PPC unit sale plan in Brussels, local market officials doubtful

A bailout-required main power utility PPC unit sale plan, comprised exclusively of lignite-fired power stations in various combinations offering no surprises, has been delivered to Brussels for endorsement before the Greek government is given the green light to launch the sale procedure.

Essentially, the task of European Commission authorities will be to confirm that the sale plan represents 40 percent of PPC’s lignite capacity, as is specified in the bailout agreement.

Ultimately, the reaction of investors will determine whether the sale plan, a mixture of old and new units, will go down as a success.

Meliti I in Florina northern Greece, licensed to operate until 2040, as well as a license for Meliti II, a planned new unit, are both included in the sale package, as is Amynteo, operating for restricted hours until 2020 and in need of a major upgrade. A number of Megalopoli units have been included as alternatives. These are low-yield facilities as a result of the quality of the regional lignite used. Ptolemaida V, under construction, is also in the sale package.

Serious doubts have already been expressed as to whether the market test, scheduled for October to determine the level of investor interest, will be successful.

“Even if Brussels endorses the plan, as is anticipated, maybe with certain slight revisions, no serious investor will express interest unless hydropower units are added to the package,” one market official told energypress.