Reforestation plan spells trouble for RES special account deficit

Posted on September 19, 2023September 19, 2023 by admin

If a substantial portion of CO2 emission right revenues, which are an important source of income for the RES special account, is diverted to the government’s reforestation effort at areas burnt during last summer’s fires, an option being considered by the energy ministry, according to ministry sources, then this would seriously set back the administration’s efforts to cover the RES special account’s deficit.

CO2 emission right revenues represent a key tool in helping keep this account balanced. Prior to the energy crisis, the overwhelming majority of CO2 emission right revenues raised at auction were injected into the RES special account, but have since been redistributed, leaving the account with just a 3.7 percent share.

Any new change in the distribution of CO2 emission right revenues would require a ministerial decision.

Making things even trickier for the RES special account’s financial standing, the government, sources noted, does not intend to increase a RES-supporting ETMEAR surcharge included in electricity bills.

Tax revenues generated by a green tax on auto diesel, estimated to reach 100 million euros in 2023, would help the RES special account’s standing. RES market operator DAPEEP, managing the RES special account, has yet to factor this sum into its calculations. Its injection into the RES special account would certainly help significantly reduce the account’s anticipated deficit, projected to reach 222 million euros at the end of 2023.

As another means of support for the RES special account, DAPEEP could also recover funds from medium-voltage enterprises that were excluded from a reduced ETMEAR rate for businesses yet, ultimately, continued paying a lower rate.

Between 2019 and 2021, enterprises in question continued being charged an ETMEAR rate of 8.78 euros per MWh, based on a preceding formula, but should have been paying, as of January 1, 2019, a rate of 17 euros per MWh.

RES market players propose measures to counter a/c deficit

Posted on September 5, 2023September 5, 2023 by admin

Market officials, responding to a latest report from RES market operator DAPEEP that has projected a further widening of the RES special account’s deficit, have proposed a three-part strategy which they believe could restore the account’s sustainability.

The RES special account has been split into two sub-accounts, one containing RES projects active prior to January 1, 2021, the other containing newer RES projects launched beyond this date.

It is the RES special sub-account containing older projects that has raised sustainability concerns as its deficit has reached 222 million euros, a figure expected to widen, according to the DAPEEP report. The RES sub-account containing newer projects currently has a surplus of 114 million euros.

Market officials, as a first step, believe the two sub-accounts should be unified, noting such an initiative would restrict the resulting single RES special account’s overall deficit to 107 million euros by the end of 2023, based on latest financial data.

As a follow-up step, should the RES special account continue to be in deficit territory following its unification, market players have proposed a greater injection of funds from the market, a remedy that could be made possible by elevating a RES revenues upper limit, currently set at 85 euros per MWh.

A third measure, should the previous two prove insufficient, would entail increasing CO2 emission auction money injected into the RES special account, currently just 3.7 percent of auction revenues.

Early end to wholesale price cap possible, minister suggests

Posted on July 31, 2023July 31, 2023 by admin

The energy ministry is leaving open the possibility of lifting a revenue recovery mechanism, or price cap, in the wholesale electricity market before December 31, when the validity of all other emergency measures is expected to expire.

The situation in the international energy markets will be assessed over the coming months and the necessity of the wholesale price cap will be decided accordingly, energy minister Theodoros Skylakakis noted in a latest announcement.

Electricity producers are pushing for an end to the wholesale market price cap before December 31, noting the price cap is distorting the market, according to sources.

In addition, electricity producers, who have presented their cases to the energy ministry, have noted that retail electricity subsidies, if needed as a result of any new price rally, could be provided by the RES special account.

As things stand, electricity retailers will continue pricing their electricity as they have done over the past year or so, when emergency measures were introduced, by announcing each forthcoming month’s price levels on the 20^th of each preceding month.

Ministry gauging RES account impact of measures extension

Posted on July 27, 2023July 27, 2023 by admin

The energy ministry has requested RES market operator DAPEEP to provide substantiated data concerning the impact of the energy market’s emergency measures on the RES special account, overseen by the operator, energypress sources have informed.

The energy ministry made this request as it wants to calculate, with precision, the financial impact on the RES special account if one of the emergency measures, a wholesale electricity market price cap, limiting the account’s cash inflow, is extended until the end of the year.

According to current legislation, the energy market’s emergency measures, including the wholesale electricity market price cap, are scheduled to end on October 1, but latest developments suggest these could be extended until the end of December.

