Power demand dives 14.61% in June as tourism slumps

Electricity demand slumped 14.61 percent in June, compared to a year earlier, despite the month’s lifting of lockdown measures, latest Greek energy exchange figures have shown.

June’s drop in power demand, attributed to the unprecedented decline in tourism activity, was even bigger than the declines registered in April and May, 13 percent and 9 percent, respectively.

Numerous hotels and other tourism industry units have not opened for business. Also, flight bans were essentially not lifted until the beginning of this month.

Responding to the drop in electricity demand, energy producers have restricted output by 16 percent.

Natural gas and renewables dominated electricity generation in June. Natural gas-fueled generation covered 36.56 percent of demand, while RES production covered 26.43 percent, the energy exchange’s June report showed. Electricity imports covered 23.93 percent, hydropower 7.43 percent and lignite-fired production 5.64 percent.

 

 

PPC using extra 58-MW unit on Crete for safety despite weak tourism data

Power utility PPC plans, next week, to begin operating 58-MW capacity generators leased and to be installed at a company power station even though electricity demand on the island is expected to be far lower than usual this summer.

The island will still need this generation boost to meet local energy requirements despite the pandemic’s anticipated negative impact on tourism, authorities have estimated.

Crete’s energy sufficiency situation will not be resolved until the island’s grid interconnection with Athens is completed.

The generators, to be installed at PPC’s power station at Atherinolakkos, southeastern Crete, are scheduled to begin operating on July 1.

PPC has received a production permit for the generators between July 1 and August 31. Depending on the conditions, this license could be stretched to also cover September.

Under normal circumstances, electricity demand on Crete typically reaches 700 MW during the summer as a result of major tourism development on the island. Power outages, both short and long-lasting, are a common summer occurrence on Crete.

 

Supplier electricity-bill collections better than expected so far this month

Electricity bill payments have so far been better than expected in May and are on the rise following shock results recorded in previous months, during the full-scale lockdown.

Worst-case supplier revenue scenarios for the month have so far been avoided, but it is still too early to tell as the majority of consumer payments are due at the end of the month.

For the time being, rebounding electricity bill collection records are gradually approaching pre-crisis levels. Electricity bill payments are generally down by about 10 percent at present, compared to a 30 percent slump amid the heart of the lockdown.

Power utility PPC is already improving on its electricity-bill revenue decline of 9 percent in April following a major slump of between 25 to 30 percent in the second half of March.

Electricity bill collection figures at independent electricity suppliers are also moving upwards and are presently about 10 percent below pre-crisis levels, energypress sources informed.

Suppliers with high exposure to business and professional clienteles have been hit especially hard as these consumer groups were grounded during the full-scale lockdown in March and April.

Revenue losses have been milder for suppliers focused more on household consumers. Their revenue losses are in single-digit territory.

The full extent of the pandemic’s damage on electricity supplier revenues will become clearer once the economy is fully relaunched and the government’s support measures reach an end.

An anticipated unemployment spike over the next few months will negatively impact electricity-bill collection records.

Also, a subdued summer for the country’s pivotal tourism industry will hurt electricity supplier revenues, traditionally boosted during the second half of the year as a result of heightened tourism-related business.

Suppliers may end up needing to resort to emergency cash support through low-interest bank loans, support mechanisms and other financial tools if it turns out to be a bleak summer, as is feared.

 

 

Lockdown relaxation limits fuel sales drop, tourism pivotal

Petroleum product traders have experienced a slight improvement in sales figures since the relaxation of lockdown measures at the beginining of May.

During this 13-day period, the fuel sales drop has been contained to 30 percent compared to regular levels, far better than a slump that reached as low as 60 percent in April.

The pandemic’s impact on diesel has been milder. Sales for this fuel are now down 10 percent after dropping 30 percent in April.

Market officials attributed this increase to the first-stage relaxation of lockdown measures. Also, the general public has remained apprehensive about using public transport, prompting a further rise in the use of private vehicles.

Heating fuel sales were up over the past few weeks compared to  an equivalent period last year as consumers took advantage of a massive drop in oil prices to stock up for next winter.

A new extension granted by the government for heating fuel supply until the end of the month is not expected to make an impact on sales figures. Most consumers have already stocked up and heating fuel prices are now gradually rising.

The pandemic’s development, impact on wider activities and, most crucially, tourism this summer will be instrumental for the future course of fuel sales figures. Current levels are expected to remain unchanged over the next two to three months.

A finance ministry relief measure for payments of special consumption tax and VAT on fuel purchased between May 4 and 19 has not been a great help for market liquidity, officials pointed out.

Government working to promote major-scale RES projects

The government is working on upgrading the country’s legal framework for the RES sector in an effort to promote the development of major-scale projects, not just smaller wind and solar energy farms.

The need for a national RES strategy revision has been intensified by the prospect of major pandemic-induced damage to the tourism industry, the backbone of the Greek economy.

Big RES projects promise to attract foreign funds managing portfolios worth billions. An influx by such funds promises to create jobs, generate economic growth and help Greece reach its ambitious RES objectives set for 2030.

The government took an important first step yesterday by ratifying legislation to simplify the RES licensing procedure. But this is not enough. Ensuing steps in the overall procedure for RES investments also need to be simplified.

“We have begun and are working on proposals to simplify procedures for the next stages all the way to the installation permit. We are also moving forward with other issues to accelerate the RES sector’s penetration of the energy mix,” deputy energy minister Gerassimos Thomas recently told parliament.