Wholesale prices in Greece well over European average in 3Q

Wholesale electricity prices in Greece during the third quarter of 2020 were three times over the €16/MWh European average, based on the Nord Pool power exchange, a European Commission report covering European electricity markets for this period has shown.

The report also traces the market’s 3Q rebound following a heavy slump in the preceding quarter.

Average prices rebounded at a slower pace in southeast Europe, compared to other regions, before reaching pre-pandemic levels in September as a result of weak demand and high production of wind energy and hydropower facilities, according to the Brussels report.

The average price in the third quarter rose by 43 percent, against 2Q, to €43/MWh, and was 30 percent lower, annually.

European price shifts in August moved in coordination, while the price gap between Greece and the European average narrowed significantly in 3Q as a result of the use of lignite-fired units and weak demand.

This gap vanished in September as a result of stronger wind energy output, which exceeded one TWh for the first time. As a result, prices in the region were between €46 and €47/MWh in September.

As for energy-mix developments, lignite-based production in Greece experienced a decreased share, captured by natural gas-fueled output.

In southeast Europe, the lignite-based output share contracted to 29 percent in 3Q from 35 percent in the equivalent period a year earlier; the gas-fueled sector’s production share rose to 20 percent from 18 percent; and the RES sector’s share of the energy mix increased to 34 percent from 30 percent.

Household electricity tariffs in Greece averaged €16.54/MWh (not including taxes and surcharges), while the country’s average for industrial tariffs was €10.62/MWh, the report showed.

Brussels RES tool to promote member-state collaboration

A financing mechanism adopted by the European Commission to financially support new RES projects and facilitate synergies, at financial and technical levels, between EU member states is moving closer to actualization.

Late in 2020, the European Commission established a related platform and invited EU member states to express interest in the mechanism either as hosts or contributors.

According to the mechanism’s plan, contributing member states will be able to invest in RES projects in other countries. This prospect will enable contributors to become involved in projects offering greater financial returns, compared to those of domestic projects, and also invest through RES technologies that cannot be implemented at home. For example, landlocked countries will be able to invest in offshore wind farms and countries with minimal sunshine will be able to invest in solar farms.

On the other hand, member states hosting projects linked to the new mechanism stand to benefit from improved energy supply and security, grid upgrades, investments and job creation.

Also, RES output generated by projects linked to the new mechanism is planned to be equally divided by participating states, contributing to their respective energy and climate targets.

The European Commission is currently examining the prospect of also opening up this initiative to private-sector firms. Brussels, gauging the level of investment interest, has invited private-sector companies to express their interest in the mechanism by February 15.

The private sector is playing a crucial role in successfully promoting RES projects in the EU, Brussels pointed out in a statement.

New minister, just appointed, has issues to resolve in 2021

Kostas Skrekas, just appointed new energy minister as part of the government’s cabinet reshuffle, in place of Costis Hatzidakis, who has headed the ministry for a constructive year and a half, faces a series of pending energy-sector matters that remained unresolved in 2020. They need to be addressed as soon as possible. Developments and conditions this year will be pivotal for these matters.

Skrekas was previously deputy minister for agricultural development and food.

Also in 2021, a year during which takeovers and mergers are seen occurring in the retail electricity and gas markets, rivals will continue battling for market share gains. The target model’s launch two months ago has brought about new conditions, strengthening the positions of vertically integrated suppliers.

The need for a normalization of the target model’s new markets stands as the energy ministry’s most pressing task at present. A sharp rise in wholesale electricity prices as a result of soaring balancing market costs has deeply unsettled the market, impacting the standings of non-vertically integrated suppliers, as well as industrial enterprises and consumers, who face rising bills.

Market coupling with Bulgaria’s day-ahead market, scheduled to take place within the first three months of the new year, is the next step of the target model, a procedure designed to harmonize EU energy markets and promote competition.

New energy-intensive industrial tariffs also need to be set soon. Though essentially a matter concerning state-controlled power utility PPC and Greece’s industrial players, the cost of industrial energy is crucial for Greek industry, carrying particular political and economic weight.

Also, Greece has little time left in its negotiations with Brussels for a framework to offer third parties access to PPC’s lignite-based generation. This issue is no longer as crucial as it once was because the country’s lignite output has been drastically reduced. Even so, it remains important for independent suppliers.