Market officials estimate that the wholesale electricity market price cap is depriving the RES special account of approximately 30 million euros per month.

RAAEY, the Regulatory Authority for Waste, Energy and Water, has also requested an official assessment of the RES special account’s course, based on latest data, from DAPEEP, energypress sources noted.

A most recent DAPEEP report, for the year’s first quarter, forecast a deficit of 222.22 million euros at the end of 2023 for the RES special account’s sub-account of old projects and a surplus of 114.38 million euros for a sub-account of new projects.

Emergency support measures could be extended into 2024

Posted on July 14, 2023July 14, 2023 by admin

EU authorities have once again reminded member states that they will need to bring their emergency electricity market measures to an end, but, in doing so, have left open the possibility for a slightly delayed termination.

Although it has become widely known that the electricity market’s emergency measures around the EU would need to be terminated this year, a new Eurogroup announcement notes that measures should be lifted “as soon as possible in 2023 and 2024”.

“In the absence of new energy price shocks in the eurozone area, we will try to limit energy support measures, using the savings to reduce budget deficits, as soon as possible in 2023 and 2024,” the eurozone’s finance ministers noted in a Eurogroup statement.

It is the first time 2024 has been mentioned in an EU text as a possible withdrawal year for emergency measures implemented by member states during the energy crisis. Last month, the EU had announced these measures should not be extended beyond December, 2023.

It remains unclear if this more lenient approach is the result of requests made by some member states and how it could impact the return of electricity tariffs to normality as well as new products being planned by suppliers.

Asked to comment on this latest Eurogroup announcement, Greek energy ministry sources noted that capacity for intervention exists if needed.

This, however, does not mean that a Greek state budget reserve will be maintained to subsidize electricity bills. Such a prospect has already been ruled out. Even so, energy consumers will not be left unprotected should a new crisis break out, the sources said.

RES special account surplus money could be resorted to if natural gas prices rise sharply again and subsequently push electricity prices higher, the ministry officials noted.

Greece’s RES special account ended 2022 with a 219 million-euro surplus for older projects, while a sub-account carved out for newer projects launched from January 1, 2021 onwards, ended last year with a surplus of 88.31 million euros, taking the account’s overall total to 307 million euros.

RRF funds intended for RES special account redirected

Posted on March 3, 2023March 3, 2023 by admin

The finance ministry has reached a decision to redirect a 202 million-euro amount of Recovery and Resilience Facility (RRF) funds that had been intended for the RES special account’s sub-account supporting new RES projects – defined as those electrified from January 1, 2021, onwards – to cover other needs as a result of a reversal of forecasts brought about by the energy crisis.

As previously reported by energypress, the finance ministry began thinking about not proceeding with its planned 202 million-euro injection of RRF funds into the RES special account late in 2022.

Since then, the finance ministry has committed this amount to other investments. The ministry’s original decision to inject RRF funds into the RES special account’s sub-account for new projects was based on 2019 data. However, the ensuing surge in wholesale electricity prices prompted by the energy crisis has prevented any chance of a RES special account deficit in the coming years.

Market players have called for a transfer of surplus amounts from the new RES sub-account to the RES special account remunerating older projects. Latest data indicates the RES special account will end 2023 with a deficit worth tens of millions of euros, whereas its new sub-account for new projects will end the year with a surplus of at least 100 million euros.

The country’s revised RRF plan will be linked to Greece 2.0 program revisions resulting in the addition of new actions for the allocation of an additional 769 million euros the country is entitled to from the REPowerEU program.

Though EU member states have until the end of August to submit their revised National Recovery and Resilience Plans, the European Commission is urging member states to submit their revised plans by the end of April.

Extra €100m in support funds for energy storage installations

Posted on February 14, 2023February 14, 2023 by admin

The energy ministry intends to make available an additional 100 million-euro sum in investment support for energy storage units, the aim being to further boost the first wave of such installations in Greece as a means of supporting even deeper RES penetration into the energy mix.

A sum of 200 million euros stemming from the Recovery and Resilience Facility (RRF) is already planned to be made available as support for energy storage unit installations representing a total capacity of approximately 700 MW.

The extra 100 million-euro sum, to most likely stem from an alternative funding source, is expected to pave the way for additional energy storage projects representing about 400 MW, which would take this technology’s portfolio to a capacity of over 1,000 MW.

The REPowerEU facility is being examined as a first funding source alternative for the 100 million-euro sum, sources informed. So, too, is the RES special account.

