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Islands in Greece and Across the EU Pioneering the Energy Transition A

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Islands in Greece and Across the EU Pioneering the Energy Transition A Innovative technologies and regulatory schemes accelerating islands’ decarbonisation Islands in Greece and across the EU pioneering the energy transition 6 June 2018 | Alkisti Florou, DAFNI Network Welcome! Today’s event will… • Provide an overview of EU islands’ collaboration to accelerate Europe’s decarbonisation • Analyse regulatory frameworks in three island regions (Greek, Spanish, ORs) • Showcase lighthouse projects from frontrunner islands in the respective regions • Get perspective of key players, i.e. electricity sector and island regions • Present the scope of work of the Clean Energy for EU Islands Initiative Network of island local and regional authorities Non profit organization 40 municipalities; 3 regions Promotes sustainable development in Greek islands through integrated solutions in key infrastructures (energy, water, transport, waste) Founding member of the Pact of Islands initiative promoting sustainability in European islands through local energy planning Coordinator of the Smart Islands Initiative promoting islands as ideas test-beds for integrated natural resource and infrastructure management European islands’ collaboration 2011 2013 2016 The Smart Islands Initiative is a bottom-up effort of European island authorities and communities which seeks to communicate the significant potential of islands to function as laboratories for technological, social, environmental, economic and political innovation. Island Quadruple Helix Ecosystems A collaborative process of setting the Smart Islands Initiative into motion 28 March 2017 The Smart Islands Declaration signing ceremony 12 MEPs hosted in the European Parliament 33 Local and Regional island authorities from 15 Member States signing on behalf of more than 200 EU islands Synergies between Initiatives Decarbonisation on EU islands • It is not a question of technology • Access to funding/financing can be secured • Social barriers can be addressed • Regulation however emerges as the most prominent catalyzer of islands’ decarbonisation enabling the deployment of the right mix of technologies that are tailored to islands’ varying: • Interconnection status • Market status (bundled/unbundled) • Investment priorities • RES availability • Economic activities The Greek islands case • Approximately 90 inhabited islands with at least 20 inhabitants • In total circa 1.5 mil. Islanders • Around 10% of Greece’s population Interconnected Islands 23 interconnected islands • Ionian islands • North Sporades • Argosaronic islands • Kea – Andros – Tinos • Thasos • Samothrace 32 Non-Interconnected Island Electrical Systems (2) Large Electrical Systems Average Peak Demand > 100MW 1. Crete 2. Rhodes (12) Medium Electrical Systems 5MW < Average Peak Demand ≤ 100MW 1. Paros-Naxos 7. Milos 2. Chios 8. Ikaria 3. Mykonos 9. Thira 4. Samos 10.Karpathos 5. Syros 11.Kos-kalymnos 6. Limnos 12.Lesvos 32 Non-Interconnected Island Electrical Systems (18) Small Electrical Systems Average Peak Demand ≤ 5 MW 1. Ag. Efstratios 10. Ereikousa 2. Agathonisi 11. Kythnos 3. Amorgos 12. Megisti 4. Anafi 13. Patmos 5. Antikythira 14. Othonoi 6. Arkioi 15. Serifos 7. Astypalaia 16. Sifnos 8. Gavdos 17. Skyros 9. Donousa 18. Symi 32 Non-Interconnected Island Electrical Systems • 35 Thermal power plants (fuel oil / diesel) – (Installed Capacity = 1845.3 MW) • 5328 RES power stations – (Installed Capacity = 485.31 MW) • 97 Wind stations – (Installed Capacity = 322.23 MW) • 1758 PV stations on land – (Installed Capacity = 135.89 MW) • 3252 PV stations on roofs – (Installed Capacity = 23.74 MW) • 219 PV stations Net-metering (Installed Capacity = 2.65 MW) • 1 small hydroelectric in Crete (Installed Capacity = 0.3 MW) • 1 biomass unit in Crete (Installed Capacity = 0.5 MW) 17.6% annual RES penetration in the energy balance of the Non-interconnected islands in 2017 New Interconnections 1. Interconnection of Cyclades (420 mil. €) Stage A, in operation since 2017 Attica to Syros (AC 200 MVA) Syros to Paros (AC 140 MVA) Syros to Mykonos (AC 140 MVA) Stage B, expected in 2018 Paros to Naxos (AC 140 MVA) Naxos to Mykonos (AC 140 MVA) Upgrading Andros - Evia Stage C, expected in 2022 2nd cable Attica to Syros (2x AC 200 MVA) 2. Interconnection of Crete Stage A, expected in 2020 (320 mil. €) Crete - Peloponnese, AC 150kV, 2×200MVA Stage B, expected in 2023 (710 mil. €) Crete-Attica, DC 2×350MVA Public Service Obligation (PSO) Charges TOTAL COST [€/MWh] ELECTRICAL Total PSO charges 2014 2015 2016 SYSTEM 2014 – 672 mil. € AGATHONISI 686 980 713 2015 – 602 mil. € AMORGOS 392 397 330 2016 – 483 mil. € ANTIKYTHIRA 1,274 1,276 1,417 2017 – 605 mil. € ARKIOI 662 861 791 Paros – Naxos – Mykonos ERIKOUSA 853 762 663 interconnection SANTORINI 240 223 166 10% of total PSO saved CRETE 214 182 160 Crete interconnection KYTHNOS 447 409 346 LESVOS 175 151 128 52% of total PSO saved RHODES 226 190 151 CHIOS 179 157 135 Electricity market in the Greek NII systems • HEDNO is the DSO and market operator of the NII systems (PPC unbundling) • PPC is the only thermal power plant producer covering the base load production • Code for the operation of NII in place since 2014 • All islands are open to retail competition since 1st January 2018. Customers to alternative suppliers: 14% in Crete / 6% in Rhodes • RES production is often significantly curtailed because of technical constraints • Spinning reserves to provide voltage and frequency stability are of significant importance for NII • Limited margins for stand-alone RES stations in the NII • Higher RES penetration requires the coupling with storage units • Hybrid power station regulatory framework in place awaiting single tariff compensation scheme – 154 applications (711 MW) Islands with high RES penetration – Requirements For achieving significantly higher RES penetration levels, the following are required: • Installation of Energy Control Centres to allow the effective management of generation and storage and support multiplayer markets • Implementation of storage to alleviate congestion, facilitate RES penetration and allow peak shaving and shifting • Deployment of dispatchable RES stations, such as biomass-biogas, geothermal and solar thermal power plants to substitute base load • Demand side management of flexible loads taking into account seasonality • Sector coupling among electricity, transport (EVs), water and waste infrastructure Islands with high RES penetration – Pilots • TILOS project: Small Hybrid station (Wind Turbine, PV and battery storage) in the island of Tilos to reduce the dependence of the island on the submarine cable • Ikaria hybrid power station: Consisting of 1.05 MW small hydro, 3MW pumped storage and 2.7MW wind farm (Almost completed) • Green Island: Demonstration of different wind-PV-battery hybrid power stations combined with district heating network on the island of Agios Efstratios • Kythnos Smart Island: Integrated sector-coupling projects in electricity, transport, waster and waste on the island of Kythnos • Smart Islands: 2-3 pilot projects with RES and Battery Storage to be tendered in 2018 by RAE in order to demonstrate RES penetration levels up to 60-70% Law 4495/2017 has set the legislative framework to enable the deployment and operation of the pilot project Regulatory framework to enable island’s energy transition • Special regulatory framework (e.g. derogation) regarding electricity market obligations for small NII systems to allow the implementation of sector-coupled integrated solutions • Special provisions for the deployment of EV charging infrastructures coupled with RES • DSO storage units to permit the reduction of RES curtailment with economies of scale and combination with ancillary services • Special provisions for prerequisite social-inclusive, citizen-driven solutions • Enabling legislation for demand response programmes adjusted to NII system characteristics Thank you for your attention! Alkisti Florou [email protected] Kostas Komninos [email protected] .
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