New RES auction, for small scale wind turbine installations, in ’18

The energy ministry plans to stage a RES auction in 2018 offering capacities for small scale wind turbine installations of up to 60 MW, a neglected sub-sector, energypress sources have informed.

Though the ministry is currently focused on ensuring all rolls smoothly with wind and solar energy RES auctions already planned for July 2, it also intends to prepare an amendment for a 2010 law providing fixed tariffs for small scale wind turbines so that system absorption tariffs for this category may also be determined through auctions.

A ministerial decision will then need to be issued determining quantities and upper price limits for auctions concerning the small scale wind turbines sector. Quantities are not seen exceeding 20 MW while pundits believe auction upper-limit starting prices between 15 and 17 euros per KWh should be expected.

Another crucial detail will be the maturity level of small scale wind turbine projects to be expected from investors as a criterion for participation in auctions.

It is believed the government does not intend to offer high prices to small scale wind turbine producers for their output and, as a result, burden consumers, because this technology, when applied on a larger scale, is capable of producing lower-cost electricity.

Though details on the public’s level of interest for small scale wind turbine installations are conflicting, it is believed that over 1,000 applications have been submitted to DEDDIE/HEDNO, the Electricity Distribution Network Operator.

As for the upcoming RES auctions on July 2, they have been split into three categories. One will concern photovoltaic installations with capacities less than 1 MW. Another will offer photovoltaic installations with capacities of between 1 and 20 MW. A third auction will cater to wind energy installations between 3 and 50 MW.

 

 

 

 

RES auction plan set to be submitted to European Commission

A plan prepared by the energy ministry detailing auction procedures for renewable energy installations, based on recommendations by RAE, the Regulatory Authority for Energy, will be submitted to the European Commission for approval within the next few days, energypress sources have informed.

Greek authorities expect the European Commission to respond by delivering a series of approvals. One will enable the staging of separate auctions, divided up as sub-categories of various RES technologies.

Another approval should satisfy an intention by Greek authorities to exempt wind-energy facilities with capacities of less than 3 MW, small hydropower plants and other small-scale facilities from auctions.

Once this approval stage has been completed, the energy ministry will issue a ministerial decision containing various auction details, including the number of rounds and terms.

According to sources, authorities are considering the prospect of staging separate auctions for wind-energy capacities in northwestern Greece, central Greece and eastern Greece, as the wind conditions differ in these regions. This approach is expected to offer greater stability to the network and more secure forecasts of production levels.

The auctions will primarily concern solar and wind energy capacities, the proposals made by RAE have indicated.

New framework for small wind turbines almost ready

New legal framework to encourage the installation of small wind turbines in Greece is just about ready to be forwarded for a public consultation procedure as a committee assembled by the energy ministry to work on the framework’s establishment delivered its results to the ministry last week.

A ministerial decision will need to be signed in order to activate a development program concerning small wind turbines with capacities of up to 50 KW. Provisions for the use of such microgeneration facilities had been included in a law ratified back in 2013 but the effort never really got off the ground.

According to energypress sources, the committee’s findings include provisions for the installation of two types of small wind turbines, one concerning small systems with capacities of between 2 and 3 KW, the other for more powerful systems with capacities of up to 50 KW.

The smaller systems may be installed on or near buildings and used for self-production and net metering purposes, along the lines of provisions made available for household photovoltaic facilities.

Rights for the installation of larger-category systems will need to be gained through tenders, in accordance with regulations established for bigger wind energy parks with capacities of over 6 MW.

Tenders for the larger category of small wind turbines will be staged locally, not nationally, to facilitate certain areas whose networks require electricity generation boosts.

Auctions determining tariff levels at which electricity production will be sold by small-scale producers are planned. Pricing limits will be set by the energy ministry, not the committee formed to promote the use of small wind turbines.

The government is not expected to offer elevated tariffs for small-scale production as this technology, when applied on a grander scale, can generate electricity at a lower cost.

Small wind turbines are expected to play a complementary role facilitating net metering and network capacity inadequacies.

Net metering enables electricity consumers who generate their own power from an eligible on-site facility and deliver it to local distribution facilities to offset the electric energy provided by the utility during an applicable billing period.

The special committee’s study covers aspects such as small wind turbine technical standards that need to be met as well as regional network characteristics required for the installation of such systems.

Investments in the sector have been flat in recent years.