The target model’s launch over the weekend was successfully staged with a full field of 45 participating players, but wholesale electricity prices were pushed slightly higher.
Saturday’s day-ahead price for yesterday’s opening day ended at 53 euros per MWh before rising considerably to 61 euros per MWh yesterday for today.
This increase may be the result of a lack of confidence felt by players as they adjust to new market ways. In addition, the entry into the grid of high-cost lignite-fired power stations to cover telethermal systems is another factor.
Though producers, suppliers, traders and renewable energy players all actively traded for the target model’s launch, they have yet to fully come to terms with the new market conditions.
It is a matter of time before the model’s new markets – day-ahead, intraday, balancing – find their rhythm and price levels are normalized, energy sector authorities have noted.
No major issues concerning procedural or technical matters have been reported.
The intraday market launch was smooth. Prices ended at levels set by the day-ahead market as corrections were not made.
As for the balancing market, a brand new tool for the entire system, price levels ended as anticipated, at levels set during dry-run testing in the lead-up to the target model’s launch.
The target model, representing the Greek electricity market’s most significant reform, will enable market coupling with equivalent European markets, a development ultimately expected to reinforce energy security; offer consumers greater financial benefits through transboundary competition; prompt competitive pricing in the wholesale market; facilitate further RES penetration; and, by extension, hasten greenhouse gas emission reductions and the decarbonization effort.