Connection terms for battery storage projects sharing a common grid connection point are expected to reach 500 MW shortly, covering half of the capacity cap introduced under the Ministry of Environment and Energy's latest framework for co-located storage, energypress sources have indicated. Analysts expect the full 1,000 MW allocation permitted under the regulation to be committed within months, with connection terms likely to be granted by October.
The projects will form the next wave of battery storage investments in Greece, following the standalone batteries selected through the three storage auctions and the autonomous projects replacing licences for new thermal power plants, including the Karatzis Group–METLEN battery project. Once connection terms are secured, developers can begin arranging project financing. Bankers say each investment will be assessed individually, although financing is expected to be more straightforward for established energy companies that already hold credit lines and strong balance sheets.
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Projects developed by groups of producers, such as energy communities, are expected to face greater challenges, as banks are likely to require additional guarantees from all participating investors. Lenders remain cautious after prolonged renewable energy curtailments and negative wholesale electricity prices weakened cash flows for many solar projects operating under Feed-in Premium schemes, affecting loan repayments.
Push for battery investments
Following financial close, co-located battery projects could be completed within 12 to 18 months. Schemes requiring new substations are expected to take longer, with around one year needed for equipment procurement and installation, followed by roughly six months for grid connection. The 1,000 MW portfolio will lift Greece's battery storage pipeline from around 1.5 GW currently operating or under construction to approximately 2.5 GW within 18 months.
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A further 4.7 GW of standalone battery projects from the ministry's latest call is also expected to enter the pipeline, supporting Greece's non-binding target of 3 GW of operational storage by 2028. The framework also reserves grid capacity for up to 2 GW of pumped-storage projects, although these require significantly longer development timelines. (Kostas Deligiannis/hcn)
First published on the energy portal energypress.gr
