The main power utility’s prospective Ptolemaida V power station, now being developed, will most likely be eligible for CAT remuneration, the European Commission’s Permanent Representatives Committee (COREPER) has indicated.
According to the European Commission’s clean energy package, now being shaped, EU support mechanism subsidies will be reserved for units whose CO2 emissions do not exceed 550 grams per KWh. This upper limit promises to exclude units driven by fossil fuels such as carbon and lignite.
The clean energy rule is expected to soon be implemented for all new power stations and also apply for existing units as of July 1, 2025. From this date onward, units fueled by fossil fuels will no longer be valid for CAT remuneration.
Luckily for PPC’s Ptolemaida V project, the European Commission decided, in December, to offer exemptions to the rule as a result of a request made by Poland, whose economy and electricity production are heavily reliant on coal. This sets a precedent. PPC’s effort to ensure CAT remuneration for Ptolemaida V, expected to be launched in 2021, stands to benefit from the development.
Poland appears to have gained the Greek government’s support in the country’s request to the European Commission for an investigation into CO2 emission right price manipulation suspicions at energy exchanges.
Like Warsaw, the Greek government is also concerned by the rise in CO2 emission right prices, energy ministry sources have admitted.
It remains unclear if the issue was tabled at a meeting yesterday between energy minister Giorgos Stathakis and Maros Sefcovic, the European Commission’s vice president for Energy Union.
Emission right allowances could be increased if these price manipulation suspicions are confirmed, sources around Europe believe.
Poland has been particularly affected by escalating CO2 emission right prices as it a coal-dependent nation. Just weeks ago, the Polish government forwarded a request, in writing, to Brussels calling for an investigation into CO2 emission right prices. They reached 20.70 euros per ton yesterday.
Eurelectric, the European electricity industry association, intends to stop supporting investments in carbon-based electricity generation from 2020 onwards as part of its commitment to helping achieve carbon-neutral power supply in Europe by 2050, the association noted in a statement released today.
Greece and Poland, still maintaing carbon-heavy energy mixes and planning to develop new carbon-fired power stations, will not back Eurelectric on this objective.
“EURELECTRIC believes that market-based mechanisms such as carbon markets are the most cost-effective and efficient tool for mitigating greenhouse gas emissions and stimulating investments in low carbon technologies and energy efficiency,” Eurelectric noted in a statement.
The association also pointed out: “Only the combination of an effectively reformed EU ETS and improved EU electricity market design can lead to sustainable and credible carbon price signals to drive investments to mature low carbon technologies. The power sector is already widely investing into low-carbon and innovative solutions to achieve carbon-neutral electricity supply by 2050 and does not intend to invest in new-build coal-fired power plants after 2020. In this context, we strongly reiterate our belief in cost-efficiency as an essential to building a resilient and future-proof Energy Union. We therefore urge policy makers to refrain from introducing command and control tools and to support a market-based energy transition.
Antonio Mexia, president of Eurelecric and chief executive of Portugal’s EDP, noted that the electricity sector is “determined to lead the energy transition and support its commitments for a low-carbon economy through specific actions.”
Eurelectric represents 3,500 electricity sector enterprises in Europe with a total capitalization of over 200 billion euros.