Power utility PPC’s new business plan, to be announced towards the end of the year, will feature a more ambitious transition towards the corporation’s RES objective of between 2,000 and 3,000 MW, as well as bolder steps concerning digital products, the retail electricity market, electromobility and the decarbonization schedule.
PPC, undergoing strategic changes, has decided to present three-year business plans that will be revised annually instead of its customary five-year plans.
This reflects the corporation’s determination to remain connected with rapid developments in the energy sector, capable of outdating business plans announced just a year earlier.
The new PPC business plan, expected in December, will aim for a RES portfolio of 2,000-3,000 MW within two years; swifter digitalization; increased collaboration with the private sector for electromobility development; greater emphasis on cost-reduction synergies; as well as revenue reinforcement through the application of new technologies in all fields.
The business plan will be complemented by a new regulatory framework for PPC’s privatization-headed subsidiary HEDNO, the distribution network operator, as well as European Commission negotiations, crucial for the new generation of retail products.
The new PPC business plan will offer fundamentals for the establishment of a corporation delivering annual operating profit of between 750 and 900 million euros between 2021 and 2023.
A smooth ride is not guaranteed. Fluctuations are possible. Gas and petroleum prices, currently low, will most likely rise over the next few months, PPC’s decarbonization plan represents an enormous challenge, while difficulties and delays in the absorption of amounts from the recovery fund are feared.
For the time being, the market is approving PPC’s approach. The company share has risen 187 percent over the past six months, up from 1.55 euros in March to 4.45 euros yesterday.