An overhaul of the Greek power market to bring it into line with EU network codes and allow coupling with the Italian market is expected to be completed by Q2 2019, the 4th annual Energy Commodities Conference in Athens heard last week.

Current day ahead market rules which market operator Lagie says distort price formation are to be overhauled and intraday, balancing markets will be introduced. A forward/derivatives market willalso be introduced as the Forward Electricity Products Auctions System (“FEPAS”) is phased out.

Data published by Lagie shows only small hourly variations around the average day ahead power price for 15 May which represents a clean spark spread of 2.67 €/MWh based on 49.13% efficiency and the daily gas balancing price published by Desfa. Although 2.7 GW of the country’s 4.6 GW ofcoal capacity was declared available, only 1.1 GW was scheduled on the day ahead market.

EEX showed the conference how it launched clearing of OTC executed Greek forward power trades in 2014 but has cleared only 157 GWh to the end of 2017 compared to 123 TWh of Italian power cleared in the first three months on this year.

The lack of a forward market was also an issue raised by independent power producer Heron, which operates a 147 MW OCGT and a 435 MW CCGT. IPPs also suffer from lack of a liquid gas market and rely on sourcing from Depa or direct import from Gazprom. That, of course could change from start-up of the TAP pipeline in 2019/20 although it is unclear to what extent buyers of TAP gas intended for Italy will be able to sell in Greece if prices are better.

Croatian power exchange, CROPEX, meanwhile confirmed that a planned go-live for day ahead market coupling with Slovenia on 19 June.

Gas sourcing options for IPPs (Heron)


The Greek power grid


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