PPC Renewables to partner with ELECTOR on up to four geothermal projects in Greece

PPC Renewables to partner with ELECTOR on up to four geothermal projects in Greece Mytilene, Lesvos Island, Greece (source: flickr/ Anna Apostolidou, creative commons)
Alexander Richter 26 Jun 2020

Greek PPC Renewables has elected ELECTOR as a strategic partner for the exploitation of four geothermal fields on Lesvos, Milos-Kimolos-Polyaigos, Nisyros and Methana in Greece.

PPC Renewables, the renewable energy focused subsidiary of state energy company PPC, is now entering the decisive stage for the utilization of the geothermal potential that has been granted to it by the Greek state.

According to energypress, the company decided yesterday to officially complete the international tender for the selection of a strategic partner for the energy utilization of the four geothermal fields of high enthalpy, a competition that took place but was “frozen” two years ago.

The completion was made by awarding the “highest bidder”, the company ELECTOR of the ELLAKTOR group, the position of strategic partner. The second consortium that had submitted a binding tender to the tender, TERNA Energy, had been declared an “alternative bidder”.

The object of the cooperation is the energy utilization of the well-known four geothermal fields (Lesvos, Milos-Kimolos-Polyaigos, Nisyros and Methana) for which PPC is licensed (the lease period was recently extended by the leases exclusively for the Greek state management in specific areas).

PPC Renewables has set up a special purpose public limited company (with the distinctive title “Geothermal Target Two – Single Person SA”), with the approval of a recommendation to be provided by RIS about three months ago. In the share capital of the special purpose company, the strategic partner will “enter” with a majority percentage.

The special purpose company will undertake the financing, construction, but also the management of power plants, 8 MW in Lesvos and 5 MW in each of the other three areas, which will be supplied with geothermal fluid from the drillings. Lesvos is an island just off the coast of Turkey between Canakkale and Izmir.

The goal is to start the first exploratory drilling in the geothermal field of Milos by the end of the year, provided that the local community is informed and informed in a timely manner. According to the schedule, the power plant will be built and operational by 2025.

It should be noted that PPC Renewables does not assign to its subsidiary a special purpose, but retains under its ownership the contracts of exploitation. This is, after all, the one that will carry out the drilling and all the necessary work to ensure the supply of geothermal fluid to the power plants.

The liquid will be sold to the unit manager at a price that will be determined at a later stage.

For the remaining three geothermal fields (Lesvos, Nisyros and Methana) the development will take place in the second year and in consultation with the local communities.