Based on the national strategy for supporting renewable resources (RES), there are institutional entities that act as RES aggregator or as responsible entity for the remuneration of RES producers via incentives (e.g. Feed-in-Premium - FIP). The RES aggregator might coincide with the entity for remuneration. In this regard, RES Producers sign a contract with responsible entity for the FIP remuneration, as well as a contract with the aggregator that is in charge of buying the energy from the RES producers and sell it on the organized market place. The remuneration under FIP contract is usually calculated ex post on a monthly basis and it is based on the difference between the fixed tariff and the average electricity market price in the respective month. RES producers receive payments from their participation in the wholesale energy market through the RES Aggregator and, in addition, they receive monthly payments from the responsible entity for the FIP remuneration under the framework of a FIP contract. In this framework, which of the above mentioned contracts are reportable under REMIT?
Answer: Article 2 of REMIT defines market participant as “any person, including transmission system operators, who enters into transactions, including the placing of orders to trade, in one or more wholesale energy markets”. Since there is no specific exception in the above-mentioned definition for “institutional” market participants, this means that as long as a company (e.g. the RES Aggregator) is active in the wholesale energy market, despite solely implementing the national regulation, it is considered a market participant under REMIT and is subject to obligations set out in Article 8 and Article 9 of REMIT. As stated in Article 4 of Commission Implementing Regulation (EU) No 1348/2014, all contracts concluded between the RES producers and the RES aggregator are reportable only upon the Agency’s request for a single production unit with a capacity equal to or less than 10 MW or by production units with a combined capacity equal to or less than 10 MW, unless the contract is concluded on an organised market place. On the other hand, the contract in place between the RES producer and the responsible entity for the FIP remuneration does not refer to a wholesale energy product under REMIT, but rather to the recognition of an incentive. As a result, such a contract is not reportable.