State-controlled gas company DEPA Commercial plans to finalize connection terms for over 850 MW in RES projects by the end of this month as part of its plan to vertically integrate through entry into the domain of electricity production, energypress sources have informed.
DEPA Commercial intends to utilize its RES projects to establish power purchase agreements (PPAs) with major-scale consumers, as well as with the group’s retail gas subsidiary Fysiko Aerio, the sources added.
DEPA Commercial’s RES projects whose licensing procedures have reached an advanced stage represent a capacity of over 600 MW.
The gas company had established a business plan to enter electricity production prior to the outbreak of the energy crisis.
DEPA Commercial holds a 49 percent stake in renewable energy company North Solar, with an option to acquire the other 51 percent stake. North Solar’s RES portfolio totals 500 MW. Last summer, North Solar took over New Spes Concept, holding a 232-MW RES portfolio.
In addition, DEPA Commercial plans to finalize, within the next few days, its participation in an 840-MW gas-fueled power station in Alexandroupoli, northeastern Greece, along with power utility PPC and Damco Energy.
Gas company DEPA Commercial has further penetrated the RES market by fully acquiring NEW SPES CONCEPT, possessing solar farms with a total capacity of 232 MW, and is preparing to buy a further 51 percent stake, for full ownership, of North Solar, whose business plan features 500-MW of solar farms in northern Greece’s west Macedonia region.
DEPA Commercial aims to build a RES portfolio with a 1-GW capacity.
NEW SPES CONCEPT is currently developing 14 solar energy projects and holds as many electricity producer certificates.
DEPA Commercial made a first step into the renewable energy market last year with the purchase of a 49 percent stake in North Solar and is now expected to exercise an option for the other 51 percent of the company.
North Solar’s 500-MW solar farms in the country’s west Macedonia region are expected to receive finalized connection terms in the third quarter of this year, sources informed.
Besides its stakes in NEW SPES CONCEPT and North Solar, DEPA Commercial also holds a 20-percent stake in Gastrade, a consortium established for the Alexandroupili FSRU project in the country’s northeast.
Gas supplier DEPA Commercial’s move into the renewable energy sector through a 49 percent acquisition of North Solar, a company developing solar energy projects with a total capacity of 499.61 MW in northern Greece’s west Macedonia region, provides new prospects and added value to the gas company’s ongoing privatization procedure.
The agreement between DEPA Commercial and North Solar, announced last Friday, diversifies the gas company’s energy portfolio, activities, earnings potential and risk.
The move follows in the footsteps of strategies adopted by numerous international gas companies, expanding their reach into the RES sector to broaden their revenue sources and reduce environmental footprints.
DEPA Commercial is currently at the final stage of a sale launched by privatization fund TAIPED.
In addition to the prospective benefits promised by its RES entry, the gas company is also expected to gain in value as a result of its detachment from previous gas-auction responsibilities maintained during the market’s liberalization process.
DEPA Commercial’s market share appears to have stabilized at levels of approximately 40 percent, while the company’s financial performance, according to sources, improved in 2020.