Gov’t moves ‘prevent’ public service compensation returns

Posted on January 25, 2022January 25, 2022 by admin

Two government decisions have prevented a reduction of public service compensation surcharges (YKO) included in electricity bills, despite the account being in surplus territory, the head official of RAE, the Regulatory Authority for Energy, has informed.

A government measure was recently ratified to enable a retroactive return of public service compensation amounts to power utility PPC for outstanding amounts from previous years, although RAE had determined, in 2019, no need for a return to the utility, according to RAE president Athanasios Dagoumas.

Another decision, approved last year and also preventing a public service compensation reduction for consumers, links the surcharge’s account with the RES special account, the RAE chief explained, while adding that this measure has yet to be fine-tuned through a related ministerial decision.

Dagoumas, speaking at a press conference yesterday, clarified that the energy ministry decides on public service compensation surcharge revisions and surplus returns, whereas the authority’s role is limited to offering opinion.

The public service compensation ended 2021 with a surplus of 105 million euros despite reporting a deficit of 150 million-euro deficit in July, according to the RAE chief.

Dagoumas said he informed the government that the public service compensation surplus could be utilized for social policy. However, the energy ministry eventually decided to suspend returns for certain consumer categories, he added.

Excess RES revenue support for Energy Transition Fund

Posted on January 5, 2022January 5, 2022 by admin

Government officials are preparing to establish the RES special account as a second major contributor to the Energy Transition Fund, assuming wholesale electricity prices remain at high levels generating excess revenues for RES producers.

RES units with feed-in premium agreements generating excess amounts – well over anticipated remuneration levels based on reference prices agreed to – as a result of considerably higher wholesale electricity prices, would be required to inject these extra amounts into the RES special account, according to the plan.

The establishment of an extra revenue source for the Energy Transition Fund, in addition to funds being generated through CO2 emission right auctions, is deemed necessary as subsidies protecting households and enterprises from extremely higher energy prices are expected to be needed in 2022.

A legislative revision requiring RES producers to return, to the RES special account, excess revenues resulting from higher wholesale prices has already been activated.

Officials are believed to be working on a mechanism that will be automatically triggered into action when prices in the wholesale electricity market’s day-ahead market rise over a certain level.

Higher wholesale prices boost RES special account inflow

Posted on December 31, 2021December 31, 2021 by admin

Greatly increased wholesale electricity prices over recent months have turned RES units with feed-in premiums into key contributors of the RES special account in 2021.

According to a recent report released by DAPEEP, the RES market operator, RES facilities with feed-in premiums are forecast to inject 88.5 million euros into the RES special account in 2021 as a result of excessive revenues generated by extremely higher wholesale electricity prices. The operator took into account a December average market price of 225 euros per MWh.

A preceding report by DAPEEP had forecast a far lower 9.07 million-euro input by RES facilities with feed-in premiums in 2021, based on the assumption of an average market price of 135 euros per MWh during the final three months of the year.

Given the higher wholesale prices, RES units with FIPs are expected to contribute 161.6 million euros to the RES special account between July and December, about double the 81.8 million-euro forecast included in the operator’s previous report.

The increased RES special account inflow will continue until June, 2022, with RES units seen injecting 151.3 million euros in the first half of next year, before their contribution drops to 66.32 million euros in the second half of the year, the RES market operator has forecast.

RES deadline for return of extra revenues expiring tomorrow

Posted on December 16, 2021December 16, 2021 by admin

Investors behind RES units with feed-in premiums that generated extra revenues through their participation in the electricity market during the months up to August, as a result of market clearing prices that exceeded tariff levels, have until tomorrow to return excess amounts.

DAPEEP, the RES market operator, last week announced details on its website concerning these returns.

RES units for which investors fail to meet tomorrow’s deadline will, as a penalty, be excluded from the market, according to conditions set by the energy ministry. Revenues generated by excluded RES units will be injected into the RES special account.

Returns until the end of the year have been estimated to total 81.8 million euros. DAPEEP based its calculations on the assumption of a market clearing price average of 135 euros per MWh in the final quarter of 2021. Levels have risen much higher, resulting in a greater amount to be injected into the RES special account.

