Hydrogen, CCS development concerns expressed by officials

The country’s planned regulatory framework and financial support for development of the hydrogen sector and a CCS supply chain lack realism and flexibility, market players have protested.

These complaints were directed towards the Greek government and the European Commission as a Brussels task force and top-ranked energy ministry officials continue talks on pending issues ahead of Greece’s application for a fourth installment of Recovery and Resilience Facility funds.

Giorgos Alexopoulos, deputy CEO at Helleniq Energy, formerly named Hellenic Petroleum, told an annual RRF conference that EU policy on the regulatory framework for hydrogen development is flawed, making production of hydrogen almost impossible beyond 2030.

He attributed this concern to a green hydrogen regulation requiring RES participation in national grids to be at a level of over 90 percent.

“This requirement places in doubt green hydrogen production almost anywhere in Europe, except for the Nordic countries,” Alexopoulos supported, calling on the European Commission to show more flexibility on the matter, a stance that was backed by Johannes Luebking, head of the visiting RRF task force.

Failure to resolve the issue will delay the hydrogen sector’s development and its penetration of natural gas networks, Alexopoulos warned.

Greece has committed to having prepared a regulatory framework for hydrogen by June, one of the requirements set if the country Greece is to secure 795 million euros in financial support for energy projects through REPowerEU, bolstering the preceding RRF initiative.

Revisions needed by June for next installment of RRF funds

Recovery and Resilience Facility milestones set by the European Commission for Greece this year were the focus of discussions between deputy energy minister Alexandra Sdoukou and Brussels officials at a meeting in the Greek capital as the government prepares to submit its application for a fourth installment of RRF funds.

The European Commission’s RRF task force has held a series of meetings in Athens over the past few days with all ministries involved.

Greece’s list of projects seeking financial support through REPowerEU, bolstering the preceding RRF initiative, is worth a total of 795 million euros and includes Exikonomo, a 560 million-euro subsidy program for energy-efficiency upgrades of buildings; a 75 million-euro support plan for hydrogen and biomethane development; a further 75 million euros for a CCS supply chain; and 85 million euros for energy storage systems.

However, revisions, part of the milestones set for the second quarter of this year, will need to be finalized and ratified in Greek Parliament by June before these sums can be extended.

The RRF, a Brussels support initiative introduced during the pandemic, has now reached its midway mark and is scheduled to be completed by August, 2026. Greece is expected to submit its application for a fourth installment of RRF funds in April.

Produc-E Green program attracts considerable interest

The Produc-E Green support program, for which applicants face a nearing March 15 deadline, promises to create a domestic value chain in a number of energy-transition sectors, its heightened level of interest has indicated.

A total of 24 business plans have been submitted to the program for financial support in production activities concerning equipment and technologies playing key roles in the green economy.

More business plans are expected to be submitted to the program until this coming Friday’s deadline. Appraisals of applications are planned to commence immediately after this deadline has expired.

The 24 business plans submitted to date have budgets covering over 40 percent of the 199.7 million-euro sum made available through the support program, funded by the European Commission’s Recovery and Resilience Facility.

These plans include creating new production units, increasing production capacity of existing industries, and restructuring existing industries for switches to production of completely new products and equipment.

The support program has attracted business plans for investments in areas such as production of solar panels, wind turbines, photovoltaic cells, electric vehicle equipment and chargers, electric cables, as well as equipment for air-conditioning systems.

 

HAEE’s roundup of COP28 climate conference in Dubai

 

HAEE proudly and actively participated in #COP28 by powering up the future at Greece’s first-ever Pavilion, organizing the Side Event “Outlook of the Greek Energy Sector towards 2030”. We would like to thank our esteemed panel speakers, visionary leaders and guests who graced us with their presence or watched online and shared their insights on Greece’s accelerated transition away from fossil fuels, analyzed the latest reoriented policies, practices and investment priorities to deliver outcomes, protecting people, livelihoods, and ecosystems.

