The solar energy sector in Greece is currently experiencing significant financial challenges, particularly for smaller developers. A combination of declining electricity revenues and escalating curtailment levels is pushing many renewable projects towards economic instability. Experts indicate that an increasing number of installations are struggling to maintain financial viability, with government support measures still absent.
The rapid growth of solar capacity has exacerbated market pressures. In 2025, approximately 1.9 GW of new solar installations were brought online, yet electricity demand has seen only minimal growth. This mismatch, coupled with inadequate energy storage infrastructure, has resulted in a notable rise in renewable energy curtailments.
In the first four months of 2026, curtailed renewable generation reached 876.5 GWh, reflecting a 49% increase year-on-year. Concurrently, the conditions within the electricity market have deteriorated markedly, with the number of hours experiencing zero or negative wholesale prices skyrocketing to 239.5 hours in Q1 2026, compared to just 13 hours during the same timeframe the previous year.
Projects that operate under feed-in premium schemes have been particularly affected by these changes. Estimates suggest that some producers have seen their revenues plummet by as much as 62% in early April, which has created substantial difficulties in fulfilling financing obligations. This situation raises concerns about a potential rise in non-performing renewable energy loans throughout the sector.
<pDespite the mounting pressures, the Greek Ministry of Environment and Energy has yet to implement any concrete intervention measures. A proposed mechanism to redistribute curtailments remains unfulfilled, despite prior announcements. Discussions regarding a temporary price adjustment are ongoing, but no definitive decisions have been reached.
The challenging market environment is prompting a wave of sector consolidation. Larger energy firms are increasingly acquiring distressed smaller projects, and several community-owned renewable assets have already changed hands. These dynamics reflect a broader trend towards consolidation as companies seek to stabilize their operations amid growing uncertainties.
The situation is further complicated by delays in deploying battery storage systems, which are crucial for providing the necessary flexibility to accommodate increasing volumes of renewable generation within the power system.
