Spain

Concerns over Greek auction model for standalone batteries

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The Greek auction model for standalone batteries is continuing to raise concerns within the business community ahead of a forthcoming second auction.

Market skepticism is focused on the possibility of a recurrence of low bids at levels that would raise questions about the viability of projects and the very nature of the Greek model, which features aid for both longer-term capital expenditure and operating expenses.

The main debate, both in Greece and beyond, about the Greek auction model for standalone batteries is focused on this provision of investment and operational support for projects.

Critics of the Greek model contend that aid for operating expenses is not in line with free-market logic and inevitably leads to market distortion.

A key concern for the Greek auction model, given low bids submitted in the first auction, is whether projects can be viable under the current costs of storage and battery technology, its critics are pointing out.

Many market players have expressed preference for the Spanish model, whose aid is limited to capital expenditure and project revenues are generated purely through market participation, as a more appropriate model.

This offers projects incentive to fully integrate into the market and optimize their revenues, market players have noted.

As a result, projects would be developed faster and also have better viability rates, supporters of the Spanish model note.

Plant fencing around solar farms to be made compulsory

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A prospective legislative revision forwarded by the energy ministry for consultation will make plant fencing around the perimeters of all solar energy farms, existing and prospective, compulsory, the aim being to reduce the environmental impact and visual disturbance caused by such project installations.

The revision is included in a draft bill covering spatial and urban planning matters concerning renewables.

However, it remains questionable whether tree fencing around the perimeters of solar energy farms could work in all cases.

Last summer, SEF/HELAPCO, the Hellenic Association of Photovoltaic Companies, presented a report contending that plant fencing solutions are not always viable. It would make more sense to fence off sections of solar energy farms, while not all tree types, even native species, can prosper as a result of radiation, the association highlighted. Also, for safety reasons, planting should not obstruct alarm systems of solar energy farms, it noted.

According to sector experts, a similar initiative taken by Spain several years ago demonstrated low sustainability rates of native Mediterranean plant species serving as solar farm fencing. Existing vegetation within properties hosting PVs were exceptions, the experts pointed out.

Firm Spanish interest for more RES investments in Greece

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Spanish renewable energy companies have expressed firm interest for further investments in the Greek market, making clear their intentions at an investment-promoting event held just days ago in Madrid and co-organized by Enterprise Greece, the official investment and trade promotion agency of the Greek State, and the Greek Embassy, with support from the Madrid Chamber of Commerce and the Spanish-Hellenic Chamber of Commerce.

Highlighting the event’s resounding success, officials of Enterprise Greece and the Greek Finance Ministry held direct talks with representatives of seven Spanish groups and agencies.

All in all, roughly 70 Spanish enterprises and institutional agencies took part in the conference.

Carlos Piñar Celestino, CEO of the Spanish group Elmya, one of the event’s speakers, offered a positive account of his company’s investment experience and success in Greece.

Both the Elmya chief executive and Luis Picas Asmarats, Investment Director of Hotel Investment Partners Group, another of the conference participants, spoke highly of Greece’s investment environment, the constructive role of Enterprise Greece as a one-stop-shop, and their cooperation with Greek government agencies.

The Office of Economic and Commercial Affairs of the Greek Embassy in Madrid informed that executives of several Spanish companies expressed interest for further talks in order to push ahead with plans regarding their investment prospects in Greece.

Also taking part, Nikos Stamos, Enterprise Greece’s Director of Investment Attraction in Energy, Environment and Services, dedicated a large part of his speech to the RES sector, as well as the food and beverages industry.

Nikos Sergis, Director of the Public-Private Partnerships Unit of the Ministry of Finance, spoke extensively on the institutional framework of PPPs and investment opportunities that exist in Greece for public-private partnership projects, mainly infrastructure projects.

 

Significant emission cuts from domestic industry, SEV notes

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Greece’s industrial sector is now responsible for 47.5 percent of the country’s total carbon emissions, down from 59 percent in 2010, with plans for more reductions further ahead, SEV, the Hellenic Association of Industrialists, has noted in a special report.

Greek industry has reduced greenhouse gas emissions by 43 percent over the last 10 years, the sixth largest reduction in the EU, SEV highlighted in its report.