Let us share a roundup of what we witnessed on the ground at COP28:

On 13/12/2023, at the United Nations Climate Change Conference COP28 in Dubai, after intense overnight negotiations on whether the outcome would include a call to “phase down” or “phase out” fossil fuels, almost 200 nations reached an Agreement, to transition away from fossil fuels, while the negotiators set their commitments to triple renewables capacity and double energy efficiency by 2030, so as to achieve net zero by 2050.

COP28 adopted a decision on the outcome of the first global stocktake, which is a two-year process to assess progress on mitigation, adaptation and climate finance, and design the way forward. The parties recognised that, by 2030, global greenhouse gas (GHG) emissions have to be reduced by 43% below 1990 levels to restrict global warming to 1.5 °C, and committed to accelerating action in the current decade.

The Draft decision of COP28 – CMA.5 “Outcome of the first global stocktake” is now available here

An Agreement on the operationalisation of the Loss and Damage Fund was also decided. The fund will initially be hosted by the World Bank and It has received over US$700 million in pledges, with Germany and the United Arab Emirates offering US$100 million each .

The involved parties further adopted a framework adaptation, accompanied with 2030 targets for all parties to: conduct impact, vulnerability and risk assessments; adopt and implement adaptation plans and policy instruments; and set up monitoring, evaluation and learning systems for their national adaptation efforts.

After two weeks of intense discussions, the Deal that was reached in Dubai sends a strong statement to investors and decision-makers alike about the global community’s intention to move away from fossil fuels, something scientists say is the best chance to prevent a global warming disaster.

Let’s keep pushing boundaries and working towards a sustainable and brighter future!

Key uptakes of HAEE’s Side Event, at COP28

Let’s now deep dive into a micro-level and the insightful discussion we enjoyed on the 5th of December under the topic “Outlook of the Greek Energy Sector towards 2030” at HAEE’s Side Event that took place in the Greek Pavilion. The dynamic dialogue between esteemed speakers and visionary leaders was focused on the global, European, and Greek energy landscapes, the energy industry innovation, the impacts of Energy Transition and the ways of communicating the energy transition in a new climate narrative.

As Ms. Ditte Juul Jørgensen, Director General for Energy, European Commission, mentioned, the international community has prioritized the exponential deployment of renewables and energy efficiency improvements by 2030 to meet the collective goal of the Paris Agreement to keep warming well below 2°C and phase down or even phase out fossil fuels by mid-century. To that end, and after the initiation of the EU, 123 countries have signed the Global Renewables and Energy Efficiency Pledge, underlying the close link between the climate and energy objectives. As we step into the future, Greece has already re-introduced its goals and position to achieve or event to overcome EU’s climate obligations and emission target reductions, aiming to decarbonize its economy and transform itself into an energy hub in Southeastern Europe and the Western Balkans.

In the wake of the Russo-Ukrainian war and as the EU is decoupling from Russia’s energy supply, Greece is playing a critical role in securing Europe’s energy resilience through the Southern Gas Corridor, the TAP pipeline and other infrastructure projects such as the expansion of the Revithousa Terminal, the completion of the IGB pipeline and the commissioning of Alexandroupolis FSRU.

On top of that, as H.E. Geoffrey Pyatt, Assistant Secretary, Bureau of Energy Resources, U.S. Department of State, highlighted the overhaul of Alexandroupolis FSRU into a Western Balkans’, regional, emblematic Project. Greece’s connectivity moves in two strategic directions; one is to the Western Balkans, by helping the EU-aspiring countries to reduce their dependence on Russian energy and to the Mediterranean through the US, Greece, Cyprus, Israel and Egypt cooperation, to build a regional connection on gas, electricity through the interconnectors or even green hydrogen, aiming to build a future energy system which is not vulnerable to one supplier, which is economically competitive but also meet the climate targets.

Ms. Alexandra Sdoukou, Deputy Minister of Environment and Energy, Hellenic Republic confirmed that over the last years, Greece has transitioned into an exporting country of gas—mainly from the US— new interconnections are in progress, and RES have the potential to dominate the future energy mix, increasing the attractiveness of the Greek energy sector to potential investors, shaping sustainable business strategies and fostering a resilient future for the country.

