Italy’s Edison and Hellenic Petroleum are to give Greece’s installed generating capacity a major boost through a new joint venture.
The two companies have signed an agreement to develop at least 1500 MW of generating capacity in the country – equivalent to 12 per cent of current installed capacity – and to pursue investments in renewable energy in the country.
“With this transaction, Edison broadens the scope of its electric power operations to include Greece, a market that has been growing at a faster rate than the average for the European Union,” said Umberto Quadrino, Edison’s Chief Executive Officer. “The cooperation with Hellenic Petroleum … will enable us to combine our forces to create the second largest operator in Greece and strengthen our position in the country.”
The joint venture forms a major part of Edison’s 2008-2013 growth plan, which calls for investments of EUR6.2 billion and for the expansion of the company’s international business. It says that the agreement could result in the addition of up to 2000 MW of new capacity in Greece.
The 50-50 joint venture will be seeded with T-Power SA, a subsidiary of Hellenic Petroleum that owns a 390 MW gas fired combined cycle power plant in Thessaloniki. Meanwhile Edison will contribute its 65 per cent equity interest in Thisvi SA, which is building a 420 MW combined cycle facility in central Greece.
T-Power SA and Thisvi SA will later be merged into a single company controlled by the joint venture, which will also investigate opportunities in power generation and trading in the Balkans.
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