‘RES hurdles keeping Greece 80% reliant on fossil fuel imports’

Terna Energy president Giorgos Peristeris has spoken out against the country’s energy policy, citing a number of factors which he believes are restricting the development and greater market penetration of renewables and energy storage projects, including pumped-storage stations.

The Terna Energy chief, speaking at the group’s annual shareholders’ meeting yesterday, blamed the state, regional and municipal authorities for RES project delays, which, he noted, have kept the country 80-percent dependent on fossil fuel imports for energy.

Peristeris noted it is ironic that a country such as Greece, endowed with over 330 days of sunshine a year, rich wind energy potential in mountain areas and seas, and landscape favoring the development of hydroelectric and pumped-storage projects, opposes, in various ways, the production of clean, domestic and free energy, instead remaining dependent on imported fossil fuels.

He also described as “outrageous” the daily energy sufficiency concerns of operators at a time when energy storage technology has made tremendous progress.

Peristeris described the resistance raised by assorted groups opposing the installation of wind energy facilities in various parts of the country as  “hypocritical”.

Consumers and taxpayers would have paid an additional 4 billion euros for their electricity over the past 18 months without the contribution of wind farms, he contended.

The Terna Energy president went on to say that unwarranted fears about wind turbines are being expressed at a time when coastal areas, mountains and streams are suffering irreversible and destructive intervention as a result of numerous arbitrary constructions.

Casting more blame on the state, he noted that the public remains largely unaware of the fact that 3 percent of annual gross revenue accumulated by RES ventures is returned to local municipalities.

 

Next mixed RES auction offering Europe’s lowest starting prices

RES auction starting prices in Greece have, contrary to other European markets, remained unchanged at levels set earlier this year ahead of a  session in September and, as a result, are currently the continent’s lowest.

Several months ago, local authorities set RES auction starting prices of 54 euros per MWh for solar energy and 63 euros per MWh for wind energy.

The energy crisis and its escalated wholesale electricity prices prompted – in more recent times – countries such as Germany to offer investors generous increases in RES auction starting prices.

These rises were offered in parts of the continent after European RES auctions held in 2022 failed to attract the anticipated level of interest from investors, leaving significant amounts of unwanted capacities, including in Greece.

Berlin raised its RES auction starting price for solar energy to 73 euros per MWh from 60 euros per MWh for a session in March. The initiative drew a satisfactory number of participants.

Serbia, preparing for its inaugural RES auction, is offering a starting price of 105 euros per MWh for wind energy and 90 euros per MWh for solar energy to attract investors.

Italy, for its most recent RES auction, in May, set a starting price of 65 euros per MWh for solar energy, the same level set by Spain for its most recent RES auction.

The UK recently offered a starting price of 54.8 euros per MWh for solar energy and 61.9 euros per MWh for wind energy.

Returning to Greece, it remains to be seen if the de-escalation in electricity prices of late will prompt investors to choose RES auctions for their project tariffs or instead opt for other solutions such as PPAs.

 

Next mixed RES auction planned for September

The country’s next mixed RES auction is planned to be staged in September, according to a latest ministerial decision. Its official announcement, by RAAEY, the Regulatory Authority for Waste, Energy and Water, is expected to be made in mid-August.

The intention to stage the next mixed RES auction in September is not coincidental as, judging by latest indications, the authority will be focused on staging an inaugural auction for energy storage units over the preceding two months.

RAAEY expects to announce the forthcoming auction for standalone batteries a little after mid-June. Bids by participants are expected to face an early-July deadline.

September’s RES auction is planned to be staged as three sections, one each for solar and wind energy facilities, plus a combined section.

Starting prices for the mixed RES auction have been set at 54 euros per MWh for solar energy facilities and 63 euros per MWh for wind energy units, while a maximum capacity of 1,200 MW will be offered, including approximately 460 MW that was left over from a mixed RES auction in September, 2022.

The RES auction for solar energy units will be open to small-scale facilities with capacities of up to 1 MW. Investors behind these projects will bid for tariffs representing a total capacity of 200 MW at a starting price of 70 euros per MWh.

The RES auction for wind energy units will be open to small-scale units of up to 6 MW. A total of 100 MW will be offered at a starting price of 83 euros per MWh.

New RES spatial framework identifying wind energy areas

An energy ministry committee working on Greece’s updated spatial framework for RES facilities, an effort now into its second stage, has been tasked with accurately identifying the country’s Wind Priority Areas (PAP) and Wind Suitability Areas (PAK).

The committee plans to identify these areas in collaboration with the Center for Renewable Energy Sources (KAPE/CRES) and RAE, the Regulatory Authority for Energy, the aim being to redefine exploitable wind energy potential in PAP and PAK areas, a decisive factor for the design of wind energy installations.

The energy ministry intends to consider the inclusion of areas for which strong investment interest concerning RES installations has been expressed.

The current RES spatial framework’s ground coverage limits for PAP and PAK areas, standing at 8 and 5 percent per municipality, respectively, will be adjusted to ensure RES installation capacities in PAP areas are greater than those in corresponding PAK areas.

As for the solar energy sub-sector, revisions to be considered by the committee include reducing the maximum soil coverage of PVs on farmland to 3 percent per region.

