Demand-response inclusion in Energy Exchange markets early March

A demand-response mechanism is expected to be introduced to Energy Exchange markets by early March, following a consultation procedure for revisions to rules concerning the exchange’s day-ahead and intraday markets.

Completion of the consultation procedure, expected to commence within the next few days, according to energypress sources, will enable a demand-response mechanism to be applied in the day-ahead and intraday markets for the first time since Greece’s adoption of the target model.

The basic idea is to actively involve the demand-response mechanism – the consumption side – for creating economic signals that will enable better management of the energy market.

This particularly concerns distributed loads or industrial loads that will be able to participate in markets on competitive terms with all other electricity producers, while at the same time setting signals for the balancing market.

The European framework, especially the Clean Energy Package and subsequent EU regulations, envisages full demand-response participation in electricity markets. EU member states and their respective market operators and energy exchanges have been requested to take all necessary measures to make this possible.

PPC retail electricity market share at 63.3% in December

Power utility PPC’s captured a retail electricity market share of 63.29 percent in December, followed by the Mytilineos group’s Protergia, at 7.6 percent, Heron, at 7.03 percent, and Elpedison, at 6.09 percent, a latest report published by the Hellenic Energy Exchange has shown.

Day-ahead market prices in December rose 22 percent, averaging 276 euros per MWh compared to 227 euros per MWh in November, while electricity demand increased to 4,488 GWh from 4,109 GWh, the Energy Exchange data showed.

As for December’s energy mix, natural gas-fueled electricity captured the greatest share, 37 percent, followed by renewables, at 24 percent, electricity imports, at 19 percent, lignite-fired generation, at 15 percent, and hydropower, at 3 percent.

December wholesale prices second-highest in EU

Wholesale electricity prices in Greece ranked as the EU’s second-highest in December, reaching 276.89 euros per MWh in the day-ahead market, up considerably, both on a monthly and annual basis, while electricity demand fell, a Hellenic Energy Exchange report has shown.

This December’s wholesale price level was 21.5 percent over the November price, and 18 percent above the level recorded in December, 2021.

Greece ranked second behind the common Italian and Maltese energy market, whose December price level was 294.91 euros per MWh.

Greece’s DAM prices remained high last month as a result of the country’s usage of a month-ahead model incorporating the TTF gas index. December’s electricity prices in Greece were shaped by the end-of-November price level of the TTF gas index, which ended the month at 118.68 euros per MWh.

By contrast, most other European wholesale electricity markets benefited from a drop in gas spot prices. They fell significantly in the last ten days of December to levels of 75 euros per MWh.

Limited renewable energy contributions to the country’s energy mix, down to 23 percent in December, compared to 33 percent in November, were another factor. This decline was attributed to lower wind energy output in Greece last month. On the contrary, wind energy output in central and northern Europe increased significantly during the final days of December.

Reduced trading at the day-ahead market in December, down 19 percent on December, 2021, signaled a further reduction in electricity demand last month, the Hellenic Energy Exchange report noted.

Higher retail electricity prices expected for January

Retail electricity prices for January, set to be announced tomorrow by suppliers, are expected to rise, pushed higher by increased wholesale prices, sources have informed.

Wholesale electricity prices have averaged approximately 300 euros per MWh on the day-ahead market since the beginning of December, up roughly 45 percent compared to June’s average of 205.86 euros per MWh for the equivalent 19-day period.

Even though electricity prices have plunged 50 percent on the energy exchange over the past six days, to 200 euros per MWh from nearly 400 euros per MWh on December 14, suppliers cannot risk subduing prices to December levels. The jittery mood at the Dutch TTF index has not left Greece’s energy exchange unaffected.

January’s electricity prices to be delivered tomorrow by the country’s suppliers – based on a recently introduced rule requiring them to announce their respective price levels for each forthcoming month by the 20th of the preceding month – are expected to range between 0.35 euros per KWh and 0.41 euros per KWh. Supplier prices in December ranged between 0.27 euros per KWh and 0.38 euros per KWh.

