RES players face new challenges, approach amid target model

The market appears to be gearing up in preparation for wind and pholtovoltaic energy auctions following a Public Consultation on Target Model codes as well as related provisions for projects eligible for feed-in premiums.

Clarification of crucial factors concerning the operating framework for RES projects linked with feed-in premiums, or more, specifically, the lifting of priority dispatch rights, promise radical changes in how investors will now approach the sector and calculate their moves.

It appears that small-scale players will be missing from the latest round of RES market activity. Medium-scale players are expected to play leading roles, for the time being.

The RES auctions model, launched for photovoltaic facilities in 2016 and now also made available for the wind energy sector, will prompt investors to take into account factors that were previously discarded.

In comments to energypress, Stelios Loumakis, president of SPEF, the Hellenic Association of Photovoltaic Energy Producers, explained that a considerable portion of investors who took part in the pilot PV auction in 2016, to bid for reference prices, appeared to believe that their remuneration prices for respective outputs would be equivalent or close to the reference prices secured at the auctions. The Target Model has disclosed a drastically different reality.

As things have turned out, prospective investors will require the backing of specialized studies ahead of auctions so that the levels of their offers do not stretch beyond the sustainability limits of business plans, Loumakis explained.

As an experienced technocrat offering consulting services to RES firms in Greece and Cyprus, Loumakis believes that the new challenges will be offset by opportunities for players possessing the required knowhow. The increased complexity, risk and required specialization will automatically sideline smaller players, the official noted.