Investment “big bang” of 25 billion euros for energy transition

The wave of investments caused in the economy by large Greek groups for the country’s energy transition to climate neutrality is unprecedented.

Investments in RES projects either on land or at sea, gas-fired power plants to replace lignite power plants, energy storage systems and infrastructure for hydrogen production and transportation, as well as electricity transmission networks are the main categories of projects planned and being developed for the next decade.

Domestic groups and especially the rich wind and solar potential of the country also attract large foreign energy companies for investment. So far the entry and activation model is the establishment of consortia to develop joint projects.

The plans of TERNA Energy

TERNA Energeiaki, a member of GEK TERNA is the first large group that twenty years ago built on “green” energy.

It already has RES projects with a total capacity of 2 GW in operation or under construction (inside and outside Greek borders). and the immediate goal is 3 GW by 2025.

The listed company started the year running a 1.3 billion euro investment barrage in RES, storage, and environment, while it will gradually put into operation a 400 MW wind farm.

Apart from these projects, however, TERNA Energy is expected to start the construction of important and emblematic projects in “clean” energy and waste management.

Based on the annual report of the financial results published and the planning of the management, the listed company is starting:

1. The works for the completion of the PPP unit that concerns the waste management of the Peloponnese. This is an investment worth 123 million euros and will be put into commercial operation within the year

2. The construction of the complex of wind farms with a total capacity of 330 MW in Kafireas, Evia. The project is worth 569 million euros and when completed in 2022 it will be one of the largest, perhaps the largest in power generation, wind farm in the country,

3. The 30 MW wind power in the Terrace of Viotia is expected to enter into commercial operation within 2021.

4. The same is expected for the same year for the 67 MW wind farm in Evritania.

The total amount of the aforementioned projects amounts to 804 million euros, of which 674 million euros have secured funding, while TERNA Energy participates with own funds of the order of 157 million euros.

The pump storage and gas unit

GEK TERNA just last Friday announced the joint investment with Motor Oil for the construction of a modern gas-fired power station in Komotini.

Its capacity amounts to 877 MW and the amount of investment to 375 million euros.

In addition, TERNA Energy has taken the investment decision to start the emblematic project of pumped storage in Amfilochia. The project is worth 500 million euros and its management is expected to start work when the institutional framework prepared by the Ministry of Environment and Energy for energy storage projects is completed.

TERNA Energy also awaits the developments concerning the case of offshore floating wind farms in order to start the research work with its participation in the Ocean Winds consortium (Portuguese EDPR and French Engie). To be precise, they are waiting for the government decisions regarding the framework of investor activity.

The purpose of the three companies is the development of floating wind farms with a capacity of 1.5 GW in the Greek maritime area.

Investments over 1 billion from Mytilineos

In order to create one of the richest energy portfolios, Mytilineos is investing in energy transitions with over 1 billion euros.

The listed company is already building the first private power plant with natural gas fuel after PPC’s plans to close its lignite plants.

Mytilineos is in the final phase of construction of the new 826 MW power plant in Boeotia, one of the most modern plants in Europe with a thermal efficiency of 63%.

The amount of the investment amounts to 300 million euros and the CCGT is to be completed at the end of the year entering into trial operation in the first quarter of 2022.

The next big investment plan of Mytilineos that is going to begin being implemented in the third quarter of the year is the construction of solar parks for electricity generation.

As part of its strategic planning for a significant expansion of its presence in Renewable Energy Sources (RES) projects in Greece and worldwide, announced in February the agreement for the acquisition of a portfolio of 20 under development photovoltaic parks owned by EGNATIA GROUP with a total capacity of 1.48GW .

The entire portfolio has been subject to the process of Strategic Investments (Fast Track), while it is estimated that their construction will be completed by the end of 2023.

In addition, Mytilineos has acquired a total portfolio of 21 under development battery storage projects using electricity, as well as 4 additional under development projects of generation and storage of electricity using batteries, energy-assisted by photovoltaic stations, also by GRO EGNATIA.

The budget of the projects is estimated at close to 900 million euros.

The listed company is also expected to announce the name of a European group soon, with which they plan to enter the offshore wind farms of the Greek seas.

The “greening” of PPC

PPC aspires to win a leading role in the country’s energy transition.

Its investment plan for the next three years envisages projects worth 3.4 billion euros for RES projects but also for the upgrade and digitization of the electricity distribution network.

The company’s goals are to have commissioned RES systems with a total power of 1.5 GW by 2024. The construction of the large photovoltaic 230 MW park in Ptolemaida has already started and soon the first of the 50 MW in Megalopolis is expected.

