Energy Exchange operations expected in 2018

Energy Exchange operations expected in 2018

(Article by Mira Todorovic Symeonides, published in the Energy & Natural Resources Newsletter of the ILO on January 15, 2018)

In 2016 the government launched a legislative procedureto reform the energy market in compliance
with the EU Target Model by passing Law 4425/2016 on the Urgent Regulation of the Ministers of
Finance, Environment and Energy, Infrastructure, Transport and Networks and Employment, Social
Security and Social Solidarity for the implementation of the agreement on fiscal goals and corrective
reform and other provisions (known as the ‘Target Model Law’ in the energy sector), published in the
Official Journal of the European Union (A’185/30/09/2016).
The law is the result of several years of preparation and analysis to reform the wholesale electricity
market in order to ensure its harmonisation with the EU regime, particularly with regard to:

  • EC Regulation 714/2009 on the conditions for access to the network for cross-border
    exchanges in electricity; and
  • EU Regulation 2015/1222 on establishing a guideline on capacity allocation and congestion

The Target Model Law introduced significant changes to the wholesale electricity market, which – at
present – functions as a day-ahead market with a balancing mechanism and is organised as a
mandatory pool and a recently developed term products market. The law provides for the gradual
introduction of the following electricity wholesale markets in 2018:

  • the term products market;
  • the day-ahead market;
  • the intraday market; and
  • the balancing market.

However, further and more detailed regulation is required in order to provide the basis for the
establishment of the Energy Exchange (Energy Operations).

In February 2017 the electricity market operator (LAGIE) and the Athens Stock Exchange
(ATHEXGroup) signed a memorandum of understanding regarding their plan to join forces in relation
to the organisation and functioning of the Energy Exchange. They agreed to establish joint venture
companies which would provide clearing and settlement for the above electricity markets and
support LAGIE with information systems and technologies for complex financial products.

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