Grid flexibility study for CAT mechanism requires additions

A study on the local electricity grid’s flexibility needs, conducted by IPTO, the power grid operator, following a request from RAE, the Regulatory Authority for Energy, has been delivered to the European Commission, which requested the study, but does not appear to be complete, prompting officials in Brussels to demand revisions and further details, according to energypress sources.

The study, examining the Greek electricity system’s real flexibility needs, growing along with the increased contribution of renewable energy production to the grid, while also considering regulatory tools providing greater market flexibility, are European Commission prerequisites in the lead up to its final appraisal of the country’s fixed Capacity Availability Ticket (CAT) mechanism, which will need to soon replace the temporary CAT mechanism as a means of maintaining payments for electricity producers.

Though it was based on an equivalent study conducted by ELIA, the Belgian system’s operator, reliable sources have informed that European Commission officials believe that firm conclusions and proposals are lacking from the study.

Facing growing time pressure, RAE appears to have forwarded various electricity market revision proposals to Brussels. These would secure market-generated earnings which producers are entitled to.

Once an agreement has been reached on the fixed CAT plan’s finalized form, adjustments and additions will need to be made. The temporary CAT mechanism, through which electricity producers have begun receiving payments, will expire this April. Approval and implementation of the fixed CAT plan, as a follow-up, is crucial to the survival of electricity production facilities.

Further ahead, the fixed CAT plan will eventually be replaced by the target model, expected to be implemented in 2020.