standalone batteries

Battery investment support changes aim for 1,700-MW sum

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The energy ministry is considering yet another revision to its investment support plan for standalone batteries that would reduce support offered for batteries with two-hour durations to 50,000 euros per MWh and maintain support offered for batteries with four-hour durations at 100,000 euros per MWh, the objective being to ensure that batteries with a total capacity of 1,700 MW end up receiving investment support, energypress sources have informed.

An additional battery capacity of between 400 and 500 MW is expected to become available for investment support as a result of the revisions.

The ministry is planning a forthcoming RES auction, next month, to offer investment support for two-hour standalone batteries representing a total capacity of 175 MW.

It will be followed by an auction exclusively supporting four-hour batteries, planned to be installed at some of the country’s former lignite-dependent areas, and, further ahead, an additional session auctioning off any remaining capacity.

A preceding auction, earlier this year, had offered RES projects energy-storage investment support of 200,000 euros per MW, now being reduced to widen the support program’s coverage.

Ministry strives for May auction supporting battery usage

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An upcoming RES auction offering investment support to standalone batteries representing a total capacity of 175 MW comes as the next step in the energy ministry’s effort promoting batteries at RES projects, and, by extension, increased usage of storage units in the country’s electrical system.

The ministry is striving to stage this auction, whose investment support stems from the European Commission’s REPowerEU program, as early as May.

A preceding auction had offered RES projects energy-storage investment support of 200,000 euros per MW, but this level has now been halved to 100,000 euros per PW, the intention being to make the support package available to more RES units.

A sum of 85 million euros has been marked out for energy-storage system support from the country’s REPowerEU allocation, worth a total of 795 million euros. The REPowerEU package has come to bolster Brussels’ preceding RRF initiative.

The upcoming RES auction will concern batteries with two-hour durations. It will be followed by an auction offering investment support for batteries with four-hour durations, planned to be installed at former lignite-dependent areas.

To date, two auctions have been staged for investment support to standalone batteries representing a total capacity of roughly 700 MW.

Besides these two auctions and the forthcoming auction, possibly in May, a further two auctions offering investment support to standalone batteries with a capacity of between 700 and 800 MW are planned to be held by the end of this year, bringing the support effort’s overall tally to approximately 1,675 MW.

RES units without priority to be given 50% battery subsidies

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The energy ministry is working on offering an alternative form of support, through subsidies for battery installations, to RES projects linked with PPAs for industrial consumers should these projects miss out on priority status for appraisals of their connection-term applications.

RES units placed in Group B, in terms of priority, and not granted priority status for appraisals of their connection-term applications will, as a form of compensation, receive subsidies covering 50 percent of battery installations, the energy ministry has decided.

These batteries will be permitted to absorb energy from the grid, in addition to their respective RES units, thereby decreasing their investment cost.

The energy ministry has decided to grant priority status for connection-term applications concerning Group B RES projects whose output is intended to contribute to energy needs entailed in power utility PPC’s existing PPAs with metal processing company Viohalco and cement producer Titan.

RES projects planned to secure lower energy costs for farmers will also be granted priority status for their connection-terms procedures. A related legislative revision is expected to soon be submitted to Parliament.

 

Extra subsidized standalone batteries at 500-700 MW

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Battery-based RES facilities (both standalone units and behind-the-meter projects) will total 3,100 MW, greatly contributing to the country’s energy-storage targets, according to a draft of the revised National Energy and Climate Plan.

The energy-storage support package will result in a portfolio of standalone batteries with an overall capacity of as much as 1,500 to 1,700 MW, deputy energy minister Alexandra Sdoukou told a recent event staged by SEF, the Hellenic Association of Photovoltaic Companies (HELAPCO).

These levels represent an additional capacity of between 500 and 700 MW in standalone batteries eligible for subsidy support as a result of a reduction in investment support to be offered, it has been estimated.

Energy-storage projects representing roughly 700 MW have qualified for subsidy support through two auctions.

As for the portfolio’s allocation, the energy ministry is considering dividing it into two-hour and four-hour batteries, in place of an initial plan that had envisaged 700 MW of two-hour batteries and 300 MW of four-hour batteries.

Ministry determined to ensure PPAs for industrial consumers

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The energy ministry appears determined to ensure renewable-energy PPAs for industry and intends to incorporate all required measures into an overall plan being developed for the liberalization of grid space.

However, the ministry has a conundrum to resolve as it must combine increased grid-injection restrictions for RES units obtaining connection terms from now on with the need to keep prices low for PPAs involving RES producers and industry.

These increased grid-injection restrictions for RES units come as a challenge for renewable-energy PPAs already established, among them agreements between power utility PPC with metal processing company Viohalco and cement producer Titan.

Besides modifying RES output, these restrictions also affect data used by parties involved in PPAs to reach agreements on electricity purchase prices.

To offset negative impact, the ministry is considering to subsidize behind-the-meter battery additions to projects. This would enable RES producers to meet the energy needs of industries at latter dates should PV production exceed upper limits.

A subsidy-support solution would require the European Commission’s approval as it is considered a form of state aid.

