Independent, 3-year extension sought for interruptability tool

The Greek government’s plan to apply to the European Commission for an extension of the demand response mechanism (interruptability) should be made independently, request a three-year duration, and not be associated with a bid seeking more time for the exisiting temporary mechanism, EVIKEN, the Association of Industrial Energy Consumers, noted in a statement forwarded to energy minister Giorgos Stathakis yesterday.

A three-year time period for the fixed mechanism could enable the measure’s developmental qualities to take effect, the association noted.

EVIKEN, in its statement to the energy minister, stressed that the demand response mechanism is a key factor in ensuring a level playing field for local industry against European competitors, while also being a vital tool to restrict high energy costs burdening Greek industry.

The energy minister has announced he will seek an extension for the mechanism. The minister is also expected to seek certain revisions, including the exclusion, from the measure, of main power utility PPC mines, which absorb approximately 8 million euros of the measures 40 million-euro total cost.

The current demand response mechanism (interruptability), enabling major industrial enterprises to be compensated when the TSO (ADMIE/IPTO) requests that they shift their energy usage by lowering or stopping consumption during high-demand peak hours so as to balance the electricity system needs, is due to expire in November.

Most crucially, the energy minister will need to decide whether the RES sector, especially photovoltaic producers, will carry on covering most of the measure’s cost, or consider revising its funding system. Though the issue remains unresolved at this stage, the minister does not appear willing to proceed with any fundamental changes that may further burden state-controlled PPC.