Greece Launches Plan to Cut Electricity Prices by 30%, Implemented in Phases from 2027 to 2029

en.Wedoany.com Reported - On September 7, the Greek government announced an energy policy plan to reduce end-user electricity prices, aiming to gradually cut retail electricity prices by 30% between 2027 and 2029. The plan is implemented through a combination of measures including transmission network expansion, energy storage construction, renewable energy development, energy-saving renovations, adjustment of public utility charges, and smart meter deployment, with energy storage and grid investment listed as the main infrastructure components.

For the energy storage component, the plan is to invest 200 million euros in national funding from 2027 to 2028 to support four categories of battery projects, including renewable energy co-located storage, self-consumption storage, standalone storage, and storage on the local government and enterprise side. The relevant funds will be allocated separately to different application categories, with some large-scale projects intended to be implemented through competitive procedures. The Greek government has also set a target of 5–7 GW of operational battery storage by 2030, with an interim target of 3–4 GW by the end of 2028.

For the grid component, island interconnection and mainland transmission facility construction will continue to be advanced. The Greek Independent Power Transmission Operator (IPTO) is implementing a grid investment plan exceeding 6 billion euros, covering power interconnections in areas including the Dodecanese Islands, the North Aegean, the Cyclades, and Crete. The Greek Islands Decarbonization Fund has also allocated approximately 1.1 billion euros for island grid interconnection, with funds earmarked to support island renewable energy and energy storage projects, including a planned capacity of 316 MW of photovoltaic and 295 MW of battery storage.

The retail electricity price adjustment also includes reducing public service obligation charges. The government plans to cut the first-tier related charge by 50% starting January 1, 2027, covering approximately 6 million residential customers, with approximately 200 million euros allocated annually from the national budget. This charge is currently mainly used to share the higher generation costs of islands not connected to the mainland grid.

The energy-saving component includes a new round of renovation projects for residential and public buildings. The new round of the "Exoikonomo" residential energy-saving program has a budget of 1.2 billion euros and is planned to cover 62,000 homes; other arrangements also include heat pumps, solar water heaters, and energy-saving projects for public buildings and schools. The relevant funds mainly come from the Social Climate Fund and the national public investment program.

On the distribution side, smart meter deployment will continue. The current arrangement plans to increase the number of smart meters to 3.71 million by 2027 and 7.7 million by 2030, covering all users, with a project investment of approximately 1.16 billion euros. The government has also included reducing electricity theft losses in the electricity price plan, with such losses currently amounting to approximately 450 million euros per year.

This electricity price plan is expected to involve approximately 5 billion euros in funding, of which approximately 2.3 billion euros comes from the Islands Decarbonization Fund, 600 million euros from EU fiscal rule-related funds, and the remainder mainly borne by the Social Climate Fund. Policy implementation begins in 2027, with the goal of a cumulative 30% reduction in retail electricity prices by 2029.