ECONOMY

Wind power seems the answer to Crete’s electricity shortages

Crete can look to its energy future with renewed hope after the inauguration of a new wind-power park late last year. For years the island has suffered from energy shortages due to the insufficiency of its existing power installations and the wrong zoning regulations, leftovers from the past that did not take into account the growing cities in the north. «We do not just have an energy deficit; we are energy starved, which becomes an obstacle for the further development of Crete,» said Iraklion Prefect Dimitris Sarris. Therefore the new wind park inaugurated on November 26 at the west end of Crete, at Phalaserna in Hania prefecture, was much-needed good news for the island’s energy balance. It adds to the 10 or so windparks already operating on the island. Constructed on a windy and relatively inaccessible area 800-1,000 meters in altitude, the park consists of 11 VESTAS wind power generators with a total installed output of 9.35 megawatts (MW). The investment came to 10 million euros and was completed in record time as it only took nine months from start to finish. Power cuts have been common on the island, particularly during the summer months as the existing power units at Iraklion and Hania have been unable to satisfy the rising demand, while environmental concerns prohibit them from increasing their output. The new Public Power Corporation (PPC) station at Crete’s eastern extremity is not completed yet in terms of installed power, as the first 105 megawatts are operating now while another 105 will be added by 2007. The rapid development of Crete in the last 15 years has resulted in a virtual doubling of the electricity demand: While in the rest of Greece the average annual growth in power needs is 4 to 4.5 percent, in Crete this came to 8 percent two years ago and is now at 6 percent. Therefore the existing supply of 695MW is simply not enough. Key park What makes this windpark special is that it is the first one operating in western Crete and opens up the area for wind utilization, as a basic network of roads has been built. This will allow the installation of other parks in the region, which stands out for its high energy potential due to an average wind speed of 10 meters per second. The area had until recently been cut off from the rest of Crete. It can now host wind parks of over 60MW, making it an ideal location for investment in a renewable energy source (RES). Speaking at the opening of the park, the secretary-general of the Development Ministry, Nikos Stephanou, confirmed the government’s commitment to the development of RES. He also mentioned the priority the ministry gives to promoting wind-power investments, and how in the last 18 months the permit-allocation process has been speeded up, leading to the approval and installation of more than 30 percent of the total operating wind power in Greece (which remains one of the smallest in Europe with just 250MW). The new park in western Crete is important for another reason, too: It is one of the few completed foreign investments in the energy sector in the country. «The new wind park along with the rights of other parks owned by Greek construction company Ktistor SA in Crete as well as in other parts of the country have been transferred to EEN Hellas, a Greek subsidiary of Europe’s biggest electricity company, Electricite de France (EdF),» Ktistor’s president, Giorgos Fakidis, told Kathimerini. He added that his company, «as a partner of EdF, has undertaken the construction and completion of a series of wind parks belonging to EdF.» The utilization of wind power for electricity production began in Crete some 10 years ago, although the wind has traditionally been a precious source of energy for agriculture over the last 10 centuries. Existing parks today contribute 106MW, which covers the 10 to 12 percent of electricity produced on the island and about 15 percent of installed power. Studies suggest that there is the potential for the trebling of the existing installations, so that wind-generated power can cover 30-35 percent of Crete’s electricity needs without causing problems for the stability of the network. Crucial conditions for that include the correct zoning plans (now being formulated) and the expansion of the electricity distribution networks, considered exceptionally difficult. EdF’s plans in Greece For the French investors the development of wind parks in Greece is a good enterprising opportunity, as for them this country «offers the essential support for the development of RES through investment subsidy and the appropriate legal framework that is vital for their realization,» said the general director of EdF’s Energies Nouvelles, Paris Mouratoglou, who has Greek origins. Beyond the direct financial benefits from the operation of the existing wind parks and those about to operate, EdF EN also looks forward to its «green» benefits, as RES installations count as credits in the emissions-trading scheme of the EU. So instead of paying hefty sums to buy emission rights, EdF prefers to develop wind parks and promote other RES applications such as solar and geothermal energy. This is a policy PPC could have also followed in the last decade had it been able to see beyond lignite and natural gas. On EdF’s presence in Greece, Mouratoglou said that «EdF EN is the EdF subsidiary on RES, securing it huge technical abilities and serious investment capital. The development of EdF EN in Greece relies on Greek corporate partners with the advantage of local market knowledge. This combination of corporate effectiveness and strong force will be particularly fruitful if supported by an investment climate that remains stable to allow for long-term prospects.» Mouratoglou added that «we are ready to include Greece in our investment priorities for expansion next to France, Portugal, Italy, the UK and the US. Our target is to be among the top three operators in those target-countries and develop a total power of 3,000MW by 2010.» He also figures that, including the new park in western Crete, EdF EN has a total of 45MW of wind installations in Greece, plus another 66MW to be completed within the year as a result of acquiring in July 2005 the windpower companies owned by Ktistor. «Additionally, EdF owns a portfolio of positions with a potential of 800MW in theory, as in practice that is not easy,» concluded Mouratoglou.

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