RES investment interest, especially for wind and solar energy technology is robust but RES special account deficit dangers will need to be overcome if the sector is to move ahead on solid ground.
Pundits and market officials have warned that an end-of-2020 RES special account deficit projection of 110 million euros forecast by DAPEEP, the RES market operator, could be far too mild.
This pessimism is based on the fact that the operator’s calculations are based on a System Marginal Price (SMP), or wholesale price, of 47 euros per MWh. The current level is actually far lower.
Also, a CO2 emissions level of 20 euros per ton used by DAPEEP for its RES special account calculations could be overpriced, while electricity demand has dropped as a result of the pandemic.
These factors could affect the cash inflow into the RES special account, used to remunerate producers for their output.
Also, investors will need to take account target model revisions being introduced for RES unit management.
According to European Commission guidelines on State aid for environmental protection and energy 2014-2020, RES producers will be remunerated through market-based mechanisms and must accept balancing costs should production forecasts fall short of actual output.