Italian utility Edison and Hellenic Petroleum, a major player in Greece's hydrocarbon industry, have agreed to form a strategic alliance targeting an installed generating capacity of up to 1500-2000 MW, including 100-400 MW of wind power and hydroelectricity in Greece. If all goes to plan, the two companies will set up a 50:50 joint-venture company this year, to which Hellenic Petroleum will transfer its subsidiary T-Power, which owns a 390 MW combined cycle gas plant in Thessalonica. Edison will contribute its 65% equity share of a 420 MW combined cycle facility plus a 600 MW coal fired plant, both under development in Greece, and will also pay Hellenic Petroleum EUR 55 million. With an eventual output of 1410 MW, the joint venture will account for 12% of the Greek market, making it the country's second largest electric power operator after the Public Power Corporation. Hellenic Petroleum is 35.5% owned by the Greek state and 35.9% by Greek-owned Paneuropean Oil & Industrial Holdings, with the remaining shares floating on the Athens stock exchange. Edison's owners are Transalpina di Energia (63.3%), French utility EDF (15.4%) and private investors. The company owns and operates 256 MW of wind power in Italy. Edison and Hellenic Petroleum already have experience of working together on the IGI natural gas pipeline currently under construction between Greece and Italy.
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