Ms. Maria Spyraki, MEP, Rapporteur of numerous legislative interventions on energy and New Democracy candidate for Thessaloniki, visited the headquarters of EDA THESS in the context of the working meeting held with the General Manager, Mr. Leonidas Bakouras and executives of the Company. Issues related to the EU Methane Emissions Regulation, the Energy Efficiency of buildings, renewable gases and the Sustainability of the Company and its Infrastructure were at the top of the agenda.
Key points driving the next steps of the EU that are of interest to the Operators were brough into the discussion.
The first topic explored was the new Methane Emissions Regulation, on which Ms. Spyraki has worked extensively in 2021 as an EU Rapporteur with the aim of developing the European strategy for Methane. The strategy drawn up for the first time bears her mark and is based on distinct pillars prioritizing the applicability of new technology.
The first pillar concerns energy and networks. With regard to the Emission Monitoring, Reporting and Verification (MRV) system, the new regulation should be based on a reporting system originating from the Member States and the collaboration with an Independent Verification Body. These two mechanisms will jointly control and monitor the relevant reports. This practically enables the effective investigation of leaks and the planning of targeted Inspections to control and repair leaks, taking into account the minimum limits set for the fulfillment of these obligations.
The second pillar concerns the handling of reports and the way to create a central control mechanism regarding leaks inside and outside the EU. In this context, Ms. Spyraki emphasized that it is equally important that the control criteria and the obligations also govern the external environment, i.e. they are applied during the importation of natural gas from third countries.
In this context, she added that: " No sector will be exempted from the endeavour to tackle methane emissions, not even agricultural production and waste management. However, in the Energy sector, large-scale leaks can be dealt with more easily based on the efficient cooperation of Operators and the advancement of technology and infrastructure."
For his part, the General Manager, Mr. Leonidas Bakouras, pointed out the need to amend certain provisions of the Regulation - as is also advocated by the Gas Distributors for Sustainability (GD4S) - so that the effective reduction of methane emissions can be achieved within the framework of technical rules and conditions that are sustainable for both Operators and consumers. Furthermore, the differences between the sectors of the gas value chain, i.e. upstream, intermediate and downstream systems, should be taken into account.
Mr. Bakouras emphasized that "in the context of the membership of EDA THESS in GD4S, a special working group has been set up to analyze the critical points and the effects brought about by the Regulation on the works of the Operators, concerning specific issues such as the frequency of leak control and repair inspections, Emission Monitoring, Reporting and Verification Procedures as well as Network Venting operations. We, in EDA THESS, are planning to perform leak investigation throughout our network using a new innovative technology brought by our Shareholder Italgas, starting from the beginning of the new year, to ensure the accurate detection and reporting of Methane emissions”.
As the General Manager underlined: “the future of natural gas network infrastructure can bring a dual benefit. On the one hand, weaning off Russian supplies by using Liquefied Natural Gas and leveraging the country's critical LNG infrastructure. In this context, the Company is planning to supply all new Remote Networks with LNG in the next 5 years, thus strengthening the security of supply.
On the other hand, the inclusion of renewable gases (biomethane, hydrogen) in the existing infrastructure to achieve a fair energy transition at the lowest possible cost. EDA THESS business plan includes investments for the repurposing, upgrade and digitization of the infrastructure, which will be further supported by the expertise and know-how of Italgas. The aim is to enhance the performance and reliability of the network which will also allow the distribution of renewable gases (biomethane, green hydrogen) while accelerating circular economy and the decarbonisation of the final energy mix. Infrastructures that are currently delivering natural gas, are becoming sustainable, as they will soon distribute increasing amounts of renewable gases”.
The MEP identified the injection of Biomethane as the "next big thing" for EDA THESS, as it will contribute to the achievement of the European target of 35 bcm set in the REPowerEU action plan. And that is because Biomethane is a solution that also addresses the management of agricultural waste at the EU level. On this matter there is also the question of large-scale agricultural waste collection in Greece. Ms. Spyraki also added: "I am very happy because what I am advocating at the EU legislation level and what I have committed most of my time in Brussels to, are today becoming a reality thanks to EDA THESS, here in my hometown, Thessaloniki. What we still lack today is a business case and we should work to create large-scale units but also to set up the conditions for subsidizing such facilities and creating incentives for the implementation of investments. I would like to emphasize that the role of EDA THESS in this process will be of major importance and I should thank you for actively following up and aligning with our aspirations in the European Union, as a modern and efficient company. As an MEP, I am in contact with your fellow DSOs in Europe and I want you to know that you have an ally in Brussels supporting your work on the energy transition."
At this point, Ms. Spyraki praised the considerable efforts of EDA THESS which has included in its development planning investments to upgrade the infrastructures into hydrogen-ready. This is a prerequisite for the long-term funding of operators’ investments despite the challenges and problems related to the maturity of the technology. As the MEP stated: "what was announced as a Hydrogen Bank last September in Strasbourg by Mrs. Von Der Leyen is of immediate interest to Operators, as it is a process that gathers hydrogen projects. You as Operators have the potential through your activity and being acquainted with the "Unbundling” regime to become the hydrogen receivers locally. After all, projects must start on a small scale so that they can keep up with the maturity of both technology and infrastructure development."
Commenting on this, the General Manager stated that for the revision of the Gas Package to be successful, the legislative package should provide the possibility for gas distributors to support the development of the hydrogen market by expanding their activities to hydrogen distribution as well. Consequently, the provisions of the Directive and the Regulation regarding the Unbundling Regime should follow the existing regulatory rules that are effectively applied to gas distributors and remove any unjustified barriers, so that gas distributors develop into hydrogen distributors in the short, medium and long term.
With regard to the energy efficiency of the building sector, both agreed that it is one of the key pillars not only to achieve the EU's climate goals, but also to reduce dependence on imported fossil fuels, to increase security of supply and promote the use of renewable energy sources.
Referring to this matter, the General Manager underlined that the issues of energy efficiency - "as an energy source per se" - will be further promoted thanks to the arrival of Italgas in the Greek market. The modernization of facilities, utilizing smart heating solutions that are ready to accept renewable gases, will highly contribute both to the achievement of decarbonization targets and to the reduction of the consumption profile by at least 25% in residences and 35% in public and municipal buildings.
In concluding, Ms. Spyraki added that "the cheapest energy form is the one that we have not consumed yet. As a country, we still perform poorly in terms of energy efficiency in public buildings, and this is why binding targets have been set which will be translated into large-scale interventions for the coming years."
In the last part of the working meeting, the General Manager highlighted the Company's commitment to optimizing its performance according to ESG parameters. EDA THESS has set sustainability goals that are integrated into its strategy related both to the execution of its operations and the development of infrastructure. In this context, Mr. Bakouras stated that "the Company includes a distinct action plan in its business planning for the next 5 years, aiming to increase energy efficiency, reduce energy consumption and mitigate direct and indirect GHG emissions "
