The upcoming RES auctions promise to bring about major changes in the wind energy market, including takeovers, mergers, new capital and new deals.
Though different reasons are propelling various initiatives being taken in the sector, certain common factors do exist, including the restructuring of the RES special account by LAGIE, the Electricity Market Operator. It has rebounded into surplus territory, offering needed stability for robust market growth.
The RES auctions, which, according to the energy ministry, will be launched in April, but are seen happening no sooner than May by pundits, promise to drive prices lower for the establishment of a more competitive wind energy market.
Quite clearly, small and medium-sized firms will not be able to remain sustainable in the long term and develop new projects, while, as has been pointed out by sector pundits, even major players, for local standards, may soon be the targets of takeover bids by investment funds and major international RES players expected to dominate the market within the next few years.
Considerable sector activity has taken place over the past few months. Just yesterday, Terna Energy launched a share offer of 12 million shares. Foreign players have expressed significant interest in acquiring a stake of Elliniki Technodomiki Anemos, an Ellaktor group subsidiary. Eren, headed by Paris Mouratoglou, was recently purchased by Total. Also, Euroenergy, a Logothetis family-owned company belonging to its Libra Group for renewable energy investments in Europe, is seeking to withdraw from the Greek RES market.
RES company expansion and disinvestment plans will need to be shaped with upcoming market changes in mind. Many small and medium-sized RES firms are expected to readjust operating models and utilize their knowhow and experience, both key assets, amid these changing market conditions.
New wind energy parks with capacities ranging from 200 to 300 MW are expected to experience rapid growth over the next few months. The RES auctions, offering additional capacity, are expected to provide impetus to this growth.