Finalized prices for consumers will be lowered by state subsidies offered by the government for electricity. The government is expected to engineer, through subsidies, price levels for households and businesses to between 0.15 euros per KWh and 0.17 euros per KWh.

Energy firms want DAM non-compliance fee formula reviewed

Consultation staged by RAE, the Regulatory Authority for Energy, on a formula determining a non-compliance fee for unlawful submission of sales orders in the day-ahead market for 2023 has prompted reaction from energy companies, fearing excessive penalties.

A formula proposed by the Energy Exchange is particularly strict, the Mytilineos group has commented, as it uses the average day-ahead market (DAM) clearing price for the day when the unlawful submission of a sale order by a production unit has taken place.

As price levels in the day-ahead market have increased significantly this year and are currently at 280 euros per MWh, the Energy Exchange’s proposed formula would lead to non-compliance charges worth hundreds of thousands of euros.

Power utility PPC, another participant in RAE’s consultation procedure, also believes the formula proposed by the Energy Exchange results in an excessive non-compliance fee. It has called for a review and implementation of tiered charges.

 

European effort for energy cost solutions well underway

European discussion for electricity market reforms that could lead to permanent solutions for lower-cost energy by detaching the cost of electricity from natural gas is well underway.

European Commission authorities, institutions, major enterprises and other electricity market players are currently putting forward proposals until December, when Brussels is expected to issue its own proposal for consultation, as has just been noted by Mechthild Wörsdörfer, deputy director general for the European Commission’s Directorate-General for Energy.

Discussion for longer-term reforms is planned to continue in February and March. Reforms will need to be approved by the European Parliament, as well as by the Energy Council of Ministers, in order to become binding.

The overall approach is based on a proposal forwarded by Pantelis Kapros, Professor of Energy Economics at the National Technical University of Athens, supporting the need for remuneration of renewable energy, as well as electricity production generated by other low-emission technologies, such as nuclear, to be based on actual cost through long-term agreements rather than through the day-ahead market, whose levels are determined by wholesale market prices.

According to Kapros’ proposal, wholesale market prices should be used to determine remuneration levels for fossil fuel-based energy production technologies (coal, lignite, natural gas) as well as hydropower facilities with water reserves and energy storage units.

DAM decoupling from gas prices for lower-cost electricity

European officials have tabled at least three proposals that would decouple electricity prices from gas prices in order to provide a permanent solution resulting in lower-cost electricity.

The proposal for a split of day-ahead electricity markets, promoted by Pantelis Kapros, Professor of Energy Economics at the National Technical University of Athens, would remunerate fossil fuel, renewables, nuclear, biomass and other forms of electricity generation in different ways.

The idea has been gaining greater acceptance in Europe, while certain EU member states are already looking at technical details.

Some European officials insist that eco-friendly generation, such as renewables, should operate exclusively through bilateral contracts. Others, mainly in Germany and the UK, prefer a mandatory pool with a marginal price and even a cap when there is a scarcity of renewable energy sources. Furthermore, some officials are advocating a mixed solution entailing co-existence of bilateral contracts with an organized market for renewables, along with a pool, which would be used as a last resort.

EC windfall profits tax soon, revision to local plan possible

Greece will not be required to make adjustments to its windfall profits tax on electricity producers now that the European Commission is preparing to implement a corresponding tax mechanism covering the entire EU, energy ministry sources have told energypress.

Brussels’ related directive notes that EU member states already implementing wholesale electricity market interventions to contain retail prices, namely Greece, Spain and Portugal, can maintain their measures, with any revisions being at their discretion, the ministry sourced added.

However, revisions to the Greek formula, influenced by details in the European model, cannot be ruled out, as government officials will examine whether partial changes can be made to improve the formula recovering electricity producer windfall profits for the country’s day-ahead market, the ministry sources added.

