Launch of PPC’s Megalopoli V seen impacting wholesale market

The commercial launch of the main power utility PPC’s new gas-fired power station Megalopoli V on August 14, following a prolonged period of trial runs and priority dispatch rights that led to further market distortions, is expected to impact wholesale electricity market levels.

This new unit’s commercial launch appears to have been timed intentionally for the purpose of enabling PPC to seek CAT flexibility remuneration for a further 500 MW. Megalopoli V’s installed capacity actually measures 800 MW but 300 MW cannot be utilized until a grid update has been completed.

Megalopoli V will be able to participate in CAT flexibility auctions, expected to be launched next month following European Commission approval. The CAT flexibility mechanism will remain valid until the end of 2019 and remunerate power plants offering flexibility to the grid.