The Initiatives of European Island Authorities INTERNATIONAL CONFERENCE Las Palmas, Gran Canaria December 2-3 2016 The Initiatives of European Island Authorities The case of Greek Islands Kostas Komninos Director, DAFNI – Network of Sustainable Greek Islands Energy Expert, AEGEA – Aegean Energy and Environment Agency

Network of Sustainable Greek Islands The DAFNI network Network of Sustainable Greek Islands DAFNI is a network of island local authorities DAFNI is a non profit organisation DAFNI has 40 members, 38 Municipal and 2 Regional members DAFNI promotes sustainable development in Greek islands through integrated actions in the fields of energy, water, waste, mobility, environment and local development DAFNI is founding member of the Pact of Islands, initiative promoting sustainability in EU islands through local energy planning and engagement of local authorities and citizens DAFNI is the coordinator of the Smart Islands Initiative promoting islands as test beds for innovative projects

What is special about Islands Structural handicaps related to energy Energy planning based on seasonality High reliance on hydrocarbons, high potential for emissions reduction Obstacles to reduce emissions for interconnected islands due to low capacity cables that do not allow high RES penetration Obstacles to reduce emissions for non-interconnected (NI) islands due to technical restrictions in the grid that do not allow high RES penetration Difficulty to introduce natural gas in the islands’ energy market Cost of energy is significantly higher due to transportation costs First line of defence and most severe impact from climate change compared to continental regions Often scarce water resources – Energy intensive desalination plants Waste to be managed locally – Impossible to go to economies of scale

What is special about Islands Opportunities Many islands regions (NI ones), unlike mainland regions, are producing locally CO2 emissions in their territories and can commit to reduce them. Islands host locally all the energy, water, waste and waste water management utilities. The integrated management of these infrastructures may create interesting paradigms and accumulated results. Insularity issues faced by islands are in many cases similar with the insularity issues faced by mountainous and geographically isolated areas of continental Europe. The experiences of islands can be easily replicated and transferred to these areas too. Innovative investments such as smart grids, energy storage and efficiency have a much higher impact on islands; especially non-interconnected ones. Islands can function as test beds for different innovative technologies in the sustainability area which then can be scaled up to towns and cities of continental Europe

What is special about Islands EURELECTRIC report – June 2012 “EU islands: Towards a sustainable energy future” The report makes the following recommendations to national and European policymakers to incentivise the transition towards a sustainable energy future Set up an EU Island Sustainable Energy Action Plan 2020 Improve security of supply through diversification of power generation technologies, as well as interconnection where possible Use islands as a priority test-bed for innovative technologies such as storage, smart grids and RES. Foster RD&D on islands Use exemptions appropriately and address the market failures that often occur as a result of limited size and isolation

What is special about Islands Political dimension Recognition of insularity by European Treaties (Article 174 of the Lisbon Treaty) and in the European Directives Political support from the European Parliament Musotto Declaration (2007), Written Declaration 37 (2011) Call for tenders of the European Commission – Preparatory Action for Islands (2008) Political support and Declaration from major island authorities and regions (through the Islands Commission of the CPMR) “Smart Islands“ is the new strategy for the European Islands (September 2013) – drawing inspiration from Smart Cities and Communities “Smart Islands“ is an own-opinion by the European Economic and Social Committee (March 2015)

What is special about Islands Political dimension – Latest Progress 30.11.2016 Winter Package Communication from the Commission “Clean Energy For All Europeans” ANNEX 2: Action to boost the clean energy transition Chapter 8. Governance and partnerships for effective delivery “Islands and island regions provide platforms for pilot initiatives on clean energy transition and can serve as showcases at international level, as, for instance, in the EU's outermost regions with the case of El Hierro (Canary Islands), 100% renewable energy island. The Commission would like to help accelerate the development and adoption of best available technologies on islands and island regions, including exchange of best practice in financing and legal and regulatory regimes, and in energy for transport. The first step is to bring the islands themselves together, regardless of their size, geography or their location.”

