Green electricity rates remained unchanged in June for the vast majority of consumers, with the electricity market now hoping for a quick agreement in the Persian Gulf before the first intense summer heatwaves begin and expensive natural gas plants have to operate for many hours.
In this environment, and judging by the announcements from those providers who had published their new rates by late last night , the first month of summer began with no changes in electricity prices for more than eight out of ten households, representing the combined market share of the three largest suppliers: PPC, Protergia, and Heron.
More than 80% of residential consumers will continue for another month to pay an average of less than 15 cents per kilowatt-hour, as the surge in photovoltaic production, combined with consumption levels that remain low for the season, kept the average wholesale price for May steady at 89 euros per megawatt-hour.
Although the price of natural gas, which surged again following yesterday’s resurgence of tensions in the Persian Gulf, is up 51% since the start of the war, the massive installation and overproduction of solar power, which accounts for over 50% of the energy mix daily, limited the share of this expensive fuel to nearly 20% throughout the previous month.
In the case of PPC (G1), the rate for the first consumption tier (200 kilowatt-hours) remains at 13.8 cents, while if consumption exceeds these levels, it remains at 15.39 cents.
Both Protergia, at 15.9 cents (Protergia Residential Value Special), and Heron, at 14.76 cents (Heron Basic Home), kept their rates unchanged.
In the case of Enerwave, which now has very little exposure to green energy, the company continues to bill consumption for the first 100 kilowatt-hours at 15.9 cents, while for 101 kWh and above, the rate (20.56 cents in May) is slightly adjusted.
Zenith’s green rates remained stable (19.88 cents), Natural Gas ’s increased by 8% (18.87 cents), while Volton’ s decreased marginally (18.61 cents).
To the extent that the other players follow a similar policy to last month and keep their rates generally unchanged, the overall market average for June will be just under 17 cents (the average in May was 16.9 cents).
Concerns about natural gas
The market’s attention is naturally focused on natural gas, which remains the major headache for Europe, as indicated by Mitsotakis’s recent remark “we’re not going anywhere with these energy prices,” as Europe enters the summer season without a deal yet between the U.S. and Iran.
Natural gas storage levels are at historic lows, around 30%, levels that Europe must replenish by this coming November, reaching the 80% target, without, however, having Qatari LNG on the market, as was the case last year.
Although following the resurgence of hostilities in the Gulf, President Trump stated yesterday that talks with Iran are proceeding rapidly; nevertheless, natural gas prices briefly reached 49 euros per megawatt-hour during intraday trading .
The government is cautiously optimistic about the trajectory of electricity prices this summer, with Deputy Minister of Environment and Energy Nikos Tsafos outlining a few days agothe four “shields” the domestic system has against the risk of wholesale price hikes.
- The first “shield” concerns the overproduction of solar power. Although electricity consumption will obviously surge due to the use of air conditioners and tourism, all signs indicate that photovoltaic production will prove stronger than the increase in demand. This, in turn, leads to a barrage of negative and zero prices at midday on the wholesale market, which keep the average price on the Energy Exchange lower.
- Decoupling of the Greek market from neighboring markets.Precisely because Greece has reached the point of being an exporter almost all hours of the day—not only at midday but also in the evenings—of a certain amount of energy, the international interconnection cables “fill up,” meaning that domestic prices cease to align with those of neighboring markets, keeping the Greek system in a more competitive position. In May, we exported electricity to Bulgaria during 96% of the month’s hours, and we are now the 4th largest net electricity exporter in Europe, in absolute terms, behind only France, Sweden, and the Netherlands.
- Batteries.Currently, approximately 150 MW of batteries are operating on a trial basis, charging during the morning and midday hours and feeding cheap energy back into the grid in the afternoon and evening, reducing the need to use expensive gas-fired units. Through the Recovery Fund’s tenders, the development of approximately 900 MW of storage is planned, part of which is expected to come online this summer.
- Hydroelectric reserves. “We havesome of the highest reserves in recent years,” Mr. Tsafos said on Friday, a fact that offers significant flexibility to the power generation system in anticipation of a demanding summer, precisely because it limits the need to use expensive gas-fired power plants at night.