NEW UNIT SITHYA FROM PPC SA. IN WEST MACEDONIA:
OPPORTUNITY OR BUSINESS WORLD;
e. (Letter to Mr.. C. Stop, President and CEO of PPC SA), SDM 102/4.6.2020
f. (Letter to the Deputy Minister of Energy and Natural Resources, K. Gerasimos Thomas), SDM 108/12.6.2020
g. Relevant Press Releases 1.7.2020, (Agreement on district heating in Western Macedonia)
According to the statements of the competent Minister of Energy the day before yesterday, the agreement reached between the Chairman of the Coordinating Committee for the preparation and implementation of the Plan for Fair Development Transition was welcomed. (SDAM) Kosti Mousourouli, of the Regional Governor of Western Macedonia George Kasapidis, of Mayors, Kozani Lazarou Malouta, Εορδαίας Panagiotis Plakentas, Amynteou Anthimou Bitaki and top PPC executives, «for a viable and economically viable solution to the problems of Western Macedonia's district heating under the data created by the demilitarization schedule.
Part of the technical and economic solution, will be the construction of M.High Performance Electricity and Heat Production Co. (ΣΗΘΥΑ) from the PPC, which will be the basis for meeting the heating needs of cities. This solution will also be based on natural gas. ".
The Association of Graduate Engineers (SDM) PPC Group [& IPTO], remaining a longtime supporter of technological developments and studying in depth all the parameters affected by the imposed changes in the energy sector., expressed early and immediately, from the first moment his positions and views:
- i. For the PPC Group, with the from 19.9.2019 Press release (a΄ relative) and by the relevant letter to the President and CEO of PPC SA., K. George Stassi.
- ii. For the draft law (ν. 4643/3.12.2019) "Energy market liberalization, PPC modernization, privatization of DEPA and support of RES ", as formulated in the respective consultation (b΄ relevant).
iii. For the new ESEK 2019, as posted on 16 December 2019, in the respective consultation (γ΄ σχετικό).
- iv. For the Long-term strategy for the year 2050 posted on 24 December 2019 in the respective consultation (δ΄ σχετικό).
- v. To the Deputy Minister of Energy, Mr.. C. Thomas, the manufacture 7.2.2020 in Ptolemaida in direct communication with him by the President of the Association, further informing that the Association was doing - after cooperation with specialized university advisors- in the investigation of reliable, sustainable and environmentally friendly, PPC investment scenarios and with great added value for those affected, from demilitarization, areas of the country.
Elaborate study, with resources of the Association.
So, at 12.6.2020 and in a letter to the Deputy Minister of Energy, Mr.. C. Thomas, the Association requested a meeting,
in the context of the implementation of relevant decisions of the Board., after informing that the study had been received (April 2020) assigned at the beginning of the year, with funding from the Association, to highly regarded specialized scholars concerning it:
"Investigating the Impact of the Implementation of the National Energy and Climate Plan (ΕΣΕΚ) announced in December 2019, regarding the use of PPC's lignite and water pumping units, before and after 2030 ".
In this study, examined everythingall possible alternative scenarios regarding the appropriate PPC production units that can operate, so competitive, as well as necessary in the future, taking into account the remaining units of individuals and the rules of the new market model that will apply in the coming years.
Conclusions of the study
- Among other findings and conclusions, scenarios emerged and were examined, according to which, it becomes possible:
A. The continuation of the operation of the Ptolemaida V Infantry Unit and after 2028, as a competitive unit of production with domestic fuel, compliant within the permissible CO emission limits2 with improvement mechanisms and significant benefits for the National Economy, such as partial depreciation of investment capital, maintaining hundreds of jobs, security of domestic electricity supply and low-cost district heating in the neighboring municipality of Eordea.
B. The conversion of a lignite unit of the Agios Dimitrios substation into a combined cycle unit of the FA. (ΣΗΘΥΑ), with very low construction costs compared to the construction of a corresponding unit from the beginning, fully competitive, non-polluting, with the maintenance of dozens of jobs and the provision of low-cost district heating to the Municipality of Kozani.
C. The transformation of a lignite unit of the Amyntaio substation into a combined cycle unit of the FA. (ΣΗΘΥΑ) with very low construction costs compared to the initial construction of a corresponding unit, fully competitive, non-polluting, with the maintenance of dozens of jobs and the provision of low-cost district heating to the Municipality of Amyntaio.
- In the above scenarios of the study, The utilization of the ready-made water pumping stations of PPC SA was also considered and taken into account.. (HQ of Sfikia – Asomaton and Nestos Treasure HR), Besides with 3 new YBS individuals according to the ESEK, for electricity storage operation (η.ε.) and management of the thoughtfully produced h.e.. wind and photovoltaic stations that are constantly growing, thus saving hundreds of millions of euros for the national economy and enabling the smooth development of the aforementioned forms of RES., according to the new ESEK 2019.
