Reed Smith advises PPC Renewables on acquisition of wind projects portfolio from Intrakat S.A.

ATHENS – Global law firm Reed Smith has just announced that it has advised PPC Renewables S.M.S.A., the renewables arm of Public Power Corporation S.A., one of the leading power utilities in Southeast Europe, on its successful acquisition of a portfolio of wind assets totalling approximately 164 MW from Intrakat S.A.

In addition, the firm advised on the parties’ strategic cooperation for the joint development of a 1.6 GW renewable energy projects portfolio.

PPC Renewables, a wholly owned subsidiary of Public Power Corporation, one of the leading power utilities in Southeast Europe, has been a pioneer in wind and solar power sectors since the 80s. It currently operates a fleet of renewable power plants in excess of 700 MW, while it has a projects portfolio of 1 GW under construction. The company aims to create an expanded and diversified portfolio of renewable and energy storage projects totalling 5 GW within the next five years.

Intrakat Group is a leading player in the Greek construction sector, engaged in the development of large-scale infrastructure projects, the construction of commercial and industrial facilities, as well as the manufacturing of steel structures. The group is also actively involved in a wide range of other business activities such as telecoms, renewables, environmental management and the development of real estate projects.

The agreement concluded between the parties relates to the acquisition from PPC Renewables of three entities of Intrakat, which are owning either directly or indirectly, via SPVs, a portfolio of operating, under construction and ready-to-build wind power projects with an aggregate capacity of approximately 164 MW, and the participation of PPC Renewables in four entities of Intrakat, which are owning either directly or indirectly, via SPVs, a portfolio of wind and solar photovoltaic power projects under development, with an aggregate capacity of approximately 1.6

GW. The strategic cooperation between the parties may be further expanded under certain conditions to include a sizeable portfolio of battery energy storage projects.

The transaction corresponds to an enterprise value of €100 million for the percentage participation of PPC Renewables, while the value of the joint investment, in its potential full development, is estimated to exceed €1 billion.

The Reed Smith team that advised on the deal was led by Athens corporate partner Dimitris Assimakis, supported by counsel Minas Kitsilis and associates Georgia Koui and Eleni Alexiou. Senior associate George Fountas and associate Zissis Papazissis advised on certain finance law aspects of the transaction, and Brussels partner Christian Filippitsch advised on the competition law aspects of the transaction.

Assimakis, corporate partner and head of Reed Smith’s Greek energy team, commented: “We are thrilled to have supported PPC Group on this mega deal for the Greek renewable market, and assisting the group once again in getting closer to the achievement of its strategic goal to become the green energy champion in Greece and the wider region. Indeed, a fascinating journey that highlights the new identity of the group and makes evident that this is not going to be just a short trip.”

“The transaction, despite the great volume of the corporate vehicles and the assets involved and the complexity of its structure, was completed in only two months’ time, an unprecedented record and not only for the Greek market, thanks to the very high professionalism, strong commitment, and dedication of all the parties involved. A special mention to PPC Renewables management and its execution teams for their unparalleled skillfulness and business orientated approach but most importantly, a big thanks to all of them for the continuous trust in our practice.”

About Reed Smith

Reed Smith is a dynamic international law firm dedicated to helping clients move their businesses forward. With an inclusive culture and innovative mindset, it delivers smarter, more creative legal services that drive better outcomes for clients. Its deep industry knowledge, longstanding relationships and collaborative structure make the law firm the go-to partner for complex disputes, transactions, and regulatory matters.

PPC variable green tariff for March down to 9.4 cents/KWh

A further reduction in wholesale electricity prices in February, down to an average of 72.2 euros per MWh, from 93 euros per MWh a month earlier, has created conditions for lower retail electricity prices in March.

Power utility PPC’s variable green tariff has been set at 9.4 cents per KWh for March, not including any discount the supplier will decide to offer.

Rival power suppliers are expected to follow suit and lower their prices for March, down to roughly 8 cents per KWh, based on formulas applied.

Sliding natural gas prices at the TTF in recent times could lead to a further decline in electricity prices in April, assuming the TTF index remains at its currently low level of around 24 to 25 euros per MWh.

Besides variable green tariffs, the country’s new color-coded tariff system, introduced January 1 to simplify price comparisons, also offers variable yellow tariffs, a lesser risk for suppliers, as their levels are set at the end of each month. In addition, consumers may opt for fixed blue tariffs.

 

PPA conditions altered by falling gas and electricity prices

Falling natural gas prices and, subsequently, lower electricity prices, have brought about major changes to Greece’s renewable-energy PPA (power purchase agreements) market conditions, prompting industrial consumers and power suppliers to push for lower-priced PPAs.

Off-takers, or industry and power suppliers, are gaining an upper hand over RES producers in terms of price negotiations for prospective PPAs. RES producers are being forced to show greater price leniency in order to secure the development of new projects.

Given the natural gas and electricity price drops, existing ten-year PPAs established by power utility PPC with metal processing company Viohalko and cement producer Titan are also expected to be renegotiated as the price levels for these agreements, set at 56 euros per MWh, are no longer considered competitive.

