Optimism for power grid privatization


The government and Public Power Corporation have high hopes for the revenues from the sale of a 49% stake in the Hellenic Electricity Distribution Network Operator (DEDDIE), launched by PPC in a tender last Tuesday.

This optimism stems from an exceptionally favorable international environment, where interest in investment in energy infrastructures keeps growing and the funds available for the investing in the grid management sector correspond to about 500 billion euros.

The timing is also seen as particularly favorable as there are no similar deals on offer anywhere else in Europe, while interest in the Greek power grid is also bolstered by the improved regulatory framework and the weighted average cost of capital (WACC), set for the next four years at 6.7%.

The market’s momentum has already been reflected on the market test carried out by PPC’s privatization consultants. They approached 70 potential investors, 19 of which had a positive response, arranging for meetings to obtain further information.

PPC sources say those parties include prestigious international financial groups, and major international electricity companies and grid operators.