Mr. Bertrand Piccard, Initiator and Chairman, Solarimpulse Foundation pointed out that the momentum to change the narrative of the economies’ and energy system’s decarbonization is now. There is a climate emergency, but also an economic emergency to switch to renewable energy and implement the necessary policy measures to save natural resources. The goal of authorities, academics, policy-makers and the relevant stakeholders has not to be the decarbonization with the sacrifice of the future generation, but to modernize the world, by making it efficient and profitable for the current generation. In that case, decarbonization will be the result of modernization.

Mr. Roman Kramarchuk, Head of Future Energy Analytics, S&P Global – Commodity Insights, commented that S&P energy markets’ “Green Rule Scenario” involves cooperation, cross-country support, and sharing of technologies as prerequisites, to achieve three times renewable. Market mechanisms such as PPA or corporate voluntary carbon markets are driving the change since corporate buyers are now willing to be able to demonstrate that they can operate sustainably and become policy-makers of their own right, supported by governments. This is a paradigm of multiple actors initiating for a common goal, the goal of achieving net-zero.

The political will exists, the technology exists, and the market mechanisms are ready to be implemented. Our focus should be on informing, motivating, engaging people and communities toward the energy transition.

HAEE is looking forward to next year’s event, COP29 which will take place in Baku, Azerbaijan, in November 2024 with the hope of a much more optimistic climate outlook!

Presenting our Chart of the Month Vol. 20, in the Side Event organized by the HAEE team and the Hellenic Ministry of Environment and Energy at the Greek Pavillion in COP28, is the epitome of ending the year on a high note! This special edition gives a more detailed outlook of the Greek energy market towards 2030 and 2050 through various topics encircling energy.

Based on the revised Greek NECP, key milestones and targets for the energy transition of the Greek energy market are presented across specific subtopics such as the future RES and energy storage developments, the Natural Gas landscape in Greece, the future outlook of the interconnections, as well as opportunities in innovative technologies like CCUS and Hydrogen production.

Special focus is placed on important topics that form the pillars of Greece’s strategy for the energy transition. One such topic is the development of offshore wind parks in the Aegean and Ionian Seas. The first such pilot project was recently announced in Alexandroupolis with capacity of 600 MW. Additionally, in Alexandroupolis, another interesting project, the FSRU terminal, is expected to become operational in 2024.

Finally, we explore the investment landscape of Greece which is thriving with a recently upgraded investment grade and forecasts of surpassing EU growth rates. Significant funding inflows via RRF and REPowerEU promise a bright future for the sector. Favorable conditions for both traditional and emerging renewable energy technologies, alongside pivotal infrastructure developments, position Greece as a key player in Europe‘s energy independence, with the overall ambition of transforming Greece into an energy hub for Europe.

Cypriot State’s entry into Great Sea Interconnector assured

The Cypriot State’s entry into Greek power grid operator IPTO’s Great Sea Interconnector subsidiary formed for the development of a Greece-Cyprus-Israel electricity interconnection is considered certain following positive high-level talks held yesterday in Cyprus.

An IPTO team led by CEO Manos Manousakis discussed the project with Cyprus’ president Nikos Christodoulides, joined by administration’s energy minister Giorgos Papanastasiou. The IPTO team also met with Cyprus’ regulatory authority for energy.

It is now considered just a matter of time before the finalized results of a feasibility study conducted on behalf of the Cypriot State are delivered. The study is expected to give the green light for a final investment decision.

The Cypriot State is expected to enter the Great Sea Interconnector subsidiary with an initial sum of 100 million euros from the Recovery and Resilience Facility (RRF).

IPTO is also expected to hold talks with two other prospective Great Sea Interconnector entrants, Israeli fund Aluma, and TAQA, the Abu Dhabi National Energy Company, for their participation in the project, budgeted at 1.9 billion euros, with 657 million euros secured through the Connecting Europe Facility.

