State aid: Commission approves prolongation of two Greek measures to support transition towards new electricity market design

The European Commission has approved, under EU State aid rules, the prolongation for a limited period of two Greek measures, a flexibility mechanism and an interruptability scheme, to support the transition to the new electricity market design. Under the flexibility mechanism, which was initially approved by the Commission on 30 July 2018 (SA 50152), flexible power capacity providers such as gas-fired power plants, flexible hydro plants and demand response operators can obtain a payment for being available to generate electricity or, in the case of demand response operators, for being ready to reduce their electricity consumption. This flexibility in power capacity will allow the Greek transmission system operator (TSO) to cope with the variability in electricity production and consumption. Under the interruptibility scheme, which was initially approved by the Commission on 07 February 2018 (SA. 48780), Greece compensates large energy consumers for agreeing to be voluntarily disconnected from the network when security of electricity supply is at risk, as happened for example during the gas crisis in the cold winter of December 2016/January 2017. Greece notified to the Commission its intention to prolong the flexibility mechanism until March 2021, and the interruptibility scheme until September 2021. The Commission assessed the two measures under the Guidelines on State aid for environmental protection and energy 2014-2020. The Commission found that the prolongation of the two measures is necessary for a limited period of time, in view of the on-going reforms in the Greek electricity market. It also found that the aid is proportionate because the remuneration of beneficiaries is fixed through a competitive auction, and thus avoids overcompensation. On this basis, the Commission approved the measures under EU State aid rules. More information will be available on the Commission’s competition website, in the public case register, under the case number SA.56102 and SA.56103.