ppc

‘PPC ideally positioned to lead energy transition in SE Europe’

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Power utility PPC is ideally positioned to lead the energy transition in southeast Europe, despite complexities in the Balkans ranging from political stability to war, Giorgos Stassis, CEO at PPC, has told the annual conference of the Center for Strategic and International Studies (CSIS), in Washington, D.C., an event for which he was a keynote speaker.

The annual CSIS conference, specializing in international strategy and security issues, also featured Jeffrey Pyatt, US Under Secretary of State for Energy, as a main speaker.

Renewables have a major role to play in “ensuring that we have a planet where we can all live without compromising access to affordable energy,” Stassis, the PPC chief, told the event, adding that, besides offering clean energy, renewable energy also bolsters energy security.

However, there are limits to how far a country can go by relying solely on domestic renewable energy production, Stassis underlined. “Energy systems need to be flexible to ensure stability, reliability and cost-effectiveness. Flexibility is provided by energy assets such as batteries and gas-based power plants, as well as crucial infrastructure, including resilient electricity grids and interconnections between countries,” the PPC boss continued.

Energy market conditions in the Balkans differ greatly from country to country, Stassis pointed out. Romania, for example, relies little on natural gas imports, whereas Bulgaria is very dependent, he explained. Also, some Balkan countries, such as Greece, have made great progress in terms of energy transition, while others, especially in the western Balkans, lag behind, he added.

 

Independent suppliers make slow but steady gains on PPC

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Independent electricity suppliers are slowly but steadily gaining ground on power utility PPC, the Greek retail electricity market’s dominant player, an annual market share report published by the energy exchange has shown.

PPC ended 2023 with a market share of 57.43 percent, down from 63.14 percent a year earlier, while the independent players gained ground for a collective market share of 42.57 percent at the end of 2023, up from 36.86 percent at the end of 2022.

These inversely related trajectories have generally been sustained since the launch of the target model in 2020. PPC has shed approximately 10 percent of its market share over this four-year period.

As for the country’s independent suppliers, Heron led the pack at the end of 2023, overtaking Protergia, the independent frontrunner in 2022.

In 2023, Heron, as supplier, gained two industrial consumers, metal processing company Viohalko and cement producer Titan. Both switched from PPC, which maintained its role as producer. Other industrial consumers also switched from PPC to rival suppliers, resulting in a sharp market share contraction for the power utility in the high-voltage category.

RES units in industrial PPAs for fast-track links reach 2 GW

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RES investors looking to benefit from a recent legislative revision offering connection-term priority to projects that have established PPAs with industrial consumers have until today to submit power purchase agreements to authorities.

RES projects signed up so far for PPAs with industrial consumers represent a total capacity of 2 GW, energypress sources have informed.

These PPAs include renegotiated agreements between power utility PPC and metal processing company Viohalko and cement producer Titan, for respective capacities of 520 and 300 MW, the sources noted.

Both Viohalko and Titan had signed PPAs with PPC prior to the energy ministry’s amendment offering connection-term priority to RES projects, but were renegotiated at the initiative of the two industrial consumers after they pointed out that new market conditions had been shaped by the legislative act.

According to sources, both Viohalko and cement producer Titan achieved deals well below the level of 56 euros per MWh agreed to for their original PPAs.

Yellow variable tariffs undercut green tariffs again in March

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Variable yellow tariffs offered by electricity suppliers through the country’s new color-coded tariff system, introduced January 1 to simplify price comparisons, were lower-cost options than their variable green-tariff alternatives for a third consecutive month in March, despite a significant drop in green tariffs.

Yellow and green tariffs are both variable tariffs, but the former are set at the end of each month.

Some suppliers offered yellow tariffs that were as much as 18 percent lower than their green tariffs in March, a comparison of offers has shown.

Yellow tariffs averaged a price of 10.27 cents per KWh last month, 3 percent lower than the month’s average for green tariffs, which was 10.58 cents per KWh. Yellow tariffs offered by suppliers ranged from 9.13 cents per KWh to 12.85 cents per KWh in March.

Power utility PPC, the retail market’s dominant player, offered a yellow tariff level of 9.83 cents per KWh in March, for monthly consumption of up to 500 KWh, and a green tariff of 10.83 cents per KWh.

Protergia’s yellow tariff, dubbed Value Fair, was set at 9.18 cents per KWh in March, while its green tariff offer was priced at 10.78 cents per KWh.

