The Greek Ministry of Energy has approved two significant measures to address the challenges of renewable energy curtailments. The first initiative introduces a compensation mechanism for renewable energy sources (RES) affected by these curtailments. The second measure reinstates negative pricing in the balancing market.
The Ministry plans to roll out the compensation mechanism for renewable energy producers impacted by curtailments. Funding for this initiative is expected to come from the revenues of RES projects that are exempt from curtailments, particularly those connected to the national grid but lacking remote management systems. RES curtailments are often necessary to prevent network overloads and potential outages, especially during periods of low energy demand coupled with high renewable energy generation.
Data from the electricity transmission system operator ADMIE indicates that RES curtailments in the first seven months of 2024 have surpassed 500 GWh, with reductions easing somewhat from June onwards.
Regarding the reintroduction of negative pricing in the balancing market, a conservative threshold will be applied during the initial phase, although the specific limit is still under consideration.
