PPC Renewables, RWE set to finalize PV partnership today

PPC Renewables, a power utility PPC subsidiary, and Germany’s RWE Renewables are expected to seal their joint venture agreement today, paving the way for the development of solar energy projects to offer a total capacity of nearly 2 GW, energypress sources have informed.

PPC Renewables will contribute 940 MW in PV projects, planned to be developed at the location of the Amynteo lignite mines in northern Greece. The company has already secured a first batch of environmental permits for these projects.

RWE will offer producer certificate licenses bought from Greek company IDEA. These licenses are for two solar farms with respective capacities of approximately 700 and 300 MW.

The joint venture plans to start with the Amynteo projects, their development expected to begin in the first half of 2022. PPC Renewables has already formed nine special purpose vehicles for these projects.

RWE Renewables, holding a 51 percent stake in the joint venture, has established a subsidiary in Greece, RWE Greece, currently being staffed.

PPC’s board had approved the agreement between the two partners in February.

PPC Renewables, RWE set to finalize joint venture agreement

PPC Renewables, a power utility PPC subsidiary, and Germany’s RWE Renewables are expected to finalize a joint-venture agreement at the beginning of October for solar energy projects in Greece to offer a total capacity of nearly 2 GW.

PPC Renewables plans to contribute to the joint venture 940 MW in solar energy projects at Amynteo, the northern Greece location hosting 4,360 hectares in company lignite fields to be repurposed as part of the decarbonization effort. The Greek company has already received a first round of environmental permits.

RWE Renewables is at the final stage of its search for solar energy projects to total 1 GW.

The two partners will begin their collaboration with the Amynteo project. They plan to begin its development in the first half of 2022. PPC Renewables has established nine special purpose vehicles for these projects.

RWE Renewables, holding a 51 percent stake in the joint venture, has already established a Greek subsidiary, RWE Greece, currently being staffed.

Talks between PPC Renewables and RWE Renewables have intensified since early summer. The respective company heads, Konstantinos Mavros and Katja Wünschel, discussed the prospective partnership at the recent 5th Greek-German Economic Forum, while RWE officials have also visited Athens for negotiations.

PPC Renewables, RWE joint venture to be launched October

A joint venture agreed to by PPC Renewables and RWE Renewables, respective subsidiaries of Greek power utility PPC and German power company RWE, will be launched in October with the objective of developing solar farms with an overall capacity of up to 2 GW in Greece over the next three to five years. The investment plan is worth over one billion euros.

As previously reported, the two energy groups will each contribute 1 GW in solar parks to the joint venture, with RWE Renewables holding a 51 percent share of the company.

The partners intend to begin developing RES facilities by the first half of next year. PPC Renewables has made progress with licensing procedures for the majority of its projects planned for the western Macedonia region in northern Greece. These prospective units will be included in the joint venture’s portfolio.

The joint venture’s projects are expected to create some 1,000 jobs during development.

 

Energy investment activity rising, focus on RES projects, energy transition

Investment activity in the domestic energy sector is rising with major deals being negotiated, the main focus being on renewables and the energy transition, participants at yesterday’s Delphi Economic Forum made clear.

This activity promises significant growth for all RES technologies, even the more innovative, such as offshore wind farms and energy storage units.

Major energy players are moving to capitalize on opportunities that are emerging as the country pushes ahead with its decarbonization effort. Also, investor talks concerning domestic and international partnerships, the latter promising to secure expertise in sectors such as offshore wind farms, are in progress.

Power utility PPC, moving ahead with RES investments, aims to have launched projects with a total capacity of 1.5 GW by 2023. The utility’s redevelopment plan for the country’s two lignite-dependent regions, Ptolemaida, in the north, and Megalopoli, in the Peloponnese, is in progress.

PPC plans to invest 3.4 billion euros on RES project development in these regions, and an upgrade of their distribution networks, Konstantinos Mavros, chief executive of PPC Renewables, a PPC subsidiary, told the forum.

PPC is also expected to establish partnerships facilitating its entry into the offshore wind market. In addition, the company also aims to have formed a joint venture with German power company RWE by the end of summer for development of RES projects totaling 2 GW.

