energy exchange

German-Spanish systems for local exchange’s PPA platform

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The Greek energy exchange plans to shape its prospective PPA (power purchase agreement) trading platform based on German and Spanish systems, deemed as positive examples as they ensure greater liquidity and attract more investment interest, the Greek energy exchange’s new CEO, Alexandros Papageorgiou, told the recent Power & Gas Forum in Athens.

PPA platforms are digital markets that bring together RES producers with energy consumers interested in purchasing green energy.

These platforms highlight the most important aspects of respective green portfolios, such as power, technologies and production, providing potential buyers with information they need to choose from available options before signing bilateral contracts.

The Greek energy exchange also intends to significantly expand its gas trading platform by offering a range of new products, its CEO informed.

“It is important to know the needs of market participants,” Papageorgiou noted.

The local energy exchange is following a wider European direction taken by energy exchanges across the continent, which are increasingly relying on use of relevant tools available to reduce costs for consumers and offer smoother functioning markets.

 

Electricity prices deescalating for third successive month

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Wholesale electricity prices appear set to deescalate for a third successive month, prompting market officials to interpret the trend as a definite sign of price normalization, since January.

Even so, some market officials warn the market remains volatile and could still be significantly impacted by various unfavorable events.

Price levels in the first half of March were below those of the equivalent period in February.

Average wholesale electricity prices at the energy exchange over the past couple of days were below 100 euros per MWh, at 89.74 and 97.42 euros per MWh, respectively.

Earlier this month, wholesale electricity price levels ranged between 106 and 160 euros per MWh, compared to between 137 and 168 euros per MWh in the first half of February.

Wholesale electricity prices averaged 191.79 euros per MWh in January and dropped to an average of 156.24 euros per MWh in February, levels well below December’s average of 276.89 euros per MWh.

The natural gas market’s TTF index has followed a similar course. It ranged between 85 and 140 euros per MWh in December, fell to levels of between 65 and 68 euros per MWh in January, and has dropped to levels as low as 42 euros per MWh in recent days. The TTF has since edged up to levels of between 49 and 52 euros per MWh over the past three days.

Electricity retailers are expected to announce lower prices for April in a few days’ time. By law, power suppliers in Greece are required to announce their prices for each forthcoming month by the 20th of every preceding month.

 

 

EC proposes pre-determined RES, nuclear output prices

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Two-way Contracts for Difference (CfDs) for low-carbon emitting power plants that are in any way subject to state support are one of the most central reforms in the European Commission’s proposal for revisions to wholesale electricity markets.

Brussels’ proposal, to be officially presented tomorrow, has already sparked some criticism from market officials, citing ambiguities and lack of ambition.

A draft of the proposal obtained by energypress indicates there will be no fundamental changes to the EU electricity market’s structure.

The proposal includes measures aimed at establishing a mechanism that would absorb short-term fluctuations in wholesale markets from consumer bills, especially through wider use of long-term contracts.

CfDs, two-way Contracts for Difference, would be central to such an initiative as they could become mandatory for all low-carbon electricity generation technologies (RES, nuclear, hydro, geothermal) that benefit from state support.

In practical terms, all new investments belonging to categories requiring long-term contracts would be remunerated for output based on pre-determined rates, guaranteed by member states. Therefore, RES and nuclear facility prices for output would not be traded at energy exchanges as they would be pre-set.

 

Heightened market activity ahead of demand-response service launch

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Preparations are in full swing for the introduction of a demand-response service into the wholesale electricity market, expected to be launched in the coming weeks, initially in the balancing market, followed by other energy exchange markets.

Although this is still a relatively new service in Europe and internationally, strong interest is being expressed by participants in Greece, sources have informed.

Companies wishing to take part in the demand-response service need to take care of three key issues as part of their preparation.

Firstly, they must successfully integrate an appropriate operating system and become familiar with it, by no means an easy matter, according to the same sources.

Secondly, companies need to recruit and train appropriate personnel for this service.

A third step interested parties will need to take to complete their preparation process is to convince partners of the importance and value of the demand-response service.