The cooperation with the German group RWE is also in the arsenal of PPC. The two companies through a joint venture are expected to run RES investments worth 1 billion euros with a total capacity of 2 GW.

The management of the public company is also proceeding with the conversion by 2025 of Ptolemaida 5 from lignite to a natural gas unit with a total capacity of 1 GW. The cost amounts to 250 million euros.

The wager for ELPE

The Hellenic Petroleum Group has made a big bet in order to stay alive in the next ten and twenty years of “green” and sustainable development.

This concerns the reduction of gaseous pollutant emissions by 30% by 2030. The strategic plan of the energy transformation is called “Vision 2025” and includes, among other things, investments of 2 billion euros in RES projects with a total capacity of 2 GW until 2030.

EL.PE is also examining its activity in offshore wind, energy storage, and hydrogen.

The group is already building the large photovoltaic park of 204 MW in Kozani.

At the same time, Elpedison, in which ELPE participates, is about to decide on the investment for the construction of the new natural gas power plant in Thessaloniki. Its capacity is at 826 MW and the amount of the investment is close to 400 million euros.

The Ellactor – EDPR consortium

Ellactor enters the RES even more dynamically.

The construction group has announced since last year the cooperation with the Portuguese RES giant EDPR in the development of 900 MW projects with a total amount of 1 billion euros.

The two companies are already licensing part of the overall project in Evia. These are eight wind farms with a capacity of 470.4 MW with investment amounting to 489 million euros.

The Kopelouzos alliance at the FSRU Alexandroupolis

Among the emblematic projects of the energy transition is the floating LNG storage and regasification station off Alexandroupolis.

The project amounts to 400 million euros and is included in the projects of common interest of the EU. The company Gastrade, in which Gaslog, DESFA, DEPA, Bulgartransgaz and possibly a state-owned company of North Macedonia participate as shareholders, is close to making the investment decision for the start of the project. It aims to transfer natural gas to the national gas system but also to Balkan countries.

The Kopelouzos group is also running the investment plan for the construction of a 662 MW natural gas power plant in Alexandroupolis with a budget of 300 million euros.

In addition, in the field of RES, it plans to enter offshore wind farms with a production license.

The entry of Lightsource BP

The company Lightsource BP entered the Greek market very recently. It is the vehicle company of the multinational oil group that invests in RES.

The company secured 140MW in the recent Joint Competition Process, ie 40% of the total auctioned power, “locking” in an average price of 38.5 euros per MW. These projects are part of the 640MW of projects that Lightsource bp will acquire from Kiefer TEK, which makes it one of the largest managers and investors in solar energy in the country.

Lightsource BP starts with an investment of 160 million euros and aims at 500 million euros.

The “green” opening of Motor Oil

Motor Oil Group in 18 months has managed to build a pipeline of projects for the production of clean energy of 1 GW total power.

Its latest achievement is the acquisition of a portfolio for 132.5 million euros for the operation of eleven wind farms with a total capacity of 220 MW and an additional 20 MW wind farm under construction. These wind farms, most of which are located in Central and Northern Greece (Central Greece, Macedonia, Cephalonia) are the property of six companies under acquisition. The latter have, in addition to the twelve wind farms, a portfolio of permits for development with a total capacity of 650 MW.

It was preceded by acquisitions of portfolios and participations in companies with RES with a total capacity of 124 MW through companies of the Motor Oil group, during the period October 2019 – October 2020, .

The plans of the oil group for the energy transition do not stop here. They also include plans for hydrogen and energy storage.

The electrical interconnections of the islands

Among the big projects of the companies are also those of Independent Power Transmission Operator (IPTO) for the electrical interconnections of the islands with the mainland system.

The investment plan of the Administrator amounts to 5 billion. euro and concerns the development of submarine cables for the interconnections of the Aegean islands (Crete, Cyclades, Dodecanese, North Aegean Islands) with the National Electricity Transmission System.

The interconnections will create a vital space for the development of RES projects on the islands.

The White Dragon project

Ten companies operating in Greece have also announced their plan for hydrogen for their entrance into the energy system.

DEPA Commerce as project coordinator, in collaboration with Advent Technologies, Damco Energy (Kopelouzos Group), PPC, DESFA, HELLENIC PETROLEUM, Motor Oil, Corinth Pipeworks, TAP and TERNA ENER the Greek Government and the EU, have announced their investment proposal, totaling over 8 billion Euros, for the development of an innovative, integrated green hydrogen project in Greece, which covers the entire hydrogen value chain.