Energy transition / The thorns for energy-intensive industries

Recently, more and more often it is mentioned that the European industry is facing a big problem due to the increased energy costs. The problem is exacerbated by the fact that the leadership of the European Union is pushing for a reduction in CO2 emissions. In fact, the European Union recently gave the “green light” to the Net-Zero Industry Act, which sets a benchmark for the production capacity of strategic net-zero emission technologies to cover at least 40% of the European Union’s annual growth needs by 2030. However, the target appears to be unpopular within Europe, with analysts and market insiders talking of the risk of business “exiting” Europe if it does not measures to support them are decided. The issue of the energy transition is on the agenda of the parties’ campaign ahead of the European elections. There are different opinions on this matter…

The delays in the liquidation of EETMEAR

In recent years, Greek industry has seen energy costs rise, requesting very early on the creation of additional electrical space in order to advance RES projects that provide energy through power supply agreements (PPAs). Another issue they raised from the beginning is the promotion of energy offsetting. To date, few PPAs have been signed between energy producers and industries, but energy conservation has not progressed as much as it should have. Speaking recently, the president of the Union of Industrial Energy Consumers, Antonis Kontoleon, at a conference on “Energy Efficiency in Industry” emphasized that many people are talking about the deindustrialization of Europe. He noted, in fact, that due to the energy crisis, many energy-intensive industries stopped or shrunk (steelworks, fertilizers), with no signs of restarting to date…

It should be noted that a very important problem in recent years has been the delays in the liquidation of the Special Fee for the Reduction of Pollutant Gas Emissions (EETMEAR). This results in companies that have been selected to have a reduced ETMEAR being charged 8.78 euros/MWh instead of 2.55 euros/MWH, despite the fact that a state aid mechanism has been in force for four years. The Union of Industrial Energy Consumers (EBIKEN) in a recent letter to the leadership of the Ministry of Environment and Energy referred to the information on the increase of ETMEAR, from 17 euros/MWh to 24 euros/MWh, which will burden, according to the Union, further the medium voltage industries, if at last the present twisted situation is not put an end to. He also emphasized that “the same charge of ETMEAR for all consumers in MT continues unjustifiably. The same applies to HT (High Voltage) consumers, regardless of whether they are eligible for a reduced ETMEAR or not, i.e. a single charge of 2.47 euros/MWh applies.

There are also delays regarding the Temporary Crisis and Transitional Framework (TCTF) state aid mechanism. The specific mechanism was approved by the European Commission due to the energy transition and the war in Ukraine. In its letter, the Union of Industrial Energy Consumers to the Ministry of Energy emphasized the delays in issuing the ministerial decision. According to information, the specific ministerial decision is expected within the month. The amount of the subsidy, as stated in the letter, “is calculated based on a mathematical formula that takes into account the difference in the cost of electricity during the eligible period from 1.4.2023 – 30.6.2024 with the cost of energy during the reference period, i.e. 2021, plus by 50%, as long as certain strict criteria are also met”. It should be noted that the specific measure has not only already been implemented in most European countries, but the corresponding amounts have been disbursed. The letter stated, finally, that the registration of the data for the industries to be selected must be completed by 31.7.2024 and the payment of compensation must be completed by 30.9.2024.

Against the background of these problems in the previous days, sources from the Ministry of Environment and Energy revealed that a framework of actions is being prepared with the aim of reducing the cost of electricity, which will also concern large and medium-sized enterprises. The aim is to shift demand to midday hours, where electricity prices are not high. At those times there is an oversupply of energy due to the large production from Renewable Sources. However, due to reduced demand, production cuts are being made. In order to achieve the transfer of demand during times of energy oversupply, businesses – many of which already have – will have to acquire “smart” meters. In this way, multi-zone tariffs will be gradually expanded.