Lignite and hydroelectric auction to lower PPC’s market share

Greece will hold the sixth auction – first for 2018 – of lignite and hydroelectric production by Public Power Corporation on Wednesday, with higher than initially scheduled quantities, as the country failed to achieve a goal to reduce PPC’s market share in 2017.

The goal, set by a memorandum signed with the country’s creditors, was to reduce PPC’s market share to 75.24 pct in 2017, but in reality, PPC’s market share was 85.34 pct last year. Following this, the market’s watchdog decided to raise the auction by 594 Mwh/h to 1,711 Mwh/h to cover the gap. The goal agreed with the country’s creditors is the reduce PPC’s market share to below 50 pct by 2020.

Wednesday’s auction will include 400 Mwh/h and will be followed by another two auctions of the same quantity in April and July, with another one in October for 511 Mwh/h/.

All retail electricity power market players are expected to participate in the auction, along with natural gas companies from Attica and Thessaloniki, which have expanded activities in the electricity retail market.

Authorities have taken measures to ensure that the auctioned energy will be distributed in the domestic market and will not be exported (as it happened in the past). In the latest auction (October 2017), prices exceeded 45 euros per Mwh/h, up from 40 euros in the previous auctions.