 

 

Energy ministry plans intraday, balancing market intervention

The energy ministry plans to make two interventions in the intraday and balancing markets in order to rectify side effects detected in the day-ahead market.

The measures to be taken will, amongst other objectives, seek to boost trading volume and revenues in the intraday market.

The side effects, prompted by a cap implemented in the day-ahead market, first appeared July 1, the first day of a temporary mechanism for partial returns of day-ahead market revenues.

 

 

Brussels looks to combine cap on gas for power, windfall tax

The European Commission, in search for solutions to ease the effects of the energy crisis on the EU, is likely to soon introduce a cap on gas intended for electricity generation, based on a model implemented in Spain and Portugal, as well as a windfall tax on extraordinary gains achieved by vertically integrated electricity producers, an initiative already taken by Greece.

Brussels authorities are also looking to greatly revise the structure of the target model and possibly introduce a common European funding tool, but these two plans are expected to take longer to prepare and implement.

Officials of a number of EU member states have contacted Greek authorities to enquire about details concerning the windfall tax, withholding excess revenues of electricity producers in the domestic wholesale market through a temporary mechanism that results in a partial return of day-ahead market revenues.

Member states are mostly interested to know if this mechanism has led to any side effects in Greece’s day-ahead market.

Many member state officials find the Greek model appealing as it results in an immediate disconnection of electricity prices from the price of natural gas without the need for any target model changes.

Splitting day-ahead market flawed move, expert warns

An energy ministry proposal for a split of the day-ahead market into two entities is short-sighted, flawed, counter-productive and does not make economic sense, Dr. Alex Papalexopoulos, the architect behind Greece’s target model, has noted in an article for energypress.

As a result of a rush to eliminate CO2 emissions, investment in coal and gas-fired power plants in most regions has plummeted but investments in renewable energy sources have not been enough to fill the gap, Dr. Papalexopoulos noted, adding that strong demand and weak supply fueled the global energy crisis, which began unfolding last autumn.

Gas, coal and oil prices skyrocketed and, in addition to the climate challenge and emerging energy crisis, the war in Ukraine and its impact on natural gas supply has further exacerbated the chaotic situation in global energy markets, Dr. Papalexopoulos pointed out.

Decarbonization policies should be pursued without delay and at a faster pace, but the West needs to adopt an inclusive “all in” technology policy through which concurrent development of all technologies should be pursued, he stressed.

Amid this chaotic energy landscape, the role of wholesale energy markets is now even more crucial, while the temptation to rush big government interventions into the wholesale trade picture without the input of experts is a recipe for disaster, Dr. Papalexopoulos warned.

Splitting wholesale markets makes absolutely no economic sense as this would destroy price signals for demand-side resources and energy efficiency needed to provide system flexibility, Dr. Papalexopoulos explained, adding that such a move would reduce the liquidity of the day-ahead market.

Distorted day-ahead market prices will also create serious inconsistencies in futures markets, Dr. Papalexopoulos noted.

 

Day-ahead market split for RES, thermal units requested

The Greek government has proposed target model structural changes, at a European level, that would split the day-ahead market into two entities, one for RES, hydropower and nuclear facilities, and another for natural gas and coal-fired power stations.

For the first of these two new day-ahead market entities, producers would forecast production quantities and be remunerated based on bilateral contracts, detached from the day-ahead market.

For the second of the two new entities, natural gas and coal-fired power station producers, covering remaining energy needs, would submit financial and volume offers based on existing rules.

The Greek proposal was presented by energy minister at an EU council meeting of energy ministers on July 26, energypress sources informed.

Preliminary talks on the Greek proposal have already been held. The European Commission plans to deliver alternative proposals for the target model’s functioning by September.

The day-ahead market determines clearing prices in the electricity market.

 

 

Physical delivery limit eased for bigger suppliers, except PPC

RAE, the Regulatory Authority for Energy, has relaxed, as of 2022, a limit on bilateral agreements established by energy suppliers with market shares in excess of 4 percent, which restricted their physical deliveries to 20 percent of total sales, increasing this limit to 40 percent.

