April 6, 2025
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Cypriot minister not optimistic about cable project with Greece amid Turkish intimidation

Cypriot Minister of Finance Makis Keravnos said the Great Sea Interconnector (GSI) project still faces very serious political obstacles. He highlighted the pressure from Turkey, alongside the financing disputes with Greece regarding the EU-backed bilateral investment to lay an undersea electricity cable that would connect the two countries.

Following a second incident this month when Turkish navy intimidated ships researching the seabed, Minister of Finance of Cyprus Makis Keravnos expressed doubt in the feasibility of the Great Sea Interconnector (GSI). It is a project to connect his country’s electricity system with Greece’s through Crete, by laying a cable under the sea.

“I can’t say I’m optimistic, especially when there are still very serious political obstacles, namely those posed by Turkey,” the official said, as quoted by domestic media. Namely, Turkish corvette TCG Bartın has approached Ievoli Relume and NG Worker, Italian vessels conducting research for the interconnection, in international waters just north of Crete.

GSI investment concerns now have to be addressed

Nevertheless, a recent due diligence study by a hired foreign consultancy showed the draft bilateral deal heavily favors Greece’s Independent Power Transmission Operator (IPTO or, in Greek, Admie). The authors warned of an “unnecessary additional layer of risks for any equity investors in GSI.”

Keravnos said the document confirms his concerns and that they must be discussed. While the two sides are working to overcome their financing dispute, the project is suffering delays, increasing the risk of cancellation.

Keravnos said in October that the total cost could well surpass EUR 2 billion. The Crete-Cyprus part is substantially leaning on funding from the European Union. The idea was to later extend the interconnector to Israel.

Turkey has been obstructing both GSI surveys and hydrocarbon exploration around Cyprus. There were several incidents involving gunboats.

Cyprus craves interconnections, flexibility sollutions

Meanwhile, Cyprus is struggling to maintain the stability of its isolated electricity system. Oil-fired power plants are increasingly working near their upper limits in peak hours. Conversely, storage capacities, flexibility systems and digital controls are needed for mitigating the pressure on the grid at times of weather-induced jumps in the production of wind and solar power, but also sharp drops.

It is the only noninterconnected country in the European Union. Moreover, Cyprus has no access to natural gas yet.

GSI was formerly known as EuroAsia Interconnector.

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April 6, 2025
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Race against time for Greece to avoid a blackout on Easter

Greek authorities are rushing to secure the electricity system against a possible blackout during Easter.

Greece currently produces much more electricity than it needs on certain days due to a high renewables penetration and insufficient energy storage. It should be noted that in 2024 the country became a net power exporter for the first time after two decades. Usually, extra power is no problem, as it is exported and curtailments ensure nominal system operation with no danger of a blackout.

However, this year there will be days when low demand combined with high renewable electricity production creates a problem. At Easter, demand traditionally craters.

Independent Power Transmission Operator (IPTO or Admie) estimates that on Easter Sunday the country’s interconnections would operate near their maximum safety limits. If even a single line goes offline, it would lead to a domino effect and the possible loss of all the connections with neighboring countries. As a result, the frequency will rise beyond safe limits in the Greek system, triggering the desynchronization of power plants and a blackout.

To avoid such a scenario, authorities have imposed adding telemetry systems in recent months to photovoltaic units of over 400 kW connected to the distribution network. Currently, the Hellenic Electricity Distribution Network Operator (HEDNO or DEDDIE) can curtail 1.9 GW of solar power capacity, but another 6 GW is unswitchable.

Telemetry must be enabled by April in small PV units

A deadline was given until February 13 to the owners within the latter category to add telemetry equipment so that HEDNO can curtail their production when needed. However, very few complied and the rest said they are still waiting for the systems to be delivered.

HEDNO estimates that 5,700 plants with capacities of 400 kW to 1 MW must be added to curtailments, as well as 600 plants with more than 1 MW apiece.

Based on the above, owners of solar power units and the two grid operators must add the ability by April to ensure system stability.

Gradual installation of energy storage facilities is expected to help significantly and bring curtailments down.

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April 6, 2025
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Greek renewables sector slams curtailments bill for not including compensation

Power network operators won’t need to compensate renewable energy producers in Greece for curtailments, according to the latest bill of law. It prompted reactions in the renewable energy market.