Greece is entitled to an additional 769 million euros from the European Commission’s REPowerEU facility, based on how its sum will be distributed to EU member states.

Projects to be eligible for financing through the REPowerEU facility are expected to be finalized in the coming weeks.

RES-supporting surcharge same in ’23 but relook possible

Posted on December 30, 2022December 30, 2022 by admin

A recent decision reached by RAE, the Regulatory Authority for Energy, to maintain, in 2023, a RES-supporting surcharge included in electricity bills at 17 euros per MWh was based on two key factors, firstly, calculations and projections by DAPEEP, the RES market operator, of surplus figures for the RES special account in 2023 and, secondly, high energy costs already faced by consumers.

DAPEEP’s favorable projections for the RES special account in 2023 do not raise any sustainability concerns, but RAE may still need to reassess the situation during the new year as a result of the volatility and uncertainty that have troubled the energy sector all over Europe since autumn 2021, as a result of Russia’s war on Ukraine.

RAE fears factors such as the day-ahead market’s clearing price and CO2 emission right price levels could change in the months ahead and invalidate the RES special account projections and calculations made by DAPEEP for 2023.

According to DAPEEP’s calculations, the RES-supporting ETMEAR sum is estimated to reach 572.5 million euros in 2022 and 605 million euros in 2023, based on a surcharge rate of 17 euros per MWh for both years.

Also, the operator has estimated CO2 emission right injections into the RES special account at 50.08 million euros in 2022 and 65.31 million euros in 2023.

RRF funds planned for RES special account redirected

Posted on December 29, 2022December 29, 2022 by admin

The finance ministry plans to redirect a 202 million-euro amount of Recovery and Resilience Facility (RRF) funds that had been intended for the RES special account to cover other needs as a result of a reversal of forecasts brought about by the energy crisis.

This RRF money was originally planned as support money for new RES projects electrified from January 1, 2021 onwards, based on forecasts made in 2019, prior to the outbreak of the energy crisis.

The finance ministry is now considering to redirect these RRF funds for other investments as a projected deficit of the RES special account’s new sub-account for new projects did not come about and any possibility of this occurring in the next few years has been ruled out, energypress sources have informed.

However, if the funds are redirected, safety measures will be adopted to ensure the RES special account’s new sub-account remains sustainable under any circumstances, the sources added.

According to a latest report published by DAPEEP, the RES market operator, the RES special account’s sub-account for new projects will end 2022 with a surplus of 91.41 million euros, which will increase to 131.25 million euros by the end of 2023.

RES-supporting surcharge unchanged at €17/MWh in ’23

Posted on December 23, 2022December 23, 2022 by admin

A RES-supporting surcharge included in electricity bills will remain unchanged at 17 euros per MWh in 2023, RAE, the Regulatory Authority for Energy, has decided, following an energy ministry decision to inject into the RES special account a sum of 100.5 million euros raised by a green tax on diesel and an equivalent sum in 2023.

This double injection of approximately 200 million euros is expected to just about balance the RES special account at the end of 2023, when a minor deficit of 2.56 million euros has been forecast.

CO2 auction revenue up 30% in 2022, €1bn for transition fund

Posted on December 21, 2022December 21, 2022 by admin

Carbon emission right auction revenues reached a sum of 1.329 billion euros in 2022, up approximately 30 percent compared to the previous year, when they reached a total of 1.014 billion euros.

DAPEEP, the RES market operator, recently completed allocating the year’s sum, based on percentages included in a related ministerial decision, energypress sources informed.

The Energy Transition Fund was given the lion’s share, an amount of 1.025 billion euros. At the other end, the RES special account was given a 3.8 percent share totaling 50 million euros.

The remaining amount, 251 million euros, covers all other planned funding. An 11 percent share of the year’s carbon emission right auction revenues was allocated for aid to enterprises active in sectors and sub-sectors exposed to significant risk as a result of carbon leakage.

A 4.5 percent share was allocated to the Green Fund to finance actions for the development of sustainable economic activities with a low carbon and environmental footprint.

A 1.5 percent share of the auction revenues will be used to fund initiatives promoting the emerging electromobility sector.

A 0.6 percent share was allocated to the Natural Environment and Climate Change Agency (NECCA/OFYPEKA).

RES special a/c injection of €100.5m to avoid surcharge hike

Posted on December 16, 2022December 16, 2022 by admin

A new legislative provision for the transfer, into the RES special account, of a 100.5 million-euro sum raised by a carbon tax imposed on diesel has been interpreted by market officials as an initial measure taken by authorities so that an increase of a RES-supporting ETMEAR surcharge included in electricity bills can be avoided.

