Ok, for anyone else having a similar problem, this is the solution:

Even if you have billing enabled, to get out of the daily free quota limit, 
you need to set a daily budget via App Engine, settings - edit...

A royal pain in the butt and time wasted on very simple issue...

On Tuesday, September 20, 2016 at 4:06:14 PM UTC+3, Richard Cheesmar wrote:
>
> Hi, 
>
> I'm getting below Error when sending an email via the task queue
> Error sending email: The API call mail.Send() required more quota than is 
> available. I think 11 emails were sent today thus far, and now they are not 
> sending...
>
> Any idea what the problem is?
>
> app name is emlak-air and the version is beta
>
> Cheers
>
>
>

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