China Energy

Major Greek energy companies represented for PM’s China trip

Posted on by admin

The country’s energy sector is well represented in a business delegation accompanying Prime Minister Kyriakos Mitsotakis’ current official visit to China.

Greek energy corporations primarily active in electricity, renewable energy and energy project construction are represented by highly ranked officials.

Power utility PPC, represented by chief executive Giorgos Stassis; and top officials from Mytilineos group, the Copelouzos group, GEK Terna and the Panagakos group have joined the Greek Prime Minister for the China trip.

A significant energy-sector agreement has already been established by the two countries. In 2017, SGCC, the State Grid Corporation of China, acquired a 24 percent stake of power grid operator IPTO, one of the biggest Chinese investments in Greece to date.

In addition, a number of Chinese companies, including China Energy and the Sumec group, have signed Memorandums of Cooperation with Greek enterprises such as the Copelouzos group and PPC.

In the renewable energy market, Chinese-controlled EDP Renoveis has been awarded capacity, through competitive procedures, to develop RES projects.

SGCC has indicated it could be interested in an upcoming Greek electricity market privatization to offer a stake in distribution network operator DEDDIE/HEDNO.

Relaunched PPC lignite sale planned for completion May 5-8

Posted on by admin

The main power utility PPC’s follow-up sale attempt offering lignite units, planned to move ahead swiftly with the aim of producing a preferred bidder between May 5 and 8, ahead of European Parliament and local elections, is being relaunched today with investor-friendly terms intact following the initial sale’s failure to excite candidates.

Besides three bidding teams that took part in the first sale attempt, the relaunched sale is expected to include new entries.

PPC’s chief executive Manolis Panagiotakis has returned from a brief trip to China having secured the participation of two Chinese entries, China Energy and CMEC, while two more firms, Russian and American, have also decided to bid for the PPC units, according to the PPC boss.

Last-minute revisions were needed following intervention by the European Commission’s Directorate-General for Competition. Panagiotakis is scheduled to visit Brussels next week for further talks.

According to the revised terms, PPC holds the right to commission a new evaluation of the assets included in the disinvestment, a bailout requirement.

The previous evaluation, projecting an IRR figure of 10.7% and lignite costs at 28.5 euros per ton, was not to blame for the initial sale effort’s failure, the PPC chief has insisted.

Extremely unfavorable market conditions at the time of the sale, including investor insecurity over CO2 emission right costs, as well as serious pending issues such as the need for an improved lignite supply agreement with the operator of the Ahlada mine feeding the Meliti power station, one of the units up for sale, were key reasons behind the failure, Panagiotakis has supported.

A voluntary exit plan for employee reductions at units included in the sale package, Brussels pre-notification for CAT remuneration eligibility of units, and the result of ongoing negotiations with the Ahlada mine’s operator all offer improved potential for a successful sale procedure, the PPC boss has highlighted.

Interested bidders will need to express interest by the end of next week. The re-registration procedure for bidders who took part in the initial sale attempt will be limited to an official statement noting that no changes have been made.

Consultation for the sale and purchase agreement (SPA) will be held over a period of 20 days to one month. Its finalized terms will be announced a week later. Contenders will then have one week to submit their binding offers before a preferred bidder is declared between May 5 and 8. An extraordinary PPC shareholders’ meeting and a parliamentary session will follow to approve the transfer of units to new owners.

 

 

 

Prospective PPC unit buyers maneuvering for partnerships

Posted on by admin

First-round participants in the main power utility PPC’s bailout-required sale of lignite mines and power stations representing 40 percent of capacity are heightening their efforts to form partnerships for the sale procedure ahead of an upcoming July 31 deadline and could be close to announcing arrangements, energypress sources have informed.

In one of two main fronts taking shape, one of two Czech firms that have emerged for the sale and said to be displaying a strong interest in Greece’s lignite market is close to reaching a deal with a major Greek corporate group, sources said.

On the other main front, a high-voltage industrial enterprise also taking part in the sale is said to be exploring the possibility of merging with the aforementioned scheme or partnering with the Copelouzos-China Energy scheme.

The high-voltage industrial enterprise is entitled CO2 emission right cost offsetting support, a definite advantage, even though most recent calculations indicate CAT remuneration support is also needed to make competitive the PPC lignite facilities being sold.

Though no further details on the players have emerged at this point, the sale appears to be developing into a showdown between the Copelouzos-China Energy scheme and a second team to be comprised of a foreign firm with a Greek partner, sources noted.

The aforementioned high-voltage industrial enterprise could side with either team, the sources added.

Also, both candidate teams are believed to be interested in the sale’s two separate packages, respectively comprised of PPC assets in the country’s north and south.