Greece has taken a significant step toward decarbonizing its islands with the establishment of a fund designed to transition from fossil fuels to renewable energy. The agreement, signed on the island of Naxos on Thursday, involves the Greek government, the European Commission, and the European Investment Bank (EIB).
The fund will enable Greece to invest €5.6 billion in renewable energy projects and energy infrastructure across its islands, which are currently dependent on expensive oil-fired power stations. These stations are prone to breakdowns, particularly during the peak summer tourist season when energy demand skyrockets.
Greek Prime Minister Kyriakos Mitsotakis emphasized the importance of the initiative, stating, “The fund we're presenting today is a financial tool which will facilitate our islands to make green transition a reality.” He noted that while Greece has made progress in renewable energy—now accounting for nearly half of its power generation—the country still relies heavily on imported oil and gas.
Key Projects
The fund will prioritize the development of:
These projects aim to reduce the islands' reliance on fossil fuels, cut energy costs, and enhance the reliability of power supplies.
Since 1963, the EIB has invested nearly €50 billion in various sectors across Greece, including infrastructure, tourism, and energy. EIB Chair Nadia Calviño expressed confidence in the fund’s potential to transform Greece’s islands into models of sustainability and resilience.
Tourism is a cornerstone of Greece’s economy, and its energy-intensive islands are critical to the sector's success. By shifting to greener energy solutions, Greece aims to lower operational costs, enhance energy security, and reduce carbon emissions, aligning with broader European Union climate goals.
