23.2.2022
EN
Official Journal of the European Union
L 42/97
(34)
Other than in the case of outermost regions, the derogation is to be limited in time and subject to conditions aiming to increase competition and integration with the internal market for electricity.
(35)
Finally, the derogation is to aim at ensuring that it does not obstruct the transition towards renewable energy, increased flexibility, energy storage, electromobility and demand response.
5.1.
Small connected system
(36)
Regulation (EU) 2019/943 does not provide for generalised automatic derogations for small connected or small isolated systems.
Therefore, notwithstanding the large variety in size and technical characteristics of electricity systems in the Union, all such systems can and are to be operated in accordance with the full regulatory framework.
(37)
However, Article 64(1) of Regulation (EU) 2019/943 provides for a derogation from the application of certain provisions of that Regulation where Member States show, amongst others, that the application of those provisions to small connected systems could lead to substantial problems to their operation, notably due to the geographical conditions or demand profiles relevant for the systems in question.
(38)
Article 2 point (43) of Directive (EU) 2019/944 defines ‘small connected system’ as ‘any system that had consumption of less than 3 000 GWh in the year 1996, where more than 5 % of annual consumption is obtained through interconnection with other systems’.
(39)
The island of Crete constitutes a small connected system, because its consumption was below the threshold of 3 000 GWh in 1996.
With the completion of Phase I, around one third of the annual consumption of Crete will be covered by the interconnection with the Greek continental electricity system.
(40)
Thus, with the completion of Phase I, Crete qualifies as a small connected system within the meaning of Article 64(1), point (a) Regulation (EU) 2019/943.
5.2.
Substantial problem for the operation of the system
(41)
The term ‘substantial problems’ referred to in Article 64(1), point (a) of Regulation (EU) 2019/943 has been defined neither by the legislator nor by the Commission in its decision-making practice.
The open formulation allows the Commission to take into account all potential problems related to the particular situation of small systems, provided they are substantial and not only marginal.
Such problems can vary significantly depending on the geographical particularities, production and consumption of the system in question, but also on the basis of technical developments, such as electricity storage and small generation.
Furthermore those substantial problems need to be in relation to the operation of the small isolated systems and small connected systems.
(42)
Greece highlights the following problems for the operation of the electricity market in Crete, in case of a full integration of Crete market participants in the Greek electricity markets operating on the continental interconnected system, through extending the Greek bidding zone to Crete or through the creation of a new Cretan bidding zone: (a) the metering infrastructure inadequacies will not allow the full participation of Crete market participants in the day-ahead, intraday and balancing electricity markets of Greece.
In particular, the necessary metering systems are not in place and will not be ready before 2023; (b) the new interconnector (Phase I) needs to be ready to use from the day of its commissioning in order to avoid any extra cost for Greek consumers.
Indeed, the electricity exchanges on that interconnector will decrease the generation from the most expensive thermal units in Crete, thus decreasing the total cost of electricity supplied in Crete and the corresponding PSO charge supported by Greek consumers.
It would also reduce CO2 emissions;