Greek regulator steps in to prevent energy communities misuse

Legitimate energy communities have suffered in Greece, as private investors have been taking advantage of the status to promote disguised commercial projects.

Normally, energy communities are set up to help citizens, businesses and other special consumer groups to benefit from lower energy costs using renewable energy.

There are two categories: renewable energy communities (RECs) and citizen energy communities (CECs). They have priority in obtaining licenses compared to commercial investments. They are exempt from letters of guarantee and have access to national and European funding and a higher feed-in tariff.

A law was adopted in 2023 to restrict production licenses for energy communities. It also had the goal of excluding other market actors from participating. However, it appears that the attempt was unsuccessful.

A gap in the regulatory framework allowed private companies and individuals to create energy communities and benefit from the various licensing and financial benefits to promote projects that would otherwise not be eligible. In short, such investors appear as legitimate small participants, while actually representing larger private companies.

Psomas: Just 2.8% of installations are for self-consumption

By April 2025, energy communities installed facilities totaling 2.24 GW, of which just 62 MW (or 2.8%) for self-consumption. They also held about 22% of total licensed capacity for photovoltaics in the country, according to energy consultant Stelios Psomas.

The law stipulates that legal entities participating in REC and CEC management boards must be mutually independent and not connected directly or indirectly through other businesses or natural persons.

According to the Regulatory Authority for Energy, Waste and Water (RAAEY or RAEWW), the minimum of 15 legal entities to set up a community refers to 15 independent entities. Otherwise, there is no guarantee they would act towards the benefit of local communities and not as a vehicle to promote the commercial interests of individuals or business groups, it pointed out.

RAAEY said it would intervene to enforce the essence of the law more aggressively. It added that if irregularities are discovered, an energy community may lose its production license. The regulator revealed it would conduct investigations both due to complaints and on its own.

Greece downgraded because of lost EU funds

The government recently lost EUR 100 million from the European Union’s Recovery and Resilience Facility (RRF), aimed at promoting self-consumption for vulnerable households through forming an energy community.

The loss of funds for the Apollo program triggered a downgrade by REScoop, the European federation of energy communities. It said there were no more dedicated European funds to support energy communities in Greece.

EECF to provide a second chance

Greek energy communities may gain another source of European funding through the European Energy Communities Facility (EECF).

More than 140 of them across Europe will be supported through the program with EUR 45,000 per project. Greece submitted 29 proposals in the recent first call that took place at the end of September. The final list of beneficiaries will be announced in December, with a second call expected in May 2026.