The consortium could feature the three aforementioned participants along with IPTO, but it is still too early to tell if this could result in respective 25 percent stakes for all four.

Business PV and battery support program details soon

The energy ministry is finalizing the details of a support program for business-sector solar panel and battery installations, which are expected to be officially announced soon, most likely within the next few days, and definitely within the current month, energypress sources have informed.

The ministry had made an initial announcement on this PV support program for businesses months ago, but has yet to deliver its details.

Businesses will need to incorporate batteries into their PV installations in order to be eligible for the support program, the sources informed. Subsidies will be offered for both PVs and batteries through this support program, but the subsidy rate for batteries will be considerably greater, the sources added.

In the lead-up, ministry officials had intended to also offer subsidies to PVs without batteries, but this prospect is now off the table.

The support program, budgeted at 160 million euros, a sum to stem from the Recovery and Resilience Facility (RRF), will be implemented by TAIPED, the Greek privatization fund.

 

Brussels fully approves Greek list of REPowerEU projects

The European Commission has approved all energy projects included on a new list prepared by the energy ministry and submitted to Brussels for support through a revised REPowerEU program.

Brussels’ approval comes as a positive first step, but plenty of work lies ahead if the projects included on the REPowerEU list are to be actualized.

The REPowerEU program, proposed by the European Commission in response to the 2022 Russian invasion of Ukraine, aims to end the EU’s reliance on Russian fossil fuels before 2030.

Based on past experience, the energy ministry knows well how challenging it will be to coordinate various agencies in the public and private sectors so that a Resilience and Recovery Fund deadline, set for December 31, 2026, is met. The revised RePowerEU section, which includes projects budgeted at 795 million euros, is part of Greece’s RRF.

The available period of just over three years may seem like plenty of time, but given the complexity of the projects, it is not.

Greece’s 795 million-euro RePowerEU list is made up of 560 million euros for energy saving projects, 75 million euros for hydrogen and biomethane projects, 75 million euros for a Carbon Capture and Storage (CCS) supply chain, and 85 million euros for energy storage systems.

Market players seek maximum benefits from revised NECP

Market players have expressed a range of reservations and concerns about targets set in the country’s revised National Energy and Climate Plan, whose finalization is a step away, following consultation that was completed early this month.

The revised NECP is designed to provide market range and policy guidance rather than to offer precise, pinpointed figures, one inside source has told energypress.

For its part, the industrial sector described the cost of the green transition included in the NECP as “exorbitant”, while at the same time stressing the need for investment support and funding for new technologies, such as hydrogen and renewable gases.

Produc-E Green, a subsidy program budgeted at 199.7 million euros and funded through the Resilience and Recovery Fund (RRF), was launched in May to provide financial support for the development of innovative, green-energy facilities.

Subsidies offered through the Produc-E Green program can reach up to 70 percent of investment cost for domestic companies establishing facilities manufacturing products concerning electromobility, renewable energy and energy saving.

SEF, the Hellenic Association of Photovoltaic Companies, noted the NECP is generally headed in the right direction but proposed greater solar-energy participation in the energy mix and increased targets for battery storage.

The new NECP foresees reduced installed photovoltaic capacity in 2030, compared to an earlier draft of the plan in January, 2023, down to 13.4 GW from 14.1 GW.

ELETAEN, the Greek Wind Energy Association, in a letter to the energy ministry, has noted, among other things, that the target for onshore wind energy units is extremely low and not aligned with the market’s true potential.

Market conditions indicate that the country’s wind-energy capacity will total nearly 6.5 GW within the next three years, meaning that a 7.6-GW target set for 2030 would lead to a major slowdown from 2026 onwards, ELETAEN noted.

Environmental organizations have been highly critical of the revised NECP draft, describing it as a compromise favoring natural gas, compared to the plan’s previous draft.

 

Italy aiming for CO2 exports to Prinos facility by early 2030

Italy is focusing on efforts to export captured CO2 quantities for storage in Greece starting early next decade.

