The photovoltaic sector in Greece is currently experiencing a surge, leading many applicants for photovoltaic park permits to feel overwhelmed. Officials from the Environment and Energy Ministry have voiced concerns about the overheating of this sector, which has dominated the renewables market in recent years and poses risks to businesses.
Despite warnings from industry executives about potential sustainability issues, the flow of applications for grid connection bids continues unabated. Since the beginning of 2024, grid operator ADMIE has been receiving an average of over 1 gigawatt of applications per month for new projects, indicating a persistent demand despite signs of an oversupply of green energy in the market.
As renewable energy sources (RES) increase, they also bring challenges related to variable production, grid capacity, and mismatches between energy supply and demand. According to an analysis by Green Tank, based on data from ADMIE and grid company DEDDIE, clean energy—including RES and large hydropower—accounted for over half of the energy demand in the first nine months of 2024, hitting a decade-high of 21,990 gigawatt-hours. This marks a 17% increase from the same period in 2023.
However, the rise in renewable energy generation has led to significant energy cuts—output from RES that must be curtailed to balance demand and prevent blackouts. In the first three quarters of 2024, about 673 GWh of RES production was rejected, representing 3.4% of the total energy produced from these sources. This is a notable increase from 228 GWh in total cuts for the entire year of 2023.
Compounding these issues, electricity demand rose by 5.9% in the first nine months of 2024 compared to the previous year. During this period, instances of zero or near-zero prices for electricity also increased dramatically. Prices dropped to zero for 18 hours and remained marginally above zero for 155 hours, compared to just 31 hours in the same timeframe in 2023.
As Greece grapples with the rapid expansion of its photovoltaic capacity, the sector must confront the challenges of managing supply and ensuring grid stability, all while continuing to meet the growing demand for renewable energy.