A number of energy-sector privatizations could be completed this year. Gas utility DEPA’s two new entities, DEPA Infrastructure and DEPA Commercial, electricity distribution network operator DEDDIE/HEDNO, and a tender for a tender for the development of an underground natural gas storage facility (UGS) in the almost depleted natural gas field of “South Kavala” in northern Greece are all on this year’s privatization list.

In renewable energy, the ministry needs to take decisions within the first few months to clarify terms regulating the sector. RES investment interest is currently high. Steps still need to be taken in an ongoing effort to simplify RES licensing procedures, while a legal framework must be established for energy storage, offshore wind farms and hydrogen use.

 

Terms soon for last mixed RES auction to be staged under old framework

A ministerial decision on the terms, conditions and scheduling of one last mixed RES auction for solar and wind energy capacities to be held under the current legal framework is expected within the next few days.

A capacity of 350 MW will be offered to the auction’s participants early in 2021. It remains unclear if the capacity on offer will be evenly distributed for the solar and wind energy sectors.

Once the ministerial decision is delivered, RAE, the Regulatory Authority for Energy, will officially announce the auction.

Investors will be given more time than usual to obtain supporting documents needed for auction participation as a result of the extraordinary lockdown-induced conditions, sources informed.

The session’s 350 MW to be offered represents the remaining capacity from auctions in 2020.

The energy ministry has submitted an application to the EU for an extension of competitive procedures concerning RES projects until 2024.

The new auction model is expected to incorporate improvements based on increased competition through more active target model participation and price reductions benefiting consumers, while also ensuring a clear-cut framework for RES producers.

Siemens Gamesa turbine, boosting low-wind site output, ideal for Greece

Siemens Gamesa, a global leader in the wind power industry, has added a new turbine to its 4.X platform, the SG 4.7-155, combining the company’s expertise and track-record in the 4 MW segment with a 155-meter rotor and state of the art blades to significantly increase energy production at low-wind sites, the company has announced in a statement.

The SG 4.7-155 features make it a perfect fit for Greece, the statement noted, as the new turbine has a nominal power rating of 4.7 MW and is equipped with OptimaFlex technology, enabling it to operate between 4 MW and 5 MW depending on site conditions. The platform will be enhanced by one of the two rotors developed for the more powerful Siemens Gamesa 5.X platform, representing an important step forward in the company’s strategy to adopt the best technology across all its platforms.

The development of low wind turbines is especially important for already well-developed onshore wind markets, like Greece, where the space for higher wind sites is limited. By increasing the size of the rotors, wind turbines are therefore capable of providing a successful business case to produce higher clean energy production even with lower wind conditions.

The model will use a 76-meter blade made of fiberglass reinforced with pultrude carbon, integrating innovative aerodynamics to guarantee the best balance between high energy production and reduced noise emission levels.

Indeed, the Annual Energy Production in average low wind conditions is 5% higher than that of the SG 5.0-145. The turbine also has a low noise output of 105 decibels, making it suitable for countries with strict noise restrictions. In addition to these functionalities, the lifetime of the new turbine has been increased to 25 years from 20 years at IEC-Class 3 sites.

A prototype of the new model is expected to be ready by mid-2021, with the start of production planned for the end of 2021.

“The new model will make us much more competitive in Greece, complementing our SG 5.8-170 to offer our customers broader options depending on their project characteristics and needs. This type of modular approach using the best of our onshore innovation will help us lower the cost of energy for them and offer the best solutions for the energy transition,” said Siemens Gamesa managing director in Greece Spyros Rozis.

Siemens Gamesa maintains a strong presence in all facets of the wind power business: offshore, onshore and services. The company’s advanced digital capabilities enable it to offer one of the broadest product portfolios in the sector as well as industry-leading service solutions, helping to make clean energy more affordable and reliable.

With more than 107 GW installed worldwide, Siemens Gamesa manufactures, installs and maintains wind turbines, both onshore and offshore. The company’s orders backlog stands at €30.2 billion. The company is headquartered in Spain and listed on the Spanish stock exchange, trading on the Ibex-35 index.