Furthermore, the revised framework’s new regulations for offshore wind farms will need to be adjusted to accurately reflect those of the National Offshore Wind Farm Development Program. This initiative will be conducted in cooperation with EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company.

Delivery of the updated RES spatial framework has been given a deadline extension until the end of March, 2024, based on a recent energy ministry decision.

Motor Oil’s Unagi takeover secures sizeable solar energy portfolio

Motor Oil’s 75 percent acquisition of Unagi, controlling 51 percent of RES companies Baliaga, Pivot Solar and Teichio, creates a solid foundation for the petroleum group to expand in the RES sector, especially solar energy, a sub-sector in which its investments have lagged behind as a result of a focus on wind energy projects, the group’s leadership informed analysts during a presentation of 1Q results.

Motor Oil’s takeover of Unagi primarily concerns a portfolio of licenses rather than RES projects in operation. Baliaga, Pivot Solar and Teichio hold licenses for solar energy projects throughout Greece.

The petroleum group is taking on a 1.9-GW portfolio capacity through the acquisition, of which approximately 380 MW are close to securing connection terms and are expected to be fully constructed within the next year and a half.

The amount agreed to by Motor Oil for the acquisition is 10 million euros, a relatively modest sum as it mostly concerns licenses, analysts were informed by the group’s leadership.

Motor Oil’s share of the cost for RES projects to be developed by Unagi as a first phase is estimated at 100 million euros, the group’s leadership informed.

Motor Oil’s administration, responding to a question on whether it had completed its cycle of purchases in the RES sector with this acquisition, informed it probably had done so as it now finds itself having exceeded goals set. The focus will now be on developing the portfolio’s projects, the group’s leadership stressed.

EU’s RES installations in ’22 climb to record level

Wind and solar energy installations reached a record level in the EU last year, adding 57 GW to the continent’s grid, a 16 percent year-on-year rise, according to a European Commission report for the fourth quarter in 2022.

These increased RES installations helped renewable energy capture an increased share of the EU’s energy mix in 2022, rising 39 percent, up from 38 percent in 2021, the Brussels 4Q report showed.

Solar energy output rose by 26 percent in 2022, offering an additional 41 TWh, onshore wind farm generation increased by 10 percent, or 33 TWh, while offshore wind farm production grew by 4 percent, delivering an additional 2 TWh to Europe’s grid.

Solar and wind energy’s combined output in 2022 rose by 14 percent, offering an additional 76 TWh, according to the report.

Hydropower generation fell by 17 percent, or 61 TWh, as a result of dominant drought periods in a number of European countries during 2022.

Nuclear energy generation was also down in the EU last year, falling 17 percent, or 118 TWh, as a result of disruptions and facility maintenance delays in France.

The European Power Benchmark, the continent’s average wholesale baseload electricity price, rose 121 percent in 2022 compared to a year earlier, reaching 230 euros per MWh, the 4Q report showed.

Italy recorded Europe’s highest average wholesale electricity price in 2022, at 304 euros per MWh, followed by Malta, at 294 euros per MWh, Greece, at 279 euros per MWh, and France, at 275 euros per MWh, the European Commission report noted.

Two mixed, two technology-specific RES auctions this year

The energy ministry is laying the groundwork to stage four RES auctions during the remainder of 2023, offering a total capacity of 1,600 MW. Two of these sessions will be mixed RES auctions while the other two will be technology-specific.

The ministry is preparing to sign a ministerial decision that will enable these auctions to be staged. They will be open to both small and large-scale solar and wind energy facilities.

The same ministerial decision will also launch a pilot auction for green-energy facilities combining batteries into their operations. A total of 200 MW will be offered to investors through this auction.

All the aforementioned competitive procedures are foreseen in a new support scheme that was given the green light by the European Commission in late November, 2021. One mixed RES auction has already been held within this plan’s framework.

Two mixed RES auctions offering a total capacity of 1,200 MW will be staged for large-scale wind energy facilities with capacities exceeding 6 MW and solar energy parks with capacities over 1 MW. According to sources, auction starting prices will be set at 63 euros per MWh for wind energy units and 54 euros per MWh for solar farms.

The imminent ministerial decision will also enable the staging of two technology-specific RES auctions in 2023, both for small-scale projects. One will concern solar energy units with capacities of less than 1 MW and offer a total of 100 MW at a starting price of 70 euros per MWh.

The second of these two technology-specific RES auctions will concern wind energy facilities with capacities of less than 6 MW, at a starting price of 83 euros per MWh.

 

Starting price for next RES auction ahead of May 21 vote

The energy ministry is pushing to deliver, ahead of the May 21 legislative election, a ministerial decision setting a starting price for the next RES auction.

If issued prior to the legislative election, the ministerial decision will pave the way for RAAEY, the Regulatory Authority for Waste, Energy and Water, to stage a second auction offering remuneration to major-scale green energy power stations regardless of the outcome of the upcoming election.

The government is now taking initiatives to settle a variety of energy-sector matters prior to the May 21 election as a second round of voting, if needed, will be held between one and one-and-half months later, stagnating concerns during the inter-election period.