Elpedison offered a Smart yellow tariff of 9.83 cents per KWh in March, 9 percent lower than the supplier’s green tariff, priced at 10.76 cents per KWh.

NRG’s Time 4U yellow tariff was set at 10.64 cents per KWh in March, 7 percent below its green tariff offering of 11.50 cents per KWh.

On the same wavelength, Zenith’s Power Home More yellow tariff in March was priced at 9.81 cents per KWh, 6 percent lower than its green tariff, priced at 10.47 cents per KWh.

PPC, Mytilineos €2bn RES deal converges company strategies

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Power utility PPC has reached a 2 billion-euro deal with the Mytilineos group for the purchase of a renewable energy portfolio containing roughly 2 GW of solar-farm projects at various stages of development in Bulgaria, Croatia, Italy and Romania.

The deal secures major benefits for both sides. It greatly expands PPC’s RES portfolio and offers the company firmer standing along the Balkan corridor, a position promising to serve its strategic goal of becoming a leading player in green energy, key infrastructure and services in southeast Europe.

As for the Mytilineos group, the 2 billion-euro cash influx from this sale agreement, consisting of 90 solar farm projects, underlines the success of the company’s strategy to develop and sell RES projects, a strategy chosen by its management from the outset and designed to seize on energy-transition opportunities.

Mytilineos will develop, for PPC, ready-to-use solar farms covering the energy needs of 320,000 households in Bulgaria, Croatia, Italy and Romania.

Besides expanding PPC’s presence in the Balkans, the deal, a show of the once-troubled company’s financial strength, also offers entry into a new market, Italy, which the power utility has been eyeing for quite some time. Italy is the EU’s second biggest economy and Europe’s biggest electricity importer.

The nature of the agreement is unprecedented as two fellow Greek corporate groups have combined to secure major growth for both abroad.

 

PPC announces strong results, dividends after 10 years

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Power utility PPC has posted robust annual financial results for 2023, including a liquidity figure of 5.4 billion euros, 2.8 billion euros of this amount in cash reserves, as well as operational profitability of 1.5 billion euros.

The performance, which has prompted PPC to announce a dividend payout to shareholders for the first time in ten years, offers the company protection for precarious times, gives it the ability to expand further in Greece and abroad, acquire new RES portfolios, and keep pursuing plans.

PPC shareholders will receive a dividend of 0.25 cents per share, the company announced. The Greek state stands to receive 32 million euros in dividends through Greek privatization fund HRADF/TAIPED’s 34.12 percent stake in PPC.

The dividend payout could be interpreted as a declaration, by PPC, of its complete financial comeback following years of turmoil. PPC has made a gradual return to solid ground since 2019, under the leadership of CEO Giorgos Stassis.

PPC now needs to mitigate any risks entailed in implementing its business plan covering 2024 to 2026, which includes new investments worth 9 billion euros, of which 44 percent concerns renewables.

The power utility has already secured nearly 70 percent of its renewable energy capacity target for 2026, the chief executive explained to analysts yesterday.

Last year, PPC managed to restrict the role of lignite in its energy production to just 22 percent, a contraction that saved the company a lot of money.

Once regarded as one of the EU’s worst polluters, PPC reduced its CO2 emissions by 24 percent in 2023, down to 9.7 million tons from 14.8 million tons a year earlier.

 

Electricity theft battle hardens, tax authority joins effort

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Efforts by Greek authorities to clamp down on electricity theft are being intensified as distribution network operator DEDDIE/HEDNO, on the front line of the battle, is now been provided detailed information by the Independent Authority for Public Revenue (AADE), including tax office details of taxpayers, tax file numbers, full names, as well as residential and business addresses of electricity consumers.

With such details at its disposal, made possible by a new legislative act forwarded by the energy ministry, DEDDIE/HEDNO will be able to cross-examine tax file numbers declared by customers.

The energy ministry had promised to take such action last autumn. At the time, the ministry had discovered a considerable amount of nonsensical information, including roughly 1.5 million power meters registered on power utility PPC’s records without owners or tax file numbers.

This discovery prompted the energy ministry to decide to ask DEDDIE/HEDNO to proceed with cross-examinations of tax file numbers and power meters in collaboration with AADE, the tax authority.

Most suppliers slightly increase green variable tariffs for April

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Most of the country’s electricity retailers have slightly increased their green variable tariffs for April, confirming an energypress forecast.

