Greek spot power market launch to be delayed to 4Q

The Greek energy ministry is expected to postpone the launch of the day-ahead power market to the fourth quarter from the current target of 17 September, owing to ongoing technical issues, market participants said.

The spot market could now be introduced on 1 November as participants, including market-maker state-owned utility PPC, have requested additional preparation time, saying dry runs ahead of the launch are not long enough. Dry runs were initially planned to be held on 3-31 August under regulator RAE's plans but were already extended by a week to today.

Grid operator Admie only recently introduced a new algorithm on the functioning of the balancing market, which requires a lengthy review, participants said. RAE today launched a public consultation on the matter, along with other issues regarding the day-ahead and intraday markets. It is expected to run until 11 September.

And prices obtained in dry runs have yet to converge with those in the existing day-ahead pool, whereas the onboarding of trading firms to the new platform has not been completed, participants added.

The launch of the Greek day-ahead market has faced repeated delays in the past year and was most recently pushed back from August. This was also a delay from a previous target of 30 June as US engineering firm GE, which helped to set up the balancing platform, halted work because of Covid-19.

Market coupling on the Greece-Italy border was postponed in April to the first quarter of 2021 rather than the fourth quarter of this year and could face a new delay in line with a later spot market launch. The introduction of day-ahead and intraday trading is a prerequisite for market coupling on the border.

By Bilal Muftuoglu