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.

PPC, Terna, Copelouzos resume talks for Crete RES partnership

Power utility PPC has resumed talks with Terna Energy and the Copelouzos group for a consortium to develop RES projects on Crete, but work is still needed if institutional complications are to be resolved.

The plan’s viability will depend on whether the consortium – if formed – can secure a contract with power grid operator IPTO to ensure a capacity reservation in the prospective Crete-Athens grid interconnection.

Approximately three years ago, Terna Energy and the Copelouzos group decided to merge two respective wind-energy projects covering Crete’s four prefectures, which took their combined capacity total to 950 MW, in order to facilitate an EU funding effort.

PPC also entered the picture just months ago, prior to the pandemic’s outbreak, for talks on the establishment of a three-member consortium. PPC Renewables, a PPC subsidiary, possesses wind-energy capacity on Crete.

The prospective venture planned by the trio entails transmission and sale to the mainland of 1 GW generated by wind-energy facilities. Each partner would hold a 33.3 percent stake in this venture.

 

 

Mixed RES auctions extension sought, ‘vital for grid stability’

The energy ministry is preparing to seek approval from the European Commission’s Directorate-General for Competition for an extension of at least two years for current RES auction regulations enabling separate auctions for wind and solar unit installations, as well as mixed sessions.

The current format is valid until the end of this year. If the DG-Comp rejects the ministry’s bid, then Greece will only be permitted to stage mixed RES auctions, until 2024.

Officials at the energy ministry and RAE, the Regulatory Authority for Energy, agree that RES auctions for separate technologies have been particularly effective and fruitful and should be given more time.

Energy ministry officials are currently preparing Greece’s application with supporting arguments.

In its extension bid, the ministry will stress that both major-scale wind and solar energy installations are necessary for grid stability.

It will also note that the characteristics of Greece’s landscape offer solar projects a competitive advantage, meaning that staging mixed RES auctions, only, would result in solar-project dominance and little capacity for wind energy tariffs.

Also, the ministry, in its quest, will insist that grid stability requires the development of smaller RES units at various network points and close to consumption centers. This, it will contend, cannot be achieved through mixed auctions, typically dominated by large-scale projects.

 

Ministry examining delayed RES auction feasibility for July date

Energy ministry officials are examining a number of factors to determine whether the next RES auction for new wind and solar energy project installations can be held in July.

An original plan to stage this auction in June has already been ruled out. If a date in July is not feasible, then the session will need to be delayed until the year’s final quarter.

Ministry officials would rather avoid such a scenario as they do not want to give investors the impression of wider coronavirus-induced devastation in the sector.

A successful RES auction on April 2 was greeted by the energy ministry as a positive sign for the sector.

The number of mature projects ready to participate in the next auction is a key factor being examined at the ministry.

RAE, the Regulatory Authority for Energy, wants 482 MW of wind energy projects and a further 482 MW for solar energy projects offered this year.

A second factor being considered at the ministry is whether RAE, currently understaffed, can administratively support an auction in July.

Also, the tenures of RAE’s head official, deputy and a board member expire on June 23. This could also complicate the authority’s ability to stage an auction in July.

 

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.

Motor Oil, PPC Renewables in talks for major wind energy park

Talks between PPC Renewables and the Motor Oil Hellas group for joint development, installation and operation of an island-based wind energy farm with a capacity of approximately 100 MW have reached an advanced stage, sources have informed.

The project’s feasibility, however, will depend on the development of a grid interconnection with the mainland system.

PPC Renewables and Motor Oil are currently examining details concerning the prospective wind farm’s sustainability, interconnection and financing. Once they have reached conclusions, the two sides will decide on whether to proceed with the project.

PPC Renewables and Motor Oil have already joined forces to express first-round interest in a tender offering a stake in DEPA Trade, a new entity established by gas utility DEPA.

PPC Renewables has set as a strategic objective the formation of partnerships with domestic and foreign players for new projects not included in the existing portfolio of parent company PPC, the power utility. PPC Renewables intends to develop these new projects without involvement by PPC.

The company’s wind energy park plan with Motor Oil could serve as a base for more projects involving the two sides.

PPC Renewables has already planned a series of collaborations with foreign partners, including Germany’s RWE, UAE group Masdar Taaleri Generation  D.O.O. (MTG), as well as EDP Renoveis, a Portuguese company with a Chinese main shareholder. PPC Renewables is striving to have developed RES projects with a total capacity of 1.5 GW by 2024.

Motor Oil has made clear its plan to broaden its portfolio with emphasis on green energy. The refining group wants to establish a solid presence in the renewable energy market through acquisitions and partnerships.

Motor Oil has already completed two acquisitions, a wind-energy purchase from Stefaner and a solar energy project acquisition from Metka EGN, a member of the Mytilineos group.

 

Withholding tax cut for RES licenses bigger than planned

The energy ministry has responded favorably to a call by renewable energy producers, primarily wind energy farmers, for a reduction of withholding taxes concerning licenses issued in 2017, 2018 and 2019.

This tax cost will be reduced to one third of its regular amount – 1,000 euros per megawatt, annually – for licenses issued during the three-year period and will be payable over two installments, energypress sources have informed.

An amendment facilitating the tax revision will be attached to a draft bill covering various environmental matters, expected to be submitted to parliament either today or tomorrow, the sources added.

The revision promises an even greater tax reduction for RES licenses compared to a previous plan that had envisioned a 50 percent cut.

The government plans to abolish this withholding tax for RES licenses issued as of 2020 as part of a series of key changes aiming for investor-friendly simplification of the RES licensing procedure.

Energy ministry examining prospect of RES auction postponements

The energy ministry is examining current wind and solar energy market data to decide on whether to stage RES auctions for new project installation capacities in June or July, as was originally planned, or to postpone these sessions for the final quarter of the year.

