This is by no means a negligible amount; depending on the extent of zero and negative prices, could reach as much as 140–150 million euros per year, benefiting over 5,000 small and medium-sized photovoltaic producers, the new compensation framework for the sector is estimated.
The measure announced on Friday by the Ministry of Environment and Energy, following the European Commission’s approval, creates a new landscape for the compensation scheme for thousands of small investors who, trapped in the vise of zero negative prices and cuts due to overproduction, are seeing their revenue losses reach up to 40%, and even 60%, according to their own estimates.
In practice, this is a significant relief, as for all hours during which the wholesale price is zero and for the first two consecutive hours when the price is negative, producers with long-term contracts and “locked-in” tariffs (usually 20-year) — that is, under Differential Premium Operational Support Contracts (DPOSCs), as they are called — will continue to receive the compensation originally agreed upon for the energy they produce.
It is estimated that approximately 70% of active photovoltaic systems in Greece fall into this category, which now have a total capacity of 11 GW, resulting in the country now recording the third-highest penetration of solar systems in the world, according to the international energy think tank EMBER.
The new legislation, which, once ratified by Parliament, will take effect retroactively as of June 1, 2026, represents a substantial change, as the existing legislative framework and the state aid scheme agreed upon by our country with the European Commission stipulated that these producers would not be compensated for the energy they generate when the system price is zero or negative for more than two consecutive hours.
From now on, producers will lose their compensation only in cases where negative prices are recorded for more than two consecutive hours, that is, starting from the third hour onward.
As for the ultimate benefit, the answer depends on the various scenarios the ministry has considered, since no one can accurately predict how prices will move in the wholesale market. However, according to sources from the Panhellenic Federation of Photovoltaic Electricity Producers’ Associations (POSPIEF) who participated in the consultations, in the scenario with the most zero and negative prices, the "breathing room" could reach as much as 140–150 million euros.
Where will the money come from?
To the question of where these funds will come from, the answer is the Special RES Account (ELAPE), which is the primary mechanism through which compensation for RES producers is secured. Its revenues come, among other sources, from the Special Fee for the Reduction of Air Pollutant Emissions (ETMEAR), which is paid by consumers through their electricity bills, from the participation of RES plants in the electricity market, and from CO2 emission allowance auctions.
The latest official data from the Renewable Energy and Guarantees of Origin Administrator (DAPEP), which manages ELAPE, show that for the first month of the year, the sub-account for new projects—which covers those participating in the market on a daily basis—showed a surplus of 202.64 million euros.
The amounts are considered secure in any case, according to relevant sources.
The problem has intensified in recent years, as the massive growth of photovoltaics—which dominates the Greek renewable energy market—was not accompanied by the installation of batteries. In other words, it was not accompanied by investments that would store the excess green energy produced in the mornings and afternoons—which is currently “thrown away”— so that it could be sold during evening hours, reducing the use of expensive gas-fired units, and thus lowering the average wholesale price.
As a result, last year the curtailments reached 1,850 GWh, while estimates for this year point to an 80% increase. Additionally, during periods of overproduction from solar power and when consumption is low, the wholesale price drops to zero or even becomes negative.
From 2026 to the present, there have been 203 hours with a zero price and another 242 with a negative price in our country. This phenomenon is global and not unique to Greece. By comparison, Spain had 659 hours with zero or negative prices this year, while Portugal had 558.
The first step has been taken, say producers
As for the other question—whether this intervention is sufficient to avert the risk that massive cuts pose to the economic viability of thousands of photovoltaic systems—the answer is that further measures will be needed.
It is no coincidence that in the letter sent by the Ministry of Environment and Energy to the Commission, it requested approval for three support measures for the sector, of which it appears the EU has, for the time being at least, given the “green light” to only one.
The other two concerned a front-loaded tariff increase—a temporary increase with a binding refund mechanism—and the extension of contracts for projects under the Differential Premium Operational Support Contracts (Differential Premium Operational Support Contracts) by five years.
Approval of this extension would mean that producers would be able to renegotiate their contracts with banks and extend the terms of the loans used to finance their investments, thereby reducing their monthly payments.
Initial market reactions indicate a positive view of these developments. “The first critical step has been taken. We call on the Ministry of Environment and Energy to intensify its efforts to ensure immediate approval from the European Commission for the implementation and extension of the SEPA contracts. Depending on the progress of the extensions, a front-loaded tariff increase with a binding refund mechanism will also be discussed,” POSPIEF states in its announcement.
The ministry commits to simultaneously “pushing forward” a series of other measures, such as faster approval for battery development, with the goal of installing 700 MW by the end of June 2026 (a Recovery Fund milestone), as well as the issuance of a decision (pending for years) on the mechanism for redistributing cuts, with the aim of a fairer distribution among RES plants.