Greece has started 2026 with a remarkable transformation in its economic and energy sectors, as recent data show surging electricity production, a sharp rise in power exports, and an acceleration in manufacturing growth. This dynamic shift, fueled by a combination of domestic resilience and shifting regional market conditions, is positioning the Mediterranean nation as a significant player in Southeastern Europe’s energy and industrial landscape.
According to official statistics reported by Balkan Green Energy News, Greece’s power production in January 2026 soared by 23% compared to the same month in 2025, reaching a substantial 5,938 gigawatt-hours (GWh). This surge far outpaced domestic demand, which itself rose by 5% to 4,674 GWh. Notably, domestic output exceeded demand by a hefty 27%, resulting in a surplus that Greece was quick to capitalize on through exports.
This excess in generation led to an 86% jump in power exports for January, totaling 1,338 GWh. The chief recipients were neighboring Bulgaria, which imported 855 GWh, North Macedonia with 338 GWh, and Italy at 331 GWh. Meanwhile, power imports into Greece all but evaporated, collapsing to just 74 GWh—a dramatic 78% decrease from the previous January. The shift means Greece has, for now, firmly cemented its status as a net electricity exporter.
What’s behind this turnaround? Wholesale electricity prices played a decisive role. As reported by Balkan Green Energy News, Greece’s prices were lower than those in Bulgaria, North Macedonia, and Italy on most days, making Greek exports particularly attractive in the regional market. This price advantage, combined with robust domestic production, allowed Greek energy to flow outward while imports nearly dried up.
Breaking down the energy mix, January 2026 saw thermal units providing the largest share at 44.9%, closely followed by renewable sources at 42.6%, and large hydropower at 12.4%. The importance of renewables and hydropower has only grown as the year progressed. Preliminary data from the Independent Power Transmission Operator (IPTO or ADMIE) and the Hellenic Energy Exchange (ENEX) highlighted that hydroelectric production surged in February, thanks to abundant rainfall and replenished reservoirs. On several days, hydropower’s daily share even surpassed 20%.
However, this growth in renewables hasn’t come without its challenges. Greece experienced relatively high curtailments—periods when renewable energy production was deliberately reduced to maintain grid stability—and negative price hours in the early months of 2026. In a single week in February, curtailments reached 97 GWh, a sign of both the country’s ambitious renewable push and the technical hurdles it faces in integrating these sources into the grid. Energy experts, including Professor Pantelis Biskas from the Aristotle University of Thessaloniki, project that renewable energy curtailments will reach 3.47 terawatt-hours (TWh) for the entire year and could climb to 3.98 TWh by 2029.
Despite efforts to electrify more sectors of the economy and increase traditional power use, electricity demand is not expected to rise significantly through 2029. This means Greece will likely continue to have surplus capacity—potentially reinforcing its role as a regional energy exporter, provided it can manage the technical and market challenges that come with an increasingly green grid.
While the energy sector has been making headlines, Greece’s manufacturing industry has also shown signs of robust health. According to Investing.com, the S&P Global Greece Manufacturing Purchasing Managers’ Index (PMI) rose to 54.4 in February 2026, up from 54.2 in January. This marks the fastest improvement in Greek manufacturing conditions in six months. A PMI reading above 50 indicates expansion, and the latest figures reflect the strongest operating environment since August 2025.
Manufacturing output surged at the fastest rate in eleven months, extending a growth streak that began in October 2024. The uptick was driven primarily by domestic demand, with new orders expanding at their sharpest pace since August 2025. Successful advertising initiatives and a pickup in construction activity were cited as key contributors to this growth.
However, not all the news was positive. While domestic demand powered ahead, new export orders declined for the first time in three months, reflecting weaker demand from foreign markets. Still, Greek manufacturers responded to rising production needs by hiring more workers and increasing their purchasing activity. Yet, employment growth slowed to a five-month low, hampered by difficulties in finding suitably skilled staff—an issue that, while limiting job gains, did not erase the fact that employment levels remained historically elevated.
Capacity pressures began to emerge as backlogs of work accumulated slightly for the first time in ten months. On the supply side, chain pressures eased, with vendor performance deteriorating at the slowest rate since June 2025. Transportation delays and supplier constraints still played a role in extending delivery times, but the situation was improving.
One area of concern for manufacturers was the cost of doing business. Input costs rose at the steepest pace since March 2025, driven by higher prices for metals and transportation. Despite these pressures, firms managed to soften selling price inflation, balancing the need to remain competitive with efforts to pass some of these costs onto customers. In February, manufacturers also increased both pre-production and post-production inventories—the first such increases in two and ten months, respectively—indicating a degree of confidence in future demand.
That confidence, while slightly tempered from January, remained strong by historical standards. Companies pointed to planned investments in new premises and the launch of new projects as reasons for their optimism about output growth over the coming year.
The interplay between Greece’s energy and manufacturing sectors is becoming increasingly important. The country’s ability to produce and export surplus electricity—especially from renewable sources—could provide a competitive edge for energy-intensive industries. At the same time, challenges such as renewable curtailments and labor shortages in manufacturing will require careful management if Greece is to sustain its positive momentum.
As 2026 unfolds, Greece stands at a crossroads of opportunity and challenge. Its transformation from a net energy importer to a regional exporter, coupled with a revitalized manufacturing sector, suggests a new economic chapter is being written. Whether these gains can be consolidated and expanded will depend on how deftly the country navigates the technical, market, and workforce issues that accompany such rapid change.