Operators propose priority dispatch rights elimination

A series of unfavorable regulation revisions, especially for new RES units, and, in some cases, existing facilities, including a premature elimination of priority dispatch rights, have been included in a series of proposals made by LAGIE, the Electricity Market Operator, and IPTO, the power grid operator.

If implemented, these proposals, forwarded by RAE, the Regulatory Authority for Energy, for public consultation, would serve as a transitional framework for the market until target model regulations are finalized and implemented.

RES sector investors and officials have already distinguished problems, including hidden surcharges, and intend to offer arguments against their adoption during the public consultation procedure.

One proposal that has not been embraced entails the premature elimination of priority dispatch rights for recent RES units that signed feed in premium agreements in 2016 as well as new RES units established from now on. EU law does not demand the elimination of priority dispatch rights for this investment category.

The proposals made by the operators include a plan that would require new and existing RES units to contribute to system losses. To date, system losses, estimated to be around 2 to 2.5 percent, have only burdened thermal electricity producers.