However, RAE has maintained the 20 percent limit for power utility PPC until the end of 2022.

RAE had imposed the 20 percent limit on bilateral agreements since the launch of the target model, before extending the measure through 2021.

Virtually all of the country’s vertically integrated energy suppliers have been subject to the restriction.

RAE, in announcing its revision of the limit, noted that new electricity markets have now been operating for a year, achieving sufficient liquidity in the day-ahead market but not in the futures market.

The authority also pointed out that single day-ahead coupling with the Italian and Bulgarian markets in December, 2020 and May, 2021, respectively, have led to satisfactory price-level convergence with southeast European markets.

Greece registers Europe’s lowest wholesale electricity price today

Greece has registered Europe’s lowest day-ahead market price today, helped by greater RES contributions that have lowered the wholesale electricity price by 57.44 euros per MWh in a day, to 197.24 euros per MWh.

Elsewhere in Europe, wholesale price levels for today are upwards of 250 euros per MWh, while in some countries, the level greatly exceeds 300 euros per MWh, headed by France, where the wholesale price is 329.27 euros per MWh.

Renewable energy units represent 31.13 percent of the energy mix in Greece today, offering a total capacity of 61.5 GWh, just below the level of natural gas, the top contributor, with a 35.62 percent share of the energy mix, or 70.4 GWh.

The country’s hydropower generation is also significantly up today, capturing a 16.5 percent share of the energy mix, or 32.6 GWh, well over usual recent levels of less than 10 percent, as a result of heavy rainfall over the past few days that filled hydropower reservoirs.

The price gap between Greece and other European markets has prompted an increase in electricity exports today to a level of 31.2 GWh. Imports were restricted to 3.2 percent of the energy mix, or 6.3 GWh.

Bulgaria power imports lower wholesale price, down 12.28%

Wholesale electricity prices in the Greek energy exchange’s day-ahead market have plunged by 12.28 percent, driven down by electricity imports from Bulgaria, following a continual price surge over five consecutive days.

Even so, Greece’s wholesale electricity prices levels are the third highest in Europe. Day-ahead market transactions in today’s day-ahead market will average 250.22 euros per MWh, down from 285.24 euros per MWh a day earlier.

Significant price reductions were also registered throughout Europe, suggesting that a de-escalation process could now be underway following alarm in markets prompted by a sharp drop in temperatures in central and western Europe, as well as windless conditions that restricted wind energy production.

Winds have now lifted, offering increased wind energy contributions to the EU energy mix, which has led to big price reductions in day-ahead markets. Wholesale electricity prices in Belgium and Germany fell by 10 and 22 percent, respectively, and dropped nearly 9 percent in France and by more than 12 percent in Italy.

The plunge in Bulgaria reached 22 percent to 217.25 euros per MWh. This sharp drop in the neighboring market has helped reduce the overall cost of Greece’s energy mix as a result of lower-cost electricity imports from Bulgaria.

For today’s trading, electricity imports constitute 13.42 percent of Greece’s energy mix, renewable energy accounts for 28.31 percent, and natural gas-fueled generation represents 47.24 percent of the mix.

 

 

Electricity suppliers reshaping pricing policies, wholesale cost up to new high

The ongoing surge in wholesale electricity prices, now over 204 euros per MWh, a new record level, has astonished even the most seasoned company managers.

“The day-ahead market price surge to such levels has prompted great uncertainty as to what lies ahead,” one highly ranked official at a vertically integrated energy group told energypress

Responding to the wholesale market’s latest record-breaking level, an official at another energy group active in production and supply told energypress that suppliers are now recalculating their pricing policies from scratch.

Without a doubt, the electricity supply market has entered unchartered territory as the upward trajectory in prices, sparked by an unfavorable combination in international markets, appears to be unstoppable.

Company officials have admitted they have no choice but to pass on the majority of the price increase to their customers.

