ECONOMY

PPC board to meet on RWE and Halyvourgiki proposals

Electricity utility Public Power Corporation (PPC) will discuss a cooperation deal with Germany’s RWE AG at a board meeting next week, but hasn’t yet decided on a proposal by Spanish Endesa’s Greek unit, a PPC official said yesterday. PPC has been seeking partners to help it expand its operations in Greece and the Balkans to offset a drop in market share and profit since the country liberalized its energy market last year under EU guidelines. «RWE’s MoU [memorandum of understanding]… will be discussed at a board meeting scheduled for January 29,» said a senior PPC official who declined to be named. «As far as Endesa Hellas is concerned, a letter has been advanced by them and is being investigated.» Greek media have reported that Endesa Hellas, a joint venture between Endesa and Greece’s Mytilineos, has proposed a deal with PPC to build a liquefied natural gas station, develop a new coal plant and modernize outdated plants. «As far as Endesa Hellas is concerned, it has sent a letter outlining a cooperation proposal which is being examined by management,» the PPC official said, declining to offer further details. PPC last month said it was undertaking confidential talks on a cooperation memorandum with RWE, focusing on the possible construction of coal-powered electricity plants with total capacity of 1,600 megawatts. Talks would also touch on the purchase of two secondhand wind turbines to meet peak summer demand for the 2008-2010 period, and possible cooperation in the natural gas and the renewable energy sectors. The board will also discuss a MoU with Greek steel producer Halyvourgiki for the joint operation of an 880 MW natural gas-fired plant, a deal analysts say will help boost PPC’s capacity. Last year Mytilineos signed a joint venture deal with Endesa as part of plans to boost its energy business in the region. (Reuters)