Smaller solar developers in Greece are facing increasing financial pressure as declining electricity revenues and rising curtailment levels push many renewable projects toward economic instability. Experts warn that a growing number of installations are struggling to remain financially viable, while government support measures have yet to be implemented.
A rapid expansion of solar capacity has intensified stress on the market. Nearly 1.9 GW of new solar installations entered operation during 2025, while electricity demand showed minimal growth. Combined with insufficient energy storage infrastructure, this imbalance has led to a sharp increase in renewable energy curtailments.
Curtailed renewable generation reached 876.5 GWh in the first four months of 2026, marking a 49% increase year-on-year. At the same time, electricity market conditions deteriorated significantly. The number of hours with zero or negative wholesale prices surged to 239.5 hours in Q1 2026, compared with just 13 hours in the same period a year earlier.
Projects operating under feed-in premium schemes have been among the hardest hit. According to estimates, revenues for some producers fell by as much as 62% in early April, creating mounting difficulties in meeting financing obligations. This has raised concerns about a potential increase in non-performing renewable energy loans across the sector.
Despite growing pressure, the Greek Ministry of Environment and Energy has not yet introduced concrete intervention measures. A planned mechanism to redistribute curtailments remains pending, even though it had been previously announced. Discussions are also ongoing regarding a temporary adjustment of prices, but no final decision has been made.
The deteriorating market environment is accelerating sector consolidation. Larger energy companies are increasingly acquiring distressed smaller projects, while a number of community-owned renewable assets have already changed ownership.
These challenges are further amplified by delays in deploying battery storage systems, leaving the power system without sufficient flexibility to absorb rising volumes of renewable generation.
