Greece Partners with EU and EIB to Launch Fund for Renewable Energy Transition on Islands

On Thursday, Greece finalized an agreement with the European Commission and the European Investment Bank (EIB) to establish a fund aimed at helping its tourism-dependent islands transition away from fossil fuels and lower energy costs, as announced by the Greek government. Greek Prime Minister Kyriakos Mitsotakis held a meeting with EIB Chair Nadia Calviño that same day, before attending a signing ceremony for the agreement on the island of Naxos.

Most of Greece’s sunlit and rugged islands in the Aegean and Ionian Seas primarily rely on expensive oil-fired power stations, which sometimes fail during peak tourist seasons. Although Greece has advanced in increasing its renewable energy sources to nearly half of its electricity production, Mitsotakis noted that the country still depends significantly on costly oil and gas imports.

During the event in Naxos, Mitsotakis stated, "The fund we're presenting today is a financial tool which will facilitate our islands to make green transition a reality," in the presence of high-ranking European Union and EIB representatives.

The initiative aims to enable Greece to mobilize €5.6 billion ($2.11 billion) to accelerate the development of power connections, as well as wind and solar power stations with battery storage, while also supporting the creation of water reservoirs for hydroelectric power and charging stations for ships docked at the islands, according to a senior EIB official at the event.

Since 1963, the EIB has invested nearly €50 billion in Greece, supporting small and medium-sized enterprises, infrastructure, tourism, and energy sectors.