The now known target model, namely the model with which the domestic market operates, has been often accused of producing high for consumers. Both within and outside our country, there are voices calling for the architecture of the electricity market to be radically revised in order for the low prices with which RES produce energy to enter retail. However, a key element of target model appears to be unable to change: The so-called marginal pricing under which the most expensive unit each hour sets the price for all others. This option was made in order to have the maximum incentive to invest in cheap sources, such as wind and photovoltaic. For its part, RIS recently reported in response to the House that “the basic structure of the European market, which provides for marginal pricing, there is no realistic possibility of changing in the near future.” After all, he stresses the ministry, the same model exists in cheap countries like Portugal, so there is no cause for the problem. On the other hand, RIS considers as key reasons that Greece has been behind for over a decade in investment in RES, making poor investments in lignite (Ptolemaida 5) and has relied too much on natural gas. Looking forward, the government considers it realistic to push for individual changes, which will lead to a correction of Target Model errors – as has been the case in recent times when a cut off electric island is created in Southeast Europe. This is exactly what RIS is discussing with the Commission, with a view to implementing a new mechanism within 2025 that will normalise the situation. Having allies in the other countries of our region, the issue is now well placed on the agenda of the new Commission and it remains to be seen the form that this mechanism can take.
Ministry of Energy: What does not change the current market model and what can be corrected
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