Greece’s Ministry of Environment and Energy has put a draft bill to public consultation that sets up a €2.3 billion Island Decarbonisation Fund and adds new protections for household electricity customers. Consultation runs from 10 to 24 October 2026.
This is a draft bill, not law. Its provisions can change before it goes to parliament.
The island fund
According to the ministry’s summary of the bill, the fund is a €2.3 billion investment programme aimed at reducing the islands’ dependence on diesel-fired power generation. It would co-finance up to 60% of the investment cost of each eligible project.
Eligible projects are renewable energy and storage, electrical interconnections and grid upgrades, electric vehicle charging, and multipurpose dams. Money would come mainly from auctioning up to 25 million greenhouse gas emission allowances that Greece can claim, with the European Investment Bank running the auctions. The ministry’s General Secretariat for Energy and Mineral Raw Materials would manage the fund.
The summary does not name which islands would benefit first, and it does not describe grants paid directly to households.
What changes for household customers
- Suppliers must offer fixed-term contracts of at least one year at a fixed price, and may not change the price or terms during that period.
- Customers are protected from disconnection while a dispute resolution procedure is under way.
- The maximum time a customer can be served by the supplier of last resort rises to at least six months, from three.
- Under set conditions, a customer may hold more than one supply or energy-sharing contract at the same connection point, through different meters.
- Households, small businesses and public bodies may share renewable energy through a private agreement or a joint legal entity.
What it means for buyers
For owners of a holiday home or rental on an island, the fund is about the long-term power supply rather than their own bills. Interconnections and storage are the kind of works that, once built, reduce the islands’ reliance on local diesel plants.
The fixed-price rule is more immediate. Owners abroad who cannot watch monthly tariffs closely would be able to lock in a price for a year once the law is in force. Energy-sharing could also matter to owners who install solar panels. Buyers should confirm how the final rules apply to them with a Greek lawyer or accountant.
What happens next
Comments close on 24 October 2026. The ministry will then finalise the text before it is tabled in parliament. We will report the final version.
