kathimerini.gr
Opaque Costs in Greece's Electricity Market to Reach €500 Million in 2025
Greece's energy market design is imposing €500 million in hidden costs on consumers in 2025 due to a flawed system that charges conventional power plants at high balancing market rates even when needed for grid stability, creating a €1 billion projected cost for consumers in 2025.
- What is the immediate financial impact of Greece's electricity market design on consumers and businesses?
- The flawed Greek electricity market model is transferring opaque costs to businesses and households, projected to reach €500 million in 2025. This is according to EVIKEN, representing energy-intensive industries, who report that balancing market prices have more than doubled in the last year.
- How does the interplay between renewable energy sources and conventional power plants contribute to the escalating costs in the balancing market?
- This cost surge stems from managing conventional and renewable energy (RES) supply to ensure system stability. High RES production during midday hours displaces thermal units in daily auctions, but variable RES output necessitates activating conventional units to prevent blackouts. This energy, needed for system stability, is wrongly charged at high balancing market rates, inflating consumer bills.
- What systemic changes are needed to address the opaque pricing and unsustainable costs associated with maintaining electricity grid stability in Greece?
- The practice of charging conventional units' energy at high balancing market rates (LP3 code), even when crucial for system stability, is unsustainable. EVIKEN estimates a €1 billion cost to consumers in 2025 for this, highlighting the urgent need for reform, similar to other European countries which pre-purchase energy for such purposes. The abrupt withdrawal of a 2021 market reform proposal, designed to address this, further exacerbates the issue.
Cognitive Concepts
Framing Bias
The framing consistently highlights the negative consequences for businesses and households due to the electricity market's structure, emphasizing the costs imposed and the perceived lack of transparency. The headline, while not explicitly provided, would likely reinforce this negative framing. The article's structure prioritizes EBIKEN's concerns, potentially overshadowing other perspectives or potential mitigating factors.
Language Bias
The article uses emotionally charged language such as "στρεβλό μοντέλο" ("distorted model") and "υπερδιπλασιαστεί" ("more than doubled"), which are subjective and could influence reader perception. More neutral alternatives could be used, for example, instead of "distorted model", the term "inefficient model" or "suboptimal model" could be employed. The use of words such as 'crisis' or 'catastrophe' could be avoided in favor of more neutral descriptions.
Bias by Omission
The article focuses heavily on the perspective of EBIKEN, a representative of energy-intensive industries, potentially omitting other viewpoints on the electricity market's functioning and proposed solutions. While acknowledging a proposal for market reform, the article doesn't delve into the reasons for its withdrawal or explore alternative solutions that may have been suggested. The lack of detail regarding the reasons for the proposal's withdrawal could be considered an omission.
False Dichotomy
The article presents a somewhat simplified dichotomy between renewable energy sources (RES) and conventional power plants, overlooking the complexities of integrating RES into the grid and the potential for other solutions beyond the immediate focus on market mechanisms.
Sustainable Development Goals
The article highlights the inflated costs of electricity due to inefficiencies in Greece's energy market, particularly concerning the balancing market. This leads to higher energy prices for businesses and households, hindering access to affordable and clean energy. The opaque pricing and lack of transparency exacerbate the issue, impacting affordability and potentially discouraging investment in renewable energy sources.