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Greece's solar crisis with PV systems: When the sunshine becomes a problem

Published on: June 12, 2025 / Updated on: June 12, 2025 – Author: Konrad Wolfenstein

Greece's solar crisis with PV systems: When sunshine becomes a problem – Image: Xpert.Digital

Greece's solar power dilemma: When too much sunshine becomes a problem

The paradox of the solar boom

Greece is currently experiencing a remarkable paradox: The country has expanded its solar power capacity to almost 10 gigawatts in just a few years, with 2.5 gigawatts added last year alone. However, this unprecedented success in the energy transition is now leading to unexpected problems. While other countries are fighting for every ray of sunshine, Greece has to shut down its solar plants precisely when the sun is at its strongest.

In May 2024, the Greek transmission system operator was repeatedly forced to shut down thousands of medium-sized power plants for several hours at a time – an emergency measure to prevent grid overload. These drastic measures highlight the fundamental problem: the rapid expansion of photovoltaics occurred without corresponding investments in storage capacity and grid infrastructure.

Specific effects of overproduction

Easter 2024 as a warning signal

A particularly vivid example of the problem was provided by the Greek Orthodox Easter in May 2024. When hundreds of thousands of Athenians left the capital to celebrate the holiday on the islands and in their home villages, it triggered an “alarm at the power plants.” The surplus electricity could not be fully consumed, exported, or stored, resulting in massive power outages.

Dramatic figures on energy waste

The scale of the problem becomes clear when looking at concrete figures: As early as 2024, 860 gigawatt-hours of green electricity had to be curtailed – this corresponds to 3.3% of total renewable electricity generation in the same period and represents more than double the figure for 2023. This value is expected to rise to between 1.2 and 1.5 TWh in 2025.

In April 2024, electricity supply exceeded demand on 17 days, making negative electricity prices the norm. From May 3rd to 7th, the Greek transmission system operator even had to halt electricity imports from Italy, Albania, North Macedonia, and Turkey to ensure the safe operation of the Greek power grid.

Structural causes of the crisis

Uncoordinated expansion

The core problem lies in the imbalance between generation and infrastructure. While more and more photovoltaic projects have been approved over the years, the expansion of electricity storage and grid capacity has stalled. The country now produces more solar power than it can absorb or transmit during peak demand.

Network capacity problems

Nearly a quarter of the high/medium voltage transformers belonging to the Greek grid operator are experiencing significant capacity problems. Of 453 transformers, 29 have reached their thermal limit, 82 have exhausted their short-circuit capacity, and 5 transformers are overloaded in both categories.

Lack of storage capacity

The total capacity of currently operating renewable energy plants is already 15 GW, while the capacity of the existing electricity transmission system is estimated at only 28 to 30 GW. Necessary storage projects are not yet completed, although Greece aims to install storage systems with a total capacity of around 8 gigawatts by 2030.

Government measures and solutions

Revolutionary tariff change

As a radical response to overproduction, the Greek Ministry of Environment and Energy is planning an unprecedented measure: the cheaper night-time electricity tariff will in future be offered during the day between 11 a.m. and 4 p.m. This reversal of the traditional tariff structure is intended to bring electricity supply and demand back into balance.

Promotion of smart household appliances

The ministry is also considering a subsidy program for smart household appliances. This would allow consumers to switch on smart washing machines and dishwashers via an app during the day from work and thus take advantage of the cheaper tariff.

Battery storage initiative

With the publication of its new regulation on March 13, 2025, Greece has established a clear framework for the integration of battery storage systems. A total of 4.7 GW of storage capacity will be released – a clear signal of the strategic importance of energy storage. At a conservative estimate of €200/kWh, this corresponds to a market volume of approximately €1.9 billion.

The European energy transition is reaching its limits: The Greek solar problem

European phenomenon

The Greek problem is not an isolated case. In the Netherlands, citizens are already testing ways to avoid grid overload by selectively switching off solar panels. As part of a pilot project, customers temporarily switched off their solar panels on sunny days for a fee, thereby reducing the load on the electricity grid by up to 57 percent.

Long-term goals despite current problems

Despite current difficulties, Greece is sticking to its ambitious goals. The country aims to increase its share of renewable energy from 46 percent today to 80 percent by 2030. By the target date, 28.7 gigawatts of renewable energy capacity are to be installed – almost three times the current capacity.

Economic importance

The renewable energy sector has become the most spectacular development the Greek economy has seen in recent years. Estimated investments over the last five years amount to €9.5 billion, underscoring the economic significance of this transformation.

Lessons from the Greek solar crisis

The Greek solar crisis highlights a fundamental problem of the global energy transition: the rapid expansion of renewable energies must be accompanied from the outset by the parallel development of storage capacities and grid infrastructure. Greece's experience shows that even too much green electricity can lead to serious problems if system integration is neglected.

At the same time, the country is demonstrating with its innovative solutions – from reversing the tariff structure to massive investment in battery storage – that the challenges are indeed solvable. The Greek solar crisis could thus become a model for other countries that want to avoid similar problems in their energy transition.