The energy ministry recently announced a two-month package of electricity subsidies for consumers covering May and June, instead of continuing its support on a month-by-month basis.

The second auction offering remuneration to major-scale green energy power stations will, once again, be open to investors behind solar energy facilities of over 1 MW and wind energy facilities of more than 6 MW.

The total capacity to be auctioned off is expected to exceed 1 GW. A left-over capacity of approximately 475 MW from the first auction will be made available to investors in the second auction.

 

RES spatial plan revision to be passed on to next government

The country’s revised RES spatial plan, a tricky task requiring authorities to strike the right balance between the conflicting concerns of environmental groups and investors, will be delayed until after Greece’s forthcoming general elections, scheduled for May 21, as the issue could develop into a damaging debate for rival political parties.

Though a new RES spatial plan, to replace a version from 2008, has almost been completed by authorities and scheduled for delivery to the energy ministry by late April, it now appears certain that the next government will need to take on the task of forging a plan that satisfies as many conflicting interests as possible.

The revised spatial plan nearing completion addresses rules concerning so-called “wind priority” and “wind suitability” areas that may host RES projects, and also takes into account Natura restrictions for environmental protection.

It also factors in the increased size of turbines since the country’s RES spatial plan from 2008, meaning issues such as distance between such facilities and their impact on the environment have been reexamined. Size restrictions concerning wind energy facility installations at certain areas have been taken into account.

Wind energy installations at mountain areas is another matter of concern. At present, eight mountain ranges in various parts of Greece are included in the country’s RES spatial plan.

In addition, the revised RES spatial plan’s details aim to keep the strategy compatible with National Energy and Climate Plan targets.

 

IPTO’s necessary RES injection limits universal, proportional

Power grid operator IPTO is examining a number of factors concerning periods that combine low domestic electricity demand with high RES production, the most recent example being the March 25-26 weekend, in order to decide on an optimal formula protecting the grid’s security and stability.

Net-export periods limit the need for extraordinary measures, while, on the contrary, net-import periods require far greater caution.

Getting the balance right for an optimal formula regarding RES contributions to the grid is far trickier when high RES output primarily stems from abundant sunshine. Under such conditions, significant proportions of green-energy injections are provided by small-scale PV units not detectable by DEDDIE/HEDNO, the distribution network operator, as a result of the grid’s shortage of telemetrics, which offer automatic measurement from remote sources. If the grid were equipped with sufficient telemetrics, the operator’s task of intervening accordingly to get the balance right would be made simpler.

Conditions combining low electricity demand and high RES production are a new reality that will continue to exist for many years, until energy storage technologies have matured sufficiently and become an integral component of the grid.

Until then, IPTO must – and already has – deploy solutions such as limiting both electricity imports and RES output injected into the grid. For the time being, grid-injection limits on RES producers are being imposed universally and proportionately.

PPA market could achieve supply-demand balance by 2030, study notes

The country’s PPA market is greatly imbalanced as numerous investors behind a large number of RES projects are keen to establish power purchase agreements, promising priority status for their licenses as well as favorable borrowing terms, but, on the other hand, the number of interested customers, major industrial consumers, willing to purchase power through PPAs is limited, a study by Aurora Energy Research has shown.

This imbalance, in which supply of green-energy PPAs exceeds demand, is significantly reducing PPA prices to levels well below those reflecting the actual cost of such agreements, according to the Aurora study, whose findings were presented at the recent 4th Power & Gas Forum in Athens by Evaggelos Gazis, Aurora’s Head of South Eastern Europe.

The study found that the fundamental fair value of typical fixed-price PPA contracts in 2025 could range between 60 and 100 euros per MWh.

A fair value for a 7-year PPA starting in 2025 is over 70 euros per MWh for solar and over 80 euros per MWh for onshore wind, the Aurora study determined.

Though supply for PPA contracts is currently much higher that demand, increased demand from utilities and aggregators could balance the market by 2030, the study noted.

The fair market value of a PPA depends on the asset’s capture price, the value of risk and hedge as well balancing cost and value of Guarantees of Origin (GO) certificates, the study pointed out.

EU’s RES goals need ‘measures, major grid, storage investment’

European Commission REPower EU targets aiming for additional RES capacities of 510 GW in wind energy and 592 GW in solar energy by 2030 cannot be achieved without a new framework of measures and incentives supporting PPAs and ambitious investments for network upgrades and energy storage installations, a new report by sector association Eurelectric, representing the common interests of the electricity industry at a European level, has highlighted.

Highlighting the extent of the effort needed, the Eurelectric report notes that, compared to the sum of installed EU capacities in 2020 – 175 GW for wind energy and 100 GW for solar energy – wind energy installations must increase by 191 percent and solar energy installations need to grow by 492 percent if the 2030 targets are to be achieved.

The Eurelectric report, a proposal focused on market design the European Commission ought to adopt to ensure the continent’s green-energy RES targets are met, was presented in Brussels just days ago. It was delivered as the association’s contribution to consultation staged by the European Commission for a new market design in the EU.

Even split in wind, solar systems optimal balance, studies show

An even split between prospective solar and wind energy installations in Greece is the perfect balance in terms of cost-effectiveness and investment, studies conducted by two Greek universities have shown.