According to market estimates, providers are not confronting solid resistance, but some degree of skepticism does exist, which is no surprise given the service’s novelty aspect.

According to market officials closely following the overall process, power grid operator IPTO has prepared well and is currently in the process of settling certain pending issues, including configuration of web services facilitating communication between participants and the operator.

Demand-response tool to enter day-ahead, intraday markets

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The demand-response mechanism is the latest tool being prepared for entry into Greek energy exchange markets, within the next few weeks, as a move intended to contribute to the system’s balancing and proper functioning, energypress sources have informed.

Besides its basic use in the balancing market, the demand-response mechanism’s coverage will now also be extended into the energy exchange’s day-ahead and intraday markets.

The Hellenic Energy Exchange and power grid operator IPTO, the two authorities handling the procedure, have made progress on the matter.

The energy exchange has already forwarded its related proposal for necessary day-ahead market and intraday market revisions to RAE, the Regulatory Authority for Energy, while IPTO plans to do likewise within the next few weeks.

IPTO has already made technical adjustments to its systems for the demand-response mechanism’s integration in the day-ahead market and intraday markets, while test runs are now being carried out.

Green bilateral deals platform combined with industry PPAs

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An energy exchange platform for green energy bilateral agreements is planned to operate in tandem with power purchase agreements (PPAs) for industry. RAE, the Regulatory Authority for Energy, will, as a next step leading to this prospect, forward to the Energy Exchange comments accumulated through a related consultation procedure.

Authorities need to decide which of three platform alternatives will be adopted. One of the three options included in the consultation procedure is believed to have been rejected by all participants.

The aim is to bring together a platform for green energy bilateral agreements with another being developed by the energy ministry to facilitate PPAs for industrial consumers in place of supply agreements they held, until recently, with PPC, the power utility.

Prospective legislation to exempt bilateral contracts involving physical delivery from caps on fees for all electricity producers in wholesale electricity spot markets is central to the effort.

This exemption will enable RES producers to be remunerated at the market clearing price. Otherwise, electricity purchases and sales made through the Energy Exchange would not be able to take place at price levels agreed to between buyers and sellers.

Universal application of exchange’s intraday market cap soon

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An energy ministry plan for the universal application of a remuneration cap concerning electricity producers in the energy exchange’s intraday market, covering all purchases and sales, not just three supplementary intraday auctions (CRIDAs), is in the pipeline.

At present, a cap only applies to the three CRIDAs, as Greece had not yet joined Europe’s continuous transactions (XBID) platform when the cap was imposed in early October.

XBID trading in Greece was launched just weeks ago. Its volume of trade is many times over that of CRIDAs.

Demand response for electricity markets in first quarter of 2023

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The Energy Exchange is preparing a demand-response mechanism for all electricity markets, in accordance with the European framework, and is aiming for a launch within the first quarter of 2023.

Brussels’ Clean Energy Package and subsequent European Regulations enable full access of demand response mechanisms into electricity markets. EU member states, market operators, and energy exchanges have been requested to take all necessary measures to make this possible.

The basic idea is to actively involve demand response mechanisms (consumption side) to ultimately allow for better management of the energy market.

For its part, the Energy Exchange is taking all necessary steps to provide the technical capacity offering this service to participants.

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

As for regulatory matters, the Energy Exchange is already preparing an amendment to day-ahead and intraday market regulation, which will soon be forwarded to RAE, the Regulatory Authority for Energy, so that it may stage public consultation before adopting relevant regulation.

Exchange’s day-ahead market growing, new products soon

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The Hellenic Energy Exchange’s natural gas trading floor, launched eight months ago, has been positively evaluated for its operations to date and is steadily growing.

The natural gas trading floor was launched with eleven participants and now involves eighteen, plus the gas grid operator DESFA, significantly expanding its gas market presence.

For its part, the Energy Exchange has set as a key objective a further increase of transactions in the short term and, at the same time, registration of a greater number of participants.

At present, 5.5 percent of the total volume of natural gas distributed through the DESFA grid is traded at the Energy Exchange’s natural gas trading floor, the bulk of it as bilateral agreements between participants.

