demand response auctions

Demand response service’s activation more probable, conditions tight

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Power grid operator IPTO’s two final demand response auctions for the year, scheduled for December 29 and 30 and to concern the time period between January 1 and March 31, 2021, will be staged amid tight market conditions that resemble those of the country’s supply security crisis in 2017, making the operator’s activation of the demand-response mechanism, a key energy-saving tool for the industrial sector, more probable.

Major-scale electricity consumers such as industrial enterprises are compensated when the TSO (IPTO) asks them to shift their energy usage (lower or stop consumption) during high-demand peak hours, so as to balance the electricity system’s needs.

Capacities totaling 800 MW will be offered at the two upcoming demand response auctions, equally divided into 400-MW amounts for the two sessions.

 

 

First demand response auction in July, TFRM validity to get extra month

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The energy ministry, anticipating the European Commission’s imminent approval of Greek government proposals for a demand response mechanism and a transitory flexibility remuneration mechanism (TFRM), has signed related ministerial decisions so that the mechanisms, vital tools for industrial energy costs, can be implemented immediately once Brussels has given the green light.

Official approval of the plans by the European Commission is expected within the next few days.

Power grid operator IPTO has been informed by the ministry so that it can prepare the first demand response auction, seen taking place within July. IPTO announced a registration procedure yesterday, setting a July 23 deadline for applicants.

The TFRM’s validity is expected to run for an additional month, compared to the initial term agreed to by Athens and Brussels, to make up for its delayed delivery.

Over the past few days, Greek authorities have needed to respond to numerous questions forwarded by Brussels officials, seeking explanations and clarification on both the demand response and flexibility mechanisms.

 

Ministry awaiting Brussels nod for demand response, TFRM

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The energy ministry, anticipating the European Commission’s approval of Greek government proposals for a demand response mechanism and a transitory flexibility remuneration mechanism (TFRM), has decided to sign related ministerial decisions, possibly even today, so that the mechanisms can be immediately implemented once Brussels has given the green light.

Though the two sides have come closer on the mechanisms, it still remains unclear when the European Commission will go ahead with its approval.

Over the past few days, government officials have needed to respond to a series of questions from Brussels, seeking explanations and clarification on details concerning both mechanism plans.

The European Commission’s Directorate-General for Competition is treating both mechanism proposals as one package.

Domestic energy-intensive industries are urgently awaiting the package’s approval in the hope that Greek power grid operator IPTO can stage a demand response auction before July is out.

Under terms agreed to so far, IPTO will be permitted to offer up to 800 MW through demand response auctions, down from 1,030 MW allowed through the preceding plan.

Also, the demand response mechanism will be made accessible to a greater number of companies, including smaller players, through a reduction of a consumption lower limit.

In addition, the demand response mechanism is expected to be valid for a one-year period, not two years, as was requested by EVIKEN, the Association of Industrial Energy Consumers.

The TFRM is expected to be divided into two stages, the first running until the launch of target model markets, scheduled for September 17, under the same terms that applied for a mechanism that expired in March, 2019.

The TFRM’s second stage is seen running from the launch of the target model until a permanent flexibility mechanism is introduced. Its capacity is expected to be drastically reduced to 750 MW from 4,500 MW. Remuneration levels are also expected to drop.

 

Ministry preparing for Brussels demand response, TFRM approvals

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Anticipating the European Commission’s approval of government proposals for a demand response mechanism and a transitory flexibility remuneration mechanism (TFRM), the energy ministry is preparing ministerial decisions for immediate signing once Brussels has given the green light.

These decisions will need to be signed by Greek officials before the two mechanisms can be implemented. The ministry is preparing the ground to have both mechanisms launched as soon as possible.

Brussels and Athens have reached an agreement on the mechanisms, prompting the energy ministry to deliver a finalized version of the demand response plan to the European Commission’s Directorate-General for Competition, ahead of this mechanism’s reintroduction.

The energy ministry expects power grid operator IPTO to be able to stage its first auction for demand-response capacities in July.

According to the agreement reached with Brussels, IPTO will be permitted to auction demand response capacities of up to 800 MW, below the previous limit of 1,030 MW.

Also, a greater number of participants will be eligible as enterprises with capacities of at least 2 MW will be able to take part, down from 3 MW in the previous mechanism. Troubled nickel producer Larco will not be excluded.

In addition, the new mechanism will run until September 30, 2021, not for two years as had been requested by EVIKEN, the Association of Industrial Energy Consumers.

As for the TFRM, it will remain valid until the implementation of a permanent CAT mechanism, which the energy ministry expects to launch in March, 2021.

The TFRM will be divided into two stages, the first running until the launch of target model markets, scheduled for September 17, under the same terms that applied for a mechanism that expired in March, 2019.

The TFRM’s second stage will run from the launch of the target model until a permanent flexibility mechanism is introduced. Its capacity is expected to be drastically reduced to 750 MW from 4,500 MW. Remuneration levels are also expected to drop.

Demand response mechanism to be extended ahead of bid for new plan

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The energy ministry has decided to extend a December 31 deadline concerning the country’s demand response mechanism (interruptability) into February, and, during this additional period, apply for a new two-year replacement.

A ministerial decision to facilitate this extension adheres to provisions offered by the European Commission, energypress sources informed.

This action will secure uninterrupted demand response mechanism coverage for the industrial sector. Power grid operator IPTO may stage one more demand response mechanism auction in January based on the support system’s existing terms.

The application for Greece’s new demand response mechanism, a key energy-saving tool for industry, will be along with another application for a temporary mechanism compensating flexibility.

Both mechanisms are considered crucial for the market’s proper functioning, a recent IPTO study determined.

The demand response mechanism compensates major-scale electricity consumers when the TSO (IPTO) asks them to shift their energy usage (lower or stop consumption) during high-demand peak hours, so as to balance the electricity system’s needs.

 

Heightened interest expressed for demand response auctions

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Industrial enterprises have expressed heightened interest in two demand response auctions scheduled for today and tomorrow.

A total of 30 participants have registered for a demand response auction today offering 600 MW at a starting price of 70,000 euros per MW for a category offering industrial players long-term notice for energy usage disruption.

A second auction offering industrial units a total of 430 MW at a starting price of 50,000 euros per MW under short-term notice terms is scheduled for tomorrow. It has attracted 12 participants.

Motor Oil and the main power utility PPC’s subsidiary Lignitiki Megalopoli, placed for sale as part of the utility’s bailout-required disinvestment of lignite units, are among the 30 participants that have registered for today’s long-term notice demand response auction. Other industrial players include Titan, Sovel, Elval, Solk, Helliniki Halyvourgia, MEL, Fibran, Halyvourgiki, Epilektos, ElvalHalcor, Halyps, ELPE, AGET Iraklis, Larco, PAKO, ELKA, Fulgor and Airliquide.

Participants for tomorrow’s short-notice demand response auction include Mytilineos, Fibran, Lignitiki Megalopoli, PPC (4 mines), Larco, Thrace Nonwoven & Geosynthetics, DAA, and Thrace Plastics.

The demand response mechanism enables major industrial enterprises to be compensated when the TSO (ADMIE/IPTO) requests that they shift their energy usage by lowering or stopping consumption during high-demand peak hours so as to balance the electricity system’s needs.