A new transitional CAT mechanism model compensating electricity generation flexibility, to soon be implemented in Greece, is expected to be valid for less than a year, all the way up to the implementation of the target model, seen occurring in the first half of 2019. The target model is aiming for a single European electricity market.
The first auction for the CAT flexibility mechanism, taken on by the government as a fourth-review bailout commitment, will not be staged any sooner than September, despite initial efforts for a launch by July, energypress sources have informed.
Independent electricity producers are keen to see the new CAT flexibility mechanism up and running as its previous version expired in April, 2017. This has prompted financial issues at production units.
If no major changes are made to the CAT flexibility mechanism plan ahead of its implementation, then it should offer compensation for 4,263 MW of annual output. Hydropower facilities are expected to be entitled to compensation for output totaling 750 MW, up from the previous model’s amount of 582 MW. Starting prices at the CAT flexibility mechanism’s descending-price auctions are expected to be set at 39,000 euros per MW, higher than 25,000 euros per MW originally planned.
The demand response mechanism (interruptability) – compensating major-scale consumers, such as industrial enterprises, when the TSO (IPTO) asks them to shift their energy usage (lower or stop consumption) during high-demand peak hours, so as to balance the electricity system needs – will not be incorporated into the new CAT flexibility mechanism.