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Greek REPowerEU projects approved by Brussels - €560 million for savings, from €75 million. hydrogen and CCS, EUR 85 million; for storage
George Fintikakis
22 11 2023
https://energypress.gr/news/ta-ellinika-erga-toy-repowereu-poy-enekrinan-oi-bryxelles-560-ekat-gia-exoikonomisi-apo-75

The first step was taken, the entire list of energy projects that the Ministry of Energy had included in the revised REPowerEU got the green light from Brussels and now the program is entering the difficult phase, namely the implementation phase.

The ministry is well aware, due to Skylakakis' previous tenure in Finance, how demanding it is for different bodies, public services and individuals, to coordinate in order to implement the milestones of the RRF program on time, as well as what it means not to achieve it. And time is pressing, the three years until December 31, 2026, may seem like a lot, but in reality it is too little to have absorbed by then, amounts of 795 million euros, taking into account the complexity of the projects.

What are the Greek REPowerEU funds about? It is EUR 560 million for saving actions, EUR 75 million for saving actions. for hydrogen and bioethanol, EUR 75 million; for the CCS supply chain (transmission systems and pipelines) and EUR 85 million for energy storage systems.

And also envisaged a number of reforms, such as optimizing land use and maritime space for renewable energy development, increasing grid and energy storage capacity to promote storage investments, initiative for policies and toolkits to promote energy sharing, which also need to be run.

In short, all the programs we had submitted were approved after the exhaustive discussions between the Ministry of Environment and Energy with the Commission. And now we are starting to prepare for the calls for tenders, for which the information indicates that the times will be short, so that we can have relatively quick results and the first absorptions. The government is well aware that the margins are tight unless the RRF is extended, given that other countries are far behind Greece and the risk of losing resources is high.

Because the big difference between the Recovery Fund projects and the NSRF is that there are no procedures that act as "bridges" and transfer money from one use to another. If the Fund's projects are not done on time, then they will not be done. The four groups of Greek actions that received the "green light" from the Commission concern:

1. €560 million for energy efficiency actions. That is, in new "Energy Saving at Home" and "Energy Saving Business", as well as in "Photovoltaics on the Roof", in "Recycle - Change Water Heater", as well as in action to improve the energy efficiency of municipal water supply and sewerage companies, known as DEYA. It is the only way to achieve the objectives of the new NECP and for Greece to multiply its performance in the field of energy efficiency as soon as possible, one of the main policy pillars of the Ministry of Energy. A key lever in this direction is the European strategy "Renovation Wave" for housing upgrade". Its contribution is crucial to achieve the target of the new NECP of no more than 15.4 million tonnes of oil equivalent in 2030. This implies a 7% reduction compared to the previous NECP.

2. EUR 75 million for pilot projects for hydrogen and biomethane production. This is where Skylakakis' recent report to the IENE conference on competition between new technologies, uncertainty and how a small country like Greece should move has its value. "There are many technologies today that compete with each other, but we do not know which one will prevail in the end and above all, whether we will choose right or wrong. We don't know if hydrogen, biomethane or batteries will be preferred, so a mistake in the forecast will cost huge economic damage," the minister said. In other words, caution must be exercised against immature technologies, as there is a risk that we will pay a lot of money without any real effect. The report of Deputy Minister Al. Sdoukou that the further development of hydrogen requires funds of EUR 700 million. EUR per year in investment grants.

3. Also €75 million for Carbon Capture and Storage (CCS) projects. In Prinos, Energean is developing a CO2 storage plan as part of an overall Mediterranean chain of carbon capture, transport and storage. It has already received from EDEYEP the statutory right of investigation valid for 22 months, starting on October 1, 2022, to prepare studies concerning the characterization of the suitability of Prinos as a CO2 storage site.

4. Finally, EUR 85 million for the installation of additional storage systems. The government has long indicated its intention to include energy storage units (batteries and pumped storage) in REPowerEU funding. The EUR 85 million This will be in addition to the EUR 200 million. which have already been committed for the same purpose through the Recovery Fund and concern the three tenders of RAAEY for storage stations, which must be operational by 31 December 2025, according to the foreseen tight timelines.

The challenge for REPowerEU, as for the whole RRF, was and remains the absorption of resources. The gradual implementation of the first projects also highlights the well-known pathologies of the Greek public administration. Unprecedented coordination by the stakeholders is required, in order to overcome the difficulties and not miss milestones and timetables. And it is no coincidence that Brussels has occasionally pointed out to Greece that the Greek programme is reaching a point after which projects will increasingly rely on the administrative strength of authorities at local and regional level, whose weaknesses are well known.