The government is attempting a strategic intervention on the issue of energy costs, with an inter-ministerial meeting taking place today at the Maximou Mansion with the participation of Vice President Kostis Hatzidakis and Economy Ministers Kyriacos Pierrakakis, Development Takis Theodorikakos, and Energy and Environment Stavros Papastavrou.

The government faces a double gamble: to support industry that has consistently complained in recent years about higher energy prices against European industries and calls for predictability in energy costs, and to protect consumers from new charges on electricity bills that may appear in the retail market ahead of winter.

According to reports, and following successive pressure from the energy-intensive industry calling for support for the country’s productive core, the government appears to be acquiescing to the implementation of a new mechanism aimed mainly at industrial production, while also focusing on retail tariffs affecting millions of households.

The new support model

The mechanism being considered for industry is based on the Italian Energy Release 2.0 scheme. It envisages that large industries will secure renewable electricity at a fixed price for three years through the Renewable Energy Support Operator (RES Support Operator). In return, companies will commit to implement or finance new renewable energy projects, and will return an equivalent amount of energy over 20 years at the same pricing.

In this way, it is estimated by the market that around 60 energy-intensive plants consuming 6 TWh per year will gain a stable operating framework. The costs for the first three years are not expected to exceed EUR 250 million, while the domestic industry is calling for the measure to be applied retroactively from July 2025, when a mechanism was approved by the Commission.