Fears of the RES special account’s return to deficit territory have raised concerns at RAE, the Regulatory Authority for Energy, which has relayed its unease to the energy ministry and DAPEEP, the RES market operator, energypress sources informed.

RAE, needing to decide on the RES-supporting ETMEAR surcharge level for 2023 by the end of December, has asked the energy ministry for an update on any possible related action.

The imposition, in August, of a price cap at 85 euros per MWh on RES producers has begun nibbling away at the RES special account’s surplus. This unfavorable development has been confirmed by a DAPEEP report, just released, for July and August.

The RES special account recorded a deficit of 51.11 million euros in August, when the price cap on green energy producers was imposed, the DAPEEP report showed.

The operator has projected more monthly deficits until the end of the year. It forecasts a deficit of 47.18 million euros in September, 41.06 million euros in October, 17.92 million euros in November, and 8.86 million euros in December.

However, an accumulated surplus of 447.57 million euros up until August will enable the RES special account to end the year with a surplus of 134.44 million euros, according to DAPEEP.

RES-supporting ETMEAR surcharge hike possible

Posted on December 12, 2022 by admin

RES market operator DAPEEP projects, based on its calculations, a monthly deficit of between 30 and 35 million euros for the RES special account, which if sustained through 2023, will result in an end-of-year deficit in excess of 200 million euros.

This unfavorable prospect has troubled RAE, the Regulatory Authority for Energy, which, according to sources, expressed its concerns to the energy ministry and DAPEEP, requesting both to consider taking measures.

RAE has asked the ministry for an update on whether it intends to make any revisions that could boost the RES special account’s revenue, such as raising a recently implemented price cap on older RES units (85 euros per MWh) or carving out a greater share of CO2 emission right auction fees for the RES special account.

This information will enable RAE to decide if a RES-supporting ETMEAR surcharge included in electricity bills will need to be increased. RAE is required to decide on the ETMEAR level by the end of the year.

Producer windfall profit tax sum for subsidies at €371m

Posted on July 25, 2022July 25, 2022 by admin

A newly introduced extraordinary tax on windfall profits of electricity producers has, so far, resulted in a collection of 371 million euros since its introduction 16 days ago, to help fund the government’s energy subsidies effort through the Energy Transition Fund.

The extraordinary windfall profit tax is generating tax revenue at an average of 23 million euros per day, a rate which, if maintained throughout July, will result in a sum of more than 500 million euros by the end of this month.

The 371 million-euro amount is not all fresh money for the subsidies as a fraction of this total represents excess-tariff money from renewables that would have been injected into the RES special account and, by extension, the Energy Transition Fund.

However, a 166 million-euro windfall profit tax amount accumulated from natural gas and lignite-fired electricity production units and hydropower units is all fresh money – 79 million euros, 44 million euros and 43 million euros, respectively.

Meanwhile, the recent implementation of an 85 euros per MWh price cap on RES producers, part of the government’s energy-crisis measures, will, according to energypress sources, deprive the RES special account of between 30 and 40 million euros, monthly.

Authorities are monitoring the RES special account to ensure it does not fall into deficit territory.

RAE exploring ETMEAR surcharge cut for consumers

Posted on July 8, 2022July 11, 2022 by admin

RAE, the Regulatory Authority for Energy, wants to examine if any leeway exists for a reduction of the RES-supporting ETMEAR surcharge included in electricity bills.

The authority’s president, Athanasios Dagoumas, has forwarded a letter to the energy ministry requesting an official update on the RES special account’s surplus level at present as the most recent update offered by RES market operator DAPEEP covered the year’s first quarter.

The RAE official also asked to be informed on any possible transfers of RES special account surplus money for other uses, which would be factored into the authority’s calculations examining the possibility of an ETMEAR surcharge reduction for consumers.

RAE has regained authority to set ETMEAR levels after the task had been transferred to the energy ministry for two years.

Rather than use RES special account surplus money to reduce the ETMEAR surcharge for consumers, the government has, so far, preferred to transfer excess money to the Energy Transition Fund to finance energy subsidies offered to households and businesses.

Two amounts have been transferred from the RES special account to the Energy Transition Fund this year, a 780 million-euro sum in March, followed, just days ago, by 320 million euros.