Furthermore, the sector’s share of energy consumption is lower than in most European countries, accounting for only 17 percent of consumption, the SEV report noted.

Renewable energy facilities installed by domestic industrial and energy groups are playing a key role in Greece’s transition to cleaner forms of energy, according to the association.

Greek industry is supporting European goals for climate neutrality by 2050 by investing in renewable energy sources and reducing carbon emissions, while also improving efficiency of resource utilization, SEV noted.

However, high energy costs, environmental-impact limitations and a lack of investment incentives in the EU, putting European firms at a disadvantage compared to US competitors, are tempting many European enterprises, including Greek, especially energy-intensive companies, to consider moving out of the continent, a development that threatens to bring about a new wave of deindustrialization, SEV warned in its report.

Investments in green or digital technologies, as well as in production of crucial raw materials, to end a reliance on non-EU countries, are needed, the report noted.

Though energy costs have fallen considerably since the summer of 2022, they remain high and stand as one of the biggest challenges faced by the industrial sector, SEV pointed out.

Energy costs in Greece are among the highest in the EU, SEV stressed. Last August, wholesale electricity in Greece was priced at 109.33 euros per MWh, compared to 94.41 euros per MWh in Germany, 90.96 euros per MWh in France, 96.09 euros per MWh in Spain, and 97.91 euros per MWh in Portugal.

SEV, in its report, presented four proposals aimed at protecting the competitiveness of Greek industry.

It called for the implementation of energy cost-restricting mechanisms and tools; reinforcement and expansion of electricity transmission networks, as well as development of new networks that could establish Greece as an energy hub in the wider east Mediterranean; sufficient development of energy networks to support RES facilities in their production of electricity for the industrial sector; and financial support for green-transition investments in new technologies such as CO2 capture and storage.

 

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.

 

ESIAPE: IPTO’s RES grid injection cut plan deviates from EU rules

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A set of rules proposed by power grid operator IPTO on RES unit injection cuts concerning the Greek electricity system deviates from European regulations and practices followed in other European countries, according to ESIAPE, the Greek Association of Renewable Energy Source Electricity Producers.

Expressing its views in related consultation staged by RAAEY, the Regulatory Authority for Waste, Energy and Water, ESIAPE noted that Greece’s regulatory framework does not provide for any compensation when RES unit grid injection cuts are ordered, which runs contrary to regulations and practices followed by other European countries.

The current regulatory framework in Greece creates conditions that lead to potential distortions of competition, ESIAPE noted.

In its intervention, ESIAPE offered, as a comparison, detailed presentations of practices followed by five other European countries – France, Germany, UK, Spain and Italy – all offering compensation for RES unit grid injection cuts, when requested by authorities, to prevent grid overloading.

Natural gas price spike prompts new market alert

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News that the Netherlands intends to soon stop production at Groningen, one of Europe’s largest gas fields, as a result of earthquake-related risks, pushed gas prices up by 28 percent yesterday, not surprising, as Groningen is a key gas source for countries in Europe’s west.

The development has made even more urgent the intention of Greece and Spain, along with other EU member states, to reestablish a common front as protection against the outbreak of any new energy crisis.

This group plans to request the continuation of a windfall earnings recovery mechanism in the wholesale electricity market when EU energy ministers meet on Monday to discuss a new structure for the bloc’s energy market.

The Dutch TTF benchmark has risen 113 percent over the past 15 days, from 23 euros per MWh to 49 euros per MWh yesterday, before easing off to 39 euros per MWh.

A temporary disruption of operations at some of Norway’s gas fields has unsettled European markets. Though production at these Norwegian gas fields will soon be normalized, the Netherlands have yet to reach a final decision on the country’s Groningen gas field. However, it is expected to continue producing should a new energy crisis hit Europe or if its upcoming winter is a cold one.

At this stage, ambiguity prevails as it remains unclear if Europe’s natural gas market finds itself at the onset of a new upward trajectory.

A sudden increase in LNG demand in Asia as a result of China’s post-pandemic return to full production is another major concern for European energy market players. Such a development promises to escalate prices.

 

Spain, Greece want windfall recovery mechanism continued

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Greece and Spain, part of a group of EU member states seeking to reestablish a common front against any new energy crisis, intend to call for the continuation of a windfall earnings recovery mechanism in the wholesale electricity market when EU energy ministers meet on June 19 to discuss a new structure for the bloc’s energy market.