The ministry would rather stick to the original plan as it wants to avoid creating an impression of a wider freeze by the coronavirus pandemic on plans.

A successful mixed RES auction on April 2 was heralded by the ministry as solid proof of a market still operating in proper fashion.

However, the extended lockdown has necessitated a reexamination of market data by ministry officials as project maturation in the RES sector has been impacted by the pandemic’s consequent conditions.

At the distribution network operator DEDDIE/HEDNO, examination and processing procedures of investor applications for new connection terms have slowed down considerably.

The same goes for municipal authorities and other public agencies involved in the licensing process of new RES projects.

It is feared this overall slowdown could diminish the number of projects investors will be prepared to take to the RES auctions, staged by RAE, the Regulatory Authority for Energy.

RES auction dates have been postponed in most other European countries in recent times.

 

IPTO island links over next 10 years to offer 2.6 GW capacity

Power grid operator IPTO’s interconnections planned for the next decade will prepare the ground for new island-based RES projects representing a total capacity of 2.6 GW.

The operator’s ten-year national electricity grid development plan for 2021 to 2030, forwarded to RAE, the Regulatory Authority for Energy, for approval, offers major investment opportunities in the renewable energy sector.

Wind and solar energy farms operating on islands will be able to transmit their output to the mainland via underwater cables.

The IPTO ten-year plan offers a RES project installation capacity of 2,442 MW for Crete, the Cyclades, the Dodecanese and the northeast Aegean islands. This capacity represents potential investments estimated at 2.6 billion euros.

The completion of all four phases of the Cyclades interconnections, scheduled for the second half of 2024, will offer 332 MW for this region. Andros and Tinos will have a RES installation capacity of 72 MW, the capacity for Syros, Paros, Mykonos and Naxos will total 160 MW, while Santorini, Folegandros, Milos and Serifos will be offered a 100-MW installation capacity.

The completion of Crete’s small-scale mainland interconnection to the Peloponnese, scheduled for the second half this year, will offer a RES installation capacity of 160 MW. A further 600 MW will be added once the island’s major-scale interconnection to Athens is completed in 2023, when Crete’s wind and solar energy capacity total of new and existing RES projects is expected to reach 1,080 MW.

The RES expansion capacity on the Dodecanese and northeast Aegean islands will reach 1,030 MW, according to the IPTO ten-year plan. Samos, Chios and Lesvos will be offered a 360-MW share of this total; Limnos, Kos, Rhodes and Karpathos will get 570 MW, while Skyros will be offered the remaining 100 MW.

The grid interconnections in the island regions will be developed over three phases to be respectively completed in 2027, 2028 and 2029, according to the IPTO plan.

 

RES auctions postponed throughout Europe

Governments throughout Europe are postponing RES auctions as a result of the coronavirus pandemic’s impact on markets.

Germany, France and Ireland have already taken steps back to protect new RES projects, currently at various development stages, according to a Green Tech Media report.

Germany had planned seven RES auctions for this year. The country has so far offered 400 MW for solar energy projects and 675 MW for wind farms, while a further 2.9 GW for onshore wind farms and 1.4 GW for solar energy facilities remain pending. Strong investment interest had been expressed prior to the postponements.

In France, a RES auction for solar energy projects has been postponed by two months. In Ireland, a session that had been planned for April 2 has now been rescheduled for April 30. Portugal has also postponed a RES auction offering 700 MW for solar energy projects.

On the contrary, Dutch authorities intend to press ahead with a RES auction at the end of this month, offering 700 MW for wind farms. Swedish multinational power company Vattenfall’s Dutch subsidiary has announced it will not participate.

 

 

 

RES generation in EU captures record share of energy mix

Renewable energy generation captured a record-high 35 percent share of the EU’s energy mix in the fourth quarter of 2019, up from 31 percent a year earlier, primarily as a result of record generation levels registered by the hydropower and wind energy sectors, latest European Commission data has shown.

Hydropower production rose significantly, by over 16 TWh year to year, while major gains were achieved by the wind energy sector, whose onshore wind farms grew by 9 TWh, or 9 percent year to year, and offshore wind farms registered a record year-to-year increase of 3.3 TWh, 18 percent.

Overall RES generation in December totaled 105 TWh, a new record level for the month, as a result of favorable conditions for wind farms and record hydropower production levels.

On the contrary, the energy mix share of fossil fuel fell to 39 percent in the fourth quarter of 2019, down from 42 percent a year earlier.

Greenhouse gas emissions in EU electricity generation fell by approximately 12 percent in 2019 as a result of the increase in RES production and a turn from coal to gas.

CO2 emission right costs increased by 57 percent year to year, to 25 euros per ton, according to the European Commission data.

 

 

Wind energy covered 32.6 pct of total energy demand in Greece on Monday, EWEA reports

Wind energy covered 32.6 pct of total energy demand on Monday, according to figures given by the European Union for Wind Energy (EWEA), of which ELETAEN is a member.

This places Greece second in the European rankings (after Romania with 35 pct and marginally above Denmark with 32.4 pct). The Greek performance is more than double the European average (16.1 pct) .

According to the relevant estimates, the good Greek performance was due, on the one hand, to the weather conditions on Monday, with strong winds prevailing in the country, as well as, on the other hand, to the relatively low demand that is always observed at this time of year.

Wind energy remained constant throughout the past 24 hours at 1.8-1.9 gigawatts and was four times that produced by lignite, which hovered at around 500 megawatts. The contribution of photovoltaics fluctuated at around 650 megawatts during sunny periods while natural gas-burning plants ranged from 680 megawatts to 3 gigawatts at peak hours (5-6 in the afternoon) when they were called to meet the highest demand of the day.

(ANA-MPA)