Environmental terms for RES licenses ‘still tough’, investors note

Contrary to popular opinion, recently ratified environmental impact licensing rules remain strict for renewable energy investors despite upper-limit capacity increases for wind and solar energy installations, sector officials have pointed out in comments to energypress.

Last August, the energy ministry increased the upper-limit capacity for Category B wind energy installations from 5 MW to 10 MW and Category B solar energy installations from 2 MW to 10 MW.

Investors behind Category B projects do not need to provide environmental impact studies but must meet predetermined environmental terms and all related terms included in a ministerial decision implemented back in January, 2013.

“It is not true that investors merely submit statements declaring that their projects do not have environmental impact, as has been generally said,” a sector official explained. “Investors must observe specific environmental terms and submit studies and data required by the ministerial decision from 2013,” the official added.

Special Ecological Assessments must be conducted for projects planned for protected Natura areas. Also, bird fauna studies must be included in investment applications for Special Protection Zones.

Furthermore, the ministry has advised licensing authorities to be particularly careful when examining project applications slicing big RES projects into a series of smaller projects as a means of simplifying licensing procedures. Such practices need to be stopped, the ministry has stressed.

RAE nearly done with processing for backlog of RES license applications

RAE, the Regulatory Authority for Energy, is close to completing its processing effort for a backlog of some 1,400 RES license applications representing approximately 24 GW in wind and, primarily, solar projects.

RAE’s processing of a backlog of applications submitted during four cycles from September, 2018 to June, 2019 has been completed, while the authority’s examination of applications submitted in September, 2019 is expected to be completed within the next few days, sources informed.

Once RAE officials complete their processing of last September’s applications, they will begin work on applications submitted last December, which should result in the completion of processing work for the entire backlog by the end of this month, officials have estimated.

A small fraction of the RES license applications submitted during the four cycles between September, 2018 to June, 2019 were rejected. More specifically, of 811 applications examined by the energy authority, 246 were granted production licenses for 1.522 GW in wind energy projects and 430 investment plans were given licenses for 6.2 GW in solar projects.

Meanwhile, public consultation staged by RAE for new rules concerning producer certificates in the RES and combined heat and power (CHP) domains has been completed.

A new platform being developed by RAE for producer certificates will be simple, safe and transparent, and also linked to platforms operated by other entities, including DAPEEP, the RES market operator, so that applications may be swiftly processed, authority officials have informed.

DEPA Commercial invites RES companies for collaboration

DEPA Commercial, one of two new entities formed by gas utility DEPA for its upcoming privatization, has invited renewable energy companies with existing production units or advanced projects to express interest in prospective collaborations.

DEPA Commercial is aiming to transform into an energy company with emphasis on green energy activities, chief executive Costas Xifaras has noted.

According to sources, DEPA Commercial is looking to develop a RES portfolio totaling 240 MW.

Related investments at DEPA Commercial are expected to reach 120 million euros, the company head has stated.

DEPA Commercial, interested in both solar and wind energy projects, is looking to acquire RES production licenses and, especially, mature-stage projects, sources informed, adding the company is seriously considering takeovers.

For the time being, DEPA Commercial does not intend to partner with energy groups active in the RES market as well as the company’s privatization procedure.

Besides its plan to expand into the RES market, DEPA Commercial, currently developing major LNG projects, is also exploring the possibility of entering the hydrogen sector.

Ellaktor, EDPR form alliance seeking greater RES market penetration

The Ellaktor group and EDP Renewables, both aiming for swifter and deeper RES market penetration, have established a strategic partnership following talks that began last summer.

The two companies plan to invest one billion euros over the next four to five years for the development of wind farms with a total capacity of 900 MW, sources have informed.

EDP Renewables was driven towards forming this partnership by the belief that its existing Greek portfolio of licenses, offering a capacity of 152 MW accumulated through RES auctions staged by RAE, the Regulatory Authority for Energy, would be insufficient to secure investment opportunities in the country.

The Ellaktor group, holding a RES portfolio of 460 MW, is looking to further bolster its position in the renewable energy market.

By uniting their portfolios, the two companies believe they will be better positioned for anticipated market changes and opportunities.

Ellaktor stands to also benefit from resulting access into lower-cost capital markets.

