Aghis Christodoulopoulos HE&D S.A ICCI 2001 BİLDİRİSİ Coge,ıe.ratwıı, 'Wa.st.e r(!C(.}ver:g; '.R.f,newa6ks & On-site (.jeneratwn, Gas prices for cosıeneration plants in Greece ■ According to the National Gas Law 2364/95, Public Gas Corporation of Greece (DEPA) has the exclusive right to seli gas directly to customers consuming more than 100GWh/yr. Customers with annual consumption less than 100GWh/yr are supplied by the Gas Supply Companies (GSCs) of their areas or by DEPA in case !here is no GSC operating in the region and until such a company is formed. ■ Until now, DEPA was selling gas to industrial cogeneration with annual consumption more !han 100 GWh, at price of approximate O,18 US$/ Nm3. ■ The GSCs already formed in three areas (Attiki, Thessalia and Thessaloniki) have not yet published the tariffs for cogeneration plants. The latest information available show that the prices GSCs intend to apply for industrial cogeneration are as follows: 0.212 US$/ Nm3 tor consumption O - 2.2 GWh/year 0.204 US$/ Nm3 for consumption 2.2 - 60 GWh/year 0.193 US$/ Nm3 tor consumption 60 - 100 GWh/year Note: The above gas prices are calculated tor Bren! price at 25 US$/bbl and tor 1US$-360 GRD Critical issues for cosıeneration investments in Greece HE&D, as an investment company activated in the development of power projects, has analyzed the following issues as the most critical for CHP development in Greece: ■ High gas prices for cogeneration. ■ Low end user electricity prices ■ The legal framework regarding the purchase of the su rplus electricity. The surplus electricity !hat is not absorbed by the IPPs' eligible customers will be purchased in priority at prefixed prices or it has to follow the each time marginal price of the System? Current status for cosıeneration investments in Greece According to the Law 2773/99 and our discussions with the Greek Regulatory Authority, independent cogeneration producers (auto producers excluded) can operate under the following alternative schemes: Ali electricity produced by the cogeneration planı will be sold in absolute priority to the System Operator and at a prefixed price (70% of the energy charge and 50% of the power charge of the each time valid medium voltage tariff). The independent producer will not have the right to seli electricity to eligible customers. OR The independent producer after obtaining the "Supply License" will have the right to seli the electricity to eligible customers, but in !his case independent producers will not have the right to seli the surpl us electricity to the System Operator with priority and under prefixed price. Project evaluation Obviously the status under which the cogeneration investment is examined impacts on the viability of the project. Our company having evaluated various cogeneration projects concluded that cogeneration investments in Greece, under the above-presented status, are not viable. The results of the study for two indicative projects currently under development by HE&D are presented to the following diagrams: Cogeneration unit of 2,4 MW in a Hospital 30 -a-electricity selling price based on 70% of the medium voltage tariff (Note 1) �electricity selling price based on 90% ofthe medium voUage tari ff (Note 2) 5 2 5 Z:: 20 'C l ,s � u 2 10•------➔-------+------- 0,194 0,181 0,167 Natural Gas price for cogeneration(US/$/Nm3) Note 1: According to the law 2773/99 Note 2: Alternative scenario with improved pay-back time 0,153 Cogeneration unit of 25 MW in a Chemical lndustry 30 o 0,194 -e-- "etectricity selling prise based on 70% of the medium voıtage tariff (Note1) --+- "electricity selling price based on 90% ofthe medium voltage tariff (Note2) 0,181 0,167 Natural Gas pricc for cogcncrationUSS/Nm3 Note 1: According to the law 2773/99 Note 2: Alternative scenario with improved pay-back time Comments on the diaJırams 0,153 As shown on the previous diagrams, under the current selling price of 70% of the medium voltage tariff, the pay back period even for low gas prices is over 1 O years for both projects. it is obvious that under this framework the cogeneration projects in Greece are not attractive for investors. The above situation is improved when the price for selling electricity is 90% of the medium voltage tariff; a case whish is strongly promoted by our Company. Except from the above diagrams which are based on extended economic analysis, the same result is concluded under a simplified model for the evaluation of the production cost as presented below. EC0GENERATI0N W0RLD o 41
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