The bill, submitted for public consultation, received damning remarks from the Hellenic Wind Energy Association (HWEA or ELETAEN) and various other bodies and corporations for the provisions regarding curtailments.

The country’s two operators wouldn’t be obligated to pay compensation. It should be noted that last year curtailments rose by 277% and reached 3.3% of all renewable production in Greece. They are projected to reach new highs in 2025.

The issue primarily plagues larger plants including wind farms, as they have the technical ability to respond to curtailment orders from the Independent Power Transmission Operator (IPTO or Admie). Conversely, smaller photovoltaic facilities connected to the grid of the Hellenic Distribution Network Operator (HEDNO or DEDDIE) have no such telemetering equipment, so they produce freely at all times.

Indeed, Greek authorities aim to make such systems mandatory in smaller renewables plants to be able to curtail them, to maintain system stability, especially during the days of Easter. If an owner fails to make necessary changes, they would be subject to a high penalty, yet to be determined.

Producers point to European law for compensation

HWEA expressed the belief operators should be exempted from compensation only if a proper framework is established that compensates larger producers for curtailments. In practice, it means any revenue collected from the penalties should be used as compensation for other producers.

HWEA: Producer compensation mechanism is necessary

The association added that compensation is obligatory under European law and therefore needs to be included in the regulatory framework.

“The only right way is for the government to conclude the long-awaited framework and introduce a specific producer compensation mechanism,” HWEA pointed out.

Cero Generation Holdings Greece said it is very concerned about proposals for IPTO and HEDNO not to be obliged to provide any compensation.

Curtailment responsibility shifted to aggregators

Another issue concerns the role of renewable energy aggregators, which represent groups of smaller producers in the market. Both HWEA and Elpedison said it is the operators that need to enforce and manage curtailments, and not aggregators, as in the proposed law.

With such measures, aggregators will face increased costs as well as the possibility of having their license recalled if they cannot carry out their new duties, the company pointed out.

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April 6, 2025
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Greece’s IPTO connects to balancing energy platform PICASSO

The Independent Power Transmission Operator of Greece announced that it connected to PICASSO. It is the second transmission system operator or TSO in Southeastern Europe that joined the European platform, so now it can exchange balancing energy with its counterpart in Bulgaria. In addition, IPTO (or Admie, in Greek) has proposed the introduction of negative prices in the domestic balancing market.

The Platform for the International Coordination of Automated Frequency Restoration and Stable System Operation (PICASSO) optimizes balancing energy between control blocks in the Continental Europe synchronous area. Bulgaria’s Electricity System Operator (ESO) joined last month, but it was isolated as it didn’t share electrical borders with any other operational member. Neighboring Greece’s transmission system operator IPTO (or, in Greek, Admie), has just connected to the platform, so the two countries can now exchange balancing energy.

Denmark, Germany, Belgium, the Netherlands, Czech Republic, Slovakia, Austria and Italy are a geographically separate group within PICASSO. Lithuania’s Litgrid joined earlier this month.

Key step for common European energy market

By becoming the 14th operational member, IPTO made a key step in the process of formation of a resilient and efficient common European energy market, the statement adds. The PICASSO methodology and algorithm are intended primarily for the cross-border provision of secondary reserve so that the electricity grid’s operating frequency remains stable.

There are 29 TSOs from the European Network of Transmission System Operators for Electricity – ENTSO-E in the project. Additionally, North Macedonia’s MEPSO, which has electrical borders with both Bulgaria and Greece, is an observer in PICASSO. The platform doesn’t include the rest of the Western Balkans.

With the latest achievement, IPTO and ESO can jointly benefit from the automatic frequency restoration reserve (aFRR). Romania has been delaying its connection to PICASSO.

The platform collects and rates all available offers for balancing energy from aFRR according to their prices, placing them into a common merit order list – CMOL.

PICASSO helping reduce number of balancing price spike events

The new method for calculating cross-border marginal prices on PICASSO has greatly improved performance as the number of instances of electricity balancing price spikes dropped, according to European Union Agency for the Cooperation of Energy Regulators (ACER). Integrating balancing markets across borders lowers costs and improves efficiency by allowing TSOs to activate cheaper balancing energy bids, the body explained.

