The paradox in the Greek RES market: Investors want, but there’s no demand for their electricity

The domestic market (RDP) is now faced with a paradox: Investment interest in new projects is higher than ever, but there is not enough demand for electricity in our country to support them. This is the finding from the placements of bodies and executives of the industry that day ago at a conference in Thessaloniki in the context of the Renewable Energy Tech exhibition. Specifically, the Vice President of IPTO, Ioannis Margaris, stressed that the new projects implemented after 2019 will be subject to increasing production cuts necessarily. The reason is that in those hours of the day when RES production reaches the maximum, usually at noon, there is not enough demand to absorb it. In practice this means that IPTO instructs many wind and photovoltaics to reduce the quantities they channel into the network, so investors lose some of their profits in those hours. This is a trend that will deteriorate as time goes on, as each year our country adds about 2 GW of new RES, but demand remains stable. This creates a dead-end picture where investors continue to implement new projects, but their economic prospects will get worse and worse. Question is what will be the turning point where new projects will now be unprofitable. A solution to the problem would be to increase demand for electricity through new interconnections with other countries, so that green electricity is exported and not sacrificed. But these are major projects that take many years and cannot solve in the short term. Also, the development of green hydrogen production and energy storage can absorb the excess amount of electricity, but there too it takes time. Meanwhile, the government is going to proceed directly to an increase in the limit of forced cuts that an investor should accept to build an RES project. The relevant arrangement is expected within the days of RIS.