RES market operator DAPEEP, managing, through the target model framework, the majority of the country’s RES portfolio – specifically 76.73 percent according to energy exchange data, or wind and solar energy facilities receiving fixed tariffs – is facing serious issues as a result of the sharp rise in balancing market costs since the target model’s launch over a month ago.
Essentially, the RES special account, into which day-ahead and intraday earnings are injected, along with any balancing market burdens caused by grid projection discrepancies, is under pressure.
Balancing costs reached hardly negligible levels of approximately 4 euros per MWh during the first four weeks of the target model’s new markets before skyrocketing to unimaginable levels.
During this period, RES special account inflow has been greatly exceeded by outflow for balancing costs. In other words, the RES special account has not only not been remunerated for electricity supply to the system but also ended up covering additional amounts.
DAPEEP projections on RES output are crucial for the RES special account’s financial standing. The operator submits, on a daily basis, next-day projections of RES output to be offered to the system by units in its portfolio. The operator also participates in the intraday market, where it may make corrections.
Even so, DAPEEP has never been equipped with any projection system of its own, relying, instead, even prior to the target model, on forecasts offered by power grid operator IPTO. However, the cost of any discrepancies was minimal prior to the target model. It has now grown.
SPEF, the Hellenic Association of Photovoltaic Energy Producers, has called on DAPEEP, to take control of grid projections concerning the RES portfolio it manages, while reminding that RES producers pay for the operator’s operating and investment costs through DAPEEP surcharges.