The Initiatives of European Island Authorities

Pact of Islands – How it all started EU supported initiative launched in 2011 under the ISLE-PACT project, co-funded by DG-ENERGY, to promote local sustainable energy planning taking into account the special characteristics of islands An initiative in liaison to the Covenant of Mayors but focusing on the islands’ special characteristics Island Sustainable Energy Action Plans (iSEAPs) and Bankable Projects produced for the signatories Methodologies and tools for planning and monitoring the ISEAPs provided to the signatories Commitments To submit an iSEAP one year after signing the PoI To monitor and update the iSEAP at least every 2 years To realise projects contributing to the EU202020 KPIs 64 signatories from: Cyprus Denmark Estonia Greece Italy Malta Spain Sweden Portugal United Kingdom

Sustainable Islands of Europe Cluster of Scotland 10 members Cluster of CPMR 6 members Cluster of Spain 9 members Cluster of Portugal 17 members Cluster of Sweden 3 members Cluster of ESIN 21 members Cluster of Estonia 22 members Cluster of Denmark 5 members Cluster of Malta Cluster of Greece 28 members Cluster of Cyprus www.sustainableislands.eu 150 members 11 clusters 250 trainees 61 bankable projects

Current PoI Signatories Signatories = Islands Cyprus – 16 municipalities Denmark – 1 island Estonia – 3 islands Finland – 4 islands France – 5 islands Greece – 32 islands Ireland – 1 island Italy – 11 islands Malta – 5 municipalities Portugal – 11 islands Spain – 11 islands Sweden – 11 islands UK – 1 island Cape Verde – 10 islands 117 islands have signed the Pact of Islands as of today

What’s next? Smart Islands Initiative Following up on the SMILEGOV Smart Islands Strategy the Smart Islands Initiative seeks to demonstrate that islands can host pilot projects and produce knowledge on smart and efficient resource and infrastructure management, which may be then transferred in mountainous, rural and generally geographically isolated areas but also scaled-up in big cities of continental Europe and beyond SI Initiative advocates in favour of a place-based, transformative development agenda that taps into islands’ competitive advantages, generates local growth and prosperity and contributes to EU policy goals in the fields of energy, climate, innovation, circular economy, transport and mobility, blue growth, and the digital agenda

Smart Islands Initiative Smart Island refers to an insular territory that creates local sustainable economic development and a high quality of life for the local population by putting in place smart and integrated solutions to the management of infrastructures and natural resources, namely energy, transport and mobility, waste and water, all while promoting the use of innovative and socially inclusive governance and financing schemes. Smart is used to refer to the adoption of an integrated approach to the management of islands’ infrastructure and natural resources and thus create an enabling environment for sustainable economic activities to flourish. The Smart Islands initiative unfolds in three main directions Smart Islands Initiative Smart Islands Forum An annual event for networking, knowledge exchange and project development Smart Islands Declaration A manifest to mobilize political and financial support towards islands seen as field of innovation and excellence Smart Islands Platform An EU scale organisation to promote smart, integrated and sustainable policies and projects of interest for its members

Smart Islands Initiative Where we stand today 1st Smart Islands Forum took place in Athens in June 2016 with the participation of over 40 island representatives from Croatia, Cyprus, Denmark, Finland, France, Germany, Greece, Italy, Malta, Spain, Sweden, the Netherlands and the UK setting the foundations for the Initiative Smart Islands Own Declaration is currently being signed by local island authorities and Letters of Support to the Initiative are signed by representatives of the Quadruple Helix Smart Islands Event: Creating new pathways for EU islands is planned and organised for 28 March 2017 as an outgoing Brussels event with the support of MEPs to present to key stakeholders the Initiative

The case of Greek Islands

Electricity in the Greek Islands 32 islands – Interconnected to the mainland system 56 islands – Electrified by autonomous thermal plants (diesel, HFO) and RES Size of the island systems Peak load > 100 MW 2 systems Peak load 2-100 MW 20 systems Peak load < 2 MW 10 systems Power and Energy figures Thermal plants: 1.75GW RES plants: 0.45GW (75% wind) Annual RES share on energy ~ 18%

