Crete’s mainland power link slashes oil generation and cuts energy costs

Crete’s growing reliance on electricity supplied through its mainland link is starting to show measurable financial and operational benefits, particularly by reducing the island’s dependence on oil-fired generation. New figures from the distribution system operator DEDDIE indicate that oil-based power production has fallen dramatically since the interconnection moved toward full use.

Oil-fired generation collapses in early 2026

DEDDIE data show that electricity production from Crete’s oil-fired power plants declined by 91% during the first three months of the year. From January through March, local thermal facilities generated just 26,500 MWh, compared with approximately 305,000 MWh in the same period last year.

The steepest drops came at the start of the year. Oil-fired electricity generation fell to 630 MWh in January and 211 MWh in February, after monthly output had been above 100,000 MWh during the corresponding months of the previous year. In March, production temporarily increased to around 26,700 MWh following a planned 10-day maintenance shutdown of the interconnection system ahead of the summer season.

Imports resume after maintenance; near-total coverage expected

Once maintenance was completed, electricity imported from mainland Greece resumed covering nearly all of Crete’s energy demand. The transmission connection reached full operational capacity at the end of December, making 2026 the first full year in which Crete is expected to depend almost entirely on power delivered through the national grid.

Lower oil generation and projected savings on support costs

With this transition underway, annual electricity production from Crete’s oil-fired stations is projected to fall to about 100,000 MWh. Over the previous three years, average yearly generation from these facilities was roughly 1.55 million MWh—an estimated 94% reduction in oil-based electricity production.

The shift is also forecast to reduce public service obligation (PSO) costs tied to maintaining oil-fired capacity on the island. Those expenses are expected to total around €100 million this year, down from an annual average of approximately €550 million over the past three years—implying projected yearly savings of nearly €450 million.

Investment payback driven by operating and system support reductions

The interconnection project has total construction costs of €1.15 billion. Based on lower operating expenses and reduced system support costs, it is expected to recover its value in less than three years. The reported economics are presented alongside long-term environmental benefits associated with displacing oil-fired generation.