According to energypress, the Energy Exchange plans to further develop by launching new products next year.

It is worth noting that an increase in day-ahead contracts has been observed, not just for gas balancing, which is a good sign for the market’s liquidity and the further maturation and consolidation of the natural gas trading floor in the Greek gas market.

According to data presented by Dr. Christoforos-Anestis Zoumas, Acting COO & Director – Markets Operations of the Hellenic Exchange at a recent IENE conference, the share of the day-ahead market in terms of trading volume is 52.28% and is constantly increasing.

 

 

Energy firms want DAM non-compliance fee formula reviewed

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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.

 

PPAs seen reaching 2.4 GW by ’27, big green energy interest

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Bilateral energy agreements to be established by RES producers with energy buyers in the Greek market are expected to represent a total capacity of 2.4 GW by 2027, highlighting the significant investment interest in the country’s green energy market, a study conducted by Grant Thornton on behalf of the Greek energy exchange has shown.

This projection was included in a Grant Thornton feasibility study concerning the establishment of a platform for PPAs (power purchase agreements) at the Greek energy exchange.

The Grant Thorton study, along with a supplementary study conducted by Afry, were presented at a plenary session held yesterday by RAE, the Regulatory Authority for Energy, ahead of consultation, enabling comments and observations, to be launched today.

Manolis Kalaitzakis, Director of Strategy and Development at the Greek energy exchange, plans to hold a series of meetings with interested parties, including producers, off-takers, traders, banks, and energy ministry officials, to determine how the market views a potential energy exchange platform for PPAs.

RES output doubled, wholesale electricity price plunges 44%

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Doubled RES production in recent days has been a key factor in a 44 percent decrease in the price of wholesale electricity over the past three days, down to levels last registered roughly a year ago.

Day-ahead market prices yesterday dropped to 166.12 euros per MWh, from 298.97 euros per MWh last Thursday.

Besides the doubled RES production, lower electricity demand over the weekend was cited as another factor in this price drop, according to the Hellenic Energy Exchange and power grid operator IPTO. Electricity demand dropped by roughly 20 percent over the weekend, compared to the preceding weekdays, IPTO figures showed.

On October 13, RES and hydropower facilities represented 34.4 percent of the energy mix, their participation rising to 68 percent yesterday.

As a result, natural gas and lignite-fired power stations played a lesser role over the past few days. Natural gas and lignite-fired power stations yesterday represented 8.55 percent and 4.74 percent of the energy mix, respectively, from 31.42 percent and 8.83 percent last Thursday.

Yesterday, between 12pm and 3pm, RES units covered 83 percent of the country’s energy mix.

 

RAE seeks to limit or abolish bilateral electricity contract restrictions

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RAE, the Regulatory Authority for Energy, is moving to limit, or even abolish, restrictions imposed on bilateral physical delivery contracts in Greece’s electricity market as a step towards further liberating the market for price de-escalation.

RAE, in a letter forwarded to the country’s energy exchange, has requested a study examining all scenarios that would further facilitate bilateral physical delivery contracts.

The energy exchange intends to have completed its study in three months so that RAE can proceed with related legislative initiatives.

The issue of whether bilateral contracts in Greece’s wholesale electricity market could contribute to a de-escalation of electricity prices in the retail market has preoccupied local authorities for quite some time.

In recent months, wholesale electricity market price increases in Greece have been almost fully passed on to the retail market, contravening the pattern of more mature European markets.

Gas trading debuts at energy exchange, prices at €85-88

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Wholesale gas trading debuted at the Greek energy exchange without any problems, transactions representing a total quantity of 1,101 MWh at prices ranging between 85 and 88 euros per MWh, energypress sources have informed.

Energy exchange officials and participating companies expressed satisfaction following the first day of trading.

Ten companies – electricity producers and natural gas suppliers – are so far registered to participate in trading on the new platform. These are: AXPO, ELPEDISON, MOTOR OIL, DEPA Commercial, DESFA, PPC, EPA ATTIKI, ZENITH, HERON and MYTILINEOS.