The plans of the two partners include development of two wind farms with a total capacity of 436.8 MW in central and southern parts of the island Evia, slightly northeast of Athens. The two firms have acquired licenses for these projects from other companies.

A further 460 MW will be developed from a portfolio of existing licenses. These licenses are not linked with Ellaktor’s portfolio of wind parks already operating.

Ellaktor already holds a total of 26 RES projects, all operating. They are comprised of 24 wind energy farms with a total capacity of 484 MW, one small-scale hydropower plant (5 MW) and one solar energy farm (2 MW), offering a total installed capacity of 491 MW.

PPC to offer lignite-dependent area residents 5% stakes in solar farms

Power utility PPC intends to offer residents of lignite-dependent areas in Greece stakes totaling 5 percent in solar farm projects planned by the company as part of its decarbonization strategy, chief executive Giorgos Stassis disclosed in an interview published by Greek daily Kathimerini yesterday.

PPC plans to develop and operate solar farms with a total capacity of 2.5 GW in west Macedonia, northern Greece, and Megalopoli, in the Peloponnese, both lignite-dependent economies.

Besides creating jobs through these investments, PPC plans to offer locals the opportunity to invest in the power utility by acquiring shares for total stakes of 5 percent, Stassis noted.

Through this procedure, residents will join PPC in its investments and enjoy the exact same returns as the company, he said.

“I want to underline the annual investment return on these investments will range between 8 and 10 percent, at a time when deposit interest rates are almost negative,” Stassis said. The offer will be restricted to decarbonization-area residents, he added.

Commenting on local resistance against prospective RES installations, especially on islands, Stassis noted: “Islanders who, for years, have enjoyed low-cost electricity generated in Megalopoli and Ptolemaida at a cost for the environment and human lives, cannot object turbine installations on islands for production of electricity they will consume now that lignite-fired generation has become ultra-expensive and is being abandoned.”

RES groups want rule changes to enable repowering, offering yield boosts

Renewable energy associations and investors have called for legal and regulatory framework revisions that would facilitate repowering, or the replacement of old RES equipment at wind and solar energy parks with upgraded modern technology offering far higher yields.

Prime RES locations around Greece are occupied by installations that date back ten to 20 years and are producing yields well below the potential promised by modern technology.

Aristotelis Hantavas, Enel Green Power’s head official for Europe and president of the Solar Power Europe association, spoke extensively on the matter at a recent industry conference.

“If repowering is facilitated, the country can, in a short period of time, cover one third or possibly half of the ground that remains to be covered to reach the 2030 goal without needing to open up many new wind and solar energy areas, a development that prompts reaction by local authorities, amongst others,” Hantavas pointed out.

The installation of modern wind and solar energy systems in place of older technologies could boost yields by up to three times, experts believe.

This does not necessarily mean investors will secure fixed tariffs as remuneration for any additional capacity installed. RES sector officials believe remuneration will still be based on older agreements for the remainder of their terms.

Once existing contracts have expired, investors should expect to be remunerated for any additional capacity offered by their upgrades through target model markets.

According to current regulations, capacity increases at sites hosting existing solar or wind energy parks are limited to 10 percent.

Also, investors are not permitted to sell RES output through more than one market channel, for example, through tariffs for one part of production and two-way agreements for the rest.

Repowering is currently being widely discussed around Europe, especially in countries with extended renewable energy backgrounds.

 

Greece keen to utilize American RES technology; funds eyeing market

The government wants to utilize latest American technology for more recent RES and RES-related domains such as offshore wind farms and energy storage, the energy ministry’s secretary-general Alexandra Sdoukou noted yesterday during a meeting with US Secretary of State Mike Pompeo and other US officials in Thessaloniki.

For quite some time now, American renewable energy producers, institutional investors and funds have been scanning the Greek market for RES market opportunities.

A complete framework for offshore wind farms in Greece will be presented early in 2021, Sdoukou pointed out during yesterday’s meeting.

Major offshore wind farm development has been achieved off the American west coast, featuring, like the Mediterranean, waters of sudden depth, ideal conditions for the development of offshore wind farms.

US firms such as Invenergy, one of North America’s biggest wind energy producers; 547 Energy, a RES platform for Quantum Energy Partners; National Energy; and wind energy equipment manufacturer General Electric, have displayed a rising interest in the Greek market.

