Greece plans measures to lower electricity prices and strengthen energy resilience

The Greek government has recently unveiled its plans for the period up to 2030, which include, among other measures, actions aimed at gradually reducing electricity prices. According to the government, this can be achieved through a coordinated policy combining the expansion of electricity networks, increased energy storage capacity for renewable energy, and energy efficiency measures. The expectation is that this will lead to a more significant reduction in wholesale electricity prices by ensuring access to cheaper electricity at different hours of the day, alongside measures to curb consumption.

Renewable energy sources are at the core of Greece’s energy development strategy. To support the expansion of energy storage, €400 million from the Recovery and Resilience Facility (RRF) has already been allocated to batteries and pumped-storage facilities. Crete and the Cyclades have been connected to the electricity grid, while work is under way on the interconnections of the North Aegean islands and the Dodecanese. Meanwhile, Greece’s transmission system operator, IPTO (ADMIE), has completed its capital increase and has access to funding from European sources.

At the same time, the smart meter rollout programme is nearing completion. According to the government’s plans, by the end of the year, two-thirds of electricity consumption on HEDNO’s network will be covered by remote metering. More than €1 billion from the RRF has also already been allocated to energy efficiency investments, while the framework for electricity self-consumption has been established and expanded.

The government points out that the measures taken so far are already producing results. In 2019, Greece had the highest wholesale electricity price in Europe, while this year the country ranks among those with the lowest prices. According to the data presented, imports covered 18% of Greece’s electricity needs in 2019, whereas this year the country is among Europe’s major electricity exporters. Household electricity prices also remain below the European average, having been around 19% lower in 2025.

These trends are unfolding against the backdrop of a complex international energy market environment. According to the Greek government, during the most recent energy crisis linked to Iran, wholesale electricity prices were affected to a significantly lesser extent than natural gas prices compared with the previous energy crisis. The government attributes this resilience to the increased domestic generation of electricity from renewable energy sources.

Further development of the sector, however, requires significant investment in electricity networks, as well as increased energy storage capacity, so that electricity generated from renewable energy sources can be used more flexibly and throughout more hours of the day. Against this backdrop, the government has developed an investment programme covering energy storage facilities, network development through IPTO (ADMIE), large-scale energy efficiency programmes, and reductions in public service charges (ΥΚΩ).

According to the government’s estimates, the combination of these investments and measures is expected to result in a gradual 30% reduction in the retail price of electricity over the period 2027–2029.

Key measures include:

A new €200 million battery subsidy programme, financed from national funds for 2027 and 2028, which is expected to make a significant contribution to reducing wholesale electricity prices. The subsidies will cover a combination of options, including batteries combined with renewable energy projects, batteries for self-consumption, and standalone batteries.
From 1 January 2027, the rate of the public service charge (ΥΚΩ) for the first 500 kWh of consumption will be reduced by 50% for all household consumers, under both single-rate and dual-rate tariffs. The rate will therefore fall from €6.90/MWh to €3.45/MWh. The measure covers around 6 million consumers. Lower ΥΚΩ costs resulting from the interconnection of the islands with the mainland electricity grid create scope for a reduction in the charge for households, with the measure expected to save them around €50 million annually. To compensate for the lower revenues in the ΥΚΩ account, the state budget will provide €200 million in 2027. The measure complements the 50% reduction in the ΥΚΩ charge for industrial consumers introduced on 1 July 2026.
An IPTO investment plan for electricity networks worth more than €6 billion, including the €1 billion capital increase. The plan includes the €2.8 billion electrical interconnection of the Dodecanese; the interconnection of the North Aegean islands – Lemnos, Lesbos, Skyros, Chios and Samos – with a budget of €1.4 billion; and the upcoming completion of the fourth and final phase of the Cyclades interconnection, covering Santorini, Folegandros, Milos and Serifos, at a cost of €161 million. The second electricity interconnection of Crete (Heraklion–Attica), following the first one (Chania–Peloponnese), has already been completed, with the Chania–Heraklion line still to be constructed. The completion of the eastern Peloponnese corridor is also pending, connecting the existing Megalopolis Extra High Voltage (EHV) substation with the new Corinth and Koumoundourou EHV substations. Other projects, with a total value of €2.3 billion, include the upgrade of the Koumoundourou EHV substation, the construction of a new EHV substation in Rouf, and others.
A new “Exoikonomo” programme for 62,000 homes, with €1.2 billion from the Social Climate Fund, which will contribute to reducing electricity consumption.
A new heating system replacement programme, with €930 million from the Social Climate Fund, for the purchase and installation of heat pumps and solar water heaters, which will contribute to reducing electricity consumption.
A new energy renovation programme for micro-enterprises, with €395 million from the Social Climate Fund, targeting 12,000 micro-enterprises and contributing to lower electricity consumption.
A new programme for the purchase of heat pumps and solar water heaters for 100,000 beneficiaries, with €200 million from the National Public Investment Programme. The programme will be implemented in 2027 and will contribute to reducing electricity consumption.
A new programme for the purchase of rooftop solar PV systems, heat pumps and solar water heaters for 10,000 beneficiaries in Western Macedonia and Megalopolis, with €50 million from the National Public Investment Programme. The programme will be implemented in 2027 and will contribute to reducing electricity consumption.
The Island Decarbonisation Fund is being activated, with around €1 billion available in grants for renewable energy and energy storage projects, with a particular focus on self-consumption.
The “ELEKTRA” and “FOIVOS–ATHINA” programmes are also being implemented, with €117 million and €45 million respectively from national funds, for the energy renovation of 109 public and university buildings and 246 schools. The measures are expected to contribute to reducing electricity consumption.

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