Emphasis on the development of either of the two RES technologies is not optimal for RES growth in Greece, Panagiotis Papastamatiou, chief executive of ELETAEN, the Greek Wind Energy Association, told the recent Power & Gas Forum in Athens, citing the university studies.

Although solar energy installations are lower in cost, they require large storage capacities for energy transmission, coming at an increased cost, the ELETAEN official noted, adding that, on the other hand, investment costs for wind energy installations, especially offshore systems, are elevated.

This view raises questions about the National Energy and Climate (NECP) plan, envisaging greater development of solar energy installations, and whether this approach would maximize benefits for consumers, compared to a 50-50 split.

A study conducted by the National Technical University of Athens (NTUA) showed that a combination of 10 GW in solar energy systems and 10.5 GW in wind energy systems would reduce overall generation cost.

Another study, by the University of Piraeus, also showed that a 50 to 60 percent wind-energy share of prospective RES installations is the optimal combination that should be pursued.

 

Energy ministry multi-bill at parliamentary committee

Greek Parliament’s Standing Committee on Production and Trade begins is set to begin discussions today on a multi-bill covering a wide range of energy-sector issues. The committee’s talks are expected to continue during the week, but a date has yet to be set for the multi-bill’s tabling in Parliament for ratification.

Energy-sector issues included in the multi-bill include a formula for filtering out stagnant RES projects as a means of freeing up required grid capacity.

Non-auction tariff levels in 2023 for small-scale wind and solar energy projects of up to 6 MW is another matter included in the energy ministry’s multi-bill, as are power purchase agreement (PPA) rights for RES projects, instead of fixed tariffs, which were trimmed as part of the new deal.

Also included is an article concerning a compensation amount for gas company DEPA Commercial following the cost of its recent decision to cancel LNG orders, not required as a result of lower energy demand this winter.

It also includes revisions exempting businesses and farmers from public service compensation surcharges, included in electricity bills, worth 63 million euros.

In another section, the multi-bill includes terms increasing upper capacity limits to 100 kW on solar energy panels installed for net-metering purposes by churches, charities, NGOs and schools.

Moreover, the revisions include an EU formula to be adopted for the development of offshore wind farms as a pilot project off Alexandroupoli, northeastern Greece.

 

Leitwind: Efficient wind turbine blades to satisfy every need

The year 2022 ended with a positive balance for Greece: the report published by the Hellenic Wind Energy Association (HWEA) shows that the total capacity of wind farms connected to the grid from 2021 to 2022 increased from 445 to 468 GW (+5%). In addition, Greece ranks seventh worldwide in terms of the share of solar and wind power out of total electricity produced and by 2030 it aims to cover at least 70% of domestic energy needs from renewable sources.

Given Greece’s ambitious goals, it needs more wind farms. Wind farms are projects of national importance because, with their increased penetration of the electricity market, they ensure a more balanced and cost-effective energy system, with a consequent decrease in the price of energy for consumers and an increase in the country’s energy independence.

LEITWIND, the only Italian manufacturer of MW wind turbines (250 – 3,000 kW), not only designs and manufactures wind turbines with patented direct drive technology and boasts proven technological experience, but it also stands out for its ability to adapt to customer needs thanks to its constant investments in R&D.

LEITWIND has recently introduced the LTW90 and LTW80 models with a nominal power of 500 kW to meet the current market need for fast and lean authorization processes without having to give up to high energy production thanks to the large-sized rotors.

Furthermore, belonging to the HTI Group, a Group that has always been active in the field of winter technologies (ropeways, snow groomers and snow-making systems), has allowed the company to increasingly specialize also in energy solutions in mountain areas and remote places, offering optimal solutions in terms of efficiency, reliability and profitability.

This is demonstrated by the five LTW80 wind turbines with nominal power of 1.5 MW each which were installed in central Greece in 2021 (the Gaidourorachi and Ipsoma wind farms respectively) located at an altitude of 1,000 meters and only 5 km from the coast of the Gulf of Corinth, which provide local electricity capable of covering the annual energy needs of about 6,500 Greek households.

Small-scale RES units to continue securing non-auction tariffs in ‘23

Small-scale solar energy facilities with capacities of up to 500 KW and wind farms with capacities of up to 6 MW will be able to continue securing tariffs without competitive procedures in 2023, according to a new energy ministry draft bill forwarded for consultation last Friday.

Small-scale solar energy facilities will be able to secure tariffs through non-competitive procedures until December 31, while solar energy facilities that are part of energy communities will be able to do so until September 30.

Small-scale wind farms will be able to secure tariffs through non-auction procedures until December 31, 2024, according to the draft bill.

It also includes a section designed to filter out RES projects that have remained stagnant for years and are occupying needed grid capacity. This revision will concern RES projects that have received finalized connection terms up to July 4, 2022. They will be set deadlines.

Greek-Egyptian grid link prospects gaining ground

A prospective Greek-Egyptian subsea grid interconnection, planned to exclusively transmit green energy from Egypt to Greece as a means of increasing the energy-mix share of renewables in Greece and the wider region, while also bolstering energy security in Europe, has gained further ground on a number of key fronts.