Prior to the de-escalation of natural gas and electricity prices, PPAs virtually represented a life raft for industrial consumers and suppliers by offsetting exposure to high electricity prices and, more generally, considerable market volatility.

At present, natural gas prices on international energy exchanges have reached a three-year low, reaching 22.53 euros per MWh last Friday, and, in doing so, have also pushed down wholesale electricity prices, currently at levels of less than 100 euros per MWh.

Under such conditions, PPAs are no longer seen as a crucial. Instead, they have become irrelevant as the need for hedging has been significantly reduced or even eliminated. Market analysts do not see any upward price swing in the months ahead, a further de-escalation in gas and electricity prices seeming most probable.

 

Mytilineos overtakes PPC as leading high-voltage supplier

The Mytilineos group’s Protergia energy supply company has overtaken power utility PPC in the high-voltage category to become the new market leader, in this category, latest data issued by power grid operator IPTO covering January has shown.

Overall, for all categories combined, PPC shed nearly 3 percentage points in January, ending the month with a market share of 52.84 percent, down from 55.62 percent in December.

Protergia gained ground in all categories combined to capture second place in January with a market share of 14.65 percent, up from 9.19 percent in December. This rise has been mainly attributed to Mytilineos group member Aluminium of Greece’s switch from PPC to Protergia.

Heron was ranked third in all categories combined with a market share of 10.64 percent in January, down slightly from 10.76 percent in December.

In the medium-voltage category, PPC’s market share contracted to 34.7 percent in January from 36 percent in December, while Protergia and Heron both achieved gains. Heron’s market share in this category rose from 16.8 percent to 17.4 percent, while Protergia’s market share increased from 16 percent to 17.1 percent.

As for the low-voltage category, PPC shed just a mild fraction of its still-dominant market share, while Protergia was the big gainer, leaping nearly 1.5 percent, from 7.7 percent to 9.1 percent.

Overall electricity demand in Greece rose by 6.62 percent in January, 2024 compared to a year earlier, the IPTO data showed.

Also, renewable energy captured a 50.6 percent share of the country’s energy mix in January, followed by gas-fueled production, providing 41 percent of the month’s total, and hydropower, at 8.4 percent, the data showed.

 

PPC, a regional player, turning into an energy ambassador

Power utility PPC’s strategic moves into southeast European markets are becoming a powerful tool of economic diplomacy for Greece and the country’s interests in the wider region as control of energy corridors and resources is equivalent to geopolitical power.

PPC’s chief executive Giorgos Stassis and his associates have been making more regular and intensified contact of late with government officials in the wider region and across the Atlantic.

Stassis’ meeting with Geoffrey Pyatt, the US’s Assistant Secretary of State for Energy Resources, in Washington just over a week ago, followed by a meeting earlier this week with Romanian Prime Minister Marcel Ciolacu, highlight the important diplomatic role now been played by PPC.

During their Washington meeting, Stassis and the US’s Assistant Secretary of State for Energy Resources discussed how PPC could play a more active role through east Europe’s major energy corridors and the US-backed Three Seas initiative, involving 13 Baltic Sea, Black Sea and Adriatic Sea countries and aiming to offer protection against the threat of Russia.

The US sees Greece’s initiatives in the wider region as moves that are aligned with America’s geostrategic interests, especially at a time when Russia’s war in Ukraine has turned arming eastern Europe against Russian influence into a priority.

Suppliers’ windfall earnings estimated to reach €200m

Electricity supplier windfall earnings between August, 2022 and the end of 2023, the period during which energy-crisis measures were implemented, are expected to reach roughly 200 million euros, RAAEY, the Regulatory Authority for Waste, Energy and Water, has estimated.

The exact sum cannot yet be finalized as a couple more factors still need to be taken into account.

Power utility PPC still needs to provide RAAEY with related figures concerning the final quarter of 2023, while distribution network operator DEDDIE/HEDNO must forward a “normalization coefficient” concerning megawatt-hour rates suppliers are charged each month based on declarations they submit to the energy exchange.

The bigger the normalization coefficient to be forwarded by DEDDIE/HEDNO to RAAEY, the lower the resulting windfall earnings will be.

Suppliers will need to make windfall-return payments over two installments, the first of which will represent 60 percent of their respective amounts.

The sums to be received, it has been decided, will be allocated almost exclusively to partially servicing debt owed by municipal water supply and sewerage companies (DEYA) to power utility PPC.

PPC tender for pumped-storage station at Kardia mine

Power utility PPC plans to launch, around a year from now, a tender for the construction of a 148-MW pumped-storage station at the location of the company’s withdrawn lignite mine in Kardia, northern Greece.

The project, budgeted at between 170 and 180 million euros, is expected to be completed three years after a contract for its construction has been signed.

The prospective Kardia pumped-storage station is one of five such units planned by PPC, their total capacity expected to reach 1,000 MW.

