In 2015, the Greek Parliament legislated into force significant reform of the Hellenic Electricity Market to improve alignment with the European model. As set out in European Commission’s Third Energy Package, the Target Electricity Model (Target Model) planned to create a European electricity market through the harmonisation, integration and joint efficient operation of electricity markets across Member States.

The general framework for the implementation of the Target Model in the Hellenic wholesale market involved the creation of forward, day-ahead, intraday and balancing markets. The European Commission commissioned the high-level design, market rules (codes) and IT functional specifications for these markets.

Cracking the code

The Regulatory Authority for Energy (RAE) asked Frontier Economics to conduct a critical review of the draft market codes of the Greek balancing market as part of insuring compliance with the detailed Hellenic market design and the Target Model.

We identified key issues in relation to the operation of the Greek balancing market based on our deep understanding of the Target Model and experience of implementing similar market rules in other countries.

Our work helped RAE to develop its response, raise issues and suggest changes to the Greek Balancing Market Code.