Political support has been expressed, progress is being achieved on the project’s engineering study, and the Copelouzos group, seeking to develop the project, is in talks with potential investors.

As for the technical side, agreements are being worked on for a detailed engineering study as well as a feasibility study for the project, whose cable installation will reach as deep as 2.7 kilometers at certain sections.

A Copelouzos group team headed by its president, Dimitris Copelouzos, has held talks in Cairo with Egyptian president Abdel Fattah El-Sisi and other leading Egyptian officials on regions where wind and solar farms could be developed to feed the Greek-Egyptian subsea cable.

The focus of these talks, also involving Egypt’s minister of electricity and renewable energy Dr. Mohamed Shaker El-Markabi, was on developing wind energy facilities in areas offering wind speeds of more than 10 meters per second. Such speeds are exceptional, well over those of locations hosting Greece’s best-performing wind energy facilities, where wind speeds reach 6.5 to 7 meters per second.

As for the solar energy sector, production tariffs of between 15 and 17 dollars per MWh offered at previous auctions in Egypt, a country offering flat land, are extremely competitive compared to prices in the Greek and Italian markets, even if energy transportation costs to Europe are taken into account.

Solar and wind energy investments offering a total capacity of 9.5 GW are planned to be developed in Egypt by the Copelouzos group, with partners, at a cost of approximately 8 billion euros. European, US, Middle East and Japanese companies have expressed interest to join the Copelouzos group for these projects.

Though investor interest for the Greek-Egyptian grid interconnection is strong, the European Commission’s stance will be crucial as it will be called upon to decide on the project’s inclusion in the projects of common and mutual interest (PCI/PMI) list, which would ensure EU funding support.

The Copelouzos group submitted its application last December. Brussels is expected to release PCI/PMI short lists in June, followed by finalized decisions in November.

Vestas unveils circularity solution to end landfill for turbine blades

Vestas is presenting a new solution that renders epoxy-based turbine blades as circular, without the need for changing the design or composition of blade material. Combining newly discovered chemical technology developed within the CETEC initiative, and partnerships with Olin and Stena Recycling, the solution can be applied to blades currently in operation. This will eliminate the need for blade redesign, or landfill disposal of epoxy-based blades when they are decommissioned.

‘Until now, the wind industry has believed that turbine blade material calls for a new approach to design and manufacture to be either recyclable, or beyond this, circular, at end of life. Going forward, we can now view old epoxy-based blades as a source of raw material. Once this new technology is implemented at scale, legacy blade material currently sitting in landfill, as well as blade material in active windfarms, can be disassembled, and re-used. This signals a new era for the wind industry, and accelerates our journey towards achieving circularity,’ says Lisa Ekstrand, Vice President and Head of Sustainability at Vestas.

Turbine blades have previously been challenging to recycle due to the chemical properties of epoxy resin, a resilient substance that was believed to be impossible to break down into re-usable components. This has led to many technology leaders attempting to replace or modify epoxy resin with alternatives that can be more easily treated. Vestas’ solution is enabled by a novel chemical process that can chemically break down epoxy resin into virgin-grade materials. The chemical process was developed in collaboration with Aarhus University, Danish Technological Institute, and Olin the partners of the CETEC project, a coalition of industry and academia established to investigate circular technology for turbine blades.

‘The newly discovered chemical process can theoretically turn epoxy-based turbines blades, whether in operation or sitting in landfill, into a source of raw material to potentially build new turbine blades. As the chemical process relies on widely available chemicals, it is highly compatible for industrialisation, and can therefore be scaled up quickly. This innovation would not have been possible without the ground-breaking CETEC collaboration between industry and academia enabling our progress until this point,’ says Mie Elholm Birkbak, Specialist, Advanced Structures at Vestas.

Through a newly established value chain, supported by Nordic recycling leader Stena Recycling and global epoxy manufacturer Olin, Vestas will now focus on scaling up the novel chemical disassembly process into a commercial solution. Once mature, the solution will signal the beginning of a circular economy for all existing, and future epoxy-based turbine blades.

‘“As the leading customer solution provider of innovative epoxy systems, Olin is proud to support the anticipated massive expansion in wind energy worldwide. By utilising unique technologies, together with our partners, we are ready to recover molecules and convert them into new epoxies that can be re-used in wind turbine blades. We are excited to bring our expertise and unique asset footprint to this partnership, and realize breakthrough sustainable material solutions for existing wind blades and those of the future”, says Verghese Thomas, Vice President, Epoxy Systems and Growth Platforms at Olin.

‘In the coming years, thousands of turbines will be decommissioned or repowered, representing a major sustainability challenge but also a valuable source of composite materials. As one of Europe’s leading recycling groups with a wide footprint in Europe, we have a central role in the transition to a circular economy. We see this solution as a huge opportunity to take part in making a sustainable solution even more sustainable and circular and are ready to apply our chemical recycling expertise and knowledge to this process’ says Henrik Grand Petersen, MD Stena Recycling Denmark.