Pumped-storage stations can offer long-term electricity storage, making them necessary in power systems with high penetration of renewables, as is expected to be the case in the Greek energy system by 2030, when, according to a draft of the updated National Energy and Climate Plan, renewables will hold a 79 percent share of the power generation mix.

PPC is already staging a tender offering a contract to a consultant specialized in such projects for a feasibility study, basic design and technical specifications of the Kardia pumped-storage unit.

In addition, PPC is carrying out power system stability studies, which are necessary for the project’s design. The findings of the studies will be passed on to the consultant selected through the tender.

The Kardia pumped-storage project plan received an environmental permit last May, as part of a wider investment plan also involving PPC’s former steam power plant and the adjacent lignite mine, also withdrawn.

This plan also includes development of a CHP unit that will support the operation of a regional heating system for Kozani, Ptolemaida and Amyntaio, as well as the conversion of the Kardia III and Kardia IV power stations into modern capacitors. Tenders for the capacitors are already underway.

 

Favorable farming power-bill terms good news for PPC

A government plan offering farmers extremely favorable terms for long-term, installment-based settlement of overdue amounts concerning electricity consumption comes as good news for the power utility PPC, owed an estimated 100 million euros by farmers.

As part of its effort to appease protesting farmers in Greece, the government is offering interest-free, installment-based settlement of overdue electricity-bill amounts over ten-year periods.

One in three farmers in Greece is behind on electricity-bill payments, while, in some areas, well over 50 percent of farmers are not meeting their energy-cost obligations.

In the Dodecanese Islands, 82 percent of farmers face overdue electricity bills, Grevena, in the country’s north, follows with 77 percent, the percentage in Drama, also north, is 67 percent, while 59 percent of farmers on the Ionian island of Corfu are not keeping up with electricity-bill payments.

Worse still, only 10 percent of farmers carrying energy debt are accepting installment-based, payback arrangements offered by PPC with terms that are far more favorable than those offered to consumers of other categories.

In addition, roughly half of the farmers who do accept these installment-based, payback arrangements offered by PPC end up defaulting after having serviced an average of four monthly installments.

These defaulters eventually end up reapplying for new installment-based, payback arrangements before defaulting again, transforming the process into an ordeal.

 

Gas market’s established suppliers still dominant in ’23

The country’s top five natural gas retailers, supplying industrial, business and residential consumers, remained dominant in the Greek market in 2023.

Zenith, Aerio Attikis, Mytilineos, Heron and DEPA Commercial, the top five players for all three categories combined, all maintained their positions last year. NRG ended last year in sixth place, overtaking Elpedison.

Zenith and Aerio Attikis, the top two gas retailers for all categories, were also the most dominant players in the residential sector for 2023, capturing a combined market share of 74.1 percent, or 433,896 households of 585,432 in total.

Zenith and Aerio Attikis led the pack, overall, in the industrial, business and residential, with respective market shares of 30.8 and 28.6 percent in 2023. Zenith’s market share fell from 34.4 percent in 2022, while Aerio Attikis’ market share was unchanged.

In the overall rankings, for all three categories, Mytilineos was ranked third with a 14.9 percent market share, up from 12.6 percent. Heron followed with 10.2 percent, up from 9.4 percent, and DEPA Commercial was placed fifth in 2023 with a market share of 5.7 percent from 4.8 percent in 2022.

As for the residential market, Zenith was ranked first with 276,157 customers, slightly down from 289,632 in 2022, and Aerio Attikis followed with 157,739 customers, up 12,696 from 145,043 in 2022.

Third-placed Mytilineos gained 9,011 residential customers in 2023 to reach 34,385, while other standout gainers in this category included sixth-placed PPC, up 8,523 customers to 30,344, and fifth-placed Heron, up 6,162 customers for a 28,313 total.

As for the business category, the total number of gas meter connections fell slightly in 2023 to 16,135 from 16,233, partially as a result of the energy crisis and higher gas prices over several months last year.

 

 

Lower-cost farming electricity plan based on industrial PPAs model

New government measures aiming to reduce energy costs for farmers have taken their cue from a PPA  pricing formula shaped by power utility PPC and agreed to with two industries so far – metal processing company Viohalco and cement producer Titan – for ten-year PPAs offering higher fixed tariffs over the first two years and lower-priced tariffs thereafter.

The government’s revision for agricultural-sector farming electricity, to be introduced April 1, almost exclusively applies to power utility PPC, as the company represents virtually all of the country’s 192,000 farming power meters.

PPC incorporated elevated fixed tariffs, for the first two years, into its PPAs with Viohalco and Titan as it anticipates such a time period will be needed for the completion of solar farms planned to serve the two industries.

US sees American interests in PPC’s southeast Europe plans

Greek power utility PPC’s aspirations to establish itself as a key energy market player in the Balkans and southeast Europe is being embraced by US investors who, through such a development, see further potential for interests of their own, given the excellent standing of Greek-US bilateral ties.

Protecting the region’s energy sufficiency from the threat posed by Russia remains a top priority for the US, which also sees potential for American interests in PPC’s plans to penetrate markets in the Balkans and beyond with large quantities of renewable energy.