RES special account surplus over €50m despite CO2 share cut

Posted on November 22, 2021November 22, 2021 by admin

The RES special account’s surplus is expected to remain on steady ground despite the concerns of renewable energy producers, fearing a massive reduction in the account’s share of CO2 emission right auction revenues, now down to 8 percent from 75 percent, will shrink the surplus to an extent that could affect their income for RES output, sources informed on the account’s latest figures have reported.

RES market operator DAPEEP is expected to soon release a report on the RES special account for the months of August and September.

The RES special account’s surplus at the end of 2020 will exceed 50 million euros, not including a 70 million-euro amount kept aside as a safety reserve for extraordinary circumstances, meaning the account’s actual end-of-year surplus will total at least 120 million euros, the sources informed.

A decision formalizing the RES special account’s reduced share of CO2 emission right auction revenues to 8 percent was implemented on November 19.

However, RES special account figures will need to be recalculated if the government’s current electricity subsidy offer for households is increased from the current monthly level of 39 euros per household.

The RES special account’s share of CO2 emission right auction revenues was reduced to enable greater support for the Energy Transition Fund, which has been resorted to by the government to compensate electricity suppliers for subsidized electricity bills.

It should be pointed out that CO2 emission right auction revenues have risen considerably this year as a result of sharply increased CO2 emission right prices.

RES special account safety reserve to fall below €70m

Posted on November 18, 2021 by admin

The RES special account is expected to end the year just inside surplus territory, below the 70 million-euro level established as a safety net for coverage of extraordinary circumstances so as to ensure the account’s ongoing ability to remunerate renewable energy producers.

The account’s tighter financial standing has resulted from the drastic reduction in its share of CO2 emission right auction revenues, now down to 7 percent from 75 percent, to enable greater support for the Energy Transition Fund, which has been resorted to by the government to compensate electricity suppliers for subsidized electricity bills.

Latest complications in the the licensing procedure for the Nord Stream 2 gas pipeline running directly from Russia to Germany through the North Sea appear set to push electricity price levels even higher in coming weeks. This may force the government to further increase electricity subsidies for December consumption, over a monthly level of 39 euros per household previously decided on for November and December.

ELETAEN: RES surcharge as competitive pricing component

Posted on November 17, 2021November 17, 2021 by admin

ELETAEN, the Greek Wind Energy Association, has reiterated its support for changing the RES-supporting ETMEAR surcharge included in electricity bills from a regulated to competitive component of pricing policy.

The association has supported this view over the past decade or so, along with other renewable energy sector officials.

ELETAEN general manager Panagiotis Papastamatiou, responding to a related question at a news conference, noted that the ETMEAR section concerning new projects could be incorporated into the competitive fees of suppliers.

Full or partial incorporation of the ETMEAR surcharge into the competitive pricing policy of energy suppliers would automate the determination of required RES special account revenues, meaning they would be adjusted by market forces without the need for state intervention, ELETAEN supports.

“We want to avoid the situation of the energy ministry having to take on an accounting role each time, calculating RES special account revenues,” ELETAEN president Panagiotis Ladakakos.

According to ELETAEN, at present, Greece’s new wind farms are generating electricity at a greatly reduced cost that is three to four times lower than the cost of natural gas-fueled electricity production and two to three times lower than the cost of lignite-based output.

Had the ETMEAR surcharge already been incorporated as a competitive component in the pricing policy of suppliers, this lower-cost green energy would have been passed on to consumers, ELETAEN supports.

RES special a/c share of CO2 auction revenues down to 7%

Posted on November 16, 2021November 16, 2021 by admin

The government’s rising amount of electricity bill subsidies offered to households to help counter the sharp increase in energy prices is prompting a decrease in the level of CO2 emission right auction revenues made available for the RES special account, remunerating renewable energy producers.

Revisions have been made to a recent ministerial decision in order to secure funds for electricity bill subsidies worth 39 euros per month, energypress sources informed.