The European Commission last year adopted a windfall earnings recovery mechanism that was essentially based on a Greek model before it was applied by member states with some variation.

The Spanish government and the country’s energy minister Teresa Ribera want a recovery mechanism included in the European electricity market’s new structure and activated whenever any price crisis breaks out.

The proposal has already received support from Greece, to be represented at next Tuesday’s meeting by the interim government’s energy minister Pantelis Kapros, and a number of other EU member states.

This group of member states is now working on establishing a united stance on the recovery mechanism ahead of next week’s meeting.

It remains to be seen if the alliance will be strong enough to convince Brussels to include the mechanism in its plan for the new market structure.

Some EU member states remain concerned about the possibility of a new energy crisis despite EU gas storage facilities being 60 percent full and a  continual inflow of LNG at European ports.

 

 

Greek onshore wind energy generation tops European output

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Onshore wind energy generation in Greece yesterday was the biggest recorded in Europe, capturing a 55 percent share of the country’s energy mix, according to data provided by the WindEurope association on wind energy yields across the continent.

Greece was followed by Spain, where onshore wind energy production yesterday captured 49 percent of the country’s energy mix, and Portugal, whose wind-energy share was 35 percent.

The increased wind energy generation in Greece helped lower the country’s wholesale electricity price, at 58.44 euros per MWh today. The price level is below 10 euros per MWh for half the day, ELETAEN, the Greek Wind Energy Association, noted in an announcement.

This lower wholesale electricity price directly benefits consumers and the Greek economy, the association added.

Energy crisis gap bridging the main aim at today’s EU summit

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The EU’s 27 leaders participating at today’s EU summit will strive to heal divisions that have created blocs within Europe for energy crisis solutions rather than seek finalized solutions on how price levels could de-escalate.

The EU-27 will be asked to agree to European Commission proposals announced yesterday. They include collective natural gas orders for reinforced bargaining power and prevention of bidding wars by fellow EU member states for LNG quantities, as well as a supplementary gas benchmark offering a more accurate reflection of market conditions.

A Brussels request concerning a temporary price cap on gas used for electricity generation, a strategy already adopted by Spain and Portugal, is expected to be contested by the EU leaders.

Brussels considers the proposal for a price cap on gas used for electricity production should be further examined, judging by European Commission president Ursula von der Leyen’s comments in European Parliament yesterday.

France, using minimal amounts of gas for electricity generation as a result of its considerable nuclear capacity, has expressed support for such a plan. Germany accepts it but Greece, Italy, Belgium and other EU member states object as a result of the significant fiscal cost entailed.

Some EU members favoring a general price cap on gas, including Greece and, more recently, the Netherlands, are expected to remain adamant on their  preferred approach at today’s summit.

Germany strongly opposes a general price cap on gas, fearing it will repel gas suppliers and push up prices as a result of reduced supply and higher demand.

EU energy ministers agreement in Prague today highly unlikely

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Today’s extraordinary meeting of EU energy ministers in Prague, their third informal session since early September, appears unlikely to produce agreements on unresolved issues, including a decision for a temporary price cap on gas.

Participants have remained subdued ahead of this latest session, which is indicative of the lack of progress. The feared stagnancy is believed to have prompted officials to seriously consider a fourth extraordinary meeting of EU energy ministers – since early September – ahead of the next EU summit, scheduled for October 20.

This all essentially means that serious energy-crisis disagreements continue to divide the EU’s 27 member states, despite the fact that many leaders claimed positive steps were taken at last Friday’s informal summit.

The seemingly fruitless situation has been confirmed by sources associated with European Commissioner for Energy Kadri Simson and further backed by the absence of any announcement.

Disagreement over an adjustable price cap on gas is the main dispute. The proposal will be further discussed today by the EU’s energy ministers. Greece and four other EU member states, Belgium, Italy, Poland and Spain, are the most supportive members of the plan.

 

Political agreement sought for gas price cap, eyes on Germany

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Though no gas price-cap decision is expected at today’s informal EU meeting of heads of state, participants will be expected to establish the basis for a political agreement at the European Council meeting on October 20.

