ECONOMY

PPC eager to move into new energy forms

The Public Power Corporation (PPC) is launching a drive to promote renewable energy sources (RES) with a view to becoming a major player in Southeastern Europe. A longer-term objective is the listing of its RES subsidiary (PPCRS) on the Athens bourse. The drive is based on the reorganization of PPCRS to facilitate partnerships in the implementation of an ambitious investment program, envisaging the creation of 1,540 megawatts capacity by 2014. This program has been incorporated into PPC’s business plan and is based on a comprehensive study on the potential of RES utilization, in the framework of the country’s commitments in the Kyoto protocol. Besides the reorganization, PPCRS will also begin contacts with Greek and foreign companies active in the sector that have already expressed interest in cooperating, both in Greece and the broader region of Southeastern Europe. One of the main scenarios in the PPC study for developing the RES domain envisages partnerships with a view to jointly constructing 50 percent of the 1,540 MW capacity. Foreign companies that have already submitted attractive cooperation proposals in writing include Spain’s CESA, France’s EDF, Germany’s City Solar, Swiss company AET, Italy’s ENEL and US-based Contour Global and Ormant International. Domestic suitors include construction companies Hellenic Technodomiki and Terna and Trinity Aioliki, while Spain’s Iberdrola has also expressed interest through Greek company Rokas in which it holds a 49.9 percent stake. According to sources, Iberdrola’s proposal includes schemes outside Greece. EDF Energies Nouvelles, with one of the most ambitious plans, has proposed the joint construction and operation of wind parks, hydroelectric projects, photovoltaic systems and biomass plant totaling 300 MW in capacity. It is said to be targeting 1,000 MW by 2010. CESA has submitted a plan for the joint construction and operation of 500 MW wind parks. ENEL has in mind a partnership for geothermal energy on the island of Milos. Hellenic Technodomiki wants a partnership with PPCRS for 600 MW-capacity wind parks, City Solar is aiming at 60 MW-capacity photovoltaic systems, and Ormat wants to develop geothermal facilities totaling 112 MW on Milos, Nisyros and Mytilene. For its part, PPCRS seems to favor consortia in which to hold 49 percent stakes. This model is thought to give faster growth as it can include projects already in progress or licensed. By attaining the 1,540 MW-capacity target by 2014, the 1.6-billion-euro investment program would give PPC a market share of 22 percent in RES power production, against 8.1 percent today.