Greek PPC: Acquisition of a majority stake in “Alexandroupolis Power Generation”

Confirming a relevant OT publication, PPC S.A., DEPA Commercial and Damco Energy of the Kopelouzos Group signed an agreement for PPC’s acquisition of 51% of the shares of the company with the name “Alexandroupolis Power Generation Sole Proprietorship S.A.” and the acquisition by DEPA Commercial of 29% of the same company. Damco Energy of the Kopelouzos Group retains 20% and will participate in the new structure.

The company in question is planning the construction and operation of a new electricity production unit fueled by natural gas, in Alexandroupolis. Construction of the new plant will begin in the first quarter of 2023 and is expected to be ready by the end of 2025.

The benefits of the construction of the new Power Plant:

• The unit will have a nominal capacity of 840MW and is expected to be the most efficient unit in the country, with an efficiency factor of 63%. It is expected to have the lowest variable costs among thermal units, which will enable it to enter the wholesale market first with a high utilization factor,
• The Power Generation Unit and the 400 kV Substation are being developed on a total area of 181,181 m2, in the Industrial Area of Alexandroupolis, at the hub of natural gas sources and routes. The unit will be able to supply natural gas directly from GasTrade’s Alexandroupolis FSRU, achieving large savings, without supply risk,
• The unit will be connected to the Nea Santa High Voltage substation, ideally placed for electricity exports to neighboring countries, which are not expected to operate new natural gas plants to cover their needs in the coming years.

The agreement was signed yesterday, Wednesday, December 21, by the President and CEO of PPC, Mr. Georgios Stassis, the President and CEO of DEPA, Mr. Ioannis Papadopoulos and Konstantinos Xifaras and the Managing Director of the Kopelouzos Group, Mr. Christos Kopelouzos. The signing took place at the Ministry of Foreign Affairs in the presence of the Minister of Environment and Energy, Mr. Kostas Skrekas.

The Minister of Environment and Energy, Mr. Kostas Skrekas, after the signing of the agreement, noted that the deal was another strong link in the chain of efforts to shield Greece’s energy sufficiency. The new power generation unit in Alexandroupolis is located at a key point for the security of supply in Greece and the wider region, directly connected to the FSRU of Alexandroupolis, and a breath away from the Greek-Bulgarian IGB pipeline while at the same time it will be able to export electricity to all neighboring countries

Referring to the importance of the agreement, the President and CEO of PPC Mr. Georgios Stassis noted that clean energy is at the heart of the PPC’s strategic planning. This includes renewable energy sources, storage methods and “green” hydrogen, which in PPC’s opinion will form the backbone of the Electricity system in the coming years, while natural gas still has a key role to play. New natural gas plants must be flexible and as efficient as possible and ultimately have the potential to be part of a zero-emissions system and must be able to use other fuels, such as hydrogen for example. Any investment in combined cycle gas turbines, the so-called CCGTs, will not only not deviate from the strategic objectives of the European Green Deal but will instead serve an even smoother transition to it.