Energy Exchange to launch pilot platform for PPAs in Q3

A pilot platform being developed by the Energy Exchange for renewable energy PPAs is expected to be launched within the third quarter of this year, energypress sources have informed.

The main idea, given the current maturity of the market, is to offer common ground where the parties involved – RES producers and off-takers – can converge to negotiate bilateral contracts.

A simple platform will be offered to facilitate the needs of buyers and sellers, the sources noted, adding the Energy Exchange will not include more complex functions such as billing, clearing or other services.

Also, the Energy Exchange is developing a contract template as assistance for parties interested in establishing PPAs, especially smaller players. It will be at their discretion whether to use it or not.

The aim will be to offer a formula ensuring proportionality and balance between producers and off-takers in order to minimize the possibility of contracts being broken over the slightest of issues.

No particularly challenging regulatory issues remain pending for the platform’s operation, meaning delays are unlikely.

The Energy Exchange may revise the platform’s original form at a latter date in order to offer additional services that would correspond with the PPA market’s increased maturity anticipated over time.

PPC market share shrinks 3%, Mytilineos high-voltage leader

Power utility PPC’s overall market share contracted by three percentage points in January, from 56.1 to 53.1 percent, in mainland Greece, while the country’s three biggest independent suppliers all gained ground, latest figures published by the country’s energy exchange have shown.

As for the electricity market’s voltage-based sub-categories in January, Mytilineos is the market leader in the high-voltage category with a 39.1 percent market share, and PPC is at the forefront of both the medium and low-voltage categories with respective market shares of 42.6 and 63 percent, the energy exchange data showed.

In December, PPC’s market share had remained steady in the low-voltage category, while the company gained two percentage points in the medium-voltage category and shed 24 percentage points in the high-voltage category.

PPC’s considerable market-share loss in the high-voltage category has been mainly brought about by Aluminium of Greece’s shift away from PPC to Protergia, a fellow Mytilineos group member, now the high-voltage category’s market leader.

Energy exchange sub-hourly products for greater precision

The energy exchange has decided on a method to introduce sub-hourly, physical-delivery products to electricity markets so that these products may operate at optimal level. Its proposal has just been forwarded for public consultation.

Though participants have until January 26 to provide comments, the overall initial reaction by market players has been positive.

These new sub-hourly products, covering 15 and 30-minute durations, will offer market participants greater accuracy in terms of measurement and deviation periods through short-term contracts. They also allow for shorter-duration forecasts closer to the actual physical delivery time.

Marker players want as many tools as possible, one energy exchange official commented, while also pointing out that these tools need to be applied in accordance with existing restrictions imposed on trading methods such as auctions and continuous trading for best possible results.

Energy exchange’s preliminary PPA plan approved by officials

A preliminary plan prepared by the energy exchange for a platform hosting renewable-energy power purchase agreements (PPAs) has been given the green light for further development by both the energy ministry and RAAEY, the Regulatory Authority for Waste, Energy and Water, energypress sources have informed.

The energy exchange’s plan is divided into two stages corresponding to the maturity levels of the PPA market.

During preceding public consultation, RAAEY had presented three alternative models for development. The energy exchange opted to work on a model whose first stage – at least – would primarily enable participants to express interest.

At its meetings with the energy ministry and RAAEY, the energy exchange presented a proposal detailing a standardized form for PPA contracts, as well as draft rules on how the platform should operate.

In addition, at these meetings, the energy exchange stressed that, despite its limited initial needs, the PPA platform plan would need to take into account, from the outset, the prospect of operating in mature and developed market conditions.

Gas trading platform now an established market option

The country’s gas trading platform has consolidated its place in the Greek energy market since its launch in March, 2022, latest data on the number of participants and trading volumes has shown.

A total of 26 national gas network users are now conducting transactions through the platform, up from 11 when the platform was launched one-and-a-half years ago, while a further three companies are set to complete their respective registration processes and ten more are preparing to begin, energypress sources have informed.

Also, Greek energy exchange officials are currently engaged in talks with a further eight companies that have expressed an interest to participate in the natural gas spot market. This sharp rise has greatly impacted the spot market’s liquidity.

Interest from abroad is also on the rise. At the time of the gas trading platform’s launch, just two companies were based beyond Greece, compared to nine foreign-based companies at present, their headquarters located in Bulgaria, Romania, Luxembourg, and the Czech Republic.

