IENE’s Annual «Energy and Development 2011» Conference Highlighted the Difficulties and Risks of Market Operation

Posted: Wednesday, November 30, 2011

More than 300 participants attended the 16th National Energy Conference “Energy and Development 2011”, organized by IENE at the Ledra Marriot Hotel, in Athens, on November 22-23, 2011. The conference’s theme focused on “The Adjustment of the Greek Energy Market to the New Economic Reality”. This unique event attracted professionals and experts from the Greek and the international energy sector at a very critical time for the Greek economy.

The conference opened with a keynote speech by the Deputy Minister of Environment, Energy & Climate Change, Mr. John Maniatis, who referred to government plans for the privatization of power generation and the sale of a number of plants of the Public Power Corporation (PPC-DEI), as well as of other companies of public interest.

Dr. Nickos Vassilakos, Chairman of the Regulatory Authority for Energy (RAE), presented the views of the Authority on the normalization of market operation, the need of liquidity in the wholesale market, as well as on the need for transition to a new target model.

On behalf of IENE, the chairman, Dr. John Desypris and the deputy chairman and executive director, Mr. Costis Stambolis, stressed the challenges that the energy sector of Greece is facing and the need to overcome economic stalemate by long-term planning, investment and market liberalization.

In a speech which attracted considerable public attention, Mr. Ben Van Houtte, representing the Task Force Greece of the European Commission, referred to the three priorities of the Task Force regarding the energy sector of the country: Modernization of electricity and natural gas networks, lifting of obstacles for investments and securing of funding for public and private investing in projects.

The chairman of the Greek Association of RES Electricity Producers, Mr. George Peristeris, referred to the measures that need to be taken for the further development of RES in Greece. The normalization of the the RES feed-in tariffs regime is one of the immediate priorities that Mr. Peristeris stressed.

The invited speaker at the conference’s official luncheon was the Minister of the Interior, Prof. Tasos Giannitsis (until recently chairman of Hellenic Petroleum S.A), who underlined the importance of the restoration of macroeconomic balance in Greece, in order for the productive forces of the economy to come into play and help the country return to a growth pattern.

At the conference’s 2nd Session, which covered natural gas and investments in Greece, Dr. Michael Thomadakis, member of RAE, said that the natural gas market in Greece is still in its infancy. However, it has made significant steps towards adulthood. Especially the last two years, have been characterized by the opening of the market and the participation of new players, especially in the LNG market.

Mr. Evangelos Kosmas, a senior executive representing the Public Gas Corporation S.A. (DEPA), referred to the target for the expansion of the gas network in the whole of Greece, stressing the existence of a solid economic basis for this.

Dr. George Paparsenos, CEO of the Hellenic Gas Transmission System Operator S.A. (DESFA), underlined the need for gas-fired power stations and new Gas Distribution Companies as the two main factors that will enhance the demand for natural gas in Greece.

Mr. Panayotis Kanellopoulos, Managing Director of M&M Gas S.A., which specializes in LNG cargoes, presented the activities of his company adding that a deal with the Bulgarian Energy Holdings (BEH) for buying of 1 bcm of natural gas is underway.

Mr. Christos Balaskas, Managing Director of the Attica Gas Supply Company (EPA Attica), presented the most recent data concerning the expansion of the company’s customer base and plans for the further expansion of the gas network.

Mr. Mathios Rigas, CEO of Energean Oil & Gas S.A., criticized the government’s decision to seek other outside investors in his company’s concession of the South Kavala natural gas deposit, by Energean, in spite of announced investments plans for turning the depleted field into permanent gas storage facilitity.

The next session focused on the electricity market and investments in Greece. Opening with speeches by Prof. Michael Papadopoulos (Chairman, Hellenic Transmission System Operator S.A. - HTSO) and Mr. Dimitris Rachiotis (Deputy Chairman, RAE), this session’s first part was dedicated to RES, cogeneration and electricity grids, with the participation of prominent representatives of the Greek RES market. Mr. Vasilis Spiliotopoulos (Audit Committee, Hellenic Wind Energy

Scientific Association), Mr. Alexandros Zachariou (Chairman, Hellenic Association of Photovoltaic Companies - HELAPCO), Mr. Antonis Gerasimou (Chairman, Hellenic Biomass Company - HELLABIOM), Dr. John Tsipouridis, CEO, PPC Renewables S.A., Mr. Elias Kakiopoulos (Secretary General, Greek Association of Small Hydropower Producers) and Mr. Costas Theofylaktos (Chairman of H.A.C.H.P and member of IENE’s Executive Committee) participated in a franc and exhaustive exchange of views on the challenges facing the market.

