Balancing market costs have risen to extremely high levels of approximately 12 euros per MWh during the first six weeks of the target model launch, from virtually zero levels under the previous system, consequently burdening the RES special account through feed-in tariff obligations as well as operating aid contracts with fixed tariffs. The cost, for the RES special account, is expected to rise further through HCHP aggregation-related projects.

Strangely, projects operating through feed-in tariff payments as well as operating aid contracts with fixed tariffs, do not have balancing market commitments, by law, yet, as pointed out by SPEF, the Hellenic Association of Photovoltaic Energy Producers, in a letter to RAE, the Regulatory Authority for Energy, the RES special account is burdened by these costs.

If the country’s biggest RES portfolio – handled by DAPEEP, the RES market operator – representing 75 percent of the total RES capacity in operation, is ending up with a balancing cost of approximately 12 euros per MWh in the target model’s new markets, then what should other smaller producers expect, producers have questioned.

Energy minister Costis Hatzidakis has described the various target model issues being confronted as growing pains that are not here to stay.