An application submitted by Greece to the European Commission for an extension of the country’s existing demand response mechanism (interruptability), a pivotal energy cost-saving tool for industry, faces the risk of being rejected if the mechanism does not precede or coincide with notification concerning the flexibility mechanism, industrial sources have warned.

A strong industrial sector reaction can be expected if the demand response mechanism extension request is rejected, the sources added.

An extension of the demand response mechanism is needed for two basic reasons, the sources said. Firstly, this mechanism is necessary for countering grid sufficiency issues during emergency situations, periods of high electricity demand, as well as non-availability of RES sources due to unfavorable weather conditions – either separately or combined.

Also, the demand response mechanism is the only dynamic currently giving demand an electricity market role.

Even when the target model is launched, much time will still be needed before the new market framework is fully implemented and mature enough to ensure demand is offered fair participation in the market’s dynamics, the sources explained.