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Green Investments: RES in Greece
Green Investment Perspectives Forum, Athens University History Museum, October 12, 2016
Nikos Stamou, Investment Promotion Manager
Agenda
The Greek RES Market today
The Greek Investment Proposal
Success Stories
Enterprise Greece and services offered
The Greek RES Market today
THE GREEK RES MARKET TODAY
Energy in Greece: Highlights & Prospects
Prospects Highlights
Energy Sector • Energy is accounting for 4% of the country’s
economic activity • Electricity is the largest sub-sector representing
c 53% of the sector’s economic output, followed by Petroleum (44%) and natural gas (2%)
Electricity • Total installed capacity of c. 18GW mostly
dependent on lignite, natural gas and RES, c. 25% each
• Renewable energy production capacity of c.5.2GW, supported by a new feed in premium framework
• Transmission system of c.16,000 km of high-voltage lines
• Distribution system of c.226,500 km of medium/low voltage lines
• Vertical integrated Public Power Corporation (“PPC”) dominating the supply chain
Petroleum/Natural Gas • Limited fossil fuel reserves but large scale
seismic research for natural gas is currently under way
• 2 refining companies operating in Greece with an annual capacity in the area of 26m metric tons
Electricity Demand (National Grid, Interonnected)
Electricity Generation
• EU commission is pushing for lignite market deregulation
• Significant renewable energy resources potential
• With the current unbundling reform and deregulation of the Greek power market several independent power producers have entered or are in the process of entering the market
Electricity transmission/Distribution
• Significant need for investment in electricity networks upgrade, including the interconnection of islands and Crete with the main Grid
Petroleum/Natural Gas
• Demand for new infrastructure in natural gas transmission (liquid gas terminals, gas pipelines, gas distribution systems)
• International Tenders for the exploration and exploitation of hydrocarbon Offshore & Onshore blocks in Greece.
43% 39%33%
28% 31% 27%35% 36%
0%0%
0%0%
0%0%
0% 0%
27%23%
22%26%
26% 37%30% 27%
10%
10%16% 15% 12%
13% 12%11%
20%28% 29% 30% 31%
23% 22% 26%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Jan Feb Mar Apr May Jun Jul Aug
Lignite Other Natural Gas Hydro RES
Electricity Production in the Greek System: by source
The Greek RES market has grown with a very strong pace. Total
installed capacity stood at 1,06 GW in 2008 and 4,6 GW in2015, 334% increase within the last 7
years!
Source: Electricity Market Operator (ADMIE)
Electricity Production Mix January – August 2016
During the economic crisis in Greece, the RES sector was one of the very
few growing economic sectors where investments were made and
employment was created
Wind Energy Statistics The Big Players in Greece
Source: HWEA Wind Statistics, ELETAEN
Installed MW per wind energy producer (2015) Installed MW per Wind Manufacturer (2015)
Installed capacity (2015): 2150,8 MW
10,2 10,2 11,9 15,3 16,1 17 19,8 21 22,1 24,7 26,9 29,9
38,9 42 43,6
59,8 60,4 62,6
71,2 72,5
82,9 199 200,5
250,7 358
369,6
0 50 100 150 200 250 300 350 400
WRE AEROTECHNIKI
PLASTIKA CRETE ENTEKA
ENVITEC THEMELI IKTINOS
INTRAKAT JASPER ENERGY
BCI WP IWECO
ENERCON Invest RENINVEST
BABCOCK & BROWN ACCIONA
EUNICE RF ENERGY PROTERGIA
EREN GROUP OTHERS< 10
PPC Renewables ANEMOS (ELLAKTOR) ENEL GREEN POWER
IBERDROLA Rokas EDF
TERNA ENERGY
47,2
114,2
196,2
233,4
507,1
1052,8
0 200 400 600 800 1000 1200
OTHER
NORDEX
SIEMENS
GAMESA
ENERCON
VESTAS
The Greek PV Market at a ‘glance’
Source: HELAPCO
Greece ranks 8th worldwide with regard to installed PV capacity per capita.