In other relevant news, IPTO has proposed the introduction of negative prices in the balancing market in Greece of EUR 50 per MWh at most for one year, Energypress reported. The change would enter into force on allocation day April 10, ahead of Easter, a critical moment for grid stability.

The TSO said the limit should be boosted to EUR 15,000 per MWh after joining PICASSO.

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April 6, 2025
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Qair signs grid connection agreement for solar project in Montenegro

Montenegro’s transmission system operator CGES and Qair Montenegro signed a contract for the connection of a 50 MW solar power plant.

An agreement on the construction of infrastructure for the Rudine photovoltaic project was signed by Ivan Asanović, CEO of CGES, and Stefan Klikovac, a representative of Qair Montenegro.

The EUR 40 million Rudine solar power plant will significantly contribute to the increase of the clean energy production and reduce harmful emissions, CGES said.

CGES has so far signed six contracts for the connection of solar and wind projects.

It is expected the project to be online until the end of 2028

Back in September 2024, France-based Qair and Montenegrin state-owned power utility Elektroprivreda Crne Gore (EPCG) signed a memorandum of understanding to enhance the pace of renewable energy project development in Montenegro.

Right after signing a cooperation agreement with Montenegro’s state-owned power utility Elektroprivreda Crne Gore (EPCG), Qair requested from the Environmental Protection Agency (EPA) to determine whether an environmental impact assessment (EIA) is necessary for its Rudine facility.

CGES now said the solar power plant is expected to become operational by the end of 2028, when it would be connected to the transmission system. The connection point is the Vilusi substation.

Qair operates power plants with a capacity of 1,000 MW

Qair Montenegro is part of the Qair company, which has production capacities with an installed capacity of 1,000 MW. The French company has a portfolio with a total planned capacity of 34 GW across 20 countries in Europe, Latin America, and Africa, according to CGES.

On the occasion of the MoU signing with EPCG, CEO of Qair Louis Blanchard said the company is pleased to establish a partnership with EPCG, stressing it is a significant event for Qair in the Montenegrin market.

The signing of the contract with CGES was attended by Aleksa Knežević, head of the CGES CEO office, and investor representatives Magdalena Kolanowska, Krzysztof Wajtysiak and Miloš Jovanović.

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April 3, 2025
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Montenegro’s TSO CGES achieves EUR 25 million profit in 2024

Montenegro’s transmission system operator CGES recorded a profit of EUR 24.8 million last year.

The net income of TSO CGES compares to EUR 35.7 million from 2023. In 2022, the company’s profit amounted to EUR 20.3 million, after EUR 16.9 million in the previous year.

President of the Board of Directors of CGES Aleksandar Mijušković noted in a statement to Mina news agency that the total since his appointment is almost EUR 100 million.

He recalled that the company’s operations are regulated by the Energy and Water Regulatory Agency of Montenegro (REGAGEN), pointing out that the profit is subject to revision, in line with the regulatory mechanism.

Implementation of visionary projects led to income growth

Implementation of crucial infrastructure projects, investments in new technologies, and improvement of work processes were the decisive factors for the success, Mijušković underlined.

In his words, conducting important, visionary projects has led to a significant increase in income from electricity transit. In addition, by applying new technologies and improving work processes, the company achieved a more efficient and reliable system with the lowest grid loss rate so far, despite a much higher transit and flow of energy through the system, Mijušković pointed out.

He added that good business results secure multiple benefits for shareholders and users of the transmission system in Montenegro. CGES’s results have contributed to lowering the transmission tariff paid by citizens and businesses, Mijušković said.

The company plans to continue the investments within its five-year plan, worth EUR 207 million. It envisages significant infrastructure projects.

The Trans-Balkan Corridor will facilitate market coupling with Europe

He singled out the Trans-Balkan Corridor among the largest infrastructure projects. Its completion will significantly increase the capacity for power transit from the Balkans to Italy.

It will enable coupling the Montenegrin electricity market with the Italian one and, with it, the single European electricity market, Mijušković said.

The green transition brought great challenges for the European power system, he stressed. The production of electricity from renewable sources cannot be controlled, so large, uncontrolled electricity flows began appearing in the system, threatening its stability, Mijušković said.

The issues can be effectively solved only by strengthening the internal grid and interconnections with neighbors, which CGES has envisaged in its plans, he asserted.

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