Elsewhere, energy company Mytilineos is also preparing a strategic alliance with a major international group for its entry into the offshore wind farm sector.

Mytilineos is also close to completing, this year, a major post-lignite investment in natural gas-fueled electricity generation. In addition, the company plans to develop 300 MW in wind farms and 1.5 GW in solar farms over the next two years.

Furthermore, Mytilineos plans to develop 20 energy storage projects, each with 50 MW capacity, by utilizing its immense knowhow gained in this field through involvement in such projects abroad.

Hellenic Petroleum (ELPE) is preparing RES and digital transition projects and will concurrently focus efforts to reduce carbon emissions and develop more eco-friendly products, including biofuels and hydrogen.

The Copelouzos group is nearing an investment decision on the development of a natural gas-fueled power station in Alexandroupoli, northeastern Greece. A decision is expected this summer. The group is currently engaged in talks with neighboring North Macedonia’s power utility for its possible entry into this project as a minority partner.

As for networks, power grid operator IPTO has planned numerous projects as part of a ten-year investment plan worth five billion euros. The operator anticipates new RES project penetration of 17 GW, a forecast exceeding the National Energy and Climate Plan’s goals.

DEDDIE/HEDNO, the distribution network operator, has put together a 3 billion-euro investment plan for the two next regulatory periods, each four years long. Projects include network undergrounding, service upgrades and improvement, new technologies, as well as grid digitalization projects.

Work on PPC Renewables 200-MW solar park starting April

Development of a major-scale 200-MW solar farm planned by PPC Renewables in Ptolemaida, northern Greece, a project budgeted at 110 million euros, is expected to begin in approximately one month.

A series of pre-construction procedures are expected to be completed within the next four weeks, enabling the Mytilineos Group’s METKA EGN, the project’s contractor, to begin work on this project. It represents the biggest part of a 230-MW solar energy project cluster planned by PPC Renewables.

A first 15-MW cluster has already been completed, while a second section representing an equivalent capacity is now being developed and should be ready by autumn.

Work on another big solar farm project planned by PPC for Megalopoli in the Peloponnese, to offer a capacity of 50 MW, is expected to begin in June.

On another front, PPC Renewables is currently working on establishing a major joint venture with Germany’s RWE by July or August.

PPC Renewables and RWE are currently working through a series of matters, including a number of legal issues. RWE will hold a 51 percent stake in this venture.

The two partners plan to equally contribute solar energy projects for a total capacity of 2 GW and a total value of approximately one billion euros, once developed, to this joint venture.

Talks on which projects each partner will choose to contribute to this joint venture remain at an early stage.

PPC Renewables is expected to contribute PV licenses concerning the west Macedonia and Megalopoli areas, while RWE is seen contributing project licenses or anticipated Greek project acquisitions being eyed by the German company for quite some time.

 

PPC board approves joint venture agreement with RWE

The board at power utility PPC has unanimously approved an agreement between fully owned subsidiary PPC Renewables and Germany’s RWE Renewables for solar energy project investments and a portfolio of up to 2 GW through a joint venture to be established in June, PPC has announced.

RWE Renewables will hold a 51 percent stake in the joint venture with 49 percent going to PPC Renewables, PPC specified.

Development of the collaboration’s first projects, stemming from the PPC Renewables portfolio, is expected to begin early in 2022.

PPC will initially limit its involvement to contributing licenses, not capital, to the joint venture, while RWE Renewables will provide investment amounts required for the development of these early projects.

The joint venture’s establishment of a 2-GW solar energy portfolio will require investments estimated at one billion euros, while approximately 1,000 jobs will be created.

PPC set to endorse RWE joint venture deal, German firm to hold 51%

Power utility PPC’s board is today expected to endorse a joint-venture agreement reached some time ago with RWE, Germany’s biggest power producer, for RES investments.

The agreement, giving RWE a 51 percent share of the joint venture and PPC the other 49 percent, is expected to be PPC’s first of more to come for RES sector investments.

Today’s anticipated endorsement by the PPC board represents a first step towards the agreement’s implementation.

As chief partner of the joint venture, RWE will provide greater capital amounts for investments and maintain control.