Under the latest terms, 70 percent of CO2 emission right auction revenues, or approximately 700 million euros, will be injected into the Energy Transition Fund, supporting the subsidy effort, while just 7 percent, or 70 million euros, will go to the RES special account.

The decision to restrict the RES special account’s share of CO2 emission right auction revenues to 7 percent was taken by the energy ministry once DAPEEP, the RES market operator, confirmed the RES special account’s surplus figures, prompted by far higher wholesale prices and increased CO2 emission right prices.

A year earlier, the RES special account was receiving 75 percent of CO2 emission right auction revenues, a level exceeding a 60 percent minimum that was required by law.

Electricity subsidy boost from RES special account surplus

Posted on November 8, 2021 by admin

A government plan for a further increase in electricity bill subsidies for households and businesses, as well as natural gas consumers, for energy crisis support, is expected to be finalized this week, possibly even today.

At the same time, the government is also examining ways to offer energy-cost relief to major-scale consumers of the medium-voltage category, including manufacturers and chains. New installment-based payment plans are being considered for this category of consumers.

The funds required for low-voltage subsidies are likely to be derived from the RES special account surplus, in excess of 150 million euros, as will be shown by a latest report, covering up to August, expected to be released by RES market operator DAPEEP during the week.

A considerable proportion of the RES special account surplus, generated by CO2 emission right auction revenues, is expected to be injected into the Energy Transition Fund for subsidy support. Other sources, including the budget, cannot be excluded.

Electricity subsidies for average households are expected to reach 18 euros per month.

RES players troubled by slashed CO2 rights share

Posted on October 26, 2021October 26, 2021 by admin

Renewable energy producers are concerned about the balance of the RES special account, remunerating their output, following a government decision to reduce the share of CO2 emission right auction revenues injected into the account.

The government is looking for additional funds to support energy crisis-hit consumers of all scales.

The share of CO2 emission right auction revenues injected into the RES special account will be reduced to between 30 and 32 percent, from at least 60 percent.

However, RES producers hope the sharp increase in CO2 emission right prices over recent times will compensate for their slashed share and keep the RES special account in surplus territory. A clearer picture on the account’s standing will have emerged by the end of the year.

Though CO2 emission right prices have roughly tripled compared to levels last year, a reduced 30 percent CO2 rights auction share for the RES special account is expected to lessen last year’s 375 million-euro total derived from these auctions by approximately 75 million euros, according to estimates.

This reduced cash inflow into the RES special account could limit new green energy investments, sector officials warned.

CO2 auction revenue share for RES special a/c down to 30%

Posted on October 25, 2021October 25, 2021 by admin

CO2 emission right auction revenues injected into the RES special account, remunerating producers, will be reduced to between 30 and 32 percent of the total following a revision to a previous rule requiring an input share of at least 60 percent.

This change was prompted by the energy crisis and the government’s need to allot funds for support to energy consumers of all scales and suppliers.

Under the new rules, the energy ministry has been given authority to determine and set the percentage of CO2 emission right auction revenues to be injected into the RES special account. The ministry’s related ministerial decision, expected to halve the percentage, is expected today.

Despite this share reduction, energy ministry officials insist the CO2 emission right auction revenue amount to end up in the RES special account will not be affected as a result of the sharp rise in CO2 emission right prices.

Approximately 45 percent of CO2 emission right auction revenues, estimated to result in an amount of 470 million euros, is expected to be transferred into the Energy Transition Fund to help combat the energy crisis.

A sum of 327 million euros is expected to be utilized for electricity bill subsidies, 90 million euros for heating fuel subsidies, 30 million euros for electricity supply reconnection fees concerning low-income households, and 30 million for telethermal needs.

Extra producer income returns to RES special a/c formalized

Posted on October 15, 2021October 15, 2021 by admin

A legislative revision detailing the procedure through which RES producers with feed-in premiums will return to the RES special account excess remuneration resulting from higher wholesale electricity market prices has just been ratified by Greek Parliament.

Over the past few months, many RES units have been generating excessive revenues as the sharp rise in wholesale prices has lifted the market clearing price well over the market’s reference price.