A joint carbon capture and storage (CCS) project involving Greece, Italy and France, also open to the participation of other countries in the future, was presented earlier this year in the neighboring country’s revised National Energy and Climate Plan, as part of the TEN-E regulation, offering guidelines for cross-border energy infrastructure.

Rome is seeking to channel CO2 quantities to Greece for storage at the depleted Prinos field. According to Italy’s NECP, facilities with a capacity of 3.6 million tons per year will be built in Italy to offer export potential to Greece from the first half of 2030.

As a next step, Italy needs to complete a regulatory framework for carbon capture, before establishing related bilateral contacts with Greece.

The underground Prinos storage facility is planned to be operational no sooner than three years from now, with an initial CO2 storage capacity of between 0.5 and 1 million tons, which could be boosted in the future.

The project has been included in the Recovery and Resilience Facility (RRF), while an application has also been submitted for EU Innovation Fund support.

Additional €795m REPowerEU funds sought for key projects

A request just submitted by Athens to the European Commission for amendments to the Resilience and Recovery Fund includes a new RePowerEU section worth an additional 795 million euros, intended for support to key projects. If approved by Brussels, some of these projects may commence development this year, with full-scale development planned for next year.

Indeed, the successful implementation of these projects will depend on the efficiency and agility of the Greek public administration. As projects progress to the next stages, the need for accelerated procedures and effective management will become increasingly crucial to meet critical milestones and secure funding.

Most of these additional funds, a 560 million-euro majority, are planned to be allocated to new rounds of subsidy support for energy efficiency upgrades of residential properties and businesses.

A 150-million sum is planned to be made available for pilot projects concerning biomethane production and, primarily, carbon capture and storage (CCS) initiatives.

The remaining amount, 85 million euros, is planned to be offered to investors for energy storage system installations.

Business sector PV subsidies set for early autumn launch

The energy ministry, moving fast to catch up on election-related delays to a PV subsidy support plan for businesses, aims to launch the program by early autumn, energypress sources have informed.

The support package, worth a total of 160 million euros, promises to offer a considerable number of local businesses the opportunity to utilize solar energy in order to reduce their energy cost and environmental footprint.

A draft of the subsidy plan’s guide for applicants is just about ready, the sources informed. The guide is expected to be announced within summer so that interested parties can prepare ahead of applications in autumn.

This subsidy plan has been on the cards since the re-elected government’s previous term but was interrupted by the general election’s two rounds, held in May and June.

The subsidy plan, to be financed through the Recovery and Resilience Facility (RRF), is expected to benefit an estimated 9,700 businesses. The energy ministry, heading the effort, aims to attract enterprises of all sizes, from small-scale businesses to larger, more energy-intensive industries. A first-come, first-served criterion is expected to apply.

Subsidized PVs will operate based on a zero feed-in system, meaning they will not be able to inject electricity into the grid. Investors, however, will have the option of combining PVs with batteries, to also be offered subsidy support.

 

Storage up to 8 GW needed for 27-GW green energy objective

Energy storage facility investments offering an overall capacity of between 4 and 8 GW will be needed by the end of the decade if Greece is to achieve a national RES portfolio target of 26 to 27 GW, according to studies linked to the National Energy and Climate Plan.

Securing a significant sum of support funds needed for these energy storage installations, to play a pivotal role in the country’s effort to achieve its renewable energy targets for 2030, stands as one of the main challenges faced by the energy ministry’s new leadership.

At present, it remains unclear how much funding support can be secured for this effort through the Recovery and Resilience Facility (RRF).

It is estimated that a sum in excess of one billion euros will need to be found to support investments for energy storage units offering between 4 to 6 GW.

The astronomical sum of support funds required means that new RES objectives in the NECP, once updated, must be kept within realistic proportions, market officials have pointed out.

A related study will need to be conducted to determine the extent of support funds that will be available through auctions for energy storage development, while also specifying any alternative funding sources, the officials added.

Next mixed RES auction planned for September

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

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

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

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

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

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

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

Auction for standalone battery aid announced by June 15

RAAEY, the Regulatory Authority for Waste, Energy and Water, is moving fast in its preparations for an inaugural auction to provide investment and operational support for standalone batteries as part of a wider plan offering a total capacity of 400 MW for this technology.

