The Greek Ministry of Environment and Energy has announced a policy shift to protect solar power producers from the financial instability caused by zero-price periods in the wholesale market. Starting June 1, renewable energy operators holding contracts for difference (CfDs) will receive remuneration during hours when electricity prices hit zero, though payments will remain suspended during negative pricing intervals. This intervention aims to prevent widespread bankruptcies among solar producers, who have faced significant income losses due to the increasing frequency of zero and negative price events as solar penetration continues to rise across the country.
The regulatory adjustment comes after a year marked by 203 hours of zero-price electricity and 242 hours of negative pricing. To further bolster the long-term commercial viability of these projects, the government is also granting a five-year extension to existing CfD contracts. While industry associations have welcomed the move as a necessary step, many argue it fails to address the root cause of the market volatility. Groups like the Panhellenic Federation of Photovoltaic Producers and the Hellenic Association of Photovoltaic Energy Producers warn that without faster development of energy storage and adjustments to contract pricing, the sector remains vulnerable.
The new policy is expected to create a financial deficit of between EUR 100 million and EUR 150 million within the special renewables account managed by the Operator of Renewable Energy Sources and Guarantees of Origin. To cover these costs, the government is considering several options, including increasing the renewable energy surcharge on consumer electricity bills or reallocating a larger share of revenue from the carbon allowances market. While officials aim to avoid passing these costs directly to consumers, the funding gap poses a challenge for the state, which must balance support for renewables with other green initiatives like electric mobility.