 

Ministry pushes for energy-storage project progress

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Deputy energy minister Alexandra Sdoukou has made clear her determination to remove obstacles that could delay investments concerning the installation of standalone batteries by companies that submitted successful bids to a first energy-storage auction.

Swift development of energy-storage projects is seen as crucial by the energy ministry so that the need for RES output cuts, performed to prevent grid overloading, may be restrained.

Earlier in the week, the deputy minister chaired a meeting involving various sector officials for an update on the progress of standalone battery projects, equipment orders, plans and timetables.

Aristotelis Aivaliotis, the energy ministry’s General Secretary of Energy and Natural Resources, officials from power grid operator IPTO and RES market operator DAPEEP, as well as the heads of renewable energy and storage projects all took part in the meeting.

Sdoukou appeared determined to speed up procedures concerning the issuance of connection terms for energy storage projects and to also establish a system for monitoring their progress. Investors were asked to send monthly reports on the progress of projects.

At the meeting, IPTO ensured that all RES projects with standalone batteries will have received connection terms by the end of February. Also, the deputy energy minister asked DAPEEP, the RES market operator, to prepare operational contract details.

A total of twelve energy-storage projects developed by seven companies secured the first auction’s entire capacity of 411 MW at an average price, for a year, of 49,748 euros per MW.

Helleniq Energy and Intra Energy (Intrakat) submitted successful bids for three projects each, PPC Renewables secured operational support for two projects, while Aenaos (Mytilineos), Energiaki Techniki, Energy Bank and the Agapi Ilios energy community submitted successful bids for one project apiece.

Standalone battery interest surges to 12 GW, data shows

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Investment interest in standalone batteries has surged, as highlighted by applications submitted by investors, to power grid operator IPTO, seeking grid access for roughly 230 standalone battery projects representing 11,970 MW, or just under 12 GW.

This capacity greatly exceeds energy-storage objectives included in a revised 2030 National Energy and Climate Plan that has been forwarded to the European Commission for approval.

According to the revised NECP, Greece’s energy-storage target for 2030 is not expected to exceed 3.1 GW. This target includes standalone batteries as well as batteries linked to RES units.

Projects for which investors are currently seeking connection terms even suffice for the achievement of energy-storage objectives at the end of the next decade.

This surge in energy-storage interest is expected to continue, further extending the waiting list of applicants. As has already become clear, a large proportion of these project applications will not be materialized.

A total capacity of between 1,500 and 1,700 MW for standalone batteries will be offered through three auctions, the second of which is now in progress. RAAEY, the Regulatory Authority for Waste, Energy and Water, intends to complete its appraisal of offers on February 8 before announcing a list of successful bids on February 15.

 

Competition remains strong for second storage auction

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A total of 55 applications representing standalone batteries with 1,668 MW in capacity have been submitted by RES investors to a second auction offering investment and operational support for standalone batteries, a solid turnout ensuring the strong competition registered at the first auction will be maintained.

Investment and operational support will be offered to projects totaling 288.21 MW, meaning applications for participation have oversubscribed this capacity by 5.7 times.

The field of contestants will be finalized at noon today, when a deadline for letters of guarantee expected from participants is set to expire.

According to sources, most participants have already submitted their letters of guarantee with applications. As a result, the number of participants is not expected to diminish.

All participants face 100-MW capacity limit totals for projects submitted to the first two auctions. Helleniq Energy, power utility PPC and Intrakat already exhausted this limit through the first auction and, as a result, cannot participate in the follow-up procedure.

Virtually all other major energy groups with a market presence in Greece have applied to  participate in the second auction, sources informed. These include, TERNA Energy, Mytilineos, the Copelouzos group, Elpedison, MORE, Enel, EDF, EDPR, BayWa, KiEFER and Faria.

A total of 12 projects were successful in the first auction, securing guaranteed revenues of between 34,000 and 64,100 euros per MWh for a year. A starting price of 115,000 euros per MWh, for a year, has been set for the second auction. Bidding is not expected to drop below 45,000 euros per MWh, for a year, market officials have projected.

 

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.

Fixed RES tariffs for bigger grid input limitations, batteries

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The energy ministry plans to offer fixed tariffs, at RES auctions as of 2024, as an incentive to investors behind RES projects accepting increased grid injection limitations or an obligation to incorporate batteries, measures that would save grid capacity.

Deputy energy minister Alexandra Sdoukou announced this plan at a three-day energy conference, “Energy Security and Green Growth”, organized by the energy ministry.

A grid injection limitation of 50 percent of RES output is expected to be imposed on RES projects as a prerequisite for fixed tariffs. It remains unclear if the auctions offering these fixed tariffs will be technology-specific or mixed. According to energypress sources, the new auctions could only concern photovoltaics. Also the ministry is believed to be considering to offer a total capacity of 2 GW for fixed tariffs, though this, too, remains unfinalized.

Existing legislation covering RES auctions will need to be amended to facilitate the ministry’s fixed-tariffs plan.

