Greece Moves to Shield Renewable Energy Producers From Zero - Price Power Market Penalties

Greece is revising its renewable-energy support rules to shield producers from penalties when wholesale electricity prices hit zero. Legislation submitted to Parliament would suspend state-backed operating support only if power prices remain negative for more than two consecutive hours, instead of cutting support when prices stay at zero or below. The change applies retroactively from June 1, 2026. The reform targets renewable energy and high-efficiency cogeneration plants operating under Greece’s Contracts for Difference (CfD) scheme. Officials say the update aligns with practices in several EU member states, where negative prices—not zero—are viewed as a clearer sign of market distortion. As solar and wind output expands, oversupply has become more frequent, sending prices to zero and occasionally into negative territory. Support continuing during zero-price periods aims to improve revenue certainty and reduce cash-flow volatility for investors and lenders.