Measures for immediate implementation, such as the reduction of charges for Public Service Obligations, to others, whose measurable impact on bills remains to be seen over time, such as investments in batteries and grids, together with generous energy-saving programs, support the government plan for electricity 30% cheaper from 2027 to 2029.
Although the specification for achieving the above target will be made tomorrow in an interview to be given by the leadership of the Ministry of Environment and Energy (13:00), according to today’s government briefing, the package includes a total of 10 distinct actions, the results of which in the favorable scenario will be felt at a later stage and obviously are not guaranteed, all the more so when energy markets are affected to a large extent by geopolitical upheavals.
From new “Save” programs and generous subsidy programs for batteries, which aim at reducing consumption (therefore at lower bills), to the significant increase in investments in the grids, which will strengthen the penetration of RES in the energy mix, with all that this entails for containing wholesale prices, and therefore the ability of providers to further lower retail tariffs, the government package includes a mosaic of actions.
Although most of the above initiatives certainly create conditions for reducing energy costs, nevertheless they do not provide the guarantee that this will happen, nor do they create the conditions for a measurable result, such as the 30% cheaper electricity announced by the Prime Minister.
On these questions and on how all the above will gradually lead to bills 30% lower by the end of 2029, the answers are expected with interest tomorrow at a press conference (13:00) to be given by the leadership of the Ministry of Environment and Energy.
Summarizing the measures from the government briefing are as follows:=
- New battery grant program amounting to 200 million euros from national resources for the years 2027 and 2028, which is estimated to contribute significantly to reducing the wholesale price of electricity, as the cheap photovoltaic production of midday will be stored and injected into the system in the evening, that is, during hours of increased demand, when energy costs rise.
The grant will concern a mix of actions, from batteries with RES projects, to batteries for self-consumption - the decision of the Ministry of Environment and Energy is expected within the week- as well as standalone batteries, a measure that also concerns households.
The rationale of the move is for energy storage to become a basic tool for reducing energy costs for everyone, contributing to addressing the distortions that have appeared in the electricity market.
The decision of the Ministry of Environment and Energy will also define the final framework for the installation of low-power balcony photovoltaics up to 800 Watt, which promise savings of 20%-30% on a typical annual electricity bill.
- From 1/1/2027 the first charging tier of Public Service Obligations (PSOs) is reduced by 50% which concerns up to 500 kwh for all household connections (daytime and dual-zone tariff, approximately 6 million connections). That is, from €6.9/MWh, the cost falls to €3.45/MWh.
The cost is 50 million annually, which is saved from the reduced expenses of the PSO account, following the interconnection of the islands. In order to make this possible, the state budget will subsidize the PSO account with 200 million euros within 2027. This reduction comes in combination with the 50% reduction already applied from 1/7/2026 for industry.
- IPTO investment plan- grids, over 6 billion euros following also the increase in the Operator’s share capital. It includes the interconnection of the Dodecanese (2.8 billion euros), the interconnection of the islands of the North Aegean (Limnos, Lesvos, Skyros, Chios and Samos, budgeted at 1.4 billion euros), as well as the upcoming completion of the fourth and final phase of the Cyclades interconnection concerning the interconnection of Santorini, Folegandros, Milos and Serifos, at a cost of 161 million.
The second interconnection of Crete (Heraklion – Attica) has already been completed following the first (Chania – Peloponnese) and what remains is the construction of the Chania – Heraklion line.
The same plan also includes the completion of the eastern Peloponnese corridor that connects the existing Megalopolis Ultra-High Voltage Center (UHV Center) with the new Corinth UHV Center and the Koumoundourou UHV Center. Other projects totaling 2.3 billion (upgrade of the Koumoundourou UHV Center, construction of a new UHV Center in Rouf, etc.)
- New Save Program for 62,000 homes, with resources of 1.2 billion euros from the Social Climate Fund, which will contribute to reducing electricity consumption.
- New heating systems replacement Program, with resources of 930 million euros from the Social Climate Fund, for the purchase and installation of a heat pump and solar water heater, which will contribute to reducing electricity consumption.
- New Energy Upgrade Program for Very Small Businesses, with resources of 395 million euros from the Social Climate Fund, for 12,000 very small businesses, which will contribute to reducing electricity consumption.
- New Program for the purchase of heat pumps and solar water heaters for 100,000 beneficiaries, with resources of 200 million euros from the National Public Investment Program (PIP) that will be implemented within 2027 and will contribute to reducing electricity consumption.
- New Program for the purchase of rooftop photovoltaics, heat pumps and solar water heaters for 10,000 beneficiaries in Western Macedonia and Megalopolis, with resources of 50 million euros from the National PIP that will be implemented within 2027 and will contribute to reducing electricity consumption.
- The Islands Decarbonization Fund is activated, which contains approximately 1 billion euros in subsidies for RES projects and for storage, with special mention of self-consumption.
- Additionally, the ELECTRA programs are being implemented at a cost of 117 million and PHOEBUS-ATHENA at a cost of 45 million euros from national resources for the energy upgrade of 109 public and university buildings and 246 schools, which will contribute to reducing electricity consumption.