiting group.

The consortium’s members – the Copelouzos group’s Elmina Copelouzou, Gaslog Cyprus Investments Ltd, DEPA Commercial, Bulgartransgaz and Greek gas grid operator DESFA, all holding 20 percent shares – plan to soon hold a meeting to discuss the project’s steps leading to its launch, the sources added.

The FSRU vessel is expected to be ready to set sail for Alexandroupoli in mid-November, before reaching its destination in early December.

The Alexandroupoli FSRU, to offer a 153,500-m3 LNG capacity, will be connected to Greece’s gas network via a 28-km pipeline, through which gasified LNG will be distributed to the domestic market, Bulgaria, Romania, Serbia, North Macedonia, Hungary, Moldova and Ukraine.

The project will serve as a new energy gateway promising to play a key role in the energy security and independence of Greece as well as central and southeast Europe.

PPC chief to take part in Romanian Three Seas meeting

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Greece aims to bolster its geopolitical influence in the Balkans through energy, power utility PPC’s takeover of Italian group ENEL’s Romanian subsidiary ENEL Romania being a key part of this strategy.

In addition to PPC’s takeover of ENEL Romania, Helleniq Energy recently invested in Romania and had been preceded by Mytilineos – both in renewable energy projects.

PPC’s ENEL Romania takeover has prompted an announcement from Romanian president Klaus Iohannis, who named Greece as a new member of The Three Seas, a diplomatic initiative taken by Romania’s political leadership to bring together EU member states and candidates located between the Baltic, Adriatic and Black Seas for collaboration in the fields of energy, infrastructure and the digital economy.

Austria, Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Moldova, Poland, Romania, Slovakia, Slovenia, and Ukraine are the other members of The Three Seas initiative.

Iohannis, Romania’s president, will host a two-day meeting in Bucharest on September 6 and 7 for talks on collaboration in these domains. Ministers and entrepreneurs representing the aforementioned countries, including PPC’s chief executive officer Giorgos Stassis, energypress sources have informed, will take part at the upcoming Bucharest meeting.

Romania has become a geopolitical focal point as a result of the country’s close proximity to war-entangled Ukraine. In addition, Bucharest has established a pivotal role as a result of its support of Ukraine in the war with Russia and Moldova’s EU membership quest. Romania has also facilitated the movement of grain across its borders.

Greece among EU’s top 5 RES producers in first half of 2023

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Greece was among the EU’s top five renewable energy producers in the first half of 2023, while Europe’s solar energy market has experienced a period of significant growth in recent years, a recent study from the energy think-tank Ember has shown.

A total of 17 EU member states achieved record RES energy-mix shares in the first half of 2023, according to the study. RES output in Greece and Romania represented more than 50 percent of the overall energy production levels for both countries, unprecedented for both, the study highlighted.

Also, Denmark and Portugal achieved a significant milestone, with their renewable energy output surpassing the 75 percent mark for the first time, the Ember study revealed.

In another first, wind and solar energy output exceeded 30 percent of the EU’s overall energy production in May and June, according to the study.

As for newly installed RES capacity during the first half of 2023, compared to the equivalent period a year earlier, the Ember study showed an acceleration in RES penetration, particularly notable in the PV sector.

Following 2022’s record performance for PV installations in the EU, which totaled 33 GW, the momentum continued through the first half of 2023. Germany was the EU’s best performer, installing 6.5 GW in PV capacity during the first six months this year, a 10 percent increase. Poland followed with 2 GW, a 17 percent increase, and Belgium ranked third with 1.2 GW, a 19 percent increase.

Wholesale power highest in Europe at €154.63/MWh

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Greece’s wholesale electricity prices have risen sharply today, up 34.68 percent to an average of 154.63 euros per MWh from yesterday’s level of 114.81 euros per MWh, making them Europe’s highest.

The minimum price in Greece today will fall to an average of 96 euros per MWh, while the highest will peak at 377.18 euros per MWh.

Romania has registered Europe’s second-highest wholesale electricity price today, at 150.69 euros per MWh, followed by Bulgaria, at 150.13 euros per MWh.

Meanwhile, major European markets have registered significantly lower wholesale electricity prices today. Italy’s average wholesale price today is at 120.36 euros per MWh and Germany’s is 118.67 euros per MWh.

Norway has registered Europe’s lowest wholesale electricity price today, averaging 40.21 euros per MWh, followed by Turkey, at 82 euros per MWh, Sweden, at 87.6 euros per MWh, and Spain and Portugal, both registering an average of 89.66 euros per MWh.

As for Greece’s energy mix, natural gas-fueled power stations will cover 42.26 percent of the country’s energy needs today, followed by renewables, at 21.56 percent, electricity imports, at 20.26 percent, hydropower, at 7.91 percent, and lignite-fired power stations, at 2.62 percent.

