Electricity prices - Greece

Greek Electricity Market

1. Energy Sources and Electricity Mix

Rising Renewable Share and Shifting Fossil Fuel Use: Greece’s electricity generation has undergone a rapid shift toward renewables. In 2023, power produced by renewable energy sources (wind, solar) together with hydro reached a historic high – about 57% of total generation. This was up sharply (+8.5 percentage points) from 2022’s level (~48.5%), marking the first time clean energy supplied more than half of annual demand. The remaining 43% in 2023 came from fossil fuels (mainly natural gas, plus lignite coal and a smaller oil-fired portion). Electricity demand actually fell ~2.9% in 2023 (vs 2022), and natural gas use for power dropped ~17% amid high prices. By late 2023 Greece had shuttered most legacy coal plants as part of a plan to fully phase out lignite by 2026–2028, relying instead on expanded wind and solar capacity. Wind power capacity, for instance, exceeded 5 GW in 2023.

Developments in 2024: In 2024, Greece became a net electricity exporter for only the second time in modern history. Domestic demand rebounded by ~5.5% in 2024 after two years of decline, reaching ~56.9 TWh, and this increased load was mainly met by fossil gas generation. Renewable output also grew but could not match the surge in gas-fired production. Clean energy (renewables plus large hydro) still covered just over 50% of total demand in 2024. Natural gas-fired plants generated about 21.3 TWh in 2024 – a 35.9% jump from 2023 – supplying roughly 37% of generation (just 0.623 TWh shy of their all-time high). In contrast, lignite (coal) hit an all-time low output of only ~3.2 TWh (around 5–6% of the mix, down 28% year-on-year and 85% lower than 2014 levels). Oil-fired plants on the non-interconnected islands contributed ~3.9 TWh. Meanwhile, non-hydro renewables (mostly wind and PV) generated about 25.3 TWh in 2024 (≈44% of demand) – continuing to grow but, in the second half of the year, falling slightly behind the combined output of gas, coal, and oil. Thanks to the robust renewables and new interconnections, net imports dropped sharply and Greece recorded a small net export surplus (~0.3 TWh) in 2024, a remarkable turnaround from 2019 when imported electricity had covered 18% of demand (net imports ~9.94 TWh). Overall, by 2025 Greece’s generation mix is roughly half renewables vs. half thermal fuels, with solar and wind providing an increasing share of daytime power, gas turbines supplying flexibility (especially during peak hours or low-wind periods), and lignite’s role minimal as the country nears its coal phase-out targets.

Greece’s push for renewables – like solar PV and wind farms – has led clean energy to supply roughly half of its electricity in recent years. The rising solar output at midday is transforming the grid’s daily load curve and reducing reliance on coal.

Installed Capacity and Imports/Exports: Alongside generation shifts, installed renewable capacity has expanded (e.g. wind and solar together exceeded 10 GW by 2024) and grid upgrades are in progress. The Independent Power Transmission Operator (ADMIE/IPTO) is investing in grid capacity (aiming for 29 GW by 2030 from ~18 GW in 2022) and new interconnectors. Cross-border trading via the Hellenic Energy Exchange and EU market coupling has integrated Greece with neighbors, enabling surplus green power export on windy or sunny days and import during shortages. Notably, in summer 2024 Greece’s wholesale prices dipped below those of the Balkans (a reversal of 2022) as cheap solar at midday fostered exports. These trends illustrate Greece’s comparative advantage in renewable generation – the Prime Minister’s energy advisor noted that moving from heavy imports pre-2020 to net exports in 2024 reflects Greece’s strengthened domestic supply and improved trade balance.

2. Formation of End-User Electricity Prices in Greece

End-user electricity prices in Greece are composed of several components – energy supply costs, network delivery charges, and taxes/levies – each contributing to the final bill. In a liberalized market, retail prices closely track wholesale generation costs, but with add-ons to cover grid infrastructure and policy-driven fees. A typical Greek electricity bill breaks down into: (a) Energy & Supply Cost, (b) Network Charges, (c) Taxes, and (d) Other Levies/Fees.

