PPC’s lignite units sale to determine NOME auction amounts in 2019

The outcome of the main power utility PPC’s bailout-required sale of lignite units, representing 40 percent of its overall lignite capacity, is expected to determine the electricity amounts to be offered to independent suppliers through the country’s NOME auctions in 2019.

The electricity amount to be offered at NOME auctions, introduced in Greece over two years ago to offer independent players access to PPC’s lower-cost lignite and hydropower sources, is planned to be reduced from 22 percent of overall supply to 13 percent once the sales of PPC’s Megalopoli and Meliti lignite-fired power stations have been completed, according to a bailout agreement term.

A penalty term – requiring extra electricity amounts at the NOME auctions – imposed by the country’s lenders in the event that PPC falls short of its market share contraction targets will be abolished once shareholder purchase agreements for Megalopoli and Meliti have been signed with the prospective buyers.

Authorities have already decide to halve the quantity of this penalty but it remains to be seen if this initiative will be followed through as a result of a new deadline extension been rumored for binding bids in the Megalopoli and Meliti unit sales.

PPC faced a retail electricity market share contraction target of 62.24 percent by the end of 2018, which it missed by a great margin, while the target for the end of 2019 has been set at 49.24 percent.

The first NOME auction for 2019 has been scheduled for mid-January but the session could be deferred until more clarity has been achieved on matters concerning the lignite unit sales.

A 171 MWh/h penalty amount – left over from last year – will need to be added to the electricity amount RAE (Regulatory Authority for Energy) will decide to offer suppliers at the year’s first NOME auction.

Meanwhile, RAE has yet to announce its decisions on export limit measures to be set for electricity amounts acquired at the NOME auctions.