The Greek Energy Regulatory Authority (RAAEY) has officially approved the annual incentive mechanism for the next generation of energy storage power plants, establishing the calculation method for operational subsidies through Resolution E-65/2025 published in the Government Gazette.

The system will take effect on January 1, 2026, aiming to establish a stable and predictable investment framework for energy storage and promote the transformation of the energy system. As a institutional bridge for Greece's new electricity market, energy storage facilities will be developed as a key pillar supporting the integration of high proportions of renewable energy.

The new mechanism establishes a “reference income” benchmark for each energy storage power plant. If the actual net market income falls below the target value, the government will cover the difference; conversely, if there is excess revenue, the power plant must return part of the profits. The calculation cycle has been shortened from three years to one year, significantly improving prediction accuracy and settlement efficiency. This design reduces investment risk through income guarantees while maintaining market competition pressure through a profit return mechanism.

The RAAEY scheme also introduces a technical performance incentive and penalty mechanism, encouraging power plants to participate in market operations in a way that maximizes system benefits and avoids over-reliance on government subsidies. This decision sends a clear signal to domestic and international institutional capital: Greece is building a regulatory environment conducive to long-term investment. In the context of intensifying competition in green investment, this model balancing safety and competitiveness provides critical development support for energy storage technologies that have not yet fully commercialized.