The European Commission has announced tough CAT remuneration mechanism restrictions for lignite-based power stations, effective as of July 4, a major setback for the CAT eligibility prospects of power utility PPC’s Ptolemaida V unit, now being developed.
According to some sources, the new capacity mechanism restrictions, announced in the Official Journal of the European Union last Friday, end all CAT qualification hopes for Ptolemaida V.
Despite this latest unfavorable development, state-controlled PPC and the energy ministry have remained optimistic and contend hope remains under certain conditions.
Power stations emitting over 550 grams of CO2 per kilowatt-hour will no longer be eligible for the capacity mechanism, according to the new restrictions.
Greek Parliament recently ratified a related energy ministry bill without prior EU approval.
Capacity mechanisms have been used by EU member states to fund electricity generation that may not be cost-effective or as clean as renewable power but is needed to guarantee supply during periods of peak demand.