• Generation/Supply Cost: This reflects the cost of producing or procuring electricity. Retail suppliers buy power through the Hellenic Energy Exchange (day-ahead market, etc.) or bilateral contracts, and this wholesale cost (plus the supplier’s margin and retail costs) forms the base energy rate. During the 2021–2022 energy crisis, this component spiked dramatically – for example, the energy cost for households averaged €0.3348/kWh in 2022 (up from €0.12 in 2021) due to soaring gas prices. By 2024–2025, wholesale prices have eased (the day-ahead market averaged ~€105/MWh in early 2023 vs €279/MWh in 2022), so the energy component of bills has moderated. Still, generation cost typically remains the largest portion of the bill, often about half or more of the total in normal years. The Greek government has at times intervened – for instance, in 2022–2023 a state subsidy (via the Energy Transition Fund) was applied monthly to residential bills to blunt the impact of record-high wholesale prices. By 2025 these subsidies are being phased out as prices normalize and a more transparent tariff structure takes hold (see Section 3).

• Network Delivery Fees: These are regulated charges for use of the transmission and distribution grids (operated by IPTO/ADMIE and HEDNO/ΔΕΔΔΗΕ, respectively). The fees cover the cost of transporting electricity from power plants to consumers, including grid maintenance, expansion, and losses. They are approved by the Regulatory Authority (RAAEY) and apply per kWh (sometimes with a small fixed component). In 2022, network charges for households averaged around €0.0268/kWh. About ~79% of that was distribution network cost and ~21% transmission, reflecting that local distribution is costlier per kWh. For industry and large consumers connected at high voltage, the network tariff is lower (e.g. ~€0.0074/kWh for non-household users in 2022) since they use less of the low-voltage grid. These tariffs are “socialized” – set to recover the regulated revenue of grid operators in a fair way across consumer classes. The network fees in Greece make up roughly 10–20% of a typical household electricity bill. Notably, ongoing grid investments (like island interconnections) are gradually reducing expensive local generation costs (e.g. oil-fired island plants) which had been subsidized via other charges.

• Taxes and Levies: Greek bills include several taxes/levies:

  • VAT: Value-added tax on electricity is applied at the applicable rate (the standard VAT rate is 24%, but Greece has used a reduced rate for electricity – currently 6% for residential power, as part of anti-inflation measures). VAT is calculated on the sum of all other charges.
  • RES Levy (ETMEAR): A renewables support fee (Formerly “ΕΤΜΕΑΡ”) used to fund renewable energy subsidies/feed-in tariffs. In 2022 this renewables levy was about €0.017/kWh for households. It appears on bills as a separate line for supporting renewable and high-efficiency cogeneration.
  • Public Service Obligations (PSO): A levy (known as “ΥΚΩ” in Greek) that funds public service costs – mainly the higher generation cost on non-interconnected islands and social tariffs for vulnerable households. This is typically a per-kWh charge on bills (tiered by consumption levels). The PSO charge ensures remote islands (not yet linked to the mainland grid) receive power at the same regulated rates as the mainland by subsidizing the oil-fueled generators there. In recent years, as major islands are connected by undersea cables, these costs are expected to fall. (Note: The question’s “levies” category would include this PSO, though specific rates vary; e.g. historically around €0.006–€0.008/kWh for average usage).
  • Excise Tax: A small tax on electricity consumption (pursuant to EU Energy Tax Directive) – in Greece this is minimal for households (on the order of €0.0022/kWh in 2022, labeled as an “environmental” or “special consumption” tax).
  • Other Fees: Minor charges such as municipality taxes or the audiovisual fee (for public broadcaster ERT) can appear in bills. For instance, municipalities levy a small fee per kWh for street lighting and garbage services, and the state includes a flat fee (~€0.50/month) for ERT. While small individually, together these add a few percent to the bill.