 

 

 

Second auction for standalone battery support imminent

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RAAEY, the Regulatory Authority for Waste, Energy and Water, is set to announce a second auction offering state investment support for standalone batteries as, according to energypress sources, the energy ministry has signed a required ministerial decision halving the inaugural auction’s level of 200,000 euros per MW to 100,000 euros per MW.

The energy ministry decided to significantly reduce the state investment support offered through the second auction based on the results of the first auction.

The second auction will be announced as soon as the ministerial decision is published in the government gazette, which could occur today or, at the latest, by the middle of next week.

As investors will be able to submit applications for the state investment support six weeks after the auction has been announced, its deadline is expected to expire just after Christmas. The list of projects qualifying for the state investment support should be finalized towards the end of January.

The halved investment support to be offered at the second auction is intended to help broaden the portfolio of  projects receiving support. According to an initial plan, standalone battery investment support is planned to be offered for a total capacity of 1,000 MW, over three auctions.

Standalone batteries totaling 400 MW secured investment support at the first auction, while an initial plan for support to a further 300 MW through the second auction will remain unchanged.

Any extra capacity that would exceed the initial plan for a total of 1,000 MW will be made available at the third auction, expected to take place within the first few months of 2024. Projects planned for development at ex-lignite areas will participate in the third auction.

Support program for business-sector PVs set for September launch

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The energy ministry plans to launch a photovotaics support program for businesses by the end of September, promising enterprises energy-cost savings through self-produced energy.

Subsidy support for PV installations in the business sector will be reserved for systems incorporating zero feed-in batteries, which do not enable injections of renewable energy output into the grid.

This effectively means business-sector PVs will be able to be installed anywhere around the country, regardless of grid capacity availability.

The list of successful applicants, to vie for support funds totaling 160 million euros, should be finalized towards the end of November, or, in a worst-case scenario, no later than December, energypress sources informed.

The support program, to be funded by the Resilience and Recovery Fund, will be administered by TAIPED, the Greek privatization fund.

Battery project group revenue, ancillary service details needed

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The method to be applied for estimating standalone battery revenues concerning project groups and a formula for their participation in the balancing market constitute two unknown factors troubling investors as they conduct calculations in preparation for an upcoming tender, already announced, to offer standalone battery capacities.

The way in which revenues will be estimated stands as a key concern for the investment community as ambiguities continue to exist, making it considerably difficult to calculate investment-related figures with any accuracy, investors have told energypress.

Clarification is also needed on the so-called ancillary services that will need to be provided by standalone batteries incorporated into the grid support system, they added.

Officials are currently discussing the details of this matter, utilizing, in the process, the experience accumulated by European markets that possess greater maturity, according to energypress sources.

 

Auction for standalone battery aid announced by June 15

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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

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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.

Investors approve standalone battery support plan

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Investors are responding favorably to an energy ministry draft planned to offer investment and operational support, through three auctions, for standalone batteries representing a total capacity of 1,000 MW, following preliminary examinations of the plan, now undergoing consultation until May 2.

Consultation participants have noted the ministry’s investment support plan is headed in the right direction, commending its series of safeguards ensuring that support will be given to storage units which, through their operation, will provide maximum benefits to the system.

The plan’s safeguards are designed to ensure a geographical spread of standalone battery installations around the country, which, besides offering maximum benefits to the grid, will also help diffuse project ownership among numerous investors.

The safeguards also include provisions designed to achieve maximum possible competition in auctions, but also to monitor the implementation of projects selected for support.

The energy ministry plans to stage a first auction by the end of June, offering investment and operational support for standalone batteries representing a capacity of 400 MW, followed by a second session in the third quarter of the year to offer support for units totaling 300 MW.

These two sessions will be open to investors behind prospective projects throughout Greece, while the third auction, planned to take place in the fourth quarter and offer support for standalone batteries with a total capacity of 300 MW, will be open to investors installing such units in the country’s post-lignite areas, namely Kozani and Florina in the north and Megalopoli in the Peloponnese.

 

Draft for standalone battery support in consultation

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A draft outlining a ministerial decision to offer investment and operational support for standalone batteries representing a total capacity of 1,000 MW through three auctions has been forwarded by the energy ministry for consultation, running until May 2.

The draft includes all auction details except for the starting price that will be set for the inaugural auction, which the energy ministry aims to stage by the end of June. This first session is planned to offer investment and operational support for standalone batteries representing a capacity of 400 MW, while a second session in the third quarter of the year will offer support for units totaling 300 MW.

The first and second auctions will be open to investors behind prospective projects throughout Greece, while the third auction, planned to take place in the fourth quarter and offer support for standalone batteries with a total capacity of 300 MW, will be open to investors installing such units in the country’s post-lignite areas, namely Kozani and Florina in the north and Megalopoli in the Peloponnese.

Geographical caps will be imposed on the first and second auctions to promote a spread of installations around the country.

Investors will need to have secured energy storage permits to be eligible for taking part in the upcoming auctions, according to the energy ministry’s draft. Also, project capacities cannot exceed 100 MW or be less than 1 MW.

Standalone battery projects that qualify for investment and operational support through the three auctions will need to be launched by December 31, 2025.