The organization and operation of the Greek electricity market was the subject of the second part of this session, which opened with a keynote speech by Prof. Pantelis Capros, Director of E3M-Lab (NTUA) and Chairman of IENE’s Scientific Committee. A panel discussion with the participation of key market players took place, analysing the problems that are still to be solved, so that the market can incorporate the requirements of market liberalization (read 3rd Energy Package). Mr. Elias Karydoyannis (Vice Chairman, EGL Hellas S.A.), Prof. Emmanuel Kakaras(General Manager, HAIPP), Mr. Const. Kouklelis (Chairman, UNICEN), Mr. Andreas Tzouros ( Managing Director, Elpedison Energy S.A.), Mr. Miltos Aslanoglou (Deputy Chairman B’, RAE) and Mr. Dinos Benroubi (Executive Director-General Manager, PROTERGIA S.A. ) participated in this lively discussion.

The second day (Wednesday, November 23) of IENE’s “Energy and Development 2011” conference opened with the fourth session, which covered regional energy developments. The Director of International Affairs of DEPA S.A., Mr. Constantinos Karayannakos, described the future plans of the company, announcing, in the long run, the formation of a regional natural gas trade company with the participation of local companies in SE Europe. The Director of DEPA characterised ITGI as the most reliable solution for the South Corridor. Mr. Rikard Scoufias, Country Manager of TAP AG for Greece, on the other hand, insisted that it is TAP the pipeline that will put Greece in the foreground for natural gas transmission in SE Europe. Mr. Pierros Chatzigiannis of DESFA underlined the contribution of the Revythoussa LNG terminal in promoting market liberalization and ensuring security of supply. Dr. Elias Konofagos, Deputy Chairman of Flow S.A., was optimistic for the hydrocarbons potential of the sea region south of Crete, because of the proved existence of numerous volcanic formations surrounding the seabed of the island.

The global view of the energy market was the subject of the fifth session. Mr. Dan Dorner, Senior Energy Analyst of IEA, stressed the importance of 2011 for the future trends in energy. The future of nuclear energy was put into question due to the accident at Fukushima, whereas “Arab Spring” seems to have jeopardized oil investments in North Africa and the Middle East. According to Mr. Dorner, all those developments pose an alarming scenery for energy in the start of the new decade.

Mr. Costis Stambolis, deputy chairman and executive director of IENE, forecasted that oil prices are likely to remain at their present current high levels of approximately 100 dollars per barrel over the next 12 months. He stressed the fact that average oil price for 2011 look likely to close well above $ 100 per barrel, the highest since 1864. Dr. Theodore Tsakiris, Research Coordinator of the Institute, emphasized the importance of the current political and economic instability in the Mediterranean region and its impact on the European energy security. Mr. Nicholas Sofianos, European Programmes Coordinator of IENE, on a presentation of global RES trends, focused on the accelerating expansion of renewable energy, which is largely encouraged by EU energy policies.

A keynote speech by Dr. Manthos Santamouris, chairman of Centre for Renewable Energy Sources (CRES) of Greece, opened the last session of IENE’s conference. Dr. Santamouris mentioned that, according to the current National Action Plan, energy consumption in the buildings sector will rise by 40% by 2030 and, therefore, there is considerable scope for large-scale energy efficiency measures which can take advantage of Greece’s excellent solar radiation conditions.

The conference closed with the presentations of selected papers by researchers and academic staff following IENE’s call for papers on innovative energy technologies and their contribution to the development of the Greek economy.

Greece’s Natural Gas Transmission Operator (DESFA) and two of the leading independent power producers, Protergia S.A and Terna Energy S.A., were the main sponsors of the conference, whereas the Public Gas Corporation (DEPA), Siemens S.A. and Hellenic Post (ELTA) were key supporters. Energia.gr, Greece’s top energy portal, “Kathimerini” newspaper and the “Energy World” magazine were the conference’s official media partners.