Producers of renewable energy in Greece who refuse to comply with power curtailment orders from the country’s electricity transmission and distribution operators (ADMIE and DEDDIE) will face hefty fines, in an effort to drive compliance and ensure grid stability.
Emergency Meeting on Renewable Energy Cuts
On Tuesday, an emergency meeting was held at Greece’s Ministry of Environment and Energy (YPEN), attended by top officials from the Regulatory Authority for Waste, Energy, and Water (RAAEY), ADMIE, DEDDIE, and Renewable Energy Aggregators (FOSE) to discuss a new curtailment methodology, proposed by the energy market regulator.
The issue at hand is seasonal- each spring and autumn, when solar and wind energy production surges while electricity demand remains low, grid operators must impose curtailments to ensure grid stability and prevent blackouts.
Severe Fines for Non-Compliant Renewable Energy Producers
The meeting focused on the penalties for RES producers who fail to comply when instructed to shut down their stations.
- If a producer ignores curtailment orders, they will be fined €500 per megawatt-hour (MWh) of excess energy produced.
- If violations continue, the penalty will increase, up to a maximum of €1,500 per MWh.
The fines will be allocated to the Special RES Account (ELAPE), which is expected to run a deficit of €88.7 million this year. To enforce these measures, the government will introduce a new legal framework, ensuring its legality and preventing legal challenges.
Responsibility of FOSE
A key discussion point was the responsibility and role of FOSE. According to the meeting, FOSE cannot be held responsible for enforcing curtailments, as the responsibility lies with the grid operators. This issue was raised in a recent energy bill consultation, which has now concluded.
Urgency Ahead of Easter
The government aims to fast-track the new measures before Easter, particularly for the period April 18-21, when millions of Greeks travel out of cities, reducing electricity demand, while renewable energy production remains high.
Electricity exports will also be limited, as Orthodox and Catholic Easter coincide this year, leading to reduced demand in neighboring countries.
Drastic Renewable Energy Cuts Unavoidable
To prevent grid overload, sharp reductions in renewable energy generation will be necessary.
If automated curtailments (for plants connected to ADMIE and a few under DEDDIE) do not suffice, manual shutdowns will be required. In such cases:
- FOSE will be instructed to notify RES producers to switch off their plants.
- If they fail to comply, they will face heavy fines.
- If curtailments still prove insufficient, DEDDIE may be forced to shut down entire medium-voltage power lines, which could also impact industrial and commercial consumers, to prevent blackouts.
Source: OT