This is a Summary of No. ΥΠΕΝ/ΔΑΠ/56038/740/19.05.2023 international Call for tenders for the lease of the right to explore for geothermal potential in the non-characterized areas of Norther Greece, namely the Central – Southern Section of the Strymonas River Basin at the Regional Units of Serres & Kavala, Akropotamos at the Regional Units of Kavala & Serres, West Section of Nestos River Delta Basin at the Regional Units of Kavala and Xanthi and Evros River Delta Basin at the at the Regional Unit of Evros.The bidding process will take place on Wednesday 04.10.2023, at 10.00 am before the Tender Committee in the Meetings Room of the Secretariat General of Energy and Mineral Raw Materials, Mesogeion 119, 115 26 Athens, 2nd floor.
The idea of using geothermal energy is not new. Back in the mid-1980s, Public Power Corporation (PPC) began initiating attempts to generate electricity from geothermal energy on Nisyros, but poor government management, among other mistakes, meant it never realized this vision. Many Greeks will also remember another failed effort in the 1980s to develop the geothermal field on Milos. PPC’s first pilot scheme on the island had technical shortcomings: not least significant failures in the choice of management of the emitted gases, mainly hydrogen sulfide, which created serious environmental problems. Naturally, this brought about a justifiable outcry from the local population. Over the last few years, interest in geothermal energy in Greece has been rejuvenated, with it being employed in a number of projects in northern Greece. But where geothermal energy has been utilized, it has been fairly limited, and exploited solely through direct uses. This direct use includes thermal spas, greenhouses, soil heating, fish farming, aquaculture and crop-drying. To date, little progress has been made in terms of using it for the part of clean electricity generation. Because of the negative experiences of the 1980s, one of the key challenges the government faces is how to sell geothermal energy as a reliable energy source, and persuade the public not just of its potential but its safety. On the positive side, much has changed in terms of available technologies for the management of geothermal by-products, while Ministry of Environment and Energy has almost completed a regulatory framework for geothermal energy with clear and robust environmental safeguards.
Contracting authority (Lessor): Ministry of Environment and Energy (MoEE), Secretariat General of Energy and Mineral Raw Materials, Directorate General of Mineral Raw Materials, Directorate of Development and Policy.
Subject of the tender: Public international tender for the lease of the right to explore for geothermal potential in the non-characterized areas of the Central – Southern Section of the Strymonas River Basin at the Regional Units of Serres & Kavala, Akropotamos at the Regional Units of Kavala & Serres, West Section of Nestos River Delta Basin at the Regional Units of Kavala and Xanthi and Evros River Delta Basin at the at the Regional Unit of Evros.
Lease duration: The right to explore for geothermal potential in any of the non-characterized areas is leased for a period of five (5) years from the signing of each lease agreement with the right of unilateral extension by the lessee for two (2) additional years.
Eligibility: Natural and legal persons, Greek and foreign, their associations and joint ventures.
How to participate: Participants in the tender submit their bids in a sealed envelope separately for each of the uncharacterized areas, on which the non-characterized area to which the offer relates will be clearly written and which will include two sub-folders, Sub-folder A: PARTICIPATION DOCUMENTS and Sub-folder B: TECHNICAL BID. The official language of the tenders submitted is Greek. Documents issued outside of Greece will be accompanied by an official translation into the Greek language as per the tender document.
Required guarantees: The participants in the tender must submit, under penalty of exclusion, together with their offer, a Letter of Guarantee of Participation of indefinite validity, amounting to fifteen thousand euros (15.000,00 €), issued by a legally operating and recognized credit institution in Greece or by a credit institution legally operating in member countries in the EU, or in the E.F.T.A. or in states parties of the Public Procurement Agreement (G.P.A.), or by the former Pension Fund of Greek Engineers and Self Employed (ETAA-TSMEDE), or by the Consignment Deposits and Loans Fund. When signing the lease contract, the successful bidder must provide a letter of guarantee of indefinite duration, for the proper execution of the terms of the contract. The amount of the letter of guarantee is set equal to the total amount (including VAT) of the financial commitment for the minimum exploration works program, which is indicated to the offer of the selected tenderer.
Evaluation criteria:
1. Minimum exploration works program and timetable for their advance.
2. Financial commitment on the minimum research exploration works program.
3. Supplementary exploration works program.
4. Bidder’s technical experience.
5. Financial capability of the bidder.
6. Environmental management capability.
Tender date – submission of bids: The bidding process will take place on Wednesday 04.10.2023, at 10.00 am before the Tender Committee in the Meetings Room of the Secretariat General of Energy and Mineral Raw Materials, Mesogeion 119, 115 26 Athens, 2nd floor. The offers of those participating must be submitted to the Protocol Office at the Directorate General of Mineral Raw Materials (Mesogeion 119, 115 26 Athens, 3rd floor, Room 352) of the MoEE, at the latest up until the start of the Tender Committee’s meeting.
Availability of tender document – information: The tender document is in Greek and can become available at the MoEE, Directorate of Development and Policy, Mesogeion 119, 115 26 Athens, Room 351 (3rd floor), tel. (+30) 2131513352, e-mail tm.geothermia@prv.ypeka.gr, all working days between 10:00-15:00 hours, on the website of MoEE (https://ypen.gov.gr/prokiryxi-dimosiou-diethnous-diagonismou-gia-tin-ekmisthosi-tou-dikaiomatos-erevnas-geothermikou-dynamikou-stis-mi-charaktirismenes-perioches-kentrikou-notiou-tmimatos-lekanis-potamou-strymo/) and on the website www.latomet.gr.
Information Packages with geological – geothermal data for each of the areas are available from the Hellenic Survey of Geology and Mineral Exploration (E.A.G.M.E.), 3rd entrance Olympic Village, Sr. Loui 1, 136 77 Acharnae. Contact: Mr. Markos Xenakis, tel: (+30) 2131337255, Room Α9 (1st Floor), working days at 10:00 to 15:00, e-mail : info@igme.gr and markxen@igme.gr . The participants must purchase the corresponding Information Package for each area they bid for.
Legal framework: Geothermal fluids are regarded as a mineral resource. Law 4602/2019, Part A (Gov. Gazette, vol. A, no 45) provides the framework for geothermal exploration and exploitation. The “Regulation of Geothermal Works” published in 2021 (Gov. Gazette, vol. B, no 1960) as well as “Terms and Procedure for Leasing the Right to Explore, Manage and Exploit the Geothermal Potential in Fields of National Interest and Non-characterised Areas of the Country” published in 2022 (Gov. Gazette, vol. B, no 1460) are two very important regulatory texts to consult for building a bid.
N.B. If the Lessee is successful in discovering geothermal potential appropriate for their scope, they may enter in an exploitation and management right lease contract, provided that they submit an acceptable business plan for the optimum utilization of the resource. Geothermal electrical power stations, power production or heat distribution to third parties are governed by the corresponding RES legislation and is regulated by the Energy Regulatory Authority (www.rae.gr).
A summary of the Tender will appear in the Official Journal of the European Communities no less than 60 days prior to the Tender Date.