For several decades, producing wind turbine blades manufactured with epoxy-based resin has been standard practice in the wind industry. In the most mature markets for wind energy, the first turbines are reaching the end of their operational life and this will increase over the coming years. WindEurope expects around 25,000 tonnes of blades to reach the end of their operational life annually by 2025.

Once mature, the new solution will provide Vestas with the opportunity to produce new turbine blades made from re-used blade material. In the future, the new solution also signals the possibility to make all epoxy-based composite material a source of raw material for a broader circular economy, potentially encompassing industries beyond wind energy.

Vestas is the energy industry’s global partner on sustainable energy solutions. The company designs, manufactures, installs, and services onshore and offshore wind turbines across the globe, and with more than 154 GW of wind turbines in 87 countries, it is a global leader in the wind power sector.

 

Project of national importance status for interconnection in north

The government has declared a new 400-kV electrical interconnection being developed by power grid operator IPTO from Filippoi to Nea Sanda in northern Greece as a project of national importance, a move promising unhindered development as the classification limits any potential obstacles that may arise in terms of licensing or environmental issues.

The electrical interconnection, to run a length of approximately 140 kilometers, was declared a project of national significance by the energy ministry as well as the development and investment ministry.

A number of factors were taken into account, including the objective of IPTO, owner and operator of the country’s grid, to ensure adequate, continuous, secure, efficient and reliable electricity supply to the country.

Balancing market interests as well as cross-border trade, based on principles of transparency, equality and free competition, were also taken into account.

So, too, was the potential offered by the project to increase storage capacity and distribution of electricity production, especially that of renewables, mainly large-scale wind farms, plus conventional power stations in the wider region.

Greek onshore wind energy generation tops European output

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

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

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

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

EuroEnergy enters Croatia with €150m wind power project

Libra Group renewable energy subsidiary to acquire 114-megawatt Croatian wind farm development as a first investment in key renewable market and new Eurozone member.

January 19, 2023
Athens – Greece

EuroEnergy, a renewable energy subsidiary of Libra Group with assets and operations in the European Union, has announced that it will acquire a 114-megawatt (MW) wind energy development in Udbina, Croatia. Representing a total investment of €150 million, the project will expand EuroEnergy’s European footprint to harness the potential of Croatia’s growing renewable energy sector. Significantly, the acquisition represents one of the country’s first clean energy investments since it became a member of the Eurozone in January 2023.

Located in the largest county in Croatia, Lika-Senj, in the municipality of Udbina, the project is expected to boost the local economy by establishing an office, hiring local personnel, and contracting local companies for the development, construction, and operation of the wind farm.

With an established presence in key markets, including Greece, Romania, and now Croatia, this acquisition will substantially increase EuroEnergy’s investment portfolio of solar parks and wind farms to an installed capacity of over 200 MW. In addition, the company has previously owned and managed 375 MW.

EuroEnergy is among the few private renewable energy platforms with extensive experience, an on-site presence, sizable operating assets, and a robust pipeline in emerging European markets. It is also committed to advancing innovative technologies to support operational excellence, most recently through deploying drone technology to inspect wind farms.

“We are proud to expand our portfolio into the Republic of Croatia, a market with enormous potential and a growing domestic renewable energy sector,” said EuroEnergy Chief Executive Officer Fanis Mermigkousis. “We are committed to ensuring the local communities are integrated throughout the process. Our work is helping ensure that Southern and Eastern Europe are part of the renewable energy transition, and we will continue to explore new geographies that advance the sector.”

The acquisition reserves the right to expand with an additional 70.5 MW of wind capacity, depending on electricity grid upgrades that can increase production. The broader growth of renewable energy in Europe, new upgrades to Croatian grid infrastructure, and a liberalized market with supportive legislation further advance this growth. The potential scalability of this project also supports the future incorporation of new, highly-innovative and green infrastructure solutions to Croatia.

“Our Group is dedicated to responsible innovation and growth, and we are proud to see EuroEnergy invest in Croatia’s energy future as it becomes part of the green transition,” said Antonis Menegas, Executive Vice President of Energy for Libra Group. “Across our global ecosystem, we are leveraging the insights of our network to build economies of scale. We look forward to following EuroEnergy’s progress as our Group continues to advance a pan-European renewable energy platform.”

Boris Katić, one of the three owners and original developer of this project, further commented, “We are pleased to welcome EuroEnergy and their team as a strong and experienced partner in the project. This wind project will provide a significant contribution to the sustainable development of this rural area by creating highly-skilled employment, improving the environment for local businesses and strengthening the regional road and power infrastructure. Located in the triangle between the three National Parks Plitvice, Paklenica and North Velebit, the wind farm is a crucial contributor to supporting and promoting the local communities in this remote region.”

About EuroEnergy

EuroEnergy is a renewable energy investment company with offices in London, Athens and Bucharest. Founded in Greece in 2007, EuroEnergy was established to increase the contribution of Renewable Energy Sources (RES) to the traditional energy mix in Europe and the Mediterranean countries. Over the years, its portfolio has grown to encompass solar PV and wind assets in Romania and Greece. With a focus now on solar and wind energy, EuroEnergy has grown its RES portfolio by acquiring solar PV operating assets and under-construction wind projects. EuroEnergy’s operating assets track record consists of close to 0.5 GW of wind, solar and biogas projects.