According to sources, the authority aims to announce a first auction by June 15, with bids to be submitted by investors three weeks later, in early July, as has been previously reported by energypress. The caretaker government’s energy minister Pantelis Kapros discussed the matter yesterday with RAAEY authorities.

Projects whose bids are deemed eligible will qualify for the investment and operational support, ranked in ascending order based on annual allowance amounts claimed, until all 400 MW being auctioned has been exhausted.

A shortlist of successful projects is expected to be finalized in early August, before contracts are signed.

The overall procedure is now moving ahead on a far tighter schedule than originally planned as a result of Recovery and Resilience Facility (RRF) time constraints. This facility will offer successful bidders a sum of 200 million euros in subsidy support for their standalone battery installations.

Standalone batteries auction sooner; RRF time constraints

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

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

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

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

Hefty REPowerEU proportion for standalone batteries

The energy ministry is earmarking a significant share of grants Greece stands to receive through REPowerEU to further increase the first wave of standalone batteries that will be installed and also to support the country’s early-bird ventures in the renewable gas sector.

From the outset, the energy ministry’s intention has been to use part of these REPowerEU funds, totaling 769 million euros, to further promote energy storage. However, the final amount to be allocated has been somewhat reduced to 90 million euros, compared to 100 million originally envisaged, an adjustment made to ensure sufficient funds remain for other actions.

The REPowerEU financial injection promises to boost by about one-third a sum of approximately 200 million euros secured through the Recovery and Resilience Facility (RRF) as investment support for standalone batteries.

This means that, despite the rising cost of batteries in recent months, the increased sum will be able to support the development of a portfolio of projects with a total capacity of over 1 GW.

The European Commission still needs to approve, following consultation, the REPowerEU list of actions planned by Greece. At this stage, it is believed Brussels will not raise objections as the actions planned by Greece are totally aligned with priorities set at a European level for projects that promise to accelerate the energy transition ending the continent’s reliance on Russian fossil fuels.

 

Fund not yet chosen for roof-mounted solar panel subsidies

Despite a series of government announcements in recent months declaring the imminent arrival of a subsidy support program for roof-mounted solar panel installations, the finance ministry has yet to decide on a fund to provide the required sum, which has been boosted from 200 million euros to 230 million euros.

A month has elapsed since the government delivered a guide offering details of the support program, but its launch is being postponed from week to week, despite obvious political benefits the government stands to gain ahead of the May 21 general elections.

It remains unclear if the finance ministry, currently dealing with other priorities, will opt to fund the support program via the Recovery and Resilience Facility (RRF), the National Strategic Reference Framework (NSRF), some other source, or a combination of sources.

The government increased the value of the support program for roof-mounted solar panel installations to 230 million euros, from an initial amount of 200 million euros, as a result of the strong interested it has generated.

This increased sum promises to increase the number of eligible parties from 30,000 to between 33,000 and 35,000 as well as the resulting total capacity to be installed from 150 MW to 170 MW.

 

Storage unit permit processing inconsistencies causing issues

Investors seeking to make progress with environmental permit procedures for standalone batteries ahead of an inaugural auction that will offer investment and functional support to energy storage units find themselves facing differing processing speeds at various licensing authorities around the country.

These delays have been largely attributed to the fact that licensing authorities have been tasked with granting licenses for energy storage units for the first time, a newness causing some hesitancy.

The problem is even more acute for energy storage projects with capacities of up to 100 MW as they also require approval from regional authorities, despite an energy ministry circular specifying that an environmental report is sufficient. In some cases, additional information and supporting documents are being requested by certain regional authorities.

Although the issue has generally been straightened out in recent months, differing processing speeds for environmental permit applications remain.

Power grid operator IPTO has received applications to connect standalone batteries representing a total capacity of 5,340 MW, a pool regarded as sufficient for the inaugural auction offering investment support to go ahead.