The increased participation has intensified competition, another indicator of the gas trading platform’s robust state.

Southeast European bodies launch single-market effort

Regulatory authorities, operators and energy exchanges active in southeast Europe have begun informal preparations for the establishment of a single electricity market in the region, energypress sources have informed.

These bodies, which had signed a Memorandum of Understanding in mid-November, launching their single-market preparations, are conducting preparatory work at two levels.

Southeast European regulators, headed by the Albanian regulatory authority, placed at the group’s helm, have joined forces to coordinate on high-level preparatory work.

A second team has brought together the region’s operators and energy exchanges. Its participants appointed the North Macedonian energy exchange as group leader.

The participating bodies have scheduled their next meeting for February, in Pristina, where the group will plan its next steps.

Establishing a single southeast European electricity market represents an extremely challenging task that will require time and critical intervention of market structures, experts have pointed out.

The regulatory authorities, operators and energy exchanges working on this single-market project intend to submit an application to the European Commission within 2024, making their endeavor official.

Traders are monitoring the effort’s developments as a prospective market unification would enable cross-border trade in an intraday market, currently not possible.

The unification process will be modelled on the coupled markets of Greece with Italy and Bulgaria.

PPC, Mytilineos agree to rise in energy exchange fees

Power utility PPC and the Mytilineos group have accepted a proposed increase of fees paid to the Greek energy exchange, recognizing, in doing so, the importance of adequate funding for the exchange to ensure its effective functioning.

RAAEY, the Regulatory Authority for Waste, Energy and Water, is currently staging consultation on the matter.

PPC and the Mytilineos group both submitted letters to the authority noting a plan to revise a formula determining fees for the energy exchange is heading in the right direction.

Mytilineos stressed the need to keep additional fees and charges proportional to the size of domestic energy markets in order to strike a balance assuring they operate efficiently at a reasonable participation cost.

PPC offered comments along similar lines, noting the energy exchange’s sustainability needs to be protected so that electricity markets may continue to operate efficiently.

The Greek energy exchange plans to soon introduce new products to both the electricity and gas markets, which will contribute to its ongoing development. It is also preparing a new platform for green-energy bilateral contracts.

The energy exchange’s operating ability will need to be reinforced with additional personnel so that it may respond adequately and effectively to its increase in tasks, an official told energypress.

Wholesale electricity price falls sharply over the weekend

The price of wholesale electricity plunged over the weekend, driven lower by an increase in RES output.

Yesterday, wholesale electricity fell to an average price of 53.30 euros per MWh, while, for a five-hour period between approximately 10 am and 3 pm, the price level reached zero, according to energy exchange data. The day’s maximum price level peaked at 120 euros per MWh.

Yesterday’s price level fell by 10.63 percent compared to Saturday’s 59.65 euros per MWh, which, in turn, was 25.30 percent below Friday’s level of 79.85 euros per MWh.

Today’s average wholesale electricity price is 95.18 euros per MWh, with the day’s peak at 153 euros per MWh and the minimum at 59 euros per MWh. Demand for the day is at 160 GWh.

The RES sector is programmed to be today’s biggest contributor with a 47.4 percent share of the energy mix, followed by gas-fueled production, at 22.7 percent, electricity imports at 12.4 percent, hydropower at 7.4 percent, and lignite-fired output, representing 6 percent.

 

No major tariff changes seen for May, support maintained

Next month’s retail electricity tariffs, due to be announced tomorrow by the country’s suppliers, are expected to remain largely unchanged compared to the previous month as a result of low prices at the TTF index and relative stability at the energy exchange.

By law, introduced last summer, all suppliers are required to announce their nominal tariffs for each forthcoming month by the 20th of each preceding month.

If the forecasts for May price levels are confirmed, nominal tariffs – not including subsidies – offered by suppliers will range between 0.105 and 0.1995 euros per KWh.

If the energy ministry decides to subsidize electricity bills for yet another month, as it has done throughout the energy crisis, then households can expect finalized retail prices to range between 0.09 and 0.1845 euros per KWh.

Though energy prices have deescalated considerably since the start of the energy crisis, authorities are expected to keep offering support to consumers until the end of the year.

The energy ministry has just launched an online platform, e-katanalotis, on which electricity users may check tariffs offered by suppliers.

German-Spanish systems for local exchange’s PPA platform

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

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

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

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

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

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

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

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

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

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

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%

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

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

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

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

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

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

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

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

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

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.