After several years of delays and the repeated postponement of the starting date, the new electricity market, operated by Greece’s Energy Exchange (HEnEx), was launched on November 1, in adherence to EU’s Target Model, while no major issues concerning procedural or technical matters have been reported as yet.
The implementation of the Target Model includes the Day-Ahead Market (DAM), the Intraday Market (IDM), the Balancing Market and the Futures Market, already in operation since March this year. It is anticipated that the new markets will lead to increased competition, greater transparency and an integrated market for the benefit of participants and end consumers alike.
The operation of the day-ahead market started yesterday (1/11) through the submission of bids by suppliers and producers, while the operation of the intraday market and the balancing market followed today (2/11). More specifically, the launch of the intraday market was reported smooth, with prices clearing at levels set by the day-ahead market as no serious corrections were made. Greece’s day-ahead electricity market is expected to couple with the Italian market in December 2020 and with the Bulgarian market in March 2021. Regarding the balancing market, which is operated by IPTO and cleared by HEnEx Clear, prices formed as anticipated, at levels set during the dry-run testing in the lead-up to the Target Model’s launch.
Greece’s Environment and Energy Minister, Costis Hatzidakis, hailed the launching of the new market as a major reform of the energy sector in view of the wide-ranging implications which are expected in terms of market operation and price rationalization. The reform is part of the so-called Target Model, the wholesale electricity market model for building a single European energy market. Greece was the only EU member state that had not implemented that model yet and, therefore, until recently it registered the highest wholesale electricity price in the bloc. The new model will boost competition and transparency in the Greek electricity market, helping reduce energy costs for households and businesses and increase power exports.
It is worth noting that IENE has been working closely with HEnEx over the last 18 months, having organized a series of four high-level seminars addressed to senior executives of market participants. The last such seminar took place a week before the launch, as has already been reported.
