Greece has completed another major stage in its transition from lignite to renewable electricity, but the success of its solar expansion is creating a new financial challenge. Generation capacity is growing faster than the system’s ability to absorb low-cost midday electricity, putting pressure on solar capture prices and increasing the risk of curtailment.
RWE and PPC have completed nine photovoltaic plants with a combined capacity of 930 MWp, or approximately 884 MWac, on the site of the former Amynteo lignite mine in Western Macedonia. The projects were developed through Meton Energy, owned 51% by RWE and 49% by PPC, and are expected to generate enough electricity to cover the annual consumption of more than 400,000 households.
The partners are now developing a further 567 MW across the Kotyli and Neo Syrakio projects, with commissioning scheduled for 2027. PPC’s broader strategy targets 19 GW of renewable capacity by 2030, supported by an investment programme of approximately €24 billion covering renewable generation, energy storage, flexible power plants and digital infrastructure.
Greece added more than 2.2 GW of solar capacity during 2025, increasing its cumulative total from 8.82 GW to 11.5 GW. While the expansion has strengthened the country’s energy independence, it has also reduced the market value of additional daytime generation. Greece’s reported solar capture value of €43/MWh was below Croatia at €69/MWh, Slovenia at €60/MWh, Romania at €58/MWh and Bulgaria at €57/MWh.
The economics of storage are moving in the opposite direction. Greece’s indicative battery value reached €798/MW, among the highest levels in Europe. The combination of declining solar capture prices and strong storage spreads provides a compelling argument for designing the next generation of Greek renewable projects around hybrid configurations rather than additional unprotected photovoltaic capacity.
The capital requirement, however, is substantial. Retrofitting hundreds of megawatts of solar capacity with two-hour battery systems could require several hundred million euros, depending on connection requirements, battery duration and project configuration. Financing will depend on greater clarity over grid access, dispatch rights, curtailment compensation and the ability to combine wholesale arbitrage with ancillary-service revenues.
PPC and RWE benefit from a significant structural advantage because their portfolios are large enough to diversify generation profiles and internalise energy-management capabilities. Smaller independent producers face greater exposure to negative prices, imbalance costs and merchant-revenue volatility. For these developers, bankability increasingly depends on corporate PPAs with floor prices, storage integration or revenue-sharing structures with energy traders.
The redevelopment of Amynteo remains a significant industrial-transition success, replacing lignite production with nearly 1 GW of solar generation. The next phase, however, will be judged by whether storage, transmission investment and market reform can preserve the value of that electricity as Greece’s power system becomes increasingly saturated with renewable generation.