The new platform, operating between 9am and 2.30am, incorporates a day-ahead market covering three 24 periods in advance, as well as an intraday market. It also hosts gas balancing trading covering the grid’s needs.

Officials are planning to also launch, at a latter date, trading for futures contracts, which will enable companies to pursue hedging strategies without needing to resort to other European markets for such tools.

The new platform promises to lead to more competitive natural gas prices as it will enable companies to capitalize on opportunities whenever they arise.

 

 

Gas trading platform energy exchange launch in January

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The Greek energy exchange is set for an expansion in January to also cover the country’s natural gas market with the introduction of a new trading platform for the sector, the president of RAE, the Regulatory Authority for Energy, Thanasis Dagoumas, has told the 1st Annual Regional Conference, organized by Eurogas with support from gas company DEPA Commercial.

RAE has already approved the new platform’s rules and plans to soon take all other regulatory decisions required, the RAE chief official noted.

The new trading platform is expected to offer intraday and day-ahead products covering three-day periods. It will also facilitate balancing market gas trading to cover grid transmission needs.

As a next step, further ahead, authorities plan to also establish a market for gas producers, offering players greater security through hedging options.

 

 

EFET: Greek market restrictions, imperfections repelling traders

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Greece’s electricity market is not an appealing prospect for traders as a result of a series of imperfections and restrictions, the European Federation of Energy Traders (EFET) has noted, informing the Greek energy exchange of an urgent need for a clear-cut schedule leading to solutions as soon as possible.

The EFET observations on the Greek market were part of a wider report covering markets of EU member states in southeast Europe.

The existing model applied in Greece does not allow market participants to trade freely in the country’s electricity market, EFET pointed out, noting, for example, that over-the-counter contracts are only partially permitted as traders cannot buy and resell electricity quantities in Greece, but, instead, need to export quantities they have purchased.

A rule forbidding market participants to switch from forward to day-ahead or intraday markets was another issue identified by EFET.

EFET also made note of rigid market rules conditions for transboundary trading that require imports and exports to be scheduled separately.

RAE forced to reset Cretan market target model entry for November 1

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RAE, the Regulatory Authority for Energy, has reset the target model entry of Crete’s electricity market for November 1, a month beyond a previous date set by energy ministry legislation, to enable full development of information systems to be used by operators and their associates, and also ensure that consumers are better informed on the transition, the authority’s president Thanasis Dagoumas has announced.

This change of date highlights the fact that time had run out for the settlement of pending issues ahead of the previous October 1 launch date for a Cretan hybrid model, intended to offer protection against extreme fluctuations in the balancing market.

As previously reported by energypress, RAE, last week, requested updates from the operators (power grid operator IPTO, distribution network operator DEDDIE/HEDNO, RES market operator DAPEEP) as well as the energy exchange, on their level of readiness, technically, for the Cretan electricity market’s target model entry on October 1.

It can be presumed that at least some of these agencies had not completed actions required in their respective domains for a launch tomorrow.

PPC local, European exchange option for lignite packages

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Power utility PPC will be entitled to choose whether to offer lignite-fired electricity packages to third parties through the Greek energy exchange or European energy exchange, according to details of an upcoming mechanism to be implemented as a remedy to a long-running antitrust case concerning PPC’s monopoly in the lignite sector.

PPC preference for the domestic energy exchange would keep open the option of physical delivery of these lignite electricity packages and ensure the company greater flexibility in its portfolio management. Opting for the European energy exchange would not permit physical delivery, making the deals purely financial transactions.

All that remains for the implementation of the mechanism, whose details have been agreed to by the government and European Commission, is a decision by the energy ministry on when to submit a related legislative revision to parliament, according to sources.

The legislative revision has been completed and the ministry is believed to be on standby for an appropriate date, the objective being to make a first round of lignite-fired electricity packages available to third parties by the fourth quarter this year.

All electricity suppliers will be entitled to purchase these packages, to have three-month durations.

As previously reported by energypress, the electricity quantity planned to be offered to suppliers through the mechanism in the fourth quarter this year will represent 50 percent of lignite-fired output in the equivalent period of 2020.