The differing licensing speeds for energy storage units are resulting in a greater accumulation of such projects in areas where authorities are less demanding.

If energy storage projects end up being excluded from auctions as a result of not possessing environmental permits, then the objective of an even geographical spread of such projects may not be achieved.

A sum of 200 million euros stemming from the Recovery and Resilience Facility (RRF) will be offered as investment support for energy storage units under the condition that an inaugural auction is staged by late June.

This essentially means that RAAEY, the Regulatory Authority for Waste, Energy and Water, will need to officially announce a first auction by mid-May, an initiative requiring a related ministerial decision.

 

IPTO moves fast to issue 4,250 MW in RES connection offers

Power grid operator IPTO has issued connection offers totaling a capacity of 4,250 MW for RES projects seeking grid space since the arrival of a recent ministerial decision signed last August and revised in late January to shape the procedure’s details, including its fast-track priority system.

The operator has also received a substantial number of applications for a first wave of standalone batteries representing a total capacity of 5,340 MW. These applications have already received environmental permit, meaning the turnout for an upcoming investment support program expected to be staged by the end of June will be considerable.

A ministerial decision will need to be issued this month so that a first auction may be staged within Recovery and Resilience Facility (RRF) fund deadlines.

Late-June auction for energy storage investment support

The energy ministry, pushing to meet EU Recovery and Resilience Facility (RRF) deadlines to maximize gains, including 200 million euros available as investment support for new standalone battery installations offering a total capacity of 900 MW, plans to stage an inaugural auction for this energy-storage technology in late June.

As part of the effort, the ministry is working to deliver a ministerial decision specifying all details concerning the auction by mid-April, which would pave the way for RAE, the Regulatory Authority for Energy, to announce a related auction by the end of the month or early in May, giving prospective bidders time to prepare.

At this stage, it appears the investment support for 900 MW in standalone battery installations will be offered over two auctions, each offering support for roughly 450 MW. Officials aim to schedule the second auction for a few months after the first and definitely within 2023.

The forthcoming ministerial decision’s auction specifications will include technical details. RES projects to be eligible for the auction are expected to face 100-MW capacity limits, securing the participation of a sufficient number of projects located at various parts of the grid.

Also, RES projects incorporating energy storage systems offering durations of two and four hours will be offered priority, sources informed.

 

Final touches added to draft bill for RAE’s expanded role

Final touches are now being added to a draft bill concerning the new administrative structure at RAE, the Regulatory Authority for Energy, set to assume expanded executive powers also giving the authority water and waste management duties.

The authority will be renamed RAAEY, or the Regulatory Authority for Waste, Energy and Water. Its expanded role will facilitate the country’s eligibility for EU Recovery and Resilience Facility (RRF) funds.

Three new divisions will be created as part of the authority’s expansion, each supervising its respective sector. These divisions, all of which will remain under the control of the expanded RAAEY authority, will each consist of a vice chairman and three or – based on a latest proposal – four committee members.

Also, a main board to be headed by the RAAEY president will include the three vice presidents of each division as well as their committee members.

RAE’s current president Athanasios Dagoumas will hold the vice chairman’s position of the energy division during the authority’s transition from RAE to RAAEY. He is also a candidate for RAAEY’s presidency, a political decision to be decided on at a latter date.

Also, RAE’s current board members will be given the opportunity to occupy posts at either the water or waste management divisions.

Expanded RAE role to bring about administrative changes

A prospective expansion of the executive powers at RAE, the Regulatory Authority for Energy, to result in the addition of water and waste management duties, will bring about administrative changes at the authority, which will be renamed RAAEY, or the Regulatory Authority for Waste, Energy and Water.

Three new divisions will be created as part of the authority’s expansion, each supervising its respective sector. These divisions, all under the control of the expanded authority, will each consist of a vice chairman and three members.

Also, a main board will be comprised of 13 members, chaired by the RAAEY president.

The energy ministry plans to soon stage a consultation procedure for a draft bill concerning the authority’s expanded role.

RAE’s expanded role will facilitate the country’s eligibility for EU Recovery and Resilience Facility (RRF) funds.

