The investment program of the Islands Decarbonization Fund has been approved by the European Commission and the European Investment Bank, the Ministry of Environment and Energy announced today. The Fund includes projects and initiatives totaling 2.3 billion euros, which, as the Ministry notes, form a comprehensive strategic investment plan for the energy and environmental transformation of the Greek islands.
The Islands Decarbonization Fund was established exclusively for Greece as a unified funding framework that combines the electrical interconnection of the islands with the development of clean energy, storage, and electric mobility.
Approved interventions are classified into the following categories:
-1.1 billion euros for power interconnections and related energy infrastructure in the Dodecanese, the Cyclades, and the islands of the northeastern Aegean.
-977 million euros for renewable energy projects with storage, with a particular focus on the installation of self-consumption photovoltaic systems in homes, hotels, restaurants, stores, offices, hospitals, care facilities, schools, public buildings, agricultural facilities, and farmland.
-200 million euros for multi-purpose dams and reservoirs.
-56 million euros for the development of electric vehicle charging infrastructure.
«These investments will play a decisive role in reducing the carbon footprint of the Greek islands, strengthen their energy autonomy and security, and accelerate the green transition of the Greek islands,» emphasizes the Ministry of Environment and Energy, adding:
«Of particular importance are the electrical interconnection projects, which will contribute to the integration of the island power systems with the mainland grid, reducing the operation of diesel-powered plants, enabling the use of more clean energy, lowering energy costs, and enhancing the tourism product. At the same time, renewable energy and energy storage projects will enhance the islands’ energy autonomy and the flexibility of the electricity system.
The Fund’s estimated resources are currently estimated at approximately 2 billion euros, based on current prices of emission allowances in the European Union Emissions Trading System. The amount of the Fund’s resources will depend on the evolution of the price of emission allowances during the Fund’s operational period.
The Ministry of Environment and Energy, in collaboration with the relevant agencies, is moving forward with the detailed planning of projects and the timely and effective implementation of approved measures to strengthen the resilience of our islands.».
The European Commissioner for Climate Action, Net-Zero Emissions, and Green Growth, Mr. Wopke Hoekstra, stated:
«I warmly congratulate Greece on finalizing the design of the Program, which has been approved by the European Investment Bank. Now is the time to put the Program into practice. This Fund is an excellent example of how revenues from the Emissions Trading System should be used: to finance clean energy that directly benefits consumers on the Greek islands—leading to cleaner, safer, and more reliable electricity, better interconnections, and enhanced electric vehicle charging infrastructure.».
The Minister of Environment and Energy, Mr. Stavros Papastavrou, stated:
«The approval of the Islands Decarbonization Fund’s investment program by the European Commission and the European Investment Bank marks yet another significant step toward the energy transition of our. Following the Social Climate Fund, we are securing yet another important financing tool that transforms our energy plans into concrete projects for our citizens. With the Islands Decarbonization Fund, we are putting one of our core commitments into action: ensuring that our islanders have the same opportunities and the same energy security as every citizen on the Greek mainland. This is a major step toward more energy-independent and secure islands, with affordable energy for citizens and businesses, clean energy from the sun and wind, and better prospects for growth. This is what energy democracy means to us: no citizen and no island in our country should be left behind in the energy transition. The approval of this program also serves as a strong example of Greece’s cooperation with the European Commission and the European Investment Bank. Warm thanks are extended in particular to Deputy Minister Nikos Tsafos for his substantial contribution to this successful endeavor, as well as to European Commissioner Wopke Hoekstra, for his support and constructive cooperation.».