Then, for every quarter in 2022 and 2023, lignite-fired electricity packages to be offered to PPC’s rivals will represent 40 percent of lignite-based production in equivalent quarters of the respective previous years.

According to the country’s decarbonization plan, all existing lignite-fired power stations will cease operating by the end of 2023.

 

IPTO, now in control of Crete’s small-scale link, boosts to full capacity

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Power grid operator IPTO, which has assumed control of a small-scale power grid interconnection linking Crete with the Peloponnese following the transfer, to IPTO, of distribution network operator DEDDIE/HEDNO’s assets on Crete, effective August 1, has, since August 26, also increased the line to near full capacity, at 150 MW, sources informed.

In addition, IPTO yesterday successfully staged a trial run further boosting the line’s capacity to 180 MW, the absolute upper limit.

The Crete-Peloponnese grid link was launched on July 3 to transfer power loads from the mainland to Crete in order to prevent energy insufficiency issues on the island.

Between its first day and August 20, the link consistently supplied Crete at a capacity of between 70 and 80 MW. This transmission was boosted to 100 MW between August 20 and 25 ahead of the latest increases over the past few days.

Crete’s participation in target model markets will be based on a hybrid model proposed by the Hellenic Energy Exchange from October 1 until the island’s large-scale grid link with Athens is completed.

 

Wholesale electricity prices ease as RES input increases

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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.

 

 

Strategic reserve necessary, exchange reacts satisfactorily

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The end of the Greek energy system’s reliance on lignite, being phased out to help the global climate change effort, needs to be accompanied by a strategic reserve mechanism, which would maintain certain generation capacities outside the electricity market for operation during emergency cases until the ongoing transition to cleaner energy sources has been completed, the extreme heatwave conditions around the country over the past few days have highlighted.

Record-level electricity consumption, combined with power line damages caused by major fires, pushed the grid to the limit, raising fears of widespread power outages.

The government, currently seeking the establishment of a strategic reserve mechanism as part of a Capacity Remuneration Mechanism (CRM), needing European Commission approval, will need to highlight the heatwave-related events that have occurred in Greece over the past ten days.

Sidelined lignite-fired power stations needed to be brought back into action to help the grid meet electricity demand. They offered crucial production contributions representing between 14 and 18 percent of the energy mix.

Lignite-generated output also played a key part in the effort to maintain energy sufficiency last winter, in February, during heavy snowfall that damaged power infrastructure.

The energy exchange has performed rationally during the heatwave conditions, proving its ability to respond to the market’s demand and supply. Day-ahead market price levels rose sharply during the heatwave’s peak and are now subsiding.

 

 

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

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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.

‘DAPEEP should manage PPAs platform, not energy exchange’

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Preparations for the country’s Market Reform Plan, expected to soon be submitted to the European Commission for approval, have prompted a reaction from RES market operator DAPEEP, asserting it should be appointed operator of green-energy power purchase agreements (PPAs) instead of the energy exchange, as has been stipulated in the plan, now undergoing public consultation.

DAPEEP’s objection to the PPA plan, included in the Market Reform Plan, emerged at a meeting staged by RAE, the Regulatory Authority for Energy, uring discussion on the road map for domestic wholesale electricity market revisions.

DAPEEP’s operator’s chief official Yiannis Giarentis protested that the operator has supported the RES sector’s development for years, being at the helm of this market for 20 years, but has now been sidelined as green-energy PPAs, to facilitate bilateral agreements between RES producers and industrial consumers, are about to come into the picture.

RAE will now examine various proposals and views before taking a stance on the matter.

Energy exchange’s gas market trading details forwarded for public consultation

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The Hellenic Energy Exchange has forwarded for public consultation a list of proposals it has submitted to RAE, the Regulatory Authority for Energy, concerning natural gas market details ahead of the prospective energy exchange trading of gas products.

Matters addressed include the procedure to be applied to determine energy exchange  participation rights, charges and commissions for gas product transactions, professional competence requirements as well as product specification rules.

According to one proposal, an annual subscription fee of 7,000 euros will be set for participants.