Some companies are cutting back on big discount offers extended to attract customers.

 

 

 

Greece tops August wholesale electricity price list in Europe

Greece’s wholesale electricity market was rated Europe’s most expensive in August, the country’s day-ahead market averaging a level of 121.72 euros per MWh for the month, according to Energylive data.

Romania followed with an average of 112. 7 euros per MWh, while Italy was ranked third with a day-ahead market average of 112.4 euros per MWh in August. They were followed by: Bulgaria (111.55 euros per MWh); Serbia (109.65 euros per MWh); Hungary (109.02 euros per MWh); and Portugal (105.99 euros per MWh). France recorded Europe’s lowest day-ahead market average in August, 77.3 euros per MWh.

The elevated wholesale electricity market levels closing off August, following various factors that prompted a surge throughout the summer, confirm that de-escalation remains beyond reach at present.

Analysts and market officials, at European and national levels, have warned wholesale electricity price levels will be extremely high in autumn and winter.

Yesterday’s energy exchange day-ahead market prices for today average 123.43 euros per MWh, a 5.52 percent drop compared to the previous day.

August day-ahead market prices in Greece peaked at 142.00 euros per MWh, while the lowest level recorded for the month was 100.56 euros per MWh.

 

 

Wholesale electricity prices ease as RES input increases

Wholesale electricity price levels are expected to drop to an average of 130 euros per MWh in the day-ahead market today, down 20 percent compared to yesterday, a de-escalation attributed to increased RES input, the energy exchange has informed.

Stronger winds have been forecast, increasing the generation potential of wind energy units.

The maximum price in the day-ahead market today is expected to reach 186 euros per MWh and the minimum price will be 92 euros per MWh.

Natural gas-fired power stations are scheduled to contribute the lion’s share, 40 percent, of the day’s electricity needs, renewable energy sources will contribute 24 percent, electricity imports and lignite-fired power stations will each provide 15 percent, while hydropower facilities will contribute 6 percent.

Electricity demand for the today is forecast to drop by 2.5 percent compared to yesterday.

 

 

Heatwave pushes up wholesale prices to over €100/MWh once again

The latest rise in temperatures, prompting further heatwave conditions around Greece, is impacting the wholesale electricity market as the average clearing price in the day-ahead market has risen again to levels of over 100 euros per MWh, following days of more subdued levels, according to energy exchange data.

The average clearing price for today is up to 103.8 euros per MWh, up from yesterday’s level of 93.47 euros per MWh and Sunday’s level of 75.34 euros per MWh.

According to the day-ahead market figures, overall electricity generation today is planned to reach 167,437,017 MWh, with lignite-fired power stations covering just 11,172 MWh, natural gas-fired power stations providing 86,541,739 MWh, hydropower facilities generating 11,829 MWh and all other RES units providing 57,894,278 MWh. Electricity imports are planned to reach 16,159,231 MWh.

Today’s electricity demand is expected to peak at 12.30pm, reaching 8,580 MW, according to data provided by IPTO, the power grid operator.

Three of power utility PPC’s lignite-fired power stations, Agios Dimitrios III, Megalopoli IV and Meliti, will be brought into action today, while five of the utility’s natural gas-fired power stations, Aliveri V, Lavrio IV and V, Komotini and Megalopoli V, will also be mobilized, along with gas-fired units operated by the independent players Heron, ENTHES, Elpedison (Thisvi), Protergia and Korinthos Power.

Wholesale ascent prompting hefty retail electricity price hikes

The activation, by electricity suppliers, of wholesale cost-related clauses included in their supply agreements is prompting significant retail increases, seen rising, compared to three months earlier, by 40 percent for the medium-voltage category and at least 33 percent for the low-voltage category.

Medium-voltage tariffs, previously at levels ranging between 64 and 65 euros per MWh, have reached 90 euros per MWh, a 40 percent increase, since the wholesale cost-related clauses were triggered by suppliers earlier this year, and are expected to rise further.