The RES special account stands to receive 4.384 million euros in returns from RES producers with feed-in premiums up to July, while the monthly returns from July onwards are far greater as a result of skyrocketing wholesale electricity prices since that period, according to a latest report released by DAPEEP, the RES market operator.

This trend will continue until the end of the year as the market clearing price is forecast to average 135 euros per MWh in the fourth quarter, according to the DAPEEP report.

RES special account surplus at €243.74m in 2021

Posted on October 14, 2021 by admin

The RES special account is expected to end 2021 with a surplus of 243.74 million euros, DAPEEP, the RES market operator, has announced in its latest report, released every two months.

Adding a green tax imposed on auto diesel to this figure would take the RES special account’s surplus to 335.74 million euros, including a 70 million-euro safety reserve.

The end-of-year projection takes into account consolidated figures until the end of July, as well as preliminary figures up to the end of September, the operator’s chief official Yiannis Giarentis noted in the report.

CO2 emission rights, feeding the RES special account, will continue along an upward price trajectory, the official noted.

A recent government decision giving DAPEEP control of the new Energy Transition Fund, a move promising to further increase the operator’s influence in the energy market, comes as recognition of the operator’s efforts for the country’s green energy transition, Giarentis noted.

CO2 auction money for RES a/c cut to 50% for power subsidies

Posted on October 12, 2021October 12, 2021 by admin

The energy ministry will proceed with a legislative revision reducing the percentage of CO2 emission auction right revenues channeled into the RES special account, remunerating green energy producers, from 60 percent to 50 percent as a means of securing subsidies for sharply increased electricity bills, sources have informed. Two related ministerial decisions will also be needed.

Just a month earlier, the government had ratified an amendment increasing the percentage of CO2 emission auction revenues for the RES special account to at least 60 percent.

The latest amendment, intended to support consumers through the energy crisis, may be submitted to Parliament for ratification this Thursday, as an attachment to a draft bill concerning energy efficiency.

As a result of this latest revision redistributing CO2 emission auction revenue, a percentage of between 30 and 40 percent will be channeled into the Energy Transition Fund being established by the government for energy crisis measures to support consumers.

The government has increased the amount to be injected into the Energy Transition Fund for electricity bill subsidies to 400 million euros, from a previous estimate of 150 million euros, as a result of the persisting electricity price surge in the market.

Gov’t turns to extra RES special a/c sum for energy subsidies

Posted on October 1, 2021October 1, 2021 by admin

The government, seeking new resources to cover the additional needs of natural gas and electricity bill subsidies, is examining all possibilities, including the RES special account’s additional revenues, generated and accumulated as a result of surging wholesale electricity prices and deemed more than sufficient to cover the remuneration needs of renewable energy producers.

However, the issue does concern certain RES producers whose contracts are susceptible to higher wholesale prices and require compensation, based on the market clearing price. The energy minister is working on this issue with DAPEEP, the RES market operator.

The level of the RES special account’s additional revenues, and how these will be utilized, has yet to be clarified. But the government’s determination to seek solutions that will soften, for consumers, the effects of sharply increased energy prices pushed up by a combination of unfavorable international factors, has become perfectly clear.

At this stage, the energy price surge appears likely to spill over into the first few months of 2022, at least.

The situation’s growing alarm, by the day, prompted the government to recently increase a subsidy package amount for low-voltage electricity tariffs from 150 million euros to 200 million euros, just weeks after the support measure was announced. Given the ongoing developments, not even this increased amount will suffice, which has prompted the energy ministry to turn to DAPEEP for support through the RES special account.

The price surge in energy markets has been relentless in recent months. Wholesale electricity price levels for today rose to 168 euros per MWh, 26 percent higher than yesterday’s price of 133 euros per MWh.

RAE checks with Brussels on balancing cost reimbursement

Posted on September 23, 2021September 23, 2021 by admin

RAE, the Regulatory Authority for Energy, is considering to facilitate a return to electricity suppliers, the RES special account and industrial consumers of amounts linked to increased balancing costs for a period until restrictive measures were imposed by the authority.

