A revised mechanism for Capacity Availability Tickets (CATs), used to compensate energy producers, has been approved by the Regulatory Authority for Energy (RAE).

The new mechanism, to take into account all the latest developments, decisions, and binding agreements on a European level, will serve the objective of achieving capacity adequacy, while also seeking to confront basic market weaknesses.

As has been reported by EnergyPress, the aim is to establish a mechanism that would ensure long-term capacity adequacy, its primary objective being to offer supply security.

At the same time, however, conditions and failures in the Greek market will also need to be dealt with.

Contrary to conditions that have applied until now – besides supply security, the mechanism also catered to sustainability of existing investments – the only criterion to apply will be that of long-term capacity adequacy, served through three factors, capacity availability tickets (CATs), flexibility mechanism, and a strategic stock mechanism.

Within this framework, new data stands to be reassessed, including new market conditions prompted by further penetration of renewable energy sources; the increased requirements for reliability and flexibility; as well as the new mechanism’s objectives.

Public consultation participants will be called upon to offer their views on these issues, proposed by RAE.