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Renewables PPC raises EUR 1.35 billion, plans RES expansion in Balkans and waste-to-energy projects

PPC is looking to accelerate its investments in renewable energy in the following years through a successful EUR 1.35 billion raise of capital. The group already targets project acquisitions in the Balkan region, especially in Romania and Bulgaria, while also planning investments in waste-to-energy solutions.

Greece’s Public Power Corp. (PPC) successfully concluded its share capital increase. It raised EUR 1.35 billion at EUR 9 per share, after setting the price range at EUR 8.5 to EUR 9 per share.

According to a PPC announcement, over EUR 4 billion offers were submitted as part of the process, while 87% of investors are from abroad and 13% from Greece.

Among the new names investing in PPC are the following: CVC, Oak Hill, EBRD, BlackRock, Fidelity, Wellington, Helikon, Covalis, GAMA, Discovery, Zimmer, Kayne Anderson, T. Rowe, Millennium Partners, Hengistbury Inv. Partners, Light Sky, JNE Partners, Ghisallo Capital, Fiera Capital, and Schronfeld Strategic Advisors.

Renewed effort to invest in renewable energy

PPC is the largest power producer and provider in Greece. Until recently, the government had a controlling share in the company, and now it is reduced to a so-called blocking majority.

The utility aims to become a major player in the renewable energy market. It signed a memorandum with German RWE to install photovoltaic plants with a combined capacity of 2 GW in Greece. Earlier this year, it sold two green bond packages to finance its energy transition. Among PPC’s projects are a 50 MW PV plant in Megalopolis and a 200 MW solar power plant in Kozani currently under construction.

As PPC Chairman and CEO George Stassis said after the capital raise, “this transaction is a milestone for PPC since it will allow the company to accelerate its transitional program and its investment program in renewables to increase the group’s EBITDA significantly.”

Bulgaria and Romania in focus for acquiring 700 MW of renewables

PPC’s boosted its investment plan to EUR 9.3 billion for the period from 2022 to 2026 with a focus on renewables, grids, waste management and an expansion into the Balkans. Specifically, 55% will be directed to renewable energy inside and outside Greece, 20% for power grids, 7% for conventional energy production, 4% for waste-to-energy systems, and 3% for the retail market.

Geographically, 85% of the investment program will take place in Greece and 15% (EUR 1.4 billion) abroad, with Romania and Bulgaria being the main targets. According to sources in the Greek market, the group aims to buy 700 MW of renewable projects in these countries and is examining more than 50 different projects.

PPC’s six-year investment program started this year with EUR 600 million. The company said it would set aside EUR 1.2 billion for 2022, EUR 2.3 billion for the following year, EUR 2.5 billion for 2024, and EUR 1.7 billion for both 2025 and 2026.

Waste-to-energy plans to go-ahead

PPC originally planned to enter the waste-to-energy sector in 2020, and now it can use the capital it raised to fuel this part of its investment program.

Specifically, PPC plans to utilize mature waste technologies already developed in northern European countries. Even though details are not yet available about the scope and the capital involved, it should be noted that the fuel used will be RDF or SRF produced from waste management. The Greek group aims to prepare in the near future detailed plans for the conversion of some of its older power-producing plants to this kind of modern production through waste.

The goal is to facilitate the country’s transition towards more sustainable waste management, which is important since Greece has been fined in the past because of its uncontrolled use of landfills.

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