The bill drawn up by the Ministry of Environment and Energy, entitled: “Improving the design of the electricity market – Transposition of Directive (EU) 2024/1711 of the European Parliament and of the Council of 13 June 2024 amending Directives (EU) 2018/2001 and (EU) 2019/944 and other provisions”, was submitted to Parliament today, Saturday, following the conclusion of the public consultation, for consideration and passage.
The bill transposes European Directive 2024/1711 into national law and includes a series of measures to make the electricity market more transparent, more stable and fairer for consumers.
The aim is for the benefits of the growth of renewable energy sources (RES), stronger networks and a modernised market to have a more tangible impact on people’s daily lives and the way businesses operate.
Households will have more choice and greater predictability in their bills, with fixed-price contracts and stronger protection in their dealings with suppliers. The commitment to reduce energy costs through the charge for Public Service Obligations (PSOs) is also being delivered.
At the same time, a framework is being established to help suppliers manage the risks arising from wholesale-market fluctuations more effectively, while stronger oversight will limit consumers’ exposure to market volatility.
Citizens, small and medium-sized businesses and public bodies will have greater scope to participate actively in the energy transition by producing and sharing clean energy.
Grid connections will also become more transparent and digital, and flexible connections will be introduced in areas with limited grid capacity, enabling new investment to proceed alongside the necessary network upgrades.
For the Greek islands, the national mechanism for managing and using the resources of the Islands Decarbonisation Fund will be activated to implement an investment programme worth €2.3bn. The aim is to gradually reduce the islands’ reliance on costly and polluting oil-fired power generation, strengthen their energy security and autonomy, and build the infrastructure needed to provide residents and businesses with cleaner, more affordable energy.
Clear rules and a comprehensive framework are being established for new investment and energy infrastructure, to ensure they are developed in an organised, safe and transparent way.
For data centres, investors will be required to cover the cost of connecting to the electricity system and any necessary upgrades, secure grid capacity only when their projects have reached a genuine level of financial and investment readiness, and meet at least 60% of their annual consumption from renewable energy sources. A ministerial decision to follow will set out the specific shares of electricity demand to be met by RES plants and electricity storage systems.
At the same time, the framework governing the operation, maintenance and inspection of private networks serving RES projects is being strengthened, with specific rules to protect infrastructure and the environment.
The bill also includes targeted measures for professional farmers, local authorities (OTAs) and residential self-consumers, while facilitating the development and implementation of clean-energy projects.
At the same time, it addresses outstanding social, spatial planning, urban planning and environmental issues, delivering specific benefits for citizens, local communities, social infrastructure and protected ecosystems.
PART I – Transposition of the European Directive on the Electricity Market
Since September 2021, European electricity markets have been characterised by exceptionally high prices and sharp fluctuations, mainly because of rising natural gas prices.
The ongoing war in Ukraine and rising tensions in the Strait of Hormuz, a critical route for global energy supplies, continue to fuel uncertainty in international markets, affecting security of supply and energy prices.
These developments have again highlighted the need to adapt the design of the electricity market to limit consumers’ exposure to short-term price fluctuations and ensure that they benefit more effectively from the growing share of renewable energy sources.
Against this backdrop, Directive (EU) 2024/1711 strengthens consumer protection and participation, broadens the choice of electricity supply contracts and promotes flexibility and more efficient operation of the electricity system.
1. What changes for consumers
Consumers will be in a stronger position in the electricity market, with greater predictability, more choice, stronger protection and more scope to participate in clean energy.
Electricity suppliers will be legally required to offer consumers fixed-price contracts for a set term of at least one year. While a contract is in force, the supplier will not be able to change unilaterally its terms or the price it sets. Consumers will therefore know in advance the agreed supply price for the relevant period.
- Protection from disconnection
Consumers will be protected from disconnection while a dispute-resolution procedure is under way.
- Longer period with the Supplier of Last Resort
For customers served by the Supplier of Last Resort, the maximum period of representation will be changed to no less than six months.
- More contracts at the same connection point
Subject to the specified conditions, a consumer will be able to hold more than one supply contract or energy-sharing agreement through different meters at the same connection point.
Households, small and medium-sized businesses and public bodies will be able to share energy from renewable sources through a private agreement or a shared legal entity. They will also be able to appoint a third party to organise the sharing. The condition is that energy sharing must not be the participants’ main commercial or professional activity.
2. What changes for suppliers and market oversight
The measures will create a more stable and reliable market, with suppliers managing risks more effectively and stronger oversight to limit consumers’ exposure to wholesale-market volatility.
Electricity suppliers will have to take steps to limit the risk posed by large wholesale-market price swings, using hedging strategies (hedging).
