Foreign and domestic energy groups are having second thoughts regarding investment plans for the construction of gas-fired power plants.
The economic uncertainty caused by the war in Ukraine, the apparent rise in lending rates, as well as government decisions to tax electricity generators and the “cap” on the wholesale electricity market are the reasons why investors are considering postponing plans for new CCGTs.
To invest, or not to invest
Indicative is that Hellenic Petroleum CEO Andreas Siamisis announced that in the coming weeks the shareholders (ELPE and Edison) will decide whether to proceed immediately with the construction of the 826 MW Elpedison CCGT plant in Thessaloniki or whether the plan will be postponed.
Shareholders’ concerns the regarding the funding and the possible effects that such investments may have on group profitability were scotched by the Deputy CEO of Motor Oi, during the last teleconference he had with analysts, concerning the funding for the construction with GEK TERNA of the new 877 MW power generation unit in Komotini, for which, as he noted, the two partners have allocated only 50 million euros each and the remaining funds will come from borrowing.
PPC has postponed the decision for its intention to convert “Ptolemaida V” in 2025 from lignite to a natural gas unit until after the summer, because of the need to ensure energy sufficiency by exploiting lignite deposits.
Damco Energy of the Kopelouzos group is also in the phase of making an investment decision regarding the 840 MW CCGT in Alexandroupolis.
The messages
Sources of a foreign investor involved in one of the above-mentioned investment plans, noted to OT, that “there are many negative factors that lead us to a more thorough evaluation of our plans for the new power plants. “The effects of the war in Ukraine on the economic environment are significant and unpredictable in terms of their development,” he said. “We are already seeing high inflation and its impact on borrowing costs, while at the same time the cost of raw materials and equipment is particularly high “.
On the negative side, he weighed the attitude of the Greek government: “We see a shift towards state-ism. We have the case of the taxation of the profits of the electricity companies but also the plans of imposing a ceiling on the revenues of the electricity generators. Such decisions are anything but encouraging for going ahead with investments”, the same sources, speaking to OT, concluded.
However, by the end of July, the groups that plan the aforementioned investments totaling about 1 billion, will have been decided upon.
στο Google News και μάθετε πρώτοι όλες τις ειδήσειςLatest News
New 11-Month High for Greece with 35M Tourist Arrivals in 2024
Inbound travelers to Greece boosted tourism-related revenues to 21.27 billion euros in the Jan.-Nov. 2024 period.
ECOFIN Approves Revisions to Greece’s Recovery Plan
Greek Finance Minister Kostis Hatzidakis said the decision will kickstart recovery fund absorption set to reach 64%.
Trends Shifting Among Foreigners Buying Holiday Houses in Greece
The primary reason for the shift in the trend is the saturation of popular destinations and the potential buyers’ desire for more privacy
Greek Public Debt at €370.865bln at End of Q3 2024: ELSTAT
It was slightly down from €371.483bln in Q3 2023, according to the quarterly non-financial accounts of the General Government
WEF Report Says 70% Greek Workers Need Retraining by 2030
The report, entitled “The Future of Jobs 2025”, says that a global shift in the workplace will result in the loss of 92 million jobs
National Bank of Greece Finances First Energy Storage Project in Country
The total financing for the project amounts to €41.9 million
Energy Giant Chevron Expresses Interest in Drilling in Greece
In line with this effort, the Hellenic Hydrocarbon Resources Management and Energy Resources Company (HEREMA) is submitting the Strategic Environmental Impact Study today
UBS ‘Bullish’ on Greek Banks
UBS highlights the positive trends in loans and savings and the financing cost, stressing corporate credit expansion acts as the driving force for the banking sector’s profit margins
Cost of Banking in Greece Drops from Monday
The measure aims to lower the cost of doing business and everyday transactions in Greece, with an estimated annual cost to banks of approximately €150 million.
Greek Tax Bureau Chief Details Efforts to Curb Evasion; Digitalize Administration
Independent revenue authority (AADE) Gov. George Pitsilis addresses OECD summit, cites reduction in lost VAT remittances from almost 30% in 2017 to 13.7% by 2022
