The body responsible for the development of the renewable energy sector in Greece, and carrying out related research, is the Centre for Renewable Energy Sources (CRES).

CRES estimates that renewable energy sources, according to the conventional definition which excludes large hydro-electric  facilities, could contribute up to 8% of electricity production by 2008, considering the financial incentives available (see below).  If large hydro plants are included, this percentage rises to 17% of electricity generation in the country.

The Greek Government has introduced various initiatives to promote the use of renewable energy. Although prior to 1994 DEH enjoyed a monopoly over the generation of electricity, a 1994 law allowed private companies to install small generating units (up to 5MW) if they exploited renewable sources; factories producing their own electricity (up to a capacity of 50MW) are also allowed to sell their surplus power to DEH. More recently, a 1998 law provides for capital investment, interest and leasing subsidies of up to 40%, and tax deduction of up to 100%, for investments involving renewable energy. New private investments, mainly wind parks situated on the islands, have followed.

Financial incentives are part of the government's strategy to encourage the development of the sector. A development programme, initiated in 1994 by the Ministry of Development, has directed EU funding totalling 51.4 million euros into investments in renewables; 20 projects having been partially funded. (Greece's success in developing solar thermal energy was partly attributable to tax exemptions, low interest rate loans, etc, which were introduced in 1974.)

The liberalisation of the Greek electricity market may have a further impact upon the use of renewable energy sources. As of February 2001, DEH is required to allow give private producers access to its transmission and distribution networks. Professor Kapros, chairman of the regulatory authority (RAE) which awards licences,
expects to see more independent producers entering the market as liberalisation proceeds.

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Note: The definition of "renewable energy resources"

According to convention, small hydroelectric stations and biomass production are referred to as renewable energy sources but large hydroelectric stations and burning of wood for domestic heating are not. Small hydroelectric stations and biomass production make up the greatest part of conventional renewable energy sources in Greece. For biomass production many industries burn agricultural and forestry residue or municipal waste to produce heat. The use of the same fuels to produce electricity is a relatively new development in Greece and new biomass plants are starting to connect to the electricity grid.

Although not renewable energy facilities according to the conventional definition, large hydroelectric stations and domestic wood burning are often included in statistics. With the inclusion of these two sources, the proportion of total Greek energy supply attributable to renewable sources is over 5%.