Why does the 2,700 MW of new Greek renewable installations in 2026 lack sufficient grid curtailment management?

The rapid expansion of solar capacity outpaces the development of energy storage infrastructure. This imbalance intensifies midday production concentration, leading to frequent negative wholesale prices and larger generation curtailments.

What specific megawatt breakdown characterizes the 2,700 MW of new Greek renewable installations in the first nine months of 2026?

Solar photovoltaics accounted for 2,100 MW, while wind farms contributed only 600 MW to the total. This distribution means solar technology represented nearly 78% of all new installations during this period.

How does the lagging battery storage development affect Greek solar developers facing new market conditions and potential contract extensions?

The lack of storage capacity fails to offset the imbalance created by solar dominance, increasing financial risks for developers. Negotiations with the European Commission for five-year contract extensions aim to reduce annual burdens amid these challenging market revenues.

Greece: AP: New 2,700 MW Installations in First Nine Months Lack Grid Curtailment - Solar 'Monoculture' Unchecked

The expansion of domestic renewable energy capacity is continuing at full speed, with new installations reaching 2,700 megawatts in the first nine months of 2026, according to information from energypress. In fact, estimates converge on the view that an additional 500 megawatts will be added by the end of the year, bringing the total annual performance to 3.2 gigawatts.

If this specific forecast is confirmed, 2026 will mark a record year for new renewable energy installations, surpassing the previous historical high of 2024, when approximately 2.73 gigawatts were added. However, this impressive growth has a negative side, as it is not accompanied by a corresponding strengthening of energy storage. Meanwhile, the near-total dominance of solar photovoltaics over wind energy continues.

It is indicative that of the 2,700 megawatts installed in the nine-month period, 2,100 megawatts were solar photovoltaic and only 600 megawatts were wind farms. Consequently, solar technology accounted for nearly 78% of new installations, intensifying the imbalance in the renewable energy mix and the concentration of “green” production during midday hours.

Nearly 20 gigawatts by the end of September

With the new additions, total installed renewable energy capacity reached 19.9 gigawatts by the end of September, up from approximately 17.2 gigawatts at the end of 2025. Of today’s capacity, 13.6 gigawatts are attributable to solar photovoltaics and 6.295 gigawatts to wind, compared to 11.5 and 5.695 gigawatts, respectively, at the end of the previous year.

This trend further intensifies concerns regarding the power system’s ability to absorb the increasing generation from renewable sources. This is because the rising penetration of solar photovoltaics exacerbates electricity surpluses during hours of high solar irradiance, creating the conditions for more frequent negative prices in the wholesale market and larger curtailments of generation.

At the same time, battery development is significantly lagging behind the pace of renewable energy deployment. Even if the Ministry of Energy and Environment’s target of adding approximately 1 gigawatt of storage capacity within 2026 is achieved, analysts note that this portfolio does not even offset this year’s new installations. Consequently, for approximately two decades, batteries will likely struggle to mitigate the worsening imbalances.

Pressures return from spring

Naturally, in the current context, the upward surge in prices on the domestic Day-Ahead Market (DAM) – in sync with trends across Europe – has significantly reduced the periods of negative prices, as well as production curtailments. However, this specific development does not negate the structural problem, which is expected to resurface with greater intensity no later than the upcoming spring.

Indeed, given the further increase in photovoltaic capacity, pressures are expected to be even greater for parks operating under Contracts for Difference (CfD). Increased curtailments, combined with compensation losses during hours of negative prices, threaten to further deteriorate the financial performance of projects, raising more acute sustainability concerns for a significant share of small and medium-sized producers.

In this context, the interventions announced by the Ministry of Environment and Energy (YPEN) to support photovoltaic installations under CfDs acquire particular importance. As stated by Minister of Environment and Energy Stavros Papastavrou at the energypress conference, the planned measures include an upfront increase in the tariff for the next two to three years, aimed at enhancing the liquidity of producers.

In parallel, the Minister referred to the negotiations with the European Commission regarding the extension of the operational support contracts by five years, noting, however, that this is a solution with more challenges. However, if the measure secured the consent of Brussels, it could reduce the annual financial burdens of the projects, in a period during which the revenues of photovoltaics are being tested by the new conditions in the market.