Stress tests will also be introduced to assess whether suppliers can withstand difficult market conditions. The relevant framework will be set by the Regulatory Authority for Waste, Energy and Water (RAAEY).
RAAEY’s responsibilities will also be expanded in areas including consumer protection, supplier risk management, flexible connections and the removal of unjustified barriers to self-consumption, energy sharing and energy communities.
3. What changes to electricity grid connections
Grid connections will become more transparent, digital and flexible, making better use of available grid capacity and allowing new investment to proceed alongside the necessary network upgrades.
- More information on available capacity
The Hellenic Electricity Distribution Network Operator (DEDDIE) and the Independent Power Transmission Operator (ADMIE) will be required to publish quarterly information on the scope for new connections in each area.
Connection applications will be submitted exclusively online. Applicants will be informed of their progress within three months of submitting a request for information, with updates every quarter thereafter.
- Flexible Capacity Connection Agreements
Flexible Capacity Connection Agreements will be introduced in areas where there is not enough capacity for new connections with guaranteed capacity.
An installation will be able to connect on the basis of an agreement made in advance that, within specified limits, the system operator may restrict the electricity it feeds into or draws from the grid. The areas where the agreements apply will be determined by RAAEY, following a recommendation from the relevant operators.
No compensation will be provided when restrictions remain within the agreed limits. If those limits are exceeded, the installation’s owner will be entitled to compensation. Charges for non-compliance will apply to those who fail to observe the specified restrictions.
Once the necessary network development work has been completed, a flexible connection may, subject to the specified conditions, be converted into a connection with guaranteed capacity. Flexible connections will not suspend or delay planned network upgrades.
PART II – Islands Decarbonisation Fund
A mechanism will be put in place to channel €2.3bn of investment into the islands, reducing their reliance on oil, strengthening energy security and providing residents and businesses with cleaner, more affordable energy.
- Islands Decarbonisation Fund
The bill provides for the establishment of the Islands Decarbonisation Fund to finance projects that will reduce the Greek islands’ reliance on oil-fired power generation.
The Fund will be able to co-finance up to 60% of the total investment cost of each eligible project component. Funding will be available for:
RES and storage projects.
Electricity interconnectors and upgrades to electricity infrastructure.
Electric vehicle charging infrastructure.
Multipurpose dams.
- Where the funding will come from
The main source of funding will be revenue from the auctioning of up to 25 million greenhouse gas emission allowances allocated specifically to Greece under the Directive on the EU Emissions Trading System, for the purpose of reducing the carbon footprint of electricity on the islands, as well as interest earned on the relevant account.
The European Investment Bank (EIB) will be responsible for auctioning the allowances, managing the revenue and transferring it to Greece. The resources will be used for the Fund’s approved measures and for the EIB’s specified fees and expenses.
The General Secretariat for Energy and Mineral Raw Materials at the Ministry of Environment and Energy will be designated as the Fund’s Managing Authority. It will be responsible for managing the resources, monitoring and coordinating projects, conducting checks and working with the European Commission and the EIB.
A Coordination Committee comprising representatives of the Greek government, the European Commission and the EIB is also provided for, along with ten seconded staff positions to support the Fund’s operations.
- What will change in practice
The bill will give consumers more choice in electricity contracts, strengthen consumer protection and establish the sharing of energy from renewable sources.
It will also set new rules for suppliers and increase transparency around grid connections, while introducing flexible connections in areas with limited available capacity.
For the islands, it will establish a framework for a dedicated fund to finance projects that will reduce their reliance on oil-fired power generation.
PART III – Other energy provisions
Targeted solutions will be provided for farmers, local authorities and households; the development and implementation of clean-energy projects will be facilitated; and clearer rules will be introduced to ensure that energy infrastructure is developed safely and in an organised manner.
- Extension of the deadline for professional farmers who generate electricity to submit their annual declaration for 2025
Professional farmers will once again be able to submit the required statutory declaration to the Renewable Energy Sources Operator and Guarantees of Origin (DAPEEP) for 2025 and receive the higher rate of compensation for the RES project they own.
- Ensuring the implementation of projects owned by first- or second-tier local authorities
Local authorities will be exempt from the fees required to submit applications for RES projects to both RAAEY and the relevant system operators. They will also be exempt from the required Fee for Securing Natural and Grid Capacity. In addition, local authorities with RES projects will once again be able to extend their validity period, giving them more time to develop and implement the projects.
- Measures to oversee the development of private networks for RES projects
The institutional framework for developing private electricity networks serving RES plants is being revised, modernised and tightened. Appropriate measures and specific procedures are being introduced, along with penalties, to ensure safe network operation, regular maintenance and repairs, preventive inspections and environmental protection.