But, before taking any action, the authority has submitted an enquiry to the European Commission to ensure that such an initiative would not contravene EU electricity market regulations.

The response from Brussels is expected to offer RAE clarity as to whether it can move ahead with a reimbursement plan for affected groups for a period covering the launch of the target model just under a year ago to the ensuing restrictive measures imposed by RAE to counter increased balancing costs.

PM presents Energy Transition Fund as price-surge protection

Posted on September 13, 2021September 13, 2021 by admin

The new Energy Transition Fund, announced yesterday by Prime Minister Kyriakos Mitsotakis at the 85^th Thessaloniki International Fair, will offer electricity subsidies to households and small and medium-sized enterprises, heating fuel subsidies, and a range of other initiatives intended to help combat energy poverty.

The new fund, to be established as a permanent tool, will be launched with an initial amount of 150 million euros expected to remain as a surplus from CO2 emission right auction revenues that have overperformed this year as a result of higher CO2 emission right prices in international markets.

The 150 million-euro amount to be reserved for the new Energy Transition Fund will not deprive other domains of customary support.

The RES special account will receive a 60 percent share of CO2 emission right auction revenues. Despite being a smaller proportion than last year, this percentage will produce an equivalent CO2 auction-revenues amount for the RES special account, remunerating producers, as a result of the higher CO2 emission prices. In addition, the Green Fund will receive its amount as normal.

Following these deductions, it is estimated that a 150 million-euro amount will be left over for the new Energy Transition Fund, which, over time, is expected to gain further amounts from other sources such as the Just Transition Fund and the state budget.

Energy minister Kostas Skrekas will offer more details on the new fund, including its operational specifics, today, the Prime Minister noted during yesterday’s announcement.

Rising wholesale electricity prices, pushed up by a combination of factors in international markets, are seen increasing energy costs for consumers by as much as 40 percent, which has prompted the need for government action.

Bolstered electricity cost coverage for low-income groups

Posted on September 6, 2021September 6, 2021 by admin

The government is making efforts to offer low-income households greater protection against exorbitant price rises in the electricity market, which are being driven by an unfavorable combination of factors, internationally.

The energy ministry and RAE, the Regulatory Authority for Energy, have forwarded a proposal to the Prime Minister’s office for an increased discount to vulnerable households through the Social Residential Tariff (KOT) subsidy program.

Through KOT subsidies, eligible households currently receive electricity tariff discounts of between 45 and 60 percent, depending on their income levels, property assets and electricity consumption levels.

According to energypress sources, the proposal forwarded by the energy ministry and RAE calls for a further increase in these KOT-related discount rates, which would offset any electricity price rises.

The KOT program is funded by public service compensation (YKO) surcharges included in electricity bills. However, the latest YKO amount will be lower as a result of a big dip in oil prices last year.

The energy ministry is seen covering this gap by using some of the funds raised through CO2 emission right auctions.

CO2 emission right auction revenues for this year are expected to reach 90 million euros. A 60 percent portion is, by law, channeled into the RES special account, while the distribution of the remaining 40 percent is determined through ministerial decisions reached each year.

New RES a/c to support 6.5 GW, average price €12.7/MWh

Posted on August 25, 2021August 25, 2021 by admin

The new RES special account, a forthcoming addition to the existing account that will take on projects operating since January, 2021, is projected to support a RES portfolio with a total operating capacity of 6,546 MW, according to the existing account’s revision plan.

This projection will be used to estimate the new RES special account’s outflow and, as a result, the amounts that will need to be contributed by consumers through a new RES-supporting Dynamic Renewable Charge (DRC).

As previously reported by energypress, the DRC will be covered by electricity suppliers – in proportion to their market shares – and then passed on to their customers.

New mixed RES auctions planned for 2021 to 2024 are expected to provide feed-in premium tariffs for new projects with a total capacity of 2,800 MW.

Remuneration for RES production through the new RES special account is seen averaging 12.7 euros per MWh.

