Issuance of licenses for exploration and storage of carbon dioxide by the Hellenic Hydrocarbon Company

The Hellenic Hydrocarbon Management Company (EDEY) undertakes the issuance of licenses for exploration and storage of carbon dioxide (CO2) as well as the overall management of the rights of the State for the storage of CO2 or other gaseous and liquid elements, which helps tackle climate change.

This provides for an amendment of the Ministry of Environment and Energy that was submitted yesterday to a bill of the Ministry of Finance.

As pointed out by RIS, the appointment of a body that will undertake the issuance of licenses for carbon dioxide exploration and storage projects is imperative, given that the Fund for Recovery and Durability has included a project for the development of a carbon dioxide storage unit in N. The milestone is the full licensing of the station by the end of the first half of 2024.

According to other provisions of the amendment, the Operators of Natural Gas Distribution Networks (DEDA, EDA Attica, EDA THESSA) are obliged to pay to the competent Public Financial Service, a special fee of 14% of their net profits, of the year 2021, in order to be returned to Local Authorities. First degree, which are located within the geographical limits of activity of the project managers. The procedure for the payment of the special fee to the beneficiaries of OTA will be determined by a ministerial decision while its distribution is made according to the participation of each OTA. in gas consumption for the year 2021.

The amendment also provides for the establishment of the new renewable energy account which is renamed to “Special RES and Storage Account” and acquires two new sub-accounts: the first concerns the new RES units that will be put into operation from 1.1.2021 onwards (are the units with the lowest compensation prices which reduce the cost of electricity) and the second the electricity storage units that are part of the operational support regime.

Article 1: Investment and operational support in electricity storage stations

• The general framework for the granting of investment and operating aid to electricity storage stations that will be selected through competitive procedures is defined, as well as the support framework for storage stations selected for the granting of individual aid.
In particular, a decision of the Minister of Environment and Energy determines the manner of conducting the competitive procedures, the number and characteristics of these tenders for the granting of investment and operating aid, the duration of the granting of this aid, etc.
• A decision of the Minister of Environment and Energy also determines the framework and principles for granting operating aid to projects that have been selected to receive individual aid.
• The competitive bidding process is announced by a decision of RAE.
• By decision of RAE, the regulatory period for the calculation of the operating aid and the methodology for the calculation of the amount of the operating aid granted to each assisted station are also established.

Article 2: Special Account for Renewable Energy Sources and Cogeneration of High Efficiency – Heat and sub-accounts

• Article 2 includes provisions for the reform of the Special RES Account, as determined by the respective milestones of the Recovery and Sustainability Fund.
• The account is renamed to “Special RES and Storage Account”.
• Two new sub-accounts are created in ELAPE:
o Sub-account of new RES projects. It concerns projects that were put into operation from 01.01.2021. The sub-account must be operational by June 30, 2022.
o Electricity storage systems sub-account. From this sub-account are reimbursed the owners of the electricity storage stations that are part of the operational support regime.

Article 3: Installation and operation of electricity storage stations for pumping storage technology

• Article 3 stipulates that what applies to the licensing of hydroelectric stations with an installed capacity of more than 15 MW, also applies to the installation and operation of electricity storage stations for pumping storage technology.

Article 4: Expansion of the purpose and source of income of the Hellenic Hydrocarbon Management Company (EDEY)

• EDEY undertakes the issuance of licenses for exploration and storage of carbon dioxide (CO2) as well as the overall management of the rights of the State for the storage of CO2 or other gaseous and liquid elements, which contributes to tackling climate change.
• This provision covers a key shortcoming in the existing legal framework, which concerns the designation of the competent body for these activities.
• It is envisaged to cover the operating expenses of EDEY for the exercise of the new responsibilities and purposes, from sources and manner that will be determined by a joint ministerial decision.
• The designation of a body to undertake licenses for carbon dioxide (CO2) exploration and storage projects is imperative, as the Recovery and Resilience Fund (TAA) has included a project to develop a carbon dioxide storage unit in N. Kava. .
• The full licensing of the station by the end of the first half of 2024 has been set as a milestone in the TAA.

Article 5: Special fee in favor of first degree local authorities for the year 2021

• The Distributors of Natural Gas Distribution Networks (DEDA, EDA Attica, EDA THESSA) are obliged to pay to the competent Public Financial Service, a special fee of 14% of their net profits, of the year 2021, in order to be attributed to the Local Authorities located within the geographical boundaries of the project managers. The fee is paid within three months from the entry into force of this.
• By joint decision of the Minister of Environment and Energy, Interior and Finance, the procedure and conditions for the payment of the special fee to the beneficiaries of OTA are determined. First degree. Its distribution is made according to the participation of each OTA. in gas consumption for the year 2021.

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