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Greece moves to shield renewable energy producers from zero price power market penalties

Greece is introducing a legislative measure to protect renewable electricity producers from losses tied to “zero-price” periods in the wholesale market. Under the amended scheme, operators with Differential Increment Support Contracts (SEDP) will keep receiving operational support for power produced during hours when the day-ahead price is zero for more than two consecutive hours. However, support will be reduced or suspended only if negative prices occur for more than two consecutive hours. The change is set to apply retroactively from June 1, 2026.

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Will Ashley

INTERMEDIATE
5 min read
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Credibility Score: 97/100
Greece moves to shield renewable energy producers from zero price power market penalties

Greece’s Ministry of Environment and Energy has announced a policy shift aimed at protecting renewable electricity producers from financial instability caused by zero-price episodes in the day-ahead power market.

The ministry is amending the existing support framework for renewable operators holding Differential Increment Support Contracts (SEDP). The central change is that producers will continue to receive operational support for electricity generated during hours when the system clearing price is zero, even if that zero-price condition persists for more than two consecutive hours.

Under the updated rules, the point at which support is lost is moved away from zero-price intervals and tied instead to negative pricing. In other words, the penalty mechanism would apply only when negative prices are recorded for more than two consecutive hours.

The ministry says the intervention was developed in consultation with the European Commission and is intended to strengthen renewable producers’ revenue stability, following rising occurrences of zero-price and negative price hours as renewable penetration grows.

Once approved by Parliament, the measure will apply retroactively from June 1, 2026. At the same time, Greece is also pursuing a broader package of measures intended to increase system flexibility and improve how renewables integrate into the grid, including steps to expand energy storage and promote demand-side shifting toward periods of high renewable output.

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