PPC’s chief executive Giorgos Stassis made note of the power utility’s plans for southeast Europe, and also referred to the wider Three Seas Initiative in an announcement made yesterday following a meeting with Geoffrey Pyatt, US Assistant Secretary of State for Energy Resources.

The Three Seas Initiative, presently covering 13 countries between the Baltic Sea, Black Sea and Adriatic Sea, aims to attract major investments from the EU and the US in the areas of road and rail transport, economy, energy infrastructure for transmission of renewable energy, fiber optic development and everything needed to launch 5G telecommunication networks.

Greece, Austria, Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia are all included in the Three Seas Initiative, while Ukraine and Moldova were granted membership rights last September.

Ministry determined to ensure PPAs for industrial consumers

The energy ministry appears determined to ensure renewable-energy PPAs for industry and intends to incorporate all required measures into an overall plan being developed for the liberalization of grid space.

However, the ministry has a conundrum to resolve as it must combine increased grid-injection restrictions for RES units obtaining connection terms from now on with the need to keep prices low for PPAs involving RES producers and industry.

These increased grid-injection restrictions for RES units come as a challenge for renewable-energy PPAs already established, among them agreements between power utility PPC with metal processing company Viohalco and cement producer Titan.

Besides modifying RES output, these restrictions also affect data used by parties involved in PPAs to reach agreements on electricity purchase prices.

To offset negative impact, the ministry is considering to subsidize behind-the-meter battery additions to projects. This would enable RES producers to meet the energy needs of industries at latter dates should PV production exceed upper limits.

A subsidy-support solution would require the European Commission’s approval as it is considered a form of state aid.

 

PPC’s energy-sufficiency plan for Crete forwarded to Brussels

An energy-sufficiency plan to cover Crete’s energy needs until an electrical grid-link with Athens is completed for commercial launch, expected within 2025, is now close to being finalized and has been forwarded to the European Commission for approval, energypress sources have informed.

A remuneration formula chosen for the island’s energy-sufficiency plan involves state aid and, as a result, requires Brussels’ approval.

The energy ministry has awarded Crete’s energy-sufficiency project to power utility PPC after alternative solutions involving Heron and Motor Oil failed to make progress.

For its Cretan plan, PPC has reached an agreement with Greek construction and energy group GEK-TERNA to initially lease – for two years, until 2025, and then purchase – the latter’s Heron I, a 147-MW gas-fired power plant, currently stationed in the Viotia area, northwest of Athens.

PPC plans to have the Heron I power plant transferred and reinstalled on Crete in time for this coming summer, when energy demand typically peaks.

A decision was reached, at a recent energy ministry meeting, to cover 75 percent of the power plant’s investment cost, until 2025, through the public service compensation (YKO) account, accumulating related surcharges added to all electricity bills.

The other 25 percent of the investment cost is planned to be covered, between 2025 and 2028, through a remuneration mechanism for emergency reserve units.

The energy ministry is soon expected to bring to Parliament a legislative revision covering the energy-sufficiency plan for Crete.

 

PPC market share shrinks 3%, Mytilineos high-voltage leader

Power utility PPC’s overall market share contracted by three percentage points in January, from 56.1 to 53.1 percent, in mainland Greece, while the country’s three biggest independent suppliers all gained ground, latest figures published by the country’s energy exchange have shown.

As for the electricity market’s voltage-based sub-categories in January, Mytilineos is the market leader in the high-voltage category with a 39.1 percent market share, and PPC is at the forefront of both the medium and low-voltage categories with respective market shares of 42.6 and 63 percent, the energy exchange data showed.

In December, PPC’s market share had remained steady in the low-voltage category, while the company gained two percentage points in the medium-voltage category and shed 24 percentage points in the high-voltage category.

PPC’s considerable market-share loss in the high-voltage category has been mainly brought about by Aluminium of Greece’s shift away from PPC to Protergia, a fellow Mytilineos group member, now the high-voltage category’s market leader.

Ministry set to table bill for Crete’s energy sufficiency plan

The energy ministry is set to submit to Parliament a legislative revision covering Crete’s energy sufficiency plan, both before and after the island’s electrical grid interconnection with Athens, which is scheduled for commercial launch in the summer of 2025, energypress sources have informed.

The revision will pave the way for power utility PPC, which has undertaken the task of ensuring Crete’s energy sufficiency, to proceed with its plan.

PPC has reached an agreement with Greek construction and energy group GEK-TERNA to initially lease, until 2025, and then purchase the latter’s Heron I, a 147-MW gas-fired power plant, currently stationed in the Viotia area, northwest of Athens.

PPC plans to have the power plant transferred and reinstalled on Crete in time for this coming summer, when energy demand typically peaks.

A decision was reached, at a recent energy ministry meeting, to cover 75 percent of the power plant’s investment cost, until 2025, through the public service compensation (YKO) account, accumulating related surcharges added to all electricity bills.