All these components combined determine the final retail electricity price that end-users pay. Eurostat data (for 2022) showed Greek household electricity prices (excluding taxes) ranged roughly €0.34–€0.42/kWh depending on consumption band – among the higher in the EU, due to heavy reliance on imported gas at the time. By early 2023, prices had fallen significantly (the government’s emergency subsidies helped too), and Greece aligned closer to EU average prices. Going into 2025, with more renewables in the mix and new tariff reforms (see next section), the price formation is becoming more transparent and competitive. Consumers can now compare offers easily via a state-sponsored price comparison website, and they have a choice of fixed, variable, or dynamic pricing contracts to suit their needs.

3. Dynamic Electricity Tariffs: Concept and Framework

What are Dynamic Tariffs? Dynamic electricity tariffs (labeled “orange tariffs” in Greece’s new scheme) are pricing plans where the per-kWh price can vary hour by hour (or in short intervals) in sync with wholesale market prices. In other words, instead of a flat rate all day or a single monthly price, a dynamic tariff passes real-time market price fluctuations through to the end-user. Prices may change each hour of the day, reflecting supply and demand conditions on the grid – for example, electricity is cheap during midday when solar generation is abundant, but more expensive in the evening peak when gas-fired plants often set the market price. This type of tariff encourages consumers to shift consumption to low-cost periods (like running appliances at noon or overnight) to save money, and in doing so it helps smooth out demand peaks and better utilize renewable energy output.

Under a dynamic tariff, the consumer’s meter is read on an hourly (or real-time) basis and each interval is billed at the corresponding market rate. Typically, the reference price is the Hellenic Energy Exchange (HEnEx) Day-Ahead Market clearing price for each hour. Suppliers add their margin or a small fixed fee, but essentially the retail price directly tracks wholesale energy cost in each period. For example, if tomorrow’s noon-hour clearing price is €0.10/kWh and the evening peak price is €0.16/kWh, the dynamic tariff would charge those amounts for consumption in the respective hours (these rates being made known the previous day once the exchange results are out). This dynamic linking gives consumers the benefit of low prices during renewables-rich periods, while exposing them to higher prices when electricity supply is scarce or costly. In effect, risk (and opportunity) from price volatility is shifted to the consumer – but with smart usage, bills can be lower than on a conventional flat tariff.

How They Function and Benefits: The successful implementation of dynamic pricing requires smart metering infrastructure. Traditional analog meters (read monthly) cannot support hourly billing. Greece is in the process of deploying smart digital meters that record consumption in real time and allow remote readings. These meters are a prerequisite for orange tariffs. By 2025, the rollout is well underway: the distribution operator HEDNO plans to install about 500,000 new smart meters by 2025 (on top of ~400,000 by end-2024) as the initial phase, with a ramp-up to over 1 million/year later so that virtually all 7.3 million meters are smart by 2030. As of early 2025, around 600,000 smart meters were already in place (primarily for medium-voltage users and large low-voltage business customers). These early deployments mean dynamic tariffs are first being offered to commercial/industrial consumers who have the required metering.

From a regulatory perspective, Greece is introducing dynamic tariffs in line with EU directives and the Clean Energy Package mandate. EU rules (Electricity Market Directive (EU) 2019/944) require member states to enable consumers with smart meters to opt for dynamic price contracts, and suppliers with over 200,000 customers must offer at least one such contract. Greece transposed this into national policy in 2023. The Regulatory Authority (RAAEY) developed a framework in late 2023 for dynamic (orange) tariffs, and the Ministry of Environment & Energy issued (or is finalizing) the necessary Ministerial Decisions in early 2024/2025 to put it into effect. Under this framework:

• Tariff Categorization: As of January 2024, Greece reorganized retail tariffs into three main types – Fixed (blue), Variable (yellow), and Dynamic (orange). Fixed plans have a constant price for the contract duration (e.g. 12 months). Variable plans are indexed to wholesale prices but on a longer interval (most commonly monthly rate updates or formulas based on monthly average cost). Dynamic plans are truly real-time or hourly pricing tied to the market. The color-coding (blue, yellow, orange) is used in all provider communications to help consumers easily identify the type. Additionally, a standardized “green” tariff was introduced as a default/basic variable tariff that every supplier offers with a uniform structure for easy comparison. As Greece entered 2024, any customer who hadn’t chosen a new plan was temporarily moved to the regulated green tariff, which publishes a clear monthly rate for each provider. This reform improved transparency after the volatile period of ad-hoc subsidies and monthly price announcements during the energy crisis.

• Legal/Regulatory Framework in 2025: A Ministerial Decision (expected in early 2025) “activates” dynamic tariffs formally, following RAAEY’s detailed proposal. In the initial phase, dynamic pricing will be available only to businesses and select consumers that already have smart metering in place. Specifically, from March 2025, large commercial consumers with capacity >25 kVA (e.g. many medium-voltage and big low-voltage customers) can opt into orange tariffs. This group – roughly 155,000 supply points including SMEs, light industry, and municipal facilities – represents about 46% of national electricity consumption. By exposing them to hourly price signals, the aim is to achieve load shifting on a significant portion of demand. The Ministry’s goal is to have 60% of total electricity consumption on dynamic pricing by end of 2025 (which implies continued smart meter rollout and inclusion of many households in the following phase). For smaller businesses and residential consumers, the dynamic tariffs are expected to become available around 12 months after the initial launch – likely by late 2025 or early 2026 – once enough smart meters are installed in the mass market. Regulators plan to update the list of eligible suppliers every six months as the number of metered customers grows, ensuring all large providers participate.

• Tariff Structure and Protections: Dynamic tariffs will follow the day-ahead wholesale price curve, but suppliers must still publish or communicate the prices to customers in advance (e.g. sending the next day’s hourly prices each afternoon once HEnEx clears). Contracts will typically be for 12 months (to ensure consumers understand terms and avoid too-frequent switching on such plans). Regulators are also discussing safeguards like caps or targeted features for large users – for example, allowing some flexibility in contract terms for big industrials, or discounting fixed charges if they opt for dynamic pricing. The government’s broader intent is that as renewables grow, dynamic tariffs will pass through low costs to consumers and thereby incentivize consumption when green power is plentiful. Initially, however, the risk of price spikes is a concern, so full exposure for households will be phased in gradually and accompanied by education. The “dual-zone” time-of-use tariff introduced in 2024 (with cheaper rates at midday and night) is seen as a stepping stone, familiarizing consumers with shifting usage patterns before true real-time pricing arrives. For instance, the longstanding night tariff (previously 11pm–7am) was modernized into a bi-zonal tariff that also includes a midday low-cost window (e.g. 11am–3pm in summer) to take advantage of solar production. This is effectively a simplified dynamic signal to encourage daytime consumption and is automatic for those with older analog meters on night tariffs until they get a smart meter. By 2025, many consumers have thus begun responding to price signals (e.g. running water heaters or appliances at lunchtime) even before full dynamic pricing kicks in.

In summary, dynamic tariffs in 2025 are a key innovation in the Greek retail market, aligning it with EU market design goals. They function by linking retail rates to HEnEx wholesale market prices on an hourly basis, enabled by smart meters and supported by a new regulatory framework. The expected benefits are lower electricity costs for consumers who are flexible, a “flattened” load curve (mitigating evening peaks), and more efficient use of Greece’s abundant midday solar and off-peak wind generation. Over time, as millions of smart meters are deployed (accelerated by Recovery and Resilience Facility funding and the PPC/HEDNO rollout), dynamic pricing will become accessible to most households – empowering them to participate in the energy transition by actively managing their consumption.

