RAE seeking consultant for country’s new CAT mechanism plan

RAE, the Regulatory Authority for Energy, intends to seek guidance from a consultant for its shaping of a plan to serve as the energy ministry’s proposal to the European Commission for Greece’s fixed CAT mechanism.

The plan will need to fully address the country’s need for a fixed CAT mechanism, used to compensate electricity production units for output contributing to the grid’s adequacy and stability. The plan will also need to comply with related EU directives. These include payment provisions for units contributing to the grid’s adequacy and flexibility and energy-intensive consumers for their demand response participation.

RAE has asked IPTO, the power grid operator, to prepare a new study on the system’s flexibility needs and tools that could possibly be introduced to the electricity market’s operating framework. A previous IPTO study was delivered by the operator to RAE a couple of months ago but returned as it was considered incomplete.

Tools ensuring flexibility for the energy system are considered essential if RES production, entailing inevitable output fluctuations, is to further penetrate the market.

Besides the new fixed CAT mechanism, the energy ministry will also propose a new transitional CAT mechanism to apply as of this April, when the validity of the current transitional CAT mechanism expires. This new transitional CAT mechanism would support the system until the fixed plan is approved and adopted.

As April is just around the corner, electricity producers face the prospect of remaining unpaid for output until a new transitional CAT mechanism is introduced. The intermediate inability to be paid could challenge certain units in their struggle to remain sustainable.

A recent European Commission report on CAT mechanisms made clear to all EU member states the need for detailed presentations justifying the need for such mechanisms.