Subsidy program for PV net metering systems in January

The energy ministry is working towards launching, in January, a subsidy program for small-scale solar energy systems to be installed by households, farmers and small-sized enterprises for net-metering purposes as a means of reducing their energy costs.

This subsidy program was announced by Prime Minister Kyriakos Mitsotakis at September’s annual Thessaloniki International Fair.

It is expected to offer subsidies for solar energy panel installations to at least 100,000 households, 75,000 small enterprises and 75,000 farmers.

The subsidy funds to be provided for households and farmers are expected to stem from the National Strategic Reference Framework (NSRF) and the REPowerEU program, introduced by the European Commission to reduce Europe’s reliance on Russian energy sources. The government is expected to provide subsidies for small businesses through the Recovery and Resilience Facility.

The initiative is seen subsidizing up to 60 percent of solar energy system installations combining energy storage. Subsidies for simpler systems are expected to cover at least 30 percent of their cost.

Investment interest high ahead of energy storage auctions

The energy ministry is aiming to stage an inaugural energy storage auction within the first quarter of 2023. Investors are expressing tremendous interest in energy storage.

The auction will offer energy storage tariffs – for every MWh stored – worth a total of 200 million euros, to be made available through the Recovery and Resilience Facility over the fist ten-year period of investments.

Participants submitting the lowest bids will qualify for this RRF amount as support for their energy storage investments.

Over the next few months, government officials will need to complete work on a regulatory framework concerning energy storage, and, in addition, investors must push ahead with their project licensing procedures to become eligible for the upcoming first auction.

Tariffs for an overall capacity of approximately 450 MW are expected to be offered at the first energy storage auction, while an extra 450-MW capacity is planned to be made available to investors at a follow-up auction in the second quarter of 2023.

The projects of auction participants are expected to greatly exceed the total capacity of 900 MW to be offered.

HEDNO plans 800-MW network boost to facilitate RES projects

Distribution network operator DEDDIE/HEDNO is planning a series of significant network upgrades to facilitate new RES project additions to the grid through the availability of an additional 800-MW capacity over the next few years.

Many of these network upgrades, set to commence, are investments that will be co-funded by Greece 2.0, the National Recovery and Resilience Facility.

DEDDIE/HEDNO stands to receive 30 million euros from the RRF for capacity upgrades at selected medium and high-voltage substations around the country, either through transformer additions or full replacements.

Many of the operator’s prospective network upgrades are expected to be completed over the next 12 months, energypress sources have informed. All operator upgrades inducted into the RRF are planned to be completed by the fourth quarter of 2025.

The capacity of substations in the Peloponnese and Epirus regions is planned to be boosted by 250 megavolt-amperes, the wider Athens area will get a 100-MVA boost, substations in central Greece are expected to receive a 200-MVA lift, while substations in the country’s Macedonia and Thrace regions are headed for a 250-MVA capacity boost.

Further support funds sought, higher energy prices feared

The government is frantically searching for additional funds to keep supporting its energy subsidies program, fearing a further reduction in Russian gas and oil supplies to Europe in autumn and even higher fuel, natural gas and electricity prices.

Athens’ current support package for households and businesses, worth 3.2 billion euros, of which 1.1 billion has been drawn from the budget, will not suffice should energy prices continue rising.

The government is looking to make the most of all available European funding programs, such as the National Strategic Reference Framework (NSRF), the Recovery and Resilience Facility (RRF), and REPowerEU, the recent plan established by the European Commission to end the EU’s reliance on Russian fossil fuels.

Athens is examining whether support from these sources, combined with national budget money, would be enough to offer consumers ongoing protection from further energy price rises.

According to a worst-case scenario, the country’s overall electricity cost this year will reach between 14 and 15 billion euros, triple the pre-crisis and war level of 5 billion euros.

Also, every 10 euro rise in the price of natural gas decreases Greece’s GDP by 500 to 600 million euros and requires 300 to 400 billion euros in budget money for offsetting consequent electricity price increases.