RES special a/c split into two to protect producer revenues

Posted on August 23, 2021August 23, 2021 by admin

RES special account revisions designed by the energy ministry to ensure new revenue sources and long-term remuneration protection for renewable energy producers will divide the account into two, an old and a new RES special account, made possible by 202 million euros in support stemming from the recovery fund.

A new and exclusive revenue source, the Dynamic Renewable Charge (DRC), will be exclusively channeled into the new RES special account. Revenues to be generated by this surcharge will be paid by electricity suppliers – in proportion to their market shares – to RES market operator DAPEEP and then passed on to their customers.

As for the old RES special account, existing revenue sources such as the ETMEAR surcharge included in electricity bills, as well as a green surcharge of 0.03 cents per liter imposed on auto diesel fuel, will be maintained.

In addition, the old RES special account will be offered protection through a formula balancing any fluctuations of the Public Service Compensation (YKO) surcharge included in electricity bills and the ETMEAR surcharge.

The new RES special account will include projects operating since January, 2021, while all previous RES units will continue being remunerated through the old RES special account.

New RES special account revenues through green certificates mid-’22

Posted on August 11, 2021August 11, 2021 by admin

The RES special account is expected to begin receiving new revenues, through green certificates, midway through 2022 when auctions for energy source guarentees are planned to be launched, according to Greece’s Recovery and Resilience Facility (RRF) plan.

The establishment of this new trading system for green certificates, by DAPEEP, the RES market operator, is part of a wider restructuring of the RES special account. The initiative will make available 202 million euros in subsidies, through the RRF, for projects launched from January 1, 2021 onwards.

The aim of the trading system will be to enable consumers to voluntarily support RES electricity by selecting green electricity supply contracts. DAPEEP, to operate the system, will hold auctions through which electricity suppliers will obtain Guarantee of Origin certificates to offer green tariffs to their customers.

‘PPC payments have totaled €1.3bn over past 2 years, €270m for RES a/c’

Posted on July 7, 2021July 7, 2021 by admin

Power utility PPC’s payments over the past two years have totaled 1.341 billion euros, reducing amounts owed to banks, suppliers and the RES special account, executive Giorgos Stassis has informed parliament’s Standing Committee on Production and Trade.

The power utility’s current administration assumed control of the company in August, 2019 with a cash flow deficit of one billion euros and a further one billion euros in debt to third parties, the chief executive told the committee.

More specifically, PPC, over the past two years, has made payments totaling 435 million euros to suppliers, 636 million euros to reduce bank debt, and a further 270 million euros for the reduction of outstanding amounts owed to the RES special account, Stassis informed.

Responding to criticism from the main opposition party Syriza over excessive profit levels at PPC, the CEO underlined that the power utility must have an operating profit of at least one billion euros, a level enabling the company to possess cash amounts needed for the development of its investment plan, focused on renewable energy.

RES investments represent the only solution for Greece to reduce its dependency on fuel imports and strengthen its level of competitiveness, Stassis added.

Energy transition goals need to be achieved for RRF funds

Posted on June 18, 2021June 18, 2021 by admin

The provision of EU Recovery and Resilience Facility funds for Greece, totaling over 6 billion euros, will depend on the progress of milestones set for various energy transition projects.

These projects, listed in a 288-page report just endorsed by the European Commission, include the Cyclades grid interconnections; restructured RES special account; energy storage projects, such as a pumped storage station planned for Amfilohia, northwestern Greece; transformation of lignite facilities; modernization of distribution network operator DEDDIE/HEDNO’s networks; as well as energy-efficiency upgrades of 105,000 residencies by 2025 for energy savings averaging at least 30 percent.

RRF funds for the country’s national recovery plan, dubbed Greece 2.0, will be subject to European Commission approval, which will depend on the progress made along the aforementioned fronts.

The country’s ministries, including the energy ministry, must now set about making all needed revisions and interventions to ensure these RRF funds come through for Greece.

ETMEAR adjusting mechanism seen for RES account revisions

Posted on June 18, 2021June 18, 2021 by admin

Besides the RES special account’s split into two sections, dividing old and new activity, revisions proposed by the European Commission, for its approval of a recovery-fund injection worth 202 million euros into the account, include the adoption of a mechanism adjusting regulatory fees paid by consumers, the intention being to cover any possible deficits for either of the account’s two sections.