In the low-voltage category, concerning households, tariffs have increased from levels ranging between 70 and 90 euros per MWh, depending on the supplier and agreement, and will need to be raised to 120 euros per MWh for the recovery of increased wholesale costs.

Higher wholesale electricity prices have been attributed to a combination of factors, including higher CO2 emission right and natural gas prices, as well as a sharp rise in demand.

The situation is exacerbated during periods when RES output is subdued, prompting record-level price levels in the wholesale electricity market.

Last week, CO2 emission right prices set a new record of 58.25 euros per ton, up from 32 euros per ton in December, an 82 percent increase.

Natural gas prices have hit a 13-year high, TTF contracts reaching 29 euros per MW/h following levels of between 15 and 17 euros per MW/h in spring, a 93 percent increase. In June last year, gas prices had sunk to record-low levels of as low as 4.9 euros per MWh.

Last week, the average clearing price on the energy exchange ranged from 100.33 to 118.56 euros per MWh, up from 63.16 euros per MWh a month earlier.

In June, the average day-ahead market price on the energy exchange was 83.47 euros per MWh, more than double the level of 40.74 euros per MWh a year earlier.

Suppliers request revisions to alleviate cash-flow pressure

Electricity suppliers, facing steep and lasting wholesale electricity cost increases, which have resulted in cash-flow issues, are seeking revisions that could alleviate the pressure, in recommendations submitted to RAE, the Regulatory Authority for Energy.

Rising wholesale electricity costs have created major cash flow problems for non-vertically integrated electricity suppliers as they are being forced to pay increasing amounts for electricity and related guarantees ahead of payments, to them, by consumers.

Consumers have also felt the pinch as suppliers, seeking protection against the rising wholesale prices, have activated wholesale cost-related clauses incorporated into their supply agreements.

Solutions for both sides seem elusive at present as market forecasts do not see any price de-escalation ahead, only further increases.

In one of the recommendations forwarded to RAE, suppliers called for their cash collateral payments made to the Hellenic Energy Exchange, as a form of guarantee, to be replaced by letters of guarantee representing equivalent amounts.

Suppliers have also requested a reexamination of the clearing price and payment formula in the day-ahead and intraday markets.

They also requested extensions for surcharge payments to power grid operator IPTO and the distribution network operator DEDDIE/HEDNO.

 

Energy Exchange Group (EnEx) celebrates its 3-year anniversary

Founded in June 2018, EnEx is comprised of the Hellenic Energy Exchange S.A. (HEnEx) and the EnEx Clearing House S.A. (EnExClear). Since its designation by the Greek Regulatory Authority for Energy (RAE) as the Nominated Electricity Market Operator (NEMO), HEnEx has evolved in line with the European agenda for a single and integrated European energy market.

As a designated NEMO, HEnEx successfully performed the necessary market transformations for the preparedness and operation of the Greek power market under the new model. All changes were completed in time and by the 1st of November 2020, the Greek power market was integrated with the European Target Model for electricity markets. HEnEx now operates the Day-Ahead Market, the Intraday Market and an energy Derivatives Market.

A very important milestone for HEnEx was the market coupling of the Greek Day-Ahead market to the European markets – over the border between Greece and Italy on December 15th 2020. On May 11th 2021, HEnEx achieved its second market coupling with Bulgaria. These interconnections enable cross-border trading, optimal capacity allocation and congestion management – all of which, facilitate a European Union-wide market in electricity with optimal welfare and resource allocation.

EnExClear plays also an important role in the flawless operation of the spot electricity markets in Greece. It provides clearing, risk management and settlement services for the Day-Ahead Market and the Intraday Market, and is also responsible for the clearing, settlement and shipping of implicit cross border transactions with the coupled markets. Furthermore, EnExClear is also responsible for the risk management and the settlement of positions of the balancing market, which is run by the Greek Transmission System Operator (IPTO).