Specifically, the measures include:
Annual declarations and technical reports must be submitted by the engineers responsible, informing DEDDIE about the condition of the private network and the work carried out.
DEDDIE will carry out random and on-site inspections of RES projects to verify compliance with the framework and confirm that the declared work has been carried out.
RES projects may be temporarily shut down for a minimum of three months if reports and required information are not submitted to DEDDIE.
By 28 February 2027, DEDDIE will publish appropriate network maintenance practices.
Finally, the construction of overhead networks will be significantly restricted, permitted only in exceptional cases where underground routing is technically impossible, and DEDDIE will also assess whether overhead routing is necessary.
- Radical repowering of RES or high-efficiency cogeneration plants
Owners of RES plants will be incentivised to replace their equipment before the plants reach the end of their operating life, retaining the original compensation rate for part of their output and receiving compensation for the remainder based on the Special Market Price, with the ultimate aim of accelerating the radical repowering of RES plants, increasing clean energy generation by making use of existing infrastructure and networks, further reducing their environmental footprint, and enabling the recycling and reuse of old equipment.
- Zero pricing for residential self-consumption solar projects
Following the introduction of the new self-consumption framework and to protect households from fluctuations in the wholesale electricity market, a specific provision is being introduced for residential consumers installing solar PV systems of up to 10.8 kW for self-consumption. It stipulates that, when they are compensated for surplus electricity generated, any negative wholesale electricity prices will be treated as zero, so that households are not left with a charge.
- Review of the Special Spatial Planning and Sustainable Development Framework by the licensing authority
Following the new Special Spatial Planning Framework for Renewable Energy Sources, the way RAAEY assesses RES projects and storage plants is being redefined, with the aim of ensuring that projects comply with the Framework, particularly in relation to designated exclusion zones. In all cases, compliance with the Framework will also be ensured through a further assessment at the environmental permitting stage.
- New framework for the development of data centres
A new institutional framework is being established to support the orderly development of data centres (Data Centers), ensure the rational use of available grid capacity and protect consumers. Its main provisions include:
Investors will bear the full cost of connection and any necessary upgrades to the electricity system caused solely by connecting the Data Center.
New Data Centers will be required to meet at least 60% of their annual electricity consumption from RES.
A €200,000-per-MW bank guarantee, aimed at limiting speculative applications that tie up grid capacity.
Investors’ financial capacity will be assessed against specific turnover criteria for projects connected to the ADMIE system.
Stricter investment and environmental-readiness criteria for the granting of a Final Connection Offer.
A Data Centre Register will be established at RAAEY to monitor the sector’s development consistently and increase transparency.
- Lower PSO charges for household consumers
The gradual interconnection of the islands with the mainland electricity system significantly reduces the cost of supplying them with electricity and makes it possible to lower Public Service Obligation charges. Against this backdrop, the unit PSO charge for household consumers in the first consumption band will be cut by 50%, directly easing households’ electricity bills.
- Measures to promote electricity storage plants and accelerate their entry into electricity markets
Measures are being introduced to speed up licensing and address administrative difficulties affecting electricity storage projects. At the same time, obligations are being introduced to ensure that supported electricity storage systems (SAIS) participate in electricity markets as quickly as possible.
- Measures to safeguard wind farm business plans
Provisions are being introduced to extend the operation of wind farms, allowing them to receive compensation for the electricity they generate, in accordance with the terms of the Electricity Sale Agreements they have signed with DAPEEP and DEDDIE, in its capacity as operator of the non-interconnected islands.
PART IV – Spatial planning, urban planning and environmental provisions
Targeted measures are being introduced to resolve outstanding spatial planning, urban planning and environmental issues, bringing direct benefits for residents’ safety, social infrastructure and more effective protection of the natural environment.
- Relocation of the settlement of Metamorfosi in the Municipality of Palamas, Karditsa, and restoration for those affected
The measure is expected to facilitate the prompt relocation of the settlement of Metamorfosi in the Municipality of Palamas, Thessaly, as flooding is expected to recur or intensify in the future. The settlement was already affected by operational problems and damage caused by previous severe weather, including Storm Ianos.
Following Storm Daniel, the settlement lost the normal use of its infrastructure networks, while a very large proportion of buildings in some areas are in a condition that makes them unusable. There are also concerns about residents’ health and safety. Metamorfosi has a total of about 324 permanent registered residents (ELSTAT 2021), estimated to live in around 180 properties. Their homes have been repeatedly destroyed in recent years because the settlement is at a very low elevation.
