The European Investment Bank (EIB) has awarded a €100m loan with a sovereign guarantee to state-owned electric power company Public Power Corporation (PPC), out of a €255m facility to support the investment programme of PPC’s power distribution subsidiary Hellenic Distribution Network Operator (HEDNO). With the objective to reinforce and modernise the Greek electricity distribution network, the 20-year loan programme aims at installing more than 7,000 km of new medium and low voltage electricity distribution lines. Upgrading the power distribution network is expected to improve the rising integration of wind and solar power projects in Greece, in line with PPC's 2020-2024 business plan (December 2019) that includes phasing out 3.4 GW of lignite-fired capacity by the end of 2023 and increasing the renewable capacity by 1 GW by 2024.
Meanwhile, the Greek government plans to sell a 49% stake in HEDNO with increased minority rights in September 2020. With a network of 990 km of high voltage (HV) lines and 240,000 km of MV and LV lines, the company is 100% owned by PPC. The government intends to use the proceeds of the sale to strengthen the finances of PPC, which is burdened with €2.7 of unpaid bills.
In addition, Greece might sell in 2020 an additional stake in the transport grid operator ADMIE, which owns and operate more than 12,000 km of HV transmission line. In 2017, the State Grid Corporation of China (SGCC) purchased a 24% stake in ADMIE from PPC, while a further 25% stake in ADMIE has been sold to DES ADMIE S.A, a state-owned company set up for this purpose. The remaining 51% belongs to ADMIE holdings (51% PPC, 13% Silchester International Investors LLP).