The global push toward decarbonisation is transforming industries at an unprecedented pace—and maritime transport is no exception. Ports, long considered hubs of trade and logistics, are now under increasing scrutiny due to their environmental impact. Ships docked at ports continue to run auxiliary engines, emitting harmful pollutants into surrounding communities.
This is where onshore power supply (OPS)—also known as cold ironing—comes in as a game-changing solution. And at the center of this innovation is the Alfion-Infra project, a pioneering initiative that not only deploys OPS infrastructure but also introduces a Distribution System Operator (DSO)-driven business model to revolutionize how port electrification is managed.
What Is Onshore Power Supply (OPS)?
Onshore Power Supply allows ships to connect to shore-based electricity while docked, enabling them to shut down onboard diesel generators.
Key Benefits of OPS:
- Reduces CO₂, NOₓ, and SOₓ emissions
- Improves air quality in port cities
- Minimizes noise pollution
- Supports EU climate targets
According to industry insights, OPS is critical to achieving Europe’s climate neutrality goals, with ports contributing significantly to maritime emissions.
The Alfion-Infra Project: Overview
The Alfion-Infra (Alternative Fuel Implementation in Igoumenitsa Port) project is a flagship European initiative aimed at accelerating the deployment of OPS infrastructure.
Key Highlights:
- Location: Port of Igoumenitsa, Greece
- Handles ~2.5 million passengers and 250,000 trucks annually
- Includes multiple high-voltage and low-voltage shore connection points
- Designed for passenger and Ro-Pax vessels
The project integrates engineering, procurement, installation, and grid connectivity into a unified framework. It is a collaborative effort involving port authorities, energy operators, academic institutions, and private companies.
Why Port Electrification Matters
Ports are essential to global trade, but they are also hotspots of pollution. Ships at berth rely on diesel engines for:
- Lighting
- Heating
- Cargo operations
These activities release pollutants that negatively impact human health and the environment.
Environmental Impact:
- Increased respiratory diseases in coastal regions
- Contribution to climate change
- Degradation of urban air quality
Electrification through OPS directly addresses these challenges, making ports cleaner and more sustainable.
The Challenge: Why OPS Adoption Is Slow
Despite its benefits, OPS adoption has faced several barriers:
1. High Capital Costs
Infrastructure installation requires significant upfront investment.
2. Lack of Clear Business Models
Uncertainty around cost recovery and pricing mechanisms discourages stakeholders.
3. Coordination Complexity
Multiple parties are involved:
- Port authorities
- Shipping companies
- Electricity providers
4. Grid Integration Issues
Ports demand massive power—sometimes equivalent to small cities.
These challenges highlight the need for innovative solutions like the DSO-driven model.
Traditional OPS Business Models
Before Alfion-Infra, OPS systems typically followed port-led models:
1. Intermediary Model
- Port authority acts as middleman
- Applies markups on electricity
2. Facilitator Model
- Ships buy electricity directly
- Port provides infrastructure
Limitations:
- Inefficient coordination with electricity grids
- Pricing inconsistencies
- Investment risks
These shortcomings paved the way for a more integrated approach.
The DSO-Driven Business Model Explained
The Distribution System Operator (DSO) is responsible for managing electricity distribution networks. In the Alfion-Infra project, DSOs take a central role in OPS deployment.
What Is the “Extension-to-Grid” Model?
This innovative model integrates port electrification directly into the electricity distribution system.
Key Features:
- DSO designs and operates OPS infrastructure
- Direct integration with national grid
- Regulated electricity pricing
Advantages of the DSO-Driven Model
1. Improved Grid Coordination
Ports require massive power loads. DSOs ensure:
- Efficient energy distribution
- Grid stability
- Capacity planning
A single ship can demand power comparable to a small town.
2. Faster Deployment
DSOs already have:
- Technical expertise
- Infrastructure planning capabilities
This reduces delays in project implementation.
3. Reduced Pricing Risks
Traditional models risk inflated electricity prices. The DSO model:
- Keeps pricing within regulated markets
- Prevents monopolistic practices
4. Better Investment Efficiency
DSOs can:
- Optimize infrastructure investments
- Avoid overbuilding or underutilization
5. Enhanced Transparency
Clear roles and responsibilities improve stakeholder collaboration.
Alfion-Infra Methodology
The project follows a structured approach:
1. Engineering Design
- Compliance with IEC/ISO/IEEE standards
- Ensures interoperability
2. Infrastructure Deployment
- High-voltage connections
- Transformers and converters
3. Grid Integration
- Seamless connection to national electricity networks
4. Environmental Studies
- Future expansion for cruise terminals
Role of DSOs in Energy Transition
DSOs are becoming central players in the energy transition.
Why DSOs Matter:
- Manage decentralized energy systems
- Enable renewable integration
- Optimize grid performance
A DSO-driven model allows ports to become part of a larger energy ecosystem, rather than isolated infrastructure projects.
Regulatory Framework Supporting OPS
The European Union has introduced several regulations to accelerate OPS adoption:
Key Policies:
- FuelEU Maritime Regulation (EU 2023/1805)
- Alternative Fuels Infrastructure Regulation (AFIR, EU 2023/1804)
These regulations mandate:
- OPS deployment in major ports
- Increased use of clean energy
Economic Impact of OPS Deployment
Investment Requirements:
- €7.4 billion for port infrastructure
- €25+ billion for ship retrofits
Benefits:
- Reduced fuel costs for ships
- Job creation in energy and infrastructure sectors
- Increased port competitiveness
Environmental and Social Benefits
1. Cleaner Air
OPS significantly reduces harmful emissions.
2. Noise Reduction
Quieter ports improve quality of life for nearby residents.
3. Climate Impact
Supports EU net-zero targets.
4. Public Health
Lower pollution leads to fewer health issues.
Challenges Ahead
Despite its promise, the DSO-driven model faces challenges:
1. Grid Capacity Constraints
Ports require significant upgrades.
2. Data Gaps
DSOs need accurate ship demand data.
3. Regulatory Alignment
Policies must support new business models.
4. Stakeholder Coordination
Collaboration remains critical.
Future Outlook: Scaling Across Europe
The Alfion-Infra project is more than a pilot—it’s a blueprint for the future.
Key Trends:
- Integration of ports into smart grids
- Increased electrification of transport
- Expansion of renewable energy use
As ports evolve into energy hubs, the DSO model will likely become standard across Europe.
Conclusion: A New Era for Sustainable Ports
The Alfion-Infra project represents a significant leap forward in maritime sustainability. By combining cutting-edge OPS technology with a DSO-driven business model, it addresses the key barriers that have long hindered port electrification.
This approach:
- Enhances efficiency
- Reduces costs
- Accelerates deployment
- Aligns with regulatory frameworks
As Europe—and the world—moves toward a greener future, initiatives like Alfion-Infra will play a crucial role in reshaping how energy is distributed and consumed in maritime environments.