All eyes are on Germany following a significant step taken by the European Commission to adopt a proposal forwarded by 15 EU member states supporting a price cap on gas. The German government now appears to the considering the proposal but an agreement is not yet guaranteed.

If Berlin is to accept the gas price cap proposal, assurances will be needed on how the risk of LNG shipments straying to Asian markets – where buyers appear willing to offer whatever sums are necessary to secure shipments, instead of staying in Europe – may be eliminated.

Another issue the German government would want addressed to offer its consent concerns how a rise in gas demand, as a result of lower prices, can be prevented.

Disagreement between Berlin and other EU member states on a gas price cap has now somewhat softened. The matter is gradually shifting away from the political sphere and closer to market reality.

Greece, Belgium, Italy, Poland and Spain, the five EU member states most supportive of a price cap on natural gas, represent the nucleus of the 15 member states calling for a gas price cap and are working feverishly on a flexible proposal to be forwarded to the European Commission as soon as possible.

Germany considering price cap, gas usage drop a condition

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The German government now appears to be considering an EU proposal for a price cap on gas ahead of tomorrow’s informal EU meeting of heads of state, but Berlin’s acceptance of such an initiative would be conditional, requiring a compulsory and significant reduction in gas consumption levels throughout the EU.

Germany’s Vice Chancellor Robert Habeck, who heads the country’s energy portfolio, set this condition during a meeting yesterday with the energy ministers of Greece, Belgium, Italy, Poland and Spain, representing the five EU member states most supportive of a price cap on natural gas.

The European Commission’s recent proposal for an optional reduction in gas consumption would need to be made compulsory if Berlin is to accept a price cap on gas, Habeck told the five energy ministers, according to sources.

Despite Germany’s softer stance, work is still needed if a price cap on gas is to be implemented. An official decision cannot be reached at tomorrow’s EU meeting of heads of state as it is an informal session.

It will be followed by another informal meeting in Prague next Tuesday between the EU’s energy ministers.

Brussels is also working on the establishment of a new benchmark for natural gas that better reflects Europe’s new energy reality in which LNG, not pipeline gas, is now the dominant gas source.

Firmest gas price cap backers in talks with German minister

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The energy ministers of Greece, Belgium, Italy, Poland and Spain, representing the five EU member states most supportive of a price cap on natural gas, are scheduled to stage a teleconference with their German counterpart Robert Habeck today to analyze their price-cap proposal in an effort to overcome Germany’s resistance.

Berlin’s opposition to a European gas price cap and unilateral announcement of a 200 billion-euro national package for the energy crisis have disappointed many European governments, going into an informal EU meeting of heads of state this Friday with little hope of bold decisions.

EU member states are generally feeling increasingly frustrated by Germany’s refusal to back a collective European decision for the energy crisis, a stance Berlin will not be able to keep justifying.

According to sources, the group of five’s gas price cap proposal is set at a level that would ensure gas suppliers do not turn their backs on Europe and send their tankers to markets in Asia, where demand is set to rise in the lead-up to winter.

To guarantee supply to Europe, the continent’s price cap level will need to be set slightly higher than price levels at Asian energy exchanges.

 

Windfall tax for oil and gas firms, government decides

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Windfall profits earned in 2022 by petroleum companies, through their refineries, as well as by natural gas wholesalers, will be subject to an extraordinary solidarity tax, the government has decided, energypress sources have informed.

The money to be collected through this extraordinary tax will go towards the Energy Transition Fund to support the government’s energy subsidies offered to households and businesses.

The government’s plan to move ahead with this extraordinary tax is linked to a probable European-wide solidarity tax on windfall profits earned by fossil fuel companies.

The Greek plan will be shaped along the lines of a windfall tax model imposed on electricity producers.

This new windfall tax on oil and gas companies was discussed at last Friday’s emergency meeting of EU energy ministers. It was supported by Greek energy minister Kostas Skrekas, as well as his German and Spanish counterparts.

The Greek government appears determined to implement the windfall tax on oil and gas companies even if it fails to receive EU approval. Athens recently imposed a 90 percent windfall tax on electricity producers without EU approval.

