weighted variable cost for conventional thermal power plants

Measures that would affect the RES special account’s cash inflow will not be implemented, but, on the contrary, account earnings will be boosted by increased takings from CO2 emission right auction revenues, highly ranked energy ministry officials have told energypress.

The officials offered this reassurance following an outcry by RES producers over a ministry intention to reduce a RES-supporting weighted variable cost for conventional thermal power plants.

The percentage to be withheld from CO2 emission right auction revenues for injection into the RES special account will be increased from the current level of 65 percent to 70 percent, the ministry sources noted.

This five percent increase will suffice to guarantee RES producers their payments for output despite an upcoming decrease of CO2 emission right quantities to be offered at auctions following a European Commission decision within the framework of the Market Stability Reserve, the ministry officials said. Greece stands to lose 4 million tons in CO2 rights.

RES producers have reacted against news of an energy ministry intention to reduce a weighted variable cost for conventional thermal power plants, a surcharge injected into the RES special account.

This surcharge accumulates an annual sum of approximately 60 million euros, vital for the RES special account and payments to RES producers.

This latest RES-supporting surcharge reduction plan follows a recent reduction of an ETMEAR surcharge paid by consumers through electricity bills, implemented to help offset tariff hikes at PPC, the state-controlled power utility.

The ETMEAR surcharge reduction will deprive the RES special account of roughly 200 million euros, annually, RAE (Regulatory Authority for Energy) official Nektaria Karakatsani has estimated.

The RES special account will also have to do without a further annual amount of roughly 60 million euros following a European Commission decision in July reducing CO2 emission right amounts available for auction. Greece must withdraw 4 million tons of CO2 emission rights.

RES producers fear these developments could prompt a RES special account regression into deficit territory and affect payments made by DAPEEP, the RES market operator, for their output.

A recent SPEF (Hellenic Association of Photovoltaic Energy Producers) study forwarded to deputy energy minister Gerassimos Thomas warns of difficult payment conditions ahead for RES producers as a result of looming RES special account problems.

weighted variable cost for conventional thermal power plants

Greater RES producer support from CO2 rights, ministry notes

New surcharge drop will affect payments, RES producers fear