Besides RES and RES-related companies, a number of American funds are seeking investment opportunities in Greece.

At least ten US funds appear to be keeping a close watch on power utility PPC as a result of the corporation’s strategic turn to renewable energy.

They include Bell Rock Capital, Sephora Investment Advisors, Waterwill Capital Management, Cleargate Capital, Golden Tree Asset Management, Helm Investment Partners, Knighthead Capital Management, Craftsman Management, Colt Capital Partners and Kirkoswald Αsset Μanagement.

 

 

 

 

 

PPC turn to renewable energy backed by BNEF report findings

Wind and solar energy production costs will be lower than those of existing natural gas-fueled power stations by 2025, according to a BloombergNEF analysis on Greece’s electricity market.

The projection vindicates the power utility PPC’s decision to turn to renewable energy, the corporation’s head has indicated.

“The conclusions of the BNEF report are in full agreement with the key pillars of our new strategy,” PPC’s chief executive Giorgos Stassis said.

Installed wind and solar energy capacity will have quadrupled by 2025 compared to present levels, and renewable energy sources will have captured an energy mix share of nearly 50 percent, toppling fossil fuel from its dominant position, even if RES subsidies are not offered for existing technologies such as solar and wind, according to the BNEF analysis.

“The ever-increasing competitiveness of renewable energy sources also confirms, from an economic point of view, our choice to restructure our portfolio and transition our production towards renewable energy sources,” Stassis noted. “By focusing on clean energy, we can achieve a decarbonization of our activities in electricity generation and also reduce the cost of electricity for consumers.”

In addition, the report highlights the important role of consumers as key players in the future energy system, the PPC chief noted.

This supports PPC’s decision to develop a new customer-oriented approach and offer a reinforced portfolio of products and services, using new technologies and digital systems, according to Stassis.

Utilizing lower generation costs offered by wind and solar energy production, PPC will be well positioned for leading roles in other energy sectors, beginning with electromobility, the PPC head supported.

According to the BNEF report, Greece can establish itself as one of the EU’s energy transition leaders.

Lower-cost solar and wind energy production, as well as storage systems, plus increased CO2 emission right costs, are all radically transforming the country’s energy system, the BNEF report noted.

Greece is expected to gain an additional 18 GW in generation capacity by 2030, 67 percent of this increased output represented by wind and solar energy.

Ministry preparing to request RES auctions extension

The energy ministry is preparing to submit an official request to Brussels for an extension of up to three years for RES auctions – both mixed and separate (solar, wind) technologies – a support system securing fixed 20-year tariffs for new wind and solar energy installations.

Greece’s current auction system expires at the end of this year. The energy ministry may seek an extension until the end of 2023, when RES auctions will no longer be available in the EU. A request for a shorter extension is also being contemplated at the ministry.

The energy ministry’s secretary-general Alexandra Sdoukou has called a meeting for September 18 to involve the participation of all related authorities for decisions before the official extension request is drafted.

A technical report published by global service provider GIZ, analyzing  Greece’s RES auctions over the past three years, RES market achievements during this period, as well as problems that have emerged, will serve as a base for the talks at the upcoming meeting.

The energy ministry wants to prevent any momentum drop in the RES market and believes fixed tariffs, through auctions, over extended periods are necessary as they secure financing for RES projects, and, by extension, their development.

On the other hand, the ministry does not want to overburden the market through excessive RES special account obligations.

Dutch offshore wind energy experience a guide for Greece

Local authorities and investors have turned to the Netherlands for information on the development of offshore wind energy parks.

Offshore wind energy parks in the Netherlands currently represent a capacity of 1 GW, expected to soon rise to 2.5 GW.

Local interest in this RES technology is growing, as highlighted by ongoing talks and public consultation for a related legal and regulatory framework.

In addition, the economic and commercial affairs department of the Greek Embassy in The Hague has prepared a detailed report on the Dutch wind energy sector, focused on offshore wind energy parks.

The Dutch government offers a number of competitive incentives to stimulate energy innovation and promote RES use, which, as a result, has strengthened the country’s position in RES research and development and in particular in wind turbine technology, the report notes.

