Cero signs Greece’s first utility-scale corporate PPA for solar power

Cero Greece first utility corporate PPA solar

Photo: Andreas Gücklhorn on Unsplash


July 14, 2022






July 14, 2022





Macquarie’s subsidiary Cero Generation said it is targeting renewable energy projects in Greece of 1 GW by 2025, and only for corporate power purchase agreements. It signed the first bilateral PPA for solar power in the country with Axpo, for a 100 MW unit in Drama.

With sky-high power prices in the European market and relatively low subsidies that they can obtain at government-run auctions, some investors are switching to bilateral deals. Corporate power purchase agreements or PPAs enable producers to sell power to industrial consumers or traders in the medium to long term.

Cero Generation, founded by Australia-based private equity fund Macquarie’s Green Investment Group (GIG), presented its 100 MW solar power project in Greece, saying it signed the first corporate PPA for utility-scale photovoltaics in Greece. The client is Axpo Group, a Swiss renewable energy producer and trader.

The site for the Delfini unit is in Prosotsani in the Drama regional unit in Greece’s northeast.

Cero to sell electricity through bilateral PPAs for up to EUR 45 per MWh

Cero said it aims to complete renewable energy projects of an overall 1 GW by 2025 in Greece and sell output only through private deals. The renewable energy plants are planned to become ready for construction next year, it added.

The firm estimated the price of electricity for 10-year contracts at EUR 38 per MWh to EUR 45 per MWh, and projected their decrease to between EUR 28 per MWh to EUR 38 MWh after 2030. It added it already has a 4 GW pipeline in the country, revealing that 90% is for photovoltaics and the rest for wind power.

Macquarie’s Cero Generation said it already signed corporate power purchase agreements in Greece for 2 TWh for 2025 and 2026

The investor’s representatives said it would also add energy storage units. The event was attended by top government officials and representatives of the companies involved in the project.

Piraeus Bank financed the project. It said it is the first in Greece to be supported through the National Recovery and Resilience Plan 2.0 and sign a corporate PPA. Ameresco Energy Hellas, a subsidiary of United States–based Ameresco, is responsible for the construction of the solar park together with Sunel Group.

Furthermore, Cero said it already agreed corporate PPAs with Greek and foreign companies for 2 TWh in total for 2025 and 2026.

Delfini solar park project is valued at EUR 72 million

The Delfini solar power plant project, Macquarie’s first green investment in the country, is worth EUR 72 million. The Axpo deal is valid for ten years, Cero said.

The lifespan of the unit is projected at 35 years. The company estimated the annual output at 150 GWh, equivalent to the electricity demand of 15.000 domestic households.

Cero pointed out that it intends to expand to the rest of the Balkans. In Greece, it established a subsidiary called Corio to enter the country’s emerging offshore wind power market. Macquarie indicated that it is preparing investments of EUR 12 billion to EUR 15 billion in Greece including other infrastructure, telecommunications and e-mobility.

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