- A detailed technical analysis of the production unit was received. from waste, with the possibility of providing district heating for its utilization, in the planning of the post-Hellenistic period in Western Macedonia and Megalopolis.
So taking into account the above, combined with the data that:
- During the current period, the transition to the post-Hellenistic period is discussed in detail, with the aim of taking advantage of significant aid provided for this purpose by the European Union,
- There are reasonable concerns about misguided investments and unfinished major projects, as historically recorded in the field of energy (indicatively the diversion of the river Acheloos, the YS Mesochoras, the YBS of Ikaria, the heating network of Florina etc.),
The meeting with Mr. was requested. Undersecretary of Energy, as head of the new ESEK,
in order to present in detail the findings of this study in an effort to make a scientific and substantial contribution to the sustainable design of the post-Hellenistic period., with the presence and participation of stakeholders from the areas they face - once again in history- major and existing problems from the risk of abandonment and impending new wave of immigration of their productive potential and obviously of the younger age population.
Meetings of the Association and relevant information of the Mayors of Kozani, Εορδαίας, Defense and the competent Committee of Bodies of the Region of Western Macedonia.
The above was discussed with Messrs. Mayors of Kozani, Eordaias and Amynteou in meetings that took place during the previous period, who expressed both concerns about the issue of district heating, as well as for the loss of hundreds of jobs resulting from the gradual, but violent "erasure" of lignite plants in the areas of their competence.
also, at the last meeting of the competent Committee of Bodies established on the initiative of the Regional Governor of Western Macedonia and. C. Kasapidis, with the participation of Mr.. K. Mousourouli and all the involved bodies, the President of the Association, among others, expressed concerns about the impending unilateral development of RES (mainly in Western Macedonia), without the existence of energy storage and with only the criterion the existing infrastructure of the Air Transport Lines (GM) High Voltage (YT) and High-Voltage (ΥΥΤ).
particularly, pointed out that:
- It should not be the only criterion for the development of PV parks in the energy area, the transport capacity of the already installed GM YT and YYT, because they were made in such sizes, to be supplied with e.e.. the Country through controlled production units, such as lignite plants with an installed capacity of 4-5GW in previous years.
- Replacing this power may be even greater, after the applications for production licenses to RAE (PPC and individuals) these sizes also exceed, without solving the problem of production control of the e.e., will cause extreme phenomena (shock) in the management of the National Transmission System e.e.. The problem will intensify, given the oversized installed PV production. in a specific geographical area, which will be significantly affected by local climate fluctuations throughout the day for most of the year and not just by the repeated and ultimately predictable daily sunrise – sunset.
- According to the study received by the Association, there is the possibility of construction and competitive operation of up to one unit of VAT. (ΣΗΘΥΑ) in existing ready-made infrastructure of PPC (and IPTO, HEDNO), in the area that will mainly "stabilize" the transmission system, will create a new turnover, will fully meet the heating needs of the neighboring municipalities and will be the bridge for a smooth transition to RES in the coming decades.
The implementation of the aforementioned proposal will reduce the negative effects of a violent change in local communities and even the migration of populations, mainly young and highly dependent on the country through increasing imports.. in order to ensure the required coverage of demand needs e.g.. during the hours when there is a lack of production or from RES.
- The ready units of YAIS Sfikia and Thesaurus should act immediately and as a priority., until new private ones are ready, of PPC or their partnership, to cover as storage e.e.. part of the daily increasing production force from RES, in neighboring areas and in general.
- Improving the operation of the new Ptolemaida V substation under construction, with lignite drying technologies to increase the efficiency and withholding of CO2 for its further exploitation and continuation of its operation, with optimal efficiency and zero CO footprint2, in order to rationally depreciate one of the largest investments of the Greek people in recent decades.
Based on all of the above, the Association welcomes,
- the -for the first time- official announcement of convergence of stakeholders, on the occasion of the need to cover the district heating loads in the Municipalities, Kozani, Eordaias and Amynteou, with the construction-operation of a co-production unit (ΣΗΘΥΑ) and with FA from PPC.
- the continuation of PPC's investment activities in the Energy Centers of Western Macedonia and Megalopolis, originating from the planned PV parks, will be supported by the Association, especially when the Company's efforts to stay in these areas, accompanied by the substantial utilization of Engineers – Its executives and its trained technical staff.
However, it is pointed out that the construction of SITHYA Unit by PPC SA, only to meet the needs of district heating, under current conditions, it will be very difficult or even impossible to compete with the new "target model»Of the market, so an apparent "opportunity" can easily become a "trap", leading the Company to a new business impasse.
In this context, The Association will gradually present the findings of the specialized study that it commissioned and received, with the desired goal:
highlighting the most important operating scenarios for electricity generation for,
- developing new domestic activities, competitive and reliable production h.e..
- achieving the safe adequacy of the electricity supply with a balanced fuel mixture and low carbon footprint
- the smooth and healthy operation of the market e.g.,
in the following years in Chora.
By order of the Board.