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The Journey So Far: From Coal to Clean Energy
Greece is on an exciting journey from coal dependency to embracing renewable energy. Historically reliant on coal, particularly in regions like Western Macedonia in Northern Greece and Megalopolis in Peloponnese, the country is now actively transitioning away from fossil fuels. By 2026, Greece aims to completely phase out coal, a significant shift in its energy landscape. This ambitious change is supported by Greece's revised National Energy and Climate Plan (NECP), which targets a 4.3 GW battery storage capacity by 2030.
By the end of 2024, Greece's third battery storage auction will offer 200 MW of standalone battery projects, bringing the total capacity from all three auctions to 900 MW, inching closer to the initial goal of 1,000 MW. The 1,000 MW battery storage target was set in 2021 as part of Greece's National Recovery and Resilience Plan. This plan was initially introduced in response to the COVID-19 pandemic but shifted focus to support Greece’s green energy transition. It aimed to kickstart investment in battery storage, supporting Greece’s move away from coal and ensuring grid stability as renewable energy sources became more prominent.
The idea is to make renewable energy more reliable by having sufficient battery storage to manage energy generated from sources like wind and solar, especially when generation is low. The Ministry of Environment and Energy's recent decree specifies that this auction is strictly for projects in the coal-dependent regions of Western Macedonia and Megalopolis in Peloponnese, with the latter allocated 50 MW. This strategic focus ensures that regions most impacted by the coal phaseout benefit first from Greece's shift to renewable energy, and it also sets the foundation for achieving the even larger goal of 4.3 GW of battery storage by 2030.
Selected investors will receive grants of up to €200,000 per MW for their battery energy storage systems (BESS). BESS are crucial as they store surplus electricity generated from renewable sources, making energy available when needed most. To ensure efficiency, the highest bid in the auction is capped at €145,000 per MW per year, striking a balance between encouraging investment and maintaining cost-effectiveness.
The Regulatory Authority for Waste, Energy and Water (RAAEY) is set to announce the auction in the coming weeks, signalling the start of this exciting opportunity. There’s already strong investor interest, with hundreds of applications submitted this year alone. However, with the strict timeline requiring installations to be completed by April 2026, competition is fierce and the stakes high.
This auction is an important step towards Greece's renewable energy evolution, proving the country's commitment to a cleaner future. With clear timelines, funding strategies, and a vision for a sustainable energy landscape, Greece is firmly on track to becoming a regional leader in renewable energy storage.