The partners plan to establish a 2-GW portfolio of solar energy facilities in Greece, contributing roughly 1 GW each.

Their agreement was presented through a virtual conference on January 29, co-staged by Greece’s development and energy ministries.

PPC plans to develop major-scale solar energy farms in northern Greece’s west Macedonia region and the Peloponnese, amongst others, for this joint venture. RWE has yet to decide on its project contributions.

The German company intends to seek investment opportunities through thousands of producer certificate applications submitted to RAE, the Regulatory Authority for Energy, in a December licensing cycle. These applications represent a total capacity of 34 GW.

Given the Greek market’s current cost for installing PV facilities, estimated at 500,000 euros per 1 MW, the 2-GW portfolio planned by PPC and RWE represents a one billion-euro investment.

 

PPC, backed by positive news, on standby for bond issue

The Greek State’s recent bond-market outing for an unprecedented, in the country’s history, borrowing cost of less than 1 percent paves the way for power utility PPC to follow suit.

This low yield and strong attraction of institutional investors, who ended up with over 95 percent of the Greek State’s bond issue, combined with a steady interest by foreign investors in PPC’s portfolio are believed to be pushing the power corporation towards a more aggressive financing policy for a return to bond markets following a six-year absence.

However, PPC has yet to decide on when to make its move. The corporation has not planned a bond issue for this month or next, sources have informed energypress. Even so, a sudden decision cannot be ruled out, they added.

PPC has been contemplating a bond-market outing since late December, when Fitch Ratings delivered a positive credit rating. The US firm included, for the first time, PPC on the list of enterprises it rates and offered a BB ranking, two times better than a preceding B ranking delivered by S&P in November.

At the time, despite the good news, company sources insisted PPC’s objective to head to capital markets in the first half of 2021 remained unchanged.

But a wave of favorable news, which, besides the BB rating from Fitch Ratings, includes PPC’s securitization packages for unpaid receivables; the achievement of profit figures for a fourth successive quarter; a new business plan; the launch of a privatization procedure for distribution network operator DEDDIE/HEDNO; and an upcoming partnership agreement with Germany’s RWE for RES investments in Greece; has generated momentum for PPC.

A bond issue would help finance many of the company’s project plans, primarily in the RES sector, as well as distribution network investments. It will also enable PPC to restructure older debt for lower-cost borrowing terms.

PPC, RWE agreement near, aiming for RES joint venture by summer

PPC Renewables, a power utility PPC subsidiary, and RWE, Germany’s biggest power producer, are striving to launch a joint venture by next summer for RES investments in Greece.

The two companies, which signed a Memorandum of Understanding last March in Berlin for exchange of technical knowhow and RES development in Greece, are looking to equally contribute for the establishment of a joint RES portfolio totaling 2 GW.

State-controlled PPC is expected to offer its approval of the agreement between the two companies within the next few days, development and investment minister Adonis Georgiadis told an online New Year event staged yesterday by the Hellenic-German Chamber of Commerce and Industry.

However, the details of the PPC Renewables-RWE joint venture deal are not expected to be finalized until early February, according to sources.

The two sides have already agreed on the fundamentals of their partnership agreement, RWE’s local representative Giorgos Paterakis confirmed at the aforementioned event, adding that the two companies will soon have further, and more specific, details to announce.

Georgiadis, the development and investment minister, described the forthcoming partnership as one of the country’s two biggest green-energy developments, also naming a pilot electromobility investment planned by another German company, VW, on the Greek island Astypalea.

The two companies are also looking to collaborate on decarbonization.

METKA winning bidder for PPC Renewables 200-MW solar farm

PPC Renewables has named METKA as the winning bidder of a tender for the development of a 200-MW solar farm in the country’s north, in the west Macedonia region.

PPC Renewables’ most ambitious project to date, it constitutes the third and largest section of a 230-MW solar energy complex.

Swift development of this third section is expected as PPC Renewables has already secured the project’s financing needs from a group of Greek banks.

Construction of the project, to be equipped with bifacial panels and trackers, is expected to commence in March.

As for the 230-MW solar energy project’s two smaller sections, both 15 MW, one is nearing completion while construction work at the other is in progress.

