
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.


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