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PPC remains a potential supplier to the energy-intensive industry, although talks between the two parties have been revived. “Now we don’t have to go to PPC anymore, it should come to us,” says a representative from a major industry (AP Photo/Thanassis Stavrakis).
Weaning energy-intensive industries from CPC it even started with the most well-known names in the sector, which bring together the biggest consumptions.
Aluminum from Greece, the largest consumer electric power in the country, with a consumption of 3 terawatt hours per year, it has started to source electricity from its subsidiaries Protection and the Watt&Volt and launches its complete independence from the dominant company, using the strong portfolio of Renewable energy sources which has, but also the direct connection line of the new natural gas unit with the metallurgical facilities.
The second largest consumer, the Viohalco group, with a consumption of 1.4 terawatt hours per year, has been buying electricity from Iron for a few months now (GEK TERNA Group) and is in the final stages of signing contracts with photovoltaic producers, whose energy is also managed by GEK TERNA’s subsidiary, Optimus Energy, which is the largest RES Cumulative Representation Body (FoSE RES) in the Greek market.
According to reports, the cement industry in Titan, with a consumption of 0.5 terawatt hours per year, is also looking for an alternative supplier. Cement industry Titan’s contract with PPC expires next June and the company is said to be in talks with Iron and Protergia.
THE ELPE have already left PPC and derive electricity from it Elpedison (joint company with Edison) and at PPC there are currently the AGET cement plant and the MEL paper mill, with lower consumption of respectively 0.4 and 0.08 terawatt hours per year.
The path for energy-intensive industries to flee PPC was essentially paved by the company itself, since with the expiration of fixed-rate contracts at the end of December last year, it began negotiations for new tariffs. based on the wholesale market price. In this way, PPC was essentially seeking to open up the high voltage market, a sector that for many years was mainly driven by political decisions, due to its dominant position in the market.
According to the information, the cement industry of Titan is also looking for an alternative supplier.
PPC’s share of high voltage remained for many years close to 95%, before falling in 2021 to 87.8% and in 2022 to 88.3%, at which point its average share of the supply market fell. same year was reduced to 62.4%. On the contrary, in the medium trend where profit margins are high, PPC’s share has gradually decreased to 44.2% in 2022, and in the low trend, it has fallen to 65% respectively.
The transition from the historic model of electricity supply to a contractual basis to fully cover the needs of energy-intensive industries is a multi-factor equation, adapted to new and future needs, and is a difficult process that takes time.
Bilateral contracts
Energy-intensive industries in the country have also started using the tool of long-term bilateral contracts (PPA) with RES producers, after the exclusion of production energy from the ceiling to the wholesale market. The PPAs signed take into account the activation of the Green Pool from 1.1.2024, a mechanism which has been notified for approval to the Commission and will partially subsidize the incremental cost to industry of switching from conventional energy consumption to renewables.
GEK TERNA officially announced yesterday that by using the comparative advantages and synergies of its subsidiaries, Iron and Optimus Energy, as well as recent legislation which allows the exclusion of bilateral contracts for energy-intensive consumers from the wholesale market cap, it completed the first contracts to energy-intensive consumers. Under PPA contracts, according to the company’s announcement, Iron’s energy-intensive industrial and commercial customers benefit from customized green power solutions, sourcing power from renewable power plants represented by Optimus Energy. .
PPC remains a potential supplier to the energy-intensive industry, although talks between the two parties have been revived. “Now we don’t have to go to PPC, it should come to us,” says a typical representative of a large industry. Discussions are continuing on the basis of the signing of 10-year contracts with the new photovoltaic parks of PPC and until their realization with the energy of the lignite units of the company.