PPC Renewables, a subsidiary of power utility PPC, is also moving ahead with a tender for a 50-MW solar energy project in Megalopoli, Peloponnese. Bids submitted by five major groups, Greek and foreign, seeking this project’s development contract have been opened.

The Megalopoli solar farm is planned to be Greece’s first RES project that will not participate in RES auctions for tariffs. Instead, PPC Renewables intends to establish two-way contracts through the target model framework.

Over the next 24 months, PPC Renewables plans to begin developing projects with a total capacity of 500 MW, which would put the company on track towards achieving an installed-capacity target of 1.5 GW by 2024.

Parent company PPC’s updated business plan includes investments totaling 3.4 billion euros by 2023, 34 percent of these in the renewable energy sector. PPC is aiming for a fivefold increase in RES output, from 0.3 to 1.6 TWh.

PPC Renewables, possessing the country’s biggest RES portfolio following its latest moves and plans, may utilize some of its RES licenses for joint ventures with Germany’s RWE. Recent meetings between the two sides have increased the likelihood of a partnership.

PPC Renewables portfolio boosted by 1.9 GW in producer certificates

RAE, the Regulatory Authority for Energy, has granted PPC Renewables producer certificates for a total capacity of 1.9 GW, a pivotal step in the power utility PPC subsidiary’s effort to realize its ambitious investment plan. It features the installation of major-scale solar energy parks in north Greece’s west Macedonia region, facing a post-lignite transition.

A proportion of these new producer certificates, which elevate PPC Renewables into a major PV market player, could be utilized for state-controlled PPC’s planned collaboration with Germany’s RWE. A prospective partnership between the two sides appears near, recent meetings between the two sides have indicated.

The establishment of this partnership is close to being finalized, energy minister Costis Hatzidakis told Parliament yesterday, confirming an energypress report.

PPC and RWE signed a memorandum of understanding last March. A team of RWE officials then visited lignite fields in the west Macedonia region. Ensuing talks have since intensified. A finalized agreement by the end of the year has not been ruled out.

PPC Renewables is already developing two key PV projects, a 230-MW solar energy facility in Ptolemaida, northern Greece, and a 50-MW solar park in Megalopoli, Peloponnese.

Development of about 15 MW of the Ptolemaida project and a high-voltage sub-station are expected to be ready around January. Construction of a further 15 MW is already in progress, while work on the project’s additional 200 MW is scheduled to begin in the first half of 2021.

As for the Megalopoli project, PPC Renewables is currently staging a tender offering a construction contract. Five major foreign and Greek groups have submitted bids.

PPC, going green, to present transformation plan on Monday

Power utility PPC’s new three-year business plan, to transform the company from a lignite-centered utility into a RES-focused enterprise backed by a range of modern and digital commercial services, will be officially presented on Monday by the state-controlled company’s board, headed by chief executive Giorgos Stassis (photo), with Prime Minister Kyriakos Mitsotakis in attendance.

A new company logo symbolizing PPC’s shift from lignite to renewables will also be unveiled at the event along with the launch of the motto “PPC welcomes the future”.

PPC’s trademark lightning bolt-bearing logo that has featured for years at the façade of the company’s Athens headquarters has already been removed to make way for the the new logo, to be unveiled at Monday’s event.

On the day, PPC will present details on its plan to develop a RES portfolio with a capacity of between 2,000 and 3,000 MW over the next three years. This effort will coincide with the utility’s phase-out of lignite-fired power stations.

The privatization plan for the forthcoming sale of a 49 percent stake in subsidiary DEDDIE/HEDNO, the distribution network operator, expected to begin towards the end of this year, will also be presented at Monday’s event.

So, too, will an abundance of new services, including house repair and maintenance insurance.

PPC’s new three-year plan, at its core, will aim for high profitability and an annual EBITDA figure of between 700 and 900 million euros. It will also detail the company’s interest in DEPA Commercial, a new gas utility DEPA entity headed for privatization.

On Monday, PPC will also offer an update on ongoing talks with investors, including Germany’s RWE, for the development of solar farms worth 1.2 billion euros in northern Greece’s lignite-dependent west Macedonia region.