It appears this new mechanism will be applied to adjust, as needed, the RES-supporting ETMEAR surcharge included in electricity bills.

At this stage, Brussels’ interventions concerning the revenue sources of the old and new RES special accounts serve more as a guideline than a proposal that is ready to be implemented, energy ministry sources said.

Other revisions for the RES special account’s restructuring have already been introduced, including a carbon tax on auto diesel as well as an extraordinary Covid-19 fee for RES producers and suppliers, for a one-year duration.

The 202 million-euro support amount from the recovery fund is expected to be injected into the RES special account in portions over a four-year period.

Operator ups RES special a/c surplus forecast to €172m

Posted on June 1, 2021June 1, 2021 by admin

RES market operator DAPEEP has projected a considerably wider RES special account surplus of 172.23 million euros for the end of 2021 in a latest monthly report factoring in market data up to March.

The operator’s previous report, covering data up until the end of February, had forecast a RES special account surplus of 117.49 million euros.

The increased RES special account surplus now forecast by the operator has been attributed to projections for even higher CO2 emission right prices during the year as well as higher day-ahead market clearing prices.

The latest DAPEEP forecast for the RES special account bases its calculations on a CO2 emissions right price average of 45 euros per ton, up from 42 euros per ton a month earlier.

The day-ahead market clearing price was also increased to 58 euros per MWh from the previous month’s 56 euros per MWh, by the operator for its latest RES special account forecast.

Taking into account a 70 million-euro safety reserve amount deducted for security against extraordinary circumstances, the RES special account’s net surplus at the end of 2021 is forecast to reach 102.23 million euros.

The 172.23 million-euro gross surplus includes 25 million euros anticipated from RES producer certificate surcharge revenue as well as 92 million euros from a green surcharge imposed on auto diesel.

Older solar park upgrades to be stopped, burdening RES special a/c

Posted on May 19, 2021May 19, 2021 by admin

The energy ministry appears set to introduce measures discouraging upgrades of existing RES facilities operated by early-bird investors, who enjoy elevated tariffs for their output through older contracts with 20-year durations, their objective being to further boost production and earnings through the upgrades.

Some early-bird RES investors are making the most of a sharp price drop for new-technology solar panels offering far greater production potential, to fully upgrade their solar parks, energy ministry officials have observed.

Investors, in other words, are willing to purchase RES facilities for a second time and enjoy greater output for the remainder of their 20-year contracts signed with DAPEEP, the RES market operator.

The development is burdening the RES special account, from which producers are remunerated, as far greater energy quantities produced by revamped solar energy parks are being rewarded unrealistic tariffs, given the current market conditions shaping new tariff levels.

According to sources, energy minister Kostas Skrekas has warmly received recommendations by subordinates on the introduction of grid absorption limits for electricity amounts drawn from solar energy parks.

The plan entails implementing limits based on market data concerning solar parks prior to their technological upgrades.

Related measures could be imminent given the minister’s positive stance to the recommendations.

CO2 emission right price hits new record high of €47.11/ton

Posted on April 27, 2021April 28, 2021 by admin

CO2 emission right prices, continuing their surge to reach a new record level of 47.11 euros per ton in trading yesterday, are prompting new conditions in the wholesale electricity market that further increase the operating cost of power utility PPC’s lignite-fired power stations, while, on the other hand, boost the revenue potential for the RES special account, used to remunerate RES producers.

Analysts have forecast even higher CO2 emission right prices, which, they believe, will stabilize at a level of no less than 45 to 50 euros per ton in the short term.

At the current CO2 emission right price level, the purchasing cost for every MWh of lignite-fired generation produced by PPC exceeds 70 euros.

On the other hand, besides boosting the revenue potential for the RES special account, this CO2 emission right price rise also promises to widen its surplus.

A 78 percent total of earnings hailing from CO2 emission right auctions is injected into the RES special account.