About Libra Group

Libra Group is a privately-owned, global business group that encompasses 30 operating entities: 20 businesses predominately focused on aviation, energy, maritime, real estate, hospitality, and diversified industries, and 10 social initiatives. With assets and operations in nearly 60 countries, the Group applies the strength of its global network and capabilities to deliver cross-sector insights and growth at scale, while mitigating risk. Today, Libra’s Social Responsibility Programs include 10 social initiatives created to address unmet needs and grantmaking that helps people worldwide. Throughout its 30 entities, the Group is focused on maintaining its innovative culture supporting human potential, and always delivering growth with good – twin engines that power the Libra ecosystem.

New NECP at Interministerial Committee on Monday

The revised National Energy and Climate Plan, a strategy of greater ambition aiming for 24 GW in wind and solar energy installations, 4 GW in hydropower and pumped-storage stations, as well as energy storage projects totaling 8 GW, all by 2030, is scheduled to be presented at the Interministerial Committee on Monday.

As a next step, the road map of the NECP, now completed according to energypress sources, will be officially announced by the energy ministry before undergoing consultation.

The RES sector’s share of the energy mix has been increased to 80 percent in the revised NECP, up from a 65 percent target set in the previous edition.

The existing NECP’s RES and hydropower target had been set at 19 GW. The revised version’s target has been boosted to 28 GW.

The RES installation target of 24 GW, it should be noted, includes offshore wind farms of 2 to 2.5 GW, indicating that the NECP is, for the first time, committing to the development of this new green energy technology.

Last year ended with operating wind and solar facilities of 10.2 GW, meaning installations representing a total capacity of 13.8 GW for the two RES technologies will need to be installed over the next eight years if the NECP’s 24-GW target is to be achieved.

December gas energy-mix share up to 43%, RES input falls

Natural gas usage for electricity generation increased in December to represent 43 percent of the energy mix, up from 37 percent in November.

At 43 percent, natural gas-fueled electricity captured the biggest share of the energy mix in December, followed by renewable energy sources – wind, solar and biomass – at 26 percent, lignite, at 17 percent, net electricity imports, at 10 percent, and major-scale hydropower plants, at 4 percent.

Combing the RES and hydropower contributions, the renewable energy sector’s share of the energy mix in December essentially reached 30 percent.

Natural gas-fueled generation and RES generation reached 1,645,055 MWh and 1,012,485 MWh, respectively, in December, while lignite-fired output for the month totaled 656,157 MWh.

In 2022, overall, natural gas’ share of the energy mix increased by one percent, while the RES sector’s share shrunk by 8 percent.

Energy demand increased in December, reaching 4,013,598 MWh, following four successive months of decline.

Reed Smith advises Alpha Bank on financing of 27-MW onshore wind project

ATHENS – Global law firm Reed Smith today announced that it has advised Alpha Bank, one of the Greek systemic banks, on an approx. €32 million non-recourse financing of a ready to build onshore wind power project developed by Anatoliko Askio –  Magoula Single Member S.A., a Greek subsidiary of Valorem.

Valorem is an international renewable energy developer and power producer active in France, French Antilles, Finland, Poland, Colombia and Greece.

The project is developed in Kozani region, and will have a total installed capacity of 27 MW, consisting of 6 (4.5 MW each) Vestas wind turbine generators. It is expected to come online by early 2024. The annual power production of the project is estimated at 71 GWh, covering the needs of approx. 18,000 households.

This is the very first renewable energy power project to be constructed by Valorem in Greece and one of the very few wind power projects to be installed at such a high altitude in the country (i.e. 1700 meters above sea level).

The team was led by Reed Smithʼs Global Corporate Group partner Dimitris Assimakis, with assistance from counsel Minas Kitsilis, senior associate George Fountas and associate Georgia Koui. French law advice was provided by partner Baptiste Gelpi, and English law advice was provided by partner Claude Brown and associate Moishe Kritzler.

Assimakis, who is based in Reed Smithʼs Athens office, commented: “We are very excited to have advised Alpha Bank in the very first wind power project developed by Valorem in Greece. It illustrates both Alpha Bankʼs continuous support in the transition of the Greek power sector and especially its strong commitment in the wind power sector, as well as Valoremʼs dynamic entry in the vibrant Greek renewable energy market.”

‘Energy storage installations can wait for lower prices’

The National Technical University of Athens’ professor Stavros Papathanasiou, also head of the energy ministry’s committee for energy storage, has proposed, in an interview with energypress, a rational and careful approach to Greece’s storage needs.

A RES energy-mix share of 80 percent by 2030 will require more pumped-storage projects, while decisions on the prospective installation of 900 to 1,000 MW in energy storage systems – a capacity to soon become available through auction procedures – can be left for later on, when price levels for this technology will have fallen significantly, the NTUA professor noted.

The professor also offered a detailed analysis on how storage investments should be remunerated when they provide congestion relief services to the system.

He also stressed the role of storage stations in combination with RES stations (behind the meter) is absolutely crucial, adding that investors behind existing photovoltaic and wind energy facilities should be given incentives to install batteries as a part of their investments.

