New initiatives are underway to enhance Greece’s electricity grid, aiming to better accommodate renewable energy sources (RES) and drive down electricity costs. However, many stakeholders are calling for bolder action to accelerate the transition.
Upcoming Policy Changes in Athens & Brussels
Sources indicate that new decisions at an EU level to support grid upgrades may soon be coming, while in Greece, an energy bill is in the works at the Energy Ministry to address grid expansion and connection costs for RES projects.
The bill, expected to be submitted to parliament soon, will regulate the cost-sharing model for connecting solar and wind projects to the national grid, facilitating faster deployment across the country.
Following discussions with industry stakeholders, the Energy Ministry has agreed on a 50-50 cost split between power producers and Independent Power Transmission Operator (ADMIE) on the cost of hooking up wind and solar parks with the electricity network.
Fast-Track Investments in Power Transmission
To address grid congestion caused by the rapid penetration of RES, a fast-track approval process for new transmission lines is also being considered, sources say, boosting ADMIE's ability to expand the crucial infrastructure at a faster rate.
However, experts remain divided on whether grid congestion stems from insufficient capacity or low electricity demand coupled with inadequate storage solutions.
On the one hand, the grid is seen as holding up well enough to move electricity across the country, with low demand blamed for curtailments. On the other hand, experts speak of an aging network that needs significant reinforcement after years of neglect during the country's ten-year economic crisis.
Large Investments on the Horizon
Looking ahead, ADMIE and the Hellenic Electricity Distribution Network Operator (HEDNO) have announced ambitious investment programs: ADMIE’s Ten-Year Development Plan (2025-2034) has a 5.5 billion euro budget, while HEDMO's targets spending of 3 billion euros for the next five years.
Looking at the period up to 2030, the annual amount to be invested by both managers will exceed 1.1 billion euros.
An amount that might be considered satisfactory. However, questions remain: How much of this funding will directly strengthen the national grid? According to Eurelectric, Greece needs at least €1 billion annually in distribution network investments to meet its clean energy transition targets by 2050.
"We lack networks"
Meanwhile, investors and producers complain about delays, network weak points and the need for new approaches.
“Right now we don't lack RES projects, we lack grids,” according to one investor.
One proposal that has been put forth is for investors to take a bigger and more active role in connecting renewables.
Instead of equal sharing (50%-50%), they say, the producer could build and finance the entire part of the connection to the national grid and then recover the money through the energy it sells.
The Shift in Energy Strategy
A new narrative is emerging in Greece’s energy policy.
While the government has long emphasized the need for more RES to lower electricity prices, the focus is now shifting towards
The narrative (adopted mainly by the government) that more renewables are needed to make electricity cheaper is shifting with natural gas well and truly entering the country's energy mix. Also, the attention of many is increasingly turning to the need to strengthen the domestic grid whereas up until now, new international interconnections have almost monopolized the energy agenda.
London-based think tank Ember underscores this shift, stating: "Expanding and modernizing electricity grid infrastructure is becoming increasingly critical."
With new EU initiatives potentially on the horizon, Greece’s energy transition will depend on bold policy decisions, strategic investments, and a modernized power grid.