The EU approves a EUR2.3bn investment program for Greek islands

The Islands Decarbonization Fund’s investment program has been approved by the European Commission and the European Investment Bank, covering projects and measures worth a total of EUR2.3bn. The program forms a comprehensive strategic investment plan aimed at driving the energy and environmental transformation of the Greek islands (Greek Ministry of Environment and Energy statement, 02/09/2026).

Established exclusively for Greece, the Islands Decarbonization Fund provides a single financial framework combining the electrical interconnection of the islands with clean energy development, energy storage and electromobility.

The approved investments are distributed across the following areas:

• EUR1.1bn for electrical interconnections and related energy infrastructure in the Dodecanese, the Cyclades and the islands of the Northeast Aegean.
• EUR977m for renewable energy projects with storage, with a particular focus on installing self-consumption PV systems in homes, hotels, restaurants, shops, offices, hospitals, care facilities, schools, public buildings, agricultural facilities and arable land.
• EUR200m for multi-purpose dams and reservoirs.
• EUR56m for the development of electric vehicle charging infrastructure.

“Of particular importance are the electrical interconnection projects, which will contribute to the integration of island systems with the mainland network, to the limitation of the operation of oil plants, to the possibility of utilising more clean energy, to the reduction of energy costs”, according to the statement. “At the same time, the RES and storage projects will enhance the energy autonomy of the islands and the flexibility of the electricity system” the ministry added.

The program is intended to reduce dependence on costly oil-fired generation, while strengthening energy security across the islands and accelerating decarbonisation.