German multinational giant RWE group, which is active in RES, announced yesterday that together with Hellenic Petroleum it will establish a joint venture (through their subsidiaries RWE Renewables and H EL.PE Renewables) for offshore wind farm projects.
The two firms will control the joint company and the aim is, according to sources, to aggressively claim licenses from the projects with a total capacity of at least 2 gigawatts (GW) that the Greek government wants to develop by 2030. This concerns both fixed-site and floating wind farms.
Market estimates see the amount of investment for the 2 GW to be around 6 billion euros. The Ocean Winds (Portuguese EDP Renewables and French Engie) joint venture with Greek TERNA ENERGY, which want to develop 1.5 GW offshore wind farms, have also entered the race for the offshore wind farm market. The three companies were the first to express their investment interest.
The partnership of the Abu Dhabi Future Energy Company (Masdar) with Motor Oil, as well as the Kopelouzos group with RF Energy, with the latter wanting to develop 850 MW offshore wind turbines, is also locked.
About a year ago, Mytilineos announced a similar agreement with the Danish Copenhagen Offshore Partners. Parkwind’s partnership with Intracat has also recently become known.
PPC is also reportedly in talks with a foreign investor, with some information talking about Total Eren. The parent company Total Energies, after withdrawing from hydrocarbon research in Crete, announced the activity of its subsidiary in offshore wind farms.
From time to time, publications bring other large international groups with many marine Gigawatts in their portfolio as interested parties, such as the Norwegian Equinor, Iberdrola, Enel and also Macquarie.
Missed opportunities and new hopes
Greece has a second chance to exploit the rich wind potential in the Greek seas with the first one 12 years ago having fallen by the wayside.
Especially in the current phase where REPowerEU favors the development of RES in order to divest Europe from Russian fossil fuels but also with the offshore wind farms offering a value multiplier for the Greek economy as important jobs open for the Greek shipyards and the domestic heavy industry open up. This means investment interest must be kept alive.
The first opportunity arose in 2010 and as the president of TERNA ENERGY, Mr. Giorgos Peristeris, recently recalled: “And while significant private investments in offshore wind farms had been launched by Greek and international investors, which would have multiplied benefits for the Greek economy and the Greek industry, with an incomprehensible decision the then government froze all activity in the sector. Today, 12 years later, we’re still in the same place. And we are still looking to find the best solution, at the expense of what can be immediately implemented and bring development and immediate financial benefits”, he said, referring to the bill being prepared by the government that will determine the conditions for the concession of research, the criteria for the participation of investors and the organizations that will run the relevant competitions in the Greek seas.
The nebulous bill and the bureaucratic hydra
According to what has come to light so far, the bill that the government has been preparing for over a year and a half is going to go out for public consultation soon.
However, the provisions on the one hand do not provide for investors who have been in possession of licenses for 12 years and on the other hand it refers critical issues to a multitude of ministerial decisions and commissions.
The operator is expected to be EDEY (Hellenic Hydrocarbon Management Company) which will be renamed. It will draw up the wind farm development program and prepare the Presidential Decrees concerning the designated areas and will announce the first round of applications for research permits. No later than two years after the tender for the permits, the wind farm installation areas will be put up for public consultation.
With one more decision, the tenders that RAE (Regulatory Authority for Energy) will undertake for the compensation price of the wind farms will be determined.
Market players believe that if and as long as these provisions are in force, the institutional framework risks developing into a conundrum for investments and into a labyrinthine network of bureaucratic tangles.
Latest News
JP Morgan Remains ‘Bullish’ on Greek Banks
JP Morgan reiterated its analysis of DTCs, prompted by Piraeus Bank’s plan to accelerate their amortization
Source of Wealth Declarations for Greek Public Officials Made Easier
Source of wealth declarations are designed to improve transparency and prevent corruption among Greece's public officials. Yet 98% of Greeks still believe corruption is widespread in the country, according to Eurobarometer.
Greece’s Labor Market Slack Among Highest in EU
Greece ranks 4th in EU for labor market slack, mostly due to high unemployment levels, and has widest gender gap in the EU.
Livestock Crisis Threatens Greek Feta
Feta in particular, is Greece’s primary dairy export, with 65% of production going abroad.
Moldova’s Sandu Wins Second Term amid Meddling Claims
According to the Central Election Commission, with 98% of votes counted, Maia Sandu led with 54.35% to Alexandr Stoianoglo’s 45.65%
Attica Wins ‘Best Greek Hospitality Region’ at 2024 Awards
The Greek Hospitality Awards, now in their tenth year, are one of the premier tourism industry events at the European level
Greece Takes Command of EU’s Operation ASPIDES in Red Sea
The defense minister also visited the Greek frigate Spetsai, which is participating in Operation ASPIDES, while in the port of Djibouti
Brain Gain: Returning Greeks Drive Innovation and Growth in IT and Key Sectors
The profile of the returnees to Greece reveals that 67.6% have families, and 52% have children
New Regulations Target Airbnb Rentals in Greece with Safety and Quality Standard
Additionally, a new ranking system for tourist accommodations based on sustainability criteria is expected to be introduced
Piraeus Port Authority: Net Profits Exceed 70mln€ in Jan-Sep 2024
All indices rise in third quarter of 2024 compared to corresponding period of 2023