Also, daily commission fees of 0.005 per MWh for gas products traded in the day-ahead and intraday markets has been proposed.

The energy exchange’s public consultation procedure is planned to end August 31.

Energy exchange gas platform to be presented Monday

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The energy exchange is nearing an expansion through the addition of a new trading platform for natural gas market products, scheduled to be presented by the Hellenic Energy Exchange and gas grid operator DESFA this coming Monday.

Related public consultation, already in progress, is planned to run until the end of August.

Until now, the Greek energy exchange has only facilitated electricity market trade.

The energy exchange, in association with DESFA, has been working on the new gas market platform since last year, the aim being to launch it within 2021.

The exchange’s new gas platform is expected to help establish Greece as a trading hub of geostrategic and geopolitical significance.

Suppliers request revisions to alleviate cash-flow pressure

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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

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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.

 

RAE scrutinizing greater lignite use, IPTO may need to clarify

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RAE, the Regulatory Authority for Energy, is considering to seek clarification from power grid operator IPTO on a series of electricity market issues, including differing formations adopted for the day-ahead and ISP markets.

A first presentation, last week, of the target model’s new wholesale market, energy exchange market results and the energy mix has shown an increase in the use of lignite-fired power stations, despite their higher cost.

Power utility PPC’s lignite-fired power stations are still deemed necessary for electricity supply security, even when capacity levels are sufficient, to counter instability issues at the grid’s northern section, where interconnections facilitate electricity exports.

The use of lignite-fired power stations, such as Agios Dimitrios, Megalopoli IV and Meliti, despite the higher cost of CO2 emission rights, has significantly increased energy costs for suppliers and industry.

Also, when IPTO issues grid distribution orders to lignite-fired power stations, the grid-contribution programs of other units are consequently canceled out and remunerated by the energy exchange, even for energy amounts not contributed to the grid.

Meanwhile, lignite-fired power stations are remunerated through the balancing market at price levels that usually exceed 100 euros per MWh.

RAE’s intervention is intended to ensure the electricity market’s smooth functioning and efficiency, for the benefit of participants and consumers.

Strict schedule for Crete target model transition plan

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The European Commission has offered preliminary approval, still unofficial, of a Greek proposal concerning a transitional framework for Crete’s electricity grid link with target model markets.

This development will now enable RAE, the Regulatory Authority for Energy, to conduct public consultation for a temporary plan concerning the island’s participation in the target model’s wholesale markets.

RAE is expected to begin the public consultation procedure this week, sources said. It will feature a strict road map for the model’s implementation, from forthcoming steps all the way to legislation.

The plan’s framework will include two alternative methods for the island’s electricity supply transactions through a small-scale interconnection, with the Peloponnese.

The solution to be selected will greatly depend on the results of the public consultation process.

As previously reported by energypress, a transitional framework is necessary as Crete’s electricity needs will only be partially covered, at a level of about 30 percent, through the small-scale interconnection.

The framework will expire once the island’s full-scale grid interconnection, all the way to Athens, begins operating in 2023.

Authorities gearing up for intraday market entry of traders

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Authorities are picking up the pace on moves needed to also enable traders to begin participating in Greece’s intraday electricity market, one of the new wholesale markets emerging with the target model’s recent introduction.

The Greek energy exchange will forward its proposal for necessary market regulation amendments to RAE, the Regulatory Authority for Energy, within the next two months, energypress sources informed.

These revisions will take finalized shape through ongoing discussions between the energy exchange, as operator of the intraday market, power grid operator IPTO, managing international grid interconnections, and RAE.

The authorities are seeking to establish an optimal formula for the intraday market entry of electricity traders.

The talks, until now, have indicated that intraday day interconnection rights will not be required for transboundary trade between intraday markets that have not undergone coupling.

Therefore, traders will be able to participate in the intraday market by utilizing the amount of daily interconnection rights they have secured and not used for transboundary transactions in the day-ahead market.

The addition of traders to the intraday market promises to boost its liquidity, currently low. This will help liberate market players by offering them greater flexibility, limiting the pressure on the balancing market.