DAPEEP has forecast a 1.55 billion-euro surplus for the end of 2022, based on first-quarter figures. A forecast revision is expected as market conditions have changed drastically in recent months.

RES special account revisions for new RES project, energy storage support

Posted on April 12, 2022April 12, 2022 by admin

The energy ministry is preparing amendments to restructure the RES special account and create two new sub-accounts that will offer support for new RES projects and energy storage facilities.

These amendments, incorporating a series of EU directives, will lead to the establishment of a remuneration framework for energy storage units, based on a feed-in premium model, as has been previously reported by energypress.

The amendments will also create a new RES sub-account for support to new RES projects, defined as projects launched from January 1, 2021 onwards.

The establishment of a new RES sub-account supporting new RES projects has been set as a condition if the existing RES special account is to receive a 202 million-euro boost through the Recovery and Resilience Facility.

The procedure is expected to be completed by June, so that this amount can be made available for the RES special account, sources at the energy ministry have informed.

RES special account €935m injection from excess RES producer earnings

Posted on April 7, 2022April 7, 2022 by admin

Authorities are considering to shorten the time period given to RES producers with feed-in premium agreements to redirect, to the RES special account, any excess amounts earned through day-ahead market activity.

These excess earnings are considered to be any amounts generated by prices exceeding reference prices used to establish remuneration deals.

At present, RES producers with feed-in premium agreements have 60 days to return excess earnings to the RES special account, but this period could be halved as wholesale market-related earnings are paid to producers by the energy exchange on a weekly basis.

Swifter returns of excess earnings by RES producers with feed-in premium agreements promise to create greater capacity for various support measures, including electricity subsidies, offered through the RES special account.

Excess RES producer earnings for November and December, 2021 totaled 935.5 million euros, according to official data released just days ago by RES market operator DAPEEP.

The RES special account surplus is expected to reach 2.495 billion euros at the end of the year, DAPEEP has projected.

A total of 780 million euros from the RES special account has already been made available this year for electricity bill subsidies. This sum is expected to be transferred to the Energy Transition Fund, backing subsidy packages, by May.

RES special account sum of €780m for energy subsidies in 5-month period

Posted on March 22, 2022March 22, 2022 by admin

RES special account contributions to the Energy Transition Fund, offering energy-crisis support to consumers in the form of subsidies, are expected to reach a sum of 780 million euros during the year’s first five-month period.

Besides helping contain wholesale electricity prices, the RES sector, at present, is the only electricity-generating technology whose windfall profits are being used to soften the energy crisis’ impact on consumers, RES sector officials have highlighted.

Though wholesale electricity prices have reached extremely high levels during the ongoing energy crisis, they would have been even higher had it not been for the support offered by the RES special account, RES sector officials have noted.

A recent study conducted by the Aristotle University of Thessaloniki showed that renewables have decreased day-ahead market price levels by 83.8 euros per MWh.

Public service compensation a/c surplus to fund subsidies

Posted on March 18, 2022March 18, 2022 by admin

Public service compensation (YKO) account surplus money will be added to the sources being used by the government to fund electricity and natural gas subsidies offered to consumers as energy-crisis support.

The government has decided to transfer 200 million euros from the public service compensation account to the Energy Transition Fund, providing the subsidy money.

The public service compensation account’s surplus resulted from savings made possible by recent island grid interconnection launches.

Surplus money from the RES special account and CO2 emission revenues have also been used by the government to fund its subsidy support offered to consumers.

The public service compensation (YKO) account ended 2021 with a 105 million-euro surplus, despite struggling with a 150 million-euro deficit mid-way through the year, Athanasios Dagoumas, president of RAE, the Regulatory Authority for Energy, informed earlier this year.

Suppliers being reimbursed for January, February subsidies

Posted on March 16, 2022March 16, 2022 by admin

Energy suppliers have begun receiving payments covering electricity and natural gas subsidies offered to consumers for January and February on behalf of the Greek State, sources have informed energypress. The amounts received so far total approximately 50 million euros and are being provided through the Energy Transition Fund, the sources added.

Reimbursements began being offered last week after RES market operator DAPEEP forwarded a related application form to suppliers requesting customer and respective subsidy details.

Suppliers are being swiftly reimbursed, even on the same day, when submitting this information, on a special template, the sources noted.

Some suppliers have yet to fill in the procedure’s template as they have needed to make IT revisions in order to forward information in the fashion requested by DAPEEP. All suppliers are expected to have submitted their templates to the operator within the next few days.

