Greek energy authorities are scheduled to visit Brussels next week for meetings at the European Directorates for Competition and Energy with the intention to appease European Commission concerns over the pace at which the local target model’s implementation is being prepared.
The Greek officials will be seeking approval of a new transitional CAT mechanism – used to compensate electricity producers for providing adequacy and stability to the grid – that could take effect as of April, when the validity of an existing temporary mechanism expires.
This new transitional mechanism would serve as a bridge and cover electricity producers until a fixed mechanism is finalized and implemented. RAE, the Regulatory Authority for Energy, is currently working on this.
Greek officials are also working on market reforms that could broaden the range of revenues for electricity producing units.
Though the Greek authorities will travel to Brussels next week with proposals, inadequacies are bound to surface as the local plans are not based on a grid flexibility study by IPTO, the power grid operator, a prerequisite for these talks.
IPTO had delivered a grid flexibility study a few months ago, following a request by RAE, but it was deemed inadequate as it lacked detailed conclusions and proposals, and returned for improvement.
Determining the grid’s flexibility needs with precision is essential as the increased market penetration of renewable energy sources increases the need for flexible energy solutions.