Funds of between 500 and 550 million euros stemming from PPC’s securitization of unpaid receivables will be used to help finance RES investments. The company is also considering a bond issue for the end of the year. Funds to be raised through the prospective DEDDIE/HEDNO sale will also be used for these investments.

Sensing a bright future at PPC, a growing number of institutional investors and hedge funds from abroad are considering the company’s share. They include Allianz Global Investors, Bell Rock Capital, Helm Investment Partners, Bluecrest Capital Management, Polygon, Fiera Capital, Zenon and Prince Street Capital.

 

 

 

PPC Renewables, Germany’s RWE aim for business deal by end of year

PPC Renewables, a power utility PPC subsidiary, and RWE, Germany’s biggest power producer, have set an objective to develop a Memorandum of Understanding signed by the two sides last March into a realistic business agreement by the end of this year.

A team of RWE officials, completing a three-day working visit to Greece today, visited northern Greece’s west Macedonia region, a lignite-dependent area, for on-site inspections of areas offering investment interest to the German company.

Besides new projects, RWE is also keen to take on projects already being developed by other companies.

Details seen fostering the development of the MoU into a business plan, including project financing prospects and the establishment of working groups, were addressed by the two sides.

The visiting German team also held a meeting, yesterday, with the leadership of the development and investment ministry and the energy ministry’s secretary-general Alexandra Sdoukou.

The length of time required in Greece for RES licenses was discussed, as were financial incentives promised through the fair transition fund, an EU plan to support green economy transitions.

Motor Oil, PPC Renewables in talks for major wind energy park

Talks between PPC Renewables and the Motor Oil Hellas group for joint development, installation and operation of an island-based wind energy farm with a capacity of approximately 100 MW have reached an advanced stage, sources have informed.

The project’s feasibility, however, will depend on the development of a grid interconnection with the mainland system.

PPC Renewables and Motor Oil are currently examining details concerning the prospective wind farm’s sustainability, interconnection and financing. Once they have reached conclusions, the two sides will decide on whether to proceed with the project.

PPC Renewables and Motor Oil have already joined forces to express first-round interest in a tender offering a stake in DEPA Trade, a new entity established by gas utility DEPA.

PPC Renewables has set as a strategic objective the formation of partnerships with domestic and foreign players for new projects not included in the existing portfolio of parent company PPC, the power utility. PPC Renewables intends to develop these new projects without involvement by PPC.

The company’s wind energy park plan with Motor Oil could serve as a base for more projects involving the two sides.

PPC Renewables has already planned a series of collaborations with foreign partners, including Germany’s RWE, UAE group Masdar Taaleri Generation  D.O.O. (MTG), as well as EDP Renoveis, a Portuguese company with a Chinese main shareholder. PPC Renewables is striving to have developed RES projects with a total capacity of 1.5 GW by 2024.

Motor Oil has made clear its plan to broaden its portfolio with emphasis on green energy. The refining group wants to establish a solid presence in the renewable energy market through acquisitions and partnerships.

Motor Oil has already completed two acquisitions, a wind-energy purchase from Stefaner and a solar energy project acquisition from Metka EGN, a member of the Mytilineos group.

 

Lower-cost gas may save PPC an estimated €100m this year

The sharp drop in energy product prices, pressured by the coronavirus outbreak and an oil price war between Russia and Saudi Arabia, promises major and unexpected financial relief for power utility PPC.

The plunge of gas prices, alone, should benefit the Greek power utility by an estimated 100 million euros this year – assuming this drop is not ephemeral.

In the first half of 2019, PPC’s total purchasing cost for natural gas reached 222.5 million euros, a 57.1 percent increase.

In the liquid fuels category, PPC’s purchase expenses were also elevated, reaching 319.7 million euros, as a result of higher prices paid for mazut and diesel used by the utility at power stations on non-interconnected islands. To the delight of PPC, mazut and diesel prices are also tumbling.

Electricity tariff hikes made by PPC last September as well as a revised payback plan offering consumers greater incentive to service electricity-bill arrears through monthly installments are both producing favorable results.

A series of memorandums of cooperation, such as an agreement signed this week with Germany’s RWE, all promising dynamic penetration into Greece’s renewable energy market, offer further potential for PPC.