4. Major Electricity Providers Offering Dynamic Tariffs

By 2025, Greece’s retail market has multiple competitive providers, and the regulatory mandate is that the largest suppliers must offer dynamic (orange) tariff options. In fact, RAAEY’s proposal specifies that in the first phase, six suppliers – those serving over 200,000 customers each – are required to introduce dynamic tariffs. These major providers (collectively accounting for the vast majority of retail supply) and their dynamic tariff plans are:

• Public Power Corporation (PPC, ΔΕΗ): The former monopoly and still the largest electricity provider (roughly 60% market share in 2023) is at the forefront of dynamic tariffs. PPC, being state-controlled, has been closely involved in the tariff reforms. It offers the default “green” reference tariff and is gearing up to roll out an orange tariff as smart meters proliferate. PPC’s dynamic plan will leverage its integration with the HEnEx market – essentially passing through wholesale prices to consumers. The company is also upgrading infrastructure via its subsidiary HEDNO (which handles meter replacements) to enable this. We can expect PPC to market the dynamic tariff as a way for customers to tap into cheaper midday solar power and low nighttime prices. (For example, PPC has highlighted that on a sunny day wholesale prices at noon can be 30–40% lower than in the evening, implying significant savings for shifting consumption.) PPC’s dynamic tariff will likely come with tools for customers (mobile app or web) to monitor hourly prices and their usage. As of 2025, PPC’s dynamic offering for big business customers is being piloted, with residential rollout to follow once meters allow.

• Protergia (Mytilineos SA): Protergia is the largest private-owned supplier (part of the Mytilineos energy group, which also owns power plants). It is one of the six mandated providers. Protergia has a history of innovative tariffs and already provides time-of-use plans (e.g. a “Value 4Family” two-zone tariff for households was launched to encourage using power in off-peak times). For 2025, Protergia is preparing to offer a fully dynamic tariff to customers with smart meters. This will allow its customers to benefit directly from Mytilineos’s low-cost generation (including renewables) when available. Protergia’s plan likely features a small fixed monthly fee and hourly pricing at HEnEx cost plus a transparent margin. The company will aim this product at tech-savvy consumers and businesses looking to minimize energy cost by load-shifting (e.g. EV owners charging at night, etc.). Since Protergia is known for digital tools, expect a robust app showing real-time prices and perhaps alerts for high-price hours.

• Heron: Heron (Ήρων) is a major private supplier (backed by GEK Terna and GDF Suez) and also operates gas-fired plants and renewables. It is among the six large suppliers designated to offer dynamic pricing. Heron has experience with demand response programs and was one of the first to introduce flexible tariffs in Greece. Its dynamic tariff in 2025 will allow mainly business customers initially to peg their rates to wholesale market swings. Heron is likely to promote the service to commercial clients with significant energy use (retail chains, small industries), advising them on how to optimize consumption around price signals. The plan will capitalize on Heron’s generation assets; for example, when Heron’s wind farms produce surplus at night, dynamic tariff customers could see very low prices. Heron’s website and customer portal are expected to publish next-day hourly prices and provide guidance on interpreting the “orange” pricing curve.

• Elpedison: Elpedison (a joint venture of Hellenic Petroleum and Italy’s Edison) is another top-tier supplier required to have an orange tariff. Elpedison serves many urban customers and has a generation portfolio (including gas plants). In 2025, Elpedison’s dynamic tariff will be positioned as an advanced offering for consumers who want wholesale-indexed energy rates. The company has likely set up its billing system to handle half-hourly or hourly metering data and align it with HEnEx clearing prices. Elpedison may bundle its dynamic tariff with value-added services – for instance, energy management advice or smart home devices – to help consumers automate usage shifting (such as programming air-conditioning to run more at midday). Given its parent companies, Elpedison might also leverage its fuel retail network (e.g. EV chargers at Helleniq Energy gas stations) where dynamic pricing could incentivize EV charging at off-peak times. Overall, Elpedison’s dynamic plan will be similar in structure to others – wholesale price pass-through – but with its own loyalty perks or discounts on fixed fees to attract customers.

