Solar power producers in Greece are facing a severe financial crisis as revenue from photovoltaic plants plummeted by up to 60% last month. This sharp decline is driven by a combination of frequent grid curtailments and the increasing prevalence of zero or negative wholesale electricity prices. Because the deployment of battery energy storage systems has failed to keep pace with the rapid expansion of solar capacity, the grid frequently experiences overloads during peak production hours. Industry leaders warn that these conditions threaten the stability of the renewable energy market and could trigger a wave of non-performing loans.
The financial impact is particularly acute for beneficiaries of the Greek two-way contract-for-difference scheme. For solar parks exceeding 400 kW, revenues in April were 50% lower than those recorded in the previous month. The issue is exacerbated by the timing of solar generation; during sunny periods with low electricity demand, such as weekends and holidays, system operators are forced to curtail portions of the photovoltaic fleet to protect the grid. Larger facilities connected to the transmission system have been disproportionately affected by these mandatory production limits compared to those on the distribution network.
Market conditions have shown no signs of improvement in May, with zero and negative pricing events occurring daily for at least four hours at a time. This volatility stands in stark contrast to neighboring Bulgaria, which leverages its significant battery storage capacity to import solar power during the day and export it back during evening peak hours. The situation has prompted urgent warnings from industry executives, including Evangelos Mytilineos of Metlen Energy and Metals, who anticipates that banks may soon begin seizing solar assets. Similarly, Aktor Group’s Alexandros Exarchos cautioned that the current trajectory could lead to as much as EUR 25 billion in non-performing loans, potentially destabilizing the entire Greek renewable energy sector.