Both HEnEx and EnExClear are directing their efforts towards the next important steps:

The establishment of a gas trading platform is the next major milestone. In collaboration with the Greek Gas TSO (DESFA), RAE and the Ministry of Environment, EnEx is designing the model for the new gas trading platform which is expected to be operational in fall 2021.

This year, HEnEx will also start operating three Complementary Regional Intraday Auctions (CRIDAs) and foresees its inclusion in the European Cross-Border Intraday (XBID) initiative in Q1 2022. Furthermore, following the connection of the island of Crete to the mainland electricity network, HEnEx is also leading the integration of the island to the existing Day-Ahead and Intraday Markets of mainland Greece.

In this dynamic and evolving energy environment, EnEx is committed to contributing to sustainability and providing high quality, transparent and non-discriminatory services to its markets participants. With confidence, EnEx will continue developing with vision and determination, while learning from its positive experiences, and strengthening the relationship with its partners and stakeholders.

 

Greek-Italian-Slovenian intraday market coupling in autumn

Market coupling of the Greek, Italian and Slovenian intraday markets has been scheduled for September 21 through complementary regional intraday auctions (CRIDAs), a further step towards full unification of the European electricity market.

This market coupling move promises to bolster the liquidity of Greece’s intraday market, which has remained subdued since its launch several months ago, while also easing balancing market burdens of participants.

A liquidity boost in the intraday market is necessary for optimal management of intermittent production, as is the case with most RES units.

Greece’s coupling with Italy and Slovenia constitutes the first step in this direction, the intention being to avoid significant discrepancies for RES units and costs they cause.

The degree to which this coupling step will impact Greece’s intraday market remains to be seen, given the limited capacity of an existing subsea cable linking Greece and Italy, offering 500 MW.

This interconnection will require a capacity boost if high-level intraday market activity is to be achieved, as the infrastructure will need to be able to facilitate physical deliveries of electricity amounts ordered.

Also, the interconnection’s leftover capacity for intraday market trading will depend on the level of electricity import and export agreements established through the preceding day-ahead market.

For example, if, on certain days, the interconnection’s capacity is entirely taken up for day-ahead transactions, then intraday market trading will not be possible.

A second step in the coupling of Greece’s intraday market is planned with the country’s entry into the continual XBID (Cross Border Intraday) market with Italy and Bulgaria, planned for the first quarter of 2022.

Ministry committee set to deliver energy-storage framework plan

Facilities operating purely as energy storage stations will be placed under one category for licensing and regulatory purposes, while a separate category will be established for operations combining storage and RES stations, according to a proposal being prepared by a special committee assembled by the environment and energy ministry.

Also, all electricity markets, such as the day-ahead, intraday and balancing markets, will be open to all energy storage units, regardless of category, according to sources.

Units operating as energy storage stations, alone, are likely to receive licenses through an existing framework already used to grant licenses to natural gas-fired power stations, sources informed.

RAE has resorted to this existing framework as a solution to offer production licenses to a number of companies that have lodged applications for large-scale battery facilities.

The committee, set to stage its final session tomorrow, is expected to present a finalized proposal early next week to authorities, including political officials, RAE, the Regulatory Authority for Energy, energy market operators, and the energy exchange.

The energy ministry, placing great emphasis on energy storage as part of the country’s decarbonization strategy, intends to forward the committee’s framework plan for public consultation at the end of June. The ministry plans to submit a related draft bill to Parliament by October 31.

Medium-voltage suppliers seek higher-priced deal revisions

A sharp rise in medium-voltage energy costs over recent times, resulting from higher wholesale prices, threatens to damage the competitiveness of Greek manufacturers, Antonis Kontoleon, president of EVIKEN, the Association of Industrial Energy Consumers, has told energypress.

Rallying CO2 emission right prices as well as persistently higher prices in the day-ahead and balancing markets have prompted electricity suppliers to seek revised medium-voltage agreements as protection against loss-incurring sales.

