Spring Brings Smiles to Electricity Prices but Headaches Due to Overproduction

Two major changes, one positive and one negative, are brought by spring to our country’s electricity market. The wholesale price has significantly dropped compared to winter, while renewable energy sources (RES) are producing large quantities that far exceed demand. Notably, over the past six days, prices on the Energy Exchange have fallen below 100 euros/MWh, compared to 154 euros in February. Consequently, consumers are expected to benefit in April from reduced charges for green and yellow electricity tariffs, which are restructured monthly. The drop in wholesale prices is due to increased RES production and reduced seasonal demand. Especially during midday hours, photovoltaic production drives prices nearly to zero for several hours. Demand averages around 5.5-6 GW daily, while RES produce even over 8 GW at noon. Conventional units must also participate for technical reasons, adding another 1-1.5 GW of production. As a result, the ADMIE is forced to curtail large amounts of green energy that cannot find an outlet either domestically or through interconnections with neighboring countries. Cuts have significantly increased compared to last spring. According to the president of the Association of Photovoltaic Companies (ASEF), Sotiris Kapellou, cuts in early March reached nearly 20%, up from 12% a year ago. This issue intensely concerns green producers facing lost profits, but even more so the managers and YPEN. During Easter, demand traditionally drops very low, and ADMIE with DEDDIE cannot cut RES production beyond a certain point. If there is a risk of network overload, both managers may have to intentionally shut down entire lines, including both producers and consumers, to protect the entire system. Efforts are underway to install remote-monitoring systems in photovoltaics operating on the distribution network so DEDDIE can also cut their production, which it cannot do today. Producers and authorities have about a month to bring things under control and avoid power outages. This is a problem we will face for the next 1-2 years until sufficient storage units are installed in the country to smooth things out permanently.