Tuesday September 2, 2014 Search
Weather | Athens
29o C
23o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Greece to privatize power grid operator to help island tourism

The Greek parliament approved legislation on Thursday to privatize its electricity grid, seeking to attract investment and secure the energy supply of tourist destinations such as Santorini and Crete.

The law allows potential investors to buy a 66 percent stake of grid operator ADMIE, which runs about 11,000 kilometers (7,000 miles) of high-voltage power lines across the country.

The ADMIE sale is not part of Greece's obligations towards its international creditors under the terms of its 240 billion euro ($325 billion) bailout. But it is necessary to comply with European Union energy laws that say grid operators must be separate, stand-alone entities.

Energy Minister Yannis Maniatis told lawmakers the nation can't afford to invest the 2.5 billion euros it needs to extend the grid to the islands and lay new connections to neighboring countries such as Italy.

Because they lack connections to the grid, islands such as Santorini depend on polluting, blackout-prone, oil-fired power stations to provide electricity to millions of tourists each summer. Tourism generates about 15 percent of Greek economic output.

"We are spending 1 billion euros ($1.35 billion) a year on diesel and heavy oil to burn on the islands each year, Maniatis said.

New power links would also allow Greece to boost renewable energy production on its sun-baked, windswept islands and possibly export it to other countries.

But Greece's opposition and labor unions oppose the grid sale, fearing it is a precursor to fully privatize state-controlled power producer PPC, which currently owns 100 percent of ADMIE. The main opposition SYRIZA party pledged to reverse the sale, if it comes to power.

ADMIE's sale is expected to take place later this year. The Greek government will not obtain any money from it because all its proceeds will go to PPC.

ADMIE's buyer will run a regulated business with a fixed rate of return to recoup its investment. PPC has yet to value the stake. Greece late last year agreed to sell its natural gas grid operator DESFA on similar terms to Azeri company SOCAR for 400 million euros. [Reuters]

ekathimerini.com , Thursday February 6, 2014 (16:05)  
Bank concerns lead to fresh losses on bourse
Greece needs private debt overhaul, Piraeus Bank CEO says
Cheap energy pulls down eurozone producer prices in July
Greece sells 1.14 bln euros of 6-month T-bills, yield eases
Navys Prometheus brings doctors to remote Aegean islands
Naval support ship Prometheus will be touring the Dodecannese in the eastern Aegean from September 3-11 in order to provide residents of remote islands with primary healthcare, the Hellenic ...
Police seeks identity of woman injured in Thessaloniki hit-and-run
Police on Tuesday appealed to the public for help in identifying a woman who was hit by a motorcycle and left suffering serious injuries in Thessaloniki in August. The accident occurred on t...
Inside News
Grateful Saviola thanks Olympiakos, joins Verona
Former Argentina international Javier Saviola has thanked Greek champions Olympiakos for the "beautiful moments" during his season-long stint in Greece as he left the club to join Serie A ou...
SOCCER
Greece defender Papadopoulos fires parting shot at Michel
International defender Avraam Papadopoulos suddenly quit Olympiakos on Monday to join Turkish club Trabzonspor, and fired a parting shot at Olympiakos manager Michel putting the blame on the...
Inside Sports
COMMENTARY
Politicized archaeology
Let us suppose that archaeologists discover that the tomb uncovered in Amphipolis was not the resting place of Roxana or Nearchos, but of Alexander the Great. Let us assume, that is, that ar...
EDITORIAL
Moderating expectations
Politics is, to a great extent, all about managing expectations, and anyone who raises that bar too high or too fast is at serious risk of disappointing and losing the peoples favor. In a c...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Bank concerns lead to fresh losses on bourse
2. Navys Prometheus brings doctors to remote Aegean islands
3. Grateful Saviola thanks Olympiakos, joins Verona
4. Police seeks identity of woman injured in Thessaloniki hit-and-run
5. Armed robbers hold up post office in Thessaloniki
6. Greece needs private debt overhaul, Piraeus Bank CEO says
more news
Today
This Week
1. Politicized archaeology
2. Rain and storms with hail expected in many parts of Greece
3. Reforms to dominate Greek talks in Paris, debt relief talks later, says source
4. New committee formed to assess progress of deregulation in closed-shop professions
5. Moderating expectations
6. Trial over 2013 murder of pawn merchant starts in Athens
Today
This Week
1. Thessaloniki mayor Boutaris sworn in wearing yellow star amid Golden Dawn protests
2. The battle against progress
3. Attack on gay couple in Athens leaves one man needing surgery
4. Strong undersea quake occurs off island of Milos, felt in Athens
5. Greek quest for debt relief faces hurdles in Paris
6. Hardouvelis, ECB executive discuss bank program, stress tests
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.