Friday September 19, 2014 Search
Weather | Athens
27o C
19o 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)  
Cyprus civil servants´ strike called off
Bank of Cyprus to sell UK loan portfolio
Elliniko investors eye Cyprus project warily
Auctions lead to surprise stock growth
Minister calls on Tsipras to clarify position on public sector checks
Administrative Reform Minister Kyriakos Mitsotakis called on SYRIZA leader Alexis Tsipras to publicly state his position on the government’s efforts to review public sector contracts and roo...
SYRIZA demands ND reaction to new claims of Baltakos contact with Golden Dawn
SYRIZA has called on New Democracy to respond to a newspaper report that claimed the former cabinet secretary Panayiotis Baltakos advised Golden Dawn MPs on how they should vote. Leftist MP ...
Inside News
SOCCER
Triumph for PAOK, historic result for Asteras in Europa League
Greek teams produced a patchy record on the opening night of the Europa League group stage on Thursday, as PAOK thrashed Dynamo Minsk, Asteras Tripolis snatched a draw at Besiktas and Panath...
SOCCER
Financial crisis forces Greek second division postponement
Greece's second soccer division Football League announced on Wednesday the postponement of the start of the season due to financial difficulties being faced by most clubs. "The board of dire...
Inside Sports
COMMENTARY
High stakes after the Scottish vote
We will soon know whether the Scots voted for their country’s independence or whether they will remain citizens of the “United Kingdom of Great Britain and Northern Ireland.” What was alread...
EDITORIAL
Breathing room
Even Greece’s biggest critics find it hard to deny that the debt-hit country has achieved an unprecedented fiscal turnaround within a very short period of time. Sure, progress in promoting t...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Cyprus civil servants´ strike called off
2. Bank of Cyprus to sell UK loan portfolio
3. Elliniko investors eye Cyprus project warily
4. Auctions lead to surprise stock growth
5. Minister calls on Tsipras to clarify position on public sector checks
6. SYRIZA demands ND reaction to new claims of Baltakos contact with Golden Dawn
more news
Today
This Week
1. Dozens of arrests at march to mark anniversary of Fyssas murder
2. EIB signs deals with Greece for 815-mln investment in infrastructure projects
3. ECB eyes banks’ capital quality as target for supervisory power
4. Syntagma metro station to close for Fyssas tribute concert
5. Samaras heads to Azerbaijan for two-day visit
6. Homeless man falls to death from shelter in central Athens
Today
This Week
1. Greece on standby
2. Greece at bottom of social justice scale among EU28
3. Central Athens traffic restrictions back in force on Monday
4. Lost in the fog
5. Democracy under Pressure | Live Streaming
6. SYRIZA spokesman suggests gov't sought to stop NERIT airing Tsipras speech live
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.