The other 25 percent of the investment cost is planned to be covered, between 2025 and 2028, through a remuneration mechanism for emergency reserve units.

The support formula for Crete will need to be approved by the European Commission as it is regarded as state aid. The energy ministry will begin related procedures with Brussels as soon as its legislative revision is ratified in Greek Parliament.

PPC needs to take swift action to ensure Crete’s energy sufficiency for this coming summer, when the island’s energy deficit is projected to reach 190 MW.

 

PPC dominating low-voltage supply despite greater customer outflow

Power utility PPC remained the dominant low-voltage supplier up until November, 2023, despite shedding an increased number of customers in the three months leading to the year’s second-last month, data published by RAAEY, the Regulatory Authority for Waste, Energy and Water, has shown.

Consumers using a total of 6,500 low-voltage power meters left PPC during the seven-month period from February 1, 2023 to the end of August, but this outflow tripled to 18,500 power meters over the three-month period between September through November.

Independent energy supplier Zenith gained the most customers over the ten-month period from February through November, adding 45,000 customers to its list, 19,300 of these in the latter three months. Fysiko Aerio followed with 18,900 new customers during this ten-month period, while Elpedison was next with 13,200 additions.

Protergia continued to lead the pack among the independent suppliers, boosted by its takeover of Watt & Volt. Combined, the two companies shed a small number of customers in 2023, compared to the previous year.

The country’s universal supply service – or five biggest electricity suppliers, in terms of retail market share, required by law to cover the needs of black-listed consumers who have been shunned by suppliers over payment failures – remained relatively steady in 2023, losing just 1,100 customers. It was ranked seventh, overall.

 

RAAEY energy sufficiency plan for non-interconnected islands

The energy ministry is close to finalizing a plan to resolve energy sufficiency issues of Greece’s non-interconnected islands following a series of meetings and exchange of opinions with power utility PPC, power grid operator IPTO, distribution network operator DEDDIE/HEDNO, and RAAEY, the Regulatory Authority for Waste, Energy and Water, energypress sources have informed.

RAAEY, the sources noted, is currently preparing a plan for the ministry that contains details of a required legislative revision, which, when ratified, will enable PPC to proceed with its energy sufficiency plan for the non-interconnected islands.

The power utility has prepared a comprehensive plan designed to meet the needs of these islands until 2030, using everything from power coupling and gas turbines to batteries. The cost of these solutions is expected to range between 200 and 500 million euros, depending on the payback period and whether some units will be purchased, in addition to leases.

PPC has already reached an agreement with Greek construction and energy group GEK-TERNA for the purchase and transfer to Crete of the latter’s 147-MW gas-fired power plant, currently stationed in the Viotia area, northwest of Athens.

PPC, which has undertaken the task of ensuring energy sufficiency on Crete, plans to have the power plant transferred and reinstalled on the island in time for this coming summer, when energy demand typically peaks.

At a meeting chaired by the energy ministry, a decision was reached to cover 75 percent of the power plant’s remuneration through the public service compensation (YKO) account, accumulating related surcharges added to all electricity bills.

PPC developing into a southeast European force

Greek power utility PPC is establishing itself as a leading player in southeast Europe and the Balkans, an energy market offering the potential of roughly 40 million consumers, its top-ranked officials have told a Capital Markets Day event in London.

PPC’s leadership presented the energy group’s ambitious business plan, a nine billion-euro investment package, at the London event, staged yesterday, as a strategy through which the company will strive to capture a substantial share of the Balkan market.

The business plan includes development, between 2024 and 2026, of an 8.9-GW renewable energy portfolio, one of southeast Europe’s biggest, as well as an upgrading 381,000 kilometers of grid networks in Greece and Romania.

PPC’s business plan promises to place the company in a market quadruple the size of the Greek energy market.

PPC holds a 51 percent stake in Greek distribution network operator DEDDIE/HEDNO and controls the distribution networks of three regions in Romania, including Bucharest, by far the country’s biggest.

Besides greater renewable energy interests, PPC also plans to soon offer a wide range of energy solutions for consumers, including smart-home products, home advisory services, and insurance packages, all of which will be available both in Greece, through the company’s fully-owned Kotsovolos electrical and electronics retail chain, as well as in neighboring markets through PPC’s associates.

Since its leadership change in the summer of 2019, when CEO Giorgos Stassis and his administrative team took charge, PPC has progressed from the brink of financial collapse to stability and growth, and is now in a commanding position in the Balkans. Analysts have not ruled out an upward revision of targets as a result of PPC’s potential.

PPC overachieved on its EBITDA target for 2023, which ended at 1.5 billion euros, well above a 1.1 billion-euro goal set in a 2020 business plan. This has led a growing number of analysts to believe that a 2.3 billion-euro EBITDA target set for 2026 could be achieved sooner.

PPC’s planned RES growth, to 8.9 GW by 2026, or 68 percent of the energy group’s production capacity, promises to secure greatly improved lending terms for the company, once one of Europe’s worst polluters.

