Market design of an energy exchange: The case of Greece

Abstract

Driven by the liberalization of the energy market that began in the 1990s, the European Union aims to unify its internal market and achieve price convergence among all European economies. The majority of European countries have successfully established power exchanges, aiming to conduct cross-border transactions in a transparent and reliable manner. This paper provides a comprehensive overview of prior literature on the market design of the European Power Exchanges. It also identifies recent developments in the electricity market in Greece and describes the structure of the Hellenic Energy Exchange and the markets that will be formed in the future. These upcoming markets are expected to provide greater flexibility to all market participants. At the same time, the Hellenic Energy Exchange is expected to facilitate the integration of Greece into the rest South East European electricity markets.