Major analysts see grim prospects for renewable energy development in Greece, as was highlighted in a recent study delivered by BMI Research, a member of the Fitch Group, which supports the Greek RES sector will not become more attractive for investors over the next few years.

This study forecast that the local sector, excluding hydropower generation, will not achieve an annual growth rate of over one percent in any year up until 2022. This applies for both production and installed capacity.

Subdued electricity demand increases and restrictive government policies, offering limited potential for RES investments, were attributed as key reasons for the negative outlook.

The BMI Research study noted that political support in Greece for RES development has diminished in recent years, causing market instability.

The prospects are relatively better for the wind energy sector as a series of projects have been lined up, the report noted. However, growth potential for the solar power field, the biggest RES sub-sector, is ominous, despite the temporary optimism generated by an auction last December, the BMI Research report noted.

Offering some silver lining, the market analyst’s report noted that improved growth prospects could be achieved if Greece assumes a more significant role as an electricity exporter.

The report highlighted the EuroAsia Interconnector project, whose development is expected to commence this year, as a vital factor. This project stands to link the Greek, Cypriot and Israeli electricity markets. An ensuing electricity demand increase could spur greater RES investments, the report noted.