A government proposal for an extension of the demand response mechanism until the end of July, 2022 faces challenges, the energy ministry’s secretary-general Alexandra Sdoukou has informed, adding that she remains hopeful Brussels will offer its approval.

As part of ongoing negotiations between the energy ministry and the European Commission’s Directorate-General for Competition, the Brussels authority has forwarded a set of questions concerning technical matters.

Sdoukou, whose comments on the subject were made during an online event organized by SVSE, the association of mainland Greece industries, on the impact of the energy crisis on industry, informed that the questions forwarded by Brussels officials pertain to the participation of the demand response system in the balancing market and its functioning since September, 2020, when last approved.

The Directorate-General for Competition also informed that Greece’s proposal for an extension will need to be examined under new climate and environment directives to be implemented early in 2022, the energy ministry official informed.

The demand response system compensates major-scale electricity consumers when the TSO asks them to shift their energy usage (lower or stop consumption) during high-demand peak hours, so as to balance the electricity system’s needs.

Sector officials believe the system needs to be maintained given the tougher grid conditions expected this coming winter.