The country’s electricity demand today is projected to reach 161.213 GWh, peaking at 7,946 MW at 12.30 pm.

 

PPC’s 1.6 GW one-third of the way towards 2026 RES target

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Power utility PPC has accumulated a RES portfolio of 1.6 GW, consisting of functioning projects as well as works under construction, a capacity that takes the power utility approximately one-third of the way towards its 5-GW RES target for 2026, the company’s administration has pointed out at a presentation of first-half results.

PPC recently began procedures for a tender offering contracts concerning RES projects totaling 450 MW, took part in an energy-storage auction for projects totaling 100 MW, and secured further environmental and connection term permits for projects totaling 890 MW, PPC’s chief executive officer Giorgos Stassis also noted.

Furthermore, the CEO made note of PPC’s recent acquisitions in Balkan markets. “In Romania, one of the target markets of our strategic plan, we signed, just days ago, an agreement for the acquisition of an operational wind farm with a total capacity of 84 MW, located at two areas known for their optimal wind potential in the country,” Stassis informed.

 

Revised Nabucco pipeline hopes fade, Sofia drops pro-Turkish stance

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A Russian initiative to establish Turkey as a central gas hub, through a revival of a revised version of the old Nabucco project plan, as the transitional government in Bulgaria had attempted to do last spring, appears to have hit an impasse and is unlikely to progress further.

Under the leadership of Bulgarian Prime Minister Nikolai Denkov, who assumed office in June, the new government in Sofia has veered away from the pro-Turkish stance of its predecessor. Instead, it has embraced a more pro-Western orientation in the realm of energy policy.

Also, the European Commission has not shown any interest to financially support the project, dubbed Solidarity Ring.

The ambitious plan had received the backing of certain political circles in Bulgaria keen to exploit Azerbaijan President Ilham Aliyev’s intention to more-than-double his country’s gas exports to the EU from 11 to 27 bcm by 2027.

Bulgaria, Romania, Hungary and Slovakia signed an MoU in Sofia in early May, in the presence of Aliyev, for increased gas supply to central Europe via the Solidarity Ring route.

However, talks in support of this gas pipeline project have ceased, despite its supposed intention to help end Europe’s energy reliance on Russia, EU sources have informed.

Athens, along with other major international energy players, contributed to this impasse. In a letter forwarded to the European Commission in May, Athens noted the project would degrade Greece’s role on the international energy map, upgrade Turkey’s, and serve Russia’s efforts to regain access into the European market, indirectly, by supplying Russian gas as Azeri gas.

This is possible as the Solidarity Ring would bypass Greece and follow a Turkish-Bulgarian-Romanian-Hungarian-Slovakian route into central Europe, meaning Ankara could use Turk Stream, the Russian pipeline running through Turkey, to feed Solidarity Ring.

 

Greek gas hub potential now realistic, DESFA actions show

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Greece, for the first time, has shown true potential to soon establish itself as a regional gas hub and gateway for southeast Europe, judging by the results of gas grid operator DESFA’s recent auctions offering grid capacity reservations, as well as the operator’s non-binding market test for a prospective expansion of the country’s gas transmission network.

DESFA has prepared an extensive ten-year development plan that is fully aligned with the new market conditions taking shape, as well as with the company’s efforts to achieve energy-transition objectives, the operator’s administration has underlined at a news conference.

Greek gas exports increased by 15.09 percent in the first half of 2023, compared to the equivalent period last year, according to DESFA data presented at the news conference.

Also, DESFA’s non-binding market test for a prospective expansion of the country’s gas transmission network drew the participation of 27 companies, 17 of these from abroad, primarily central and southeast Europe, such as Bulgaria, Romania, Austria, Hungary, Slovakia, Germany, Cyprus, North Macedonia, as well as the USA.

Forty percent of the market test’s participants have never before been active in Greece’s natural gas market, DESFA announced.

Participants expressed interest for all the country’s gas grid entry points (Sidirokastro, Nea Mesimvria, Kipoi and Agia Triada), as well as for connections to Greece’s prospective FSRUs (Gastrade, Argo, Dioryga Gas, Elpedison).

Highlighting the Greek natural gas market’s export orientation, exports to Bulgaria totaled approximately 2.4 bcm in 2022, roughly half of Greece’s annual gas consumption last year, 4.9 bcm.

Alexandroupoli FSRU pipeline work in progress, tanker to arrive November

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Development work for the Alexandroupoli FSRU at the country’s northeastern port is in full progress on all fronts, in preparation for the project’s launch early next year.

