Greek state-owned power utility Public Power Corporation (PPC) is going ahead with its effort to sell three coal-fired power plants corresponding to 40% of its lignite-fired capacity along with a license for the construction of a fourth one. However, the lack of interests from investors threatens the process and PPC estimates that only a further deadline extension could save or delay the sale effort from a failure. Along with the Greek government, it will work in parallel on alternatives such as new sale-term improvements.
The deadline has been repeatedly pushed back since the tender was launched in 2018. In July 2018, PPC shortlisted only six companies, namely: GEK-Terna, Mytilineos, Elvalhalkor, a joint venture (JV) of Beijing Guohua power Company with Damco, and two Czech companies, namely Energeticky Prumyslovy Holdings (EPH) and Indoverse Coal Investments. The units represent a major profit challenge as their revenue and costs figures have been fluctuating significantly.
The divestment of these coal power plants is part of Greece’s international bailout agreement, after an European Union Court ruled that PPC had abused its dominant position in the domestic coal market.