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State Aid | 20 February 2020

ClientEarth's observations on the prolongation of the Greek flexibility and interruptibility schemes
State Aid
Climate

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ClientEarth's observations on the prolongation of the Greek flexibility and interruptibility schemes

Greece applied for a prolongation of its flexibility and interruptibility schemes, which remunerate certain electricity generators and electro-intensive industries for their flexibility and reduction of electricity generation or consumption at peak times. These schemes were adopted in 2016 and had already been prolonged in 2018 by the European Commission. We wrote to the European Commission to alert it that if such schemes could improve resource adequacy in certain circumstances, they give an excuse to the Greek authorities to not implement their long-promised market reforms (the so-called Target Model). Moreover, it is not established that there would be resource adequacy concerns in Greece between 2020 and 2030. Now is the time to implement market reforms as they would improve resource adequacy in Greece without using taxpayers’ money for an artificial purpose.