Green energy investment
The Public Power Corporation will commit 1 billion euros in the next eight years to alternative energy sources. Its aim is to more than double its share in renewable energy sources (RES) from 10 percent today to 23 percent in 2014. PPC will cooperate in this ambitious plan with the sector’s big players. The main part, however, will be played by its subsidiary, named PPC Renewable Energy Sources, which is being restructured to become more flexible with the aim to be listed in the stock market in the future. In the last 25 years PPC has effectively abstained from the RES market, despite being the first company to get involved. All this time it has only operated 74 megawatts (from wind parks and small hydroelectric units) against 747MW of total production from RES. The new administration of the corporation is for the first time looking at the sector with a strategic intention, assessing the market’s momentum and PPC’s advantages. This will also be the first market where PPC will expand jointly with private partners who have considerable shares and expansive investment plans, and with major European companies that have included the Greek RES market in their strategy. Such partnerships of the country’s main power supplier with strong domestic and foreign investors are expected to provide the boost required for the RES market. The PPC management has not decided yet on how it will cooperate with private partners as it is studying various ideas, such as the entry of a strategic investor in the PPC subsidiary or the setup of appropriate consortia with different investors. According to sources, the big local players of the market (Rokas, TERNA, Kopelouzos) and some foreign ones such as Electricite de France and Edesa from Spain are expecting the PPC board’s decision for joint investments to proceed. Discussions have been completed with all of the above groups; well-informed sources suggest the private sector’s interest for partnerships has been decisive in PPC going ahead with the expansion in RES. The project relies on a study conducted by PPC internally, taking into account the target for RES-produced energy in 2010 to cover 20 percent of demand. There are two alternative scenarios: The first comes from the Development Ministry and provides for 3,000MW by the end of 2010. The second comes from the Southeastern Europe Energy Institute (IENE) and plans for a minimum of 2,000MW and a maximum of 3,750MW in the same period. With both these scenarios as well as the strategic plans of major groups in the local market and the permits for installing 420MW secured, PPC has drafted a plan for additional production of 1,600MW from RES by 2014. This is a PPC investment of about 1 billion euros co-funded up to 30 percent by the Competitiveness Program. When the investments are completed PPC will have secured a market share of 23 percent, the study suggests, rendering it a key RES player. Competent PPC officials appear optimistic about the plan’s course, noting that «it relies on the most conservative models of market growth, foreseeing power levels of 2-3,000MW by 2010.» Asked why major market players choose PPC as an ally, its officials note the reduction of both sides’ risks and the partnerships created. The big risk for private parties to date concerns the local communities and the carriage network for RES-produced energy. PPC can add its prestige and overcome such problems. The corporation even intends to offer shares to local authorities, while the joint construction of the carriage network reduces the financial risk for PPC and its private partners. Such investments will also unblock those in the production domain, observers suggest, noting the partnerships that will emerge. The «green energy» plan will also reduce the cost burdening the PPC for buying pollution rights on a yearly basis. Most investments concern wind parks, yet some innovative applications are also planned, e.g. the use of inactive lignite mines by installing photovoltaic systems.