This is further strengthened by strategic public-private partnerships and world-class institutions such as the Top Consortium for Offshore Winds (TKI Wind op Zee), the Energy Research Center (ECN) and Delft University of Technology, a leading specialist, worldwide, in the field of renewable energy, the report added.

 

Cox Enterprises begins Greek RES entry with Panagakos deal

Cox Enterprises, a privately held global conglomerate headquartered in the US and holding interests primarily in automotive services, communications and media, has reached an agreement with Spec Solaris, a member of the Panagakos Group, for the immediate purchase and development of solar energy farm projects with a total capacity of 18 MW.

These projects represent part of a 275-MW package of 43 PV parks in mainland Greece and the Peloponnese for which the Panagakos Group has secured tariffs.

This deal is expected to be the American investment company’s first of more to come in Greece. Cox Enterprises, currently pursuing investment opportunities in various sectors around the world, is believed to be aiming to amass a Greek RES portfolio of about 1 GW.

The American investment fund, which appears to have sought RES capacities of approximately 400 MW in Greece in the past, through other companies, is currently seeking further acquisitions of solar and wind projects in Greece, either under construction or at a mature stage. It has held talks with Greek companies without reaching any agreement so far.

The first batch of 18 MW in Spec Solaris solar energy projects to be acquired by Cox Enterprises must be ready by January, 2021, meaning their installation needs to be carried out swiftly if binding terms are to be honored.

The American investment company is believed to have reached an agreement with a listed Greek firm for the project’s construction.

The American investment firm is expected to soon also acquire the remaining 257 MW of solar energy park capacities held by the Panagakos Group. These have completion deadlines ranging between April and October in 2022.

The 275-MW package held by Spec Solaris was inducted into a fast-track procedure for strategic investments a decade ago.

Cox Enterprises is believed to be one of dozens of foreign investment funds seeking to make a dynamic entry into the Greek RES market, especially the PV sector, offering attractive terms, including fixed 20-year yields.

 

 

 

 

 

 

Solar, wind project tariffs at time of project readiness

The energy ministry is preparing a legislative revision to secure tariff levels for solar and wind energy projects at the time of their certified readiness – by distribution network operator DEDDIE/HEDNO – not electrification, as is the case at present.

Energy ministry officials are convinced of this revision’s necessity as, in many cases, RES investors have completed the development of their projects but DEDDIE/HEDNO, for various reasons, cannot promptly offer grid connections for these projects, meaning tariff-related opportunities can be missed.

DEDDIE/HEDNO has expressed its support for the energy ministry’s planned revision. As part of the new procedure, the operator will conduct on-site inspections to confirm whether projects are ready for electrification before providing related certificates.

The overall revisions are expected to take two months to complete and be ready for implementation ahead of reference price changes scheduled for November 26. The energy ministry is expected to submit a legislative revision to Parliament within September.

Recovery fund support for RES assembly lines, wind farms

Assembly lines for RES project equipment such as cables and pylons, as well as the development of infrastructure to host offshore wind farms, will feature in energy ministry proposals for funding support through the European Commission’s new recovery plan.

The environment and energy ministry, along with all other ministries, have been given until August 24 to submit their proposals to the Prime Minister’s office for project funding support through the European Commission’s new recovery tool, Next Generation EU.

The proposals from all ministries will then be shaped into a national plan that will then be delivered to Brussels in October for approval.

EU funding support for RES-sector assembly units and offshore wind farm infrastructure would come as an addition to other eco-friendly initiatives taken by the energy ministry, including a third round of subsidy support for domestic energy efficiency upgrades through the Saving at Home program; upcoming subsidies for electric vehicle purchases; green economy investments; and grid network development.

Thoughts for the development of RES equipment assembly lines in Greece had first been aired about a decade ago, but, at the time, the country’s RES sector was too small to make such plans feasible.

New wind farms offering a total capacity of 727.5 MW were connected to Greece’s grid last year, a record-level performance for the country.

 

PPC Renewables OKs terms for Motor Oil joint venture, a 100-MW wind farm

The board at PPC Renewables has approved the fundamental terms of a prospective agreement with Motor Oil for the development and construction of a 100-MW wind farm on one of the Greek islands, still unspecified, energypress sources have informed.

