The country’s independent gas-fueled power stations failed to fully recover their operating costs in 2019 despite increased operating hours, ongoing market distortions being a key factor, sources at ESAI/HAIPP, the Hellenic Association of Independent Power Producers, have stressed.
Though gas-fueled electricity production captured a 32 percent market share in 2019, far bigger than the lignite-fired share, gas-run units were unable to full cover costs as a result of persisting wholesale market restrictions.
For years, ESAI/HAIPP has contended that hydropower unit operations in Greece lead to a de facto price cap in the market. Price levels could theoretically be set at around 300 euros per MWh but the operating method of hydropower plants considerably lowers these levels.
This situation is preventing gas-fueled power stations from fully recovering costs. Their cost recovery is limited to variable costs. Revenues generated by these facilities do not suffice to cover capital investments and maintenance costs.
For some years now, ESAI/HAIPP, has pressured power grid operator IPTO for a new formula calculating available water reserves. RAE, the Regulatory Authority for Energy, launched an initial public consultation procedure on the matter in 2008 that failed to deliver any corrective action.
In the most recent public consultation procedure, staged in 2018, ESAI/HAIPP pointed out a series of factors requiring attention, including a need for greater transparency and publication of all relevant data.