Examples of projects under development Municipal wind park, Lesvos: Repowering and extension of a licenced wind park with parallel operation of an environmental and RES park. Municipal wind park, Kos: Unlocking license and financing processes of an existing installation license Kythnos Smart Island: Master plan for the integrated infrastructures’ management in Kythnos island reviving the rich energy test-bed history of the island Geothermal district heating, Lesvos: Reoperation and extension of a geothermal pilot district heating network to heat private houses, a poultry farm and several greenhouses. Energy efficiency in street lighting (5 islands): LED lighting and smart control applications. Smart Grid infrastructure (5 islands): Installation of energy control centres in the thermal power plants and smart meters at the end-users Desalination with RES: Promotion of systems combining desalination plants with installation of RES plants. Biogas plant, Naxos: Feasibility study for the exploitation of the local farming residuals.

Smart Grids project in 5 Aegean Islands WHY Optimal management of the autonomous power systems: Support increased RES penetration levels Promote distributed RES production and microgrids Integration of new RES technologies (solar thermal, hybrid with storage etc.) Enhance security of operation Optimize generation cost & Public Service Obligation (PSO) costs Network monitoring and control: Improve quality of supply and services Facilitate operations Optimize asset utilization Reduce losses Support application of new regulatory framework and NII market operation Promote energy efficiency Provide the basis for demand management and response

Smart Grids project in 5 Aegean Islands HOW ELENA (European Local Energy Assistance) is part of the EIB broader effort to support the EU climate and energy policy objectives. ELENA provides technical assistance to local authorities to implement energy efficiency and renewable energy projects. The project idea was conceived in 2009, in collaboration with the Public Power Company, later HEDNO – the sole Greek DSO. DAFNI applied on behalf of 5 local island authorities (Lesvos, Lemnos, Milos, Santorini and Kythnos) Island Area (km2) Population (2011) Peak demand (MW)* Wind farms (MW)* PVs (MW)* RES penetration (%)* Lesvos 1,633 85,330 63.87 13.95 8.84 16,65 Limnos 478 17,000 14.00 2.44 1.83 12,14 Milos 160 5,129 11.50 2.65 0.618 19,12 Kythnos 100 1,310 2.82 0.665 0.238 4,69 Santorini 73 15,250 32.50 0.249 0,39 *(2013)

Smart Grids project in 5 Aegean Islands WHAT ELENA Key figures TA Budget : ~800 k€ Investment: ~52 m€ Period: 2011 – 2014 Studies and tender documents Energy Control Centres (ECC) Automated Metering Infrastructure (AMI) for all consumers on the islands Electric Vehicle Charging Stations (EVCS) Energy efficiency in street lighting As of today AMI tender has concluded and smart meters will be installed in 2017-8 ECC to be installed in the larger NII

Smart Grids project in 5 Aegean Islands The role of local authorities To collaborate with the DSO to inform and educate the consumers regarding the use and benefits of smart meters To communicate the benefits of the smart grid infrastructure inside and outside of the island – “Smart grid lighthouse islands” To support the transition of the consumers into prosumers To take advantage of the potential margins for RES installations in order to participate in new investments To take advantage of the secure and stable network to invest on energy efficient equipment in water and waste water infrastructure To use the smart meters for a more efficient monitoring of municipal electricity consumption and secure energy savings in collaboration with ESCOs To promote an integrated management of island infrastructure based on the “smart islands” concept starting with the smart grid (smart electricity) To develop an EV market as a pilot user and promoter To become an aggregator taking advantage of possible flexible municipal loads To become a test-bed for future research and demo applications

Smart Grids – What’s Next WiseGRID – Smart Grids Demonstration Project in Kythnos LCE2: Demonstration of smart grid, storage and system integration technologies with increasing share of renewables: distribution system In Kythnos an integrated small electrical system will be developed including: EV charging stations and EVs Energy storage systems (batteries) for public/municipal buildings Equipment for the optimization of the operation of a desalination plant Energy storage systems (batteries) to reduce RES curtailment Equipment for the flexible, optimal and secure operation of the electricity network, all while increasing the interactive communication with consumers (WiseGRID toolkit)

THINK ABOUT THE ISLANDS Thank you KEEP CALM AND THINK ABOUT THE ISLANDS For more information director@dafni.net.gr kk@aegean-energy.gr