Electricity suppliers, maintaining business to business agreements with medium-voltage consumers have increased – by 20 percent compared to just recently – their number of requests forwarded for new supply agreements.

More crucially, suppliers are asking their customers to accept upward price revisions.

In many cases, suppliers have forwarded letters to customers informing that they will no longer be able to service existing supply agreements unless prices per KWh are raised.

Low-voltage consumers also face increased electricity bill costs following the activation, by suppliers, of cost-protection clauses.

Independent suppliers have activated wholesale price-related clauses, incorporated in their supply agreements, while power utility PPC has triggered, for the first time, a CO2 emission rights cost-related clause.

RAE, the Regulatory Authority for Energy, has summoned PPC’s administration to offer an explanation on this decision, at a meeting today. The authority is also expected to soon summon independent suppliers.

Consumers returning to PPC, led by wholesale-linked hikes

Higher wholesale electricity prices, prompting independent suppliers to activate wholesale-cost clauses included in their supply agreements to avoid losses, are tightening up the market by leading disappointed consumers back to the power utility PPC, a clear regression in the effort to establish a broader, more competitive field of players, latest data has indicated.

Consumers opting to leave independent suppliers and return to PPC rose by 56 percent in the first quarter of 2021 compared to the equivalent period a year earlier, market data obtained by energypress has shown.

The number of consumers leaving independent suppliers for any other supplier increased by approximately 40 percent in the first quarter of 2020, the data showed.

This increase in consumer returns to PPC is expected to be reflected in forthcoming market-share data, market officials believe.

Last year, the wholesale market price, represented, at the time, as the system marginal price, ended April last year at 38.02 euros per MWh, whereas this year, in the form of the recently launched target model’s day-ahead market, the wholesale price in April has exceeded 63 euros per MWh.

Increased CO2 emission right costs and elevated TTF and Brent prices are factors that have driven wholesale electricity prices higher. So, too, are higher balancing costs, currently more than double levels of previous years.

Wholesale electricity prices for the next twelve months are seen averaging 89 euros per MWh in the low-voltage category and 79-80 euros per MWh in the medium-voltage category.

PPC, which has never achieved its commitment to lower its market share to less than 50 percent, is offering customers significant discounts at below cost, and, as a result, hampering the market liberalization process and further narrowing the profit margins of independent suppliers, a prominent market official has told energypress.

RAE, the Regulatory Authority for Energy, has the authority and responsibility to take action against suppliers selling electricity at  below cost and protect consumers against misleading offers, the official added.

Wholesale electricity cost up 8% in 1Q, surcharges double

The cost of wholesale electricity averaged 65.412 euros per MWh in the first quarter of 2021, up 8 percent compared to the equivalent period a year earlier, when the level averaged 60.67 euros per MWh, data provided by power grid operator IPTO has shown.

It should be pointed out that a direct price comparison of all components making up wholesale cost during these two quarters is not possible as, during this time, the structure of the wholesale electricity market changed from a mandatory pool system to the target model.

For example, a minimum RES-supporting surcharge burdening wholesale costs by an average of 3.4 euros per MWh during the first quarter last year has since been abolished. Also, the market-clearing price fell to 0.72 euros per MWh in the first quarter from 2.11 euros per MWh in the equivalent period a year earlier.

Even so, the reduction in these costs was outweighed by the increase in wholesale electricity prices. The total cost in the day-ahead and intraday markets averaged 55.17 euros per MWh in the first quarter this year, compared to last year’s average cost of 50.39 euros per MWh in the mandatory pool.

Surcharge costs also increased, averaging 9.53 euros per MWh in the first quarter this year, double the level of 4.78 euros per MWh a year earlier.

Particularly high prices registered late in 2020, during the early days of the target model launch, have eased so far this year. Last November and December, surcharge costs reached 17 and 16.09 euros, respectively.

Electricity consumption fell by 6 percent in the first quarter this year, compared to a year earlier, to 12.39 TWh from 13.175 TWh, as a result of lockdown measures amid the pandemic.