RES producers must return extra revenues from FIPs by December 17

A procedure for the return to DAPEEP, the RES market operator, of extra revenues generated by RES units with feed-in premiums through their participation in the electricity market prior to October, when the market clearing price was above their tariffs, is expected to start today.

According to energypress sources, DAPEEP, in association with banks, has finalized a formula for the return of extra revenues to the RES market operator. It is expected to upload, within the day, related information on the amounts to be returned for extra revenues up until August. Amounts for the other months are expected to be determined within the next few days.

A related energy ministry draft bill set to be ratified will require all extra revenues generated by RES units with feed-in premiums prior to October to be paid by December 17.






New RES support system facing issues ahead of launch

A new RES market support system, FOSETEK, appears unlikely to be launched on its imminent October 1 scheduled starting date as too many issues remain unresolved for the little time remaining.

In an announcement, RES market operator DAPEEP has noted that a 15-day document processing period is required from the date of applications before RES facility owners can be summoned to sign new support agreements. The system’s launch date is now just one week away.

Under the new system, RES producers operating through Feed-in Premiums (FIP) and possessing facilities with capacities of more than 3 MW in wind energy or over 500 KW in solar energy are obligated to participate in the day-ahead market. So, too, are operators with RES stations over 20 years old – primarily wind energy – and tariff agreements set to expire.

RES producers with FIP agreements have not been paid since July 1 and are currently unable to issue invoices for electricity produced and provided to the grid as a result of the changing support system.


RES producers offering 300 MW left in dark by market change

RES producers with a total capacity of 300 MW and operating under feed-in premium agreements have been left unable to issue invoices for electricity generated and provided to the grid in July, let alone be paid for this production, as a result of a market change.

The launch date of a new market support system, FOSETEK, in place of RES market operator DAPEEP, has been extended to October 1. This leaves the aforementioned group of producers out in the dark until the system’s launch.

Besides July, producers of this category are at risk of also remaining unpaid for output in August and September, until the new system’s anticipated launch in October.

RES investors are demanding payment of at least 90 percent of production until the new system is implemented. The energy ministry has yet to respond.


July payments for 300 MW of RES production in jeopardy

Renewable energy producers representing a total capacity of 300 MW with feed-in-premium contracts are in danger of missing out on payments for output.

A procedure for an extension of their current support system, until October 1 – as cover amid sector revisions still in progress – has been initiated but, besides not being thorough, remains unfinished. It is feared that payments for output in July could be lost.

RAE, the Regulatory Authority for Energy, has alerted the energy ministry on the issue.

RES investors seeking feed in premiums want more time

RES sector investors, left with until the end of the year to submit and have processed applications that could secure them feed in premiums, but stranded as they wait for related ministerial decisions to be published in the government gazette before they can lodge the needed paperwork, have expressed concern over the time remaining. They have requested a deadline extension.

The ministerial decisions are expected to be published in the government gazette any day now, possibly by tomorrow.

However, in comments offered to energypress, sector officials noted that a considerable number of applications are expected to be submitted in the limited time remaining this year, which, they added, makes extremely doubtful the chances of these applications being processed on time by LAGIE, the Electricity Market Operator, and DEDDIE, the Hellenic Electricity Distribution Network Operator.

If the end-of-year deadline for feed in premiums is missed by RES investors, they will then need to go through tenders for capacities before developing their prospective projects.

Investors have already signed earlier contracts for a large number of wind-energy and biomass projects, but they now need to sign new contracts until the end of the year for feed in premiums and avoidance of tenders so as to begin developing their projects in 2017.

As of January 1, 2017, investors will need to go through tenders, in accordance with the country’s RES framework.

Market officials estimate that delays will set in and that the first tender will not be held prior to next summer, meaning that new contracts may take until mid-2018 to be signed.

Older prospective projects granted feed in tariffs need to be constructed by June, 2018. Though the total capacity concerning this category is 1,400 MW, investors are not expected to develop over 350 MW.