 

 

Brussels looks to combine cap on gas for power, windfall tax

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The European Commission, in search for solutions to ease the effects of the energy crisis on the EU, is likely to soon introduce a cap on gas intended for electricity generation, based on a model implemented in Spain and Portugal, as well as a windfall tax on extraordinary gains achieved by vertically integrated electricity producers, an initiative already taken by Greece.

Brussels authorities are also looking to greatly revise the structure of the target model and possibly introduce a common European funding tool, but these two plans are expected to take longer to prepare and implement.

Officials of a number of EU member states have contacted Greek authorities to enquire about details concerning the windfall tax, withholding excess revenues of electricity producers in the domestic wholesale market through a temporary mechanism that results in a partial return of day-ahead market revenues.

Member states are mostly interested to know if this mechanism has led to any side effects in Greece’s day-ahead market.

Many member state officials find the Greek model appealing as it results in an immediate disconnection of electricity prices from the price of natural gas without the need for any target model changes.

Brussels report highlights EU’s alarming energy cost increase

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The cost of wholesale electricity in the EU rose by over 400 percent in the first quarter of 2022, compared to the equivalent period a year earlier, while gas imports during this period cost the EU a total of 78 billion euros, of which 27 billion euros concerned Russian natural gas quantities, a report published by the European Commission’s Directorate-General for Energy has shown.

Households and businesses across the continent have faced unprecedented natural gas cost increases following Russia’s invasion of Ukraine in February. Consequently, the TTF index skyrocketed to peak at 212 euros per MWh on March 7.

The EU adopted a series of sanctions primarily concerning the energy sector as a result of the Russian attack, the report noted. Also, in May, the EU approved its REPower EU plan, designed to gradually end Europe’s reliance on Russian fossil fuels, bolster the continent’s energy security, and support the green-energy transition.

Imports of Russian gas fell by 71 percent via Belarus and 41 percent via Ukraine in the first quarter of 2022, compared to the equivalent period a year earlier. Gas inflow from the Nord Stream pipeline linking Russia with Germany fell by 60 percent in early June.

Europe’s wholesale electricity price averaged 201 euros per MWh in the first quarter of 2022, 281 percent higher than the equivalent period in 2021, the report noted.

Spain and Portugal registered the highest wholesale electricity price increases during this period, a 411 percent rise, followed by Greece (343%) and France (336%), the report noted.

Spain, Portugal price cap agreement to guide Greek plan

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Spain and Portugal’s agreement with the European Commission for the implementation of a temporary cap of 50 euros per MWh on reference prices for natural gas and coal used by power plants, effectively detaching wholesale electricity market prices from the cost of these generation sources, promises to serve as a guide for Greece’s negotiations with Brussels for intervention in the country’s wholesale electricity market.

Spain and Portugal had requested a temporary cap on reference prices of 30 euros per MWh, for one year.

The price of electricity in Spain and Portugal will be the same as that applicable for transactions with the rest of the EU, via France, El Pais reported.

The limited capacity of the Iberian Peninsula’s electricity grid interconnections with France will restrict electricity exports from Spain and Portugal. Otherwise, lower electricity prices resulting from the temporary cap would have prompted a sharp rise in electricity exports from Spain and Portugal.

Though the Greek government is on standby for a European price-cap solution to the energy crisis, Athens has already begun regulatory and legislative preparations for domestic market intervention.

Sweden’s OX2 buys 500-MW RES portfolio, eyeing further moves

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Swedish company OX2 has acquired wind and solar energy projects in Greece with a total capacity of 500 MW, a development that serves as a reminder of the steadily growing interest of European and international investors in the country’s RES market.

OX2 already possesses an extensive past in the Greek market, having collaborated with local companies to develop RES projects offering a total capacity in excess of 4 GW, the Swedish company has pointed out.

Further details on the deal’s seller, or sellers, have not been disclosed, but it is understood OX2’s acquisition concerns projects that are currently at different stages of development in various parts of Greece.

The Swedish company is preparing to assemble a team in Greece comprised of personnel from the Greek market as well as employees already with the company, sources have informed energypress.

OX2 plans to also examine further investment opportunities in the Greek market and is eyeing offshore wind farm, energy storage and hydrogen-related investments, a top-ranked company official has told energypress.