On another front, PPC Renewables yesterday announced a tender for the construction of a 50-MW solar energy complex project in Megalopoli, Peloponnese, whose budget is estimated at 30.7 million euros, not including VAT.

The winning bidder, to be selected through an online auction scheduled for September 30, will be tasked with the Megalopoli project’s design, procurement, transportation of materials and installation of the project’s two parks and substation.

The Megalopoli project will be comprised of two solar energy parks, one with an 11-MW capacity, the other 39 MW.

The project’s 11-MW section recently secured a tariff of 49.11 euros per MWh at an auction staged by RAE, the Regulatory Authority for Energy. The 39-MW section will operate within the target model’s framework, through two-way power purchase agreements with power utility PPC, PPC Renewables’ parent company.

Meanwhile, preliminary procedures are progressing rapidly for the development of another PPC Renewables-PPC solar energy project, in northern Greece’s Ptolemaida region, until now a lignite-dependent local economy. This project’s planned capacity, 230 MW, makes it one of Europe’s biggest solar energy projects. The project promises to play an important role in Greece’s decarbonization effort.

Work began last month on two smaller 15-MW units to represent part of the overall 230-MW project. Work on the main 200-MW section is expected to commence in January.

Over 300 jobs are expected to be created for the Ptolemaida project’s construction needs, offering vital support for the local economy.

Authority issues new wave of RES licenses for 27 projects, 491 MW

RAE, the Regulatory Authority for Energy, has just issued 27 RES producer certificates for as many projects, taking the tally of this new certificate, part of the government’s RES licensing simplification process, to 33.

The authority issued a first wave of new producer certificates towards the end of last month.

The 27 new producer certificates, issued by RAE yesterday, concern eight wind energy parks offering a total capacity of 171.15 MW, 17 solar energy projects with a total capacity of 318.48 MW, and two small-scale hydropower projects offering 2.1 MW, their overall capacity being 491.73 MW.

Four photovoltaic facilities planned by Consortium Solar Power in central Greece’s Fthiotida and Larissa areas, totaling 284 MW, are standout projects in terms of scale.

Enel Green Power was also well presented in this licensing round with a total of six projects, all solar, three of these in Xanthi, northeastern Greece, totaling 7.07 MW, and one each in Rodopi (2.72 MW), Kozani (3.6 MW) and Ioannina (1.99 MW).

As for the two small-scale hydropower projects just issued licenses, one, offering a capacity of 1.54 MW, belongs to the Koryfi K2 Energiaki company, the other, 0.6 MW, to Hydroilektriki.

Germany’s ABO Wind dominates RES auction’s PV category

Germany’s ABO Wind was the most dominant bidder at Greece’s latest RES auction, earlier this week, securing approximately one third of the photovoltaic section’s total capacity for five 10-MW projects in Igoumenitsa, northwestern Greece, according to a PV-Magazine report.

The German energy group submitted the auction’s lowest bids, 0.04586, 0.04587 and 0.04883 euros per KWh.

Wind energy projects secured a far greater total capacity than photovoltaics at the auction, 481 MW compared to 142 MW. Also, photovoltaics registered new record-low tariff prices for the Greek market.

Heliotherma secured tariffs for two solar energy parks of 11.9 MW each in Thiva, northwest of Athens at prices of 0.053 euros per KWh. Metka secured tariffs for four projects representing a total capacity of 11 MW.

Other successful bidders included PPC Renewables, securing tariffs for an 11-MW solar park, part of a planned 50-MW complex, in Megalopoli, Peloponnese.

The auction’s highest tariff price was 0.06245 euros per KWh, while the average was 0.04981 euros per KWh. A total of 39 projects secured tariffs at the auction.

Tariff prices for the auction’s wind energy section ranged from 0.05386 euros per KWh to 0.0577 euros per KWh.

RES auction prices down in both wind, solar categories

Wind-energy capacity bids at a RES auction staged this morning fell as low as 53.86 euros per MWh, while, in the photovoltaic category, bids dropped to a level of between 45 and 46 euros per MWh, sources informed.

Levels were lower than those registered at the most recent RES auction, last December.

A capacity of about 10 MW was left over for wind energy installations while the entire capacity on offer for photovoltaics was taken up.

