Greek Industry: Turn to PPAs for cheap RES electricity

More and more companies in the Greek market are looking for the solution of the cheapest electricity produced by Renewable Energy Sources, ensuring competitive prices for a long time.

The energy crisis that has been going on since last summer, as well as the further surge in energy costs triggered by the war in Ukraine, is pushing energy-intensive industries as well as large trade chains to seek bilateral long-term “green” power purchase agreements (PPA) with RES producers.

According to domestic electricity market participants, “the contribution of RES to both the retention of wholesale electricity prices and the energy independence of consumers is now recognized by industries and other businesses. They are looking for PPAs following the path that big companies have taken in foreign markets for years “. Such cases are Amazon which has concluded PPAs with a total capacity of 13.9 GW, Microsoft with 8.9 GW, Meta Platforms (Facebook) with 8 GW and so on.

RES in Greece and other countries due to the operation of the wholesale electricity market (the price is determined by the most expensive power plants) make extraordinary profits.

These profits enable, among other things, the subsidy of electricity bills.

Also these benefits RES producers choose to pass them on to consumption with PPAs contracts. They provide their customers with low electricity prices for 15 or even 20 years.

TERNA ENERGY – HERON

Such an example in Greece is the companies TERNA ENERGY and HERON. The member companies of the GEK TERNA group have developed synergies with each other and utilizing the wind farms of TERNA ENERGY have proceeded since last Autumn to the opening of the market of PPAs in Greece as well. The customers of the company IRON have the possibility of concluding long-term bilateral contracts with wind farms of TERNA ENERGY.

HERON has already entered into PPAs with 14 major consumers, including industries and retail chains. The total power agreed on with the specific companies amounts to 30 MW (Megawatts) or 44,000 MWh (Megawatt Hours). In fact, in a market where fixed prices are no longer available, the supply of electricity at a long-term fixed price via PPA, a fraction of current cost levels, creates a competitive advantage for large energy consumers, supporting the energy-intensive domestic industry.

HERON is ready to proceed with the conclusion of other PPAs, thus passing on the benefits of the “green” energy of TERNA ENERGIAKI wind farms to other industries and companies.