RES market operator DAPEEP plans to auction off a total of 20.86 million CO2 emission right units in 2021.

The operator has based the year’s RES special account revenue calculations on a CO2 emission right price of 37.45 euros per ton, a level that would rake in some 609 million euros for the account.

The latest CO2 emission right price rise, to 47.11 euros per ton, would provide 765 million euros for the RES special account this year, an additional 156 million euros.

RES special a/c surplus over €100m, boosted by higher CO2 prices

Posted on April 13, 2021April 13, 2021 by admin

The RES special account is expected to reach a surplus of more than 100 million euros this year as a result of an increase in the price of CO2 emission rights, now exceeding 44 euros per ton.

A 78 percent share of revenue generated through CO2 emission rights purchases by various industrial producers is injected into the RES special account. A legislative revision still needs to be ratified for this percentage figure to also apply in 2021.

DAPEEP, the RES market operator, plans to auction a total of 20.86 million units this year, the country’s share.

The operator’s most recent RES special account forecast sees an end-of-year surplus of 11.07 million euros, based on a CO2 emission price of 37.45 euros per ton, well under the current trading price level of 44.5 euros per ton.

Given the latest price level, the CO2 emission rights to be auctioned would generate total revenue of 928 million euros, of which 723 million euros, or 78 percent, will be injected into the RES special account.

This results in an additional amount of 114 million euros for the RES special account, based on the current CO2 emission price level. The extra revenue for the account could end up being as much as 150 million euros if projections by the vast majority of analysts, seeing a further rise in the CO2 emission price, are proven true.

The RES special account struggled in 2020 as a result of plunging CO2 emission right prices during the pandemic, down to as low as 17 euros per ton.

DAPEEP now anticipates greater cash inflow for the RES special account, noted Yiannis Giarentis, the operator’s head official. The price surge should create a considerable safety net for the account, he added.

Ministry, eyeing RRF support, proposes RES account split

Posted on April 5, 2021April 5, 2021 by admin

A new energy ministry proposal seeking 202 million euros in financial support for the RES special account through the EU’s Recovery and Resilience Facility entails the establishment of two such accounts, one covering existing projects connected up until the end of 2020, the other, new projects linked as of 2021.

The existing RES account, facing deficit pressure, would continue remunerating projects connected up until the end of last year, sparing it of the responsibility of financially supporting new projects, while the new RES account would be the exclusive beneficiary of the 202 million-euro RRF injection, according to the plan.

All existing RES account support tools, such as the ETMEAR surcharge included in electricity bills, would continue being injected into the old RES special account, the plan envisages.

The ministry’s split plan appears to stem from the fact that RRF support for the sake of merely covering the existing RES special account’s deficit would not be permitted by the European Commission, whereas, on the contrary, resorting to the RRF to facilitate the RES sector’s further penetration of the energy mx is seen as feasible.

Besides the 202 million-euro RRF injection, the new RES special account for new projects would also benefit from funds generated by the day-ahead market, according to the plan. The introduction of a new surcharge for this account cannot be ruled out.

Renewable energy market players have expressed unease about the plan’s ability to keep both RES special accounts balanced, crucial for the sustainability of old and new investments.

Special terms for RES special account’s recovery fund support

Posted on March 30, 2021March 30, 2021 by admin

An energy ministry request for European Commission Recovery and Resilience Facility support worth 200 million euros for the country’s RES special account, facing deficit territory, has been included in the national RRF plan, but special terms will need to apply as Brussels has not accepted a Greek argument citing the pandemic as the main cause of the account’s deficit issues.

Despite Brussels’ initial objections to Greece’s RRF inclusion of support for the RES special account, the case remains open and is being discussed by the two sides.

The likelihood of Brussels accepting Greece’s bid is believed to be improving as these talks progress.

Officials are currently seeking to determine the extent of the RES special account and impact of new renewable energy projects to be connected to the grid this year before a support sum is set, sources informed.

It remains unclear if a proposal, already tabled, to split the RES special account into two, one covering up to 2021 and the other beyond, can be adopted, the sources added.