However, the power utility still faces an uphill struggle along its road to recovery. PPC’s financial results for 2019 will be announced in April.

 

PPC plans to launch RWE joint venture with 300-400 MW in projects

Power utility PPC plans to develop RES projects with a capacity of 300 to 400 MW as a first step in a prospective joint venture with Germany’s RWE. The two sides signed a Memorandum of Understanding in Berlin yesterday.

RWE also plans to add projects to the joint venture, either through license purchases or acquisitions of existing projects around Greece, a procedure expected to start soon.

A joint venture in the form of an SPV offering its partners a 51-49 percent share is expected to be established.

Projects currently in PPC subsidiary PPC Renewables’ portfolio are planned to be brought into the joint venture with RWE along with a fraction of new solar energy projects – totaling 2 GW – envisioned by the power utility for development at Greece’s lignite-dependent west Macedonia region.

PPC does not intend to include in the joint venture a new 230-MW solar energy project planned to be developed independently by PPC Renewables in three sections.

At present, the PPC Renewables portfolio consists of completed RES projects totaling 150 MW, 100 MW in projects under construction, as well as 280 MW in projects either licensed or about to be licensed.

RWE, according to a second section of the MoU, will offer guidance to PPC for its decarbonization effort.

 

RWE, to invest €1bn in Greek RES market, signing MoU today

German energy group RWE intends to invest approximately one billion euros in Greece’s renewable energy market over the next few years.

Details of the investment plan will be included in a Memorandum of Understanding expected to be signed today by the company heads of the German group and Greek power utility PPC at a Greek-German economic forum in Berlin.

RWE’s investment plan includes providing PPC expertise for its decarbonization effort. A prospective conversion of an existing PPC lignite-fired power station into a biomass facility, as well as joint investments in solar and wind energy projects with PPC subsidiary PPC Renewables are among the projects listed in the investment plan.

German renewable energy investment interest is focused on solar and wind energy projects. Other related technologies such as offshore wind facilities, as had been reported in the past, are not being considered.

RWE chief executive Rolf Martin Schmitz had informed Greek Prime Minister Kyriakos Mitsotakis of the German energy group’s interest to invest and provide knowhow at a meeting in Germany last October.

Between 2012 and 2018, RWE reduced its CO2 emissions by 60 million tons, a 30 percent reduction. The group, looking to be fossil fuel-free by 2040, will focus on further development in the RES and energy storage domains, an investment effort estimated at 1.5 billion euros. Germany has pledged to be carbon-free by 2038.

German players eyeing NECP opportunities ahead of Berlin forum

Greece’s major energy market opportunities, from the auto vehicle growth to decarbonization, renewable energy development, ambitious network investments and underwater cable interconnections are being eyed by German energy groups, preparing to participate at a high-level German-Hellenic Economic Forum next month.

The event, scheduled for March 9 in Berlin, is expected to be attended by Greek Prime Minister Kyriakos Mitsotakis and German Chancellor Angela Merkel, as a follow-up to a previous meeting between the two leaders in the German capital last August.

Greece’s new green agenda was tabled for the first time at that summer meeting, along with the idea to stage next month’s investment forum.

The Greek government, looking to execute an ambitious 44 billion-euro National Energy and Climate Plan by 2030, will gauge the level of German investor interest at the upcoming Berlin forum.

Leading German groups expected to participate at next month’s event include RWE, among the companies believed to be interested in supporting power utility PPC’s decarbonization effort, EON, eyeing opportunities at distribution network operator DEDDIE/HEDNO; as well as Enercon, seeking wind energy partnership. Prospective partnerships with Greek players such as PPC, Hellenic Petroleum (ELPE), Mytilineos and Terna Energy are expected to be discussed.

 

Terna

Energy deputy in Berlin Thursday for new round of bilateral talks

Moving on from his participation at this year’s Greek-themed Capital Link Forum in New York, deputy energy minister Gerassimos Thomas will be in Berlin Thursday for the third round of a Greek-German Action Plan on Bilateral Cooperation.

Greek and German officials will have an opportunity to discuss ensuing steps for energy-sector projects.

