Official Address by the Minister of Maritime Affairs and Insular Policy of the Hellenic Republic, Mr Christos Stylianides, who stressed the importance of worldwide collaboration for the development of low and zero carbon fuels, asserting that finance, particularly through Public-Private Partnerships, is essential to meet the substantial capital requirements for decarbonization efforts.
For the seventh consecutive year, the Slide2Open Shipping Finance 2024 Conference took place on Wednesday, January 24, 2024, at Megaron, the Athens Concert Hall, Banqueting Hall. The event hosted 400 representatives from the political, business, academic, and research sectors, with online participation from 30,000 unique users, spanning 130 countries.
The first panel discussion of the afternoon section, “Shore Side Electricity (SSE) Challenges for Shipping and Ports” was called to address 3 main issues: (i) The regulatory framework and pricing of maritime electricity, (ii) Port perspectives: Charting the course for future development and cold ironing integration and (iii) Green energy: Introducing a comprehensive solution package for electrifying ships at Greek ports using green energy sources. The discussion was moderated by Prof. John Prousalidis, Professor of Marine Electrical Engineering, ΝTUA, Vice-Chairman, IEEE-MSCC and member, IEEE/EPPC Working Group on Energy, Head of the Industrial Connection Activity Sustainable Maritime of ΙΕΕΕ and the discussants included Ms Ariadni Psimara, New Business Development Manager in Attica Group, Mr Dimitris Fourlaris, Second VP of the Regulatory Authority for Waste, Energy and Water (RAWEW), , Mr Anastassios Manos, CEO at Hellenic Electricity Distribution Network Operator (HEDNO), Dr Alex Papalexopoulos, President & CEO, ECCO International, Inc. / CEO and Chairman of the Board, ZOME Energy Networks, Inc., Mr Dimitris Spyrou, Consultant – Head of EU Project Sector, Piraeus Port Authority (PPA) SA and Mr Michael A. Valsamas, Director of Ships’ Design and Construction at the Ministry of Maritime Affairs and Insular Policy of the Hellenic Republic.
Mr Dimitris Fourlaris raised a few questions, including who the stakeholders are (ports, ship owners, etc.), explained that there will be huge energy transactions, presented considerations relating to the cost of electricity and the selling price, as well as to an open electric energy market. In Europe each partner must have a distinct role in the electric market. The amounts of energy required for shore side electrification of ships are huge and special care must be taken. Finally, infrastructure upgrading is required.
Mr Anastassios Manos explained port electrification by giving the example of Igoumenitsa, which has 2000 houses. What they are asked is to add one Igoumenitsa to the existing Igoumenitsa. This is at stake. We need enormous amounts of power, and the grid has to be modernized, digitalized and close collaboration with the regulator, universities and the ministry is essential. Each port is different. All equations cannot be solved at once and each case must be seen separately and move on a steady pace.
Dr Alex Papalexopoulos believes that it is a good opportunity to establish an energy market. We are in the intersection between two major sources: technology innovations on the one hand and policies for decarbonization on the other. In California ports are not energy hubs. Here we want to transform the port into an energy hub, which means that the port becomes an active energy player. It takes a lot, but it can be done. Infrastructure must be ready to have an operational model of the energy market. The American experience has shown that markets cannot solve the infrastructure problem; transmission and distribution have characteristics of a public good. In short, the infrastructure projects that are needed for energy transition must be built separately from the markets.
Mr Dimitris Spyrou discussed the long-term economic benefits, the development of on shore power supply infrastructure, the participation of PPA in European projects, efforts to implement OPS positions on the port of Piraeus, coverage of power demands, which are crucial for PPA, collaboration with energy authorities that is crucial for the port, and pricing policy. There is no accurate estimate of the total cost of implementation of electricity systems in Piraeus yet.
Mr Michael Valsamas highlighted the commitment of the Ministry of Maritime Affairs and Insular Policy and noted its dedication to the development of alternative fuel sources. The EU legal framework presents unique challenges and opportunities, but the strict deadlines underline the urgency of the issue. Therefore, swift action is needed, and electrification is top priority, together with other options, e.g. hydrogen solutions. Strategic meetings are held with stakeholders, to achieve collaborations and public/private partnerships into meeting sustainability goals. Apart from a strict time frame, funding is another issue. The Ministry of Maritime Affairs and Insular Policy has adopted a strategy to collaborate with the Ministry of Environment and Energy to ensure expertise. The transformation of ports requires funding and EU programs are explored (including CEF Energy). Also, RRF allocations are moving to this area. Non-fossil fuel usage for ships operating in public interest lines is also explored. Finally, the Ministry works with the European Commission for the green transition of Greek islands.
Ms Ariadne Psimara from Attica Group, the largest ferry operator in Greece, noted that green transition is the biggest challenge. They have developed a new strategy and set specific targets. They are optimizing vessel speed; they are looking into retrofitting vessels and are investing in new buildings. Port readiness is essential, not just in Piraeus. They have not received any funding yet as a shipping company and one must be very innovative. Complying with regulations is essential, but one should not forget the sustainability of the company.