Once suppliers have been reimbursed for January and February subsidies, they will begin receiving payments for subsidies provided in March.

The government’s energy subsidy package for March, announced at the beginning of this week, remains unchanged, compared to February, meaning the subsidy program for the three-month period covering January to March is worth a sum of 999 million euros, 856 million euros for household and non-household electricity subsidies and the other 143 million euros for natural gas subsidies.

Highlighting the RES sector’s significant contribution to the government’s support measures for consumers, a sum of 780 million euros will be transferred from the RES special account to the Energy Transition Fund by May, the latest, for further subsidies, following a related ministerial decision.

Latest electricity, gas subsidy details expected next week

Posted on March 11, 2022March 11, 2022 by admin

The government is expected to announce, next week, the details of its latest energy subsidies program for household and business consumption in March, believed to be worth 350 million euros, the same amount that was offered for February, sources have informed.

Overall, the government’s latest support package is expected to offer household and business consumers subsidies worth over 700 million euros for electricity and natural gas bills covering March and April.

Greece’s wholesale electricity price averaged 221.71 euros per MWh in February, slightly below January’s average of 235 euros per MWh.

Households stand to each receive subsidies averaging 39 euros for March, virtually unchanged from the previous month, while businesses are seen receiving subsidies averaging 65 euros per MWh, also virtually unchanged.

Energy subsidies covering April are expected to be higher, possibly over 50 euros for households, while increases are also anticipated for businesses and farmers, sources informed.

During the first ten days of March, the wholesale electricity price averaged over 322 euros per MWh, 50 percent above the February average.

The money for the subsidies will be drawn from the Energy Transition Fund, fed by CO2 emission right revenues and the RES special account surplus, to soften the impact of the astonishing rise in electricity and natural gas prices.

However, officials remain concerned about the adequacy of this money given the volatility in the European energy market, triggered by Russia’s invasion of Ukraine.

Brussels calls for subsidy control, fearing RES special account deficit

Posted on February 25, 2022February 25, 2022 by admin

The European Commission has warned the Greek government to keep a close watch on electricity subsidies offered to consumers in order to avoid creating a RES special account deficit. The warning was included in a new Brussels report published during the week.

According to the report, electricity subsidies offered to consumers in Greece could reach as much as one billion euros by July, given the market’s wholesale electricity price developments.

As for other fronts, the Brussels report expects the sale of gas company DEPA Infrastructure, acquired by Italgas, Italy’s biggest natural gas distribution company and the third largest in Europe, to be completed by the end of April.

Final sale procedures are expected to be completed towards the end of March, enabling Italgas to make its payment, an amount of 733 million euros, by the end of April.

The Brussels report estimates binding bids for the privatization of a prospective underground natural gas storage facility (UGS) at the almost depleted natural gas field of “South Kavala” in the Aegean Sea’s north will be submitted by the end of May, ahead of the selection of a preferred bidder in July. A finalized contract is not expected before the end of the year.

A gas grid operator DESFA and GEK TERNA partnership, as well as Energean Oil & Gas, have advanced to the second round of the project’s tender, staged by TAIPED, offering contracts for the development and operation of the facility.

RES special account surplus for 2021 at €300m, higher than expected

Posted on February 11, 2022February 11, 2022 by admin

The RES special account ended 2021 with a surplus of 300 million euros, greater than had been forecast in the most recent report issued by RES market operator DAPEEP, covering August to October, energypress sources have informed.

The account’s 300 million-euro surplus includes a 70 million-euro safety reserve, meaning the net surplus works out to 230 million euros, still more-than-double the net surplus amount of 101.17 million euros that had been forecast by DAPEEP in its most recent report.

A drastic reduction in amounts owed by energy suppliers to the RES special account was a key factor behind the surplus boost. RES special account debt owed by suppliers, recently totaling 600 million euros, has now been virtually wiped out.

A mechanism has been implemented to trigger and facilitate the transfer of RES special account surplus amounts to the Energy Transition Fund.

The RES special account generates surplus amounts when day-ahead market prices exceed 85 euros per MWh, according to Athanasios Dagoumas, president of RAE, the Regulatory Authority for Energy.

According to the RAE chief, should wholesale electricity prices remain at the current level of 200 euros per MWh throughout the year, the RES special account’s cash injection into the Energy Transition Fund will amount to approximately one billion euros in 2022.

The Energy Transition Fund is expected to have at its disposal a total of two billion euros for consumer support polices assuming a further one billion euros is received from carbon emission right revenues.

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.