PPC plans to shut down all of its existing lignite-fired power plants, totaling 1.5 GW, by 2026, which will slash the company’s CO2 emissions from 23.1 million tons in 2019 to 5.9 million tons in 2026. The energy group plans to continue operating its forthcoming Ptolemaida V power station for back-up services. It will initially operate as a low-emitting lignite-fired power station before eventually converting to natural gas.

PPC to present ambitious 4-yr business plan at London event

Greek power utility PPC, going from strength to strength in recent years, is expected to present a highly ambitious four-year business plan at a Capital Markets Day event in London on January 23.

PPC and investors anticipate a big year for the company in 2024, as suggested by a 65 percent rise of the company’s share over the past year.

The company has undergone a major revamp since the summer of 2019, when Giorgos Stassis was appointed CEO. PPC is now looking ahead with robust finances, without burdens and corporate mismanagement of the past, and possesses substantial amounts for big investments which other big players are keen to participate in.

PPC has the potential to consistently post annual operating profits of around two billion euros a year. Besides Romania, the company’s expansion plan now also includes Bulgaria, as well as a retail energy expansion plan through the company’s fully-owned Kotsovolos electrical and electronics retail chain, a leading force in the Greek market.

 

PPC agrees to buy GEK-TERNA power plant for coverage of Cretan needs

Power utility PPC has reached an agreement with Greek construction and energy group GEK-TERNA for the purchase and transfer to Crete of the latter’s 147-MW gas-fired power plant, currently stationed in the Viotia area, northwest of Athens.

PPC, which has undertaken the task of ensuring energy sufficiency on Crete, plans to have the power plant transferred and reinstalled on the island in time for this coming summer, when energy demand typically peaks.

PPC has included Heron I, the GEK-TERNA gas-fired power plant, into its package of solutions for energy sufficiency on Crete, both before and after the completion of a grid interconnection project to link Crete and Athens.

PPC and GEK-TERNA are now expected to complete their agreement imminently so that the the power plant’s transfer and reinstallation procedure can commence as soon as possible.

As reported by energypress earlier this week, the two companies had been engaged in advanced negotiations for quite some time.

An agreement for PPC’s purchase of the power plant was apparently reached by the two sides a while ago, but a remuneration formula for the power utility’s operation of the power plant on Crete, still not fully linked to the mainland grid, had remained pending.

At a meeting chaired by the energy ministry, a decision was reached to cover 75 percent of the power plant’s remuneration through the public service compensation (YKO) account, accumulating related surcharges added to all electricity bills. PPC will cover the other 25 percent.

The European Commission still needs to approve the remuneration formula as it involves state aid.

 

PPC’s Crete energy sufficiency plans include GEK-TERNA unit

Measures planned by power utility PPC to help cover the energy needs of Crete, Greece’s biggest island, before and after the completion of a grid interconnection project to link Crete and Athens, include Heron I, a 147-MW gas-fired power plant currently owned by Greek construction and energy company GEK-TERNA.

PPC, which has undertaken the task of ensuring energy sufficiency on Crete, has reached advanced negotiations with GEK-TERNA to purchase the Heron I power plant and transfer it from its current Viotia location, northwest of Athens, to Crete.

The power plant’s installation on Crete could be completed in time for 2025’s summer season, a period when energy demand typically soars on the Greek islands as a result of tourism.

Heron I’s launch on Crete in the summer of 2025 would help safeguard the island from any energy insufficiencies should the commercial launch of the Crete-Athens grid interconnection, scheduled for the same summer, be delayed by a few months. Such a delay would leave Crete short of 220 MW, energypress sources informed. Heron I is also equipped to run on diesel.

In the meantime, PPC needs to take swift action to ensure Crete’s energy sufficiency for this coming summer, when the island’s energy deficit is projected to reach 190 MW.

Agreement reached for PPC’s CHP plant in northern Greece

Power utility PPC’s delayed combined heat and power (CHP) plant in the west Macedonia region, northern Greece, to produce electricity and also cover the region’s thermal energy needs, has been put on track for development following talks and an agreement between leading energy ministry and PPC officials.

Remuneration terms for the prospective CHP facility’s output were agreed to at the meeting, securing its sustainability. As a result, PPC is soon expected to stage a tender offering a contract for the facility’s construction, planned to be completed over an 18-month period.

The west Macedonian CHP, to be installed at Kardia, will have an electrical capacity of 105.34 MW and a thermal capacity of 66.47 MW. It will be fueled by natural gas, while its engines will be hydrogen-ready for a hydrogen gas (H2) proportion of over 10 percent in the natural gas mix, without any compromise on engine efficiency and power output.

North Macedonia universal supply tender a battle for EDS

EDS, a subsidiary of Greek power utility PPC, appears set to face strong competition in a tender offering a contract for North Macedonia’s universal electricity supply.

At least five more bidders have expressed interest in the tender ahead of tomorrow’s bidding deadline, sources have informed.

EDS, strongly supported by parent company PPC, intends to submit a highly competitive offer that would greatly undercut an 11.5 percent profit margin maintained by North Macedonia’s current universal electricity supplier, Austrian company EVN. It remains to be seen if rival bidders will do likewise.