Successful bidders included PPC Renewables, for an 11-MW solar energy facility, part of a 50-MW solar park in Megalopoli, Peloponnese.

A total of 52 projects representing an overall capacity of 199.43 MW took part in Category 1, for solar energy projects of up to 20 MW. Investors behind these projects competed for 142.45 MW.

Category 2, for wind energy projects of up to 50 MW, drew 25 projects representing a total capacity of 748.37 MW. Investors competed for 481.45 MW.

At the most recent RE auction, last December, the average price for solar energy projects of up to 20 MW ranged between 65.99 euros per MWh and 53.82 euros per MWh, averaging 59.98 euros per MWh.

Prices, last December, for wind energy projects of up to 50 MW ranged between 61.94 euros per MWh and 55.77 euros per MWh, averaging 57.74 euros per MWh.

Terna Energy sells Idaho wind farm for profit of more than $30m

Greece’s Terna Energy has announced the sale of its 138-MW Mountain Energy wind energy park in the US state of Idaho to Innergex Renewable Energy for a sum of 215 million dollars, securing a profit of more than 30 million euros.

This facility’s operating profit in 2019 reached 17.6 million dollars.

Following the sale of its Idaho unit, Terna Energy, which entered the American green energy market in 2011, now owns and operates three wind energy parks with a total capacity of approximately 512 MW, all in the state of Texas.

“Approximately ten years ago, we took a strategic decision to expand our investment program into the US market. This decision has proven to be extremely beneficial for the group and its shareholders as, besides the significant increase in group profitability, it has also offered major gains and capital for our new investment program,” noted Giorgos Peristeris, CEO at Terna Energy. “We have already planned 1.7 billion euros of investments in Greece for the green energy, pumped storage and waste management sectors,” he added.

Terna Energy will continue to bolster its growth in the US green energy market, Peristeris noted.

The company is focused on investment opportunities that promise big gains for shareholders, he said.

Terna Energy’s portfolio is now comprised of facilities – operational, under construction or at the pre-construction stage – with a total capacity in excess of 1,800 MW in Greece, the US, central and eastern Europe.

The group aims to increase its total installed capacity to 2,800 MW over the next five years.

 

New Peloponnese RES project applications deferred to 2021

Distribution network operator DEDDIE/HEDNO and power grid operator IPTO have written off any possibility of accepting new RES connection applications in 2020 for new solar and wind energy projects, as well as other technologies, but application procedures could recommence in 2021, energypress has been informed.

Authorities face the challenging task of managing an enormous level of RES investment interest, especially for solar energy projects, before procedures for new-project applications can restart.

In the Peloponnese, where RES development has been held back by system saturation for seven years, a new IPTO study is still needed on the capacity to become available once two transmission networks, the west and east corridors, are completed.

Once IPTO has delivered this study, RAE, the Regulatory Authority for Energy, should lift its saturation-related ban on new RES projects in the Peloponnese and also set capacities available for each technology – wind, solar, small-scale hydropower, biomass-biogas.

However, IPTO’s delivery of the west and east corridors in the Peloponnese does not promise a complete solution as these lines, limited to 400-KV capacities, are well below capacities represented by the level of investment interest.

A fair and effective competitive procedure serving as a selection process will need to be established.

RES auction for Crete wind, solar installations at end of year

A RES auction to offer respective 100-MW capacities for new wind and solar energy installations on Crete is still quite a long way off and will, at best, be staged towards the end of this year or early in 2021, energypress sources have informed.

Crete’s network for wind and solar energy facilities is currently saturated, according to technical standards provided in an older decision by RAE, the Regulatory Authority for Energy.

However, studies conducted by the National Technical University of Athens (NTUA) and power grid operator IPTO both support that RES station output of between 180 and 200 MW can be safely absorbed by the Cretan network once the island’s grid is interconnected with that of the Peloponnese.

The island’s overall capacity boost is expected to reach between 2,000 and 2,500 MW once the major-scale grid interconnection, linking Crete with Athens, is completed.

A RAE proposal forwarded to the energy ministry has called for wind and solar energy auctions offering respective installation capacities of 100 MW, the aim being to cover investment demand and also boost power capacity on the island, still using diesel and pressed hard to resolve energy-sufficiency issues in the summers.