After all the necessary studies were completed, a suitable site for the relocation was identified to the south of the neighbouring settlement of Palamas. The site was selected because a key aim of the project is both to resettle residents in a safe area and to keep them within the boundaries of the same municipality, close to their workplaces and to the place with which they identify through their family and cultural heritage.
- Modernisation and upgrading of the “G. Karaiskakis” Stadium
The measure provides for an increase in capacity—from an indicative estimate of 33,500 to 52,000 seats—through the reconfiguration of the stands and construction of a new lightweight roof. New maximum height limits are being set for the building on the west side, the new stands and the roof. At the same time, the maximum floor-area ratio is being reduced, the site coverage ratio is set at 60%, and at least 65% of the permitted floor-area ratio is guaranteed to be used exclusively for sports, with the remaining 35% divided equally between ancillary and other uses.
The plans also provide for at least 1,800 parking spaces, an update to the existing environmental permit following a traffic management study, and the issue of a joint ministerial decision by the ministries of Environment and Energy and Education, Religious Affairs and Sport. The aim is to bring the stadium into line with modern international standards, improve its functionality and safety, and upgrade sports infrastructure, with the required works funded by PAE Olympiacos.
In addition, the use, administration and management of the stadium site will be granted under certain conditions for 49 years from the date of the concession agreement between the General Secretariat for Sport at the Ministry of Education, Religious Affairs and Sport, the Hellenic Olympic Committee (HOC) and the club known as the “Olympiacos Club of Fans of Piraeus”.
- Designation of a site for a welfare facility building – an elderly care unit
A site has been designated for the construction of a welfare facility building—an elderly care unit—at “Damari” in the Dilesi Municipal Unit of the Municipality of Tanagra, with permitted uses and applicable building terms and restrictions specified. The measure follows the completion of all necessary studies and is intended to serve the public interest.
The facility will be a modern elderly care unit meeting the applicable operating standards. Its development is part of the charitable activities of the Holy Archdiocese of Athens, supports social infrastructure and responds to documented needs in the local community of the Municipality of Tanagra.
- Correction of errors in the “Nikolaos Tagaras” Spatial Planning and Urban Planning Code and the Local Government Code
The corrections do not introduce new provisions; they address errors that had crept into the legislation because of its length.
- Functional consolidation of adjoining or contiguous subdivided properties – Amendment to Article 220 of the “Nikolaos Tagaras” Spatial Planning and Urban Planning Code
The law already provided for the functional consolidation of buildings on different plots of land, as well as of subdivided properties (horizontal and vertical ownership units) within the same building. The proposed measure addresses a related need by allowing individual adjoining or contiguous subdivided properties on corresponding or successive floors (horizontally or vertically), in the same or a neighbouring building or plot, to be functionally consolidated for urban-planning purposes.
- Responsibilities of OFYPEKA in the marine area of the Thermaic Gulf
The Thermaic Gulf forms a single ecological and hydrological unit. The Natura 2000 network sites around it—including the complex of the Gallikos, Axios, Loudias and Aliakmonas river mouths, the Kitros salt marsh and the Epanomi lagoon—do not function as independent units. They depend on the physical, chemical and biological processes in the marine area between them: the movement of sediment and nutrients, water circulation, the movement of fish and marine mammals, and the dispersal of pollutants.
This intervening area will fall within the remit of the Natural Environment and Climate Change Agency (OFYPEKA), as the area’s management body. The measure will make protection measures across the Natura network sites more coherent and effective, while enabling OFYPEKA to intervene in the Thermaic Gulf itself to improve its environmental condition and respond promptly and effectively to marine pollution incidents and the problem of marine litter frequently carried by local rivers. The measure restores coherence to ecosystem-level management.
Use of huts in the protected zones of the Evros Delta – Amendment to paragraph 4 of Article 75 of Law 5261/2025 The Evros River Delta is a protected area where 168 huts have been used for decades by local fishers and hunters. The huts have been classified as unauthorised and are subject to demolition orders and fines from the competent authorities. Of the 168 huts, only 108 have been officially recorded with a known owner; the rest remain without official identification.
The legal status of the huts has been at an impasse for almost two decades. Since 2017, a series of successive annual legislative extensions has suspended the imposition of penalties, demolitions and fines. The latest extension was granted under Law 5261/2025 (Government Gazette A΄ 231/12-12-2025, Article 75), extending the suspension until 31 December 2026.
Extending the deadline until the presidential decree for the area’s Natura sites is issued removes the need to renew the relevant provision annually, while also providing the time needed to take steps towards a definitive resolution of the issue.
It is noted that the approved Special Environmental Study, which includes the Evros Delta, explicitly provides for this use, laying the groundwork for addressing the issue.