News from HAEE | March 2019

 

Highlights

 

  • New PV capacity of 41 MW was installed in 2018 in Greece

  • PPC cuts discount for punctual consumers in order to raise earnings

  • PPC's share in supply dropped to 77.95% in February

  • Energean on track to deliver first gas from Karish and Tanin in 1Q 2021

  • Turkish Stream's land and undersea segments connected

  • HAEE participates and supports the Power & Gas Supply Forum

  • Round Table | Decision making support and management in Modern Power Supply Markets

     

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News from HAEE | March 2019

New PV capacity of 41 MW was installed in 2018 in Greece

Photovoltaics added 41.8 MW of installed capacity in 2018 in Greece, according to the Greek PV association, HELAPCO. The total PV capacity now stands at 2,665 MW.

Furthermore, the association announced that last year all but one of the projects in the first Greek tender were completed, while the net metering market grew by 11.8% annually.

Photovoltaics generated about 7% of the country's total energy needs and Greece is ranked fourth globally in this particular category, after the Honduras, Italy and Germany.

Last but not least, the PV sector maintained 3,700 jobs during 2018.

PPC cuts discount for punctual consumers in order to raise earnings

PPC decided to cut its discount for consumers who pay their bill in time, from 15% to 10%, in an effort to raise earnings and improve its bottom line.

During the company's recent board meeting, it was also decided to cut the discount for consumers who pay for one year's power supply in advance, from 6% to 4%.

Both moves will become active from April 1st, according to PPC.

Furthermore, PPC said it plans to increase industrial tariffs by 10%, after consideration with its industrial consumers.

PPC's share in supply dropped to 77.95% in February

PPC saw its share in power supply drop from 79.76% in January to 77.95% in February, according to the latest data from the Greek energy exchange.

As for the alternative suppliers, Heron was first with 4.49%, Mitilineos was second with 4.46% and Elpedison was third with 3.64%.

Energean on track to deliver first gas from Karish and Tanin in 1Q 2021

Energean raised its natural gas and oil reserves significantly in 2018, as well as its production. At the same time, the Greek oil company moves closer to producing gas from the Karish and Tanin fields in Israel.

Energean's operational and financial highlights include the following, according to its own statement:

  • Increased 2P reserves to 347 million barrels with 2C resources of 58 million barrels, a combined 35% year-on-year increase.
  • Delivered upon our milestones for achieving first gas from Karish and Tanin in 1Q 2021:

–  Secured $460 million of equity and a US$1.275 billion project finance facility in March 2018;

–  Took Final Investment Decision in March 2018;

–  Achieved first steel cuts on the FPSO hull and topsides in November and December; and

–   Commenced the four well drilling campaign on 28 February 2019; spudded Karish North on 15 March 2019.

  • Secured $13bn of future revenues by signing 12 Gas Sales Agreements (excluding Or), to supply an average 4.6 bcma to the Israel domestic market.
  • Signed an MOU with INGL for the transfer of the onshore infrastructure following first gas, which will result in cash inflow of NIS 369 million ($98 million) for Energean Israel.
  • Delivered 4,053 bopd of production (2017: 2,803 bopd), a 45% year-on-year increase.
  • Sanctioned the Epsilon development, commenced platform construction and the drilling programme.
  • Reduced cost of production by 29% to $17.6/bbl (FY 2017: $24.7/bbl).
  • Submitted the ESIA for the Katakolo project and commenced seismic operations in Western Greece, Israel and Montenegro.
  • Listed on the London and Tel Aviv Stock Exchanges, subsequently becoming a constituent of the FTSE 250 and TA-35 indices.

Turkish Stream's land and undersea segments connected

The last joint connecting offshore and land sections of the Turkish Stream natural gas pipeline has been welded, Russian media reported, citing the project’s operator South Stream Transport B.V.

The operator said on Tuesday that the event represents the completion of all works on the gas transmission system via the Black Sea.

During the technical operation called the “above water tie in,” the length running along the bottom of the Black Sea and the one lying on the land were lifted on a special platform to connect them into a single pipeline, the company said in a statement on Tuesday, as cited by RIA. After the lines of the pipeline were connected, the offshore section was lowered back into the sea to a depth of 32 meters.

The Turkish Stream, also known as TurkStream, is set to be ready for commercial operations in late 2019 after the construction of a terminal near the Turkish town of Kiyikoy.

The Turkish Stream consists of two lines with an annual capacity to deliver 31.5 billion cubic meters of natural gas. The 930km offshore section, completed in November, runs along the bottom of the Black Sea from Russia to the Turkish coast. Its 180km land section stretches further through Turkey to deliver gas to the countries of southern and southeastern Europe.

HAEE participates and supports the Power & Gas Supply Forum

The Hellenic Association for Energy Economics (HAEE) participated as a supporter to the 1st Power & Gas Supply Forum organized by the portal EnergyPress on Thurday, March 28th at Wyndham Grand Athens.

In the framework of its mission which is to promote dialogue on critical energy issues in Greece, HAEE supported the initiative of the editors team of EnergyPress to organize the Conference titled: “Power & Gas Supply Forum: New development in the Greek power and gas supply market”.

During the Forum there were presentations by the political leadership and institutional players such as the Regulatory Authority for Energy and PPC which were followed by the analyses of distinguished market executives on critical issues, such as the problems the market is facing currently, and the emerging challenges and opportunities.

HAAE Chairman Dr. Kostas Andriosopoulos participated as a speaker to a discussion panel titled “The power supply framework in Greece and Europe” and analyzed the latest developments in the Greek power market, the latest international trends, as well as the new business models in the energy market.

Main Conference Thematics:

Thematic 1 - The power supply framework in Greece and Europe

Thematic 2 – Power supply market: Problematics, challenges and prospects

Thematic 3 – The gas supply framework in Greece and Europe

Thematic 4 – The emerging environment in which suppliers are called to operate

Round Table | Decision making support and management in Modern Power Supply Markets

The Hellenic Association for Energy Economics (HAEE) in cooperation with the Laboratory of Decision-making Systems and Management of the School of Electrical & Computer Engineering (ECE) of the National Technical University of Athens, organized on Friday, March 29th, at the university premises a Round Table discussion in the framework of the course “Energy management and Project Management”. The theme of the Round Table discussion was “Decision making support and management in Modern Power Supply Markets”.

This was yet another Round Table discussion organized by HAEE in the framework of the discussion cycle with the cooperation of academic institutions and institutional and market entities in order to enhance dialogue and disseminate knowledge around critical energy sector issues in Greece.

Moderator:

Dr. Haris Doukas, Assistant Professor in the School of Electrical & Computer Engineering (ECE), NTUA

Speakers:

Dr. Kostas Andriosopoulos, Chairman HAEE, Professor of Finance & Energy Economics, ESCP Europe Business School

Ioannis Kopanakis, General Manager, Public Power Corporation S.A

Dimitris Papacostas, Director - General, EDA Attikis

Panagiotis Papastamatiou, CEO, ENTEKA | Director, ELETAEN.