Greece’s transitional flexibility mechanism proposal, currently being reviewed by RAE, the the Regulatory Authority for Energy, and likely to be finalized within the next few days, is acquiring shape.
Following up on European Commission advice, the authority has requested and received additional details from, IPTO, the power grid operator, for two models to be proposed.
The first of these, offering producers three hours notice, will require roughly 1,600 MW. The second, giving producers a one-hour notice, will require a capacity of between 2,500 and 2,600 MW.
According to sources, IPTO has not ruled out either of these two products but has shown a preference for the latter, believing it could be implemented with greater ease and prove more functional.
RAE now needs to decide whether it will consult market officials before announcing its finalized proposal or directly deliver a decision to the energy ministry. If it chooses the latter, it remains to be seen if this decision will only concern the first of the two models, used in the past, or both.
The transitional flexibility mechanism needs to be delivered to the European Commission by September, along with pre-notification of a plan for a permanent mechanism.
The country’s previous mechanism expired in April, leaving electricity producers without CAT payments for their output.