“Greece is a very interesting market for OX2. Approximately 20 percent of energy consumed is imported and 15TWh of lignite-fired power will be replaced by 2028,” noted Paul Stormoen, chief executive officer at OX2. “The country has strong sources, serious prospects for development of green energy projects, and plans to install over 5 GW in solar units and more than 3 GW in wind units by 2030. OX2 is aiming for a long-term presence and can accelerate the energy transition by utilizing its high expertise in the development of RES projects,” he continued.

Last year, OX2 formed subsidiaries in Romania and Italy and also developed a solar energy hub in Spain. The company is active in ten European markets.

 

Athens, Europe’s south hoping for brave crisis decisions

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Athens, along with other EU administrations, especially in Europe’s south, will be hoping for a brave European response to the energy crisis’ exorbitant prices at this week’s summit of EU leaders, scheduled for March 24 and 25.

Prime Minister Kyriakos Mitsotakis has joined forces with his counterparts from Italy, Spain and Portugal ahead of this week’s summit. The four leaders are hoping action, rather than just good intentions, as expressed by Europe’s north during an unofficial meeting a fortnight ago, will be taken.

That session highlighted a lack of agreement on the issue of a Eurobond as a common solution to help consumers in Europe cope with extremely higher energy prices.

Some analysts believe long negotiations could be needed at the forthcoming summit, as was the case in 2020, when European leaders worked for five days to eventually approve the Recovery and Resilience Facility as a means of helping economies bounce back from the impact of the pandemic.

Other analysts fear US president Joe Biden’s participation in the concurrent EU-NATO conference will overshadow talks for energy market intervention, postponing needed action for a next session.

 

 

EU south, uniting, anticipates drastic energy cost measures

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Europe’s south is pushing for drastic European Commission action in the hope that soaring energy prices can be countered as the endurance of consumers in less robust European economies continues to diminish,  prompting fears of an increase in unpaid receivables, energy company closures, even social unrest, if prices do not de-escalate within the next few months.

The European Commission, gearing up for its next summit, on March 24 and 25, is believed to be preparing to present a series of measures intended to tackle skyrocketing energy prices.

If decisive, these European Commission measures would be embraced by EU member states, especially in the south. If the measures remain half-hearted, in the hope of favorable market developments during spring, they will prompt disappointment, possibly even rebellion, within the EU.

The leaders of Greece, Italy, Spain and Portugal plan to meet in Rome either this week or next to establish a common line ahead of the upcoming EU summit.

The precise nature of the European Commission’s upcoming measures has yet to be disclosed. Wholesale natural gas market intervention, with or without price ceilings, as Greek Prime Minister Kyriakos Mitsotakis has proposed, is a possibility. A detachment of electricity prices from natural gas prices, as proposed by Athens and Madrid, is another possible measure that could be announced by Brussels.

The likelihood of a Eurobond issue to help cover the energy needs of consumers in the EU appears to have faded following recent talk of such a solution.

Brussels to propose windfall profit support for consumers

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The European Commission, fearing the energy crisis will be prolonged, is moving towards adopting a French EU presidency proposal that would offer energy consumers support through redistribution of windfall profits earned by electricity producers in the RES, hydropower, nuclear and lignite sectors.

The European Commission strategy also includes a call for regulatory intervention to contain retail electricity prices.

The Brussels proposal, contrasting the European Commission’s energy-crisis stance until now, is included in a preliminary plan that was due to be officially announced next month but has been leaked by the EURACTIV media outlet.

Spain has already taken similar-minded action by taxing excessive earnings generated by nuclear power stations and large-scale RES facilities.

Europe’s south wants wholesale price to reflect energy mix cost

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Greece will align with a French proposal for wholesale electricity prices as a reflection of energy-mix cost, not energy exchange levels, a stance to be adopted by countries of Europe’s south, at a council meeting of European energy ministers today.

France will join forces with Greece, Italy, Romania and Spain, Barbara Pompili, Minister of Ecological Transition, has informed ahead of today’s session, for their presentation of a joint proposal to the EU 27 for wholesale electricity market reforms.

The proposal’s objective will be to offer consumers better protection against excessive price increases as well as stability through the energy transition period.

It remains unclear how the French-led proposal will be received by other EU member state representatives.

Europe’s north, better equipped to handle adverse market conditions as a result of more diverse energy mixes and numerous grid interconnections, enabling greater flexibility, has been less affected by the energy crisis and, subsequently, is not under pressure to seek market reforms.