PV’s covered 7.1% of total electricity demand in 2015, ranking Greece as #2 country worldwide in terms of PV contribution to total energy consumed
In 2014, the country installed only about 17 MWp. The sharp drop in new installations was mainly the result of a freeze on the receiving and processing of new applications for PV systems from August 2012 until April 2014. PV & Wind absorbed the largest share of RES investment, 93% of total over the period 2006-2013 with EUR 5.4 billion for PV and EUR 1.7 billion for Wind
Thus installed capacity in RES grew at an average rate of 28% p.a. between 2006 and 2013
In April 2014, Greece has set a new target for PV until 2020, aiming at the
installation of 2 more GWp of PV until the end of
the decade.
‘Project Pool’: RES projects in the pipeline
TECHNOLOGY
With PRODUCTION
License
With INSTALATION
License
With Binding connection
terms
With connection
contract
With POWER PURCHASE
AGREEMENT
With OPERATION
License
Total capacity (MW)
Wind 23150 1524 5659 514 1007 1866
Biomass 474 34 89 33 35 47
Geothermal 8 0 0 0 0 0
Small Hydro 964 41 76 15 23 220
PV 4422 487 1554 567 1008 2588
Solar Thermal 471 38 212 0 0 0
Hybrid 295 0 3 0 0 0
Total Capacity (MW)
29784 2124 7592 1129 2073 4721
Source: Ministry of Environment & Climate Change, end of JUNE 2014
8,704 MW of mature RES wind projects
3,617 MW of mature RES P/V projects
• Bound by EU regulations and Kyoto Protocol agreements
• National target for RES at 20% on final energy consumption by 2020, 2% above the mandatory levels of 2009/28/EC, 40% electricity production from RES –NEW TARGETS FOR PV
• 20 – year PPA (power purchase agreement)-Revised Feed in Premium compensation scheme for RES electricity producers ratified this summer and activated after 2017
• Ideal conditions for wind and solar energy, in 2012 the average capacity factor of wind parks was estimated at 26%, coupled with increased productivity of new wind turbines leading to enhanced performance
• The system operator deploys a long term plan for the development of the electricity network, strengthening the network and facilitating additional energy capacity through RES
• The installation cost for wind parks in Greece is considerably lower, compared with other renewable energy technologies (EUR 1,200/kW in the interconnected system, EUR 1,400/kW in the non interconnected islands)
• Highly-skilled, world-renowned RES personnel available for hiring
• Availability of investment incentives, depending on project scale and tech
The strengths of the Greek RES market create a very attractive business opportunity
Projects with rewarding cash
flows and attractive Returns
on Investment
The Greek RES Market is expected to grow significantly
Source: Hellenic Association of Photovaltaic Companies
• In 2020 1 MW out of 3 MW should come from RES
• A new target of 2GW for 2020 was set for PVs in 2014
• The infrastructure cost to meet targets represents 1/3 of the
penalty to be paid by Greeks in case the targets are not met
National Action Plan for RES (2010-2020) In 2010 Greece endorsed its National Action Plan for Renewable Energy Sources (time frame 2010- 2020). It is an ambitious plan aiming to reform the county’s energy sector so that 20% of the primary energy use is coming from RES by 2020 (penetration level: 40% electricity, 20% heat and 10% transport) In the electricity sector, major RES players are going to be Wind and PV (7.5 and 4.2 GW target values for 2020). This does not exclude additional contributions from other RES e.g. biomass, geothermal energy and concentrated solar power
2605 2151
224 51 0 0
4200
7500
350 350 250 120
Installed capacity 2015
Target 2020
RES Investments needed -In the 2010-2020 Timeframe-
Source: CRES
Total 2010 – 2020 (Mil.Euro)
Lignite 2100
Natural Gas 3311
Oil 249
Large Hydro 650
Small Hydro 137
Pump storage 1672
PV 5508
Solar Thermal 1120
Wind 6710
Geothermal 264
Biomass / biogas 530
Total 22252
from which RES 16455
Investments needed (2010-2020)
The overall investments needed in the energy sector are estimated to 22.2 billion euro for the 2010-2020 timeframe. From these 16.5 will go to new RES capacity, nearly 7 billion to wind, 5.5 billion to PV, 1.6 billion to pump storage for supporting the variable RES production, 1.1 billion to solar heating and cooling, 0.5 billion to biomass and biogas projects. On fossil fuels, Greece will spend 2.1 billion euro for new «clean coal» (lignite in our case) power plants while 3.3 billion will be invested in natural gas facilities Details of the total budget needed for 2010-2020 are shown on the table
A market of abundant opportunities...
