The energy ministry does not intend to submit an application to the European Commission to have the country’s demand response mechanism renewed after it expires this coming fall, photovoltaic producers contended following a meeting yesterday with the energy ministry Giorgos Stathakis.
The issue was not addressed in an official announcement issued by the ministry following yesterday’s meeting. The energy ministry holds sole responsibility for submitting an extension application.
The Greek government is aiming to have the demand response mechanism incorporated into the country’s permanent CAT mechanism, expected to replace the temporary CAT mechanism, which expires in April.
The demand response mechanism could be extended if the permanent CAT mechanism’s arrival is delayed.
Unlike the current demand response mechanism, whose cost is shouldered by RES producers, the new version is expected to require electricity suppliers to take on its cost.
Greece’s industrial sector is particularly keen for an extension of the demand response mechanism, which enables major industrial enterprises to benefit from electricity cost savings in exchange for shifting energy usage to off-peak hours whenever required by the operator.
Approval of Greece’s permanent demand response mechanism previously requires endorsement of the temporary mechanism’s extension.
The European Commission has just endorsed a German equivalent.
According to sources, Brussels appears willing, at this stage, to endorse an extension of Greece’s temporary demand response mechanism, especially as a result of its valuable contribution to the recent energy crisis, and also because the current format complies with EU directives, both in terms of cost and the auctions expected.