Germany’s energy minister is already familiar with Greece’s new National Energy and Climate Plan (NECP), presented by the Greek energy deputy last week at an EU council of energy ministers.

The Greek government has already shown an interest to utilize German decarbonization know-how following the fellow EU member state’s initiatives taken in this domain. The matter was discussed in October by Prime Minister Kyriakos Mitsotakis with the head of RWE.

Germany’s investment interest, consistently firm, has grown even stronger following the Greek government’s recent announcement of a plan aiming for a swifter withdrawal of power utility PPC’s coal generators.

Bilateral energy-sector cooperation was also keenly discussed at a Berlin meeting in August between the Greek leader and German Chancellor Angela Merkel.

Strong German interest exists for all of Greece’s forthcoming energy-sector privatizations. E.on, for example, is among the firms interested in a sale, announced yesterday, offering 100 percent of DEPA Infrastructure, a new entity that has emerged from a split at gas utility DEPA.

PPC in talks with over 10 local, foreign firms for RES ventures

Power utility PPC is considering renewable energy joint venture proposals by over ten companies, domestic and foreign.

The pool of firms interested in doing business with PPC includes Germany’s RWE, Italian companies such as Enel, French enterprises associated with the Greek power utility in the past, among them EDF, scores of Chinese companies, as was confirmed at a Shanghai forum early November, as well as numerous Greek companies.

PPC’s involvement in RES joint ventures will have an important place in the power utility’s new business plan, to be announced within the next 10 to 15 days, energy minister Costis Hatzidakis told a National Energy and Climate Plan (NECP) event yesterday.

The forthcoming business plan will officially signal the Greek power utility’s turn to the renewable energy sector, listing specific objectives.

Any partnership announcements should not be expected before the business plan’s presentation.

Plans for a PPC bond issue to finance the company’s expansion into the renewable energy sector are also in the making.

PPC’s favorable corporate image in Greece’s provincial areas, where renewable energy investments will be made, is a key factor drawing both local and foreign RES players towards prospective partnerships with the Greek power utility.

 

PPC lignite withdrawal plan to cost €4bn, German model indicates

The complete withdrawal of power utility PPC’s lignite-fired power stations by 2028, when Greece is expected to have decarbonized, according to a recent goal set by Prime Minister Kyriakos Mitsotakis, will cost an estimated four billion euros, if an approximation prepared by German electric utilities company RWE for Germany’s decarbonization effort is locally applied.

RWE has estimated Germany’s lignite withdrawal plan will cost 1.2 billion euros per 1,000 MW withdrawn from the system.

To achieve full decarbonization by 2028, Greece will need to withdraw 3.4 GW of lignite units.

The head of RWE, Rolf Martin Schmitz, who met with the Greek leader last week, expressed the Germany company’s interested to collaborate with PPC for joint development of RES projects and also provide expertise for the Greek utility’s withdrawal of lignite units.

RWE, which has already withdrawn some of its older lignite-fired units, remains Europe’s biggest polluter as it still maintains the continent’s largest lignite portfolio. RWE is currently negotiating its lignite withdrawal plan with the German state.

 

Decarbonization plan prompts German investment interest

Greece’s decarbonization plan, to be executed through a gradual withdrawal of power utility PPC lignite-fired power stations in the country’s west Macedonia region, in the north, and Megalopoli, in the Peloponnese, has prompted German investment interest.

The head of German electric utilities company RWE, Rolf Martin Schmitz, expressed an interest for green investments in Greece to Prime Minister Kyriakos Mitsotakis at a meeting yesterday in Germany. Schmitz highlighted his company’s knowhow in pursuing post-lignite plans.

The timing of yesterday’s meeting was not coincidental. Just weeks ago, Greece’s leader, speaking at the UN Climate Action Summit in New York, announced a decarbonization objective for the country by 2028.

Yesterday’s session can be seen as a follow-up to a meeting between Mitsotakis and German Chancellor Angela Merkel in Berlin last August.

The two leaders had discussed environmentally friendly investments and also announced a plan to stage an investment forum involving Greek and German firms possessing green energy experience.

The Greek government’s current search for a plan that will ensure a smooth transition to the post-lignite era no doubt signals investment opportunities in Greece for RWE.