• Greenfield investments or Joint ventures
in Energy Production Plants
• Light manufacturing
• Service provision & maintenance
Hydro
• Greenfield investments in energy production Plants
PV & Solar Thermal
Geothermal
Biofuels
Wind
...and great potential
…and a supportive funding framework…
Customised funding programmes run by international financial institutions (EIB, EIF, EBRD, IFC, Black Sea Bank, etc.) in cooperation with Greek banking institutions
New Development Fund to support RES investments through guarantees & loans
The European Fund for Strategic Investments (EFSI/ “Juncker plan”)
Availability of investment incentives, depending on project scale and tech, through the new investment law
…together with a favourable licensing framework through Fast Track
Qualification Prerequisites
Enterprise Greece S.A. has a key role in the whole process providing one stop shop services
Case #1
• The total value of the investment exceeds 100 million Euro,or
Case #2
• The value of the investment exceeds 40 million Euro and, concurrently, the investment creates at least 120 new jobs, or
Case #3
• The investment creates at least 150 new jobs or at least 600 jobs are maintained in a viable and sustainable manner
Case #4
• The value of the investment exceeds 15 million Euro for industrial investments within organized industrial areas
• or
• the total investment cost exceeds 5 million Euro for investments regarding the development of Business Parks
• or
• 3 million Euro for investments included in JESSICA initiative
45 day deadline
One-stop-shop
Absolute priority
The process
Success Stories
SUCCESS STORIES
Global players in the Greek RES market…
Energy-A strong sector with several recent success stories
US Third Point Gas has entered into the share
capital of Energean Oil & Gas (a Greek based Oil &
Gas producer and explorer) through an
equity capital injection of $60 million
Qatar Petroleum International (QPI)
and the Greek company GEK Terna
have signed an agreement to acquire
an interest in the Heron II power plant,
signaling QPI's first investment in Greece.
Heron II is currently Greece's most efficient
power plant.
Azeri state energy company Socar signed deal for acquisition of Greece's natural gas
transmission network operator DESFA
Canadian investment fund Fairfax
Holdings has become the third-biggest
shareholder of Greek industrial energy
group Mytilineos , acquiring a 5 percent stake worth about 30
million euros ($41 million).
US York Capital Management recently announced 100 mn €
investments in Greece's energy group GEK Terna, acquiring a 10% share of the firm.
Success Stories
ENTERPRISE GREECE & SERVICES OFFERED
Energy
• Projects in Energy include 65 Renewable Energy Sources and Clean Tech projects by well established Greek firms/groups that are looking for equity participation or debt financing.
• Greenfield projects at a very mature stage of implementation on sale, are also part of our portfolio.
• The projects consist of business opportunities in Wind and Solar energy, Biomass, Solar thermal, LNG, Hydroelectric, etc.
World Bank
«Enterprise Greece S.A. (former Invest in Greece Agency) evaluated positively for the good selling practices in promoting a public-private investment projects portfolio. The agency has put a lot of effort over the last four years to compile an investment portfolio of both public and private projects, from which the investment promotion unit is able to draw information based on the interests of individual investors. EG showed how specific investment opportunities can be identified through effective partnerships.»
2014
“ Enterprise Greece S.A (former Invest in Greece Agency) is among the few IPIs to achieve high scores on both the
tourism-specific website content and the GIPB 2012 investor inquiry assessment”
Your Investment Partner in the region 109 Vasilisis Sophias Avenue 115 21 Athens, Greece t. +30 210 3355700 f. +30 210 3242079 e. [email protected]
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