Green variable tariffs average 10.8 cents per KWh in April, a 3 percent rise compared to the average level of 10.5 cents per KWh in March.

Power utility PPC, the dominant retail electricity player, marginally increased its green variable tariff for March to 10.861 cents per KWh (for monthly consumption of up to 500 KWh) from 10.827 cents per KWh the previous month.

Three suppliers, Fysiko Aerio, NRG and Volterra, slightly reduced their variable green tariffs for April.

Green variable tariffs this month range from 9.06 cents per KWh to 11.71 cents per KWh. They ranged between 8.18 cents per KW and 11.5 cents per KWh in March.

Protergia increased its April green variable tariff by 8 percent to 11.624 cents per KWh, including a punctuality discount.

Heron’s green variable tariff for April was set at 11.555 cents per KWh (including a punctuality discount), up from 10.304 cents per KWh in March.

Elpedison increased its green variable tariff by 11 percent to 11.005 cents per KWh for the first 100 hours of monthly consumption.

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, fixed blue tariffs were also introduced.

Electricity suppliers’ windfall earnings estimated at €250m

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A finalized figure, expected imminently, on windfall earnings gained by electricity suppliers between August, 2022 and the end of 2023, the period during which energy-crisis measures were implemented, is projected to reach roughly 250 million euros, energypress sources have informed.

Virtually all windfall earnings will go towards partially covering amounts owed by municipal water supply and sewerage companies (DEYA) to power utility PPC.

RAAEY, the Regulatory Authority for Waste, Energy and Water, completed its windfall earnings calculations last month and has informed the energy ministry of its results.

Authorities still need to determine and factor in a normalization coefficient, which is expected to produce the aforementioned windfall earnings sum of approximately 250 million euros.

The normalization coefficient is designed to adjust megawatt-hours suppliers are charged monthly – based on their declarations submitted to the Energy Exchange – with actual megawatt-hours they have used.

Once this coefficient is finalized, the energy ministry will be able to validate the windfall earnings sum and proceed with its recovery from electricity suppliers.

 

Energy groups, industry agree on energy transition issues

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Support for industry expressed by Greek power utility PPC and other major European energy utilities through the recent Antwerp Declaration illustrates a common understanding of existing energy-transition problems, or common acceptance that zero-carbon goals in Europe may be right but roads leading to their achievement are not.

PPC is one of many signatories backing the Antwerp Declaration for a European Industrial Deal. It was presented in February following an agreement between seventy-three industry leaders and has since been endorsed by nearly 570 companies representing twenty industrial sectors, as well as 803 organizations and 186 associations and unions.

Besides PPC’s CEO Giorgos Stassis, the Antwerp Declaration has also been endorsed by CEOs of other energy utilities and companies, including Patrick Pouyanné of TotalEnergies, Luc Rémont of EDF, and Adriano Alfani of the ENI group.

The declaration underlines the commitment of industry to Europe and its transformation and outlines urgent industry needs to make Europe competitive, resilient, and sustainable in the face of dire economic conditions.

Industry’s concerns are justified as, despite the sector’s willingness to invest in new clean technologies, European bureaucracy often acts as a deterrent, forcing some industries to consider establishing new bases beyond the continent.

The declaration has brought together major players across Europe who agree that energy costs on the continent are too high and exacerbated by too many regulatory burdens. The consensus expressed by these signatories highlights that Europe is right in pursuing zero carbon targets, but doing so by de-industrializing is wrong.

Ministry multi-bill filled with energy sector initiatives

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An energy ministry multi-bill to be forwarded for consultation imminently, possibly this Friday, following numerous revisions, includes at least twenty energy-sector provisions.

These include a new legal framework for boosting grid capacity; Apollo, a 20-year RES support program envisaged to offer solar-energy output to low-income households and local government organizations; a revision facilitating a new combined heat and power (CHP) plant planned by power utility PPC at a former lignite-fired facility in Kardia, northern Greece; an SVP for floating solar farms as a pilot project, beginning with 10 MW at sea and 8 MW in lakes and reservoirs; as well as an SVP for the development of offshore wind farms, an effort overseen by EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company.

The multi-bill also includes pending issues announced last year, such as a new electricity theft framework; and a revised universal electricity supply service – currently offered by the top five electricity suppliers, based on market share, as a last-resort service to non-punctual consumers who have been blacklisted by suppliers – to be limited to four months.

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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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.