The professor also noted it is necessary to reform the existing net metering system so that production and consumption of energy could be synchronized instead of having energy injected into the grid at times of congestion.

PPA contract prices driven lower by market imbalance

Power purchase agreements (PPAs) have fallen to levels of between 40 and 50 euros per MWh because of two key factors, firstly, the need of many RES project investors to establish bilateral contracts in order to upgrade their projects and meet priority-status standards set by power grid operator IPTO, and secondly, as a result of low absorption rates of production as large-scale consumers who could absorb big RES quantities have already made intra-group arrangements, a leading official at Aurora Energy Research has told energypress.

In addition, potential off-takers are limited and have low creditworthiness, the official noted.

“The supply and demand imbalance is putting downward pressure on PPA prices, resulting in PPAs trading at levels significantly below their value,” the official pointed out.

PPA contracts running from 2025 and 2035 in the Greek market should actually be worth between 60 and 90 euros per MWh for solar energy and between 70 and 100 euros per MWh for wind energy, the official noted.

 

PPA-linked RES project interest surges, favorable conditions

Investment interest in wind and solar energy projects planned to offer their output through power purchase agreements (PPAs) has grown sharply, as indicated by a large number of preliminary PPA agreements submitted by investors to power grid operator IPTO for entry into a priority-status category established through a ministerial decision.

A 1,500-MW limit that had been set by the ministerial decision for this category has been greatly exceeded, according to energypress sources. The energy ministry has already decided to elevate this limit, but it remains unclear if the bar will be raised sufficiently to fully cover the heightened level of investment interest being declared.

RES producers are turning to PPAs in greater numbers as a result of lower fixed tariffs being offered at RES auctions staged by RAE, the Regulatory Authority for Energy, market officials have pointed out.

Another key factor behind this trend is the greater need for green power generation being expressed by suppliers, due to a wholesale cap, as well as industrial players, all of which is creating favorable PPA conditions offering RES producers higher fees.

A considerable amount of grid capacity for PPA-based RES projects is expected to be made available through the cancellation, by energy authorities, of RES projects that have held connection terms for quite some time but inexplicably remained stagnant.

RES applications for 17 GW in 2022, PV units dominant

A total of 17 GW in RES project applications have been submitted in 2022, adding to the accumulation of older applications, but the October cycle, which expired last Monday, was subdued, resulting in 179 applications for producer certificates representing 2,504 MW.

Solar energy projects represented the majority of applications submitted in the October cycle, numbering 61 in total for 1,559 MW. Wind energy project applications totaled 79, representing 733 MW, in the October cycle.

A recent trend, confirmed, once again, by the October cycle figures, has shown a preference by solar energy project investors for facilities with greater capacity, compared to the past, while, on the contrary, wind energy projects are becoming smaller.

The October cycle also included 33 applications for small-scale hydropower units totaling 19 MW, 5 applications for hybrid projects representing 191 MW, and 1 biomass application representing 1.5 MW.

Wind farms not earning windfall profits, association notes

Wind farms are not earning windfall profits as they are remunerated based on long-term fixed tariff agreements not influenced by wholesale electricity prices, which have skyrocketed as a result of soaring natural gas prices, ELETAEN, the Greek Wind Energy Association, has clarified.

A 90 percent windfall profits tax imposed on electricity producers essentially does not apply to wind farm producers as they have always been returning any amounts exceeding their long-term fixed tariffs for output they have agreed to, ELETAEN noted.

Wind farm investors have secured fixed tariffs for the output of their facilities through long-term contracts with DAPEEP, the RES market operator, the association noted.

Older wind farm investors have agreed to tariff prices, through administrative procedures, based on the cost of their projects at the time of their development, while newer wind farms have secured fixed tariffs through RES auctions staged by RAE, the Regulatory Authority for Energy, ELETAEN reminded.

As a result, wind farms are not benefiting from elevated energy market prices and are not earning windfall profits, ELETAEN underlined, adding remuneration prices in the sector are low.

The average price paid for wind energy production in Greece is approximately 94 euros per MWh, just 22 percent of the average price of electricity last month, the association pointed out.

 

 

 

 

Investor participation limited for first RES auction in 1½ yrs

Participation at an upcoming RES auction, the country’s first in one-and-a-half years, will be limited, despite the growing interest in green energy investments, a provisional list of auction participants just released by RAE, the Regulatory Authority for Energy, has shown.

RES investors behind 34 projects with a total capacity of approximately 944.5 MW will seek to secure tariffs at the auction, scheduled for September 6. One application was rejected after failing to meet a guarantee payment deadline.

Given the auction’s rules, RES projects representing a total of 525 MW will secure tariffs at this September auction.

Its participation level is down approximately 50 percent compared to the previous RES auction, held in May, 2021, a session that was dominated by solar energy units.

Sector officials have named low starting bid levels set for solar and wind energy units as one of the factors behind the upcoming auction’s limited turnout, noting these levels do not reflect increased project costs, driven considerably higher by steep equipment price increases.

A starting bid level of 54 euros per MWh has been set for solar energy units, while the starting bid level for wind energy units is 63 euros per MWh. PV investors underlined investments cannot be sustainable at such levels.