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“The energy transition needs social justice” – The Green Tank speaks at event on Energy Democracy

The importance of energy democracy and the need for a socially just energy transition were highlighted by Ioanna Souka, Energy Policy Analyst at The Green Tank, during her participation in the online event organized by the citizens’ initiative O Kosmos on July 24, marking the 51st anniversary of the restoration of democracy in Greece.

As she emphasized, “energy communities and self-production are key tools for democratizing energy,” with installed capacity from self-production projects already reaching 1 GW—around 6% of the country’s total renewable capacity.

However, despite growing public interest, significant technical, economic, and institutional barriers hinder citizens’ participation. “The state must not only recognize this interest but actively support it—with financing tools, appropriate regulation, and access to the grid,” Ioanna Souka stressed.

She placed particular emphasis on the importance of local ownership and citizen involvement in the planning of renewable energy projects, warning that the absence of meaningful dialogue with local communities, municipalities, and stakeholders often fuels legitimate opposition. She referred to a practical guide developed by The Green Tank in collaboration with Electra Energy and the European network CAN Europe, featuring proposals and indicators to help companies promote social participation and co-creation of RES projects.

Ioanna Souka also raised concerns about the sharp rise in fossil gas consumption in Greece—the highest in the EU for 2024. She pointed out that electricity exports, which are partly responsible for this increase, have driven up wholesale prices, ultimately burdening domestic consumers.

Finally, she referred to the new Social Climate Fund as “a critical tool for social support,” through which Greece is expected to receive €4.8 billion to address the social impacts of ETS2—the EU’s new Emissions Trading System covering buildings and road transport as of 2027. This effectively introduces a new carbon price, paid by fuel suppliers but eventually passed on to consumers—disproportionately affecting vulnerable households.

While she welcomed the Fund’s establishment as a step in the right direction, she criticized the draft Social Climate Plan recently put out for consultation, citing major shortcomings such as weak justification, unclear targeting, and a complete lack of support for energy communities.

She referenced a joint Green Tank and FACETs study estimating that combined revenues from ETS1 and ETS2 could reach up to €15.5 billion—enough to lift 500,000–600,000 households out of energy and transport vulnerability, with a significant share of the funds directed toward energy communities and self-production. “In contrast, the current plan attempts to support 3.4 million households with just €4.8 billion and provides no support at all for energy communities. How exactly will this be achieved—and to what extent? It’s still unclear,” she noted.

Ioanna Souka concluded by outlining the Green Tank’s multi-level advocacy for energy democracy: shaping relevant policy reforms, supporting local energy community initiatives across Greece, actively participating in the Monitoring Committee for the Just Transition Development Plan, and engaging in international advocacy for a stronger institutional and funding framework at the EU level.

The online event took place on July 24, 2025, marking the anniversary of the restoration of democracy in Greece. It was organized by the Peace Department (Energy & Foreign Policy) of KOSMOS and focused on Energy Democracy, featuring contributions from Thodoris Stathopoulos (KOSMOS), Sandy Fameliari (Electra Energy), and Christos Vrettos (REScoop.eu). The discussion was moderated by Christina Efthymiatou (KOSMOS – Green Deal).