The European Commission and the European Investment Bank (EIB) have approved a €2.0 billion investment fund to support the decarbonization of Greece’s islands through electricity interconnections, renewable energy, energy storage and electric mobility.
The Islands Decarbonization Fund, developed jointly by the Greek government, the European Commission and the EIB, will finance projects aimed at reducing the islands’ reliance on costly diesel-fired power generation while improving energy security and accelerating the country’s green transition.
About €1.1 billion of the fund will be allocated to electricity interconnections and related infrastructure in the Dodecanese, Cyclades and northeastern Aegean islands.
Greece’s Independent Power Transmission Operator (IPTO) has already begun construction of the mainland-to-Kos electricity interconnection, including a high-voltage direct current cable system between Corinth and Kos.
A further €977 million will support renewable energy and energy storage projects, with particular emphasis on self-consumption solar PV systems for homes, hotels, businesses, hospitals, schools, public buildings and agricultural facilities.
The programme will also provide €200 million for multipurpose dams and reservoirs and €56 million for electric vehicle charging infrastructure.
