Renewables

11 projects selected in Greece’s second energy storage auction

11 projects selected in Greece’s second energy storage auction

Photo: Freepik

Published

February 15, 2024

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Published:

February 15, 2024

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Seven companies have won government support for 11 standalone battery projects at Greece’s second energy storage auction, where 300 MW was offered.

Winners in the storage auction are CNI Energy with two 25 MW plants, Terna Energy with one of 40 MW, Heron with a 12 MW project, AMBER Energy with an 18 MW system, Motor Oil’s subsidiary MORE with three projects of an overall 72 MW, Energeiaki Techniki with an 8.87 MW unit, Enel Green Power Hellas with a 49 MW plant and Faria Energy, which proposed one with 49.9 MW in operating power.

It should be noted that seven offers were rejected for reasons related to documentation and requirements. They belong to Mytilineos, Elpedison and BayWa. Two offers remained below the line: Alasia’s two projects of 36 MW each and R1 Energy’s planned unit of 50 MW.

CNI’s bid for a facility in Livadia was the lowest: EUR 44,100 per MW per year. The highest, at EUR 49,917 per MW per year, was for Terna’s battery array in Thebes. The average was EUR 47,680 per MW per year.

In comparison, the average offer at the first auction, completed last year, was EUR 49,748 per MW per year.

Therefore, the latest round is considered a success despite the fact that the grant provided by the government was reduced from EUR 200,000 per MW to EUR 100,000 per MW.

The Regulatory Authority for Waste, Energy and Water (RAAEW) is expected to ratify the results by the end of the week.

The third storage auction is expected in the following months, to bring total capacity to 1,000 MW.

Batteries required in future renewables

Moreover, the Ministry of Environment and Energy plans to include storage systems in all renewable energy auctions.

Apart from that, it is expected to publish a decree stipulating that renewables with connection terms, or in an earlier development stage, will be required to accept much higher curtailments, of about 40% of output. It means developers will have to add batteries to avoid losing a large part of their production during peak hours.

Loumakis: Applying the brakes is a necessary evil

The reasoning is to create more space in the electricity grid and maximize installed capacity, in pursuit of the goal of an 80% renewables share by 2030, from the revised National Energy and Climate Plan (NECP).

Investors have expressed concern that adding batteries would increase project costs and erode returns. Companies are awaiting details although Deputy Minister of Environment and Energy Alexandra Sdoukou has said that the goal is to maintain profitability.

Applying such brakes on renewables is a “necessary evil” as the market is faced with cannibalization and overheating, according to Chairman of the Hellenic Association of Photovoltaic Energy Producers (SPEF) Stelios Loumakis.

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