EU Deploys EIB to Cut Energy Costs - What It Means for Greece

10:21 19/2/2025 - Πηγή: Dikaiologitika

The European Commission is launching a new initiative to support energy-intensive industries, with the European Investment Bank (EIB) playing a key role in lowering energy costs

and boosting competitiveness.

As part of this plan, the EIB will provide guarantees for power purchase agreements (PPAs), helping businesses secure lower electricity prices through long-term contracts while minimizing financial risk. Additionally, the bank will support investments in upgrading and expanding electricity grids - an essential step for integrating more renewable energy into the system.

For Greece, where businesses face some of the highest electricity costs in Europe, these measures could be a game-changer. Energy-intensive industries such as manufacturing and exports have struggled with price volatility, putting them at a competitive disadvantage. Access to stable, lower-cost electricity through PPAs could provide much-needed relief, making Greek industries more resilient and internationally competitive.

Grid modernization is also a critical issue for Greece. As the country increasingly relies on renewable energy sources, such as wind and solar, outdated infrastructure has slowed the transition. Expanding grid capacity would accelerate the shift to renewables, further reducing electricity costs and strengthening Greece’s energy security.

Beyond energy, the broader EU plan includes streamlining state aid regulations and cutting electricity taxes to enhance industrial competitiveness across Europe. If fully implemented, Greek businesses could benefit from more flexible funding options and lower operating costs, stimulating investment and growth.

This initiative is part of the EU’s wider strategy to protect its industries from global challenges, including Chinese state subsidies and U.S. protectionist policies.

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