Greece unveils 5 billion euro plan to cut electricity prices

The Greek government has unveiled a 5 billion euro plan aimed at reducing retail electricity prices by 30% within the next three years. The strategy focuses on structural changes to the energy system rather than temporary subsidies, targeting a reduction in the average retail price from 237.8 euro/MWh in early 2025 to approximately 166.6 euro/MWh by 2029.

Key pillars of the initiative include the expansion of renewable energy sources (RES) and the significant development of energy storage infrastructure. The government aims to increase storage capacity from 700 MW to 1 GW by the end of this year, reaching 4 GW by 2028 and between 5 to 7 GW by 2030. Additionally, completing the interconnection of islands with the mainland grid is expected to save 1.2 billion euros annually in fuel costs.

Funding for these interventions will be provided through the Islands Decarbonization Fund and the Social Climate Fund. The plan also incorporates a 1.7 billion euro program for energy efficiency upgrades in homes, including heating system replacements, and encourages households and businesses to install their own renewable energy units and batteries.