Investments in Greece’s renewable energy sources (RES) sector are under threat as a result of the negative climate amid capital controls imposed a fortnight ago, during which banks have remained closed.

Sector authorities have informed development of at least four major photovoltaic and wind-energy projects has been stalled as investors consider the risk entailed excessive.

“I don’t believe there will be a rush for any new plans, even if a deal is reached with lenders ,” a sector official noted.

Authorities have pointed out that although Greece possesses significant RES potential, the country continues to rely heavily on imported fossil fuels.

The authorities added the situation has been perpetuated by a reduction of RES subsidies amid the recession.

“Some energy companies will continue to do business in Greece, but they will be limited in number. Investors don’t like intense uncertainty,” an authority remarked.

Local market conditions are being closely watched, noted a representative of Italian energy company Enel, which maintains installed capacity totaling 308 MW in Greece. A Terna official said the company’s investment program is being carried out but will be adjusted if this is deemed necessary by the wider developments. Time will be needed for a sense of stability to return to Greece’s RES market, another official noted.