Brussels dismisses PPC sale list; Plan B, minus Amynteo, on way

Greek authorities have reportedly already begun work on an alternative follow-up sale package proposal of main power utility PPC units, a bailout requirement, as a result of the European Commission’s dismissal of an initial plan, which, according to officials in Brussels, failed to meet conditions that had been set.

Greece’s initial proposal, a lignite-only package, was comprised of PPC’s two Amynteo units (600 MW), an existing Meliti unit (330 MW), a license for the construction of a new facility in Meliti (450 MW), as well as the Amynteo, Lakkia and Vevi mines feeding these units.

The Amynteo mine was included in the package despite being affected by a recent landslide.

The initial Greek proposal represents 36 percent of PPC’s lignite unit capacity and 42 percent of the utility’s lignite mines.

Though details concerning Plan B have yet to emerge, an energypress source has informed that the “alternative plan will be more realistic and won’t include units whose life spans are set to expire in two years and require investments of around 100 million euros to keep operating.”

Though not specified, this remark clearly frames the two Amynteo units, which will most likely be replaced by other PPC units for the alternative plan.

According to sources, an alternative proposal prepared concurrently by McKinsey, PPC’s consultant for this sale process, includes two Megalopoli units – Megalopoli 3 and Megalopoli 4 – in place of the two Amynteo units.

Numerous market officials are insisting that hydropower units will need to be included in PPC’s sale package if investors are to be lured.