However, governments around the continent are feeling growing pressure as wholesale price levels appear to be establishing themselves at higher levels, impacting inflation rates around Europe, latest Eurostat figures for November have shown.

In Greece, wholesale electricity prices have held steady at record-breaking levels above 260 euros per MWh over the past few days.

Greece tables hedging fund plan to soften energy crisis

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Energy minister Kostas Skrekas has proposed the adoption of a temporary hedging mechanism by EU member states as a means of easing the burden of increased electricity costs on consumers.

The minister’s proposal, which would enable funds to be drawn from the Emissions Trading System through extraordinary auctions offering additional carbon emission rights or prepayment of potential ETS revenue, was tabled at a meeting of EU energy ministers in Ljubljana yesterday.

The ministers assembled in search of a solution to counter the relentless rise in carbon emission right costs.

Skrekas’ proposal is similar to household mitigation measures recently announced by the Greek government for which electricity subsidies will be financed by revenues generated at carbon emission right auctions, through the Energy Transition Fund.

According to estimates by Greek officials, a sum of between 5 and 8 billion euros will be needed to cover the EU’s overall energy support needs this coming winter. Distribution of this amount to member states would take into account respective electricity consumption levels, heating needs and GDPs.

At the Ljubljana meeting, Greece, Spain and Italy were the only member states to propose the adoption of EU-wide measures as an effort to restrict the effects of the energy crisis, seen worsening for households and businesses this coming winter.

 

Brussels strategic reserve conditions discussed by RAE, IPTO, ministry

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A new adequacy report and a new market reform plan, two conditions set by the European Commission for Greece’s adoption of a strategic reserve mechanism, have been discussed during an online meeting between RAE, the Regulatory Authority for Energy, power grid operator IPTO, and the energy ministry.

The European Commission’s Vice-President Margrethe Vestager, also Brussel’s Commissioner for Competition, during a preceding meeting, earlier last week, with energy minister Kostas Skrekas, called for a new adequacy report, in other words, an updated study proving the country’s need for a strategic reserve mechanism to cover actual grid needs.

The Brussels official also requested a new market reform plan detailing reforms designed to intensify competition in the wholesale electricity market.

Pantelis Kapros, Professor of Energy Economics at the National Technical University of Athens, has been asked to contribute to this new market reform plan, sources informed.

Besides the strategic reserve mechanism, RAE, IPTO and energy ministry officials also discussed details on prospective power purchase agreements (PPAs) between industrial enterprises and RES producers.

Vestager, at her meeting with Skrekas, the energy minister, recommended that Greece follow the examples of PPA models adopted by other EU member states, such as Spain.

Greece climbs up to 12th place in EU electricity tariff cost rankings

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Greece has climbed seven places, to 12th from 19th, in the EU rankings for retail electricity cost, pushed higher by a government decision reached last year to increase tariffs at state-owned power utility PPC, according to latest Eurostat data.

These tariff hikes at PPC were imposed by the government in August, 2019 to protect the utility from falling into bankruptcy.

The EU rankings concern electricity price levels for household consumption levels between 2,500 to 5,000 kWh, annually.

Electricity tariff increases for households in Greece rose by an average of 8.6 percent in the first half of 2020, compared to the previous half, when the country was ranked 19th.

The first-half tariff price for households averaged € 0.129 per KWh, not including taxes and surcharges, up from €0.1189 per KWh in the second half of 2019.

PPC remains Greece’s dominant supplier, representing 63 percent of electricity consumption.

The PPC tariff increase has made electricity more expensive in Greece than in countries with higher income per capita levels. Electricity is now more expensive in Greece than in France (€ 0.1247 per KWh), Finland (€ 0.1178 per KWh), Spain (€ 0.1178 per KWh) and Sweden (€ 0.1130 per KWh), all with higher income levels. Electricity is also more expensive in Greece than in Portugal (€0.1139 per KWh).

Despite the country’s rankings rise, electricity prices in Greece remain below the EU average (€0.1327 per MWh), a result of the competition generated by independent suppliers, subduing prices.

