RWE, PPC to build 210 MWp of solar plants in Greece

German energy group RWE AG (ETR:RWE) and PPC Renewables, part of Greek power utility PPC SA (ATH:PPC), are preparing to build five solar photovoltaic (PV) parks with a total capacity of about 210 MWp in northern Greece.

Meton Energy S.A, a joint venture between the two partners, is in charge of the five projects which will be located on the site of a former open-pit lignite mine in the Western Macedonia region.

RWE and PPC have already taken a final investment decision for the five solar schemes and construction work is planned to start in the spring. All five plants will be up and running by the end of the first quarter of 2024.

The power from the assets will be sold under five power purchase agreements (PPA) that have been signed with third parties for periods ranging from ten to 15 years.

The construction of the five plants will require a total of EUR 180 million (USD 195.8m) in investment and half of the amount was secured under the European Union – NextGenerationEU programme via the Recovery and Resilience Facility (RRF) plan. A further EUR 54 million will be provided by Eurobank S.A. and Alpha Bank S.A. in the form of commercial debt financing and EUR 36 million will be added as shareholders equity.

Commenting on the projects, Meton Energy's chief executive Costas Papamantellos said: “Within less than one year since founding our joint venture, we have now reached a significant milestone by taking the investment decision for our first photovoltaic plants.[...] We will continue to develop the rest of our joint solar pipeline at the same pace.”

The joint venture is working on the development of about 2,000 MWp of solar projects in Greece with nine of the schemes of a combined 940 MWp coming from PPC and the rest from RWE's Greek project pipeline.

Earlier in January, PPC Renewables unveiled a plan to build three solar parks totalling 230 MWp in Western Macedonia with financing from the European Investment Bank (EIB).

(EUR 1 = USD 1.088)

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