Μake us preferred on Google The rapid expansion of renewable energy in Greece and across Europe has yet to translate into consistently lower electricity costs for industry. Insufficient storage, delays in grid development, sharp wholesale price fluctuations and charges linked to the electricity balancing market continue to weigh on businesses and consumers.
Energy costs remain one of the biggest obstacles to the competitiveness of Greek industry. Some 72% of Greek businesses identify them as a major barrier to their operations, compared with an average of 37% across the European Union.
The figures were presented by Vicky Loizou, director general of the Hellenic Federation of Enterprises (SBE), at a conference organized by the Institute of Energy for Southeast Europe (IENE). They are among the findings of a report on Greek industry scheduled to be presented in Athens.
European electricity costs remain above those in China and Texas
The central question for industry is whether the growing share of renewable electricity can actually deliver more competitive energy prices — and how the costs of the energy system are ultimately passed on to consumers.
Andreas Petropouleas, energy management director at ENERWAVE and chairman of IENE’s Electricity Committee, said renewable energy sources covered 49.9% of gross electricity consumption in the EU in 2025. Yet the cost gap with other major industrial economies remains substantial.
Average electricity prices for energy-intensive industries reached €94.7 per megawatt-hour (MWh) in the EU, compared with €60.2/MWh in China and €44.2/MWh in Texas.
In Greece, large industrial consumers with annual electricity consumption of at least 150 gigawatt-hours (GWh) paid an average of €113/MWh during the first half of 2026, slightly above the EU average of €112.8/MWh.
Europe’s gradual move away from Russian natural gas has also increased its exposure to the international liquefied natural gas (LNG) market. EU imports of Russian gas fell from 152 billion cubic meters in 2021 to 36 billion cubic meters in 2025. Over the same period, LNG imports reached a record 146 billion cubic meters, with 58% coming from the United States.
Petropouleas said diversifying supply sources strengthens energy security but does not eliminate Europe’s exposure to international LNG price fluctuations, which require effective management.
Renewable generation is outpacing grid development
A major challenge is the mismatch between the pace of renewable energy development and the expansion of electricity networks.
Renewable energy projects can be completed in one to five years, while new grid infrastructure can take five to 15 years. This gap puts pressure on the electricity system because renewable generation is not necessarily available at the times when demand is highest.
Petropouleas illustrated the problem with a hypothetical example: A 100-megawatt (MW) solar farm produces 600 MWh over a 24-hour period, equivalent to the daily consumption of a facility with a constant load of 25 MW.
However, because electricity production and consumption do not occur at the same time, solar power directly covers only 42.5% of the facility’s demand. The remainder must come from other sources because sufficient storage capacity is not available.
The mismatch is also reflected in the amount of renewable electricity that must be curtailed — meaning that grid operators reduce production to maintain the stability of the power system.
Estimated renewable energy curtailments reached 1,905 GWh between January and August 2026. Meanwhile, the relative value of solar electricity fell sharply: The price of a solar MWh dropped from 71.9% of the average market price in the first half of 2024 to 44% in the same period of 2026.
The market also recorded 788 hours with electricity prices below €0.05/MWh during the first half of 2026, compared with 168 hours in the corresponding period of 2025.
Battery storage has begun to help reduce curtailments, but installed capacity remains limited. Batteries connected to the electricity system totaled approximately 0.8 GW, compared with around 12 GW of installed solar capacity.
Wholesale prices surge during evening hours
The consequences of the mismatch between renewable production and demand are also evident in the sharp fluctuations in wholesale electricity prices.
According to Petropouleas, on Oct. 29, 2026, the average price on Greece’s day-ahead electricity market was approximately €106/MWh between 9 a.m. and 3 p.m.
Between 5 p.m. and 10 p.m., however, the average climbed to €409/MWh, reaching a peak of €450/MWh at 6 p.m.
Petropouleas outlined a series of measures to ease the burden on industry. Immediate steps, he said, should include reducing charges for medium- and high-voltage consumers, providing targeted support to eligible industrial sectors and developing electricity supply contracts tailored to each company’s consumption profile and operating schedule.
Over the medium term, he called for faster investment in electricity grids and interconnections, greater storage capacity and more flexible electricity demand.
Balancing-market charges cost consumers €756 million
Antonis Kontoleon, chairman of the board of the Association of Industrial Energy Consumers (EBIKEN), focused on the operation of the electricity balancing market, arguing that the way prices are set and imbalances are settled creates distortions and significant costs for consumers.
According to figures he presented at the IENE conference, two categories of additional charges, known as Adjustment Accounts LP2 and LP3, cost consumers a combined €756 million in the first nine months of 2026. The charges are linked to the operation of the electricity market and the balancing of the power system.
During some weeks, the average cost of these charges reached as much as €45/MWh, Kontoleon said.
He also raised concerns about the -€100/MWh lower price limit in the downward balancing market operated by the Hellenic Energy Exchange.
According to Kontoleon, the mechanism can create incentives for strategic behavior by electricity producers whose actual output falls below the quantities they have declared. In some cases, he said, producers can receive payment for electricity sold on the day-ahead market while also being compensated for their deviation through the balancing market.
At least 3 TWh of renewable energy goes unused
Kontoleon estimated that at least 3 terawatt-hours (TWh) of renewable electricity are lost because of insufficient storage capacity.
If that energy could be stored and fed into the grid during peak evening hours, he argued, it would reduce the need for natural gas-fired generation, lower carbon emissions and bring down wholesale electricity prices.
He estimated that the value of the lost electricity could represent a cost of at least €600 million.
The figures highlight the challenge facing Greece’s energy transition: expanding renewable generation alone is not enough to ensure cheaper electricity for industry. Grid capacity, storage and the way the electricity market operates also determine whether the benefits of clean energy reach businesses and consumers.