The biggest electricity tariff decreases in the first half of 2020, compared to the previous six-month period, were recorded by the Netherlands (-31%), Latvia (-12.8%), Slovenia (-11.4%), Sweden (-10%) and Estonia (-8.9%), the Eurostat data showed.

Electric vehicles bill to include production line incentives

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A draft bill being prepared by the government to promote growth for Greece’s embryonic electric vehicle sector will not only include incentives for buyers and users but also producers, energypress has been informed.

Producers establishing production lines for electric vehicle parts, including batteries, transformers and recharging units, will be offered incentives in the form of lower tax rates and reduced social security system contributions for employees, the sources said.

However, eligibility for these incentives will be conditional and require producers to establish their production facilities in either northern Greece’s west Macedonia region or Megalopoli in the Peloponnese, both lignite-dependent local economies headed for decarbonization.

The incentives are expected to include subsidies of between 4,500 and 5,000 euros for purchases of zero or low-emission electric cars, approximately 1,000 euros for electric scooters and 800 euros for electric bicycles.

Government officials plan to submit the draft bill on electric vehicles to Parliament in June.

Besides seeking to promote industrial development in current lignite areas, the master plan will also aim to make the most of early interest expressed by foreign investors.

One of these, Tesla, has, for months now, expressed interest to the Greek government for development of a fast-recharge network at Greece’s highways, a project budgeted at 10 million euros. This project is envisioned as part of a wider plan stretching from Portugal to Spain, France, Italy, Greece and Turkey.

JinkoSolar delivers 950 MW of modules for X-ELIO projects in Spain, Mexico

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JinkoSolar, one of the largest and most innovative solar module manufacturers in the world, has announced a 950-MW delivery to X-ELIO, a leading company dedicated to the development, construction and operation of photovoltaic plants, of its ultra-high efficiency Cheetah 72 cells solar modules to be installed at different projects across Spain and Mexico.

Out of the 950 MW to be installed, 575 MW of the PV panels will be used in 12 project sites, namely in Spain, including Ciudad Real, Badajoz, Albacete, Murcia, Almería, Sevilla, Cartagena, Valencia and Segovia, while over 375 MW will be deployed in two different project locations in Mexico, with 118 MW and 257 MW destined for Veracruz and Navojoa, respectively.

“We are very pleased to have gained the trust and confidence of X-ELIO, one of the most professional and experienced developers and investors in the PV industry,” commented Kangping Chen, CEO of JinkoSolar. “Supplying their large-scale pipeline projects in Spain and Mexico with our ultra-high efficiency PERC Mono modules has allowed us to significantly expand our share of the Spanish and Mexican PV markets this year. It has always been our mission to be recognized as the most reliable global module supplier, which is driven by our commitment of delivering high-quality products and exceptional customer service. It is this commitment that allows us to develop deep and long-lasting relationships with respected partners such as X-ELIO.”

X-ELIO, firmly committed to greenhouse gas reduction and the fight against climate change, has built more than 1.6 GW in solar photovoltaic plants and currently has 41 solar plants in operation.

 

JinkoSolar to supply 300 MW of ultra-high efficiency modules for Spanish project

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JinkoSolar, one of the largest and most innovative solar module manufacturers in the world, has signed a module supply contract with METKA EGN, a world-class EPC contractor, for 300 MW of JinkoSolar’s ultra-high efficiency Cheetah modules to be installed at a large-scale solar power plant, the Talasol project, in the municipality of Talaván, Cáceres, Spain, the company has announced.

“Cheetah modules are widely accepted by the market and have become industry standards. We are delighted that METKA EGN, one of the most professional and experienced EPCs developers globally, has once again placed their trust in the superior quality and reliable performance of our solar modules for this impressive new project in Spain. The Talasol project will create a benchmark in Europe in terms of competitively-priced and subsidy-free solar power. It is also one of the largest utility scale projects ever built in Europe and JinkoSolar is very proud to be a part of such a milestone,” said Frank Niendorf, General Manager of JinkoSolar Europe.

Nikos Papapetrou, CEO of METKA EGN commented: “The 300 MW Talasol project is a landmark venture not only in Spain, but for the whole of Europe. We have our full trust in JinkoSolar, one of the leading companies in the solar industry, as our strategic module supplier and are confident that they will deliver their high-performance, durable and reliable modules on time which will help produce long-term sustainable renewable energy.”