Bidders face stricter participation terms in this tender compared to the previous procedure, staged five years ago. These include a working capital requirement of 40 million euros, a condition that could trouble EDS, as noted by officials in the neighboring country.

EDS, in a company statement released just days ago, has denied requesting changes to the tender’s terms, noting it intends to participate with a highly competitive offer significantly reducing the existing contract’s profit margin to the benefit of end users.

PPC and construction firm Archirodon, the only bidders in a tender staged by the North Macedonian government for the construction and operation of a 333-MW Cebren hydropower plant at the Crna Reka river, in the country’s southwest, and operation of an existing 116-MW Tikves hydropower station, also at this river, were initially announced  winners, but the tender ended up being cancelled.

PPC rivals fear low gas prices may sustain pricing aggression

Power utility PPC, the domestic market’s dominant and influential player, clearly subdued its new variable green tariffs – introduced January 1 by all suppliers – to the greatest degree possible, setting a lower-than-expected rate of 13.63 cents per KWh for January that forced most rivals to respond with green tariffs that averaged 15.4 cents per KWh, overall for independent suppliers, rather than levels of between 16 and 17 cents per KWh, which they would have preferred.

Natural gas prices in international markets have been on a downward trajectory over the past few days, a trend that may encourage PPC to maintain its aggressive pricing policy for a second consecutive month when it sets green tariff levels for February in three-and-a-half weeks’ time.

The prospect has raised concerns among independent suppliers, fearing they may not be able to endure suppressed profit margins for a second month running and, instead, set tariffs at between 16 and 17 cents per KWh to avoid sacrificing profit once again.

Independent suppliers will be keeping a close watch on any consumer shifts this month before deciding on their tariff levels for February.

Besides variable green tariffs, the newly introduced tariff system, also includes fixed blue tariffs and variable yellow tariffs.

Consumers had up until December 31 to express preferences or be automatically transferred to the green-tariff category by their suppliers.

Consumers automatically transferred to green tariffs represented at least 70 percent of the respective client bases of all suppliers.

 

PPC sets green tariff at 13.63 cents per KWh for January

A drop in wholesale electricity prices during the second half of December has enabled power utility PPC to launch its variable green tariff at a lower-than-expected rate of 13.63 cents per KWh for January.

The country’s electricity suppliers have just launched their new tariffs under the country’s new tariff system, introduced January 1.

PPC’s aforementioned green tariff rate concerns monthly low-voltage consumption of up to 500 KWh. The company’s green tariff for monthly consumption over 500 KWh has been set at 14.59 cents per KWh. Also, PPC’s nighttime green tariff rate was set at 11.55 cents per KWh.

The new green tariffs introduced January 1 have been implemented automatically for all consumers, unless they formally objected in the lead-up, up until December 31, and opted for other tariff categories.

Fixed tariffs, dubbed blue tariffs, as well as variable yellow tariffs have been made available under the revamped tariff system.

From now on, suppliers will be announcing green tariffs on the first of each month. Levels announced will remain valid for a month.

Elsewhere, Volton set a green tariff rate of 14.41 cents per KWh, including a 20 percent discount and 20 percent punctuality discount.

Elpedison set its green tariff at 17.06 cents per KWh. Zenith’s green tariff, dubbed Power Home Start, was set at 16.9 cents per KWh. Fysiko Aerio set a green tariff rate of 14.26 cents per KWh, including a punctuality discount.

Volterra’s green tariff, including a discount, is 14.39 cents per KWh. Heron set a rate of 14.05 cents per KWh, including a punctuality discount. NRG’s green tariff is priced at 14.1 cents per KWh, while Protergia’s green tariff, including a discount, was set at 14.26 cents per KWh.

 

PPC to present ambitious business plan at London event

Power utility PPC is currently adding final touches to a new and highly ambitious four-year business plan scheduled to be announced January 23 in London, at a Capital Markets Day event, before an audience of international analysts and institutional investors.

They will be expecting news from PPC’s leadership on the energy group’s priorities abroad, including its next big steps planned for the Balkans; a retail energy expansion plan through the group’s fully-owned Kotsovolos electrical and electronics retail chain, a leading force in the Greek market; as well as news on the company’s plans for promising new sectors such as fiber optics and waste management through public-private partnerships.

PPC is also looking to capitalize on company-owned properties that have remained unutilized for decades.

Over the past few years, PPC has enjoyed a period of tremendous growth that has led to a 50 percent increase in financial figures, over 9 million customers, 14 GW in renewable energy projects, and 340,000 kilometers of networks.

Under the leadership of its CEO Giorgos Stassis, PPC is steadily growing into an energy group of international proportions and a dominant force in southeast Europe. Investments in Romania are a key part of this strategy.

 

North Macedonia gov’t holds back on hydropower plant deal

The North Macedonian government’s apparent reluctance to complete an agreement with a consortium comprised of Greek power utility PPC and construction firm Archirodon for the development of the prospective Cebren hydropower plant, at the Crna Reka river, despite cabinet approval in September, has prompted various officials to suspect the neighboring country’s administration is seeking to put a brake on the agreement.

