The current volatility of many factors determining earnings for the RES special account, the coffer used to remunerate producers supplying green energy to the grid, threatens to once again cause payment delays after a period of hard-earned order.
Possibly for the first time ever, DAPEEP, the RES market operator, has only just managed to bring order to the account, enabling punctual payment to producers.
However, a new round of pressure on the RES special account, primarily induced by the coronavirus crisis and drastic reduction of energy commodity prices, could once again lead to payment delays.
A sharp increase, at present, in the level of unpaid electricity bills could force electricity suppliers to delay relaying RES-supporting ETMEAR surcharges covered by consumers, through their power bills, to DAPEEP.
Even more crucially, the RES special account’s financial standing could also be destabilized by the significant price drop of CO2 emission rights – another support source for the RES special account – along with lower wholesale electricity prices and falling electricity demand prompted by the coronavirus-related restrictive measures.
CO2 emission right prices have fallen from 24 euros per ton to 16 euros per ton since the most recent DAPEEP market update. Such a price drop could deprive the RES special account of 110 to 120 million euros in a year.
During this time, wholesale electricity prices have dropped from 64 euros per MWh to 44 euros per MWh. At a level of 54 euros per MWh, the RES special account would miss out on 120 million euros annually.
Also, the drop in electricity demand, estimated at 10 percent, will lead to further shortfall of approximately 65 million euros, annually, for the RES special account.