Besides the project’s floating LNG storage and regasification infrastructure, work is also in progress on the offshore and onshore pipelines to transmit gas to the national grid and, from there, the Greek-Bulgarian IGB pipeline connection for gas quantities to the Balkans.

Officials at Gastrade, the consortium established by the Copelouzos group for the development and operation of the Alexandroupoli FSRU, offered an on-site presentation of the FSRU’s work in progress to visiting ambassadors. This mission was organized by George Tsounis, the US ambassador to Greece, and included the ambassadors of Bulgaria, Romania, Moldova and Ukraine.

The FSRU’s subsea pipelines, to measure 24 km, and overland pipelines, measuring a further 4 km, have been delivered to the Alexandroupoli port for installation.

The Alexandroupoli FSRU promises to serve as an additional source of gas supply for Greece and other Balkan countries. Quantities will be transmitted through the IGB for delivery to Bulgaria and, by extension, Romania.

The project’s specially equipped floating tanker is expected to arrive at its Alexandroupoli location in late November, while the FSRU facility should start operating early in 2024.

Gastrade has already been granted a further license for an additional FSRU, intended to serve Moldova and Ukraine, if the results of a related market test indicate that such an additional project would be viable.

It remains unknown when Gastrade could make an investment decision on this additional FSRU.

 

DEPA Commercial, Moldova’s Energocom nearing gas deal

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Greek gas company DEPA Commercial is close to establishing a gas supply deal with Moldovan state gas and electricity supplier Energocom, sources have informed, noting the two sides are currently discussing gas quantities and prices for what could be a long-term agreement.

Both Energocom and Moldova, as a whole, are looking for alternative energy sources as the Balkan country, neighboring Ukraine, seeks to end its reliance on Russian fossil fuels.

Kostas Xifaras, chief executive at DEPA Commercial and Energom’s general director Victor Binzari have held talks as part of an official visit to Athens by the leadership of Moldova’s energy ministry.

Greek energy minister Kostas Skrekas, who met with his Moldovan counterpart, Victor Parlikov, during this visit, released an announcement about the prospective supply deal.

DEPA Commercial gas quantities would reach Moldova through an eastern corridor, or network of gas pipeline interconnections linking Greece with Bulgaria (IGB), Bulgaria with Romania, and Romania with Moldova.

DEPA Commercial is also looking to broaden its gas trading activities with other Balkan countries ahead of the arrival of the Alexandroupoli FSRU, a floating LNG terminal now being developed in Greece’s northeast.

DEPA Commercial is a member of the five-member Gastrade consortium established by the Copelouzos group for the development and operation of the Alexandroupoli FSRU.

European electricity prices fall, demand down, RES output up

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European energy market price levels fell last week, influenced by lower demand as well as increased renewable energy output by wind and solar farms.

Energy markets across southeast Europe recorded noteworthy price reductions last week that averaged 17.44 percent, compared to a week earlier. Favorable weather conditions in this region led to a 60 percent increase in RES output, wind farms being the main contributor.

Serbia posted the biggest week-to-week price reduction in southeast Europe, a 21.34 percent drop in wholesale electricity prices, followed by Greece, where the week’s drop averaged 20.31 percent. Bulgaria and Romania both recorded average price reductions of 19.16 percent last week. Prices in Turkey have also been on a downward trajectory.

In central Europe, spot markets fell to weekly averages of less than 135 euros per MWh. The weekly average, for this region, was lowest in Germany, at 119.05 euros MWh, a 12.61 percent reduction compared to a week earlier as a result of lower demand and increased wind energy output.

Central Europe’s highest wholesale electricity prices last week were recorded in Switzerland, at 134.48 euros per MWh, despite an 11.22 percent reduction compared to a week earlier. France followed with a weekly average price of 131.07 euros per MWh, driven higher by power utility EDF strikes that reduced output at nuclear power plants, covering roughly 70 percent of the country’s energy mix.

PPC reaches agreement for €1.26bn buy of ENEL Romania

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Power utility PPC and Italy’s ENEL have signed a sale and purchase agreement, following two months of negotiations, for the latter’s sale of its Romanian subsidiary ENEL Romania to the Greek corporation at a price of 1.26 billion euros.

The sale is expected to be completed by September, as long as competition-related authorities approve the agreement.

PPC plans to finance its acquisition of ENEL Romania through a loan of 800 million euros and 460 million euros in company capital.

A move of national importance, PPC’s acquisition of ENEL Romania promises to offer entry into a now-developed Balkan market, establishing the Greek corporation as a strategic market player with access to a significant energy corridor running from Romania and across Bulgaria, all the way to Greece.

Through the deal, PPC will acquire over 130,000 kilometers in electricity distribution networks, double its RES capacity and also gain 3.2 million new customers.