The North Macedonian government has been calling for additional terms, while, in most recent statements, Kaja Sukova, its environment and physical planning minister, suggested the consortium would be to blame if the agreement were not completed.

The consortium is raising objections about terms being discussed, while the deadline for completing the agreement has already been extended to mid-January, the minister noted.

The dispute concerns the ordering of the project’s concession contract and issuance of a water-usage permit. Archirodon wants the concession contract to precede the permit procedure, whereas the North Macedonian government is pushing for the opposite.

PPC and Archirodon submitted the only complete offer to a tender staged by the North Macedonian government for the construction and operation of the 333-MW Cebren hydropower plant and operation of an existing 116-MW Tikves hydropower station, also at the Crna Reka river, in the country’s southwest.

The Cebren hydropower plant, expected to offer annual electricity output of between 1,000 and 1,200 GWh, is planned to involve the neighboring country’s state-owned power producer ESM as a minority partner with a 33 percent stake. The project’s cost is estimated to reach one billion euro.

A total of 13 previous tenders held since 2006 for the Cebren hydropower plant have all proved fruitless. North Macedonia is entering an election year, increasing fears of further ambiguity regarding the project agreement’s prospects.

Competition remains strong for second storage auction

A total of 55 applications representing standalone batteries with 1,668 MW in capacity have been submitted by RES investors to a second auction offering investment and operational support for standalone batteries, a solid turnout ensuring the strong competition registered at the first auction will be maintained.

Investment and operational support will be offered to projects totaling 288.21 MW, meaning applications for participation have oversubscribed this capacity by 5.7 times.

The field of contestants will be finalized at noon today, when a deadline for letters of guarantee expected from participants is set to expire.

According to sources, most participants have already submitted their letters of guarantee with applications. As a result, the number of participants is not expected to diminish.

All participants face 100-MW capacity limit totals for projects submitted to the first two auctions. Helleniq Energy, power utility PPC and Intrakat already exhausted this limit through the first auction and, as a result, cannot participate in the follow-up procedure.

Virtually all other major energy groups with a market presence in Greece have applied to  participate in the second auction, sources informed. These include, TERNA Energy, Mytilineos, the Copelouzos group, Elpedison, MORE, Enel, EDF, EDPR, BayWa, KiEFER and Faria.

A total of 12 projects were successful in the first auction, securing guaranteed revenues of between 34,000 and 64,100 euros per MWh for a year. A starting price of 115,000 euros per MWh, for a year, has been set for the second auction. Bidding is not expected to drop below 45,000 euros per MWh, for a year, market officials have projected.

 

Low-level fixed tariffs appealing for consumers

Fixed tariffs, which proved unpopular during the energy crisis as the absence of state subsidies – for this category – made them exorbitant, are now making a strong comeback.

Dubbed “blue tariffs” under the country’s new tariff system set to be introduced January 1, fixed tariffs have regained their appeal among consumers as the mild winter weather conditions in Europe and low natural gas prices have kept wholesale electricity prices at unusually low levels for this time of the year.

This is enabling fixed tariffs to be set at prices not expected to exceed variable green tariffs by more than 3 or 4 cents per KWh when they are also introduced at the beginning of the new year.

To date, five electricity retailers – PPC, Protergia, Elpedison, Heron and Elin – have announced new fixed tariffs, or blue tariffs, ranging between 14.9 and 17.9 cents per KWh. Other suppliers are expected to follow.

At such levels, many consumers are expected to opt for slightly higher-cost fixed tariffs rather than have to go shopping for the lowest-cost variable tariffs each month.

All this applies under the condition that the average wholesale electricity price for December remains at its current average of 105.07 euros per MWh all the way through the end of the month.

The new green tariffs being introduced at the start of the new year will be implemented automatically, for all consumers, unless they formally object and choose other categories.

Retail electricity market shares unchanged in November

Latest retail electricity market share figures, covering November, showed little change compared to the previous month, data released by the energy exchange has shown.

Power utility PPC’s retail market share edged up to 52.15 percent in November from 51.89 percent in October, the figures showed.

Heron continued to lead the pack of independent suppliers with a 12.94 percent market share, up slightly from October’s 12.79 percent. The Mytilineos group’s Protergia followed with a 7.91 percent market share, marginally down from October’s 8.24 percent, with Elpedison ranked third amongst the independent suppliers, registering a 6.49 percent market share, slightly up from 6.44 percent in October.

Elsewhere, NRG’s market share fell modestly to 5.60 percent from 5.79 percent in October; Watt and Volt captured a 5.12 percent, up from 5.09 percent in October; Fysiko Aerio EEE’s market share was 3.53 percent, up from 3.47 percent; Zenith’s performance rose to 2.31 percent from 2.19 percent; Volterra registered 2.09 percent from 2.20 percent, and Volton edged up to 1.17 percent from 1.15 percent.