• NRG: NRG is a fast-growing supplier owned by Motor Oil Hellas. It has aggressively competed on price and offers combined energy packages (electricity + gas, or electricity with telecom rewards). NRG is one of the six big providers mandated to offer dynamic tariffs. Its dynamic tariff, launching in 2025, will likely appeal to small businesses and younger urban consumers. NRG’s marketing might emphasize the “real-time savings” aspect – e.g. using social media to notify customers of low-price hours (“cheap power this afternoon – run your laundry now!”). Being part of a refinery/oil company, NRG could also integrate dynamic electricity pricing with future smart EV charging services (Motor Oil has interests in EV charging infrastructure). The NRG dynamic plan is expected to have no long-term lock-in (as per Greek rules, consumers can switch tariffs or providers without penalty, except for fixed-term blue contracts). Thus NRG will strive to retain dynamic tariff customers through an engaging user experience and possibly additional discounts (like tying in its loyalty programs for fuel or supermarket vouchers for those shifting consumption).

• Zenith (Zenith SA): Zenith is the power and gas supply company of Thessaloniki/Thessaly (originally a gas utility owned by DEPA and ENI) that has expanded nationwide in electricity retail. It is included in the six large providers exceeding 200k customers. Zenith’s dynamic tariff offering in 2025 will likely target its existing dual-fuel customers and new clients in Northern Greece. Zenith can leverage its local brand trust to educate consumers about the benefits of dynamic pricing. For instance, households in Thessaloniki with smart meters could join an “Orange plan” and see lower bills if they adjust usage. Zenith, like others, will provide day-ahead price info and has to meet the same transparency requirements (publishing its tariffs and color-coding them on the RAAEY portal). Because Zenith comes from a natural gas background, it might also highlight how dynamic electricity tariffs pair with smart thermostats or heat-pump scheduling – helping consumers on both electricity and gas fronts to reduce cost. By late 2025, Zenith is expected to roll out dynamic pricing to qualifying customers and actively promote the environmental angle (using more renewable-sourced power when it’s available).

These six companies dominate the retail market and thus will set the tone for dynamic tariff adoption. According to the regulatory plan, each of them must offer at least one dynamic tariff product and keep it available for eligible customers. Smaller electricity providers (of which Greece has over a dozen) are not initially obligated to offer orange tariffs until they grow beyond the 200k-customer threshold, but many are likely to follow suit voluntarily to stay competitive in niche segments. For example, smaller firms like Watt+Volt (recently acquired by PPC) or Volterra might introduce their own dynamic-like options (perhaps for EV owners or high-consumption villas) as smart metering becomes ubiquitous. By the end of 2025, we expect the dynamic tariff offerings to expand, with the “orange” category moving from a pilot phase into mainstream for businesses, and setting the stage for household adoption in 2026.

Each provider’s dynamic plan will have its specific terms (some may bundle a fixed monthly charge, others might include a cap or floor on prices initially, etc.), but all are fundamentally linked to the Hellenic Energy Exchange’s hourly market clearing prices. Consumers can thus shop between these providers knowing the structure is similar and compare whose fees or value-added services make it most attractive. The introduction of dynamic tariffs – alongside the existing fixed and monthly-variable options – is one of the key regulatory changes shaping the 2025 electricity market in Greece. It is designed to increase competition and efficiency, empower consumers with choice, and facilitate the country’s continued shift to renewable energy by better aligning consumption with generation. As the energy landscape evolves (with more PV, wind, storage, and interconnections coming online), dynamic pricing is expected to play a crucial role in Greece’s electricity market, providing both economic and grid stability benefits.

Peak and Off-Peak Hours

Greece 2024 – Average Hourly Wholesale Electricity Price (HEnEx)