Power Market Design and Capacity Mechanism Reform in Greece

In 2014 and 2015, the joint Compass Lexecon and FTI Consulting Energy group implemented a series of studies for the Greek generator PPC on the design of the Capacity Remuneration Mechanism and the design of the power market in Greece. We assessed the economic consequences of different contract lengths, reviewed State Aid implications, and provided support in the design of a mechanism to regulate third party access to the lignite and hydro assets of the Greek incumbent.

We were also involved during the reform of the Greek Capacity Remuneration Mechanism, which took into account the increased need for flexibility due to the expected increase in VRE production. The reform of the power market design was intended to ensure compliance with the European Target Model. We analyzed whether the proposed models could be an efficient solution to fit the specificities of the national electricity industry context.

Our team included Fabien Roques, Dmitri Perekhodtsev, Athanasia Arapogianni, Thibaut De Bernard and Jaime Coronado.