RAE proposes hybrid station payment limit of €200 per MWh

A RAE (Regulatory Authority for Energy) study focused on a regulatory support framework for the installation and operation of hybrid power stations on the Greek islands proposes a maximum remuneration level of 200 euros per MW/h for output.

The authority’s study for hybrid power stations, containing a renewable energy component that is balanced via a second form of generation or storage such as a diesel genset, fuel cell or battery storage system, was presented at a pan-European conference just held on the island Naxos.

Prospective investors who attended the event reacted against RAE’s remuneration proposal, contending projects will not be sustainable and, as a result, hybrid stations would not be developed.

Hybrid power plants have, for the time being, been exempted from auction procedures compensating output – as is the case for solar and wind energy facilities – as they are not yet regarded to be a mature technology amid a competitive environment.

The RAE study will be examined by the energy ministry, currently seeking a remuneration system for this emerging technology.

The RAE study also proposes a reexamination of the remuneration level every three years and a production level of up to 3,500 MWh per year.

Furthermore, the duration of respective support systems for islands should depend on whether they have been included in power grid operator IPTO’s ten-year plan for interconnection projects, according to the study.

If interconnections have been planned for islands, then payment guarantees for output should be offered for an initial period of 5 to 7 years, according to the study. Remuneration coverage periods, in all cases, should not exceed 23 years, it notes.